Pollution in Medellín, Colombia. The United Kingdom has red-listed seven countries in the Americas—including Colombia—which requires even vaccinated travelers to quarantine. This has been lambasted as a political move in light of the upcoming COP26 in Glasgow, Scotland / credit: Milo Miloezger on Unsplash
Early in October, the United Kingdom introduced new rules for international travel in light of the COVID-19 pandemic. A “red list” of 54 countries was announced that mandated quarantine for passengers from mostly Global South countries. A few days later, the red list was revised to retain seven countries—Colombia, Dominican Republic, Ecuador, Haiti, Panama, Peru and Venezuela.
But how will these travel restrictions affect negotiations at the United Nations Framework Convention on Climate Change (UNFCCC)’s 26th Conference of Parties, also known as COP26? This summit is scheduled to be held next month in Glasgow, Scotland, where delegates from more than 190 countries are convening to figure out how to meet the stipulations of the 2015 Paris Agreement.
However, people from the seven red-listed countries traveling to the United Kingdom must undergo a mandatory quarantine, even if they are vaccinated. And while the U.K. government has announced it will cover quarantine costs, these rules may be contributing to an already inequitable COP set-up. Previous COPs had ended in less-than-ideal outcomes over issues concerning equity.
“[The red list] evidences disparities between countries and the reality of vaccine inequality,” said Maria Alejandra Aguilar, associate lawyer in the climate justice division at Ambiente y Sociedad, an environmental non-governmental organization (NGO) in Colombia. Aguilar is an accredited observer for COP26 and despite her credentials, she worried about being able to travel to Glasgow. “The visa process was a nightmare for me and several delegates—even official ones,” she added, noting how her visa arrived on October 20, two days before her flight, even though she had applied for the visa on July 27.
Aguilar tweeted about her experience with the British Embassy in Colombia, noting how they held onto her passport for two months without an answer. Then on October 6, they asked her what COP26 is and what she intends to do in the United Kingdom.
I want to share the level of incompetence of the @GOVUK visas&immigration- I applied the 5th of August for a visa to attend @COP26 as accredited observer @UKinColombia 2 months without answer + withholding my passport, today this was their reply #COP26pic.twitter.com/JjFcwTwgxU
“I haven’t been able to understand why my country was on the red list, but the U.S. was never on the list, even though they had many COVID cases,” said Adrian Martínez, director and founder of La Ruta del Clima, a Costa Rican NGO focusing on climate governance processes and climate justice. As of publication, the United States had about 80,000 cases per day, whereas Costa Rica had around 600 cases per day. “We felt that we were being differentiated because of where we’re from,” he added.
Until a few days ago, most of Latin America was on the red list. Martínez said that is why countries like Mexico were considering sending only the core team of negotiators to Glasgow. He also added many NGOs in these countries did not try to obtain visas because they thought they would not be able to participate in COP26, given the restrictions.
If a country only sends a core team of negotiators, experts who routinely accompany negotiators to climate-change negotiations very likely will not be doing so because of the uncertainties that have arisen in the process, even with the revised red list. These countries also may reduce the number of negotiators they would send to Glasgow.
Martínez described the situation as a “distraction” from the prep work negotiators and other experts normally engaged during the weeks prior to previous COPs. “How to participate [at COP26] and who can get there has become the main issue,” he explained.
A COP26 spokesperson said ensuring the voices of those most affected by climate change are heard is a “priority for the COP26 Presidency.” The spokesperson also added financial support is available for delegates from developing countries for quarantine stays. But the spokesperson has yet to respond to what extent such financial support can remedy problems Global South representatives have faced in the last few months and will continue to face during negotiations. Meanwhile, the U.K. Department for Transport has yet to reply to this reporter. Questions also were sent to the UNFCCC. This article will be updated when responses are received.
“This closed, gatekeeping approach [to COPs] is political,” Martínez said. “It was supposed to be the most inclusive COP, but it has been the opposite. We had to complain and fight and persevere.”
Rishika Pardikar is a freelance journalist in Bangalore, India.
Garbage piled up in the Tunisian city of Sfax / credit: Alessandra Bajec
SFAX, Tunisia—Until the first week of December, mountains of garbage littered the center of the coastal city of Sfax. For more than two months, locals put up with thousands of tons of rotten household trash and hazardous medical waste left uncollected in public areas.
