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-Caveat Lector-

Below is a short clip from a conversation with Naomi Klein, a fellow
Canadian and our generation's most potent threat to the Borg-like
menace currently, collectively known as the World Bank/IMF/G8. Few
people can riff this fluidly when asked about the structural analysis
of the expansionist corpo-military paradigm in Iraq.


Naomi: In Iraq, all that we hear is: it's a mess, it's a mess, it's a
mess. It's a morass. It's a quagmire. It's a disaster. And that's
true, on a military level. It's a disaster because people are dying
and it's a disaster because it's deeply disorganized. But that whole
discussion, that strategic military discussion, is covering over the
broader question of: What were the goals of this war? And if we ask
the question of what were the goals of this war, then we can ask the
more serious question of: have those goals been achieved?


I believe that the goal of this war was to bomb, into being, a new
free trade zone. Precisely because of the enormous backlash against
these economic policies by countries that have already adopted them.
Capitalism functions like a drug addict. The drug is growth. It needs
growth to survive. It needs growth to expand. The market has not
actually recovered, it is in desperate need of new growth and it
finds itself in a situation where its usual suppliers, its usual
dealers, are cutting it off. That's what is happening in Latin
America. When attempts to privative energy and water in Bolivia are
resisted, when huge popular movements are saying 'we don't want the
free trade area of the Americas'... in Cancun, the last WTO round,
when poor countries banded together and said 'we'd rather have no
deal than a bad deal.'


That means that they're getting cut off.


Because what's embedded in these deals are opportunities for
expansion and growth; new markets, services on the agenda and so on.
I would call that free trade lite: that wrestles market access
through the WTO and FTA negotiations. And it's precisely because of
that desperation... the desperation of a junkie that now it's been
upgraded to this free trade at a barrel of a gun, or free trade
supercharge. Where we will get our free trade and expansion, we'll
get our shock therapy - which is what these economic policies are
called in Latin America and Russia - through shock and awe military
force. And if you believe, as I do, that that is actually the goal of
the war: market expansion and growth... not just oil but water,
roads, schools, hospitals, private jails, anything that can be turned
into a commodity and sold, then you have to say: 'OK, if that's the
goal, how's it going?'


It's going great.


It's not a mess. It's not a morass. It's not a quagmire. In fact,
it's going so well that the Economist recently describe Iraq as
a "capitalist dream." And the Financial Times described what Paul
Bremer has managed to achieve in terms of economic reforms as "a
wishlist for foreign investors." And he has done, in six months in
Iraq, what it took three decades to achieve in Latin America. In a
single day, on September 19, he passed a set of policies that
literally usually take three decades to get passed.

Iraq's economy was protected somewhat, as are all the economies of
Middle East, which is why it's not really about Iraq. Iraq is just
the wedge. And countries that have oil wealth have been able to use
that oil wealth to protect large sectors of the economy that, in
other parts of the world, are open to privatization. So in Iraq's
constitution it very clearly says that there are sectors of the
economy which are considered essential services and not open to
privatization. Not just oil, but water and so on. And it also says
that Iraqi businesses cannot be foreign-owned.


Very clear rules embedded in Iraq's constitution.


On September 19, Bremer introduced Order 39, which overturned Iraq's
constitution. It allowed 100% foreign ownership of Iraqi businesses
and it put 200 Iraqi state companies up for privatization, up for
sale. And it also said that companies coming into Iraq can take 100 %
of their profits out of the country. It also gave them a massive tax
break. Bigger than anything Bush has been able to achieve. The top
tax bracket in Iraq before September 19 was 45%, which is what it is
in Canada. It's now a 15% flat tax. So this is an economic overhaul.
It is shock therapy. It has already led to 70% unemployment, as you
know. And we're not hearing about it. All we're hearing about is this
strategic discussion from the military side. It's a distraction from
the truth... from the fact that the reason they went into the country
was to achieve this structural adjustment... to open it up.


Crack it open.


Senator John McCain described Iraq as a "pot of honey that's
attracting a lot of flies". And we know what the honey is. And we
know who the flies are: Bechtel, Halliburton and MCI. And they're
having a field day.


GNN: War is always presented by government as an ideological crusade.
As a battle between good and evil. But a quick study of history
reveals that so often it is really just about economics and the
expansion of markets. Is the attack on Iraq and, what you call, the
bombing of a new free trade zone the new template for globalization?
Is it the new model? Or is that too dramatic a description?


Naomi: I think it's very clear that this is the new model for free
trade. Which is bombing free trad zones into being. But that doesn't
render the old model obsolete. Because the other countries see this,
see what happens when you don't cooperate and that makes their trade
negotiations a little bit easier. So I think that the free trade lite
and this free trade supercharge work hand-in-hand.


But I'm not resigned about this. I think it's absolutely clear that
this is the new model, that this is the new template that they're
trying to sell. And Iraq is being treated as the dream economy for
the most ideological of Washington's neo-conservatives to come and
create the kind of economy that only exists in their own economics
text books. Because they actually can't achieve this wish-list this
capitalist dream at home because democracy gets in the way. And I am
hopeful about this situation for a couple of reasons. The first is
that it is a response to desperation and not an expression of
strength. The way that the U.S. likes to present itself to the world
is as this swaggering, unilateral superpower that doesn't have to
care about the rest of the world's opinion. If you see it in this
other context, where the world is, in fact, standing up in an
unprecedented way to this superpower. That there is an economic model
that is not actually capable of thinking rationally, it can only
think about how to get what it needs, which is growth and expansion.
Then, what is happening is Iraq can be seen as an act of desperation
and not of swaggering power, although it is an extraordinarily
lethal, dangerous form of desperation. And its important that those
of us who oppose this economic system undertand that. Because it can
give us power and insight and allow us to better organize ourselves,
strategically, to defeat it.

http://www.guerrillanews.com/bunker/west/doc3366.html





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sordid matters and 'conspiracy theory'—with its many half-truths, mis-
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major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
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Let us please be civil and as always, Caveat Lector.
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