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[ prisons -- issues -- crisis -- Pris. Ind. Complex & Global Econ. ]
The Prison Industrial Complex and the Global Economy
by Eve Goldberg and Linda Evans

Over 1.8 million people are currently behind bars in the United States. This
represents the highest per capita incarceration rate in the history of the
world. In 1995 alone, 150 new U.S. prisons were built and filled.

This monumental commitment to lock up a sizeable percentage of the population
is an integral part of the globalization of capital. Several strands converged
at the end of the Cold War, changing relations between labor and capital on an
international scale: domestic economic decline, racism, the U.S. role as
policeman of the world, and growth of the international drug economy in
creating a booming prison/industrial complex. And the prison industrial complex
is rapidly becoming an essential component of the U.S. economy.

PRISONS ARE BIG BUSINESS
Like the military/industrial complex, the prison industrial complex is an
interweaving of private business and government interests. Its twofold purpose
is profit and social control. Its public rationale is the fight against crime.

Not so long ago, communism was "the enemy" and communists were demonized as a
way of justifying gargantuan military expenditures. Now, fear of crime and the
demonization of criminals serve a similar ideological purpose: to justify the
use of tax dollars for the repression and incarceration of a growing percentage
of our population. The omnipresent media blitz about serial killers, missing
children, and "random violence" feeds our fear. In reality, however, most of
the "criminals" we lock up are poor people who commit nonviolent crimes out of
economic need. Violence occurs in less than 14% of all reported crime, and
injuries occur in just 3%. In California, the top three charges for those
entering prison are: possession of a controlled substance, possession of a
controlled substance for sale, and robbery. Violent crimes like murder, rape,
manslaughter and kidnaping don't even make the top ten.

Like fear of communism during the Cold War, fear of crime is a great selling
tool for a dubious product.

As with the building and maintenance of weapons and armies, the building and
maintenance of prisons are big business. Investment houses, construction
companies, architects, and support services such as food, medical,
transportation and furniture, all stand to profit by prison expansion. A
burgeoning "specialty item" industry sells fencing, handcuffs, drug detectors,
protective vests, and other security devices to prisons.

As the Cold War winds down and the Crime War heats up, defense industry giants
like Westinghouse are re-tooling and lobbying Washington for their share of the
domestic law enforcement market. "Night Enforcer" goggles used in the Gulf War,
electronic "Hot Wire" fencing ("so hot NATO chose it for high-risk
installations"), and other equipment once used by the military, are now being
marketed to the criminal justice system.

Communication companies like AT&T,;Sprint, and MCI are getting into the act as
well, gouging prisoners with exorbitant phone calling rates, often six times
the normal long distance charge. Smaller firms like Correctional Communications
Corp., dedicated solely to the prison phone business, provide computerized
prison phone systems, fully equipped for systematic surveillance. They win
government contracts by offering to "kick back" some of the profits to the
government agency awarding the contract. These companies are reaping huge
profits at the expense of prisoners and their families; prisoners are often
effectively cut off from communication due to the excessive cost of phone
calls.

One of the fastest growing sectors of the prison industrial complex is private
corrections companies. Investment firm Smith Barney is a part owner of a prison
in Florida. American Express and General Electric have invested in private
prison construction in Oklahoma and Tennessee. Correctional Corporation Of
America, one of the largest private prison owners, already operates
internationally, with more than 48 facilities in 11 states, Puerto Rico, the
United Kingdom, and Australia. Under contract by government to run jails and
prisons, and paid a fixed sum per prisoner, the profit motive mandates that
these firms operate as cheaply and efficiently as possible. This means lower
wages for staff, no unions, and fewer services for prisoners. Private contracts
also mean less public scrutiny. Prison owners are raking in billions by cutting
corners which harm prisoners. Substandard diets, extreme overcrowding, and
abuses by poorly trained personnel have all been documented and can be expected
in these institutions which are unabashedly about making money.

Prisons are also a leading rural growth industry. With traditional agriculture
being pushed aside by agribusiness, many rural American communities are facing
hard times. Economically depressed areas are falling over each other to secure
a prison facility of their own. Prisons are seen as a source of jobs‹in
construction, local vendors and prison staff‹as well as a source of tax
revenues. An average prison has a staff of several hundred employees and an
annual payroll of several million dollars.