The crisis began after Sfax governorate authorities closed in late September the governorate’s main controlled landfill, El Gonna, in the town of Agareb, some 22 kilometers (13.6 miles) from the city of Sfax, due to opposition from the local population. (Tunisia is divided into provinces called governorates. Sfax governorate contains a city by the same name.)
The people of Agareb rejected the Ministry of Environment reopening the controversial dumping site. Residents said it was full and being used to dump toxic chemical waste, causing the spread of several diseases. Reported health complications include respiratory and skin disorders, sight problems, and infertility.
A map of Tunisia within the broader region / credit: Google
Some private waste-management companies are known to illegally dispose of toxic material—such as medical refuse and industrial waste from factories—in the landfill to avoid expensive treatment processes.
Protest over garbage pileup in 2021 / credit: Middle East Monitor/Houssem Zouari/Anadolu Agency
Protests Turn Deadly
Opened in 2008 as a near-term fix to ease the burden on the Sfax governorate, the dump at Agareb was originally supposed to close after five years.
“We had a problem of trust with the government, which has still not implemented the solutions that they had announced,” said Sami Bahri, a Agareb-based environmental activist, during a webinar Paris-based think tank Arab Reform Initiative organized in December.
Map of Tunisia, with a red pin indicating the location of the city of Sfax / credit: Google
Weeks of protests against the trash crisis and the reopening of the landfill last month escalated on November 8 when security forces’ tear gas killed a protester. The next day, angry demonstrators burned a local national guard station. “We are choking on all this garbage!” was one of the main slogans of the day’s rallies.
The closure of the El Gonna site, which had already been overloaded since September, led to the accumulation of garbage and industrial waste on the streets of Sfax city. Local municipal services had stopped trash collection, citing a lack of alternatives for waste disposal.
“We are in a situation where seeing garbage in the open air becomes something ordinary,” said Hafez Hentati, coordinator of Collectif de l’environnement et du développement de Sfax (Environmental and Development Collective of Sfax) in the city of Sfax, speaking in an exclusive interview with Toward Freedom. “It’s dangerous for all economic and social activity, besides being a human health issue.”
The militant, who’s been campaigning on environmental issues for nearly 40 years, estimated above 44,000 tons of rubbish were discharged into the environment without any treatment for more than 70 days after the main landfill shut down.
“Sfax’s garbage issues have been ongoing since long ago,” said Aida Kchaou, a painter and active member of civil society in Sfax, in an interview with Toward Freedom. She alluded to years of government neglect. “People are used to dumping trash carelessly as if they want to punish the state somehow.”
The artist cannot remain indifferent to how environmental conditions have degraded in her region. In 2015, she performed an act of protest on Chaffar Beach, 26 kilometers (or 16 miles) south of the city of Sfax, by wearing plastic garbage bags and picking litter to raise awareness of the decaying state of the seashore because of long-time chemical industries in Sfax governorate.
Kchaou has paid more than one visit to Agareb, meeting residents and local activists, and taking part in small actions in the vicinity of uncontrolled hazardous landfills, very close to residential areas. Recently, she staged an action by standing in the middle of a dump near Agareb, holding her paintbrush as if she was going to cover all of the rubbish with paint. She ended by planting an olive tree. “I live my environment: I see there’s something wrong and I react,” the painter said.
Monem Kallel, professor at the National School of Engineering of Sfax and an environmental expert, pointed out the waste crisis is essentially connected with the method of burying waste in open dumps, which Tunisia has adopted for about 24 years.
“It’s an old policy—one of the worst approaches to waste management—that leaves the fate of the litter unknown and makes people think the state will take care of it,” the expert observed while speaking to Toward Freedom. “Meanwhile, the country’s dumps are getting filled up, and people are growing fed up with the accumulation of unremoved garbage.” He stressed an urgent solution to waste dumping, such as immediately hauling it away, must be accompanied by the longer-term sustainable process of sorting, treatment and recycling.
