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Enron's power project in India demonstrates who benefits from globalization.

To the January ritual of reflecting on the old year and looking to the new, add the "top five" list of various 2001 nuclear events put together by the Nuclear Age Peace Foundation.

In a few weeks, East Timor will be able to celebrate both its independence as a country and its status as a democracy. Elections will have produced a government able to seek and receive international recognition. An undetermined number of Timorese, herded by the Indonesian Army into the western part of the island during the last spasms of cruelty before Jakarta formally abandoned its claim to the territory, will not be able to celebrate. And the entire process is gruesomely overshadowed by the murder of at least a quarter of a million Timorese during the illegal Indonesian occupation.

"I stand before you today as a citizen of a country that has had nothing but disaster, war, brutality and deprivation against its people for many years," Hamid Karzai, leader of the interim government in Afghanistan, told the conference of international donors in Tokyo. The representatives responded with pledges totaling more than $4.7 billion, over time spans ranging from a year to the next three to five years. That's a start, but much more will be needed--the United Nations estimates $15 billion over the next ten years--and we can only wait and see whether these promissory notes to a battered but resilient people will be redeemed in full.

The war, now winding down, that resulted in the ouster of the Taliban regime and the smashing of Al Qaeda bases in Afghanistan can be called a success in terms of the US-led coalition's initial goals, although Osama bin Laden and Mullah Omar have eluded capture. But the war's effects on the Afghan people have not begun to be dealt with, and US strategies and objectives in the fight against terrorism it claims to lead remain ambiguous.

The US bombing campaign was ferociously effective against Taliban and Al Qaeda fighters in the field, but was the civilian toll excessive? Official information is scanty, and independent investigations by human rights groups have not yet been made, but the question has to be asked: Was the utmost effort made to avoid civilian suffering, and was the cost in lives excessive in proportion to the goals of the war (see Howard Zinn on page 16)?

The tempest of high-tech ordnance loosed on the land drove thousands of Afghans from their homes, and many of them languish in refugee camps on the brink of starvation. The bombs halted humanitarian food deliveries, and only now are stockpiles being restored to normal levels. In the countryside and in cities like Kandahar and Jalalabad, deliveries of food, shelter and medicine are being stolen by resurgent warlords or armed gangs.

And then there is the deadly legacy of mines and unexploded bombs from years of warfare. According to a UN report, "Afghanistan is the most mine- and unexploded ordnance (UXO) affected country in the world." A massive cleanup effort is under way, but it will be months or years before roads and fields will be cleared for normal agriculture and commerce.

Much of Afghanistan's plight is the culmination of twenty years of war, three years of drought and the destructive policies of the Taliban's repressive theocracy. The cold statistics give a bare sketch of a nation in ruins: Life expectancy, forty-four years; one in four children dies before age 5; one in twelve women dies in childbirth; only 38 percent of boys and 3 percent of girls are in school; scarcely a quarter of the population has access to potable water and one in eight to sanitation; electricity consumption is about the lowest in the world; there are two telephones per 1,000 people (compared with twenty-four per 1,000 in Pakistan and sixty-eight per 1,000 in Uzbekistan).

The interim government desperately needs immediate infusions of cash to pay civil servants, who have gone unpaid for months, and to recruit more teachers and police. Kabul has only 100 trained policemen, and the rate of murder and theft is on the rise. Daily life in the capital has returned to a semblance of normality, but armed Northern Alliance fighters commit theft and extortion, while other cities and large stretches of the countryside are ruled by bandits and warlords. Some 700,000 fighters are at large.

Secretary of State Colin Powell has reiterated the US commitment to remain engaged with Afghanistan, but as UN envoy Lakhdar Brahimi's spokesman said in response to Powell's speech in Kabul, "Reassurance is good. Cash is better." Aid funds pledged must be delivered quickly; beyond that, a rich country like America should be providing leadership in the financial arena. A dependable flow of money and technical assistance must last for the next decade.

The mission of the US military in Afghanistan should expand to include shoring up the frail Karzai government, helping it to restore security, to provide for the welfare of the people and to enlist the support of the fractious ethnic groups for the Loya Jirga to convene in June to set up a provisional government. Largely at US behest, the role of the international security force has been confined to Kabul. But if the interim government and its successor are to extend their writ over the entire country, they'll need a strong army and a police force. In this effort the international security force will be an essential player, and the United States should give it robust support.

