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Myanmar learns the lesson of Libya

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Strike Myanmar from the regime change list. Only two years ago, the resource-rich country located between India and China was practicing the kind of economic nationalism that got Libyan leader Muammar Gadhafi deep into trouble with the US State Department and oil company giants. Now, Washington has suspended its sanctions on Myanmar and nominated its first ambassador to the country in 22 years.

Why?

The Obama administration says it’s because of the profound political changes Myanmar has brought about over the last year, including the release from house arrest of Aung San Suu Kyi, who now sits in Myanmar’s parliament. But the real reason has more to do with the country’s military rulers turning away from economic nationalism and throwing their economy’s doors open wide to ownership by outsiders.

Announcing the easing of US sanctions, US secretary of state Hilary Clinton went directly to the heart of the matter, after making obligatory remarks about Myanmar travelling the road to democracy. “Today we say to Americans business: Invest in Burma (Myanmar)!” [1]

When Myanmar’s military took power in a 1962 coup, it nationalized most industries and brought the bulk of the economy under government control, which is the way it stayed until two years ago.

Major utilities were state-owned and health-care and education were publically provided. Private hospitals and private schools were unheard of.

Ownership of land and local companies was limited to the country’s citizens. Companies were required to hire Myanmar workers. And the central bank was answerable to the government. [2]

But in the last year, Myanmar’s government began to sell off government buildings, its port facilities, its national airline, mines, farmland, the country’s fuel distribution network, and soft drink, cigarette and bicycle factories.

The doors to the country’s publically-owned health care and education systems were thrown open, and private investors were invited in.

A new law was drawn up to give more independence to the central bank, making it answerable to its own inflation control targets, rather than directly to the government. [3]

To top it all off, a foreign-investment law was drafted to allow foreigners to control local companies and land, permit the entry of foreign telecom companies and foreign banks, allow 100 percent repatriation of profits, and exempt foreign investors from paying taxes for up to five years.

What’s more, foreign enterprises would be allowed to import skilled workers, and wouldn’t be required to hire locally. [4]

With Myanmar signaling its willingness to turn over its economy to outside investors, President Obama last December dispatched Hillary Clinton to meet with Myanmar’s leaders, the first US secretary of state to visit in more than 50 years. [5]

William Hague soon followed, the first British foreign minister to visit since 1955. [6]

Other foreign ministers beat their own paths to the door of the country’s military junta, seeking to establish ties with the now foreign investment-friendly government on behalf of their own corporations, investors, and banks.

And business organizations sent their own delegations, including four major Japanese business organizations, all looking to cash in on Myanmar’s new opening. [7]

A new frontier

The Wall Street Journal calls Myanmar “the last, large frontier market in Asia” and describes its “potential” as “too great for …investors to ignore.” [8] The country is gas- and oil-rich, and teems with timber and gems. It could become a major exporter of rice and seafood, though with the country’s new foreign investment law, it will be the superrich of New York, London, and Tokyo who reap the lion’s share of benefits, not Myanmar’s citizens.

A country of poor people, Myanmar offers the attraction to overseas investors of low manufacturing wages. And it’s situated between India and China, giving manufacturers easy access to two emerging growth markets.

International companies are circling the country, says the Wall Street Journal, [9] (like vultures?) ready to invest their capital in the provision of heavy machinery, railways, airports, telecom networks, consumer goods–and services, including private healthcare. [10]

Their enthusiasm is no less than that expressed by US ambassador to Libya Gene A. Cretz in connection with that country. Cretz said the Libyans “were starting from A to Z in terms of building infrastructure and other things. If we can get American companies here on a fairly big scale, which we will try to do everything we can to do that, then this will redound to improve the situation in the United States with respect to our own jobs” [11] to say nothing of redounding to Wall Street with respect to its enrichment.

Two countries teeming with investment opportunities. The only difference is that Libya had to be bombed in hopes that Gadhafi’s successors would lay out the welcome mat for foreign investors and US and western European corporations with greater alacrity than the resource nationalism-practicing Gadhafi did.

Myanmar’s generals got the message, and laid out the welcome mat themselves, before they too faced Gadhafi’s fate.

