And beware of Jeb Bush, former Florida governor and one of the biggest backers of charter schools and privatization of schools
Dangerous Court Rulling Is Latest Attempt to Blame Teachers and Weaken Public Education June 11, 2014Posted by rogerhollander in California, Education, Los Angeles.
Tags: diane ravitch, educatiion, job tenure, mandatory testing, no child left behind, privatization, public education, rolf m. treu, teacher tenure, vergara lawsuit
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Roger’s note: I read about this decision as reported in the New York Times. Although it did contain quotes from the teachers’ unions, one came away with the impression that the issue is one of student rights, that is, the right to good teachers, thereby ignoring all the socio-economic reasons for poor educational results. The judge shamelessly compared his decision to the civil rights iconic decision in Brown v. the Board of Education of Topeka, Kansas, which overturned public school segregation legality. Of course, the decision was heartily endorsed by Arne Duncan, Obama’s Chicago basketball buddy and Secretary of Education, who never met a privatization he didn’t like.
It is a sign of our times that civil rights logic is invoked to justify the destructive corporatization and privatization of public education, the thrust of which is being funded, tea party-like, by those very same corporate private billionaires.
Published on Wednesday, June 11, 2014 by DianeRavitch.net
Judge Rolf M. Treu, who decided the Vergara case, declared that he was shocked — shocked! — to learn from Professor Raj Chetty and Professor Thomas Kane of Harvard about the enormous harm that one “grossly ineffective” teacher can do to a child’s lifetime earnings or to their academic gains.
How did he define “grossly ineffective” teacher? He didn’t. How did these dreadful teachers get tenure? Clearly, some grossly incompetent principal must have granted it to them. What was the basis — factual or theoretical — that the students would have had high scores if their teachers did not have the right to due process? He didn’t say.
The theory behind the case — as I see it — is that low test scores are caused by bad teachers. Get rid of the bad teachers, replace them with average teachers, and all students will get high test scores. You might call it the judicial version of No Child Left Behind — that is, pull the right policy levers — say, testing and accountability, or eliminate tenure — and every single child in America will be proficient by 2014. Congress should hang its collective head in shame for having passed that ridiculous law, yet it still sits on the books as the scorned, ineffective, toxic law of the land.
Judge Treu was also regurgitating the unproven claims behind Race to the Top, specifically that using test scores to evaluate teachers will make it possible to weed out “bad teachers,” recruit and reward top teachers, and test scores will rise to the top. Given this theory, a concept like tenure (due process) slows down the effort to fire those “grossly ineffective” teachers and delays the day when every student is proficient.
Relying on Chetty and Kane, Judge Treu is quite certain that the theory of universal proficiency is correct. Thus, in his thinking, it becomes a matter of urgency — a civil rights issue — to eliminate tenure and any other legal protection for teachers, leaving principals free to fire them promptly, without delay or hindrance.
Set aside for the moment that this decision lacks any evidentiary basis. Another judge might have heard the same parade of witnesses and reached a different conclusion.
Bear in mind that the case will be appealed to a higher court, and will continue to be appealed until there is no higher court.
It is not unreasonable to believe that the California Teachers Association might negotiate a different tenure process with the legislature, perhaps a requirement of three years probationary status instead of two.
The one thing that does seem certain is that, contrary to the victory claims of hedge fund managers and right-wing editorial writers, no student will gain anything as a result of this decision. Millions more dollars will be spent to litigate the issues in California and elsewhere, but what will students gain? Nothing. The poorest, neediest students will still be in schools that lack the resources to meet their needs. They will still be in schools where classes are too large. They will still be in buildings that need repairs. They will still be in schools where the arts program and nurses and counselors were eliminated by budget cuts.
If their principals fire all or most or some of their teachers, who will take their places? There is no long line of superb teachers waiting for a chance to teach in inner-city schools. Chetty and Kane blithely assume that those who are fired will be replaced by better teachers. How do they know that?
