The Financial Globalization of Brazil under Lula
François Chesnais has defined three stages in the process of financial globalization. The first took place in the 1970s and he calls it “indirect financial internationalization of closed national systems.” Latin American countries including Brazil took part in this process of attracting a substantial volume of loans. The second stage, 1980-85, started with Paul Volcker’s “dictatorship of creditors” and the discovery by Margaret Thatcher of neoliberalism as the doctrine for the new age. The center countries, starting with the United States and Great Britain, unlocked their financial markets by liberalizing the international flow of capital. The interlinking of national systems became more direct and immediate through market finances. In Latin America, the debt crisis exploded with rising interest rates (following the negative Volcker shock) involving massive debt contracted in the prior period brokered by the banking system | more…
The Brazilian Economy under Lula: A Balance of Contradictions
n the 1980s the Brazilian economy suffered a long spell of stagnation and inflation caused by the foreign debt crisis affecting all indebted countries. That crisis triggered an acute inflationary process that reached 2,012.6 percent in 1989 and 2,851.3 percent in 1993, according to the general price index from the Getulio Vargas Foundation. The second half of the 1980s and the first of the 1990s saw the deployment of successive anti-inflationary plans, starting with the 1986 Plano Cruzado and ending with the 1994 Plano Real.* The period also marked the end of the industrialization strategy known as “import substitution” and the onset of neoliberal policies in Brazil | more…
The Neoliberal Agrarian Model in Brazil
Since Fernando Collor’s 1989 presidential victory, and most notably since Fernando Henrique Cardoso’s two terms in office (1995-98 and 1999-2002, respectively), economic policies have been enacted in Brazil that represent a subordinate alliance of the country’s dominant classes with international capital. Unfortunately, under President Lula these same sectors have remained in control, and economic policy caters to their interests | more…
U.S. Imperialism and the Third World
By Shahid Alam
Carollee Bengelsdorf, Margaret Cerullo, & Yogesh Chandrani, eds., The Selected Writings of Eqbal Ahmad (New York: Columbia University Press, 2006), 630 pages, paperback $26.50, cloth $69.50.
In his life, Eqbal Ahmad was a venerable icon in many left circles, not least in the United States. This was showcased at the conference organized in 1997 to mark his retirement from Hampshire College. There to honor Professor Ahmad were some of the most eminent radi- cal thinkers and activists from around the world. A list of the confer- ence speakers read like a Who’s Who of the global left | more…
January 2007 (Volume 58, Number 8)
By The Editors
In late November 2006 John Bellamy Foster traveled to Brazil where he delivered addresses on the global ecological devastation of capitalism, and the need for worldwide ecosocialist resistance, at two universities in the state of Santa Catarina: the Regional University of Blumenau and the Federal University of Santa Catarina in Florianópolis. These talks were part of the third annual Bolivarian Days Conference organized by the Institute of Latin American Studies in Brazil. The theme this year was “Social Theory and Eurocentrism in Latin America: The Insurgency of Critical Thought.” The conference provided ample evidence of the vitality of socialist and anti-imperialist critiques both in Brazil and in Latin America as a whole in what is clearly a new era of revolt | more…
Transient Servitude: The U.S. Guest Worker Program for Exploiting Mexican and Central American Workers
Defining moments in the history of a nation are time and again overshadowed by the drama of war. These critical events are often domestic policy decisions that affect the immediate state of a country and have serious consequences for the future. Significant examples in U.S. history include: the initial decision of the revolutionary government to found a republic dedicated to the lofty principles of “life, liberty, and the pursuit of happiness” but embracing slavery, a contradiction that ultimately led to civil war; the decision to prematurely end reconstruction efforts in the South after the Civil War, a policy reversal which allowed the long-term oppression and exploitation of the emancipated slaves and their descendents; and the decision during the Second World War to encourage the mass migration of poor African Americans from the rural South to the industrial centers of the Midwest and Northeast to support the war economy, a haphazard resettlement program that resulted in the ghettoization and continued oppression of a significant national minority | more…
Harry Chang: A Seminal Theorist of Racial Justice
By Bob Wing
It is little known that a shy Korean immigrant named Harry Chang made vital contributions to the theory and practice of racial justice in the United States. In his most fruitful period, the 1970s, his work shaped the thinking and political work of numerous movement organizations, mostly led by people of color. Although he died prematurely in 1979, his work helped lay the foundations of two of the most progressive and influential theories of racism: the theory of racial formation and critical race theory | more…
Resource Wars
The close relation between war and natural resources is of long standing. What else was colonial conquest about? Vast estates held by the Dutch East India Company came under direct control of the Crown as did the lands conquered by the British East India Company. What was in demand in Europe dictated the commodities produced and the natural resources that were ripped from the earth. European violence set the terms on which resource extraction occurred. There was no free trade for mutual benefit based on comparative advantage. There were few constraints on the violence employed in the extraction of resources starting with the “shock and awe” of bombardments and fire storms of wars of conquest and followed by the pitiless subjugation of people of color. Having defeated the locals in battle the invaders suborned local elites and customs to extract resources from those they had conquered | more…
Road to the Iraq War: Two Views of U.S. Imperialism
Greg Grandin, Empire’s Workshop: Latin America, the United States and the Rise of the New Imperialism (New York: Metropolitan, 2006), 286 pages, hardcover, $25.00.