In 2015, artist Aida Kchaou performed an act of protest on Chaffar Beach, 26 kilometers (or 16 miles) south of the city of Sfax. She wore plastic garbage bags and picked litter to raise awareness of the decaying state of the seashore because of long-time chemical industries in Sfax governorate / credit: instagram.com/aidakchaoukhroufart
Striking Against Structural Stench
In the face of growing waste mismanagement, posing serious health and environmental risks, civil society groups in Sfax governorate announced they would hold a general regional strike on December 10. They also successfully filed a legal complaint against the parties responsible for the ecological catastrophe, namely the environment ministry, the National Waste Management Agency (Agence Nationale de Gestion des Déchets, or ANGED for short) and the region’s municipalities.
With the local and national government coming under pressure—just a few days before the anticipated strike—the prime minister’s cabinet decided to resume on December 8 the clearance and dumping of household waste in a temporary collection point located near the port. This plan depended on the rubbish heaps being transported within five months to a new landfill to be created on the road to a town in Sfax governorate’s countryside called Menzel Chaker, about 62 kilometers (about 38 miles) from the city of Sfax. The cabinet also resolved to develop a regional plan for recycling and waste recovery within three to five years.
For Hentati, postponing the general strike was a mistake because pressure that should have served to obtain guarantees from authorities dissipated. The government quickly came up with a package of urgent measures to solve the crisis to avert the labor action. Though, he said, “It did not make any real commitment.” He added residents in the city of Sfax have been left in a disarray, as they are cautiously watching the government’s decisions.
The environmental activist made clear the issue is fundamentally a structural one.
“Today, the garbage crisis in Sfax shows the limits of the long-applied waste treatment system, which only bypasses the problem without resolving it,” Hentati said.
Increasing numbers of local people are demanding the government introduce waste disposal policies that will protect their right to a safe environment because they refuse to allow their neighborhoods to be turned into landfills.
Poor responsibility sharing between the state and regional and local institutions have resulted in a deadlock in the handling of the ongoing crisis: The central government expects municipal councils to provide much of the waste management, while municipalities call on the state to find sustainable solutions.
Untransported garbage heaps, like this one in the Tunisian city of Sfax, have caused environmental and health challenges / credit: Alessandra Bajec
Trust In the Dumps
Given their proximity to citizens, local governments are the first bodies held responsible for failing to effectively deal with waste treatment. Yet, it should be noted Tunisia’s elected local councils, which have been operating since 2018, “face severe budgetary and human capital constraints,” as Lana Salman, researcher in urban governance and international development, wrote in a research paper published in April. “[It] is a highly lucrative sector where opacity and corruption are not only endemic, but also institutionalized,” she penned.
While municipalities are responsible for hauling garbage to temporary transfer centers with the ANGED’s assistance, the agency is in charge of transporting waste to the final destination at sanitary landfills and managing such landfills.
Kallel specified greater efforts are needed to raise environmental awareness among the concerned institutions as well as among people, and that an adequate budget should be allocated to make possible feasible solutions. “Rather than shifting the responsibility from one to another, if everyone is involved responsibly through the whole waste management chain, the crisis will be overcome,” he said, underscoring the important role citizens can play in contributing to environmental protection.
The specialist maintained that trust in state institutions needs to be restored, after years of unfulfilled promises. “If the state engages by taking serious gradual steps, the average citizen will be confident that a real solution to this crisis will come,” Kallel said. “Else, it will persist.”
Kchaou similarly referred to lack of public trust as a critical matter, blaming the country’s successive governments for appointing incompetent people to ministerial posts over the past decade. She contended people will hardly act in respect of environmental protection as long as they see the relevant government structures—local, regional and national—not providing waste treatment.
Long-standing dysfunctional governance and corruption within Tunisia’s state administration underlie the garbage emergency in the Sfax province. More than half of the country’s landfill sites have reached their maximum capacity, threatening the environment and human health.
The state neglect mirrors the lack of national strategy to develop recycling capacity to deal with solid waste in Tunisia. The Ministry of the Environment has opposed the closure of dumps as no alternatives exist. In October, the new environment minister, Leila Chikhaoui, said while visiting the city of Sfax that no immediate solutions were available in the governorate.
