Classism and Racism: Similarties in Britain and the United States

The two nation-states of Britain and the United States are apples from the same tree and share the same social ills concerning classism and racism. Of course, these ills stem from the same shared history before and after the separation caused by the War of Independence, which created the United States. The three main categories which cause racism and classism in both states have origins in capitalism, Christianity and the trans-Atlantic slave trade. The only difference between the two states is a geographical growth factor, caused by the two great European wars, which debilitated European economics during a period when the geographically isolated United States economy was growing by leaps and bounds.

Classism and Capitalism:

The consolidation of wealth, caused by the historical distribution of wealth and the expansion of capitalism, in both states has produced a sharp economic caste in both. In Britain, the wealth gap that creates classism can be seen in the 1994 total wealth distribution as “the least wealthy 87 percent hold only 37 percent of the total, while the least wealthy 96 percent hold on 57 percent of the total” [1]. If we do some quick math, we see that the wealthiest 4 percent hold 43 percent of the total wealth in the British state. The same distinction can be noted in the 2010 U.S. wealth distribution as “the top 1% of households (the upper class) owned 35.4% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 53.5%, which means that just 20% of the people owned a remarkable 89%, leaving only 11% of the wealth for the bottom 80% (wage and salary workers)” [2].

Developed wealth gaps shared in these two states have developed through a long term consolidation process established through centuries of colonialism, foreign and domestic capitalist exploitation, slavery, and now globalization.

Slavery and Religion:

Just as Britain and the United States share the same economic results, similar historical colonial exploitation patterns, similar economic system structures, the wealth gaps evident in both states also have been impacted by religion, specifically the Judeo-Christian elements, and slavery. Both states still suffer from racism, which stems out of the trans-Atlantic slave trade, the importation of African slaves, and the reproduction of domestic slaves after the trans-Atlantic slave trade was abolished by the U.S after 1800 in order to economically damage Britain.

What were the origins of the Trans-Atlantic slave trade? Many people do not realize that the trans-Atlantic slave trade did not originally begin as a race-based enslavement. The Holy Roman Empire and more specifically the Catholic Church started the trans-Atlantic slave trade with Papal Bull Dum Diversas issued by Pope Nicolas V which provided Portugal with a monopoly on the West coast of Africa to enslave all non-Christian heathens in order to provide labor to the Spanish colonies in the Caribbean. Once Britain detached itself from the Holy Roman Empire, more specifically the catholic Church, and had elevated itself to the dominate naval force on the seas as the leading expansionist state in the world, the British had no choice but to continue the economically profitable trans-Atlantic slave trade in human labor to maximize the value of their colonies. As the lucrative value of the North American colonies grew in volume, the British North American colonies became the destination of a higher volume of African slaves.

After the independence and the birth of the United States, which was already reliant on the British economic system of slavery, was created, American Christians began struggling with a moral dilemma of enslaving fellow Christians (as many imported or domestic born African slaves had adopted Christianity either by choice or by force). It was at this point, approximately around the time when trans-Atlantic shipments of Africans were banned in the United States and slaves were reproduced domestically (and born on American soil), that domestic American slavery shifted to race based slavery which could be justified by Christian slave owners through the twisting of biblical passages (such as the curse on Moses’ son Ham). Even after the so-called emancipation, a century of racial segregation followed.

Britain and the United States suffer from the same ills of racism and classism because they share a joint history, similarities in historical international colonial and trans-Atlantic human exploitation, identical economic and government structures (representative democracy – the most easily manipulated form of democracy), and are now joint members in globalization. Oranges do not grow from apple trees.

1. Banks, Dilnot & Low, The Distribution of Wealth in the UK, Institute for Fiscal Studies, September 1994, http://www.ifs.org.uk/comms/comm45.pdf

2. Domhoff, William, Wealth, Income, and Power, University of California at Santa Cruz, February, 2013, http://www2.ucsc.edu/whorulesamerica/power/wealth.html

Jamaica: Debt to GDP Ratio and Reform - By Any Means Necessary

            The nation-state of Jamaica is a state, classified as a developing country only fifty years out of colonialism, on the brink of complete failure.  The peril of this failure stems from a paralyzing debt to Gross Domestic Product (GDP) ratio, high levels of domestic unemployment reflecting low educational, vocational and technical levels within the domestic workforce to take advantage of foreign invested capital, and domestic instability due to excessive violent crime, corruption and drugs.  Currently Jamaica attributes 55% of the national budget toward debt with “25% spent on public sector wages, this leaves just 20% for roads, schools, hospitals and other ‘critical services’”[1]  Indications of the worsening situation were the recent downgrading of Jamaica’s credit rating “from B- to C” and warning signs that if another IMF deal was not reached that “Jamaica was likely to face ‘rising financing pressures and increased risks for macroeconomic stability’”[2]  The state of Jamaica must initiate stringent domestic reforms to increase growth, develop stability, and improve GDP to debt ratio.

            Jamaican debt to GDP ratio approximately stands at a “current level of over 140 percent of GDP” and Jamaica has been forced to seek another “Extended Credit Facility agreement with the IMF [3].  In order to acquire IMF support, Jamaica will be required to initiate several domestic reforms such as “eliminating discretionary tax waivers, along with securing a contract with public sector workers to achieve a wage-to-GDP ratio of 9 percent by 2015/2016”[4].  In addition to addressing debt issues, Jamaica is currently in the process of instituting a second domestic debt exchange program which aims to “reduce Jamaica’s debt-to-GDP ratio from 140 percent of GDP to 95 percent over the next five years”[5].  The proposed debt exchange, the “country’s second in three years”, is considered “a critical component of both the IMF agreement” that would seek “domestic holders of $860bn worth of high interest government bonds to swap them for lower interest options”[6].

            A possible positive contribution to decreasing debt to GDP ratio is the planning of the “proposed Global Logistics Hub initiative” which could “transform Jamaica into the fourth node or pillar in the global supply and logistics chain alongside Singapore, Dubai and Rotterdam”[7].  Establishing a Jamaican logistics hub would lower unemployment levels through the “training of human capital to fuel the needs of the hub” as “thousands of jobs are expected to be created in areas such as, mechatronics integration of marine engineering, (mechanical, electrical and informatics), various ship board professions such as electromechanical engineering, port operations management, heavy duty equipment operations, logistics and supply chain management” [8].  Jamaica must find economic ways of training the domestic population instead of allowing the importation of trained laborers with specialized technical skills.

