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Thanks,

Robert Sterling
Editor, The Konformist
http://www.konformist.com


[EMAIL PROTECTED] (*STRIDER*)

Date: Fri, 06 Oct 2000
WM. H. K�tke <[EMAIL PROTECTED]>

IMPORTANT NEW BOOK/HISTORY/BACKGROUND/WTO

I would like to submit the following for the list. My bona fides 
appear at
the end of this email. Thanks a bunch. I use your list often! WM.

BOOK REVIEW Economic Democracy: The Political Struggle of the Twenty-
first
Century. J.W. Smith. M.E. Sharpe, pub. 2000. 380 p. $99.00. (Ask your
library to order a copy).

THE HIDDEN HISTORY OF THE ORIGINS OF THE WTO

This significant new text is destined to become a handbook for those 
who
are becoming awakened to the new planetary economic order. This book 
will
also be a tremendous resource for anyone wanting to understand the 
history
and present realities of the economic power relationships of world 
society.
Smith traces the origins of the ownership and control of industrial 
society
to its beginnings in medieval European society. When the elites within
medieval city-states began to create rustic technology in such 
industries
as cloth making they had to go to their countryside to get the raw
materials such as wool. They also needed to sell their products for 
profit
within the city and enough back to the countryside to pay for those
resources. As Smith describes, the peasants in the countryside 
observed
this rudimentary technology in the city and began to duplicate it. To
maintain their profits and economic power, the elites sent their 
military
forces to the countryside and destroyed the peasants' machinery, 
militarily
forcing the countryside to provide raw materials and become a captive
market for manufactured products. The elites, to maintain their 
profits and
economic power made a military response. The military force went to 
the
countryside and destroyed the peasants' machinery and militarily 
enforced
the pattern of the countryside providing raw materials and becoming a
forced market. Centuries later we see Gandhi in India always sitting 
with a
spinning wheel as protest against the British Empire that ruled the 
land.
Although India had previously produced some of the finest cloth in the
world, Britain prohibited the production of cloth in India in order to
funnel the wealth spent for cloth to the mills in the imperial 
center. Many
years later we see the IMF and World Bank force Third World countries 
to
"privatize" their publicly owned utilities and such and sell the 
facilities
off to the transnational corporations and banks of the imperial 
center.
There has been no change in the mechanism of economic power.

Smith focuses on the aspect of unequal trades. This is the mechanism 
that
funnels the wealth to those in control. Smith also examines the 
changing
strategies of military control of empire and exposes the fact that
monopolies are still alive and well. In olden times the mounted troops
simply came and destroyed the peasants' looms. Now we have control of 
money
through the international banks and the control of ideas through
intellectual property rights and patents guaranteed by the WTO and 
backed
by worldwide military force. All of this is done with the 
acquiescence of
the mass populations unaware that monopolies, which deny the masses 
their
full rights, are structured within capitalism's laws. Smith does an
excellent and scholarly job of documenting how these monopolies are 
hidden
through a continual refinement of imposed "Social Control Belief 
Systems."
He shows how the British imperial elite took the work of Adam Smith 
and
twisted it to further hide the very monopolies that Adam Smith had 
argued
against and deplored! While the Wizard of Oz in the background used 
covert
operations, military force, and various forms of colonialism, they 
held out
the myth of the "free market" to the eyes of the masses:  "No one is 
in
control, economic events and consequences are simply the work of the 
free
market working itself out for all of our benefit!" The U.S. is 5% of 
the
world population and sucks up 48% of world resources each year. Their
military budget is larger this year than the next nine countries 
behind
them - combined. The U.S. keeps military troops stationed in over 100
countries in the world. Are we to believe that this is not a military 
and
economic empire held in place by force? Of course not! This economic 
elite
is so concentrated that it owns the U.S. government. Notice how 
quickly all
involved stepped up to pass NAFTA. (This "free trade" document is 
more than
1,000 pages of "rules"). One half of one per cent of the U.S. 
population
owns wealth equal to the bottom 80%. The activities of those in power 
are
not for our benefit. According to studies of the United Nations 
Development
Program, the assets of the top three world billionaires are more than 
the
combined GNP of all 48 least developed countries and their 600 million
people. A yearly contribution of 1% of the wealth of the 200 richest 
people
in the world could provide universal access to primary education for 
all.
As Smith demonstrates in his voluminous scholarly documentation, this 
is
not a matter of "economics" carrying all of those emotionally laden 
words,
it is a matter of massive social institutions of whatever label, that 
own
and control the lives of the worlds' people. This power of the 
planetary
economic elite is now projected over and above government's -by the 
WTO and
all of its institutional appendages. No one on the planet has ever 
voted in
a democratic election to militarily control the world and have the 
WTO run
it!

