Saturday, July 16, 2011

2011.07.07 — Year 501: The Conquest Continues — begun 2011.06.23

Noam Chomsky.
Year 501: The Conquest Continues.
Montreal: Black Rose Books, 1993. ISBN 189543162X.

Year 501 book has begun exceptionally well, and so even before finishing it I give it
★★★★★ out of ☆☆☆☆☆.
My enthusiasm arises with my discovery that with Y501 Chomsky has very directly addressed the history of economics and its propagandized ideology versus its pragmatic 'reality.' Chomsky has actually looked at the real world economic and social consequences of our so-called democratizing economic practices. That examination includes the roles by which the economic prractices of the 'haves' are used as a club to open or keep open to exploitation the resources of the have-nots. Chomsky with great irony uses the accepted economic designations 'North' and 'South' that were used to delineate between these groups, with Russia and much of eastern Europe getting lumped in with the 'South'.

I am on page 103 and this is without doubt one of Chomsky's best works. I confess that I am likely biased towards it because of my interest in economic ideology and Y501 is ... I'm trying to find the right adjective. With Y501 Chomsky confirms with historical detail and the usual endless and invaluable references that my economic criticism is well founded. He is filling in and broadening the economic understanding and conclusions I have already come to and that I have been articulating far less effectively than him for many years. For example, see Death by Freezing: The Ideology of Economics that I wrote almost twenty years ago.

The book is chock-a-block full of interesting and well documented examples of just how delusional is the idea that 'free market' / capitalistic economies create social wealth with an invisible hand. As well as citing how free market economies have created poverty for the many and extreme wealth for the few, Chomsky also cites examples of economic success that have been the result of explicitly NOT following so-called IMF / free market rules. The most obvious being Japan.
Some have suggested — only half in jest — that Japan's support for the Brookings Institution and other advocates of standard [economic] doctrine is intended to reinforce belief in the classical theory, to the detriment of its commercial rivals3-3(101).
Note: I've included the footnotes from the text with live links to them. To see the footnoted references click on the footnote superscript. To return to where you were reading in the text click the 'back' button on your web browser. I have included, when available, links to the various references, publications, people, events, and organizations within the text and in the footnotes in order to make research a little easier.

And the timing of my beginning to read Y501 is very interesting because of the financial crisis in Greece. But then again, in the last 20 years when hasn't there been some kind of world jeopoardizing economic crisis demanding tax payer paid rescues?! But what is interesting is to read how effective has been the IMF's history of successfully fixing myriad broken economies since its inception in the late 1940s.

A quick look at the IMF's history affirms that the violent opposition by Greece's citizenry is well-founded, despite the media's consistent line that only with economic and social austerity is prosperity possible. And, despite its easily measured failures it would seem that with their economic clubs, perhaps abetted by the effectiveness of the propagandized 'free-market' economic ideology, Greece is preparing to fix their economy by essentially gutting and immolating the economy of the civilian population, with the net fix being to pad the accounts of the ruling elite.

As it turns out, and almost fushigi-like, Chomsky makes several very critical references to the real effects of IMF instituted and directed changes that have been foisted on various countries versus what they ideologically claim to do for them. (And it is affirming to read someone other than myself criticizing the IMF's effect, which I do vociferously and frequently with co-workers and just about anyone within ear shot. Having read Chomsky will allow me to relax from feeling like just another economic Cassandra!)

Now, for some Chomsky. From Chapter 2 The Contours of World Order
2.4. The End of the Affluent Alliance

The complaints of those who continue to maintain their iron control with little challenge are not without their comic aspects. For every 100 articles berating the left-fascists who control everything, there might be one responding weakly that the takeover is not so complete as claimed, and none telling the truth —which is obvious enough, if only from the distribution of views allowed to surface. But restricting thought is a serious matter, and respected figures do not crack a smile as they march in the parade, bewailing the fact that they may have lost some comparative literature department (perhaps to a right-wing "deconstructionist" or liberal "relativist" denounced as left-fascists).

To the totalitarian mentality, even the slightest deviation is an awesome tragedy, and evokes the most impressive frenzy. And the spectacle makes a useful contribution to entrenching further the ideological controls that prevent the rascal multitude from attending to what is happening around them.

