Latest Developments, May 9

In the latest news and analysis…

Thriving havens
The Guardian reports on a new study suggesting the G20’s attempted crackdown on tax havens has “largely failed” so far.
“Despite unprecedented action from political leaders, and a blizzard of bilateral co-operation treaties entered into by offshore centres, deposit data from the Bank of International Settlements (BIS) shows bank accounts in tax havens still held $2.7tn (£1.7tn) last year – about the same amount as in 2007.

However, [the study’s authors, Niels Johannesen and Gabriel Zucman] also noted that those withdrawing deposits around the time of co-operation treaties – possible tax evaders – were frequently shifting their wealth to other, similarly secretive, offshore centres where no such equivalent treaty existed.”

With donors like these…
Inter Press Service reports on a new Center for Economic and Policy Research paper that suggests policies being prescribed by the IMF and other donors could send Jamaica’s economy into a downward spiral.
“Jamaica is currently paying more debt interest than any other country, including those in Europe that have been reeling under the near collapse of the euro. In total, the island owes around 18 billion dollars.
‘Pro-cyclical macroeconomic policies, implemented under the auspices of the IMF, damaged Jamaica’s recent and current economic prospects,’ the report warns.
‘This policy mix risks perpetuating an unsustainable cycle where public spending cuts lead to low growth, exacerbating the public debt burden and eventually leading to further cuts and even lower growth.’ ”

Climate investment
The Financial Times reports on a new initiative that will ask the world’s 1,000 biggest institutional investors to report on their portfolio’s carbon footprint.
“Julian Poulter, executive director of the [Asset Owners’ Disclosure Project], says these investors manage more than $52tn, ‘and of this less than 2 per cent is invested in low carbon assets, while 50-60 per cent is invested in high carbon assets, whether that’s in energy, transport, agriculture, mining or property’.

‘The AODP is the last piece in the puzzle. The [Carbon Disclosure Project] has done a lot to generate a database of emissions and investors signed up to the [UN] Principles for Responsible Investment are demonstrating their intent to invest sustainably,’ Mr Poulter says. ‘What is missing is the driver that will make asset owners implement better investment practices. It is really important that we have some measurement of what the owners are doing.’ ”

Destroyed tapes
The BBC speaks to former senior CIA official Jose Rodriguez about his decision to destroy video documentation of his agency’s “enhanced interrogation techniques.”
Three days after the tapes had been shredded, a CIA memorandum, since released under America’s Freedom of Information Act, reported comments by Jose Rodriguez:
‘As Jose said, the heat from destroying [the tapes] is nothing compared to what it would be if the tapes got into the public domain – he said that out of context they would make us look terrible – it would be devastating to us. All in the room agreed.’
I put this to Rodriguez and he was typically upfront about it.
‘I said that, yes. If you’re waterboarding somebody and they’re naked, of course that was a concern of mine.’

Questionable friends
The Guardian reports on an upcoming parliamentary inquiry into the British government’s “involvement in supporting dubious practices overseas” over the last 40 years.
“The bosses of the world’s biggest multinational defence and oil companies, including BAE Systems and BP, will be asked to account for why hundreds of millions of pounds of government money was used to help military dictators build up their arsenals, and facilitated environmental and human rights abuses across the world.

The inquiry has no legal power to force industry executives or former politicians to provide evidence.”

IP’s uncertain future
Intellectual Property Watch reports that members of the World Intellectual Property Organization are engaged in a struggle to shape the UN agency’s “development orientation.”
On the first day [of WIPO’s Committee on Development and Intellectual Property meeting], an attempt was made again by developing countries to create a permanent agenda item on “IP and development,” which developed countries again resisted on the grounds that it is repetitive with the title of the committee itself. But developing countries’ concern is that broader issues of IP and development do not have a place in a committee that spends most of its time working through specific projects. They have raised this issue for several years.

Medical impartiality
Roehampton University’s Martin Stanton asks how it is that Briton Khalil Dale could have been kidnapped and killed, not in spite of his being a humanitarian worker, but because of it .
“First of all, the US Anti-Terror Law judges the provision of medical aid to ‘terrorists’, or negotiation with ‘terrorists’ to gain access to wounded, starving or destitute civilians, to constitute a major criminal offence. This has actively removed any identifiable ‘neutral’ status for doctors, nurses or allied health professionals in battlefield, conflict or famines zone. You are either for the ‘terrorists’ or against them.

