Tag Archives: Mark Weisbrot

US Again Complicit in an Illegal Coup, This Time in Bolivia

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Pen and watercolor of Bolivia’s Evo Morales. (Flickr/Arturo Espinosa)

By Marjorie Cohn

Source: Consortium News

Once again, the United States is complicit in an illegal coup d’état in Latin America, this time in Bolivia. On Nov. 10, a right-wing, anti-indigenous group seized power after the Bolivian military’s removal of President Evo Morales, who had declared victory in the Oct. 20 presidential election.

The United States’ fingerprints are all over the coup. Advisers from the U.S. Southern Command have been stationed on Bolivia’s border with Argentina, Ivanka Trump made a surprising visit to an Argentine province near the Bolivian border in September, the pro-U.S. Organization of American States (OAS) cast unfounded doubt on Morales’s election victory, and the U.S.’s National Endowment for Democracy provided suspicious grants to Bolivia.

At least 32 people have been killed and hundreds injured since the coup began. Sacha Llorenti, Bolivian ambassador to the United Nations, told Democracy Now!, “We are going through not just a coup d’état, but a violent one.” Indeed, it has resulted in “the rise of a far-right regime of terror,” professor Gabriel Hetland wrote in The Washington Post.

Morales — Bolivia’s first indigenous leader in a country where 65 percent of the people are indigenous — received 10 percent more votes than Carlos Mesa, the second-place candidate who has close ties to the U.S. government. Mesa was in regular communication with U.S. officials who were trying to destabilize Morales, U.S. government cables published by WikiLeaks reveal.

The day after the election, the U.S.-funded OAS sought to delegitimize the election results. “The OAS Mission expresses its deep concern and surprise at the drastic and hard-to-explain change in the trend of the preliminary results revealed after the closing of the polls,” it stated.

But the Center for Economic and Policy Research (CEPR) published a comprehensive statistical analysis on Nov. 8 that found no evidence of fraud or irregularities in the election and determined that the results reflected highly similar patterns from past elections. Other research conducted by CELAG (Centro Estratégico Latinoamericano de Geopolítica) confirmed CEPR’s findings and identified insufficient evidence to support the assertions in the OAS statement.

CEPR Co-director Mark Weisbrot noted in an op-ed for Market Watch, “The OAS isn’t all that independent at the moment, with the Trump administration actively promoting this military coup, and Washington having more right-wing allies in the OAS than they did just a few years ago.”

The OAS was established during the Cold War to prevent the proliferation of leftist governments. USAID considers OAS a critical tool in “promot[ing] US interests in the Western hemisphere by countering the influence of anti-US countries” such as Bolivia.

The Nov. 10 military coup led to the forced resignation of Morales, who received asylum in Mexico. Right-wing politician Jeanine Añez declared herself interim president, and Donald Trump immediately recognized her illegitimate claim to the presidency. Añez then issued a decree immunizing the military from criminal liability “for carrying out necessary actions in their legitimate defense while performing their constitutional duties.” Morales supporters accused Añez of giving soldiers “carte blanche” to shoot demonstrators. Bolivia’s human rights ombudsman and reporters have documented widespread injuries and fatalities from gunshots.

U.S. Involvement

During Morales’s nearly 14 years in office, his Movement Towards Socialism (MAS) party reduced poverty by 42 percent and extreme poverty by 60 percent. It cut unemployment by 50 percent and nearly tripled the per-capita G.D.P. “It’s indisputable that Bolivians are healthier, wealthier, better educated, living longer and more equal than at any time in this South American nation’s history,” Anthony Faiola wrote in The Washington Post.

There was discontent about Morales seeking a fourth term among some sectors in Bolivia, who thought there should be space for new leadership. But Morales had a strong record of establishing policies to help the people of Bolivia, which angered the U.S. government, Western corporations and the corporate media, “who function as ideological shock troops against leftist governments in Latin America,” Alan MacLeod wrote at Fairness and Accuracy in Reporting.

The U.S. and Argentine governments helped to engineer the Bolivian coup, Stella Calloni reported in Resumen: Latinoamerico. She cited the presence of advisers from the U.S. Southern Command on the Argentine border with Bolivia.