2.5. The "Vile Maxim of the Masters"

The world economy has not returned to the growth rates of the Bretton Woods era. The decline of the South was particularly severe in Africa and Latin America, where it was accompanied by rampant state terror. It was accelerated by the neoliberal economic doctrines dictated by the world rulers. The UN Economic Commission for Africa found that countries pursuing the recommended IMF programs had lower growth rates than those that relied on the public sector for basic human needs. The disastrous impact of neoliberal policies in Latin America was particularly striking.2-34

On occasion, developed societies take their own rhetoric semi-seriously and fail to protect themselves from the destructive impact of unregulated markets. The consequences are much the same as in the traditional colonial domains, if not so lethal. Australia in the 1980s is a case in point. Free market experiments carried by the Labor government succeeded in reducing national income by over 5 percent a year by the end of the decade. Real wages declined, Australian enterprises fell under foreign control, and the country advanced towards the status of a resource base for the Japan-centered state capitalist region, which maintained its dynamic growth thanks to the radical departures from neoliberal dogma that had spurred development in the first place. In Britain after a decade ofThatcherism, "prospects remain bleak because of insufficient reinvestment in the physical UK economy," the director of a US investment firm observes, echoing a Japanese counterpart who says, "We think it will take a long time for the UK economy to recover."2-35

As noted, the rich industrial societies themselves are taking on something of a Third World cast, with islands of extreme wealth and privilege amidst a rising sea of poverty and despair. This is particularly true of the US and Britain, subjected to Reagan-Thatcher discipline. Continental Europe is not too far behind, despite the residual power of labor and the social contract it has defended, and Europe's ability to export its slums through the device of "guest workers." The collapse of the Soviet empire offers new means to establish the North-South divide more firmly within the rich societies. During the May 1992 strike of public workers in Germany, the chairman of Daimler-Benz warned that the corporation might respond to strikes by transferring manufacturing facilities for its Mercedes cars elsewhere, perhaps to Russia, with its ample supply of trained, educated, healthy and (it is hoped) docile workers. The chairman of General Motors can wield similar threats with regard to Mexico and other sectors of the Third World. And East Europe. While GM plans to close 21 plants in the US and Canada, it has opened a $690 million assembly plant in East Germany with great expectations, heightened by the fact that, thanks to 43 percent unofficial unemployment, workers are willing to "work longer hours than their pampered colleagues in western Germany" at 40 percent of the wage and with few benefits, the Financial Times reports. Capital can readily move; people cannot, or are not permitted to by those who applaud Adam Smith's doctrines when it suits their needs.

It is not that Daimler-Benz is greatly suffering from the labor costs that management deplores. Two weeks after issuing the threat to move Mercedes production to Russia, the same chief executive, Edzard Reuter, announced the "excellent result" of an exceptionally strong first-quarter performance for 1992, with a profit rise of 14 percent and a 17 percent increase in sales, largely abroad; German workers are not quite the intended market for the Mercedes division, the chief profit earner for this huge conglomerate, which will slash up to 10,000 jobs in 1992, Reuter added, with another 10,000 to follow. Such facts. however, do not impress the US press, where the news columns bitterly assailed striking German workers for their "soft life," long vacations, and general lack of understanding of their proper place as tools of production for the rich and powerful. They should learn the lessons taught to American workers by the Caterpillar corporation at the same time: profits and productivity up, wages down, the right to strike effectively eliminated by the free resort to scabs ("permanent replacement workers").2-36

These are the fruits of the fierce corporate campaign undertaken as soon as American workers finally won the right to organize in the mid 1930s, after long years of bitter struggle and violent repression unmatched in the industrial world. Perhaps we may even return to the days when the admired philanthropist could preach the virtues of 'honest, industrious, self-denying poverty' to the victims of the great depression of 1896, shortly after he had brutally crushed the steel workers union at Homestead, while announcing that the defeated workers had sent him a wire saying, 'Kind master, tell us what you wish us to do and we will do it for you." It was because he knew "how sweet and happy and pure the home of honest poverty is' that Carnegie sympathized with the rich, he explained, meanwhile sharing their grim fate in his lavishly appointed mansions.2-37.