It is alarming indeed to contemplate that troops might open fire on ambulances and hospitals, but it is truly terrifying to observe the covert removal of the basic human right of everyone to receive healthcare, irrespective of their social, religious, financial or political status.”

RIP Poco
Columbia University’s Hamid Dabashi argues the Arab Spring marked the end of postcolonialism.
“These uprisings have already moved beyond race and religion, sects and ideologies, pro- or anti-Western. The term ‘West’ is more meaningless today than ever before – it has lost its potency, and with it the notion, and the condition, we had code-named postcoloniality. The East, the West, the Oriental, the colonial, the postcolonial – they are no more. What we are witnessing unfold in what used to be called ‘the Middle East’ (and beyond) marks the end of postcolonial ideological formations – and that is precisely the principal argument informing the way this book discusses and celebrates the Arab Spring. The postcolonial did not overcome the colonial; it exacerbated it by negation. The Arab Spring has overcome them both.”

Latest Developments, April 4

In the latest news and analysis…

Aid down
The Organisation for Economic Co-operation and Development announced that 2011 marked the first time in 14 years that aid from its member countries had decreased.
“In 2011, members of the Development Assistance Committee (DAC) of the OECD provided USD 133.5 billion of net official development assistance (ODA), representing 0.31 per cent of their combined gross national income (GNI). This was a -2.7 % drop in real terms compared to 2010, the year it reached its peak. This decrease reflects fiscal constraints in several DAC countries which have affected their ODA budgets.”

Transfer pricing
Reuters reports Brazilian tax authorities have announced new regulations regarding billions of dollars worth of intra-company trade by transnational corporations.
“Under new rules, the Brazilian units of companies such as Bunge, Cargill, Louis Dreyfus, Glencore and Noble must value transactions with overseas units of the same company using international price benchmarks, said Sandro Serpa, a top enforcement official at Brazil’s Federal tax authority.
The measures are aimed at ending “price manipulation” of inter-company imports and exports that allow multi-national companies to evade local taxes, he said.”

Landmine talk
Human Rights Watch points out that while the US has condemned Syria’s use of landmines, America has yet to join the ban on the weapons.
“The United States is not a party to the 1997 Mine Ban Treaty, which comprehensively prohibits antipersonnel landmines and requires their clearance and assistance to victims. Yet the US already follows most of the treaty’s key provisions and has condemned new use of landmines by others. On March 14, US Ambassador Susan Rice and the State Department both described reports of Syria’s use of antipersonnel mines on its borders with Lebanon and Turkey as ‘horrific.’

Until the current policy review is completed, the 2004 Bush policy remains in place, permitting the US to use self-destructing, self-deactivating antipersonnel mines anywhere in the world. In accordance with this policy, the US no longer uses antipersonnel mines that do not self-destruct – sometimes called ‘persistent’ or ‘dumb’ mines – anywhere in the world, including in Korea.”

Indigenous IP rights
The Washington Post reports that a DC-based law firm has launched a “first-of-its-kind practice” that combines intellectual property and human rights.
“Spearheaded by founding director and veteran attorney Jorge Goldstein, who specializes in health sciences, the pro bono practice aims to use patent and copyright laws to help indigenous groups in developing countries protect and leverage their right to native or regional intellectual property — such as medicinal plants, artwork and designs — that often get co-opted, patented and sold by multinational corporations, including pharmaceutical companies.”

Intervention doctrine
Manuela Picq, most recently a visiting professor and research fellow at Amherst College, draws a direct line between today’s political ethics and the 15th Century Vatican doctrine of discovery that called for enslavement of non-Christians and occupation of their lands.
“The discourse that rationalised the colonisation of the Americas in the sake of Christianity is the same that justifies protecting human rights in Iraq or privatising water supplies for the sake of development.

Dominant cultures continue to intervene in the autonomy of indigenous peoples. This continuum is proof that the doctrine of intervention did not die with formal processes of decolonisation, adapting to new zeitgeists like a chameleon.
The practice of conquest, more diverse than often assumed, needs to be reconceived as a global political challenge that concerns us all rather than as a mere cultural concern discussed in indigenous forums. It is the international system that is at stake. Universalism cannot be exported, much less imposed. It is a collective practice.”