1. Steve Myers, “As relations warm with Myanmar, U.S. will ease trade limits”, The New York Times, May 17, 2012.

2. “Myanmar’s ruling junta is selling state’s assets,” The New York Times, March 7, 2010; “Change comes to Myanmar, but only on the Junta’s terms,” The New York Times, March 17, 2010.

3. “Myanmar’s ruling junta is selling state’s assets,” The New York Times, March 7, 2010.

4. “Firms see Myanmar as next frontier”, The Wall Street Journal, November 30, 2011; Patrick Barta, “Myanmar considers letting outsiders in telecom market amid overhauls”, The Wall Street Journal, March 19, 2012; Patrick Barta, “Myanmar eases investment laws”, The Wall Street Journal, March 25, 2012.

5. Thomas Fuller, “Clinton set to visit Myanmar as Obama cites progress”, The New York Times, November 17, 2011.

6. Patrick Barta, “On Myanmar visit, U.K. calls for further reform”, The Wall Street Journal, January 6, 2011.

7. Yoree Koh, ”Japan Inc. Rushes to Myanmar”, The Wall Street Journal, April 25, 2012.

8. Patrick Barta, “A pariah regime courts West in China’s shadow”, The Wall Street Journal, November 17, 2011.

9. Patrick Barta, “Myanmar eases investment laws”, The Wall Street Journal, March 25, 2012.

10. John Bussey, “The new dance with Myanmar”, The Wall Street Journal, November 30, 2011

11. David D. Kirkpatrick, “U.S. reopens its embassy in Libya”, The New York Times, September 22, 2011.

Written by what's left

May 20, 2012 at 4:30 pm

Posted in Libya, Myanmar

Michael Barker’s Nonviolent Imperialism

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Written by what's left

March 14, 2008 at 12:25 am

Stephen Zunes and the Struggle for Overseas Profits

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The name for our profits is democracy” – Phil Ochs, Cops of the World

By Stephen Gowans

Stephen Zunes, a professor of Politics and International Studies at the University of San Francisco, is bristling against what he calls the leftist attack on “independent” grassroots nonviolent activists who are trying to bring down “autocratic” governments and “dictatorships” in places like Zimbabwe, Belarus and Iran (1). People who have cast votes in these countries may be surprised to discover they’re living in dictatorships, but the U.S. government says they are, and “progressives” like Stephen Zunes are happy to lend credibility to Washington’s charges. “Independent” grassroots activists in these same countries may be surprised to hear they’re independent, despite the cataract of support they receive from U.S. and Western governments and Western ruling class foundations, but if Zunes wants to elevate them from fifth columnists to independent democracy activists, they’re pleased to receive his support.

These days, Zunes’ bristling against the leftist attack may have something to do with the attack hitting too close to home (2). His association with dodgy U.S. ruling class foundations that hide the pursuit of U.S. foreign policy objectives behind a high-sounding commitment to peace has increasingly come under scrutiny. And judging by his reaction, he doesn’t like it (3).

Although he boasts of having impeccable progressive and anti-imperialist credentials, Zunes chairs the board of academic advisors for the International Center on Nonviolent Conflict (the ICNC), a Wall Street-connected organization that promotes nonviolent activism in the service of destabilizing foreign governments — the same ones the U.S. State Department (and Zunes) likes to discredit by calling them dictatorships.

The ICNC’s founding chair is New York investment banker Peter Ackerman, who is also a member of the board of the Council on Foreign Relations (CFR), an organization dominated by directors of major U.S. corporations, corporate lawyers and CEOs. The CFR brings together executives, government and military officials and scholars to provide policy advice to the U.S. State Department. Its key members circulate between the council, corporate board appointments and State Department positions. The CFR has never been particularly concerned about promoting peace, freedom and democracy, but has had a single-minded focus on promoting the overseas profit-making interests of U.S. corporations and investors.