Like any industry, the prison economy needs raw materials. In this case the raw
materials are prisoners. The prison industrial complex can grow only if more
and more people are incarcerated‹even if crime rates drop. "Three Strikes" and
mandatory minimums (harsh, fixed sentences without parole) are two examples of
the legal superstructure quickly being put in place to guarantee that the
prison population will grow and grow and grow.

LABOR AND THE FLIGHT OF CAPITAL
The growth of the prison industrial complex is inextricably tied to the
fortunes of labor. Ever since the onset of the Reagan-Bush years in 1980,
workers in the United States have been under siege. Aggressive union busting,
corporate deregulation, and especially the flight of capital in search of
cheaper labor markets, have been crucial factors in the downward plight of
American workers.

One wave of capital flight occurred in the 1970s. Manufacturing such as
textiles in the Northeast moved south‹to South Carolina, Tennessee, Alabama‹non-
union states where wages were low. During the 1980s, many more industries
(steel, auto, etc.) closed up shop, moving on to the "more competitive
atmospheres" of Mexico, Brazil, or Taiwan where wages were a mere fraction of
those in the U.S., and environmental, health and safety standards were much
lower. Most seriously hurt by these plant closures and layoffs were African-
Americans and other semiskilled workers in urban centers who lost their decent
paying industrial jobs.

Into the gaping economic hole left by the exodus of jobs from U.S. cities has
rushed another economy: the drug economy.

THE WAR ON DRUGS
The "War on Drugs," launched by President Reagan in the mid-eighties, has been
fought on interlocking international and domestic fronts.

At the international level, the war on drugs has been both a cynical cover-up
of U.S. government involvement in the drug trade, as well as justification for
U.S. military intervention and control in the Third World.

Over the last 50 years, the primary goal of U.S. foreign policy (and the
military industrial complex) has been to fight communism and protect corporate
interests. To this end, the U.S. government has, with regularity, formed
strategic alliances with drug dealers throughout the world. At the conclusion
of World War II, the OSS (precursor to the CIA) allied itself with heroin
traders on the docks of Marseille in an effort to wrest power away from
communist dock workers. During the Vietnam war, the CIA aided the heroin
producing Hmong tribesmen in the Golden Triangle area. In return for
cooperation with the U.S. government's war against the Vietcong and other
national liberation forces, the CIA flew local heroin out of Southeast Asia and
into America. It's no accident that heroin addiction in the U.S. rose
exponentially in the 1960s.

Nor is it an accident that cocaine began to proliferate in the United States
during the 1980s. Central America is the strategic halfway point for air travel
between Colombia and the United States. The Contra War against Sandinista
Nicaragua, as well as the war against the national liberation forces in El
Salvador, was largely about control of this critical area. When Congress cut
off support for the Contras, Oliver North and friends found other ways to fund
the Contra re-supply operations, in part through drug dealing. Planes loaded
with arms for the Contras took off from the southern United States, offloaded
their weapons on private landing strips in Honduras, then loaded up with
cocaine for the return trip.

A 1996 exposé by the San Jose Mercury News documented CIA involvement in a
Nicaraguan drug ring which poured thousands of kilos of cocaine into Los
Angeles' African-American neighborhoods in the 1980s. Drug boss, Danilo
Blandon, now an informant for the DEA, acknowledged under oath the drugs- for-
weapons deals with the CIA-sponsored Contras.

U.S. military presence in Central and Latin America has not stopped drug
traffic. But it has influenced aspects of the drug trade, and is a powerful
force of social control in the region. U.S. military intervention‹whether in
propping up dictators or squashing peasant uprisings‹now operates under cover
of the righteous war against drugs and "narco-terrorism."

In Mexico, for example, U.S. military aid supposedly earmarked for the drug war
is being used to arm Mexican troops in the southern part of the country. The
drug trade, however (production, transfer, and distribution points) is all in
the north. The "drug war money" is being used primarily to fight against the
Zapatista rebels in the southern state of Chiapas who are demanding land reform
and economic policy changes which are diametrically opposed to the
transnational corporate agenda.

In the Colombian jungles of Cartagena de Chaira, coca has become the only
viable commercial crop. In 1996, 30,000 farmers blocked roads and airstrips to
prevent crop spraying from aircraft. The Revolutionary Armed Forces of Colombia
(FARC) one of the oldest guerrilla organizations in Latin America, held 60
government soldiers hostage for nine months, demanding that the military leave
the jungle, that social services be increased, and that alternative crops be
made available to farmers. And given the notorious involvement of Colombia's
highest officials with the powerful drug cartels, it is not surprising that
most U.S. "drug war" military aid actually goes to fighting the guerrillas.