White guilt
The Center for Global Development’s Charles Kenny writes that people in wealthy countries hold views that “would make [Rudyard] Kipling proud” and are “positively harmful” to both rich and poor countries.
“A recent study in Britain suggested that the dominant image of developing countries remains ‘malnutrition and pot-bellied young children desperate for help with flies on their faces.’ Perhaps that’s not surprising when a survey by journalist Marlon Miller looking at ten years of Africa coverage by major U.S. print media found the most common topic of articles was conflict, corruption, and crime. Or when well-intentioned efforts to mobilize support for famine relief or bringing war criminals to justice in Africa tend to emphasize the worst of the continent and play up the role of outsiders.”

Resultism
The Overseas Development Institute’s Jonathan Glennie criticizes the “limited nature of development inquiry” that tends to focus on results and cost effectiveness to the virtual exclusion of other considerations.
“So while the Bank’s own evaluators (generally reckoned to be well-equipped and relatively independent) say that 59% of country assistance strategies are completed satisfactorily, the really interesting question is how many of those helped the country rather than hindered it. While Bank advice has helped some countries achieve development, there is no doubt it has done the opposite in others – the evidence is overwhelming. That makes the 59% number meaningless in terms of what it tells us about actual poverty reduction. But it fulfils the requirement of being a number, and will therefore be used in countless powerpoint presentations.”

IFI criticism
Inter Press Service reports on calls by NGOs for international financial institutions, such as the World Bank and International Monetary Fund, to practice what they preach when it comes to transparency and accountability, and to alter their traditional policy prescriptions which critics deem harmful to the world’s poor.
“Other groups, such as the Europe Corporate Observatory, raise similar complaints against the Bank and the IMF, for supporting free trade agreements (FTAs) with developing countries, which obviously damage local public health initiatives and food provision.
The most salient case is the European FTA with India, slated to come into force this year, which would force the Indian pharmaceutical industry to cease producing inexpensive generic medications to treat contagious diseases such as HIV/AIDS, which most of the developing world is dependent on as a cheap alternative to patented drugs.”

Latest Developments, March 29

In the latest news and analysis…

Migrant deaths
The Guardian reports that the lead investigator into the maritime deaths of dozens of African migrants has called Europe’s talk of human rights “meaningless.”
“Despite emergency calls being issued and the boat being located and identified by European coastguard officials, no rescue was ever attempted. All but nine of those on board died from thirst and starvation or in storms, including two babies.
The report’s author, Tineke Strik – echoing the words of Mevlüt Çavusoglu, president of the Council of Europe’s parliamentary assembly at the time of the incident – described the tragedy as ‘a dark day for Europe’, and told the Guardian it exposed the continent’s double standards in valuing human life.

The incident has become well known due to the harrowing accounts of the survivors, but the report makes clear that many similar ‘silent tragedies’ have occurred in recent years. Last year a record number of migrant deaths were recorded in the Mediterranean. ‘When you think about the media attention focused on the [Costa] Concordia and then compare it to the more than 1,500 migrant lives lost in the Mediterranean in 2011, the difference is striking,’ Strik said.”

Yemen drones
The Bureau of Investigative Journalism reports there has been a sharp increase in “covert US strikes against alleged militants” in Yemen since the start of the Arab Spring.
“At least 26 US military and CIA strikes involving cruise missiles, aircraft, drones or naval bombardments have taken place in the volatile Gulf nation to date, killing hundreds of alleged militants linked to the regional al Qaeda franchise. But at least 54 civilians have died too, the study found.

At least five US attacks – some involving multiple targets – have so far taken place in Yemen this month alone, in support of a government offensive to drive militants from key locations. In comparison, Pakistan’s tribal areas, the epicentre of the CIA’s controversial drone war, have seen just three US drone strikes in March.”

Sweden’s Saudi scandal
Agence France-Presse reports Sweden’s defence minister has resigned in the midst of controversy over a secret arms deal with Saudi Arabia.
“Earlier this month public broadcaster Swedish Radio said the Swedish Defence Research Agency (FOI) had secret plans since 2007 to help Saudi Arabia build a plant for the production of anti-tank weapons.
The radio said part of the so-called Project Simoom involved the creation of a shell company called SSTI to handle dealings with Saudi Arabia in order to avoid any direct links to FOI and the government.

Sweden has in the past sold weapons to Saudi Arabia, but classified government documents state that Project Simoom ‘pushes the boundaries of what is possible for a Swedish authority,’ the radio said when it broke the story on March 6.”