So a well-ordered society should run, according to the 'vile maxim of the masters' (54-57).

And from Chapter 3 North-South/East-West:
3.3. Return to Normalcy

'Unexpected side effects' of the invisible hand have also been found in Russia, again eliciting much surprise. A front-page New York Times headline reads: 'The Russian's New Code: If It Pays, Anything Goes.' 'It is not just a matter of crime, corruption, prostitution, smuggling, and drugs and alcohol abuse,' all on the rise: 'There is also a widespread view that ... people are out for themselves and anything goes' — unlike the United States, where pursuit of the 'vile maxim of the masters' is unknown, or the Third World domains that have been subject to our helping hand. 'Swindles and bribes are hardly a new phenomenon in Russia,' correspondent Celesting Bohlen observes, and were familiar in the 'old Communist system' — again, unlike the US and its clients.

During the same days, the Times was reporting the saga of President Fernando Collor of Brazil, the fair-haired boy of Washington and the business community, who broke new records in corruption in a richly-endowed country that has been a 'testing area' for US experts for half a century (see chapter 7). One may recall a few domestic examples of corruption as well, from the days of the Founding Fathers, no slouches in this game, and on to the Reaganites and Wall Street in the 1980s. Corruption is an intrinsic feature of "the old Communist system," the ideological institutions (correctly) proclaim: [however] under "capitalist democracy," it is an aberration, quickly corrected.

The new "ostentatious wealth sets most citizens' nerves on edge," Bohlen continues, describing the standard consequences of neo-liberal remedies. "Crime has soared in Russia after the collapse of Communism, as it did in Eastern Europe," including white-collar crimes, which have "taken off." But "the levels of crime are still well below New York's standards." There is still room for progress towards the capitalist ideal.

The economies of Eastern Europe stagnated or declined through the eighties, but went into free fall as the IMF regimen was adopted with the end of the Cold War in 1989. By the fourth quarter of 1990, Bulgaria's I industrial output (which had previously remained steady) had dropped 17 percent, Hungary's 12 percent, Poland's over 23 percent, Romania's 301 percent. The UN Economic Commission for Europe reported in late 1991 that the region's output had declined 1 percent in 1989,10 percent in 1990, and 15 percent in 1991, predicting a farther decline of 20 percent for 1991, with the same or worse likely in 1992. One result has been a general disillusionment with the democratic opening, even some growing support for the former Communist parties. In Russia, the economic collapse has led to much suffering and deprivation, as well as "weariness, cynicism, and anger, directed at all politicians, from Yeltsin down," Brumberg reports, and particularly at the ex-Nomenklatura who, as predicted, are coming to be the typical Third World elite serving the interests of the foreign masters. In public opinion polls, half the respondents considered the August 1991 Putsch illegal, one-fourth approved, and the rest had no opinion.

Support for democratic forces is limited, not because of opposition to democracy, but because of what it becomes under Western rules. It will either have the very special meaning dictated by the needs of the rich men, or it will be the target of destabilization, subversion, strangulation, and violence until proper behavior is restored. Exceptions are rare.3-20

Loss of faith in democracy is of small concern in the West, though the "bureaucratic capitalism" that might be introduced by Communists-turned-yuppies is a potential problem. In the Western doctrinal system, democratic forms are meritorious as long as they do not challenge business control. But they are secondary: the real priority is integration into the global economy with the opportunities this provides for exploitation and plunder.

With IMF backing, the European Community (EC) has provided a clear test of good behavior for Eastern Europe. In the old days, the Russians had to prove that they were not "flirting with the thought" of supporting the aspirations of "the common man." Today, East Europe must demonstrate that "economic liberalization with a view to introducing market economies" is irreversible. There can be no attempts at a "Third Way" with unacceptable social democratic features, let alone more substantive steps towards democracy and freedom, such as workers' control. The chief economic adviser to the EC, Richard Portes, defined acceptable "regime change" not in terms of democratic forms, but as "a definitive exit from the socialist planned economy—and its irreversibility." One recent IMF report, Peter Gowan notes, "concentrates overwhelmingly on the Soviet Union's role as a producer of energy, raw materials, and agricultural products, giving very little scope for the republics of the former Soviet Union to play a major role as industrial powers in the world market." Transfer of ownership to employees, he notes, "has commanded strong popular support in both Poland and Czechoslovakia," but is unacceptable to the Western overseers, conflicting with the free market capitalism to which the South must be subjected.

