The US and Global Wars: Empire or Vampire?

GIF by WhatReallyHappened.com

GIF by WhatReallyHappened.com

By James Petras

Source: Axis of Logic

Introduction

To the growing army of critics of US military intervention, who also reject the mendacious claims by American officials and their apologists of ‘world leadership’, Washington is engaged in ‘empire-building”.

But the notion that the US is building an empire, by engaging in wars to exploit and plunder countries’ markets, resources and labor, defies the realities of the past two decades. US wars, including invasions, bombings, occupations, sanctions, coups and clandestine operations have not resulted in the expansion of markets, greater control and exploitation of resources or the ability to exploit cheap labor. Instead US wars have destroyed enterprises, reduced access to raw materials, killed, wounded or displaced productive workers around the world, and limited access to lucrative investment sites and markets via sanctions.

In other words, US global military interventions and wars have done the exact opposite of what all previous empires have pursued: Washington has exploited (and depleted) the domestic economy to expand militarily abroad instead of enriching it.

Why and how the US global wars differ from those of previous empires requires us to examine (1) the forces driving overseas expansion; (2) the political conceptions accompanying the conquest, the displacement of incumbent rulers and the seizure of power and; (3) the reorganization of the conquered states and the accompanying economic and social structures to sustain long-term neo-colonial relations.

Empire Building: The Past

Europe built durable, profitable and extensive empires, which enriched the ‘mother country’, stimulated local industry, reduced unemployment and ‘trickled down’ wealth in the form of better wages to privileged sectors of the working class. Imperial military expeditions were preceded by the entry of major trade enterprises (British East India Company) and followed by large-scale manufacturing, banking and commercial firms. Military invasions and political takeovers were driven by competition with economic rivals in Europe, and later, by the US and Japan.

The goal of military interventions was to monopolize control over the most lucrative economic resources and markets in the colonized regions. Imperial repression was directed at creating a docile low wage labor force and buttressing subordinate local collaborators or client-rulers who facilitated the flow of profits, debt payments, taxes and export revenues back to the empire.

Imperial wars were the beginning, not the end, of ‘empire building’. What followed these wars of conquest was the incorporation of pre-existing elites into subordinate positions in the administration of the empire. The ‘sharing of revenues’, between the imperial economic enterprises and pre-existing elites, was a crucial part of ‘empire building’. The imperial powers sought to ‘instrumentalize’ existing religious, political, and economic elites’ and harness them to the new imperial-centered division of labor. Pre-existing economic activity, including local manufacturers and agricultural producers, which competed with imperial industrial exporters, were destroyed and replaced by malleable local traders and importers (compradors). In summary, the military dimensions of empire building were informed by economic interests in the mother country. The occupation was pre-eminently concerned with preserving local collaborative powers and, above all, restoring and expanding the intensive and extensive exploitation of local resources and labor, as well as the capture and saturation of local markets with goods from the imperial center.

“Empire-building” Today

The results of contemporary US military interventions and invasions stand in stark contrast with those of past imperial powers. The targets of military aggression are selected on the basis of ideological and political criteria. Military action does not follow the lead of ‘pioneer’ economic entrepreneurs – like the British East India Company. Military action is not accompanied by large-scale, long-term capitalist enterprises. Multi-national construction companies of the empire, which build great military bases are a drain on the imperial treasury.

Contemporary US intervention does not seek to secure and take over the existing military and civilian state apparatus; instead the invaders fragment the conquered state, decimate its cadres, professionals and experts at all levels, thus providing an entry for the most retrograde ethno-religious, regional, tribal and clan leaders to engage in intra-ethnic, sectarian wars against each other, in other words – chaos. Even the Nazis, in their expansion phase, chose to rule through local collaborator elites and maintained established administrative structures at all levels.

With US invasions, entire existing socio-economic structures are undermined, not ‘taken over’: all productive activity is subject to the military priorities of leaders bent on permanently crippling the conquered state and its advanced economic, administrative, educational, cultural and social sectors. While this is militarily successful in the short-run, the medium and long-term results are non-functioning states, not a sustained inflow of plunder and expanding market for an empire. Instead what we have is a chain of US military bases surrounded by a sea of hostile, largely unemployed populations and warring ethno-religious groups in decimated economies.

The US claims to ‘world leadership’ is based exclusively on failed-state empire building. Nevertheless, the dynamic for continuing to expand into new regions, to militarily and politically intervene and establish new client entities continues. And, most importantly, this expansionist dynamic further undermines domestic economic interests, which, theoretically and historically, form the basis for empire. We, therefore, have imperialism without empire, a vampire state preying on the vulnerable and devouring its own in the process.