Apple/Foxconn promises
Reuters reports that Apple has promised to work with Foxconn to increase wages and improve working conditions in their Chinese factories.
“The moves came in response to one of the largest investigations ever conducted of a U.S. company’s operations abroad. Apple had agreed to the probe by the independent Fair Labour Association in response to a crescendo of criticism that its products were built on the backs of mistreated Chinese workers.

Apple, the world’s most valuable corporation, and Foxconn, China’s biggest private-sector employer and Apple’ main contract manufacturer, are so dominant in the global technology industry that their newly forged accord will likely have a substantial ripple effect across the sector.”

Patent objection
The Economic Times reports that the US has criticized India for greenlighting the manufacture of a generic version of a cancer drug for which Germany’s Bayer holds the patent.
“The compulsory licence would allow the company to make a generic, or copycat, version of the patented cancer drug bringing down prices by about 30 times. ‘[US Commerce Secretary John] Bryson said pharmaceuticals was a competitive area and heavy investments went into R&D every year. Any dilution of the international patent regime was a cause for deep concern for the US,’ the official said.
Defending the move, [Indian Commerce & Industry Minister Anand] Sharma said the compulsory licence strictly complied with the flexibility norms provided in the Trips (trade-related intellectual property rights) Agreement of the WTO since a large number of cancer patients died in the country every year as they could not afford treatment.”

Widening Kimberley
Reuters reports that the Kimberley Process is considering expanding the definition of “conflict” it uses in monitoring of the global diamond trade.
“ ‘What we would like to see is in essence that there be a clear agreed understanding amongst the membership that conflict is something more than only a rebel group seeking to overthrow a legitimate government,’ [Kimberley Process chairwoman Gillian Milovanovic] said.”

Madagascar anniversary
Le Monde marks the anniversary of “one of the most significant colonial massacres” which killed tens of thousands in Madagascar over the course of nearly two years.
“This Thursday, March 29, Malagasies commemorate the 65th anniversary of the start of the insurrection. Independent since June 26, 1960 – after 65 years of French colonization – the Red Island remembers a ‘pacification’ that consisted of torture, burned villages, summary executions and a French expeditionary force composed mainly of colonial troops. Some 18,000 soldiers landed in April 1947. Their numbers reached 30,000 in 1948. ” (Translated from the French.)

Extreme extractivism
Human rights lawyer Magdalena Gómez points to the recent deaths of anti-mining protesters as evidence of the excessive power transnational corporations have gained in Mexico.
“We have already heard the usual arguments that attribute the attacks to rifts in the community—and they do exist–but no one stops to analyze that these divisions are promoted by the alliances forged by the mining companies.
The truth is that, beyond the investigations required to arrest and prosecute the masterminds and perpetrators of these crimes, it’s urgent that we look into the devastating effects of the policy of granting mining concessions without regard to the territorial rights of the peoples.

Until the fallacy that transnational corporations are simply private actors is rejected and what has been called “the architecture of impunity” is deconstructed, peoples’ rights will be impossible to guarantee in the face of the reality of governments subjugated to transnational capital.” (Translated by the Center for International Policy’s Michael Kane)

Latest Developments, March 21

In the latest news and analysis…

White Savior Industrial Complex
Novelist Teju Cole argues that Americans should focus on reducing the negative impacts of their own government’s actions abroad before trying to “help” by intervening in Africa.
“Let us begin our activism right here: with the money-driven villainy at the heart of American foreign policy. To do this would be to give up the illusion that the sentimental need to ‘make a difference’ trumps all other considerations. What innocent heroes don’t always understand is that they play a useful role for people who have much more cynical motives. The White Savior Industrial Complex is a valve for releasing the unbearable pressures that build in a system built on pillage. We can participate in the economic destruction of Haiti over long years, but when the earthquake strikes it feels good to send $10 each to the rescue fund. I have no opposition, in principle, to such donations (I frequently make them myself), but we must do such things only with awareness of what else is involved. If we are going to interfere in the lives of others, a little due diligence is a minimum requirement.”

Silicosis suit
Reuters reports that “the biggest class action suit Africa has ever seen” is looming for South Africa’s gold mining companies as thousands of former miners with damaged lungs join a fast-growing list of plaintiffs.
“A successful suit could collectively cost mining companies such as AngloGold Ashanti, Gold Fields, Harmony and global giant AngloAmerican billions of dollars, according to legal and industry experts. The largest settlement to date by the mining industry in South Africa was $100 million in 2003 in a case brought by [Richard] Spoor against an asbestos company.