            The most destabilizing factors in Jamaica are violent crime, drugs and gang activities, which often derail further capital investment by foreign corporations, and if not addressed by more stringent government methods will eventually infiltrate and debilitate the promising aspect of the Global Logistics Hub in improving debt to GDP ratio, should the hub become reality.  Jamaica currently holds one of the top murder rates in the world, which recorded “1,087 deaths last year – well down from its 2009 peak of 1,683” initiated by “poverty, gang violence and the ubiquity of guns” [9].  In order to stabilize the state, the government of Jamaica must initiate sharp reforms in the creation of gang and drug task forces, the acquisition of police technology, and the building of larger prison systems to remove the elements of community that hinder advancement for the collective population and state.  At the same time, the state must establish programs to raise poverty levels and provide technical skills in order to transform members of the inner city population into productive workers and contributors of Jamaican society.

            To alleviate a national debt that prevents development, inner-city poverty which breeds criminal activity and violence, and high unemployment stemming from a population suffering from a lack of technical vocations and available opportunities, the State of Jamaica must implement staunch domestic reforms to eliminate wasteful government spending and corruption, stabilize inner-city violence, and to provide technical training and education to create a stronger domestic work force which will keep earned capital inside Jamaica.  Under no circumstance, or international liberal complaints, should Jamaica and the Jamaican people allow the Global Logistics Hub proposal to be lost, nor allow gangs, drugs and violence to engulf the hub once it is established.  An implementation of stronger domestic reforms, enforced in the same manner of colonialism if required, is a case of long-term necessity for Jamaica and the Jamaican people.  For the state and people of Jamaica, the options are either state reform ‘by any means necessary’ or further state regression and failure.

Notes

1.  Nick Mann, “Jamaica bids to lower debt costs to secure IMF loan,” Public Finance International, February 13, 2013, http://www.publicfinanceinternational.org/news/2013/02/jamaica-bids-to-lower-debt-costs-to-secure-imf-loan/

2. Nick Mann, “Jamaica bids to lower debt costs to secure IMF loan,” Public Finance International, February 13, 2013, http://www.publicfinanceinternational.org/news/2013/02/jamaica-bids-to-lower-debt-costs-to-secure-imf-loan/

3. Caribbean Journal, “Jamaica “Finalizing” IMF Agreement, Plans Debt Exchange Offer,” February 11, 2013, http://www.caribjournal.com/2013/02/11/jamaica-finalizing-imf-agreement-plans-debt-exchange-offer/

4. Caribbean Journal, “Jamaica “Finalizing” IMF Agreement, Plans Debt Exchange Offer,” February 11, 2013, http://www.caribjournal.com/2013/02/11/jamaica-finalizing-imf-agreement-plans-debt-exchange-offer/

5. Caribbean Journal, “Jamaica “Finalizing” IMF Agreement, Plans Debt Exchange Offer,” February 11, 2013, http://www.caribjournal.com/2013/02/11/jamaica-finalizing-imf-agreement-plans-debt-exchange-offer/

6. Nick Mann, “Jamaica bids to lower debt costs to secure IMF loan,” Public Finance International, February 13, 2013, http://www.publicfinanceinternational.org/news/2013/02/jamaica-bids-to-lower-debt-costs-to-secure-imf-loan/

7. Maritime Executive, “World Bank Offers to Aid Jamaica's Logistics Hub Plans,” March 5, 2013, http://www.maritime-executive.com/article/World-Bank-Offers-to-Aid-Jamaicas-Logistics-Hub-Plans/

8. Maritime Executive, “World Bank Offers to Aid Jamaica's Logistics Hub Plans,” March 5, 2013, http://www.maritime-executive.com/article/World-Bank-Offers-to-Aid-Jamaicas-Logistics-Hub-Plans/

9.  Ross Sheil, “Imani Green murder: how violence plagues Jamaica,” The Guardian, January 13, 2013, http://www.guardian.co.uk/world/2013/jan/13/imani-green-murder-violence-jamaica

Simulation: World Bank at International HIV/AIDS Conference

I recently participated in a simulation of a world conference in HIV/AIDS.  Each of the simulation participants selected a nation-state, international government organization, or non-government organization to represent in the conference.  Participants were required to maintain their simulation role throughout the conference.  I selected the World Bank, in an attempt to illustrate to other participants how that organization works.  The following is my opening statement, plan proposal and final vote:

Opening Statement to the Conference:

This evening, before the nation-states of the global stage, our leading private sector partners, esteemed representatives from leading non-governmental and international governmental organizations, the entire world comes together as one village to address one of the most ominous threats to ever face humanity. That threat is the disease of HIV/AIDS, which stands for an “'acquired immunodeficiency syndrome' and is a surveillance definition based on signs, symptoms, infections, and cancers associated with the deficiency of the immune system that stems from infection with HIV”. [1]

Over 34 million people around the globe are now living with the disease of HIV/AIDs, and even more disturbing is the fact that a high percentage of those infected live in developing countries. While the international community has made great strides toward achieving United Nations Millennium Goal number 6, the world has witnessed 2.5 million new cases of HIV in 2011. Alarmingly, 69 percent of the total new HIV/AIDS infections that occurred in 2011 were in Sub-Saharan Africa, the most HIV/AIDS affected region in the world today [2]. Behind Sub-Saharan Africa, the Caribbean is the second most HIV/AIDS affected region in the world [3]. The fact that we have state leaders from both of these regions of the world in attendance tonight shows the resolve and dedication of those governments to battle the decimating epidemic of HIV/AIDS, and the World Bank applauds them (pause for applause).

In the past decade, the international community has made great strides in combating the HIV/AIDS epidemic around the globe. In 2011, the world saw a 24 percent decrease in HIV/AIDS related deaths compared to 2005, a statistical decrease that equals more than a half million fewer deaths around the globe (pause for applause) [4]. The World Bank takes extreme pride in being a leading organization in combating the disease of HIV/AIDS.

In the first decade of the 21st century, the World Bank, a proud co-sponsor of the United Nations Programme on HIV/AIDS, and its partners has led the global battle against the epidemic of HIV/AIDS. In India, the national AIDS program supported by the World Bank has prevented an estimated 3.5 million infections from a previously projected 5.5 million infections (pause for applause). In West Africa’s transport corridor, sexually transmitted infections have decreased by 22 percent through World Bank supported prevention programs (pause for applause). In Rwanda, programs supported by the World Bank have increased overall health service utilization by 76 percent (pause for applause). The World Bank is proud to have provided over 68 million people around the globe with basic packages of health, nutrition, or population services, and to have provided 55 million pregnant women with antenatal care, to have provided antiretroviral therapies to 1.5 million adults and children with HIV, to have trained 2.2 million health personnel to improve the quality of health services in developing countries, and to have distributed 813 million condoms for the prevention of HIV, sexually transmitted diseases, and unwanted pregnancies (pause for applause) [5].

