disaster capitalism

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A home in the Lower Ninth Ward being rebuilt by Common Ground Relief volunteers. (Photo: Sara Falconer)

A home in the Lower Ninth Ward being rebuilt by Common Ground Relief volunteers. (Photo: Sara Falconer)

By Sara Falconer
Briarpatch Magazine
November/December 2009

It’s not easy getting a cab to the Lower Ninth Ward. Even now, with most of the former population cleared out, some drivers still won’t cross the Claiborne Avenue Bridge unless it’s to take a carload of tourists to gawk at Hurricane Katrina’s Ground Zero. So when the third cab stops, it’s with some impatience that I ask if he knows the way.

“Oh sure, sweetie,” he drawls. “Born and raised. Born and raised.”

Norman is a retired firefighter who now drives cab to supplement his pension. Four years ago, after Hurricane Katrina, he patrolled the flooded streets by boat to pull survivors from rooftops and attic windows. When he learns that my companion and I have travelled from Toronto to volunteer with a grassroots rebuilding project called Common Ground Relief, chatty Norman gets very quiet. He reaches over, turns off the meter and looks at us intently. “I want to show you something,” he says.

Although it’s late, he drives several blocks past our destination, his headlights occasionally framing the sagging ruin of a house or an exposed foundation, the structure either washed away or bulldozed by the city. He distractedly points out the levees where the water first broke through, just steps from these front doors. Finally he stops at a cheery bungalow, its porch light blazing, a tidy little oasis of normalcy in the darkness.

“This is my home,” Norman says, his gruff voice choked with emotion. “Volunteers rebuilt it for me.”

He hopes his return will encourage his neighbours to come back too but there is much that stands in their way. With their homes and jobs long gone, we wonder, what incentive is there for anyone to return? And how much of a difference can small groups of parachuted-in volunteers make when there is such substantial work to be done?

The jarring reality, we will soon discover, is that volunteers like us are, unwittingly, at least as much a part of the problem as a part of the solution. Real change in New Orleans – the kind that will give the rest of Norman’s community a reason to return – is going to require solidarity of an entirely different kind. It’s not the “thousand points of light” feel-good charity work that Bush (senior) championed. Rather, it’s the rebirth of a civil-rights-era approach that put thousands of activists on the front lines of struggles, in direct confrontation with the State.

Since 2005, much of the city has been rebuilt, particularly in the wealthy Garden District and French Quarter. The Lower Ninth Ward, though, remains a wasteland. Of the 19,000 people who lived there when Katrina hit, only 3,600 have come back. Many of the rest have been mired in red tape trying to access insurance or relief funds for so long that they can no longer afford the trip home. The city seems to actively discourage resettlement, routinely levying large fines against absent homeowners for infractions such as excessive grass length, eventually going so far as to expropriate and demolish the offending homes.

The intentional displacement of low-income communities from this area is nothing new, says Jay Arena, a long-time activist in the fight to defend public housing in New Orleans, both before and after Katrina. “The city had wiped out half of the public housing even before the storm,” he explains, from 14,000 to 7,000 units during the 1990s and early 2000s. In 2008, under the guidance of the Bush (junior) administration, the Housing Authority of New Orleans (HANO) destroyed another 5,000 low-income apartments. Charity Hospital, providing care to tens of thousands of uninsured, was also shut down – all part of a push to replace public services with for-profit ventures.

“It’s about dismantling the public sector and letting charity groups address the ensuing social ills,” Arena fumes. “That has been the neoliberal agenda of the elite, local and national, post-Katrina.”

Arena is critical of the role of non-profits, foundations and universities in underwriting that agenda. With the U.S. Department of Housing and Urban Development (HUD) poised to destroy public housing (which they label “concentrated poverty” to justify their efforts to eradicate it) across the country, New Orleans became the latest victim of an all-out offensive on the public sphere – a political and economic onslaught that swept the Global South in recent decades, under International-Monetary-Fund-imposed austerity measures, and that is now coming home to roost in the Empire’s backyard.

As Naomi Klein reports in The Shock Doctrine, only days after the hurricane struck, the Heritage Foundation, a prominent right-wing think tank, released recommendations for rebuilding the city on a privatized model. Among 32 changes that were quickly implemented by the Bush administration, the Foundation urged a disinvestment in the public school system. Vouchers are now issued by lottery to allow a limited number of low-income children to enroll in private school, leaving other students on waiting lists or simply languishing in underfunded public schools.