The work in Afghanistan won't be finished until the international community is fully engaged in helping Afghanistan build a government that can provide the security the people crave. Immediate steps that need to be taken include integrating idle armed fighters into a national army and disarming and providing work for the rest of the 700,000 armed men who have no jobs and who are rapidly becoming part of the security problem. (And jobs must be created for millions of newly liberated women.) The country is awash in guns, and the UN Development Program has launched a campaign to reduce their number. The United States could help by supplying money to buy these weapons and even to bribe warlords and would-be drug lords into supporting the government.

Of course, the flow of aid money must be monitored to avoid corrupt diversions. And as Barnett Rubin of the Center on International Cooperation has recently pointed out, competition among international donor groups should be curbed; money should be channeled through representatives of the Afghan people so that it does not become, as Rubin writes, "simply a new political currency to be fought over by warlords, who will play one aid agency against another and all of them against the central government."

Achieving stability--preventing Afghanistan from reverting to anarchy, violence, terrorism and drug running--must be the top priority of the US government. The war in Afghanistan should not be adopted as a template for future military actions elsewhere, as the right-wing warriors in Rumsfeld's Defense Department contemplate. The conditions that brought military success in Afghanistan cannot be replicated in countries like Iraq, Somalia, Indonesia or the Philippines. Nor should they be. And rather than base-building in neighboring countries--where US support for dictators could breed even more anti-American resentment--Washington should focus on nation-building in Afghanistan.

For the terrorist threat must not be considered solely a military problem. The "enemy" is too scattered, too amorphous. The struggle against terrorism must become a cooperative global intelligence and law-enforcement campaign, with a strong UN presence. Rather than being a pretext for an expensive military buildup that wastes funds better spent on social welfare, this campaign should incorporate international economic development efforts aimed at killing the roots of terrorism--poverty and alienation. It must also include diplomatic outreach that rises above realpolitik and economic interest to oppose obsolete oligarchies and support democratic movements worldwide. And Washington must work through international bodies so that legitimate self-defense is not seen as a US war on the Arab world.

The Bush Administration's policies have been less than heartening thus far. Despite a few humanitarian commitments of hard cash, this Administration is congenitally skewed toward nationalism and unilateralism. Its inclination is to withdraw into fortress America, the latest example being the cruel treatment of the Al Qaeda prisoners now caged at Guantánamo naval base, which has set off a furor abroad and further alienates the Arab world. The Pentagon categorizes them as "unlawful combatants" so they can be sequestered, interrogated and possibly tried before military tribunals. According to the Third Geneva Convention, if there is a dispute about soldiers' prisoner-of-war status, a "competent tribunal" should determine it.

America's most effective weapon in the fight against terrorism is our democratic and juridical ideals. Our foreign policy should, above all, be grounded in those ideals and be a bedrock for human rights.

What if we could see the Afghan dead as we've seen the September 11 victims?

The first thing they do is cover your eyes. They make you strip to make sure you're not carrying anything. They replace your clothes with uniforms that are not clothes at all.

When George W. Bush was first running for governor of Texas, Washington editor David Corn took a look at Bush family activities on behalf of Enron in Argentina--itself now suffering the results of untamed financial markets. We reprint this November 21, 1994, article to show how Enron's connections with the Bushes stretch not just to Washington but around the world.
         --The Editors

Several years ago, says Rodolfo Terragno, a former Argentine Cabinet Minister, he received a telephone call from George W. Bush, son of the then-Vice President. When he hung up, Terragno was annoyed, he recalls, for the younger Bush had tried to exploit his family name to pressure Terragno to award a contract worth hundreds of millions of dollars to Enron, an American firm close to the Bush clan.

During this past year, as George W. campaigned across Texas to replace Governor Ann Richards, he portrayed himself as a successful businessman who relied on "individual initiative," not his lineage. Contacted in Buenos Aires, Terragno, now a member of the Chamber of Deputies, offered an account that challenges Bush's campaign image.