In spite of all the positive advancements that the international community has achieved over the past decade, there were 34 million people in 2012 living in the world with HIV/AIDS compared to 29.4 million in 2001. Between the timeframe of 2005 and 2011, while geographical areas such as the Caribbean saw declines in AIDS related deaths, which as the second highest AIDS affected region on Earth should see decreases, the international community has witnessed disturbing increases in Eastern Europe and Central Asia, with a twenty-one percent increase in AIDS related deaths, and the Middle East and North Africa, with a seventeen percent increase in AIDS related deaths [6].

The world is capable of doing more to combat this disease, and as a global society MUST do more to combat this epidemic. Tonight, before the international community, the World Bank declares its responsibility and dedication in increasing efforts for combating the global spread of HIV/AIDS. The World Bank is prepared to enhance long-term financial and specialized technical support and knowledge to the countries of the world for effective prevention of new HIV infections, care and treatment for people living with HIV/AIDS, and alleviation of social and economic consequences for affected communities [7].

In the following days, the World Bank looks forward to meeting with world leaders, along with the leading International Government Organizations, Non-Government Organizations dedicated to combating HIV/AIDS, and our private sector partners in order to propose fresh global and regional programs for reducing the spread of HIV/AIDS around the globe and assisting the United Nations and the international community in achieving the goals set forth within the United Nations Millennium Goal number 6 by the year 2015.

Thank you very much. Good night.

1. Joint United Nations Programme On HIV/AIDS. Fast Facts about HIV, 2008. Accessed on March 19, 2013 from http://www.unaids.org/en/media/unaids/contentassets/dataimport/pub/factsheet/2008/20080519_fastfacts_hiv_en.pdf
2. World Bank. Overview: HIV/AIDS, 2012. Accessed on March 19, 2013 from http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTHEALTHNUTRITIONANDPOPULATION/EXTHIVAIDS/0,,contentMDK:21546262~menuPK:376479~pagePK:210058~piPK:210062~theSitePK:376471,00.html
3. Joint United Nations Programme On HIV/AIDS. Global Fact Sheet, World AIDS Day 2012. Accessed on March 19. 2013 from http://www.unaids.org/en/media/unaids/contentassets/documents/epidemiology/2012/gr2012/20121120_FactSheet_Global_en.pdf
4. Joint United Nations Programme On HIV/AIDS. Global Fact Sheet, World AIDS Day 2012. Accessed on March 19. 2013 from http://www.unaids.org/en/media/unaids/contentassets/documents/epidemiology/2012/gr2012/20121120_FactSheet_Global_en.pdf
5. World Bank. Overview: HIV/AIDS, 2012. Accessed on March 19, 2013 from http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTHEALTHNUTRITIONANDPOPULATION/EXTHIVAIDS/0,,contentMDK:21546262~menuPK:376479~pagePK:210058~piPK:210062~theSitePK:376471,00.html
6. Joint United Nations Programme On HIV/AIDS. Global Fact Sheet, World AIDS Day 2012. Accessed on March 19. 2013 from http://www.unaids.org/en/media/unaids/contentassets/documents/epidemiology/2012/gr2012/20121120_FactSheet_Global_en.pdf
7. World Bank. Overview: HIV/AIDS, 2012. Accessed on March 19, 2013 from http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTHEALTHNUTRITIONANDPOPULATION/EXTHIVAIDS/0,,contentMDK:21546262~menuPK:376479~pagePK:210058~piPK:210062~theSitePK:376471,00.html

Response to Representative of Pfizer:

Representative of Pfizer,

Since our 2010 announced partnership for the initiative to help improve healthcare delivery in developing countries, the World Bank considers it an honor to work with your organization.  We look forward to much progress being achieved during this conference and against the disease of HIV/AIDS in the years to come.  The World Bank proposal that is scheduled for this evening will certainly rely heavily on the leading technological edge of the world medical field of Pfizer to supply the developing states in attendance who are re-dedicating their battle against the current epidemic of HIV/AIDS.

Sincerely,
World Bank

World Bank and Pfizer Announce Initiative to Help Improve Healthcare Delivery in Developing Countries.  World Bank/Pfizer press release, 2010.  Accessed on March 21, 2013 from http://www.pfizer.com/files/news/press_releases/2010/pfizer_world_bank_042310.pdf

World Bank Conference Proposal:

Good Evening.

Tonight the World Bank calls on the international community of the globe, along with the leading international governmental organizations and non-government organizations, with the support of the global private sector leaders in the specialized technological and medical fields, to increase collective and individual efforts in combating the world-wide epidemic of AIDS/HIV. This evening, the World Bank has reviewed the proposals of each nation-state in attendance, and the World Bank wishes to commend the nations of the world in their dedication to humanity. In response to your proposals for combating and preventing the HIV/AIDS epidemic, the World Bank is prepared to commit to a reinvigorated effort toward reaching United Nations Millennium Goal number 6 by the year 2015, or after the deadline should the goal require longer than the original timeframe.

For nation-states in attendance of the conference, the World Bank offers its assistance in preventing and combating the disease of HIV/AIDS within your nation-state borders. For developing countries in attendance, the World Bank is prepared to initiate domestic programs based on long-term and short-term credit ratings in order to finance the purchase of the most advanced technological medical machinery, cutting edge medicines and vaccines, the top vocational training in health fields, and the most proven methods in preventive education. In order to develop these humanitarian bi-lateral programs, negotiations between the World Bank and the individual member state must be initiated and the World Bank enthusiastically invites this initiative. For member states still considered in ‘developing’ status, the World Bank is eager to directly assist and establish a program aimed to prevent and repel the spread of HIV/AIDS. For ‘non-developing’ state members, the World Bank and the World Bank Group are prepared to assist in establishing a domestic program in addressing this most important and urgent area of human concern.

All economic programs developed between the World Bank and member states in combating HIV/AIDS on a national-domestic level will be conditionally based on the World Bank’s partnership with Pfizer, a private sector leader in medical research around the globe. All World Bank funding acquired by member states in addressing the issues of HIV/AIDS will be required to be utilized through planned purchasing from Pfizer, a proud partner to the World Bank in endeavors in humanitarian efforts.

In addition to what the World Bank is offering each individual nation-state in their efforts, the World Bank proposes that each member-state of the World Bank agree to contribute $50 million (US) Dollars a year to the United Nations Programme on HIV/AIDS (UNAIDS) over the next ten years for collective consolidation and disbursement in HIV/AIDS prevention. World Bank Members at the conference tonight are: The People’s Republic of China, Japan, India, Thailand, Malaysia, Vietnam, Myanmar, The Philippines, Cambodia, Indonesia, and Pakistan.