It’s hard to estimate the potential size of a silicosis class action. South Africa is the source of 40 percent of all the gold ever mined. At its height in the 1980s the industry employed 500,000 men – two-thirds of them from Lesotho, Mozambique and the Eastern Cape – although production has fallen behind China and Australia and employment since halved. But silicosis can take years to show up and check-ups are at best haphazard. A 2005 study by the National Institute of Occupational Health in Johannesburg, based on autopsies of miners, suggested 52 in every 100 had the disease.”

World Bank options
Reuters also reports Nigerian Finance Minister Ngozi Okonjo-Iweala and former Colombian Finance Minister Jose Antonio Ocampo are set to become candidates for the World Bank presidency but the US “is still likely to ensure that another American will succeed” outgoing president Robert Zoellick.
“All of the World Bank’s 187 members nations have committed to a merit-based process to select Zoellick’s successor.
Emerging and developing economies have long talked up their desire to break U.S. and European dominance of the Bretton Woods Institutions, but have until now have failed to build a coalition large enough to change the status quo.”

Limiting patents
Intellectual Property Watch reports that the US Supreme Court has ruled against the right to patent “an invention that merely applies known technology to natural phenomena.”
“The ruling is likely to a major impact on the medical and biotech industry. Many methods of medical diagnoses and medical treatment are now unpatentable. And the ruling may kill patents on human genes – including Myriad Genetics Inc.’s controversial patent on two breast cancer genes. The Federal Circuit (America’s so-called “patent court”) recently upheld Myriad’s patent, but that ruling is now in trouble, according to many experts.”

Suspect behaviour
The Guardian reports the story of a former FBI informant who says the agency’s efforts to prevent terrorist plots too often consisted of entrapment.
“In the case of the Newburgh Four – where four men were convicted for a fake terror attack on Jewish targets in the Bronx – a confidential informant offered $250,000, a free holiday and a car to one suspect for help with the attack.

Such actions have led Muslim civil rights groups to wonder if their communities are being unfairly targeted in a spying game that is rigged against them. Monteilh says that is exactly what happens. ‘The way the FBI conducts their operations, It is all about entrapment … I know the game, I know the dynamics of it. It’s such a joke, a real joke. There is no real hunt. It’s fixed,’ he said.”

Better but…
Human Rights Watch reports that labour conditions for migrant workers are improving at an Abu Dhabi mega-construction project that includes new branches of New York University, the Louvre and the Guggenheim, but problems remain.
“In addition, Human Rights Watch found that contractors are regularly confiscating worker passports and substituting worker contracts with less favorable ones when the workers arrive in the UAE. While the developers and institutions on Saadiyat have pledged to end these practices, and the scale of the problems Human Rights Watch documented is not as bad as in 2009, the continuation of poor practices in a number of cases reflects ongoing gaps in protection. The parties that benefit from these ventures need to make an unequivocal pledge to reimburse workers found to have paid recruitment fees in contravention of existing policies. The educational and cultural institutions and local developers also need to investigate and effectively enforce penalty provisions against contractors who disregard policies meant to protect workers from abuse.”

Lowering rents
The Centre for Economic and Policy Research’s Dean Baker takes issue with the argument that the prospect of enormous profits is necessary to drive innovation.
“The question is not whether we are better off with Steve Jobs getting very rich and all the products that Apple developed, or having Steve Jobs be poor and not having these products; the question is whether it was necessary for Jobs to get quite so rich in order to get these products.

Suppose we paid for the research and development of prescription drugs upfront rather than by giving drug companies patent monopolies. As a result of these monopolies, drugs that would sell for $5 per prescription in a free market sell for hundreds or even thousands of dollars. The savings from this switch could potentially save us more than $200bn a year and provide us with better health care.”

Latest Developments, March 4

In the latest news and analysis…

Sachs for president
Columbia University’s Jeffrey Sachs makes the case for why he should become the 12th consecutive American man to serve as president of the World Bank.
“In Latin America, Eastern Europe, Africa and Asia, I’ve been a trusted problem-solver for heads of state and impoverished villagers. My good fortune to see the world through the eyes of others, during 30 years working on some of the world’s most vexing problems, has helped me understand various regions’ challenges and the need for tailored solutions. There are reasons why what works well in the United States might not work in Nigeria, Ethiopia or India.”