One result of the international war on drugs has been the internationalization
of the U.S. prison population. For the most part, it is the low level "mules"
carrying drugs into this country who are captured and incarcerated in ever-
increasing numbers. At least 25% of inmates in the federal prison system today
will be subject to deportation when their sentences are completed.

Here at home, the war on drugs has been a war on poor people. Particularly
poor, urban, African American men and women. It's well documented that police
enforcement of the new, harsh drug laws have been focused on low- level dealers
in communities of color. Arrests of African-Americans have been about five
times higher than arrests of whites, although whites and African- Americans use
drugs at about the same rate. And, African-Americans have been imprisoned in
numbers even more disproportionate than their relative arrest rates. It is
estimated that in 1994, on any given day, one out of every 128 U.S. adults was
incarcerated, while one out of every 17 African-American adult males was
incarcerated.

The differential in sentencing for powder and crack cocaine is one glaring
example of institutionalized racism. About 90% of crack arrests are of African-
Americans, while 75% of powder cocaine arrests are of whites. Under federal
law, it takes only five grams of crack cocaine to trigger a five-year mandatory
minimum sentence. But it takes 500 grams of powder cocaine‹100 times as much‹to
trigger this same sentence. This flagrant injustice was highlighted by a 1996
nationwide federal prison rebellion when Congress refused to enact changes in
sentencing laws that would equalize penalties.

Statistics show that police repression and mass incarceration are not curbing
the drug trade. Dealers are forced to move, turf is reshuffled, already
vulnerable families are broken up. But the demand for drugs still exists, as do
huge profits for high-level dealers in this fifty billion dollar international
industry.

>From one point of view, the war on drugs can actually be seen as a pre- emptive
strike. The state's repressive apparatus working overtime. Put poor people away
before they get angry. Incarcerate those at the bottom, the helpless, the
hopeless, before they demand change. What drugs don't damage (in terms of
intact communities, the ability to take action, to organize) the war on drugs
and mass imprisonment will surely destroy.

The crackdown on drugs has not stopped drug use. But it has taken thousands of
unemployed (and potentially angry and rebellious) young men and women off the
streets. And it has created a mushrooming prison population.

PRISON LABOR
An American worker who once upon a time made $8/hour, loses his job when the
company relocates to Thailand where workers are paid only $2/day. Unemployed,
and alienated from a society indifferent to his needs, he becomes involved in
the drug economy or some other outlawed means of survival. He is arrested, put
in prison, and put to work. His new salary: 22 cents/hour.

>From worker, to unemployed, to criminal, to convict laborer, the cycle has come
full circle. And the only victor is big business.

For private business, prison labor is like a pot of gold. No strikes. No union
organizing. No unemployment insurance or workers' compensation to pay. No
language problem, as in a foreign country. New leviathan prisons are being
built with thousands of eerie acres of factories inside the walls. Prisoners do
data entry for Chevron, make telephone reservations for TWA, raise hogs, shovel
manure, make circuit boards, limousines, waterbeds, and lingerie for Victoria's
Secret. All at a fraction of the cost of "free labor."

Prisoners can be forced to work for pennies because they have no rights. Even
the 14th Amendment to the Constitution which abolished slavery, excludes
prisoners from its protections.

And, more and more, prisons are charging inmates for basic necessities‹from
medical care, to toilet paper, to use of the law library. Many states are now
charging "room and board." Berks County jail in Pennsylvania is charging
inmates $10 per day to be there. California has similar legislation pending.
So, while government cannot (yet) actually require inmates to work at private
industry jobs for less than minimum wage, they are forced to by necessity.
Some prison enterprises are state run. Inmates working at UNICOR (the federal
prison industry corporation) make recycled furniture and work 40 hours a week
for about $40 per month. The Oregon Prison Industries produces a line of
"Prison Blues" blue jeans. An ad in their catalogue shows a handsome prison
inmate saying, "I say we should make bell-bottoms. They say I've been in here
too long." Bizarre, but true. The promotional tags on the clothes themselves
actually tout their operation as rehabiliation and job training for prisoners,
who of course would never be able to find work in the garment industry upon
release.