While it is understandable that each nation-state requires its own security, and domestic and foreign interests, as paramount, the issues of the AIDS/HIV epidemic impacting the globe requires a collective humanitarian effort and economic sacrifice.

In closing, the World Bank applauds the members of the conference in their efforts towards meeting United Nations Millennium Goal number 6. Today is the first day toward a reinvigorated human effort.

World Bank. About World Bank – Member Countries, 2012. Accessed on March 21, 2013 from http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:22427666~menuPK:8336899~pagePK:51123644~piPK:329829~theSitePK:29708,00.html
World Bank and Pfizer Announce Initiative to Help Improve Healthcare Delivery in Developing Countries. World Bank/Pfizer press release, 2010. Accessed on March 21, 2013 from http://www.pfizer.com/files/news/press_releases/2010/pfizer_world_bank_042310.pdf

Response to Representative of Pfizer:

Representative of Pfizer,

When the World Bank recommends that their member states donate $50 million dollars a year for ten years, this plan of action is not simply aimed at the members in attendance at this conference. It is aimed toward every active member of the World Bank, a total number of 188 nation-state members.

World Bank Closing Conference Vote and Closing Statement:

The World Bank appreciates being allowed to participate in this historic conference which has displayed the strength of collective national collaboration and the possibilities of addressing the global issue of HIV/AIDS. The World Bank views most of the proposals that were unveiled at the conference as very positive possible steps, and would especially like to support the following proposals:

- Enhanced dissemination of education on the disease of HIV/AIDS, the spread of HIV/AIDS, and the available methods of prevention.

- The establishment, or reinforcement, of national task forces and domestic laws aimed at the sex and drug trades. Concerning the sex industry: statistics show that human trafficking is a very serious issue globally, and that the sex industries in nations such as Thailand, Philippines and Japan contribute to the spread of HIV/AIDS. On the other hand, these nation-states do not see the amount of sexual assaults, rapes, or crimes against children as nations such as the United States and Britain, where prostitution occurs illegally and is often assailed by law enforcement officers, and the question of crime rate correlation should be contemplated by domestic governments. The World Bank supports all efforts for national task forces created against international and domestic illegal drug trades, especially as needle injected drugs contribute to the spread of HIV/AIDS. As an alternate for nation-states facing several problems in these areas, the World Bank recommends increasing the availability and dissemination of condoms and sterile needles in order to slow the spread of HIV/AIDS and other diseases associated with sexual activity and illegal drug usage.

- The availability for free or cost efficient HIV testing for populations of all economic classes within a nation. The question left unanswered by the representative of Japan, which will actually be required to be answered by each individual government to establish such a program, is how insurance companies unaffiliated to the conference will support such an initiative or whether the establishing government will be forced to burden the fiscal costs. In addition, the question of anonymous testing leaves the issue of possible continued spread of the disease, in some cases maliciously, by infected citizens not required to register as an infection citizen. The World Bank supports testing, but would seek an amendment requiring the registration of infected citizens to host government agencies.

- The hosting of regional conferences on HIV/AIDS, as proposed by Vietnam in their proposal for a summit of Southeastern Asian states, is strongly supported by the World Bank as a proactive way to continue communications, method sharing, and collaborated efforts.

- Further research on the disease of HIV/AIDS. As mentioned by the representative of Pakistan, research efforts on the disease of HIV/AIDS should be a top priority internationally and domestically. The World Bank agrees with Pakistan that prevention is the top defense position, while technological research of the disease of HIV/AIDS and new medical treatment options should be pursued.

The World Bank opposes the following proposal areas:

- The involvement of religious organizations in state management efforts for research, prevention or medical care in the areas of HIV/AIDS. The World Bank recognizes the possibility that religious prejudice toward homosexuals or non-affiliated religious members could produce a state associated atmosphere for religious discrimination.

-The World Bank opposes the proposals calling for private-sector entities, such as Pfizer, to donate or shoulder too much of the fiscal costs in the ongoing global efforts in medical treatment, testing, education or prevention. The World Bank feels that all leading private-sector entities in the medical field should maintain their capital for future medical research in the fields of HIV/AIDS. In addition, the problem of HIV/AIDS is not a short-term problem and will be a global and domestic issue for decades to come. The World Bank believes that each government must learn to economically budget their resources for the long-term issues, and views the provision of short-term donations as only delaying the inevitable.

Closing Concerns:

The World Bank’s largest concern at the conclusion of this conference is the lack of economic/fiscal consideration and proposal planning. Almost every area proposed during the conference clearly identified areas that, if conducted properly on the global or national level, will comprise of extensive economic costs. The World Bank was disappointed in the lack of economic responsibility during the conference.

As stated in our opening statement and during our conference proposal, the World Bank stands ready to work with any nation in making their global and domestic proposals an economic reality. Again, depending on long-term and short-term credit ratings, the World Bank, in its dedication to combat HIV/AIDS, is eager to work with any nation-state that is interested in economic responsibility for the long-term problem of HIV/AIDS and other diseases.

Thank You and Good Night.

British Colonialism: 1898 Fashoda (Sudan)

At the end of the 19^th century the continent of Africa was already under European colonial siege, a race termed in history as the scramble for Africa.  The major European powers in Africa at the turn of the century were the British and the French, with Germany, Spain, Belgium, Portugal and Italy also engaged on the continent.   The incident of Fashoda (modern Sudan) was not only a ‘diplomatically’ resolved land conflict between Britain and France, it served as a very important evolution point in imperialism.

In July 1898, the French established a military presence at Fashoda under the command of Jean-Baptiste Marchand.  As a result, British forces based in the Upper Nile region moved military forces under Lord Herbert Kitchener southward into Sudan toward Fashoda. 

What was the importance of Fashoda?  The Importance of Fashoda is its position on the Nile, which is a Northern flowing river.  From a British perspective, French forces could put gunboats in the water or even erect a dam to completely cut off the flow of water, which would be disastrous on economic, health, military levels.

Kitchener won the battle of Omdurmam against Mahdist forces on the southward movement toward Fashoda.  Full scale conflict between British and French forces never erupted over Fashoda because “France stepped down” because “her ally, Russia, refused to become entangled in a dispute over a stretch of sand in the middle of Africa” [1].  The French also understood the naval superiority that the British possessed over them and did not wish to see their own foreign trade decimated again, as it had been in the 18th century, due to conflict  with Britain [2].