Empire or Vampire: The Results of US Global Warfare

Empires, throughout history, have violently seized political power and exploited the riches and resources (both material and human) of the targeted regions. Over time, they would consolidate a ‘working relation’, insuring the ever-increasing flow of wealth into the mother country and the expanding presence of imperial enterprises in the colony. Contemporary US military interventions have had the opposite effect after every recent major military conquest and occupation.

Iraq: Vampires Pillage

Under Saddam Hussein, the Republic of Iraq was a major oil producer and profitable partner for major US oil companies, as well as a lucrative market for US exports. It was a stable, unified secular state. The first Gulf War in the 1990s led to the first phase of its fragmentation with the de facto establishment of a Kurdish mini-state in the north under US protection. The US withdrew its military forces but imposed brutal economic sanctions limiting economic reconstruction from the devastation of the first Gulf War. The second US-led invasion and full-scale occupation in 2003 devastated the economy and dismantled the state dismissing tens of thousands of experienced civil servants, teachers and police. This led to utter social collapse and fomented ethno-religious warfare leading to the killing, wounding or displacement of millions of Iraqis. The result of GW Bush’s conquest of Baghdad was a ‘failed state’. US oil and energy companies lost billions of dollars in trade and investment and the US economy was pushed into recession.

Afghanistan: Endless Wars, Endless Losses

The US war against Afghanistan began with the arming, financing and political support of Islamist jihadi-fundamentalists in 1979. They succeeded in destroying and dismantling a secular, national government. With the decision to invade Afghanistan in October 2001 the US became an occupier in Southwest Asia. For the next thirteen years, the US-puppet regime of Hamad Karzai and the ‘NATO coalition’ occupation forces proved incapable of defeating the Taliban guerrilla army. Billions of dollars were spent devastating the economy and impoverishing the vast majority of Afghans. Only the opium trade flourished. The effort to create an army loyal to the puppet regime failed. The forced retreat of US armed forces beginning in 2014 signals the bitter demise of US ‘empire building’ in Southwest Asia.

Libya: From Lucrative Trading Partner to Failed State

Libya, under President Gadhafi, was evolving into a major US and European trading partner and influential power in Africa. The regime signed large-scale, long-term contracts with major international oil companies that were backed by a stable secular government. The relationship with the US and EU was profitable. The US opted to impose a ‘regime change’ through massive US-EU missile and bombing strikes and the arming of a motley collection of Islamist terrorists, ex-pat neo-liberals and tribal militias. While these attacks succeeded in killing President Gadhafi and most of his family (including many of his grandchildren) and dismantling the secular Libyan government and administrative infrastructure, the country was ripped apart by tribal war-lord conflicts, political disintegration and the utter destruction of the economy. Oil investors fled. Over one million Libyans and immigrant workers were displaced. The US and EU ‘partners-in-regime-change’ have even fled their own embassies in Tripoli – while the Libyan ‘parliament’ operates off-shore from a casino boat. None of this devastation would have been possible under President Gadhafi. The US vampire bled its new prize, Libya, but certainly could not incorporate it into a profitable ‘empire’. Not only were its oil resources denied to the empire, but even oil exports disappeared. Not even an imperial military base has been secured in North Africa!

Syria: Wars on Behalf of Terrorists not Empire

Washington and its EU allies backed an armed uprising in Syria hoping to install a puppet regime and bring Damascus into their “empire”. The mercenary assaults have caused the deaths of nearly 200,000 Syrians, the displacement of over 30% of the population and the seizure of the Syrian oil fields by the Sunni extremist army, ISIS. ISIS has decimated the pro-US mercenary army, recruiting and arming thousands of terrorists from around the world It invaded neighboring Iraq conquering the northern third of that country. This was the ultimate result of the deliberate US dismantling of the Iraqi state in 2003.

The US strategy, once again, is to arm Islamist extremists to overthrow the secular Bashar Assad regime in Damascus and then to discard them for a more pliable client. The strategy ‘boomeranged’ on Washington. ISIS devastated the ineffective Iraqi armed forces of the Maliki regime in Baghdad and America’s much over-rated Peshmerga proxy ‘fighters’ in Iraqi ‘Kurdistan’. Washington’s mercenary war in Syria didn’t expand the ‘empire’; indeed it undermined existing imperial outposts.

The Ukrainian Power Grab, Russian Sanctions and Empire Building

In the aftermath of the collapse of the USSR, the US and EU incorporated the Baltic, Eastern European and Balkan ex-communist countries into their orbit. This clearly violated major agreements with Russia, by incorporating most of the neo-liberal regimes into NATO and bringing NATO forces to the very border of Russia. During the corrupt regime of Boris Yeltsin, the ‘West’ absolutely looted the Russian economy in co-operation with local gangster – oligarchs, who took up EU or Israeli citizenship to recycle their pillaged wealth. The demise of the vassal Yeltsin regime and the ascent and recovery of Russia under Vladimir Putin led the US and EU to formulate a strategy to deepen and extend its ‘empire’ by seizing power in the Caucuses and the Ukraine. A power and land grab by the puppet regime in Georgia attacking Russian forces in Ossetia in 2012 was decisively beaten back. This was a mere dress rehearsal for the coup in Kiev. In late 2013-early 2014, the US financed a violent rightwing putsch ousting the elected government and imposing a hand-picked pro-NATO client to assume power in Kiev.