Let’s be clear. No “grossly ineffective” teacher should ever get tenure. Only a “grossly ineffective” principal would give tenure to a “grossly ineffective” teacher. Teachers do not give tenure to themselves.
Unfortunately, the Vergara decision is the latest example of the blame-shifting strategy of the privatization movement. Instead of acknowledging that test scores are highly correlated with family income, they prefer to blame teachers and the very idea of public education. If they were truly interested in supporting the needs of the children, the backers of this case would be advocating for smaller classes, for arts programs, for well-equipped and up-to-date schools, for after-school programs, for health clinics, for librarians and counselors, and for inducements to attract and retain a stable corps of experienced teachers in the schools attended by Beatriz Vergara and her co-plaintiffs.
Let us hope that a wiser judicial panel speedily overturns this bad decision and seeks a path of school reform that actually helps the plaintiffs without inflicting harm on their teachers.
© 2014 Diane Ravitch
India, Religion, Right Wing.
Tags: anti-muslim, Bharatiya Janata, bjp, hindu nationalism, India, india election, jon queally, narendra modi, neoliberal, privatization, racism, right wing, roger hollander
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Tags: anti-muslim, Bharatiya Janata, bjp, hindu nationalism, India, india election, jon queally, narendra modi, neoliberal, privatization, racism, right wing, roger hollander
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Roger’s note: I had no sooner posted an article about neo-Nazism in Europe, where I commented that the phenomenon is world wide, than I came across this analysis of the results of the Indian election. Apart from virulent and racist Hinduism represented by the BJP, there is the lesson of what elections really stand for in capitalist democracy. Indian voters had the choice between the endemically corrupt Nehru/Ghandi Congress Party dynasty versus the racist BJP, both parties sold out to the corporate elite. Makes one think about Democrats and Republicans, doesn’t it?
Published on Friday, May 16, 2014 by Common Dreams
Critics say victory of Hindu nationalist party and asendancy of Narendra Modi put nation on perilous course
In national elections in India, the rightwing Hindu nationalist party, called the Bharatiya Janata Party (or BJP), has won a landslide victory for the country’s parliament and their leader, businessman Narendra Modi from Gujurat, is now set to become the nation’s next Prime Minister.
According to Reuters:
With more than six times the seats of its closest rival, Modi’s is the most decisive mandate for any leader since the 1984 assassination of prime minister Indira Gandhi propelled her son to office. Since 1989, India has been governed by coalitions.
The BJP was winning in 278 seats of the 543-seat parliament, counting trends showed. An alliance led by the party was ahead in 337 seats, TV channel NDTV said.
Though many are framing the BJP’s victory as the result of widespread disgust with the current government, led by the Congress Party, and a win for those calling for an end to systematic corruption in the world’s most populous democratic state—critics of the neoliberal BJP say its ascendency puts India on a perilous path.
For progressive-minded Indians, says Vijay Prashad, a historian and professor at American University of Beirut, the BJP victory “is the worst of all worlds.”
In statements ahead of the elections, activist and author Arundhati Roy said that India’s election were not about serving the interests of the nation’s poor and disenfranchised, but about “which corporation would come to power.”
Referring directly to the now victorious Modi, Roy stated, “This time, [the elections were] corporate war and he is a corporate candidate.” She indicated that all the major parties continue to ignore the pervasive poverty, including mass malnutrition which plague vast sections of the country. Despite India having the third-fastest growing economy in the world, Roy said, its democracy is being steadily destroyed by “unequally distributed wealth” and a political elite that pays only lip service to the nation’s farmers, marginalized youth, and underclass.