Calloni also documented “the surprising trip of Ivanka Trump” to the Argentine province of Jujuy near the Bolivian border on Sept. 4-5. Accompanied by 2,500 U.S. agents and Undersecretary of State John Sullivan, Ivanka Trump was ostensibly there to “visit” a small NGO dedicated to furthering women’s rights, and she delivered an “aid” package of $400 million for “road works.” Alicia Canqui Condori, national representative of MAS, said that, “in Jujuy Donald Trump’s daughter had met with Gov. Gerardo Morales to plan what happened in Bolivia.”

Moreover, according to Calloni, Bolivian Gen. Williams Kaliman, who “suggested” that Morales resign after the election, traveled to the United States 72 hours after the coup began and he received $1 million from the U.S. embassy in Bolivia. Like many Latin American strongmen over the years, at least six of the top military leaders involved in the coup, including Kaliman, were trained at the notorious U.S. Army School of the Americas (now called the Western Hemisphere Institute for Security Cooperation) in Fort Benning, Georgia.

Months before the coup, Bolivia concluded a $2.3 billion deal with a Chinese consortium to mine lithium. Bolivia has 70 percent of the world’s supply of lithium, which is used in car batteries, electronic devices and weapons systems. “The idea that there might be a new social compact for the lithium was unacceptable to the main transnational mining companies,” Vijay Prashad wrote. U.S. and Canadian companies sought to make a lithium agreement with Bolivia but they could not meet Morales’s conditions. “Morales himself was a direct impediment to the takeover of the lithium fields by the non-Chinese transnational firms,” according to Prashad. “He had to go.”

Meddling in Latin America

U.S. complicity in the Bolivian coup follows in a sordid tradition of meddling in the political and economic affairs of Latin American countries. “For many years, the US government has provided overt financial support to opposition political parties and civic groups, including to many of the groups that have been engaged in violent insurrections and coup plotting since at least 2008,” Thomas Field wrote in Jacobin.

One key vehicle that the U.S. government uses as a cover for its imperialist policies is the National Endowment for Democracy (NED). After disturbing revelations of covert CIA operations in the second half of the 1970s, NED was established under President Ronald Reagan. “The idea was that the NED would do somewhat overtly what the CIA had been doing covertly for decades, and thus, hopefully, eliminate the stigma associated with CIA covert activities,” William Blum wrote in 2005. NED co-founder Allen Weinstein concurred, stating in 1991, “A lot of what we do today was done covertly 25 years ago by the CIA.” Although ostensibly a private, nonprofit organization, NED is largely funded by the United States. “In effect,” Blum noted, “the CIA has been laundering money through NED.”

Peter Haberfeld, a retired lawyer and labor organizer who has studied the “Pink Tide” governments in Latin America, documented NED grants in Bolivia. He told Truthout that “between 2016 and 2019, NED gave grants to over 30 organizations for ‘democracy promotion’ in Bolivia. The grants total $3,209,887.”

Haberfeld said the grants were officially earmarked for “lofty objectives such as expanding participation by women, youth, media and entrepreneurs in a vibrant political process, particularly in connection with elections,” but cautioned “it is wise to be suspicious.” Haberfeld cited author Neil A. Burron, who wrote in “The New Democracy Wars: The Politics of North American Democracy Promotion in the Americas,” that “democracy promotion is typically formulated to advance commercial, geopolitical and security objectives that conflict with a genuine commitment to democracy development.” Burron noted, “For the U.S., the political manipulation of democracy promotion in support of a North American-led regional order is a continuation of long-standing forms of intervention [that have been] used as a license to meddle in the domestic affairs of others.”

NED was complicit in the Iran-Contra affair in the 1980s, manipulated the 1990 Nicaraguan elections, heavily funded the 2002 failed coup attempt against socialist President Hugo Chavez in Venezuela, and supported the opposition to progressive President Jean-Bertrand Aristide in Haiti in the 1990s. Between 1990 and 1992, NED donated a quarter-million dollars to the Cuban-American National Foundation, the violent anti-Castro group based in Miami.

In 2018, under the guise of “democracy,” “human rights” and “entrepreneurship,” NED funneled more than $23 million to opposition groups in Latin American countries, including Venezuela, Nicaragua, Cuba and Bolivia.

Former National Security Advisor John Bolton called Venezuela, Cuba and Nicaragua the “Troika of Tyranny” in November 2018. A few months later, in April 2019, the U.S. government orchestrated another unsuccessful coup in Venezuela. Juan Guaidó, Washington’s chosen puppet to seize power from President Nicolás Maduro, was funded by NED.