I offer two areas for contemplation and discussion:

The fact that Britain “had the Egyptian flag rather than the British flag hoisted over Fashoda” is very interesting.  Looking at this period of colonial history, we see Britain using Egypt, basically a British property yet proclaimed as an autonomous protectorate, as a puppet state for military and political actions (to achieve British economic interests).  I view this as an evolution in imperialism.  Just as the modern imperial actions of the United States and their allies remove regimes such as Iraq, Libya, and Afghanistan, only to replace them with puppet governments which they can utilize or exploit, we can look back at the British return to Egypt in 1882 and see that Britain controlled the finances, government and military of Egypt.

A few weeks back while studying Dr. Said’s orientalism, we reviewed an account of General Gordon’s evacuation mission to Khartoum (north of Fashoda).  I have to give consideration to the possibility of ‘under the table’ French support, in military or economic form, to the Mahdists in their opposition against British-Egyptian southern advancement.  Any thoughts on this possibility?

[1] James, Lawrence.  The Rise and Fall of the British Empire (New York: St. Martin’s Griffin, 1996), 285.

[2] James, Lawrence.  The Rise and Fall of the British Empire (New York: St. Martin’s Griffin, 1996), 285. 

Jamaica: State Stability and Security - Gangs

            After a long history of Spanish and British colonization, the state of Jamaica established independence in 1962.  Similar to other post-colonial states, Jamaica was a state that emerged with a native population suffering from extreme poverty after decades of foreign exploitation and left in a fragmented domestic political void.  As post-colonialism evolved to globalization, Jamaica remained stable enough for continued foreign capital investment-exploitation, and the newly independent island state did not find itself at war with surrounding states or threatened by further foreign occupation.  The threat to Jamaica’s security and stability, and the safety of the Jamaican people, emerged and continues from a domestic threat: gangs.

Post-Colonial Political Void

            Political voids were characteristic of emerging independent states after decades of colonial occupation by European powers, and the result was no different in Jamaica as domestic political groups vied for power.  Within ten years of Jamaica’s independence, the PNP (People's National Party) and JLP (Jamaican Labour Party) were locked into a grueling battle for domestic political dominance within the democratic parliamentary system left behind by their British occupiers.  After the 1972 election of the PNP’s Michael Manley, “Jamaica’s ruling elite and foreign backers waged a violent and debilitating assault on Manley’s government and party to prevent it from implementing reforms, combining paramilitary assaults on neighbourhoods supporting the PNP with sabotage of the country’s economy” [1]. 

The political gang warfare of the 1970s went both ways as “the two main parties helped organize and arm in Kingston's poor neighborhoods in the 1970s, gangs that controlled the streets at the behest of politicians and intimidated voters at election time”[2].  The PNP was ousted in the election of 1980 when “the political violence reached its height in 1980, when an estimated 700 people were killed in election-related fighting” and the JLP won the national vote and has held power since.  As a result, the gang problem in Jamaica had been born, nurtured and strengthened by political sponsorship and unofficial, and at times official, state support.

Poverty and Drugs

            Poverty in Jamaica has “been a persistent feature of the Jamaican landscape from the post-Emancipation period”[3].  After the dissolution of political party funding for gang activities, Jamaican gangs found an independent funding source in “the introduction of cocaine in the mid-1980s”, as youth amidst post-colonial poverty began to view “the easiest way to become ‘better off’ was to buy cocaine and sell it”[4]. 

As the amount of people living under the poverty level in Jamaica climbed to “an all-time high of 45% of the population, combined with an inflation rate of 80%” in 1991, and previous restraints on gang activities by their political affiliations that funded and armed them were deteriorating, Jamaican gang members, with no other viable options, began to violently position gang alliances throughout the Kingston garrison territories for power positions in the cocaine game [5].     

            The drug trade and violent crime in Jamaica were greatly impacted by the “significant use of the gun in the 1980’s and the illicit drug trans-shipment trade changed the country’s crime landscape from conflict between individuals to violent conflict over turf” and eventually became “anchored in institutionalized relations and occupational roles (subsequent development of extortion and racketeering) [6].

Modern Gang Violence and Economic Growth

            Today, Jamaica boasts one of the highest murder rates in the world due to gang violence and drug trafficking.  As gang violence continued to develop after the turn of the century, Jamaica suffered from “1,674 murders in 2005, up from 1,471 murders” in 2004 amidst “gang related fights over drugs and turf” [7].  A 2004 World Bank report written on the violent crime epidemical erosion on possible economic growth in Jamaica states that “crime costs society at least 4 percent of GDP explicitly, including lost production, health expenses, and public and private spending” and that “Some 10-20 percent of firms in the business survey suggested that they may close down in the next three years because of crime.” [8]

            The gang violence epidemic is debilitating to the Jamaican state because the majority of gang action and violent crime takes place in densely populated urban areas trapped under heavy poverty such as Kingston where “in 2001, about 51 percent of reported violent crimes occurred” [9].  Jamaica has open borders for investment and foreign vulture capital is flowing into the state, but after natural resources and cheap labor are extracted by foreign investors, the Jamaican government is forced to spend her prostitution pay from foreign capital exploitation on reigning in gang violence and paying off international debt instead of maximum reinvestment into the social economy of the state.

Conclusion

            The origins of gang activity in Jamaica were a direct result of the political void and extreme poverty left by colonial oppression, and the violence was grossly accelerated by the political detachment of gangs and the emergence of cocaine, and later crack-cocaine, in the over-crowed cities suffering from mass poverty.  As crime and murder rates continue to expand as a result of bloody gang conflicts over drug territories, the government of Jamaica, which is already under extreme debt to the World Bank and International Monetary Fund, is unable to reinvest the foreign capital that is exploiting their domestic natural resources and cheap labor for profit, because crime stability drains a good portion of the GDP after the international debtors extract their payments.  In the case of Jamaican security and economic growth, it is no longer a foreign colonial master or a neighboring nation-state that threatens that security and development.  The largest threat to national security and development, Jamaican gangs, destroys from within.