Solutions

Smith's scholarly study goes on to point out solutions that we can 
use in
the future. There is enough, he points out. Smith states that $17 
trillion
(1990 dollars) has been spent on arms since World War II.
"�[T]hat is 
five
times enough to have industrialized the developing world to a 
sustainable
level over the past forty-five years," he says. "The $3.15 trillion 
needed
for developing world industries would have left $13.85 trillion to 
provide
training to run the machines and society; to install initial 
communications
infrastructure to reach the populations with that training (including
population control); to guarantee food until a country was able to 
produce
its own; to search for, catalog, and develop, resources; and for
environmental protection." In this scholarly study Smith points to the
actual ability of society to produce the adequate needs of all. The
presently imposed belief system, as Smith describes, would have us 
believe
there is scarcity. At the same time, the miniscule group at the top 
says
there is not enough for schools, they allocate whatever is needed for 
the
vast structure of economic and military warfare that they are 
carrying out.
In a number of chapters of elaborate description, Smith shows how the
productive force of society could be easily directed toward adequate
standards of living that also guarantee protection of the 
environment. This
is a great value of his work -to provide a vision of how easily it 
could be
done and to provide an image that can shine through the fog of 
propaganda
generated by the tiny but powerful world economic elite.



WM. H. K�TKE

LITERARY SERVICES web site (writing, editing, book production)
http://www.angelfire.com/electronic/literaryservices/

AUTHOR:  THE FINAL EMPIRE: THE COLLAPSE OF CIVILIZATION AND THE SEED 
OF THE
FUTURE BOOK REVIEW AT: http://www.flyingdisk.com/finalemp.htm

PUBLISHER: ARROW POINT PRESS, 400 North Combs Flat Road, Prineville,OR
97754           1 541-447-7964  email: [EMAIL PROTECTED]

====== ASSOCIATE: INSTITUTE FOR ECONOMIC DEMOCRACY
1635 Via Sabroso, Santa Maria, CA 93454
phone/fax 1-805-928-7060
http://www.slonet.org/~ied/

OUR DEFINING WORK: ECONOMIC DEMOCRACY: THE POLITICAL STRUGGLE OF THE 
21st
CENTURY,    by J.W. Smith to be published in November 2000 by M.E. 
Sharpe.

====== ASSOCIATE: ECO DESIGN EXPERIENCE
A course of study created by Ecological Systems Design, Inc.
AND The San Francisco Institue of Architecture

===Oracle Campus Located At===
1290 Rancho Robles Road:::MAIL: P.O. Box 5209,Oracle, AZ 85623
Phone;1-520-896 3303/3301 Toll Free at: 1-877-208-6673
EMAIL; [EMAIL PROTECTED] WEBSITE ADDRESS:
http://personal.riverusers.com/~philhawes


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------



Peace!

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*****

Robin Ramsay ([EMAIL PROTECTED])

Lobster,
 Hull, UK

Dear Robert,

                  Here is a very important piece abut the IMF which 
appeared
in this country's Sunday broadsheet, The Observer.  To my knowledge 
this is
the first time an actual IMF country plan has been exposed; and  
exposed as
gangsterism pure and simple.  The author, Greg Palast, is an 
American - and
just about the most important radical journalist being published in 
the
mainstream media in this country.