Trump not only took aim at the progress President Barack Obama had made toward normalization of relations with Cuba, he has escalated the U.S. economic war on Cuba and unleashed untold numbers of lawsuits that threaten to destroy the fragile Cuban economy.

The Obama administration, led by former Secretary of State Hillary Clinton, supported the 2009 coup in Honduras. The fraudulent election following the coup was financed by NED and the State Department, ushering in a repressive and militarized regime. Conditions deteriorated, leading to the exodus of thousands of Honduran children fleeing north.

U.S. Complicity Is Illegal

U.S. complicity in the coup in Bolivia is illegal under both U.S. and international law. The United Nations Charter prohibits the use of or threat to use force against the territorial integrity or political independence of another nation. The International Covenant on Civil and Political Rights guarantees the right to self-determination.

The Charter of the Organization of American States, to which the U.S. is a party, forbids any country from intervening in the internal or external affairs of another country. The OAS charter declares that, “Every State has the right to choose, without external interference, its political, economic, and social system and to organize itself in the way best suited to it, and has the duty to abstain from intervening in the affairs of another State.”

The Foreign Assistance Act forbids the United States from assisting a country “whose duly elected head of government is deposed by military coup or decree.”

There has been global condemnation of the coup. Sixty-four organizations of jurists, lawyers, NGOs, social movements and trade unions from around the world, including the International Association of Democratic Lawyers and the National Lawyers Guild, sent a letter to the UN High Commissioner for Human Rights Michelle Bachelet, urging her to strongly condemn the human rights violations resulting from the coup.

Fourteen members of the House of Representatives sent a letter to Secretary of State Mike Pompeo saying they were “deeply concerned” about the contribution of the Trump administration to the “escalating political and human rights crisis” in Bolivia.

Over 800 scholars, activists and public figures published an open letter demanding that the United States and the international community halt all support to the right-wing, anti-indigenous regime that took power after the military coup.

Veterans For Peace condemned the racist coup in Bolivia and demanded an end to U.S. intervention in Latin America:

Veterans For Peace stands in solidarity with the Indigenous majority in Bolivia who are resisting the racist, right-wing takeover of their democracy. We demand that the coup be stopped and democracy restored in Bolivia. As military veterans who have been used and abused in too many unjust wars, we demand an end to 200 years of U.S. intervention in Latin America.

The situation in Bolivia is volatile and there is danger it could devolve into civil war. This is the time to urge senators and Congress members to end all U.S. support for the illegitimate regime, demand free and fair elections with all political parties represented, and insist that fundamental human rights of all Bolivians are protected.

Neoliberalism: Serving the Interests of the International Business Elitists

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By Edward S. Herman

Source: Dissident Voice

Mark Weisbrot, a co-director with Dean Baker of the Center for Economic and Policy Research (CEPR), has written an enlightening book that pulls together many of the analyses that CEPR has been producing over the past several decades. The book, Failed: What the “Experts” Got Wrong about the Global Economy, is important and useful because it provides an alternative framework of analysis to the one used by establishment experts, media and policy-makers. What is more, this alternative framework and description of reality is well supported by empirical evidence and is convincing. It is marginalized in the mainstream because it runs counter to the interests of the powerful, who over the past three decades, have successfully pushed for a neoliberal world order that scales back the earlier welfare state advances and pursues trickle-down economics and the well-being of the affluent.

In fact, an important feature of Weisbrot’s analysis is his recognition of the extent to which policy failures have flowed from biased analyses that serve a small elite and punish the majority, and that policy successes have often followed the loss of power by those serving elite interests. His first chapter is entitled “Troubles in Euroland: When the Cures Worsen the Disease,” whose central theme is that the long crisis and malperformance of Europe’s economies, and especially the weaker ones of Greece, Portugal, Spain and to a lesser extent, Italy, were in large measure the result of poor policy choices. The crisis, which dates back to 2008, was not due to high sovereign debt, which was only threateningly high in Greece, but rather the refusal of the policy-making “troika,” the European Central Bank (ECB), European Community and IMF, to carry out expansionary policies that would allow the poor countries to grow out of their deficit position.

The Fed met the U.S. crisis with an easy money program which, when combined with modest fiscal expansion efforts, quickly mitigated this crisis (although the fiscal actions fell short of what was needed for a full recovery). But the ECB refused to carry out a comparable expansion policy, and there was no Europe-wide fiscal program in the EU system. So the poor countries were forced to depend for recovery on an “internal devaluation” of cutbacks in mainly social budgets, given that external devaluations for individual countries were ruled out by the use of a common currency, the euro. This didn’t do the job, so the eurozone remained in a depressed state, even up to the present.