The South, that is. Conforming to traditional practice, the EC has raised barriers to protect its own industry and agriculture, thereby closing off the export market that might enable the East bloc to reconstruct its economies. When Poland removed all import barriers, the EC refused to reciprocate, continuing to discriminate against half of Polish exports. The EC steel lobby called for "restructuring" of the East European industry in a way that would incorporate it within the Western industrial system; the European chemical industry warned that construction of free market economies in the former Soviet empire "must not be at the expense of the long-term viability of Western Europe's own chemical industry." And as noted, none of the state capitalist societies accept the principle of free movement of labor, a sine qua non of free market theory. Eastern Europe, or at least large parts of it, is to return to the Third World service role.3-21

The situation is reminiscent of Japan in the 1930s, or of the Reagan-Bush Caribbean Basin Initiative, which encourages open export-oriented economies in the region while keeping US protectionist barriers intact, undermining possible benefits of free trade for the targeted societies.3-22 The patterns are as pervasive as they are understandable.

The US has watched developments in Eastern Europe with some discomfort. Through the 1980s, it sought to impede East-West trade relations and the dissolution of the Soviet empire. In August 1991, George Bush advised Ukraine not to secede just before it proceeded to do so. One reason is that after Reagan's wild party for the rich, the US is not well-placed to join German-led Europe and Japan in taking advantage of the newly opened sectors of the South. Liberal Democrats urge that "foreign aid" be diverted from Central America to the USSR, warning that without the traditional export-promotion devices, the EC and Japan will exploit "the vast trade and investment potential of Eastern Europe" while "We debate how to clear up two foreign policy debacles" (Senator Patrick Leahy); no serious person would be so rude as to suggest that we might at least help wash away some of the rivers of blood we have spilled. In 1992, President Bush proposed his Freedom Support Act to remedy the problem. A "stream of high-ranking US officials and big-business leaders" lobbied for the measure, Amy Kaslow reports. Ambassador Robert Strauss urged rapid action "lest US firms lose out to the huge consumer market of the former Soviet Union." The Act will provide "new opportunities" for US "farmers [agribusiness] and manufacturers," and "help pave the way for US corporations to explore vast new markets." There is no confusion about just whose "Freedom" is being "Supported."3-23

3.4. Some Free Market Successes

It would only be fair to add that the IMF-Worid Bank recipe now being imposed upon the former Soviet empire has its successes. Bolivia is a highly-touted triumph, its economy rescued from disaster by the 1985 New Economic Policy prescribed by the expert advisers now plying their craft in Eastern Europe. Public employment was sharply cut, the national mining company was sold off leading to massive unemployment of miners, real wages dropped, rural teachers quit in droves, regressive taxes were introduced, the economy shrank along with productive investment, while inequality increased. In the capital, Melvin Burke writes, "street vendors and beggars contrast with the fancy boutiques, posh hotels and Mercedes-Benzes." Real per capita GNP is three-fourths what it was in 1980, and foreign debt absorbs 30 percent of export earnings. As a reward for this economic miracle, the IMF, Interamerican Development Bank, and the G-7 Paris Club offered Bolivia extensive financial assistance, including secret payments to government ministers.

The miracle that is so admired is that prices stabilized and exports are booming. About two-thirds of export earnings are now derived from coca production and trade, Burke estimates. The drug money explains the stabilization of currency and price levels, he concludes. About 80 percent of the $3 billion in annual drug profits is spent and banked abroad, mainly in the US, providing a lift to the US economy as well. This profitable export business "obviously serves the interests of the new illegitimate bourgeoisie and the 'narco-generals' of Bolivia," Burke continues, and "also apparently serves the United States national interest, inasmuch as money laundering has not only been tolerated by the United States but has, in fact, been encouraged." It is "the poor peasant coca growers" who "struggle to survive against the combined armed might of the United States and the Bolivian military," Burke writes. There are always plenty more to ensure that the economic miracle will continue, eliciting much praise.