Notes

1.  Annis, Roger.  Gangs and Violence in Jamaica and Haiti.  Center for Research on Globalization, June 14, 2010.  Accessed on March 9, 2013 from http://www.globalresearch.ca/gangs-and-violence-in-jamaica-and-haiti/19744

2. Rosenberg, Matthew.  Jamaica: 20 Dead in Political Violence.  ABC News, July 10, 2013.  Accessed on March 9, 2013 from http://abcnews.go.com/International/story?id=80803&page=1

3. Anderson, Patricia.  Poverty in Jamaica: Social Target or Social Crisis.  Columbia University.  Souls Journal, 2001, p. 39.  Accessed on March 9, 2013 from http://www.columbia.edu/cu/ccbh/souls/vol3no4/vol3num4art5.pdf

4.  Lolland, J & Moser, C.  Urban Poverty and Violence in Jamaica.  World Bank, Latin American and Caribbean Studies. Washington, D.C, 1997, p. 14-15.  Accessed on March 9, 2013 from http://books.google.com/books?id=wQ7Fie43Ld0C&pg=PA15&lpg=PA15&dq=emergence+of+cocaine+in+jamaica&source=bl&ots=1cImBi67my&sig=5daFkzlmhVcPlQPN-JzQIEL9BZ0&hl=en&sa=X&ei=_Z47UaaKHJD82gXDsIDIBw&ved=0CHcQ6AEwBw#v=onepage&q=emergence%20of%20cocaine%20in%20jamaica&f=false

5. Hughes, Wesley.  A Historical Perspective on Poverty, The Transformation of Jamaica Report.  Office of the Prime Minister, 2006.  Accessed on March 9, 2013 from  http://www.pioj.gov.jm/Portals/0/speeches/Poverty%20-%20OPM%20-%20Sept%202006.pdf

6. Gray, Sherrian.  Trends in Urban Crime and Violence in Kingston, Jamaica.  UN Habitat Global Report on Human Settlements 2007, p. 7.  Accessed on March 9, 2013 from  http://www.unhabitat.org/downloads/docs/GRHS.2007.CaseStudy.Crime.Kingston.pdf

7. Biswas, Soutik.  Jamaica Struggles to Fight Crime.  BBC News, May 16, 2007.  Accessed on March 9, 2013 from http://news.bbc.co.uk/2/hi/americas/6657203.stm

8. The Road to Sustained Growth in Jamaica.  World Bank, Washington, D.C., 2004, p.18-19.  Accessed on March 9, 2013 from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/05/28/000012009_20040528112811/Rendered/PDF/29101.pdf

9. The Road to Sustained Growth in Jamaica.  World Bank, Washington, D.C., 2004, p.18-19.  Accessed on March 9, 2013 from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/05/28/000012009_20040528112811/Rendered/PDF/29101.pdf

 

 

 

Imperialism - Marxist Economic and Political Theories of J.A. Hobson and Vladimir Lenin

                The political theories of J. A. Hobson (1858-140) and Vladimir Lenin (1870-1924) concerning imperialism are both Marxist in nature, and held the basic widespread views that capital was consolidated within an elite group of holders which used the state as a mechanism for exploitation, but their base theories concerning imperialism were concentrated on different pillars of capital imperialism.  While Hobson focused his theories around the concept of aggressive imperialism of industrial capitalist elites utilizing the state actor for achieving profits on multiple international and domestic levels, Lenin concentrated on capitalist industrialization, capitalist monopolies, and viewed imperialism as the highest stage that capitalism could evolve to, that of parasitic exploitation.

J. A. Hobson

                Imperialism, as Hobson viewed it, was “bad business for the nation” while “good business for certain classes and certain trades within the nation” [1].  In essence, he states what every economist understands was the driving force for colonialism under British imperialism, and today can be seen from an international perspective with non-governmental organizations, such as private sector elements in the World Bank, and international corporations.  That driving force is the generation of capital, through high interest loans and exploitation of colonial natural resources, by the elite holders of capital and technology.  A golden rule of capitalism is that a person, or on a larger scale a nation-state, must have capital to generate capital.

                Much of what Hobson states about Imperialism relates both to the British Empire, as well as the modern United States.  Discussing the economic ramifications of imperialism, Hobson points out the result of economic drain on the imperial state, such as “a great expenditure of public money upon ships, guns, military and naval equipment and stores, growing and productive of enormous profits when a war, or an alarm of war, occurs; new public loans and important fluctuations in the home and foreign Bourses; more posts for soldiers and sailors and in the diplomatic and consular services; improvement of foreign investments” [2].  We clearly saw this with the British Empire in North America and India, and the United States has clearly felt the economic drain from a decade of military occupations in Iraq and Afghanistan, which did little for the people of those countries and provided the people of the United States with only ‘imperial’ debt.  While the American tax payer footed the bill, the private sector profited from the state sponsored imperial occupations that strived to stabilize foreign areas for international private sector capital infiltration.  In his writings, Hobson identified the transition of England in becoming a creditor state under what he called aggressive imperialism, which Lenin would cite decades later in his own political-economic theories. 

                One of the most interesting areas of Hobson’s economic ideologies is his theory on how the capitalist elites achieve their goals of imperialistic capital generation and accumulation through the manipulation of “the patriotic forces which politicians, soldiers, philanthropists, and traders” through propaganda, which media in a capitalist nation-state will always be predominantly owned by the capitalist elites" [3].  A nation of workers, soldiers, and tax payers would probably not support imperialism if they understood the in-debt economics of what was occurring, therefore propaganda serves to nationalize, and justify, the events from a patriotic slant where some facts are heavily concentrated on while others are ignored.  While this is not a new tactic by the consolidated owners of capital and is a quite evident tactic in the United States today, Hobson understood the process toward the end of the British Empire as “The direct influence exercised by great financial houses in “high politics” is supported by the control which they exercise over the body of public opinion through the Press, which, in every “civilised” country, is becoming more and more their obedient instrument. While the specifically financial newspaper imposes “facts” and “opinions” on the business classes, the general body of the Press comes more and more under the conscious or unconscious domination of financiers.” [4].    

Vladimir Lenin

                Lenin viewed “the enormous growth of industry and the remarkably rapid process of concentration of production in ever-larger enterprises are one of the most characteristic features of capitalism” and a driving point for imperialism [5].  What separates Lenin from Hobson is that Lenin distinguishes between capitalism and industrial capitalism, in which “imperialism is the monopoly stage of capitalism” where “finance capital is the bank capital of a few very big monopolist banks, merged with the capital of the monopolist associations of industrialists; and, on the other hand, the division of the world is the transition from a colonial policy which has extended without hindrance to territories unseized by any capitalist power, to a colonial policy of monopolist possession of the territory of the world, which has been completely divided up” [6].  Theorists such as Lenin understood national and colonial capitalism very well, and the exact thing that Lenin states here concerning the imperialism of his time is aligned in the exact same formula for modern international capitalist globalization.  Lenin’s depiction that imperial capitalism was the final stage of capitalism seems almost prophetic when looking at the international stage after World War I and II, and the Cold War, as the consolidations of international capital monopolies only intensified with “the formation of international monopolist capitalist associations which share the world among themselves” and “the territorial division of the whole world among the biggest capitalist powers” [7].

