US employers like Coca-Cola are implicated in Colombia's brutality.
The biggest brand name in for-profit education is floundering.
Thefts from other countries pale in relation to the looting of Russia, with
the indispensable assistance of the "Offshornaya Zona." The 1995 "loans for
shares" scheme transferred state ownership of privatized industries worth
billions of dollars to companies whose offshore registrations hid true owners.
More billions were stolen around the time of the August 1998 crash.
Insider banks knew about the coming devaluation and shipped billions in
assets as "loans" to offshore companies. The banks' statements show that their
loan portfolios grew after the date when they got loans from the Russian
Central Bank, which were supposed to stave off default. After the crash, it was
revealed that the top borrowers in all the big bankrupt banks were offshore.
For example, the five largest creditors of Rossiisky Credit were shell
companies registered in Nauru and in the Caribbean. As the debtors' ownerships
were secret, they could easily "disappear." Stuck with "uncollectable" loans
and "no assets," the banks announced their own bankruptcies. Swiss officials
are investigating leads that some of the $4.8 billion International Monetary
Fund tranche to Russia was moved by banks to accounts offshore before the 1998
The biggest current scam is being effected by a secretly owned Russian
company called Itera, which is using offshore shells in Curaçao and
elsewhere to gobble up the assets of Gazprom, the national gas company, which
is 38 percent owned by the government. Itera's owners are widely believed to be
Gazprom managers, their relatives and Viktor Chernomyrdin, former chairman of
Gazprom's board of directors and prime minister during much of the
privatization. Gazprom, which projected nearly $16 billion in revenues for
2000, uses Itera as its marketing agent and has been selling it gas fields at
cut-rate prices. Its 1999 annual report did not account for sales of 13 percent
of production. As its taxes supply a quarter of government revenues, this is a
devastating loss. Itera has a Florida office, which has been used to register
other Florida companies, making it a vehicle for investment in the US economy.
Unwilling to pay for a PCB cleanup, it argues that nature can do the job.
Industry has been doing all it can to keep an EPA report from being published.
This is not about profits and
patents; it's about poverty and a devastating disease." That
statement did not come from AIDS activists struggling to provide
sub-Saharan Africa's 25 million HIV-positive people with access to
life-extending medications. It came from the executive vice president
of Bristol-Myers Squibb, which recently announced it would slash
prices on its two AIDS drugs and forgo patents on one of them. A week
earlier, Merck & Co. said it would lower prices on its two AIDS
drugs not just in Africa but, pending review, in other heavily
affected countries as well.
What's going on is not a
change of heart on the part of "Big Pharma"--which John le
Carré describes in this issue as a group of
"multibillion-dollar multinational corporations that view the
exploitation of the world's sick and dying as a sacred duty to their
shareholders." Far from being a humanitarian action, the price
reductions represent an attempt to preserve patent rights by
diffusing international pressure for generic manufacturing.
Revealingly, neither BMS nor Merck has withdrawn from a suit against
the South African government brought by thirty-nine pharmaceuticals
seeking to prohibit importation of generic drugs, which they claim
would violate their patents.
The Indian generic
manufacturer Cipla announced in February that it would sell the
entire AIDS triple-therapy combination at $350 per person, per year,
and other generic manufacturers, in Thailand and Brazil, currently
offer AIDS drugs at a fraction of multinational prices. By
comparison, the Wall Street Journal reported that a
combination of AIDS drugs from BMS and Merck would cost between $865
and $965 per person, per year. If those prices were multiplied by the
number of AIDS patients in, say, Zimbabwe, a relatively prosperous
country by African standards, the total would come to about 20
percent of its GDP. And that sum doesn't include the investments in
healthcare infrastructure needed to distribute and monitor the drugs'
But even if poor African countries could somehow find
the money to pay the high patent-protected prices of the drug giants
(the $26.6 billion a year it would cost to provide all Africa with
AIDS drugs is no more than about a third of what Bush's tax plan
would give to America's wealthiest 1 percent), that would not be the
end of their problems. Rather, such a course would lock them into
exclusive trade agreements with multinationals and put them at the
continual mercy of Western foreign aid budgets. As new treatments are
developed, Africa would have to negotiate new price reductions,
country by country, company by company.
If the solutions
lie with generic manufacturing (not just for AIDS medications but for
a slew of vital drugs for malaria and other ills), then circumventing
existing international patent regulations is a necessity. The trial
in South Africa over compulsory licensing is one crucial test of the
viability of this option. Another potential plan would be for the
National Institutes of Health to give patents owned by the US
government on publicly funded AIDS drugs to the World Health
Organization, thereby licensing it to oversee generic manufacturing.