Ackerman is also chairman of the board of Freedom House, an organization that champions the rights of journalists, union leaders and democracy activists to organize openly to bring down governments whose economic policies are insufficiently friendly to U.S. trade and investment. Funded by the U.S. State Department and the U.S. Congress’s National Endowment for Democracy, Freedom House features a rogues’ gallery of U.S. ruling class activists who have sat, or currently sit, on its board of directors: Donald Rumsfeld, Paul Wolfowitz, Otto Reich, Jeane Kirkpatrick, Zbigniew Brzezinski and Steve Forbes, among others. These people share Zunes’ rhetorical commitment to “freedom and democracy,” though the only freedom they’re interested in is the freedom of U.S. corporations and investors to accumulate capital wherever and whenever they please.

Ackerman’s Center has been heavily involved in successful and ongoing regime change operations, including in Yugoslavia, which Ackerman celebrated in a PBS-TV documentary, Bringing Down a Dictator, about the ouster of Yugoslav president Slobodan Milosevic. Ackerman, who studied under U.S. nonviolence guru Gene Sharp, has a U.S. Marine Corps officer son who earned a silver star for service in Iraq, using bombs and bullets, not nonviolent activism, to change Iraq’s regime. Apparently, Ackerman did little to instill nonviolent values in members of his own family.

The Center’s vice-chair is Berel Rodal, a former senior Canadian government official in foreign affairs, international trade, defense, security and intelligence, hardly the kind of background you would expect of an advocate of nonviolence, but fits well someone who has taken a leadership role in promoting Western foreign policy goals. Put the two together and you get nonviolent direct activism in the service of US foreign policy goals – -exactly what Rodal, Ackerman, the ICNC and Stephen Zunes are all about.

Another Center associate is Robert Helvey, whose book “On Strategic Non-Violent Conflict: Thinking about the Fundamental”, is promoted on the Center’s website. Helvey is a retired U.S. Army colonel and former U.S. military attaché to Myanmar (like Rodal’s, an improbable background for a budding Ghandi) who has been linked to anti-Chavez groups. Chavez has accused Helvey’s employer, the Albert Einstein Institution, of being behind an imperialist conspiracy to overthrow his government (4). Zunes says that “charges that…Bob Helvey” or the Albert Einstein Institution or the ICNC “are serving as agents of U.S. imperialism are totally unfounded” and that “the only visit to Venezuela that has taken place on behalf of any of these non-profit groups engaged in educational efforts on strategic nonviolence was in early 2006 when” Zunes “led a series of workshops at the World Social Forum in Caracas.” (5) Chavez, he says, has fallen for a conspiracy theory. These “individuals and groups” are not “plotting with his opponents to overthrow him.” (6)

But a Reuters’ report says Helvey was brought to Caracas in 2003 “by a group of businessmen and professionals to give courses to young activists on how to ‘resist, oppose, and change a government without the use of bombs and bullets.’” (7) Is Zunes unaware of this, or is he paltering with the truth?

Helvey’s dalliances with the anti-Chavez opposition came fast on the heels of “his work in Serbia before Milosevic’s fall” where he “briefed students on ways to organize a strike and how to undermine the authority of a dictatorial regime.” (8)

Zunes has received at least one research grant from the United States Institute of Peace (USIP) and has served as a fellow of the organization (9). USIP’s aim is to “help prevent and resolve violent conflicts”, an improbable mandate given that the organization was established by the U.S. government, receives funding from Congress, and has a board of directors appointed by the President, the secretary of state, the secretary of defense and the president of the National Defense University – hardly the world’s greatest advocates of peace, but pretty effective advocates of the pursuit of U.S. corporate and investor interests abroad.

What’s not so improbable is that Zune’s ICNC colleagues (you know, the guys who are absolutely not agents of U.S. imperialism) are also connected to USIP. ICNC founder and Freedom House chair Peter Ackerman is on the advisory council. Former U.S. Air Force officer, presidential campaign speechwriter and ICNC director Jack DuVall – who Zunes must know well based on his assurances that “Jack DuVall…is not an agent of U.S. imperialism” (10) — is also connected to the USIP.

It’s hardly curious, then, that a group of Americans, many with backgrounds in the military, but also in foreign policy and investment banking, connected in some way to the U.S.-government funded and directed Institute of Peace, and involved in training foreign activists to destabilize foreign governments, might be seen as agents of U.S. imperialism. But Zunes says they’re not, offering his assertion alone (and his self-proclaimed credentials as a progressive and anti-imperialist) as proof.