Weisbrot shows that this policy failure was deliberate, with the troika leaders–mainly the ECB–taking advantage of the weaker countries’ vulnerability to force on them structural and policy changes that served the interests of the international business elite. These changes, including cutbacks on public outlays for education, health care, social security, and poverty alleviation, mainly harmed ordinary citizens. So did the enforced pro-cyclical monetary and fiscal policies themselves, which produced a eurozone crisis of unemployment and foregone output that extended for six years and is still ongoing. Weisbrot points out that this policy and process was a notable application of Naomi Klein’s “shock doctrine,” according to which elites take advantage of painful developments (here macro-distress) to force policy changes that could not be obtained through a democratic process like a national political vote of approval. Weisbrot shows that the troika leaders were quite conscious of the fact that they were pursuing “reforms” that the public wouldn’t support outside of shock conditions.

This process rested on the undemocratic structure of macro-policy-making in the European community. One of neoliberalism’s instruments is an “independent” central bank, where independent means not subject to democratic control. The ECB meets that standard well, more so than the Fed; and in its statute the ECB is only required to meet a price stability objective, so it is free to ignore unemployment and even deliberately increase it. Neoliberal practice is also encouraged by the 1992 Maastricht Treaty, which placed ceilings on the size of budget deficits and total public debt (3 and 60 percent respectively). These unnecessary ceilings are often breached, but provide levers to put pressure on weaker countries.

The countries victimized by the ECB’s pressure for painful internal devaluation could in theory exit from the euro and rely on expansion via currency devaluation and newly feasible monetary and fiscal expansion. But the risks in the cutoff of aid and money market access and the turmoil in any transition are severe, and although Syriza was voted into power in Greece on an anti-austerity program and pledge, it did not see fit to exit. In this connection Weisbrot discusses the case of Argentina, which, in the midst of a calamitous recession in 2001-2002 did default on its large external debt, ended its peg of the peso to the dollar, froze bank deposit accounts, and installed controls over capital movements. This caused immediate chaos and a worsened crisis, but as Weisbrot stresses, after only a single quarter of further GDP decline (5 percent), freed of its externally imposed constraints, Argentina began its recovery, taking three and a half years to regain its pre-recession level of output, but with real growth of some 100 percent over the next 11 years. Greece, which had a peak GDP loss of 25 percent, and which is still mired in a badly depressed economy, could hardly have fared worse than Argentina if it had exited years ago. Whether that option should still be taken is debatable, and Weisbrot discusses the pros and cons without coming to a definite conclusion, but that an exit might well have a positive result is suggested by the Argentinian experience.

A major theme of Failed is the negative impact of neoliberalism on the growth of low and middle-income countries and the welfare of their people. A major chapter on “The Latin American Spring” features evidence that the triumph of neoliberalism in the years from 1980 to the end of the 1990s was a dismal economic and welfare failure, Per capita GDP growth fell from 3.3. percent per year, 1960-1980 to 0.4 percent 1980-2000, rising again to 1.8 percent in the years 2000-2014. The earlier period (1960-1980) was one of widespread government intervention in the interest of rapid economic development; the middle years were dominated by the triumph of neoliberalism, with widespread imposition of structural adjustment programs under IMF and World Bank auspices, lowering trade and investment barriers, and ruthlessly cutting back development and welfare state programs. The years 2000-2014 saw a resurgence of economic growth, but not up to the pre-Reagan years.

Weisbrot shows that the new spurt in economic growth was closely associated with the victory of leftist governments in quite a few Latin American states, starting in 1998, He also presents a great deal of evidence showing that the growth spurt resulted in major improvements in a range of human welfare indicators, like reduced infant mortality, poverty reduction, more widepread schooling, enlarged pensions, and greater income equality. Thus, for example, the Brazilian poverty rate, which had remained virtually unchanged in the eight neoliberal years before the victory of the Workers Party, saw a 55 percent drop in that rate during the years 2002-2013. Similar changes in this and other welfare measures took place in Ecuador, Bolivia and other Latin states that escaped the neoliberal trap. Although these changes brought improved lives and prospects to millions, Weisbrot points out that the U.S. mainstream has played dumb, refusing to feature and reflect on the significance of this widespread improvement in human welfare and its strange efflorescence associated with the decline in U.S. and IMF-World Bank influence in Latin America.