Why not, in fact, let governments underwrite the entire cost of drug
research--rather than, as now, underwriting substantial amounts of
the research, which drug companies then exploit--and do away with
Whatever the recourse, and despite the
well-publicized gestures by multinational pharmaceutical companies,
the solutions to Africa's AIDS epidemic lie in sustainable
competitive drug production, not momentary self-interested
The Bush Administration is relying on falsehoods when making its case for opening up Alaska to drilling.
For downsized workers in Bloomington, it's time to start thinking globally.
Greed led to miscalculation, which led to brownouts and soaring rates.
As soon as George W. Bush and Dick Cheney take up the reins of government, they'll give a big boost to waging war in and from space. Under their leadership, right-wing advocates of US global dominance and corporations eager for contracts will join forces with a military eager to make space the battleground of the twenty-first century.
Indeed, Star Wars--"missile defense" in current Newspeak--is emerging as a central goal of the new Bush Administration. It is "an essential part of our strategic system," declared Colin Powell upon being named Secretary of State.
"I wrote the Republican Party's foreign policy platform," claimed Bruce Jackson, vice president of corporate strategy and development at Lockheed Martin, the world's largest weapons manufacturer [see William D. Hartung and Michelle Ciarrocca, "Star Wars II," June 19, 2000], which is deeply involved in space military programs. In a recent interview, Jackson said that although he was "the overall chairman of the Foreign Policy Platform Committee" at the Republican convention, he hasn't led the advocacy for the full development of Star Wars because "that would be an implicit conflict of interest with my day job" at Lockheed Martin.
Such advocacy, he said, has fallen to Stephen Hadley, George W. Bush's pick for deputy director of the National Security Council. Hadley, Bush Senior's assistant secretary of defense for international security policy and a member of his National Security Council, is a proud member of the Vulcans, an eight-person foreign policy team formed during the Bush campaign that includes future National Security Council director Condoleezza Rice and Reagan Administration superhawk Richard Perle. The Vulcans named themselves after the Roman god of fire and metallurgy, and for a statue in Rice's hometown, Birmingham, Alabama, commemorating its steelmaking history.
Besides being a Vulcan, Hadley is a partner in Shea & Gardner, the Washington law firm representing Lockheed Martin. Hadley has also worked closely with Bruce Jackson on the Committee to Expand NATO--based in the offices of the right-wing American Enterprise Institute--Jackson as president, Hadley as secretary. The committee sought to enlist Eastern European countries in NATO--which would, of course, build the client base for Lockheed Martin weapons.
"Space is going to be important. It has a great future in the military," Hadley told the Air Force Association Convention in a September 11 speech. Introduced as an "adviser to Governor George W. Bush," Hadley said that Bush's "concern has been that the [Clinton] Administration...doesn't reflect a real commitment to missile defense.... This is an Administration that has delayed on that issue and is not moving as fast as he thinks we could."
To remedy that, Bush has named as Defense Secretary Donald Rumsfeld, whom the Washington Post calls the "leading proponent not only of national missile defenses, but also of U.S. efforts to take control of outer space" [see Michael T. Klare, page 14]. In 1998 Rumsfeld's commission reversed a 1995 finding by the nation's intelligence agencies that the country was not in imminent danger from ballistic missiles acquired by new powers, declaring that "rogue states" did pose such a threat. The answer? Missile defense. Trusted adviser to and financial supporter of the right-wing Center for Security Policy, Rumsfeld has been awarded its Keeper of the Flame prize. On the center's advisory board are such Star Wars promoters as Edward Teller--and Lockheed Martin executives, including Bruce Jackson.
"This so-called election was a victory for putting weapons in space, at enormous cost to world stability and to US taxpayers," declares Bruce Gagnon of the Global Network Against Weapons & Nuclear Power in Space (www.space4peace.org). He points to Bush campaign statements about deploying "quantum leap weapons" and about Los Alamos and Sandia National Laboratories playing a major role in the development of "weapons that will allow America to redefine how wars are fought." Both labs have been deeply involved in space-based lasers, an integral part of Star Wars. In 1998 the Defense Department signed a multimillion-dollar contract for a "Space-Based Laser Readiness Demonstrator" and this past November solicited final comments on development of the program, estimated to cost $20-$30 billion. Lockheed Martin, TRW and Boeing are the contractors. (Lynne Cheney has just resigned from the board of Lockheed Martin. Dick Cheney has been on the board of TRW.)
The military's would-be space warriors, meanwhile, are bullish. The US Space Command's top general, Ralph "Ed" Eberhart, exhorts the Air Force to "be the space warfighters our nation needs today...and will need even more tomorrow." The Air Force command's Almanac 2000 touts "defending America through the control and exploitation of space." The Air Force in the twenty-first century must be "globally dominant--Tomorrow's Air Force will likely dominate the air and space around the world."
The Vulcans, Keepers of the Flame and Lockheed Martin et al. will be cheering them on.