Raouia Amira, head of the sanitation, health and environmental committee in the municipality of Sfax, pointed to the country’s solid waste management strategy being discontinued in 2016. “We need a national strategy,” Amira told Toward Freedom. “To that end, the state needs to put in place a communication campaign and spare no expense.”
She thinks incineration is the most realistic approach to treating household waste in the Sfax governorate. Tunisia has long suffered waste management problems, with an estimated 2.5 million tonnes of rubbish produced annually, 63% of which is organic, and most of it buried in landfills without being processed, recycled or incinerated.
Sustainable Solutions
The thorny matter is aggravated by lack of investment in sustainable solutions and endemic corruption within the sector in the North African country.
In a press conference in 2014, lawyer Faouzia Bacha Amdouni presented findings of an independent audit revealing “colossal funds” intended for environmental projects were channeled through the Ministry of Environment and its agencies, ending up in the hands of the government of Prime Minister Zine El Abidine Ben Ali (1987-2011) and its allies. The advocate declared several figures within the agencies were working to conceal their involvement in corruption as well as their plan not to design new strategies. “The department of the environment itself was created in 2005, not to develop policies and innovative projects for waste treatment or sanitation stations, but to receive resources from international donors and invest them in personal projects benefiting the clans in power and their relatives,” she said at the press conference. Some of those international donors reportedly include the European Investment Bank, the Italian Agency for Development Cooperation, the World Bank and the French Development Agency.
In July 2020, then-Prime Minister Elyes Fakhfakh resigned following allegations of corrupt links to the waste industry. In December 2020, the environment minister was dismissed and arrested along with 23 other officials—including members of the ANGED, or National Waste Management Agency—for being linked to a scandal involving the illegal transfer from Naples, Italy, to the Tunisian port of Sousse of more than 200 shipping containers packed full of decaying household and medical waste disguised as post-industrial plastic waste. The Italian and Tunisian companies embroiled had signed a contract worth €5 million ($5.76 million) to dispose of 120,000 tons of Italian waste in Tunisian landfills.
An investigation published by Inkyfada last March revealed a vast network of corruption involving Italian waste.
The critical environmental situation in Sfax governorate poses a clear social challenge for President Kais Saied, who promised to close the El Gonna landfill during his 2019 presidential campaign. This came in a region that strongly supported his July 25 power seizure, in what his critics have called a coup.
The mobilizations against the re-opening of the toxic dump and the wider trash crisis in Sfax demonstrates Tunisian citizens’ yearning for a clean and sustainable environment. This, as they escalate their calls on the government to stop imposing short-sighted decisions without popular consent and demand it find alternatives to landfill sites.
“The extent of the garbage crisis we’ve experienced in Sfax has been of some use,” the artist Kchaou remarked. “If that didn’t happen, no one would be taking the issue seriously.”
Alessandra Bajec is a freelance journalist specializing in West Asia and North Africa. Between 2010 and 2011, she lived in Palestine. She was based in Cairo from 2013 to 2017, and since 2018 has been based in Tunis.
United Nations peacekeepers from Brazil conduct a security patrol in Cité Soleil, Haiti, during the second round of senatorial elections in 2009 / credit: United Nations
Editor’s Note: The following opinion was originally published in Black Agenda Report.
It is an exhilarating time for the “leftists” of the Americas. This past week, at the 77th meeting of the United Nations General Assembly in New York City, leader after Latin American leader made grand statements against U.S. and Western imperialism, the hypocrisy of U.S. foreign policy, the violations of human rights, and the West’s assault on the sovereignty of smaller nations. Colombia’s brand-new president, Gustavo Petro, made an impassioned plea against the genocidal “War on Drugs.” Cuba’s Minister for Foreign Affairs, Bruno Eduardo Rodríguez Parrilla, rejected the attacks on the sovereignty of China and Russia. Venezuela’s Minister of Foreign Affairs, Carlos Faría railed against the Western sanctions against Nicaragua, Cuba, Iran and Russia. Honduran President Xiomara Castro demanded that the United States stop its attempts at destabilizing her country and strongly pushed against Western policies of intervention in the region. Nicaragua’s Minister of Foreign Affairs, Denis Ronaldo Moncada Colindres, made perhaps the most explosive claims when he stated :
“The assault, the robbery, the disgraceful abominable depredation, the looting and the genocides unleashed by the colonialists and imperialists of the Earth, are the real crimes and they are the real criminals against humanity, and we denounce this… It’s time to say enough to hypocritical imperialism that politicizes, falsifies and denigrates the very human rights which they themselves violate and deny on a daily basis.”