The new pro-US regime moved quickly to purge all independent, democratic, federalist, bilingual and anti-NATO voices especially among the bi-lingual citizens concentrated in the South-Eastern Ukraine. The coup and the subsequent purge provoked a major armed uprising in the southeast, which successfully resisted the invading NATO-backed neo-fascist armed forces and private armies of the oligarchs. The failure of the Kiev regime to subdue the resistance fighters of the Donbass region resulted in a multi-pronged US-EU intervention designed to isolate, weaken and undermine the resistance. First and foremost they attempted to pressure Russia to close its borders on the eastern front where hundreds of thousands of Ukrainian civilians eventually fled the bombardment. Secondly, the US and EU applied economic sanctions on Russia to abandon its political support for the southeast region’s democratic and federalist demands. Thirdly, it sought to use the Ukraine conflict as a pretext for a major military build-up on Russia’s borders, expanding NATO missile sites and organizing an elite rapid interventionist military force capable of bolstering a faltering puppet regime or backing a future NATO sponsored putsch against any adversary.

The Kiev regime is economically bankrupt. Its war against its own civilians in the southeast has devastated Ukraine’s economy. Hundreds of thousands of skilled professionals, workers and their families have fled to Russia. Kiev’s embrace of the EU has resulted in the breakdown of vital gas and oil agreements with Russia, undermining the Ukraine’s principle source of energy and heating with winter only months away. Kiev cannot pay its debts and faces default. The rivalries between neo-fascists and neo-liberals in Kiev will further erode the regime. In sum, the US-EU power grab in the Ukraine has not led to the effective ‘expansion of empire’; rather it has ushered in the total destruction of an emerging economy and precipitated a sharp reversal of financial, trade and investment relations with Russia and Ukraine. The economic sanctions against Russia exacerbate the EU current economic crisis. The belligerent posture of military confrontation toward Russia will result in an increase in military spending among the EU states and further divert scarce economic resources form job creation and social programs. The loss by significant sectors of the EU of agricultural export markets, as well as the loss of several billion-dollar military-industrial contracts with Russia, certainly weakens, rather than expands, the ‘empire’ as an economic force

Iran: 100 Billion Dollar Punitive Sanctions Don’t Build Empires

The US-EU sanctions on Iran carry a very high political, economic and political price tag. They do not strengthen empire, if we understand ‘empire’ to mean the expansion of multi-national corporations, and increasing access to oil and gas resources to ensure stable, cheap energy for strategic economic sectors within the imperial center.

The economic war on Iran has been at the behest of US allies, including the Gulf Monarchies and especially Israel. These are dubious ‘allies’ for US ‘empire’ . . . widely reviled potentates and a racist regime which manage to exact tribute from the imperial center!

In Afghanistan, Iraq and elsewhere, Iran has demonstrated its willingness to co-operate in power sharing agreements with US global interest. However, Iran is a regional power, which will not submit to becoming a vassal state of the US. The sanctions policy has not provoked an uprising among the Iranian masses nor has it led to regime change. Sanctions have not weakened Iran to the extent of making it an easy military target. While sanctions have weakened Iran’s economy, they has also worked against any kind of long-range empire building strategy, because Iran has strengthened its economic and diplomatic ties with the US’ rivals, Russia and China.

Conclusion

As this brief survey indicates, US-EU wars have not been instruments of empire-building in the conventional or historical sense. At most they have destroyed some adversaries of empire. But these have been pyrrhic victories. Along with the overthrow of a target regime, the systematic break-up of the state has unleashed powerful chaotic forces, which have doomed any possibility of creating stable neo-colonial regimes capable of controlling their societies and securing opportunities for imperialist enrichment via economic exploitation.

At most the US overseas wars have secured military outposts, foreign islands in seas of desperate and hostile populations. Imperial wars have provoked continuous underground resistance movements, ethnic civil wars and violent terrorist organizations that threaten ‘blowback’ on the imperial center.

The US and EU’s easy annexations of the ex-communist countries, usually via the stage-managed ballot-box or ‘color revolutions’, led to the take-over of great national wealth and skilled labor. However, Euro-American empires bloody campaigns to invade and conquer the Middle East, South Asia, North Africa and the Caucuses have created nightmarish ‘failed states’ – continuously draining imperial coffers and leading to a state of permanent occupation and warfare.

