Showing posts with label Corporate Rights. Show all posts
Showing posts with label Corporate Rights. Show all posts

Tuesday, May 12, 2009

Vote to test corporate water rights

By Ann S. Kim, Staff Writer; published May 11 by the Portland (ME) Press-Herald

A key battle in Maine's ongoing war over water will be decided in Wells on Saturday.

Voters at a town meeting will decide whether theirs will become the latest community to ban water extraction by companies like Poland Spring.

Rather than trying to regulate water extraction, the ordinance takes a "rights-based" approach by asserting that ecosystems have rights to exist, flourish and evolve naturally in town. Wells and any of its residents would have standing to seek damages in court against any company that interfered with those rights.

Under the ordinance, corporations would have no constitutional rights within the town. The Supreme Court has found that corporations have some constitutional rights – such as a right to free speech and against government taking of property without due process – but not others, such as the right against self-incrimination.

Two other Maine towns – Shapleigh and Newfield – used such an approach to adopt similar measures this year. The neighboring towns acted after Poland Spring, a subsidiary of Nestle Waters North America, started the process to drill test wells in search of a potential new water source.

In Wells, the controversy stems from a proposed 30-year contract between Poland Spring and the Kennebunk, Kennebunkport and Wells Water District. Under that proposal – tabled indefinitely last summer because of a public outcry – the company would have been able to draw a maximum of 432,000 gallons a day from the Branch Brook aquifer. By comparison, the district's average daily water usage is about 2.8 million gallons, and peak use is about 7 million gallons a day.

The town attorney for Wells has advised selectmen that she believes the proposed rights-based ordinance violates federal and state constitutional principles, as well as state law and the town charter. Selectmen declined by a vote of 3-2 to put the ordinance on a town ballot, but supporters of the measure gathered enough petition signatures to force a town meeting.

The town's Ordinance Review Committee, meanwhile, is working on regulations for water extraction. A draft may be presented to selectmen May 27, said Bill Gosbee, the group's chairman.

The Pennsylvania-based Community Environmental Legal Defense Fund promotes the rights-based approach of the water ordinances and others dealing with issues ranging from sludge spreading to corporate agriculture to mining.

Regulatory schemes have failed to protect ecosystems and have instead helped "the corporate boys build a better permit," said Gail Darrell, the fund's community organizer in New England. A different view of nature – as something that must be able to preserve itself, rather than being plundered for profit – was needed, she said.

"If we treat nature as though it has rights, we can protect it," Darrell said. "So if a corporation understands, if it destroys nature, they have to fix it. They need to be responsible for the destruction."

Darrell questions why a corporation's goals should trump those of people when people are the source of governing power and corporations are only "creations of the state." She considers court decisions giving corporations constitutional rights "illegitimate."

"'Corporation' is not in our Constitution," she said.

While corporations are artificial legal entities, courts decide whether to treat them like people when it comes to constitutional rights, said H. Cabanne Howard, a University of Maine School of Law professor. No state or municipality has the authority to negate the rights that courts say corporations have, he said.

"You can't just pass a statute saying those decisions don't matter," he said.

Dave Owen, another Maine Law professor, said a local ordinance can't trump state law, which includes a regulatory scheme that allows the extraction of water by companies like Poland Spring, with certain limitations.

Owen, who specializes in environmental law, worked as a lawyer in California with environmental groups that tried to limit water extraction and with counties that defended groundwater management ordinances against constitutional challenges.

"The better approach, if this group is frustrated with that state scheme, would be to try to change it at the state level. Passing an inconsistent local ordinance would be only a symbolic act," Owen wrote in an e-mail message.

Leah Rachin, the attorney for Wells, says the ordinance would likely be found illegal in a challenge.

If the ordinance passes at the town meeting, she said, it could be challenged by a party that has standing, one that could point to a particular injury.

Selectmen would have the option to ask a court for a determination of the ordinance's legality, Rachin said.

Poland Spring would have no legal standing in Shapleigh or Newfield, where the company has no property or business operations, said Mark Dubois, the company's natural resource manager. More work has been done in Wells, he said, but it is too early to look into whether the company would have legal standing there.

In Pennsylvania, Belfast Township in Fulton County repealed its ban on corporate farming after the state attorney general's office took action.

The office targeted the ordinance, based on others by the Community Environmental Legal Defense Fund, because it tried to restrict activities allowed in the state constitution, said Nils Frederiksen, a spokesman for the office. Under a state law, the attorney general has the authority to challenge local ordinances that violate farming-related state laws.

Skip Clark of Wells, a supporter of the rights-based ordinance, worries that the water district could enter into a deal before residents fully understand the issue. In the meantime, he said, the rights-based ordinance offers protection.