Zunes’ rhetoric is reminiscent of Bush’s. He says nonviolent activists are pursuing “freedom and democracy” (in the same way, apparently, the U.S. invasion of Iraq was a project in bringing freedom and democracy to the Middle East). He throws the charge of dictatorship around as facilely as Bush does. Yugoslavia (in 1999), Belarus, Zimbabwe, and Iran are dictatorships, he says. Apparently, Zunes has been too busy mimicking State Department press releases to notice there are elections and opposition parties in these places.

He says “there is no evidence…to suggest…that the U.S. government or any U.S.-funded entity has ever provided training, advice, or strategic assistance for the kind of mass popular nonviolent action campaigns that have toppled governments or threatened the survival of incumbent regimes.” (11)

Maybe he hasn’t been paying attention. When it comes to Zimbabwe, one of Zunes’ and the U.S. government’s favorite betes noire, there’s plenty of evidence. The British newspaper The Guardian revealed as early as August 22, 2002 that, “The United States government has said it wants to see President Robert Mugabe removed from power and that it is working with the Zimbabwean opposition” “trade unions, pro-democracy groups and human rights organizations” “to bring about a change of administration.” (12)

Washington confirmed its own civil society-assisted regime change plans for Zimbabwe in an April 5, 2007 report, revealing that in 2006 “The U.S. government continued to support the efforts of the political opposition, the media and civil society,” including providing training and assistance to the kind of grassroots “pro-democracy” groups phony anti-imperialists, among them, another ruling class foundation-connected academic, Patrick Bond, celebrate as “the independent left.” (13) The U.S. “supported workshops to develop youth leadership skills necessary to confront social injustice through nonviolent strategies.” (14)

Zunes tries to defend U.S. government meddling in the affairs of other countries by pointing out that “the limited amount of financial support provided to opposition groups by the United States and other Western governments in recent years cannot cause a nonviolent liberal democratic revolution to take place.” (15)

Who said it could? The real issue isn’t whether groups that challenge foreign governments are homegrown; it’s what they’re struggling for, why phony peace institutes are helping them, and what they’re going to end up with if they’re successful.

How curious that the governments Zunes really seems to be concerned about (Zimbabwe, Iran, Belarus and Myanmar) are hostile to the idea of opening their doors to unrestricted U.S. investment and exports. How curious that the successful soft revolutions Zunes admires (Yugoslavia, Georgia, Ukraine) have brought pro-U.S., pro-foreign investment governments to power.

And what happens when the soft revolutions Zunes and his colleagues assist, succeed? In Serbia, which Zunes’ ICNC considers to be the site of one of its most successful engagements, “dollars have accomplished what bombs could not. After U.S.-led international sanctions were lifted with Milosevic’s ouster in 2000, the United States emerged as the largest single source of foreign direct investment. According to the U.S. embassy in Belgrade, U.S. companies have made $1 billion worth of ‘committed investments’ represented in no small part by the $580 million privatization of Nis Tobacco Factory (Phillip Morris) and a $250 million buyout of the national steel producer by U.S. Steel. Coca-Cola bought a Serbian bottled water producer in 2005 for $21 million. The list goes on.” (16)

Meanwhile, in Kosovo, the “coal mines and electrical facilities, the postal service, the Pristina airport, the railways, landfills, and waste management systems have all been privatized. As is the case across the Balkans, ‘publicly-owned enterprises’ are auctioned for a fraction of their value on the private market with little or no compensation for taxpayers.” (17)

It should be recalled that prior to the soft revolution-engineered corporate takeover, the Yugoslav economy consisted largely of state- and socially-owned enterprises, leaving little room for U.S. profit-making opportunities, not the kind of place investment bankers like Ackerman could easily warm up to. That the toppling of Milosevic had everything to do with opening space for U.S. investors and corporations should have been apparent to anyone who read chapter four of the U.S.-authored Rambouillet ultimatum, an ultimatum Milosevic rejected, triggering weeks of NATO bombing. The first article called for a free-market economy and the second for privatization of all government-owned assets. NATO bombs seemed to have had an unerring ability to hit Yugoslavia’s socially-owned factories and to miss foreign-owned ones. This was an economic take-over project.