To de-mystify Modi’s victory and put his party in context, Prashad explains:
“BJP never ran against the roots of inequality or deprivation, but only what it deemed to be its symptom – corruption. This was a clever strategy. It both rode the anti-Congress wave, which had been produced by anger at the inequalities in the country, and it mollified the corporate community, which would not have been interested in any criticism of the policies of neoliberalism.”The BJP’s record in governance is not any different from that of the Congress – with inequality and corruption being the order of the day in its bastion of Gujarat, for instance. To take one indicator as illustrative, in Gujarat the mal-nutrition rate is so low that it is worse than the average level of malnutrition in sub-Saharan Africa (where the rates of mal-nutrition remain very disturbing). Gujarat’s ‘development model’ also favored the privileged businessmen of the ruling party, the BJP, and its chief minister, Narendra Modi. Family firms such as the Adani group earned substantial gifts from the BJP government, which enhanced their profits, and helped Gujarat increase its own profile as “open for business.”
Modi was able to dodge questions of the “Gujarat Model.” He was quickly anointed by the BJP as its Prime Ministerial candidate and hastily favored by the media with far more coverage than any other politician. Modi ran as the development candidate with a carefully calibrated argument – he suggested that it was not neo-liberalism that created inequality, but its symptom, namely corruption, which the BJP tied to the mast of the Congress. In other words, the BJP never ran against the roots of inequality or deprivation, but only what it deemed to be its symptom – corruption. This was a clever strategy. It both rode the anti-Congress wave, which had been produced by anger at the inequalities in the country, and it mollified the corporate community, which would not have been interested in any criticism of the policies of neoliberalism.
Writing in the Guardian on Friday, Indian author and writer Pankaj Mishra argues that with Modi at the helm, India is facing “its most sinister period since independence.” Providing context for both Modi’s rise within the BJP and the rightwing fanaticism of the party now set to control India, Mishra writes:
Modi is a lifelong member of the Rashtriya Swayamsevak Sangh (RSS), a paramilitary Hindu nationalist organisation inspired by the fascist movements of Europe, whose founder’s belief that Nazi Germany had manifested “race pride at its highest” by purging the Jews is by no means unexceptional among the votaries of Hindutva, or “Hinduness”. In 1948, a former member of the RSS murdered Gandhi for being too soft on Muslims. The outfit, traditionally dominated by upper-caste Hindus, has led many vicious assaults on minorities. A notorious executioner of dozens of Muslims in Gujarat in 2002 crowed that he had slashed open with his sword the womb of a heavily pregnant woman and extracted her foetus. Modi himself described the relief camps housing tens of thousands of displaced Muslims as “child-breeding centres”.
“Modi is never less convincing than when he presents himself as a humble tea-vendor, the son-of-the-soil challenger to the Congress’s haughty dynasts. His record as chief minister is predominantly distinguished by the transfer – through privatisation or outright gifts – of national resources to the country’s biggest corporations. His closest allies – India’s biggest businessmen – have accordingly enlisted their mainstream media outlets into the cult of Modi as decisive administrator; dissenting journalists have been removed or silenced.”.
Such rhetoric has helped Modi sweep one election after another in Gujarat. A senior American diplomat described him, in cables disclosed by WikiLeaks, as an “insular, distrustful person” who “reigns by fear and intimidation”; his neo-Hindu devotees on Facebook and Twitter continue to render the air mephitic with hate and malice, populating the paranoid world of both have-nots and haves with fresh enemies – “terrorists”, “jihadis”, “Pakistani agents”, “pseudo-secularists”, “sickulars”, “socialists” and “commies”. Modi’s own electoral strategy as prime ministerial candidate, however, has been more polished, despite his appeals, both dog-whistled and overt, to Hindu solidarity against menacing aliens and outsiders, such as the Italian-born leader of the Congress party, Sonia Gandhi, Bangladeshi “infiltrators” and those who eat the holy cow.
Modi exhorts his largely young supporters – more than two-thirds of India’s population is under the age of 35 – to join a revolution that will destroy the corrupt old political order and uproot its moral and ideological foundations while buttressing the essential framework, the market economy, of a glorious New India. In an apparently ungovernable country, where many revere the author of Mein Kampf for his tremendous will to power and organisation, he has shrewdly deployed the idioms of management, national security and civilisational glory.