Meanwhile, thousands of families who used to live in public housing now live in privately owned apartments, paying more than 30 per cent of their income towards the rent and utilities that HANO’s “Section 8″ vouchers fail to cover. “These were plans they had already drawn up,” Jordan Flaherty, a former union organizer and editor of Left Turn magazine, tells Briarpatch. “The storm was their opportunity.”

“What happened with Katrina is not just an attack on poor folks, but also an attack on black political power in the city,” he says. “Pre-Katrina, the teachers’ union was the largest and most influential in the city, and a source of middle-class black political power. After Katrina, everyone who worked in the school system, from janitors to teachers, was fired, and the union contract was cancelled.”

That shift in political power has also been evident in the changing demographics and political representation of the city, as the majority black city council was slowly replaced by a majority white council.

Arena suggests that despite the best of intentions, the thousands of student, faith-based and other volunteers who still flock to the city to gut and rebuild houses actually contribute to the neoliberal project of dismantling the public sphere. “We have Habitat for Humanity building a few private houses, while thousands of public homes are being destroyed,” he points out.

Similarly, Teach for America volunteers were brought in to fill the positions of unionized teachers who were fired, while volunteer health clinics now care for some of the thousands of patients abandoned by the closing of Charity Hospital. Describing the same trend in her native India, Arundhati Roy has called this phenomenon the “NGO-ization of politics”: “[Non-governmental organizations'] real contribution is that they defuse political anger and dole out as aid or benevolence what people ought to have by right” (Public Power in the Age of Empire, 2004).

Such volunteerism, Arena points out, is also a form of scabbing that drives down wages for workers. “These are jobs that could be performed by Katrina survivors who desperately need them,” he says. Louisiana’s unemployment rate, at six per cent, is still the lowest in the country, but is rising quickly, with 15,700 jobs cut in the last year as the recession began to take its toll on the state. Despite the potential jobs that construction could offer, most new houses are prefabricated out of state and shipped in, using local labour for only a few days at a time.

Meanwhile, the over 130,000 people who were displaced from New Orleans have had to seek work in other cities, particularly Baton Rouge, Gulfport-Biloxi, Mobile and Jackson. Many of these workers abandoned their skilled professions to work as cab drivers, short-order cooks and other low-paid positions. The “right of return” movement championed by grassroots community groups like C3/Hands off Iberville, with which Arena was previously involved, advocates the creation of jobs and the repair and expansion of public infrastructure to enable the displaced to come home.

Arena believes that some developers have been “icing out” black workers from what little construction is actually taking place, pitting migrant Latino workers against black locals. C3/Hands off Iberville is demanding the enforcement of Section 3 of the 1968 Housing Act, which stipulates that on HUD-funded construction work, at least 30 per cent of jobs must go to local workers. “This is by no means an anti-immigration campaign,” he says. “We’ve been fighting for a public works plan that would be open to all – documented, undocumented. There’s plenty of work to be done.”

The New Orleans Workers’ Center for Racial Justice (NOWCRJ), an advocacy group formed in the aftermath of Katrina, echoes Arena’s concern that black workers were “locked out” of the rebuilding process while immigrant workers were “locked in” by companies that falsely promised them security and permanent status for their sacrifices. NOWCRJ aims to organize across race and industry lines to build political power, encouraging the inclusion of labourers, guest workers and homeless residents in campaigns against inter­national human labour trafficking, for the protection of day labourers engaging in dangerous work, and more.

Both Arena and Flaherty agree that such movement-based volunteerism, rooted in the civil rights tradition, is key to the solution. It is true solidarity, rather than the “thousand points of light” variety of volunteerism, that is needed, Arena says. “In the midst of this whole assault, we’ve had more than a million people come to the city [to volunteer]. We would have preferred to see people come down and support the struggles for public housing and public services.”

A failed attempt by the AFL-CIO to unionize hospitality workers several years before Katrina demonstrates the importance of taking cues from local leadership in establishing such solidarity, Flaherty adds. “If you’re not doing something with the guidance of those most affected, it simply won’t work.”

Make no mistake: volunteers are needed in New Orleans. Its poorest residents – and some of the most vibrant, warm and strong people you will ever meet – have been abandoned by a city and a society that is being deliberately rebuilt without them. But misguided efforts to help only mask the sources of their suffering. With “solidarity, not charity,” as a mantra, there is an opportunity for visitors who really want to make a difference to lend their time and skills to support grassroots groups that are taking a stand against a system of exploitation.

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This from a baffling front-page story in The Nation , Thailand’s English-language business daily — a stunningly inane piece of neoliberalese trumpeting a "big-bang" deregulation of capital markets as the solution to the global economic crisis:

The ‘big bang’ plan would lift the capital market’s role in developing the economy as a whole and linking the market with the public and become a major funding source for business operators," [Thai finance minister Korn Chatikavanij] said.