Zunes’ associate Helvey hasn’t limited himself to training activists to overthrow governments in Venezuela and Serbia. Wherever Washington seeks to oust governments that pursue economically nationalist or socialist policies, you’ll find Helvey (and perhaps Zunes as well) holding seminars on nonviolent direct action: in Belarus, in Zimbabwe, in Iraq (before the U.S. invasion) and in Iran (18).

Zunes would be a more credible anti-imperialist were he organizing seminars on how to use nonviolent direct action to overthrow the blatantly imperialist U.S. and British governments. With the largest demonstrations in history held in Western cities on the eve of the last conspicuous eruption of Anglo-American imperialism, it cannot be denied that there’s a grassroots movement for peace and democracy in the West awaiting Zunes’ assistance. So is he training U.S. and British grassroots activists to use nonviolent direct action to stop the machinery of war? No. His attention is directed outward, not on his own government, but on the governments Washington and ruling class think-tanks want overthrown. He’s also busy applying for grants from a phony U.S. government institute of peace, hooking up with Peter Ackerman and his gaggle of fifth column promoters and mimicking U.S. State Department nonsense about countries the U.S. ruling class would like to dominate but can’t being dictatorships and their Western-funded oppositions being independent.

Genuine progressives and anti-imperialists should carefully scrutinize the backgrounds of Zunes and others, paying special attention to their foundation and think-tank connections. They should also ask whether the “independent” grassroots groups these people celebrate are really independent, or whether they’re as tightly connected to Western governments and ruling class activist foundations as Zunes is.

1. “Nonviolent Action and Pro-Democracy Struggles,” Z-Net, February 17, 2008, http://www.zcommunications.org/znet/viewArticle/16538. See also Zune’s “Leftist Attack on Nonviolent Direct Action for Democratic Change, www.canvasopedia.org/files/various/Leftist_Attack_on_NVA.doc
2. Michael Barker, “Peace Activists, Criticism, and Nonviolent Imperialism,” MRZine, January 8, 2008, http://www.monthlyreview.org/mrzine/barker080108.html and John Bellamy Foster, “Reply to Stephen Zunes on Imperialism and the International Center on Nonviolent Conflict,” MRZine, January 17, 2008, http://www.monthlyreview.org/mrzine/foster170108.html.
3. Stephen Zunes, “Spurious Attacks on Supporters of Nonviolent Resistance to Oppression, MRZine, January 18, 2008, http://www.monthlyreview.org/mrzine/barker080108.html#zunes.
4. The Guardian, June 7, 2007.
5. Zunes, February 17, 2008.
6. Ibid.

Concerning Zunes’ assurances that Gene Sharp, Robert Helvey and the Albert Einstein Institution are not agents of U.S. imperialism and aren’t assisting groups plotting to overthrow the Chavez government:

“The AEI is run by Gene Sharp, a self-titled expert of what he calls ‘nonviolent defense,’ though better termed ‘regime change.’ His methodologies have been studied and utilized by opposition movements in Burma, Thailand, Tibet, Belarus, Serbia, Zimbabwe, and Venezuela. In the AEI’s 2004 annual report, Venezuela is highlighted as an area where actions are currently being taken:

Venezuelans opposed to Chavez met with Gene Sharp and other AEI staff to talk about the deteriorating political situation in their country. They also discussed options of opposition groups to further their cause effectively without violence. These visits led to an in-country consultation in April 2003. The nine day consultation was held by consultants Robert Helvey and Chris Miler in Caracas for members of the Venezuelan democratic opposition. The objective of the consultation was to provide them with the capacity to develop a nonviolent strategy to restore democracy to Venezuela. Participants included members of political parties and unions, nongovernmental organization leaders and unaffiliated activists…Helvey presented a course of instruction on the theory, applications and planning for a strategic nonviolent struggle. Through this, the participants realized the importance of strategic planning to overcome existing shortcomings in the opposition’s campaign against Chavez. Ofensiva Cuidadana, a pro-democracy group in Venezuela, request and organized the workshop. The workshop has led to continued contact with Venezuelans and renewed requests for additional consultations.”