The bloodless takeover of the Eastern European satellites with their accommodating, corrupt elites has ended. The 21st century reliance on militarist strategies contrasts sharply with the successful multi-pronged colonial expansions of the 19th–20th century, where economic penetration and large scale economic development accompanied military intervention and political change. Today’s imperial wars cause economic decay and misery within the domestic economy, as well as perpetual wars abroad, an unsustainable drain.

The current US/EU military expansion into Ukraine, the encirclement of Russia, NATO missiles aimed at the very heart of a major nuclear power and the economic sanctions may lead to a global nuclear war, which may indeed put an end to militarist empire-building… and the rest of humanity.

The Vindication of Daniel Ortega

0,,4477394_4,00

By toni solo

Source: Axis of Logic

North American and European economies continue to be stuck with intractable, if for the moment moderate, stagflation. Prices for most household purchases steadily increase while majority incomes stagnate. By contrast, corporate incomes increase, subsidized by Western government and Central Bank policy. The resulting increase in inequality is clearly a deliberate policy outcome responding to the weakening of Western economies relative to global counterparts led by China and Russia.

Among those counterparts, Latin America, for long one of the world’s most unequal regions, is playing a leading role demonstrating how to reduce inequality. That is true to some extent in Brazil and Argentina, but it is particularly the case in the bloc of countries grouped in the Bolivarian Alternative for the Americas (ALBA). Western governments and corporate media regularly criticise the governments of ALBA members like Venezuela, Bolivia, Ecuador and Nicaragua while omitting the solidity and consistency of those countries’ economic and social success over the last seven or eight years. Nicaragua is a perfect example of that pattern, having achieved the highest regional decline in inequality along with Bolivia and Ecuador.

A July 2013 World Bank paper “Deconstructing the Decline in Inequality in Latin America” shows that ALBA members Bolivia, Ecuador and Nicaragua are the countries that had most reduced inequality as of 2011. Nicaragua had the highest average GINI coefficient year-on-year fall of  2.6% between 2000 and 2011. The figures for Bolivia and Ecuador are 2.05 and 1.99 respectively. In terms of an overall decline in the GINI coefficient in the region the figures for the period covered by the World Bank report are that Bolivia’s dropped 15.5%, followed by Nicaragua (12.2%), Argentina (10.7%), Peru (8.7%) and Venezuela (8.5%). (The figure for Ecuador is absent because data prior to 2003 were unavailable.)

Nicaragua in macro
Nicaragua is a Central American and Caribbean country with a population now of over 6 million. For decades it was the second poorest country in the Americas. Devastated by a US government contrived war in the 1980s, from 1990 to 2007 the country was governed on neoliberal principles dictated by foreign donor governments and multilateral financial institutions like the World Bank and the International Monetary Fund. In January 2007, President Daniel Ortega took office leading the second democratically elected government of the Frente Sandinista de Liberación Nacional.

2007 was the year in which global economic crisis followed the collapse of the Western financial system. Despite Western propaganda to the contrary, the effects of that crisis clearly persist. Even so, over the last five years, in that highly adverse international economic environment, Nicaragua has maintained better growth than its Central American neighbours, averaging over 5% a year. That success is the result of socialist inspired policies, responsive to the country’s emphatically Christian culture, based on the fundamental principles of solidarity and shared responsibility in all areas of national life.

The 2013 report of the United Nation’s Economic Commission for Latin America and the Caribbean (ECLAC) places Nicaragua among the more successful regional economies on a variety of indicators. For example, between 2010 and 2013, foreign direct investment more than doubled from US$491m to US$1004m, representing a much greater percentage improvement than in Costa Rica (43.5%), Honduras (8.7%) and Guatemala (40.5%). In El Salvador, the same indicator almost doubled, but at a much lower level from US$117m to US$224m.

Nicaragua’s international trade is now well over twice the value of its exports in 2005. In Latin America and the Caribbean in 2013, only Peru had higher fixed capital growth than Nicaragua as a percentage of GDP. Nicaragua’s figure of 29.2% is about 7% greater than Costa Rica and Honduras and over double that of El Salvador or Guatemala. Price inflation has held at around 7% for the last three years. Foreign external debt is around 31% of GDP. Foreign reserves are over twice those of 2006. In August 2013, two years after Nicaragua exited its last IMF programme, the IMF’s deputy director for the western hemisphere declared Nicaragua’s economy to be solid and stable.

Global context
The current crisis in the West suggests similarities with the prolonged economic crisis in North America and Europe from 1873 to 1896. The Western powers resolved that crisis through a virulent burst of imperialist aggression, setting the stage for the global wars of the 20th Century. Since the end of World War 2 in 1945, the appearance of democracy in the West has depended on externalizing onto the majority world the costs of mitigating and managing inequality in Europe and North America.