The phrase "big bang" is used in reference to the sudden deregulation of financial markets. The Thai version would cover seven areas:

  • The capital market’s structure would be revised to lift its competitiveness.
  • All securities businesses would be liberalised, which would affect securities services, licensing and commission fees.
  • Good-governance practices must be strengthened.
  • The legal structure would be changed in a way that provides a greater chance for small investors to protect themselves.
  • The tax structure would be revised to get rid of discrepancies, as the capital market covers life insurance, bank savings and investment in bonds or equity.
  • New projects would be introduced, such as property funds, infrastructure funds and state enterprises that are privatised.
  • There must be measures to develop the bond market.

It’s hard to know where to start with this, but I must say I admire the audacity of the attempt to spin the privatization of state enterprises as the "introduction" of "new projects."

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An interview with Naomi Klein

By Dave Oswald Mitchell
Briarpatch Magazine
December 2008

Naomi Klein is an award-winning journalist, syndicated columnist and the author of two international bestsellers, No Logo: Taking Aim at the Brand Bullies (2000) and The Shock Doctrine: The Rise of Disaster Capitalism (2007).

Klein is a firm believer in the notion that, if you can get a powerful idea into the hands of those with the capacity and motivation to act on it, you can change the world. Indeed, in The Shock Doctrine, she documents how the radical free market ideas of Milton Friedman have changed the world – not through their persuasive power or popular appeal, but through the creative exploitation by Friedman’s disciples of whatever shock might happen to present itself, be it a coup, a tsunami, a stock market crash, or a massive military bombardment.

The Shock Doctrine details how time and again, governments of all stripes have used almost any crisis that presents itself as an opportunity to advance radical economic restructuring: gutting social programs, privatizing and deregulating large sectors of economies, and leaving a global trail of devastation in their wake. Committed to nothing less than the exposure of the dominant economic theory of our time as a blood-soaked fraud, Klein shows that unfettered capitalism is an inherently violent ideology that is fundamentally incompatible with political freedom and true democracy.

By providing a counter-narrative that can help people to make sense of these trends, Klein seeks to make us less susceptible to shock and better prepared to defend and rebuild the public sphere in its wake.

Briarpatch editor Dave Oswald Mitchell spoke with Naomi Klein in Regina in September, following her address to a capacity crowd of 800 people.

Briarpatch: You came to prominence as a leading theorist of the antiglobalization movement. Can you talk about what happened to that movement after 9/11?

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From today’s “debt rattle” on the blog Automatic Earth — a site worth visiting from time to time if you’re looking for a refreshingly downbeat perspective on the massive transfer of wealth currently underway:

With the Dow Jones safely tucked in back down below 9000, and European exchanges losing 7% on average, the positive overall global effect of an unprecedented transfer of public funds to the private sector, to the tune of some $4.5 trillion, has lasted about a day and a half.

The $4.5 trillion could have been used to the benefit of the people it rightfully belongs to, the same people who will soon desperately need every singly penny of it. Instead, it has been given away, and is now no longer available to help in what is cynically called “the real economy”.

And that is where the reason for today’s plunging stocks lies: the real economy, in the real world, where the real people live. Unfortunately for them, financial decisions are all taken by those who live in other universes, for whom the real world has no meaning without the world of finance, who are under the illusion that their multi-million bonuses exist for the good of the people.

A nice way of putting it is this: “If you spent $1 million per day from the day Jesus was born until Christmas 2008, you would have spent $733 billion”. In other words, you could have spent a million a day for 12,000 years, and still not get to the amount spent in the past 5 days.

Full article.

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The B-List is your monthly media supplement of 7 recommended readings from beyond the Briarpatch.

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By Jon Elmer
Briarpatch Magazine
February 2008

Blackwater: The rise of the world’s most powerful mercenary army
Jeremy Scahill
Nation Books 2007

The Shock Doctrine: The rise of disaster capitalism
Naomi Klein
Knopf Canada 2007

The Global War On Terror did not give birth to mercenary warfare: the Pharaohs used mercenaries, as did the Persians, Napoleon and Alexander the Great. The Romans and the British deployed soldiers-for-hire to police native rebellions, particularly in the twilight of their empires. Indeed, 19th century American industrialists and statesmen, lionized in so many textbooks and park monuments, made private security forces-particularly the infamous Pinkertons-an integral element in American social and political history. As Pinkerton was to private policing in the U.S. in the 19th century, Blackwater USA is to the American military of the 21st century: a symbolic expression of systemic capitalist forces running far deeper than a single company.

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