Prison industries are often directly competing with private industry. Small
furniture manufacturers around the country complain that they are being driven
out of business by UNICOR which pays 23 cents/hour and has the inside track on
government contracts. In another case, U.S. Technologies sold its electronics
plant in Austin, Texas, leaving its 150 workers unemployed. Six week later, the
electronics plant reopened in a nearby prison.

WELCOME TO THE NEW WORLD ORDER
The proliferation of prisons in the United States is one piece of a puzzle
called the globalization of capital.

Since the end of the Cold War, capitalism has gone on an international business
offensive. No longer impeded by an alternative socialist economy or the threat
of national liberation movements supported by the Soviet Union or China,
transnational corporations see the world as their oyster. Agencies such as the
World Trade Organization, World Bank, and the International Monetary Fund,
bolstered by agreements like NAFTA and GATT are putting more and more power
into the hands of transnational corporations by putting the squeeze on national
governments. The primary mechanism of control is debt. For decades, developing
countries have depended on foreign loans, resulting in increasing vulnerability
to the transnational corporate strategy for the global economy. Access to
international credit and aid is given only if governments agree to certain
conditions known as "structural adjustment."

In a nutshell, structural adjustment requires cuts in social services,
privatization of state-run industry, repeal of agreements with labor about
working conditions and minimum wage, conversion of multi use farm lands into
cash crop agriculture for export, and the dismantling of trade laws which
protect local economies. Under structural adjustment, police and military
expenditures are the only government spending that is encouraged. The
sovereignty of nations is compromised when, as in the case of Vietnam, trade
sanctions are threatened unless the government allows Camel cigarettes to
litter the countryside with billboards, or promises to spend millions in the
U.S.- orchestrated crackdown on drugs.

The basic transnational corporate philosophy is this: the world is a single
market; natural resources are to be exploited; people are consumers; anything
which hinders profit is to be routed out and destroyed. The results of this
philosophy in action are that while economies are growing, so is poverty, so is
ecological destruction, so are sweatshops and child labor. Across the globe,
wages are plummeting, indigenous people are being forced off their lands,
rivers are becoming industrial dumping grounds, and forests are being
obliterated. Massive regional starvation and "World Bank riots" are becoming
more frequent throughout the Third World.

All over the world, more and more people are being forced into illegal activity
for their own survival as traditional cultures and social structures are
destroyed. Inevitably, crime and imprisonment rates are on the rise. And the
United States law enforcement establishment is in the forefront, domestically
and internationally, in providing state-of-the-art repression.

Within the United States, structural adjustment (sometimes known as the
Contract With America) takes the form of welfare and social service cuts,
continued massive military spending, and skyrocketing prison spending. Walk
through any poor urban neighborhood: school systems are crumbling, after school
programs, libraries, parks and drug treatment centers are closed. But you will
see more police stations and more cops. Often, the only "social service"
available to poor young people is jail.

The dismantling of social programs, and the growing dominance of the right-
wing agenda in U.S. politics has been made possible, at least in part, by the
successful repression of the civil rights and liberation movements of the 1960s
and 70s. Many of the leaders‹Martin Luther King Jr., Malcolm X, Fred Hampton,
and many others‹were assassinated. Others, like Geronimo ji Jaga Pratt, Leonard
Peltier, and Mumia Abu-Jamal, have been locked up. Over 150 political leaders
from the black liberation struggle, the Puerto Rican independence movement, and
other resistence efforts are still in prison. Many are serving sentences
ranging from 40 to 90 years. Oppressed communities have been robbed of radical
political leadership which might have led an opposition movement. We are
reaping the results.

The number of people in U.S. prisons has more than tripled in the past 17
years‹from 500,000 in 1980 to 1.8 million in 1997. Today, more than five
million people are behind bars, on parole, probation, or under other
supervision by the criminal justice system. The state of California now spends
more on prisons than on higher education, and over the past decade has built 19
prisons and only one branch university.

Add to this, the fact that increasing numbers of women are being locked up.
Between 1980 and 1994, the number of women in prison increased five-fold, and
women now make up the fastest growing segment of the prison population. Most of
these women are mothers‹leaving future generations growing up in foster homes
or on the streets.

Welcome to the New World Order.

WHAT IS TO BE DONE?
Prisons are not reducing crime. But they are fracturing already vulnerable
families and communities.

Poor people of color are being locked up in grossly disproportionate numbers,
primarily for non violent crimes. But Americans are not feeling safer.