Confirming these figures, Waltrad Morales estimates that about 20 percent of the labor force depends for a livelihood on coca/cocaine production and trade, which amounts to about half of Bolivia's GDP. The export miracle has disrupted land prices and agricultural development, "and as a consequence Bolivians can no longer feed themselves." Malnutrition for children under 5 is over 50 percent higher than the (awful) regional average. A third of the country's food must be imported. "This 'national food crisis'—further aggravated by the neoliberal economic model—has contributed to the marginalisation of the peasantry, which has forced many of them to grow coca leaf in order to survive," in a downward cycler.3-24

On to Poland.

Achievements have also been recorded elsewhere, thanks to timely US intervention and expert management. Take Grenada. After its liberation in 1983—following several years of US economic warfare and intimidation that have been effectively barred from history—it became the largest per capita recipient of US aid (after Israel, a special case). The Reagan Administration proceeded to make it a "showcase for capitalism," the conventional formula as a country is rescued from its population and set on the right course by its benefactors; Guatemala in 1954 is another announced "showcase" that should be famous (see chapter 7.7). The reform programs, which brought the usual social and economic disaster, are condemned even by the private sector they were designed to benefit. Furthermore, "the invasion has had the long-term effect of neutering the island's political life," Carter Special Assistant Peter Bourne reports from Grenada where he is teaching at the Medical School whose students were "rescued": "No creative vision aimed at plans for solving Grenada's social and economic ills has emerged from the lackluster and pliantly pro-American leaders" as the island suffers from record levels of alcoholism and drug abuse, and "crippling social malaise," while much of the population can only "flee their beautiful country."

There is, however, one bright spot, Ron Suskind reports in a frontpage Wall Street Journal article headlined "Made Safe by Marines, Grenada Now is Haven for Onshore Banks." The economy may be "in terrible economic shape," as the head of a local investment firm and member of Parliament observes—thanks to USAID-run structural adjustment programs, the Journal fails to add. But the capital "has become the Casablanca of the Caribbean, a fast-growing haven for money laundering, tax evasion and assorted financial fraud," with 118 offshore banks, one for every 64 residents. Lawyers, accountants, and some businessmen are doing well; as, doubtless, are the foreign bankers, money launderers, and drug lords, safe from the clutches of the carefully crafted "drug war."3-25

The US liberation of Panama recorded a similar triumph. The poverty level has increased from 40 percent to 54 percent since the 1989 invasion. Guillermo Endara, sworn in as President at a US military base on the day of the invasion, would receive 2.4 percent of the vote if an election were held, according to 1992 polls. His government designated the second anniversary of the US invasion a "national day of reflection." Thousands of Panamanians "marked the day with a 'black march' through the streets of this capital to denounce the US invasion and the Endara economic policies," the French press agency reported. Marchers claimed that US troops had killed 3000 people and buried many corpses in mass graves or thrown them into the sea. The economy has not recovered from the battering it received from the US embargo and the invasion. A leader of the Civic Crusade, which led the middle-class opposition to Noriega, told Chicago Tribune reporter Nathaniel Sheppard that "Economic sanctions imposed by the U.S. against our will in 1987 to oust Noriega did nothing to hurt him but ruined our economy. Now we believe the sanctions may have been part of a plan to destroy our economy in such a way that we would not have strong ground to demand dignity and better treatment from the US." George Bush's June 1992 visit, which ended quickly in a well-publicized fiasco, "focused attention on long-simmering animosity toward Bush" for the invasion, Sheppard reported; the "rifle-toting American troops" in residential neighborhoods are a particular irritant, and the mood was not improved when security forces accompanied by "about eight American personnel" invaded the home of a National Assembly member, rifling through papers, taking passports, firing shots, and intimidating his wife, who was home alone, he alleged.

A post-invasion report on Panama presented to the UN Committee of Economic, Social and Cultural Rights by Mexican Ambassador Javier Wimer reports that the economy has collapsed, with "catastrophic effects in the areas of food, housing, and basic services such as health, education, and culture." Human rights violations are on the rise as a result of the invasion and subsequent efforts to "liquidate the vestiges of the former nationalism," with labor rights under particular attack along with any institutions that might be "nuclei of civic protest and political opposition." The governments of Panama and the US are jointly responsible for "serious and systematic" human rights violations, his report concluded. According to the respected Central America Report (Guatemala, CAR), the US drug war may be providing a cover for attacks on community activists by the security forces and other human rights abuses.