Most of these leaders spoke to the urgent question of Cuba, calling for the lifting of the economic blockade against the country and for Cuba’s removal from the U.S.-created list of countries that supposedly “sponsor terrorism.”
Yet, for all the eloquent denunciations of imperialism and the impassioned defenses of Latin American and Caribbean sovereignty and independence, one country was conspicuously avoided: Haiti. Not a single one of these countries applied their critiques of imperialism to Haiti. Sure, Cuba and Venezuela mentioned Haiti. Cuba’s representative called for reparations for the Caribbean for slavery, said that humanity owed a debt to the Haitian revolution, and stressed that Haiti needed international support “through a special contribution for its reconstruction and development.” Venezuela’s representative name-dropped Haiti within a list of countries, which have suffered bloodshed from “imperialism and supremacism.”
Beyond the casual mentions, the hollow rhetorics, and the empty invocations, there were no concrete critiques of the current imperial machinations in Haiti—of Haiti’s complete loss of sovereignty through the ongoing destruction of the Haitian state apparatus, of the current occupation of the country by the Western-led Core Group, and of the repression (and violent misrepresentation) of the Haitian people as they have taken to the streets to demand their sovereignty and call for an end to foreign intervention. Instead, the extension and intensification of foreign intervention appears to be the strategic end goal of not only the usual suspects of the West, but our supposed Leftist allies in the Americas.
One has to ask: Do the leaders of the region even know what has been going on in Haiti? Surely they know about the 2004 U.S./Canada/France-led coup d’etat against Haiti’s democratically elected president, and the Chapter 7 deployment of a United Nations occupation force (euphemistically known as a “peacekeeping” force). Indeed, it was Lula’s Brazil that led the military wing of that occupation that brought nothing but violence and devastation to Haitian peoples. Brazil’s active participation in that occupation led to the migration of thousands of Haitian workers to Brazil, where they provided cheap labor to build the infrastructure for the Olympics and World Cup. The savage racism experienced by Haitian migrants in Brazil, combined with the disappearance of work, led them to flee overland through Central America to the U.S.-Mexico border in search of asylum.
The leaders of the Americas must also know about the Core Group—the self-selected, unelected group of foreigners, with representatives from the European Union, the United States, Brazil, Canada, that was created during the early months of the occupation. The Core Group continues to control Haiti’s internal political affairs. They certainly know that the UN still occupies Haiti; after all, it is the left’s “anti-imperialist” darling, Andrés Manual López Obrador (AMLO), who is serving, along with the United States, as “co-penholder” and writing the UN Security Council’s imperial policies on Haiti. Similar to Brazil, will Mexico’s bid to play power-broker in the region come at the expense of Haitian people and Haiti’s sovereignty?
AMLO must know what he’s doing. After all, even as it gets celebrated for its “leftist” credentials, the Mexican government continues to collude with the U.S. Border Patrol to militarize its southern border against migrants, and enforce the U.S. “Remain in Mexico” policy. Meanwhile, Haitian and other Black migrants continue to suffer racist abuse in Mexico.
It is not lost on me that there is a deep-seated, racist view of Haiti as exceptional—and therefore exceptionally difficult to engage. The constant refrain from anti-imperialist groupings in the West is that Haiti is so “complex” and its sociopolitical terrain so difficult that there’s no way to truly understand what’s going on there. During a recent webinar against U.S. imperialism in Latin America, I brought up the current UN/US occupation in Haiti, only to have the host soberly agree with me that this was, indeed, an important problem to engage, but that, perhaps, Haiti needed a separate webinar. Many webinars later, discussion of Haiti’s destruction by a brutal Western imperialism, continues to get short shrift.
While we celebrate the rise of another “Pink Tide” in Latin America, the emergence of a truly multipolar world, with new economic and political alignments, it seems clear that Haiti will continue to be on the outside of “leftist” imaginations—beyond, of course, the non-specific words of “solidarity” thrown its way.