Eva Golinger, Bush vs Chavez: Washington’s War on Venezuela, Monthly Review Press, New York, 2008, p. 136.

Either Zunes doesn’t know what’s going on, or is playing fast and loose with the truth.

7. Reuters, April 30, 2003.
8. Ibid.
9. See http://www.stephenzunes.org/ and http://www.fpif.org/advisers/37
10. Zunes, February 17, 2008.
11. Ibid.
12. The Guardian, August 22, 2002, http://www.guardian.co.uk/world/2002/aug/22/zimbabwe.chrismcgreal .
13. Stephen Gowans, “Talk Left, Funded Right, April 7, 2007, http://gowans.wordpress.com/2007/04/07/talk-left-funded-right/ .
14. U.S. Department of State, The U.S. Record 2006, http://www.state.gov/g/drl/rls/shrd/2006/.
15. Zunes, February 17, 2008.
16. Elise Hugus, “Eight Years After NATO’s ‘Humanitarian War’: Serbia’s new ‘third way’”, Z Magazine, April 2007, Volume 20, Number 4.
17. Ibid.
18. The Albert Einstein Institution, Report on Activities, 2000 to 2004, http://www.aeinstein.org/organizations/org/2000-04rpt.pdf .

Written by what's left

February 18, 2008 at 5:49 pm

Bread and Butter Issues behind Myanmar Protests

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By Stephen Gowans

Before discussion on Myanmar becomes another demonizing ritual led by the White House, and actively subscribed to by the respectable left, it would be prudent to consider recent mass protests in the country in the context of surrounding events and independent of the frame set the US government.

In his address to the UN General Assembly, US President George Bush denounced Myanmar as a “brutal regime” (along with Belarus, Cuba, Iran, Syria, north Korea and Zimbabwe), an echo of the 2006 National Security Directive, which called the same countries “outposts of tyranny”.

While media accounts – in step with the US state — have fostered the impression that the mass marches in Myanmar are “pro-democracy” protests against political tyranny, they have, on the contrary, been provoked by bread and butter issues. As the New York Times explained in the concluding paragraphs of a September 24 report, the protests began “August 19 in response to sharp, unannounced fuel price increases of up to 500 percent, immediately raising the prices of goods and transportation.”

The protests were initially led by students, and only recently by monks, after the police beat some monks at a small demonstration.

The monks have denounced the government for “impoverishing and pauperizing” the people — language devoid of the references to freedom and democracy much favored by the US state and firmly rooted in day-to-day economic concerns.

Washington’s real beef with Myanmar isn’t that it is a “brutal regime” or “outpost of tyranny.” Such US allies as Saudi Arabia, Egypt, Ethiopia and Israel are brutal regimes, but they’re showered with US aid and given diplomatic protection. The real problem with Myanmar is that its markets, land, resources and labor aren’t completely open to exploitation by US corporations and investors.

Myanmar practices protectionism. The government owns enterprises, rather than letting private capital (especially US capital) totally run the show. Like Cuba, north Korea and other US designated “outposts of tyranny”, it is not the kind of place the investment bankers, CEOs and corporate lawyers who dominate the US state can cozy up to — or make a buck in.

The US Department of Commerce complains that Myanmar has restrictive trade policies and sets the prices of staples below market value, including gasoline. Ironically, it appears Myanmar’s efforts to bring gasoline prices up to market value – something the US government would applaud – sparked the protests.

“The state totally dominates some sectors, including mining and power, and state-owned firms have an important role in transport, trade and manufacturing,” according to the Economist’s Intelligence Unit.

What’s worst from Washington’s point of view is that the country restricts foreign investment. Worst still, it fails to protect private property.

Those who are ready to jump on the demonize-Myanmar-bandwagon should understand whose agenda they’re advancing — and what its goals really are.

Written by what's left

September 26, 2007 at 10:41 pm

Posted in Myanmar

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