A key witness to that fact is former French President Jacques Chirac who in the 2008 documentary “10 mai Africaphonie” stated, with uncharacteristic honesty, “We forget one thing…namely that much of the money in our wallets comes precisely from the exploitatation over centuries of Africa. Not completely, but a lot of it comes from the exploitation of Africa. So we have to show a bit of common sense. I won’t say generosity, but common sense, some justice to render to Africans… you might say ….what was taken from them. As much as necessary, if we want to avoid the worst convulsions or difficulties with the political consequences these might bring in the near future.”

As the West’s neocolonial options recede, most clearly in Asia and Latin America, the United States and its European allies embrace more than ever the logic of fascism, the alliance of corporate interests and coercive government. Domestically, their policies protect wealthy elites while cutting back on provision for education, health care and social security. Overseas, to intimidate Iran, destroy Libya and attack Syria, NATO country governments have allied themselves with feudal tyrannies like Saudi Arabia and Qatar and with Al Qaeda and other terrorist groups.

To intimidate Russia, they have funded, trained and supported murderous neonazi groups in Ukraine while deploying military resources including missile systems around Russia’s borders. To intimidate China, they harrass North Korea, encourage Japanese nationalism and increase military deployments in the Pacific. Extensive military deployment is also a key element of Western efforts to reset their countries’ neocolonial control in Africa in response to China’s growing influence there.

The perfidious dollar
Underlying these developments is the end of global dollar hegemony and the steady emergence of multipolar alternatives. China, Russia and various countries in Asia and Latin America are conducting trade more and more in their own currencies or even, in the Latin American and Caribbean ALBA framework, in kind. As Western economic dominance declines, especially relative to Russia and China, the United States and the European Union compensate increasingly overseas with terrorist subversion and outright military aggression. Their corrupt political and economic system staggers like a zombie from one crisis to the next.

The Western powers cling to vestiges of their former global power by continuing to dominate the world’s financial system and through ruthless military barbarism. Their financial dominance persists in large part because commodity prices, especially oil and gas are denominated internationally in dollars. In 1971, the US government floated the dollar in order more freely to fund the Vietnam War and its broader imperialist foreign policy. Since then, in effect, only the United States has been able to use its own credit to fund economic growth and finance deficit spending.

Every other country has needed dollars in order to ensure their people’s economic development, mainly to guarantee energy needs and attract foreign investment. Even the wealthy Eurozone countries and Japan are subject to that dollar hegemony. The US Federal Reserve and its Primary Dealer network manage dollar liquidity in the global financial system. The Primary Dealers are all subsidiaries of crooked, giant North American, European and Japanese global financial corporations, too big to fail and too big to jail. They act in close collusion with the Federal Reserve and the other Western Central Banks, monitoring and managing international financial, currency and commodities markets.

Low wages and deregulation
The various mechanisms of dollar hegemony necessarily promote deep inequality around the world because international competition to earn dollars via exports encourages low wages, restricting domestic demand in the exporting countries. Ever since the 1980s the pernicious low wage effects of dollar hegemony have been progressively compounded by neoliberal propaganda for radical deregulation, urging low taxes, attacking organized labour and dismantling financial and commercial controls, especially of international capital flows. Incomes in the West began to stagnate as the rate of profit for Western corporations slowed and former well paid jobs were outsourced overseas.

The demise of the Soviet Union signalled a deregulation boom. In Europe and North America, mergers and acquisitions increasingly concentrated corporate power, strengthening the drive for deregulation. The resulting fraudulent financial innovation and free transfer of capital across the world lead to the Long Term Capital Management debacle and the Mexican, Russian and Asian currency crises of the 1990s. Despite these disastrous outcomes and the subsequent Enron and Worldcom scandals, deregulation continued to drive asset bubbles and easy credit so as to compensate for stagnant incomes, especially in the United States, leading directly to the crisis of 2007.

Poverty reduction in Nicaragua
This dead hand of decrepit neoliberal corporate capitalism was choking the Central American economies when Daniel Ortega took office as President of Nicaragua’s second democratically elected Sandinista government in January 2007. In such a dismal international economic context, poverty reduction represented a monumental challenge. Even so, President Ortega’s Sandinista government quickly set out in an extremely determined way to reduce poverty with a policy program whose many components are worth listing, if only because they show what can be done by an extremely poor country despite largely adverse international conditions. Extreme poverty in Nicaragua has been cut from over 17%  in 2006 to just over 5% now.

Addressing intractable balance of payments difficulties, the government sought to broaden Nicaragua’s trade with Latin America, the Russian Federation, Asia  and elswhere. Similarly, the government diversified its development cooperation, maintaining links with traditional partners in North America, Europe and Asia but also deepening its relationships with Venezuela, Cuba, Mexico and Brazil. Attracting greater foreign investment was also a key policy objective. Joining the ALBA framework, led by Venezuela and Cuba, freed up around US$500 million a year to invest primarily in production but also in major social programs.