In a discussion on Twitter about the ways that Haiti appears— and dismissed—in global discourses, a colleague, Vik Sohonie lamented , “Haiti is unfortunately where all good will, solidarity, and Third Worldism goes to die… The ‘international community’ that occupies it, as you know, is Nepali, Brazilian. You get looked at funny elsewhere in the Carib if you compliment Haiti. It’s astonishing.” He’s not wrong. One of the reasons that the brutal UN military occupation of Haiti could fly under the radar was because it was populated by a multi-national and multi-racial military and civilian force. The United States admitted as much, as revealed in the Wikileaks files. Former U.S. Ambassador to Haiti Janet Sanderson lauded the occupation force (MINUSTAH) as a cheap source of U.S. power in Haiti, as it is made up of a multinational coalition of Western and non-Western forces, including countries ranging from Benin and Kenya to Brazil and Ecuador, who seem all bent on using Haiti as their training ground.
Why is it so easy for these nonwhite and oppressed nations to come and serve U.S. and Western imperial interests in Haiti? Could it be that they, too, have imbibed the dehumanized and, frankly, racist views about Haitian people? Is Haiti’s Blackness seen as the root cause of its problems and struggles—even by many Black people? One would think so if one reviewed the recent actions of the leaders of CARICOM who, also, deploy the dehumanizing language and white supremacist assumptions about Haiti that is the foundation of Western imperialist actions in the country.
This wasn’t always the case, of course. Back in 2004, under the leadership of PJ Patterson, CARICOM at least spoke up against the U.S./France/Canada coup d’etat against elected president Jean Bertrand Aristide (and this was despite his often problematic public positions against him). Jamaica was even threatened with sanctions—by the Bush administration’s Condoleeza Rice—if it attempted to provide Aristide asylum. The other bold voice was Venezuela’s Hugo Chavez, who railed against the coup and later provided direct support to Haiti’s masses through the PetroCaribe fuel subsidies.
Where are those voices now?
Perhaps if people in the region saw Haiti less as an abstraction and more as a place with real humans, citizens of the world, with the same claims to rights and livelihood, confronting a white supremacist imperialism, they would recognize the current denial of its sovereignty. Until that time, the Leftists of the Americas are betraying a people that have given so much to the struggles for sovereignty and independence in the region.
Jemima Pierre is an editor and contributor to Black Agenda Report, the Haiti/Americas Co-Coordinator for the Black Alliance for Peace, and a Black Studies and anthropology professor at UCLA.
Pedro Castillo, second from left, is the newest president associated with the Pink TIde of Latin America / Photo composition by Orinoco Tribune
The Latin American Left is regrouping. On July 19, 2021, Peru’s National Elections Jury announced the official results of the 2021 presidential elections, declaring Pedro Castillo as President of Peru. An important voting survey in Brazil has revealed that Luiz Inácio Lula da Silva would outperform neo-fascist President Jair Bolsonaro in all scenarios for the 2022 elections in the country. Colombia is in socio-economic turmoil, creating a potential opening for the election of Gustavo Petro – a left-wing politician. In Chile, the result of elections held on May 15-16, 2021, for the 155-member new constituent assembly has thrust progressive candidates to the forefront of national politics. All these dynamics will regionally strengthen the leftist governments already in power in Argentina, Bolivia, Cuba, Mexico, Nicaragua, and Venezuela. An anti-neoliberal shift in Latin America’s political compass carries global significance.
Imperialism
Large swathes of humanity who live in the peripheries of the world system have been witnessing a deadly process of absolute immiseration. Imperialism has restricted the economic growth of the periphery to mineral and agricultural sectors in order to assure raw materials for advanced capitalist nations. Hence, most Third World economies are heavily dependent on the export of primary commodities. In Latin America, such primary commodities account for the majority of exports for nearly all countries. While Latin American countries export primary goods to the Global North, they tend to re-import manufactured products from these same countries. The value added to these manufactured commodities – typically constructed from the primary inputs imported earlier – generates profit for northern countries while maintaining Latin American countries in a perpetual trade deficit.