Cheers,

Robin Ramsay


Failures of the 20th century: see under IMF 

An internal study reveals the price 'rescued' nations pay: dearer
essentials, worse poverty and shorter lives 

Observer  Sunday October 8, 2000 

Gregory Palast

So call me a liar. I was standing in front of the New York Hilton 
Hotel
when the limousine carrying International Monetary Fund director Horst
Kohler zoomed by, hitting a bump. Out flew a confidential report, 
Ecuador
Interim Country Assistance Strategy. You suspect that's not how I got 
it,
but you can trust me that it contains the answer to a puzzling 
question. 
Inside the Hilton, Professor Anthony Giddens told an earnest crowd of
London School of Economics alumni that 'globalisation is a fact, and 
it is
driven by the communications revolution'. 

Wow. That was an eye-opener. The screeching green-haired freaks 
outside the
hotel demonstrating against the IMF had it all wrong. 

Globalisation, Giddens seems to say, is about giving every villager 
in the
Andes a Nokia internet-enabled mobile phone. What puzzled me is why 
anyone
would protest against this happy future. 

So I thumbed through my purloined IMF Strategy for Ecuador seeking a
chapter on connecting the country's schools to the world wide web. 
Instead,
I found a secret schedule. By 1 November this year, it says, its 
government
is ordered to raise the price of cooking gas by 80 per cent. It must
eliminate 26,000 jobs and halve real wages for the remaining workers 
by 50
per cent in four steps in months specified by the IMF. It must begin 
to
transfer ownership of its biggest water system to foreign operators 
by July
and grant BP's Arco subsidiary the right to build and own an oil 
pipeline
over the Andes. 

That's for starters. In all, the IMF's 167 loan conditions look less 
like
an assistance plan and more like a blueprint for a financial coup 
d'�tat. 

The IMF would say it has no choice. Ecuador is broke, thanks to the
implosion of its commercial banks. But how did Ecuador, an Opec 
member with
resources to spare, end up in such a pickle? 

For that, we have to turn back to 1983, when the IMF forced its 
government
to take over the soured private debts owed by Ecuador's elite to 
foreign
banks. For this bail-out of US and local financiers, Ecuador borrowed 
$1.5
billion. 

To repay this loan, the IMF dictated price hikes for electricity and 
other
necessities. And when that didn't drain off enough cash, yet another
assistance plan required the state to eliminate 120,000 jobs. 

Furthermore, while trying to meet the mountain of IMF obligations, 
Ecuador
foolishly 'liberalised' its tiny financial market, cutting local banks
loose from government controls and letting private debt and interest 
rates
explode. 

Who pushed Ecuador into this nutty romp with free-market banking? 
Hint: the
initials are IMF. It made bank liberalisation a condition of another
berserk assistance plan. The facts of this nasty little history come 
from
the IMF report marked: 'Please do not cite.' Pretend I didn't. 

The IMF and the World Bank have lent a sticky helping hand to scores 
of
nations. Take Tanzania. Today, 1.4 million people there are getting 
ready
to die. They are the 8 per cent of the nation's population who have 
the
Aids virus. The financial 'rescuers' found a brilliant neo-liberal
solution: require Tanzania to charge for hospital visits, previously 
free.
This cut the number of patients treated in the three big public 
hospitals
in the capital, Dar es Salaam, by 53 per cent. The financial cures 
must be
working. 

The bodies told Tanzania to charge school fees. Now the bank expresses
surprise that school enrolment is down from 80 per cent to 66 per 
cent. 

Altogether the Bank and IMF have 157 other helpful suggestions for
Tanzania, and the Tanzanian government secretly agreed last April to 
adopt
them all. It was sign or starve. No developing nation can borrow hard
currency without IMF blessing (except China, whose output grows at 5 
per
cent a year thanks to it studiously following the reverse of IMF 
policies).