To give Nicaragua’s overwhemingly agricultural economy much needed domestic stimulus, government programmes have prioritized small and medium producers of basic grains, cattle and coffee. The cooperative sector received support and resources to develop existing production cooperatives and form new ones. Small and medium sized businesses benefited from greater access to credit. The government has prioritized tourism, ensuring that it integrates closely with other sectors of the economy, especially small and medium sized businesses.

Economic democracy
This democratization of the Nicaraguan economy has radically transformed the position of women. Flagship programmes like Zero Hunger and Zero Usury, as well as property titling programmes and social housing are all directed at women beneficiaries. President Daniel Ortega’s insistence on genuine democracy and national reconciliation made possible tripartite agreement on a minimum wage framework between government, labour unions and employers organizations. Since 2010, that framework has ensured an annual increase in the minimum wage several percentage points greater than the rate of inflation.

In the last three years, those domestic stimulus measure were accompanied by administrative measures relating to equitable tax and social security reform which have helped significantly increase government revenue and stabilize the social security system for the foreseeable future. As Nicaragua’s economy generates progressively more formal employment, both tax revenue and social security income benefit. ECLAC reports that while formal employment has declined throughout the rest of the region, in Nicaragua it has grown steadily through 2012 and 2013

One key mechanism reducing inequality has been to use subsidies in the most sensitive areas affecting ordinary families’ costs. Apart from free health care and education, the government subsidizes the cost of public transport. Bus companies in the capital Managua receive preferential prices for fuel, oil, tyres and spare parts in exchange for pegging fares at 10 US cents. Taxis in Managua as well as inter-urban and acuatic transport in the rest of the country also receive similar benefits enabling the Transport Ministry and local municipalities to negotiate favourable fare tariffs for transport users.

Low income families benefit from subsidized electricity for consumers using under 150Kw a month. The government also operates a retail network offering basic food stuffs at preferential prices through local general stores. Over 58,000 families have benefited from subsidized or free housing. Low-income families nationwide have benefited from a free construction materials program enabling impoverished families to repair defective roofs.

Other social investment programs include assistance for people, especially children, with disability as well as food support for vulnerable groups such as the elderly. The Amor para los más Chiquitos programme has helped around 32,000 very young children at risk, ensuring they enjoy care, education and attention rather than ending up on the streets. That programme has worked with over 420,000 families providing advice and guidance in the care of young children under 6 years old. The government’s efforts to promote social stability also encompass property titling programs that have issued over 180,000 title deeds bringing security of tenure to over 800,000 people.

Health, education, infrastructure
Health and education are crucial expenses for most families in Nicaragua as everywhere else. The availability of free public health care has made a massive difference to low income families who cannot afford private care. The government is steadily equipping the public health system with the resources it needs to improve its services year by year. Emphasising preventive health care, government vaccination programs applied over 4,100,000 doses in 2013. The Casa Materna programme, almost tripling facilities to assist expectant mothers in rural areas, has helped the government reduce maternal mortality, which fell 35% from 2007 to 50 deaths per 100,000 live births in 2012.

Likewise in education, government expenditure improving infrastructure is accompanied by a range of programmes supporting low income families. The Merienda Escolar programme for adequate nutrition for primary school children, ensures provision of meals for over 1,000,000 pre-school and primary school children. Low income families also get help with schooling inputs. Apart from regular primary and secondary education, the government has invested heavily in vocational technical training for young people and improved access to education in rural areas. Follow up to the successful literacy programs of the government’s early years is consolidating the eradication of illiteracy. Education programmes for children with special needs include the integration of children with slight disability into the regular school system as well as dedicated programmes for children whose disability is more severe.

The transformation of government social and economic policy is physically much more obvious in terms of energy and infrastructure. National road, port and airport infrastructure has been almost completely renovated. Construction is on schedule of the new oil refinery being built near León with the Venezuelan State oil company PDVSA. Dependence on oil fired thermal generating stations has dropped from over 80% to less than 50% of the country’s generating capacity thanks to investment in renewable energy sources. Work on the long delayed Brazilian financed Tumarin hydroelectric project on Nicaragua’s Caribbean Coast should begin later this year. Also by the end of this year the results of the feasibility studies for the Interoceanic Canal will permit work to begin on that epoch making project and its sub-projects. These include an interoceanic rail link and pipeline, new airports and two deep water ports on the country’s Pacific and Caribbean coasts.