But some indicators are up. The General Accounting Office of Congress reported that drug trafficking "may have doubled" since the invasion while money laundering has "flourished," as was predicted at once by everyone who paid attention to the tiny European elite whom the US restored to their traditional rule. A study financed by USAID reported that narcotics use in Panama is the heaviest in Latin America, up by 400 percent since the invasion. The executive-secretary of the Center of Latin American Studies, which participated in the study, says that US troops "constitute a very lucrative market for drugs," contributing to the crisis. The increase is "unprecedented,... especially among the poor and the young," The Christian Science Monitor reports.3-26

Another triumph of free market democracy was recorded in Nicaragua, where the Chamorro government and US Ambassador Harry Shiaudeman signed accords opening the way for the US Drug Enforcement Agency (DEA) to operate there "in an attempt to control the growing drug trafficking problem," CAR reports. The DEA agent in Costa Rica declared that Nicaragua is now "being used as a corridor for transferring Colombian cocaine to the United States," and a Department of Justice prosecutor added that the Nicaraguan financial system is laundering drug money. There is also a growing drug epidemic within Nicaragua, fueled by the high level of drug use by recent returnees from Miami as well as the continued economic decline and the new avenues for drug trafficking since the US regained control. "Since the installation of the Chamorro government and the massive return of Nicaraguans from Miami," CAR reports, "drug consumption has increased substantially in a country long free from drug usage." Miskito leader Steadman Fagoth accused two members of the Chamorro cabinet, his former contra associate Brooklyn Rivera and the minister of fishing for the Atlantic Coast, of working for the Colombian cartels. The Nicaraguan delegate to the Ninth International Conference on the Control of Drug Trafficking in April 1991 alleged that Nicaragua "has now become a leading link in cocaine shipments to the US and Europe." In Managua, the number of street children is rapidly increasing, as is drug addiction, which had been virtually eliminated by 1984. Ten-year-old children sniff glue on the street, saying that "it takes away hunger."

In fairness, we should mention a sign of economic progress now that the US has regained control: marketing of shoe cement to fill the children's bottles, imported through a multinational supplier, has become a lucrative business.3-27

A conference attended by government officials and NGOs in Managua in August 1991 concluded that the country now has 250,000 addicts and is becoming an international bridge for drug transport, (in comparison 400,000 addicts are reported in Costa Rica, 450,000 in Guatemala, 500,000 in El Salvador). Addiction is increasing particularly among young people. A conference organizer commented that "In 1986 there wasn't one reported case of hard drugs consumption" while "in 1990, there were at least 12,000 cases." 118 drug dealing operations were identified in Managua alone, though it is the Atlantic Coast that has become the international transit point for hard drugs, leading to increased addiction. US journalist Nancy Nusser reports from Managua that cocaine has become "readily available only since president Violeta Chamorro took office in April 1990," according to dealers. "There wasn't any coke during the Sandinistas' time, just marijuana," one dealer said. Minister of Government Carios Hurtado said that "the phenomenon of cocaine trafficking existed before, but at a low level." Now it is burgeoning, primarily through the Atlantic Coast according to "a ranking Western diplomat with knowledge of drug trafficking" (probably from the US Embassy), who describes the Coast now as "a no man's land." In the Miami Herald, Tim Johnson reports that El Salvador too "is finding itself afflicted by a new scourge: drug trafficking." It is now outranked only by Panama and Guatemala as a corridor for cocaine shipments to the US.3-28

Drugs are becoming "the newest growth industry in Central America," CAR reports, as a result of the "severe economic conditions in which 85 percent of the Central American population live in poverty" and the lack of jobs, conditions exacerbated by the neoliberal onslaught. But the problem has not reached the level of Colombia, where security forces armed and trained by the US are continuing their rampage of terror, torture, and disappearances, targeting political opposition figures, community activists, trade union leaders, human rights workers, and the peasant communities generally while US aid "is furthering the corruption of the Colombian security forces and strengthening the alliance of blood between right-wing politicians, military officers and ruthless narcotics traffickers," according to human rights activist Jorge Gomez Lizarazo, a former judge. The situation in Peru is still worse3-29 (79-86).