Boasting of his 56-inch chest, Modi has replaced Mahatma Gandhi, the icon of non-violence, with Vivekananda, the 19th-century Hindu revivalist who was obsessed with making Indians a “manly” nation. Vivekananda’s garlanded statue or portrait is as ubiquitous in Modi’s public appearances as his dandyish pastel waistcoats. But Modi is never less convincing than when he presents himself as a humble tea-vendor, the son-of-the-soil challenger to the Congress’s haughty dynasts. His record as chief minister is predominantly distinguished by the transfer – through privatisation or outright gifts – of national resources to the country’s biggest corporations. His closest allies – India’s biggest businessmen – have accordingly enlisted their mainstream media outlets into the cult of Modi as decisive administrator; dissenting journalists have been removed or silenced.
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Tags: charter schools, chris christie, jacob chamberlain, newark, newark students, privatization, public education, public schools, roger hollander, student activism
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Tags: charter schools, chris christie, jacob chamberlain, newark, newark students, privatization, public education, public schools, roger hollander, student activism
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Roger’s note: The Tea Party agenda to destroy (privatize) public education is alive and well in the hands of Arne Duncan, Obama’s Chicago basketball buddy and Secretary of Education, Arne Duncan (and various state governors and legislatures), via the strategy of charter schools, standardized testing, attacks on teachers and their unions and education for profit. The reason for this, apart from the base economic motive, has to do with undoing the leveling and democratizing function of public education. In its all-out war of the wealthy (the owners of managers of capital) against the rest of us, destroying what is left (after defunding and segregation) of public education will have tremendous negative impact on racial minorities, the poor and lower middle class. At the university level, we are already seeing more and more that only the children of the upper economic brackets are able to afford a college education. A strong public education system and democracy are inseparable entities. It is heartening to see, not only in Newark, but around the nation, students, their families and their teachers are fighting to reject the Tea Party/Koch Brother/Obama attacks on public education.
Published on Friday, April 4, 2014 by Common Dreams
Hundreds of students walk out in march demanding public schools over charters
Following moves by the state of New Jersey to defund public schools in exchange for a flood of privately run charter schools, hundreds of students in Newark walked out of classes in protest on Thursday.
According to the Newark’s Star Ledger, almost 1,000 students from about nine schools gathered in front of City Hall around 1 p.m. with microphones and signs.
The protest was organized by the Newark Students Union, calling the protest the “March of Shame,” specifically targeting Superintendent Cami Anderson’s “One Newark” reorganization plan. The plan is set to close or downsize several public schools, fire a range of teachers, and move privately run charter schools into public buildings.
“Holding bullhorns and signs – some with the word ‘liar’ in bold letters above the silhouettes of New Jersey Gov. Chris Christie and state-appointed Newark Superintendent Cami Anderson – hundreds of middle and high school students walked out of schools and into the streets of this economically struggling city,” Al Jazeera America reports.
“Newark students: stand up, fight back!” the students chanted throughout the rally.
“The Anderson administration is not afraid to take quality schools away but is scared of students engaging in their right,” Newark Students Union president Kristin Towkaniek, told the crowd. “It’s your right to be here.”
“I’m walking out because the voices of the students need to be heard, and they will be heard,” said Towkaniuk ahead of the march.
“They said (the plan) will make Newark schools better,” Jose Leonard, a 16-year-old at Arts High School, told Al Jazeera America. “They’ve been saying that for 20 years and we haven’t seen anything. It’s like they don’t care about the students.”
The protest follows a growing trend in students putting their foot down in opposition to a countrywide trend of defunding public education.
As Al Jazeera America reports:
In February, Pennsylvania Gov. Tom Corbett canceled his appearance at a Philadelphia public school after students and teachers at the school planned a protest over his budget cuts, which forced many of the city’s schools to cut all extracurricular activities. In Oklahoma, an estimated 25,000 converged on the capitol earlier this week to protest low school funding. Protests have also been held in Oregon and in Camden, N.J.