Confidence, security, democracy
Domestic and international confidence has been fundamental in making all this transformational social and economic investment happen. Despite a comparative lack of resources, Nicaragua’s police and army are acknowledged to have the best record in the region combating narcotics and other organized crime. Overseas, Nicaragua’s community oriented policing is recognized as a model, largely because the country has prevented the spread of the gang culture prevalent in neighbouring El Salvador and Honduras. While common delinquency remains a persistent problem, enhanced security in rural areas has been crucial in encouraging the small and medium farm production that has transformed Nicaragua’s agricultural economy since 2006.

The success of the Sandinista government’s economic policies has resulted from consensus-building  with private business organizations and labour unions by means of constant consultation with all sectors of the national economy. Similarly, government social policy has been developed in close collaboration with the country’s municipal authorities. Many resources and implementation of much social and economic policy have been channelled through the country’s 153 local authorities. The positive impact of that strategic partnership is most obvious from investment in improved municipal infrastructure, in sports facilities for young people and in support for local small and medium sized businesses.

Another fundamental component in the success of President Ortega’s social and economic strategy  has been the deliberate and active promotion of the role of women. Previously, women in Nicaragua were in effect structurally excluded from both economic and political life, denied their legitimate role in decision making and as economic agents. Nicaragua is now acknowledged among the world leaders in guaranteeing political representation for women. Less well known is the transformational role of women in Nicaragua’s economy through access to resources via government programs like Zero Hunger and Zero Usury and ensuring property titles to families previously without secure tenure. All those programs prioritize women beneficiaries.

More specific to Nicaragua has been the consolidation of the country’s Caribbean Coast into the national economy. That process has been a continuation of the historic autonomy project for Nicaragua’s Caribbean coast initiated under the first Sandinista government in the 1980s. In the next five to ten years, the economy of the Caribbean coast is likely to change radically. It has become an ever more popular tourist destination. The recovery in 2012 of Nicaragua’s maritime territory, usurped for decades by Colombia, has opened up new commercial opportunities. The Interoceanic Canal and its sub-projects will definitively end the area’s historic and geographic separation from Nicaragua’s Pacific coast.

Daniel Ortega – Central America’s leading regional statesman

Based on broad consultation and consensus, President Daniel Ortega has implemented strategic policies through a ministerial team led operationally by Rosario Murillo, successfully managing all the various complex factors in relation to social investment, the macro and domestic aspects of economic policy, infrastructure development and energy policy, fiscal and administrative reform, trade and agricultural renewal and security. He has done so constrained by the continuing international economic crisis and in the face of relentless, vicious national and international disinformation campaigns. But the results speak for themselves and explain why Nicaragua’s political opposition have been unable to muster more than 10% support nationally for well over a year, while support for President Ortega is consistently well over 60%.

Aside from the incomparable figure of Fidel Castro, Daniel Ortega is the most outstanding statesman of Central America and the Caribbean of the last thirty years. Rosario Murillo stands with Dilma Rousseff and Cristina Kirchner among Latin America’s women leaders transforming the region’s societies and economies. Under the leadership of Daniel Ortega and Rosario Murillo, Nicaragua’s government team has proved by any measure to be among the most effective in Latin America and the Caribbean. Many Western government officials will acknowledge that in private. Multilateral organizations have recognized it publicly for years now. It is long past time for the Western corporate and alternative media to recognize it too.


Arrest of Middle Eastern Mercenary in Venezuela, a Possible Game Changer

By Arturo Rosales, writing from Caracas

Originally posted at Axis of Logic

In the conclusion to the recently published article on Axis of Logic Déjà vu – History tends to repeat itself we ask rhetorically what the next phase of destabilization will be in Venezuela in the US’ quest to secure the largest proven oil reserves in the world.

As of yesterday we may have the first evidence of an answer to this scary and ultimately decisive question. This could be a game changer in the development of the current destabilization effort in Venezuela by paid mercenaries masquerading as “disillusioned students”.

The breakthrough

At 4am on Monday 24th February in a hotel in northern part of the city of Maracay in Aragua state, an individual of Middle Eastern origin and two other people were captured by the Bolivarian Security Forces (SEBIN). Aragua governor, Tareck El Aissami reported the evidence available at that time in several posts on his Twitter account, @TareckPSUV.

El Aissami stated that they had captured a “big fish” in Aragua who was identified as Jayssam Mokded Mokded along with two other people in his company, both of whom have military backgrounds and training.

Jayssam Mokded Mokded


In the raid of the hotel room the security forces found electronic communications equipment – 11 satellite phones for communicating with the US and Colombia – computers and documents linking him with companies in Miami. His vehicle, a Toyota Model FJ was armored with bullet proofing and in it explosives, a keg of gun powder and logistical equipment to set up barricades in the streets were discovered.

It was also established that Mokded Mokded has access to a bank account in Miami with some US$250,000 and had made various transfers of hundreds of thousands of dollars to Miami and other destinations. In Colombia he has another bank account with a balance of some US$10,000. It was also noted that all his dealings with Venezuelan banks were limited to Banesco – a bank that had been involved in laundering finance for the 2002 – 2003 coup attempts but which was said to have changed its ways in recent years.