Weisbrot stresses the importance of democratization and policy space in these growth and welfare improvements. The ECB narrowed that policy space in the eurozone, making it difficult for national leaders to expand or otherwise help improve social conditions. This reflected the weakening of democracy in the eurozone, with the ECB, EC and IMF able to make decisions that local democratic governments would not be able to make. Similarly, the loss of power over Latin governments by the U.S. and IMF following the left political triumphs from 1998, and their record of anti-people actions and other policy failures, made for policy space. So also did the rise of China as an economic power, providing a market for Latin products and loans without political conditions. Weisbrot notes that the common orthodox position that the democratic West would be more likely to help poorer countries develop democracies as compared with what authoritarian China would likely do is fallacious. China lends widely without intervening politically. The United States has a long record of support of undemocratic regimes that will serve as its political instruments and/or provide a “favorable climate of investment.” (This writer’s The Real Terror Network was a dossier of U.S. support of National Security States in Latin America and of its active involvement in many counter-revolutionary “regime changes.”)

It is arguable that an unrecognized benefit of the Iraq and Afghanistan wars was their distracting U.S. officials from major efforts to halt the trend toward democratic government in Latin America, although their participation in the attempts at regime change in Venezuela and their successful support of an undemocratic coup in Honduras in 2009 shows that the longstanding anti-democratic policy thrust of the U.S. leadership is not dead. (Mrs. Clinton, of course, fully supported the Honduras coup. So we may see a more energetic pursuit of the traditional U.S. policy of hostility to democracy in Latin America with her election.)

Weisbrot stresses throughout the importance of per capita growth for improving the human condition. A problem with this premise is that the human race may be growing too fast for ecological survival. Weisbrot confronts this issue, arguing that while population growth is a definite negative productivity growth may on balance be a means of coping by increasing food output and lowering the cost of wind turbines, solar panels and other improvements. However, increases in incomes tend to increase the preference for meat, larger houses, and other resource depleters, so that productivity improvements may, on balance, place even more pressure on the environment.

Weisbrot is possibly over-optimistic on this front. But his book is rich in compelling analyses and data that show how the mainstream live in an Alice-In-Wonderland economic world and the important things we may do to escape that Wonderland.

 

Edward S. Herman is an economist and media analyst with a specialty in corporate and regulatory issues as well as political economy and the media. Read other articles by Edward.

Podcast Roundup

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3/11: Srini Rao has an interesting conversation with animal rights activist Peter Young covering community activism, communication, survival tips, and his former life as a fugitive on the “Unmistakable Creative” podcast.

https://sitebuilderio.s3.amazonaws.com/unmistakablecreative/audios/012b5fac-3695-42b3-9a2d-ffd7d4d7f213/lessons-in-communication-from-a-fugitive-peter-young.mp3

3/11: On the latest “Guns and Butter”, Bonnie Faulkner interviews John Whitehead of  the Rutherford Institute. They discuss aspects of  “Police State America” including the Corporate State, American Legislative Exchange Council (ALEC), Offices of Inspector General (OIG), SWAT Teams, No-Knock Raids, the Schoolhouse to Jailhouse Track, the New York Prototype, MRAPs, Operation Vigilant Eagle, Atlas Four Androids, TSA and VIPR Teams, the Google/NSA connection and Fusion Centers.

http://archives.kpfa.org/data/20150311-Wed1300.mp3

3/11: Host Dave Lindorff discusses the recent coup plan disrupted by police in Venezuela with veteran journalist Alfredo Lopez — a story largely blacked out or mocked as bogus by the US corporate media despite solid evidence of a plot, and of US involvement in that plot on “This Can’t Be Happening”. Lindorff and Lopez, who are colleagues on the news site thiscantbehappening.net, also talk about why President Obama on Tuesday declared Venezuela an “unusual and extraordinary national security threat” to the US, and what that declaration means to Venezuela and Latin America.

http://s36.podbean.com/pb/0c1337348a3a2a92b0bdb73308121756/5503328c/data1/blogs18/661545/uploads/ThisCantBeHappening_031115.mp3

3/12: On the first of their recent “Media Roots” podcasts, Robbie and Abby Martin discuss the ending of the RT program “Breaking the Set”, the establishment’s Cold War resurrection, and the splintering of the left over Obama’s military policies. The second program features an interview with Mark Weisbrot, co-director of the Center for Economic and Policy Research, on current U.S. government actions against Venezuela.