Assessing Sachs
The Guardian explores Jeffrey Sachs’s CV in light of his declared desire to become World Bank president.
“But Sachs’s role in development hasn’t always been uncontentious. As a consultant in the late 1980s and early 1990s while an academic at Harvard, he advised Poland, then Russia, on their economic reforms. The strategy adopted by the Kremlin, under the tutelage of the IMF and the US treasury, involved a headlong dash towards privatisation and liberalisation that became known as ‘shock therapy’.
The consequences were disastrous, enriching a tiny coterie of oligarchs who bought up public assets on the cheap, and driving Russia towards defaulting on its debts.
However, Sachs now disowns the extreme policies for which many have since blamed him.”

Escalation concerns
In an interview with Al-Jazeera, the UN high commissioner for human rights, Navi Pillay, expresses her opposition to arming Syria’s rebels.
“ ‘Any kind of provision of military equipment to the opposition, in my view, will escalate the violence and not lead to the goal we are trying to achieve,’ Pillay explains.
‘I think that countries should be focusing their energy on achieving a peaceful resolution here, and to ensure that the root causes are addressed … and supplying arms to a few individuals is not going to help that situation … As I see it, it’s not the role of outsiders to arm one group or the other.’ ”

Polio protest
McClatchy Newspapers reports a group of American humanitarian NGOs is alleging the CIA’s use of a fake immunization scheme to locate Osama Bin Laden has set back the fight against polio in Pakistan, which had the highest number of cases in the world last year.
“ ‘The CIA’s use of the cover of humanitarian activity for this purpose casts doubt on the intentions and integrity of all humanitarian actors in Pakistan, thereby undermining the international humanitarian community’s efforts to eradicate polio, provide critical health services and extend life-saving assistance during times of crisis, like the floods seen in Pakistan over the last two years,’ the coalition of aid agencies, InterAction, wrote in its letter to CIA director David Petraeus.”

Affordable medicines on trial
Intellectual Property Watch reports on a case set to be heard by India’s Supreme Court later this month, which could have massive repercussions on global health.
“For access to medicine campaigners, Novartis’s legal action could threaten the availability of affordable medicines for the world’s poorest patients. For the pharmaceutical company, the protection of massive R&D investment and innovation is on the line.

‘What is at stake goes far beyond the only granting of a patent for this anticancer drug. This legal challenge aims in fact at weakening a legitimate and invaluable public health clause of the Indian law, Section 3(d), which intends to limit the multiplication of patents on trivial changes to existing medicines, a common practice by multinational pharmaceutical companies known as “evergreening”, ’ said Patrick Durisch, the health programme coordinator of the Berne Declaration.”

Poverty falling
The Economist reports on new World Bank figures suggesting poverty is “declining everywhere,” though primarily in China.
“If you exclude China, the numbers are less impressive. Of the roughly 1.3 billion people living on less than $1.25 a day in 2008, 1.1 billion of them were outside China. That number barely budged between 1981 and 2008, an outcome that Martin Ravallion, the director of the bank’s Development Research Group, calls ‘sobering’.”

The war over women’s health
The New York Times’ Nicholas Kristof lays out the process, which he describes as “bordering on state-sanctioned rape,” that women in Texas must now go through before having an abortion.
“Under a new law that took effect three weeks ago with the strong backing of Gov. Rick Perry, she first must typically endure an ultrasound probe inserted into her vagina. Then she listens to the audio thumping of the fetal heartbeat and watches the fetus on an ultrasound screen.
She must listen to a doctor explain the body parts and internal organs of the fetus as they’re shown on the monitor. She signs a document saying that she understands all this, and it is placed in her medical files. Finally, she goes home and must wait 24 hours before returning to get the abortion.”

Selling globalization
Monthly Review’s Michael Yates looks at how inequality and globalization fuel each other.
“Incomes do not just flow from poorer to richer households but from lesser to greater businesses (this latter phenomenon is part of what [Eric] Schutz calls “the business power structure”). Large firms, a small number of which dominate many markets, are best situated to expand globally, and as they do, they become more powerful economically and politically. This power permits them to increase the rate of exploitation of labor, again especially in the Global South, as they can both utilize modern labor process control techniques better than their smaller rivals and exert political pressure more effectively. Their growing and almost total control of mass media creates a modern propaganda system that shapes the culture in a thoroughly pro-capitalist manner, forging a climate in which it is difficult for people to escape being bombarded with the idea that there is no alternative to the terrible things that have been happening to them. Governments are increasingly seen as incapable of doing anything except getting out of the way of the capitalist juggernaut.”