The purpose

All the evidence points to the fact that Mokded Mokded was fully equipped to carry out terrorist acts in Venezuela and it is known that he had been staying at the hotel in question since February 9th. The Venezuela security forces had been tailing him for several days and he had made visits to several upper and middle class urbanizations. The suspicion is that these visits were reconnaissance missions in order to find the most devastating spot to park car bombs and start sowing terror in Venezuela.

Bombs have been used in the last decade to sow terror in Venezuela and the perpetrators of the 2003 attacks, the Colina brothers, escaped to Florida where a judge refused to extradite them back to Venezuela. This is another example of the US protecting terrorists that carry out black operations against “unfriendly nations”. The last car bomb planted in that terror campaign by the opposition was the one placed under the seat of Danilo Anderson’s Toyota SUV, killing him on November 17th 2004. Anderson was the state prosecutor investigating those who carried out the April, 2002 coup attempt.

Reaction in Florida

Mokded Mokded lives in Doral, a city located in north-central Miami-Dade County in the US state of Florida where he is known as a “businessman”. Florida records show Mokded Mokded is president of CJ International Services, 10580 NW 27th St., in Doral.  He is also the president of Soloblackberry.net.inc with offices in Doral and Porlamar, Venezuela.

On Saturday, thousands met at J.C. Bermudez Park in Doral to express their solidarity with the opposition in Venezuela. Miami’s Doral area is known as “Doralzuela” for its anti-Chavez Venezuelan migrant population which is as radical and as permeated with hatred against chavista Venezuela as is the population of “Little Havana” against fidelista Cuba.

Concerns and Conclusions

The worrying aspects of the arrest of Mokded Mokded is that his possession of explosives, gunpowder and evidence of his reconnaissance for placing car bombs could mean that a new phase of terror is about to be unleashed on Venezuela.

Looking at this development from any angle, it could be a game changer,
escalating violence and hatred, the fuel of these protests throughout the country.

State Governor El Aissami has confirmed that authorities are already on the trail of other mercenaries and will hopefully be able to extract confessions and information from Mokded Mokded and his accomplices about other terror cells waiting to act in Venezuela.

In the hotel raid, a communiqué was found from Mokded Mokded to the Capriles Radonski presidential campaign in Venezuela demonstrating that politically, this “businessman” and apparent terrorist has been in contact with the Venezuela opposition. The opposition is getting nearer to full exposure as collaborators with terrorists “brought here” for the overthrow of the democratically-elected government of Nicolas Maduro.

Actually, none of this is a great surprise but cause for great concern as more innocent lives are now at risk. Massive loss of life due to any terrorist acts will be manipulated by the international media in cahoots with US imperialist lies to blame the Maduro government – as it has been in Syria against President Bashar al Assad.

It is the same script written either by writers in the CIA at Langley or by aides of John Kerry in the State Department – both consorting with the Father of the Paramilitary Death Squads, Colombia’s Alvaro Uribe Vélez.

Message of Peace

Last Monday (Sept. 2), the White House received a letter calling for peace in Syria from Venezuelan President Nicolas Maduro on behalf of Venezuela and “independent voices who love humanity”. Not surprisingly, no mention of the letter was made by corporate media but many of us are aware of it thanks to foreign and independent media such as the Venezuela News Agency and Axis of Logic. Though the letter seems to be speaking to the public persona of Obama and not the reality of who he really is, it could be interpreted as idealistic or ironic; a way of highlighting the differences between the two. Maduro also uses a number of memorable quotes to support his argument from activists such as Simon Bolivar, Susan Sontag, Malcolm X, John Lennon, Howard Zinn and Martin Luther King.

Via: Axis of Logic:

What we do in pursuit of lasting peace and stability of any nation on the planet will never be enough, because the wellbeing of a people exalts us while their pain diminishes us to the vilest inhumanity.

We, from the love of peace that the Venezuelan people cultivate, reject war and say no to bombs, desolation and death. That is our hope, the same that fed the soul of Martin Luther King when he said:”If I knew that the world would end tomorrow, I, today would still plant a tree”. This tree is the one we want to flourish in these tense and ominous times.

I aspire and hope that the call that I have made to you in this letter, Mr. President, doesn’t fall on empty ears. I aspire and hope that you rectify and proceed to stop the war machine that has already been set up. I aspire and I hope that you stop the beating of the funeral drums of war on Syria. I pray for it to be so.

Peace in Syria and the world!

No War!

Nicolas Maduro

Chavez lives, the homeland continues!

Read the complete letter here: http://axisoflogic.com/artman/publish/Article_66001.shtml