In 1988, Terragno was the Minister of Public Works and Services in the government of President Raúl Alfonsín. He oversaw large industrial projects, and his government was considering construction of a pipeline to stretch across Argentina and transport natural gas to Chile. Several US firms were interested, including the Houston-based Enron, the largest natural gas pipeline company in the United States. But Terragno was upset with the corporation's representatives in Argentina. They were pressing Terragno for a deal in which the state-owned gas company would sell Enron natural gas at an extremely low price, and, he recalls, they pitched their project with a half-page proposal--one so insubstantial that Terragno couldn't take it seriously. Terragno let the Enron agents know he was not happy with them.

It was then, Terragno says, that he received the unexpected call from George W. Bush, who introduced himself as the son of the Vice President. (The elder Bush was then campaigning for the presidency.) George W., Terragno maintains, told the minister that he was keen to have Argentina proceed with the pipeline, especially if it signed Enron for the deal. "He tried to exert some influence to get that project for Enron," Terragno asserts. "He assumed that the fact he was the son of the [future] President would exert influence.... I felt pressured. It was not proper for him to make that kind of call."

George W. did not detail his relationship with the pipeline project or with Enron, according to Terragno. The Argentine did not know that Enron and the Bush set are cozy. President Bush is an old friend of Kenneth Lay, Enron head for the past ten years and a major fundraiser for President Bush. After the 1992 election left Secretary of State (and Bush pal) James Baker jobless, he signed as a consultant for Enron. An article by Seymour Hersh in The New Yorker last year disclosed that Neil Bush, another presidential son (the one cited by federal regulators for conflict-of-interest violations regarding a failed savings and loan), had attempted to do business with Enron in Kuwait. The Enron company and the family of its top officers have donated at least $100,000 to George W. Bush's gubernatorial campaign.

Shortly after Terragno's conversation with George W., more Bush-related pressure descended on him, the former minister claims. Terragno says he was paid a visit by the US Ambassador to Argentina, Theodore Gildred. A wealthy California developer appointed ambassador by President Reagan, Gildred was always pushing Terragno to do business with US companies. This occasion, Terragno notes, was slightly different, for Gildred cited George W. Bush's support for the Enron project as one reason Terragno should back it. "It was a subtle, vague message," Terragno says, "that [doing what George W. Bush wanted] could help us with our relationship to the United States."

Terragno did not OK the project, and the Alfonsín administration came to an end in 1989. Enron was luckier with the next one. The pipeline was approved by the administration of President Carlos Saúl Menem, leader of the Peronist Party and a friend of President Bush. (The day after Menem was inaugurated, Neil Bush played a highly publicized game of tennis in Buenos Aires with Menem.) Argentine legislators complained that Menem cleared the pipeline project for development before economic feasibility studies were prepared.

Replying to a list of questions from The Nation asking whether George W. Bush spoke to Terragno about the pipeline project and whether he had any business relationship with Enron, Bush's gubernatorial campaign issued a terse statement: "The answer to your questions are no and none. Your questions are apparently addressed to the wrong person." This blanket denial covered one question that inquired if George W. Bush had ever discussed any oil or natural gas projects with any Argentine official. George W.'s response on this point is contradicted by a 1989 article in the Argentine newspaper La Nacion that reported he met that year with Terragno to discuss oil investments. (The newspaper noted that this meeting took place in Argentina, but Terragno says he saw Bush in Texas.)

Theodore Gildred, a private developer again, is traveling in Argentina; his office says he is unavailable. An Enron spokesperson comments, "Enron has not had any business dealings with George W. Bush, and we don't have any knowledge that he was involved in a pipeline project in Argentina."

In late August, several members of the Chamber of Deputies--Terragno not among them--submitted a request for information, calling on President Menem to answer dozens of questions about the business activities of the Bush family in Argentina. (In 1987, Neil Bush created a subsidiary of his oil company to conduct business there. In early August, a Buenos Aires newspaper reported that on a forthcoming trip to Argentina the former President would lobby the Menem government to allow a US company to build a casino there. The onetime President said this was not true.) One of the deputies' queries was, Does Menem know whether George W. Bush attempted to capitalize in Argentina on his father's position? So far Menem has not responded.

One of the old school of the British colonial service, a man with the irresistible name of Sir Penderel Moon, wrote a book about the end of empire and titled it Divide and Quit. At whose expense was this extremely dry joke? Look around the global scene today, and you will find the landscape pitted with the shards of that very policy.

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