                While Lenin’s observations can be clearly seen today with international private sector monopolies or international loan machines, such as the International Monetary Fund and the World Bank, during the British Empire era imperialism was more nation-state oriented with the “immense accumulation of money capital in a few countries” and “monopoly ownership of very extensive, rich or well situated colonies” [8].  This is also especially true of modern globalization with the exception that the power of states, which ruled the international stage during the time of the British Empire, has been replaced by unleashed international private sector capitalist powers.  Lenin makes a keen observation at the beginning of the 20^th century with the statement that “the income of the rentiers is five times greater than the income obtained from the foreign trade of the biggest "trading" country in the world. This is the essence of imperialism and imperialist parasitism.” [10]. Colonial trade derived from British imperialism was not the main profit producer; it was parasitic capitalist loans that generated the most income.  The same imperial exploitation exists today on the international stage, only there has been a global separation of state and private sector capital, and now struggling nation-states find themselves at the mercy of the unholy economic union of the IMF, World Bank, World Trade Organization and their political and military muscle, the economic power states of the United Nations Security Council.  An example of these capitalist parasitic loans in the British Empire can be seen with the military occupation of Egypt in 1882.

                The Earl of Cromer gave a poor explanation of why Britain moved on Egypt: “we don’t really want the damned place but if we don’t someone else will grab it and the whole balance of power will be mucked up” [8].  What the Earl failed to see, or perhaps only failed to mention, was the Egyptian debt to Britain and her banks, and the construction of the Suez Canal.  Egypt, under the leadership of Ismail from 1863-1879, saw that “government debt rose from £3 million to nearly £100 million, largely due to Ismail’s efforts to modernize Egypt. In addition to completing the Suez Canal” and “by 1875, even though Egypt had repaid £29 million on its loans, it still owed £46 million and the country was near bankruptcy.  British Prime Minister Benjamin Disraeli learned from private sources that the Egyptian shares in the Suez Canal were for sale. Acting without parliamentary authorization, he bought them for the British government and thereby greatly increased the British stake in Egyptian stability.” [9].  Stability was, and still is, paramount to aggressive imperialism and in 1882 Britain moved to provide that stability through military occupation.

Hobson and Lenin

                Hobson and Lenin are political theorists that develop Marx’s original domestic analyses of capital to an international level, and serve the academic world with a solid link to modern events occurring on the international stage today.  The theories on imperialism and capitalism by Hobson and Lenin have much more in common than in opposition, and they appear to complement each other instead of contradict each other.  As would be expected, neither of these political theorists are covered in American public school systems outside of a brief mention of Lenin’s involvement in World War I.

 

Notes

1. Hobson, J.A.  Imperialism, A Study.  Public Domain.  Accessed on March 2, 2013 from http://www.marxists.org/archive/hobson/1902/imperialism/pt1ch4.htm

2. Hobson, J.A.  Imperialism, A Study.  Public Domain.  Accessed on March 2, 2013 from http://www.marxists.org/archive/hobson/1902/imperialism/pt1ch4.htm

3. . Hobson, J.A.  Imperialism, A Study.  Public Domain.  Accessed on March 2, 2013 from http://www.marxists.org/archive/hobson/1902/imperialism/pt1ch4.htm

4.  . Hobson, J.A.  Imperialism, A Study.  Public Domain.  Accessed on March 2, 2013 from http://www.marxists.org/archive/hobson/1902/imperialism/pt1ch4.htm

5. Lenin, Vladimir.  Imperialism, The Highest Stage of Capitalism, 1916.  Fordham University.  Public Doman.  Accessed on March 2, 2013 from http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html

6.  Lenin, Vladimir.  Imperialism, The Highest Stage of Capitalism, 1916.  Fordham University.  Public Doman.  Accessed on March 2, 2013 from http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html

7. Lenin, Vladimir.  Imperialism, The Highest Stage of Capitalism, 1916.  Fordham University.  Public Doman.  Accessed on March 2, 2013 from http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html

8. Why Britain Acquired Egypt in 1882 (1908).  Modern History Sourcebook, Fordham University.  Accessed on March 2, 2013 from http://www.fordham.edu/Halsall/mod/1908cromer.asp

9.  Jones, Jim.  Egypt and Europe in the 19^th Century.  West Chester University, 2013.  Accessed on March 2, 2013 from http://courses.wcupa.edu/jones/his312/lectures/egypt.htm

10. Lenin, Vladimir.  Imperialism, The Highest Stage of Capitalism, 1916.  Fordham University.  Public Doman.  Accessed on March 2, 2013 from http://www.fordham.edu/halsall/mod/1916lenin-imperialism.html

Why Did The Poorest Countries Fail to Catch Up? Vulture Globalization.

“Why did the poorest countries fail to catch up?”  Before we can discuss development or failure through war and peace in so-called undeveloped nation-states, it is important to recap the history of the beast that places a slave collar on those so-called undeveloped nation-states.

The relationship between war and development, and peace and development correlate in the constant exploitation and generation of global capital profit under the banner of capitalism and globalization.  Free trade agreements between nation-state actors, from the era of the Treaty of Westphalia and the East India Company, birthed the original concept of international markets and early capitalism.  Anyone who has studied capitalism in an unbiased manner understands the basic pillar of capitalism: to generate capital, one must own capital, and eventually the available capital becomes consolidated within an elite group of owners until more paper capital is created and placed into circulation which eventually devaluates currency.  It is important to consider that, within modern global capitalism that a devaluated national currency can be profited on internationally, by those with capital, through the international currency exchange establish through the International Monetary Fund (IMF).

The development of world submission to vulture capitalism, or globalization and development in politically correct terms; occurred through two major international wars.

World War II

After the Allied victory of World War II, the fallacy of the League of Nations was rectified by the creation of the United Nations and a five permanent member security council with veto power.  Four of the five permanent members were open free markets supporting capitalism, with Russia being the sole exception (although Communist nation-states still import and export trade).  The world globalization process began after WWII with the creation of the IMF, which regulated currency values exchanges of capital across nation-state borders, the General Agreement on Tariffs and Trade (GATT), which would become the World Trade Organization (WTO), and the International Bank for Reconstruction and Development, which would become the World Bank. 