The protests in Newark aren’t new, either. Last year, high schools students formed the Newark Students Union and held a protest in the city’s downtown area, followed by another in March of this year.
“What’s happening in Newark follows a national pattern as we see states fund schools less than they did before the (2008) recession started,” said Jeff Bryant, a fellow the Campaign for America’s Future.
American Federation of Teachers New Jersey has video of the protest:
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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.
Clintons’ Pet Project for Privatized ‘Aid’ to Haiti Stealing Workers’ Wages: Report October 17, 2013Posted by rogerhollander in Haiti, Hillary Clinton.
Tags: Bill Clinton, caracol industrial, clinton foundation, garment industry, haiti, haiti reconstruction, hillary clinton, labor, labour, privatization, roger hollander, sarah lazare, workers rights
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Roger’s note: Ah, the Clintons, the couple I love (to hate), major destroyers of what little was left of liberal progressiveness in the Democratic Party. Here they are in Haiti with their bloodsucking “private” capitalistic venture in Haiti, which is the home to one of the poorest peoples in the world, helping to make them even poorer.
“We’re sending a message that Haiti is open for business again,” Hillary Clinton declared upon the announcement of the opening. What she mean was “open for exploitation.”
Published on Wednesday, October 16, 2013 by Common Dreams
‘This calls into question the sustainability and effectiveness of relying on the garment industry to lead Haiti’s reconstruction’
Haiti’s Caracol Industrial Park—the U.S. State Department and Clinton Foundation pet project to deliver aid and reconstruction to earthquake-ravaged Haiti in the form of private investment—is systematically stealing its garment workers’ wages, paying them 34 percent less than minimum wage set by federal law, a breaking report from the Worker Rights Consortium reveals.
Critics charge that poverty wages illustrate the deep flaws with corporate models of so-called aid. “The failure of the Caracol Industrial Park to comply with minimum wage laws is a stain on the U.S.’s post-earthquake investments in Haiti and calls into question the sustainability and effectiveness of relying on the garment industry to lead Haiti’s reconstruction,” said Jake Johnston of the Center for Economic and Policy Research in an interview with Common Dreams.
Caracol is just one of five garment factories profiled in this damning report, released publicly on Wednesday, which finds that “the majority of Haitian garment workers are being denied nearly a third of the wages they are legally due as a result of the factories’ theft of their income.” This is due to systematic employer cheating on piece-work and overtime, as well as failure to pay employees for hours worked.
WRC charges that the wage theft at these 5 factories is “typical” across the country’s garment industry, leading to the suppression of national wages at deep poverty levels. As a result, workers have trouble affording food, shelter, and medical care, the report finds.
Through a series of in-depth interviews, as well as review of pay records, researchers discovered that the problem of wage theft throughout the country’s garment industry is “egregious” at Northern Haiti’s Caracol Industrial Park, which sits at the center of U.S. ‘reconstruction’ efforts and is slated to employ an estimated 20,000 people.
Financers included the Inter-American Development Bank, the U.S. State Department, and the Clinton Foundation, who invested a total of $224 million with promises to uphold high labor standards. Its anchor tenant is the Korean S&H Global factory, which sells garments to Walmart, Target, Kohl’s, and Old Navy, according to the report.
The largest post-earthquake U.S. investment in Haiti, Caracol’s backers have championed it as a model for privatized reconstruction. In a July press release, the U.S. State Department champions the park as a chance to “spur economic growth and bring jobs to Haiti’s underserved regions.”
Then-U.S. Secretary of State Hillary Clinton and former U.S. President Bill Clinton attended Caracol’s opening ceremony a year ago. “We’re sending a message that Haiti is open for business again,” Hillary Clinton declared upon the announcement of the opening.
The Clinton Foundation did not immediately respond to a request from Common Dreams for an interview.
This work is licensed under a Creative Commons Attribution-Share Alike 3.0 License
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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