Notes to pages 54-7 (Chapter 2 'Contours of World Order')

34. See below, ch. 7; Deterring Democracy, ch. 7. Nancy Wright, Multinational Monitor, April 1990, cited in Gar Alperovitz and Kai Bird, Diplomatic History, Spring 1992. See also James Petras, Monthly Review, May 1992.

35. Fitzgerald, Tom. Between Life and Economics. Foreign staff, "US and Japan shy from investing in UK," Financial Times, Sept. 25,1992.

36. Fisher, Marc. "Why Are German Workers Striking? To Preserve Their Soft Life," Washington Post service, International Herald Tribune, May 4; Andrew Fisher, Financial Times, May 20; Christopher Parkes, Financial Times; Kevin Done, Financial Times, Sept. 24 (GM); The Financial Times; June 4,1992. Elaine Bernard, "The Defeat at Caterpillar," ms. Harvard Trade Union Program, May 1992.

37. Sexton, Cayo Patricia. War on Labor and the Left, 83f. See ch. 11, below.

Notes to pages 79-86 (Chapter 3 'North-South/East-West')

3-3. Gerschenkron, Alexander. Econonomic Backwardness in Historical Perspective, 146, 150. Du Boff, Richard Accumuiation and Power, 176, citing [Simon] Kuznets.

3-20. Feffer, John. Shock Waves: Eastern Europe After the Revolution, 22, 112, 129. Brumberg, The New York Review of Books, Jan. 30; The Financial Times, Feb. 3; Robinson, The Financial Times, April 28, 1992. Haynes, European Business and Economic Development, Sept. 1992. Economic indicators; The Financial Times, Sept. 28,1992. Engelberg, The New York Times, Feb. 9; The Wall Street Journal, Feb. 4; Glaser, The New York Times, April 19; Bohlen, The New York Times, Aug. 30,1992. Continental Illinois, see p. 63. Children, see DD, ch. 7;' h. 9.5, below. Polanyi, Great Transformation.Miller, Founding Finaglers. On the Costa Rican exception and US attitudes towards it from the 1940s, see M, lllf., App. V.I; DD, 221f., 273ff.

3-21. Gowan, Peter. World Policy Journal, Winter 1991-92.

3-22. See Deere, Carmen Diana et al. In the Shadows, 213; McAfee, Kathy. Storm Signals: Structural Adjustment and Development Alternatives in the Caribbean.

3-23. See Deterring Democracy, chs. 1.6,3.3. Amy Kaslow, Christian Science Monitor, Aug. 12,1992.

3-24. Burke, Melvin. Current History, Feb. 1991; Morales, Waltrad, Third World Quarterly, vol. 13.2, 1992. See also Peter Andreas et al., "Dead-End Drug Wars," Foreign Policy, winter 1991-92.

3-25. McAfee, Kathy. Storm Signals: Structural Adjustment and Development Alternatives in the Caribbean, ch. 7. Bourne, Peter, Orlando Sentinel, April 12, 1992. Ron Suskind, The Wall Street Journal, Oct. 29,1991. Chomsky, Noam. Deterring Democracy, 162. On the suppressed history, see Necessary Illusions: Thought Control in Democratic Societies>,177 f.

3-26. CAR (Central America Report), Sept. 27, 1991; June 5, 1992. Latinamerica press (Lima), June 4,1992. AFP, Chicago Sun-Times, Dec. 22, 1991. Sheppard, Chicago Tribune, June 18, May 22, Sept. 1, 1992. Proceso (Mexico), Dec. 2, 1992 (LANU)-Kenneth Sharpe, Chicago Tribune, Dec. 19,1991. Andreas, op. cit. Joachim Bamrud, The Christian Science Monitor. Jun. 24,1991.

3-27. CAR, Sept.20, Nov. 29, May 3,1991. Links (National Central America Health Rights Network), Summer 1992.

3-28. Felipe, Jaime. Inter Press Service, Subtext (Seattle), Sept. 3-l6; Nusser, AWnews service, Sept. 26; Tim Johnson, Miami Herald, Dec. 3,1991.