While some countries in the periphery have facilitated a degree of industrialization through the surpluses accumulated from export-led growth, the disarticulated structures of these economies persists. The imperialist states’ monopolies – technological, financial, natural resources, communications, and military – has meant that there has been a lack of any significant indigenous technical development. Even to the extent that industrial growth has occurred, it has been based on the import of capital and technology, which has considerably reduced the dynamic effects on the economy that are usually associated with industrial growth. Moreover, a relocation of the locus of value creation from the core to the periphery means that the core relies less and less on the unprofitable exploitation of its own workers. Instead, the metropole increasingly divides the world into what has been labeled as Southern “production economies” and Northern “consumption economies.”
The main driver behind this process is undoubtedly the low wage level in the South. Entrenchment of extroverted economies like these has generated cut-throat competition amongst Southern firms for foreign capital. What we have now is a global race to the bottom, marked by a deathly spiral of exchange rate devaluations, hyper-low taxes and depressed wages. Multinational corporations based in the capitalist core have unendingly feasted on this wretchedness, fattening their profits from the extreme exploitation of the Third World’s large labor reserves. As such, the structure of today’s global economy has been profoundly shaped by the allocation of labor to industrial sectors according to differential rates of national exploitation. Thus, only the outward form of value transfers from the South to the North has changed, with the unequal exchange of products embodying different quantities of value steadily continuing. A large pool of precarized workers has been created, which consistently remains enmeshed in networks of informal economy, being forced by the productive configurations to enrich foreign capitalists and nourish the parasitic nature of the comprador bourgeoisie.
International Finance Capital
The continuation of the international division of labor and the creation of dependent industrialization has been complemented by the hegemony of international finance capital. Prabhat Patnaik writes:
“In the current phase of imperialism, finance capital has become international, while the State remains a nation-State. The nation-State therefore willy-nilly must bow before the wishes of finance, for otherwise finance (both originating in that country and brought in from outside) will leave that particular country and move elsewhere, reducing it to illiquidity and disrupting its economy. The process of globalization of finance therefore has the effect of undermining the autonomy of the nation-State. The State cannot do what it wishes to do, or what its elected government has been elected to do, since it must do what finance wishes it to do.”
The interests of the financial oligarchy lie in strongly opposing state expenditure financed either by taxes on capitalists or by borrowing – the only ways of financing through which the state can effect a net expansion in aggregate demand. Financial interests are against deficit-financed spending for a number of reasons. First, deficit financing is seen to increase the liquidity overhang in the system, and therefore as being potentially inflationary. Inflation is anathema to finance since it erodes the value of financial assets. Second, financial markets fear that the introduction of debt-financed spending – which is driven by goals other than profit-making – will render interest rate differentials that determine financial profits more unpredictable. Third, if deficit spending leads to a substantial build-up of the state’s debt, it may intervene in financial markets to lower interest rates with implications for financial returns.
Under these circumstances, even moderate welfarism has become a danger to the neoliberal order. Whereas the welfare state in the immediate post-War era served the ruling class by warding off the threat of communism, in the neoliberal era – where accumulation by dispossession has become the predominant mode of capitalist growth – even the most modest of demand management policies have had to face intense political opposition. Taking into account the internationally polarizing and nationally suffocating results of global capitalism, the slow resurgence of the Latin American Left will provide an avenue for the advancement of an alternative agenda.
The Experience of the Pink Tide
Firstly, progressive governments in the continent have always tried to tackle relations of dependency, as is discernible from their experience in power during the Pink Tide. In opposition to metropolitan control over mineral resources and plantations, the Latin American Left consolidated the public sector which displaced the dominance of foreign capital. These arrangements ensured that the revenues coming from the primary commodity sector were no longer siphoned off by the rich but were diverted towards the poor. The assertion of control over financial resources and their redirection toward social developmentalism was coupled with the uneven promotion of sovereign forms of industrialization, trade and finance through various initiatives like the Community of Latin American and Caribbean States, the Union of South American Nations and the Bolivarian Alliance for the Peoples of our America.