The IMF and World Bank have effectively controlled Tanzania's economy 
since
1985. Admittedly, when they took charge they found a socialist nation 
mired
in poverty, disease and debt. 

Their experts wasted no time in cutting trade barriers, limiting 
government
subsidies and selling off state industries. This worked wonders. 
According
to bank-watcher Nancy Alexander of the Washington-based Globalisation
Challenge Initiative,in just 15 years Tanzania's GDP has dropped from 
$309
to $210 per capita, the literacy rate is falling and the rate of 
abject
poverty has jumped to 51 per cent of the population. 

Yet somehow the bank has failed to win over the hearts and minds of
Tanzanians to its free-market gameplan. Last June, the bank reported 
in
frustration: 'One legacy of socialism is that most people continue to
believe the state has a fundamental role in promoting development and
providing social services.' 

The World Bank and the IMF were born in 1944 with simple, laudable
mandates: between them to fund post-war reconstruction and development
projects and lend hard currency to nations left skint by temporary 
balance
of payments deficits. 

But in 1980 they seemed to take on an alien form. In the early 
Eighties,
Third World nations, haemorrhaging after the fivefold increases in oil
prices and a similar jump in dollar interest payments, brought their
begging bowls to the two bodies. But instead of debt relief, they 
received
structural assistance plans listing an average of 
114 'conditionalities' in
return for capital. 

The particulars varied from nation to nation, but in every case, they 
had
to remove trade barriers, sell national assets to foreign investors, 
slash
social spending and make labour 'flexible' (that is, crush unions). 

Some say the vicious policy change resulted from the election that 
year of
Ronald Reagan as US President, the quickening of Margaret Thatcher's 
powers
and the beginning of the neo-liberal ascendency. (My own information 
is
that the IMF and World Bank were taken over by a space alien named 
Larry.
It's obvious that 'Larry' Summers, once World Bank chief economist 
and now
US Treasury Secretary, is really a platoon of extra- terrestrials 
sent to
turn much of the human race into a source of cheap protein. But I 
digress.)


So what have The Aliens accomplished with their e free-market
prescriptions? An article by Samuel Brittan in last week's Financial 
Times
declared that the new world capital markets and free trade 
have 'brought
about an unprecedented increase in world living standards'. Brittan 
cites
the huge growth in GDP per capita, life expectancy and literacy in 
the less
developed world from 1950 to 1995. 

Now hold on a minute. Until 1980, virtually every nation in his 
survey was
either socialist or welfare statist. They were developing on 
the 'Import
Substitution Model', by which locally-owned industry was built through
government investment and high tariffs, anathema to the neoliberals. 

In those dark ages of increasing national government control and 
ownership
(1960-1980), per capita income grew by 73 per cent in Latin America 
and by
34 per cent in Africa. By comparison, since 1980, Latin American 
growth has
come to a virtual halt, growing by less than 6 per cent over 20 
years - and
African incomes have declined by 23 per cent. 

Now let's count the corpses. From 1950 to 1980, socialist and statist
welfare policies added more than a decade of life expectancy to 
virtually
every nation on the planet. From 1980 to today, life under structural
assistance has become brutish and shorter. Since 1985, the total 
number of
illiterate people has risen and life expectancy is falling in 15 
African
nations. Brittan attributes this to 'bad luck, [not] the international
economic system'. In the former Soviet states, where IMF and World 
Bank
shock plans hold sway, life expectancy has plunged, adding 1.4 
million a
year to the death rate in Russia alone. 

Admittedly, the World Bank and IMF are reforming. The dreaded 
structural
assistance plans have been renamed 'poverty reduction strategies'. 
Doesn't
that make you feel better? 

Recently, the IMF admitted that 'in the recent decades, nearly one-
fifth of
the world population have regressed' - arguably 'one of the greatest
economic failures of the twentieth century.' And that, Professor 
Giddens,
is a fact. 

[EMAIL PROTECTED]


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