What was the first thing the free market economic powers did upon the creation of the GATT?  They generously provided their colonial possessions with membership.  At this point, through “regionalized economic systems that provide the main motors of the global economy”, capitalism began to outgrow nation-state borders into a regional international so-called free market (Beger & Weber, p. 8).  Just as the early days of capitalism within nation-state borders, capital unleashed on the international stage began a process of capital generation and a consolidation period was initiated as the market expanded to enhance exploitation of colonial property natural resources with increasing technologies.  With the establishment of the GATT/WTO, the IMF, and the IBRD/World Bank, it is easy to see how “rich countries tended to grow as a club” and that there has never been “negative-growth in the rich world” (Milanovic, p. 4).  Capital creates capital. 

It was only the balance of power created by the bi-polar Cold War between capitalism and communism that held capitalism and the international market from globalizing, yet even in a stalemate capital was generated and consolidated by international banks and private sector capital through a massive arms race.

Cold War

After the collapse of the Soviet Union and the end of the Cold War in the “1990s, the most economically significant post-communist nation-states that arose from the collapse of the Soviet power (including Russia itself), were reconfigured as part of the ‘emerging economies’ or ‘emerging markets’” (Berger & Weber, p. 9).  With no communist hegemon to balance against the rising capitalist behemoth of the United States which had moved “to a position of unrivaled global power”, capitalist globalization expanded Eastward and Southward with the backing of the UN Security Council, and the collective capital of the IMF and World Bank, in order to open previously communist states and post-colonial states to the free market and, more importantly, globalize the former communist and colonial state borders for the infiltration of foreign private sector investment capital.

Globalization and international capital consolidation had become complete and was illustrated by the “key characteristic of global development by the 1990s was the growing concentration of economic power in the hands of a small number of large oligopolistic corporations” (Berger & Weber, p. 8).

Why Did the Poorest Countries Fail to Catch up?

The Carnegie Endowment for International Peace report by Milanovic reminds me of a kid that watches somebody get beat down on the playground and when asked about it by teachers and adults, replies “Did something happen to Johnny?”

This report was almost offensive to read as Milanovic simply regurgitates twisted World Bank statistics and points out previous economic theories on globalization, while puzzling over the “disastrous performance of LDCs during the era of globalization” like someone who masters quantum physics, but doesn’t understand the basic concepts of capitalism (p.9).  What is worse is that the bulk of statistics and charts create an overall average (or mean) for multiple categories, when each so-called LDC has a specific history of political, economic, and social events that has shaped its current political and economic condition.  Category averages derived from all countries, the statistics offsetting each other because of the number of states being averaged, offer little meaning when dealing with post-colonial states, post-communist states, and states that didn’t even exist before World War II.  

Let’s look at how Milanovic attempts to discern the failure of LDC development.  In these areas, we can see the exploitative arm of international capitalist profiting during times of civil and international conflict, as well as during times of peace.

1] Civil Wars and International Conflict.  Conflict and the banner of so-called reconstruction is the World Bank’s main capital maker.  The Bank, as it is often called in its own reports, gained its original calling during the reconstruction of Europe after WWII and has greatly expanded its international mandate and methods over the past half century.  Everywhere, meaning post-communist soviet satellite states and post-colonial LCDs, that the UN Security council has sent multi-national so-called peacekeeping forces to over the last thirty years, the World Bank has attempted to follow in their footsteps with reconstruction loan promises and foreign private sector capital actors ready for exploitive investment.  Behind some UN operations, states became stable enough for foreign private sector infiltration while in others, such as Somalia, stabilization was unsuccessful.  World Bank loans often come with conditions that open the flood gates for foreign capital investment that result in loan interest rate costs for the recipient state while “private capital flows in the past 20 to 30 years have generally gone from one rich country to another rich country” via the private sector exploitation of natural resources and cheap labor force exploitation in Lower Developed Countries (LDCs).

Even as the United Nations, and NATO for that matter, has continued to expand its role on the international stage, they contribute to enforcing hypocritical sanctions and eventual military ‘sticks’ that remove and rebuild state regimes that just will not accept the international free market ‘carrots’.  Each LCD nation-state that has been internationally ganged on, from Iraq to Libya and soon Iran, has an individual account that has ended the same way, with a new regime in place that opened to the global market and welcomed the World Bank and IMF.    

“Total disbursements from international financial institutions (IFIs) to the LDCs have grown from 2.75 percent of the recipient’s GDI in the first half of the 1980s to about 3 percent of their GDI in the first years of the new century.  The expansion was mostly due to an increase in World Bank loans to the LDCs”

2] Institutions, reform and policies.  When these terms are used to criticize a nation-state, it is usually because a domestic policy is barring maximum foreign private sector investment and profit in some way.  Institutions equal a stable government.  Private sector capital doesn’t generate profits well under politically unstable conditions.  In the cases of policy, requirements similar to deregulating energy or some other resource is usually the case.  Foreign private sector capital is unable to invest in domestic regulated resources.  In many cases with the World Bank, educational reforms (often technical) are an important issue.  This is an important condition because private sector capital needs a human work force on the ground in the LDC they are economically exploiting for profit.  These three terms, which can be attributed to many other areas outside of the simple examples I provided, are basically considered terms for World Bank and IMF loans.

  3] Lower trade (policies and outcomes) to Gross Domestic Product ratio.  The more debt a nation-state accrues under these international capitalist loans with conditions (which allow entry for the foreign private sector capitalist investors), the more slowed economic growth will be.  In 2011, Jamaica’s annual debt payments actually exceeded their annual GDP and the state defaulted from their 2010 IMF agreement (which, as I have mentioned in previous posts, the IMF loans capital in the strongest international currency while loan recipient states are required to pay back the loan in their own devaluated domestic currency).  In Jamaica’s case, the international economic community threatened to isolate them if they did not return to the IMF table for another loan, this one required a debt exchange at higher interest rates.

  4] Attracting foreign investment as a way to gain access to new technology.  If foreign investment owns the technology, they own the profits.  The foreign capital investment may create some temporary jobs, but when the foreign investment has exceeded its profiting, or a natural resource is depleted, the capital will again flow back to the rich nation-state or private sector international actor.  If the international loans are utilized to purchase technology, the loan repayment collects large amounts of interest (and if it is IMF, the currency difference adds to the total) while technologies have durations, and new technologies often replace older technologies making them obsolete in completing with new technologies. 

Closing Statement

There is no separate relationship between economic development during times of war and times of peace for developing nation-states on the international stage.  There is only the international caste of global capitalism.

Berger, M. T. & Weber H.  War, Peace and Progress: Conflict, Development, (in)security and Violence in the 21^st Century.  Third World Quarterly, 30(1), 2009. P. 1-16.

Milanovic, Branko.  Why Did The Poorest Countries Fail to Catch Up?  Trade, Equity and Development Project, Number 62, November 2005.  Carnegie Endowment for International Peace.