As "criminals" become scapegoats for our floundering economy and our
deteriorating social structure, even the guise of rehabilitation is quickly
disappearing from our penal philosophy. After all: rehabilitate for what? To go
back into an economy which has no jobs? To go back into a community which has
no hope? As education and other prison programs are cut back, or in most cases
eliminated altogether, prisons are becoming vast, over-crowded, holding tanks.
Or worse: factories behind bars.

And, prison labor is undercutting wages‹something which hurts all working and
poor Americans. It's a situation which can only occur because organized labor
is divided and weak and has not kept step with organized capital.

While capital has globalized, labor has not. While the transnationals truly are
fashioning our planet into a global village, there is still little
communication or cooperation between workers around the world. Only an
internationally linked labor movement can effectively challenge the power of
the transnational corporations.

There have been some wonderful, shining instances of international worker
solidarity. In the early 1980s, 3M workers in South Africa walked out in
support of striking 3M workers in New Jersey. Recently, longshore workers in
Denmark, Spain, Sweden and several other countries closed down ports around the
world in solidarity with striking Liverpool dockers. The company was forced to
negotiate. When Renault closed its plant in Belgium, 100,000 demonstrated in
Brussels, pressuring the French and Belgium governments to condemn the plant
closure and compel its reopening.

Here in the U.S., there is a glimmer of hope as the AFL-CIO has voted in some
new, more progressive leadership. We'll see how that shapes up, and whether the
last 50 years of anti communist, bread-and-butter American unionism is really a
thing of the past.

What is certain is that resistance to the transnational corporate agenda is
growing around the globe:

In 1996, the people of Bougainville, a small New Guinea island, organized a
secessionist rebellion, protesting the dislocations and ecological destruction
caused by corporate mining on the island. When the government hired mercenaries
from South Africa to train local troops in counterinsurgency warfare, the army
rebelled, threw out the mercenaries, and deposed the Prime Minister. A one day
General Strike shut down Haiti in January 1997. Strikers demanded the
suspension of negotiations between the Prime Minister and the International
Monetary Fund/World Bank. They protested the austerity measures imposed by the
IMF and WB which would mean laying off 7,000 government workers and the
privatization of the electric and telephone companies. In Nigeria, the Ogoni
people conducted a protracted eight year struggle against Shell Oil. Acid rain,
and hundreds of oil spills and gas flares were turning the once fertile
countryside into a near wasteland. Their peaceful demonstrations, election
boycotts, and pleas for international solidarity were met with violent
government repression and the eventual execution of Ogoni writer leader Ken
Saro Wiwa. In France, a month-long General Strike united millions of workers
who protested privatization, a government worker pay freeze, and cutbacks in
social services. Telephone, airline, power, postal, education, health care and
metal workers all joined together, bringing business to a standstill. The right-
wing Chirac government was forced to make minor concessions before being voted
out for a new "socialist" administration. At the Oak Park Heights Correctional
Facility in Minnesota, 150 prisoners went on strike in March 1997, demanding to
be paid the minimum wage. Although they lost a litigation battle to attain this
right, their strike gained attention and support from several local labor
unions.

Just as the prison industrial complex is becoming increasingly central to the
growth of the U.S. economy, prisoners are a crucial part of building effective
opposition to the transnational corporate agenda. Because of their enforced
invisibility, powerlessness, and isolation, it's far too common for prisoners
to be left out of the equation of international solidarity. Yet, opposing the
expansion of the prison industrial complex, and supporting the rights and basic
humanity of prisoners, may be the only way we can stave off the consolidation
of a police state that represses us all‹where you or a friend or family member
may yourself end up behind bars.

Clearly, the only alternative that will match the power of global of capital is
an internationalization of human solidarity. Because, truly, we are all in this
together.

"International solidarity is not an act of charity. It is an act of unity
between allies fighting on different terrains toward the same objective. The
foremost of these objectives is to aid the development of humanity to the
highest level possible."

-- Samora Machel (1933-1986), Leader of FRELIMO, First President of Mozambique

Linda Evans is a north american anti-imperialist political prisoners currently
at FCI Dublin in California.

Eve Goldberg is a writer, film maker, and solidarity and prisoners' rights
activist.

This pamphlet published by:
Prison Activist Resource Center
PO Box 339 Berkeley CA 94701
This page is part of the JusticeNet Prison Issues Desk. It is maintained by the
Prison Activist Resource Center, <[EMAIL PROTECTED]>. The Prison Issues
Desk is a project of JusticeNet.


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