Stephen Kinzer, Overthrow: America’s Century of Regime Change from Hawaii to Iraq (New York: Times Books, 2006), 384 pages, hardcover, $27.50.
The evening before the 2003 invasion of Iraq, I was giving a talk at our main leftist meeting place in the San Francisco Mission District.…I was stunned when an admired leftist comrade began fervently invoking similarities between the Bush administration and the Roman Empire, analogizing Roman legions and the U.S. military. Others piled on, developing the comparison further, also talking hopefully about the ultimate fall of the Roman Empire. I interrupted the ancient history discussion, asking why not look at U.S. history, especially U.S. imperialism in Latin America as a precedent. Silence met my remark, and the discussion of Rome continued. | more…
A Marxist Ecological Economics
Paul Burkett, Marxism and Ecological Economics: Toward a Red and Green Political Economy (Boston: Brill, 2006), 355 pages, hardcover, $89.00.
Paul Burkett’s new book, Marxism and Ecological Economics, offers in an outstanding manner evidence of the treasures in Marx’s “Critique of Political Economy” and of the riches of Marxist theory accumulated in more than a hundred years of theoretical reasoning. It is an attempt to bring Marx into the new economic subdiscipline of ecological economics…, and at the same time to reexamine Marxist theory from the perspective of ecological economics.… Burkett’s book aims at correcting…widespread, if not altogether dominant interpretations, which are fundamentally flawed—in both their theoretical understandings of Marxism and their attempts to reduce its influence to certain failed historical experiments. | more…
December 2006 (Volume 58, Number 7)
By The Editors
In a survey of the Iraqi population, the results of which were released last June, 76 percent of those surveyed gave as their first choice “to control Iraqi oil” when asked to choose three reasons that the United States invaded Iraq. The next most common answers were “to build military bases” and “to help Israel.” Less than 2 percent picked “to bring democracy to Iraq” as their first choice (University of Michigan News Service, June 14, 2006 [http://www.nsumich.edu], U.S. News & World Report, August 17, 2006). In the United States the “blood for oil” explanation for the war is regularly scorned by the powers that be, including the corporate media. However, there is no way of getting around the fact that nearly all questions regarding Iraq return in one way or another to oil | more…
Monopoly-Finance Capital
The year now ending marks the fortieth anniversary of Paul Baran and Paul Sweezy’s classic work, Monopoly Capital: An Essay on the American Economic and Social Order (Monthly Review Press, 1966). Compared to mainstream economic works of the early to mid-1960s (the most popular and influential of which were John Kenneth Galbraith’s New Industrial State and Milton Friedman’s Capitalism and Freedom), Monopoly Capital stood out not simply in its radicalism but also in its historical specificity. What Baran and Sweezy sought to explain was not capitalism as such, the fundamental account of which was to be found in Marx’s Capital, but rather a particular stage of capitalist development. Their stated goal was nothing less than to provide a brief “essay-sketch” of the monopoly stage of capitalism by examining the interaction of its basic economic tendencies, narrowly conceived, with the historical, political, and social forces that helped to shape and support them | more…
The Myths of ‘Democracy Assistance’: U.S. Political Intervention in Post-Soviet Eastern Europe
One of the notable shifts in post-Soviet world politics is the almost unimpeded involvement of Western agents, consultants, and public and private institutions in the management of national election processes around the world—including those in the former Soviet allied states. As communist party apparatuses in those countries began to collapse by the late 1980s and in almost bloodless fashion gave way to emerging political forces, the West, especially the United States, was quick to intercede in their political and economic affairs. The methods of manipulating foreign elections have been modified since the heyday of CIA cloak and dagger operations, but the general objectives of imperial rule are unchanged. Today, the U.S. government relies less on the CIA in most cases and more on the relatively transparent initiatives undertaken by such public and private organizations as the National Endowment for Democracy (NED), the U.S. Agency for International Development (USAID), Freedom House, George Soros’s Open Society, and a network of other well-financed globetrotting public and private professional political organizations, primarily American, operating in the service of the state’s parallel neoliberal economic and political objectives. Allen Weinstein, who helped establish NED, noted: “A lot of what we [NED] do today was done covertly 25 years ago by the CIA.” | more…