Before the public sector and regional groupings could be fully used for developing domestic heavy-industry base and technological capability, the commodity boom itself collapsed. This external event did not allow the Left’s redistributive strategy to transform into concerted attempts at changing the productive forces. However, the fact that a politico-ideological project of independence was advocated stands as a testimony to the fruitful possibilities contained in the Pink Tide. Industrialization, social welfare, and the nation came together in the notion of sovereignty; industrialization was not posed simply as a means by which Third World capitalists could accumulate capital more effectively, but as a means of improving the nation as a whole.
Moreover, a programme of selective delinking was supported which allowed Latin American governments to self-determine which sector of the economy could be safely opened up. They could differentially open up a sector where foreign capital was needed to supplement local capital in whole or in part. As part of this blueprint of economic self-determination, clear-headed campaigns were initiated to resist pressures to liberalize the financial sector. In fact, Latin America’s leftist governments tended to increase the level of capital controls instead of merely adapting to the constraints imposed by financial globalization. The reregulation of cross-border financial flows was part of a coordinated effort to obtain further macroeconomic policy autonomy and attend to the interests of impoverished constituencies.
The existence of capital controls enabled the Latin American Left to temporarily soften the impact of the end of commodity boom. One of the visible ways that the collapse of primary commodity prices makes itself felt is through a shortage of foreign exchange to finance necessary imports. This gives rise to inflation, to currency depreciations which further aggravate inflation, and to shortages of essential goods. Further, the reduced incomes -a result of the slump in the primary commodity demand – cause recession, stagnation and unemployment. The conservation of foreign exchange for importing essential commodities, and the prevention of outflow of foreign exchange by wealth-holders hedging against exchange rate depreciation, become extremely important. Towards this end, the Latin American Left’s regulatory management of banks and foreign trade proved to be crucial in mitigating the effects of changing global conditions.
Secondly, Latin American leftist governments extensively used planning and welfare policies, such as conditional cash transfers (CCTs), financed through the receipts of economic growth and the taxation of rising commodity exports. Under a new socio-economic structure of accumulation, Gross Domestic Product (GDP) growth rates increased and social conditions improved, reversing the adverse consequences of neoliberalism and cementing popular support for the Pink Tide administrations. The GDP per capita of Latin America and the Caribbean rose by 31% between 2003 and 2013, poverty rates fell from 32 to 17%, and the country-average of the Gini index of household per capita income in Latin America fell by 0.06. All this stood in complete contrast to the past implementations of harsh austerity programs and fiscal niggardliness which were intended to restore government’s “credibility” and return to the elusive cycle of growth led solely by private investment.
The implementation of welfare policies needs to be looked in the specific context of contemporary capitalism. In a global situation marked by the hegemony of international finance capital and calcified hierarchies, the unleashing of successful poverty alleviation schemes, increase in minimum wages, strengthening of labor regulations and the weakening of deficit targets were not acceptable to the elites who saw these policies as a precursor to more radical shifts. Thus, in an era of finance capital where even the most basic welfare spending runs contrary to the interests of an inflation-fearing financial oligarchy, the Latin American Left’s fiscal expansionism and consolidation of social policies constituted a sharp attack on neoliberal interests.
Present-day fluctuations in the balance of forces in Latin America hint towards a revival of the Left. We need to comprehend these fluid tectonic plates of popular power from an actively political perspective. Building a socialist society in a Third World country, in which – despite its wealth of natural resources – there remains immense poverty and hideous inequality is a hard task. Moving against the powerful tide of reactionary forces and helping the oppressed classes to overcome social humiliation requires a long gestation period. In short, the entrance of the Global South subaltern on the stage of history is a richly textured pathway of socialized autonomy which never follows a linear or perfect course of economic reconstruction. Most of the times, the width of populist culture and depth of working class power intersect to generate a multi-sided trajectory of revolution. As Vladimir Lenin himself said, “Whoever expects a “pure” social revolution will never live to see it. Such a person pays lip-service to revolution without understanding what revolution is.” Thus, in the current conjuncture, we need to show solidarity with Latin America’s renascent Pink Tide which promises to deal a blow to imperialist capitalism.
Yanis Iqbal is an independent researcher and freelance writer based in Aligarh, India and can be contacted at [email protected]. His articles have been published in the United States, United Kingdom, Canada, Australia, New Zealand, Germany, India, Bangladesh, Vietnam, Turkey and several countries of Latin America.