"The courts decide it's not constitutional – that's no problem," he said. "It gains time for this entire issue to be thrashed out."


Read more!

Friday, November 14, 2008

Ted Nace: The demise of California's Measure T is bad news for the environment

Humboldt County's groundbreaking restrictions on out-of-county corporate campaign contributions to local elections, has been declared "null and void" through an agreement with the County Board of Supervisors and Pacific Legal Foundation, a pro-business legal group. We've posted a press release on the defeat, by Measure T sponsors Democracy Unlimited of Humboldt County, on our e-news blog here. Ted Nace wrote the following, which was posted to Grist on November 13.

"Market failure" is one cause of environmental problems, but "democracy failure" is even worse.

Russia and China aren't the only examples. It also happens closer to home, as illustrated by last week's decision by California's Humboldt County to abandon Measure T, a local law banning non-local corporate money from local elections.

For years Humboldt County, like many rural counties in lumber or mining areas, was dominated by a single corporation -- Pacific Lumber, a subsidiary of Texas-based Maxxam, Inc.

For local voters, the last straw came when Maxxam spent several hundred thousand dollars on a recall initiative against District Attorney Paul Gallegos after Gallegos prosecuted Maxxam for fraudulent timber harvest filings. In 2006, after Gallegos survived the recall, the grassroots campaign that had organized to support him pushed through Measure T on a 55-to-45 percent vote.

The drafters of Measure T were aware of the U.S. Supreme Court's Bellotti decision (1979), which established the precedent that corporations could enjoy First Amendment rights under the U.S. Constitution. In Bellotti, the Court invalidated a Massachusetts statute similar to Measure T that prohibited corporate spending on referendums. But the author of the Bellotti decision, Justice Lewis Powell, suggested that in situations where the "relative voice of corporations has been overwhelming" or where corporate influence has threatened "the confidence of the people in the democratic process and the integrity of government," limits on corporate political money would be acceptable.

Both exceptions seemed to fit the situation in Humboldt. For example, in 2004, research conducted by Humboldt State University indicated that four out of five local voters felt that heavy corporate contributions made political corruption more likely.

Not only was Measure T popular with local voters, it was seen as a template for anti-corporate activists across the country. That makes all the more stunning last week's capitulation by the Humboldt County board of supervisors in response to pressure by the Pacific Legal Foundation, a right-wing think tank. In a settlement signed on November 7 [PDF], the supervisors not only declared the ordinance null and void, but also promised to pay the Pacific Legal Foundation $44,000 within 60 days.

Why did Humboldt County cave on a matter that had passed by such a large majority and that had been crafted to meet the requirements of Supreme Court precedent? The probable answer is that the county simply couldn't afford the fight. In September, Federal District Court Judge Susan Illston, a Clinton appointee, had granted PLF's request for an injunction [PDF] against Measure T, agreeing that the measure was "underinclusive" (because it targeted only non-local corporations) and that it should have made an exception for ballot initiatives (ignoring Powell's statements in Bellotti). Faced with the likelihood of spending large legal fees on a case where the judge appeared to have made up her mind, the County decided to bow out of the fight.

What's sad about the demise of Measure T is that the principle that corporations don't belong in politics was actually a mainstream feature of American law for the first 200 years of the country's history. As late as 1970, for example, the state of Wisconsin had a statute that stated, "No corporation doing business in this state shall pay or contribute, or offer consent or agree to pay or contribute, directly or indirectly, any money, property, free service of its officers or employees or thing of value to any political party, organization, committee or individual for any political purpose whatsoever, or for the purpose of influencing legislation of any kind, or to promote or defeat the candidacy of any person for nomination, appointment or election to any political office" (Wis. Laws, Lection 4479a (Sec. I, ch 492, 1905).

It is only since the late 1970s that Supreme Court decisions have established new corporate First Amendment rights, extending the Fourteenth Amendment rights won by corporate attorneys in the 1880s. This sort of corporate hegemony is bad for public morale, bad for democracy, and ultimately bad for the environment.


Read more!

Wednesday, October 8, 2008

Ecuador voters approve rights of nature

On September 28, Ecuadorian voters approved a new constitution that is the first in the world to recognize legally enforceable ecosystem rights, or Rights of Nature.

The Ecuadorian Constituent Assembly developed the new constitutional provisions with the assistance of the Community Environmental Legal Defense Fund (CELDF), which is pioneering similar work in the US by helping more than a dozen local municipalities in Pennsylvania, New Hampshire and Virginia with drafting and adopting similar laws.

"Ecuador is now the first country in the world to codify a new system of environmental protection based on rights," stated Thomas Linzey, CELDF's Executive Director.

Article 1 of the new "Rights for Nature" chapter of the Ecuador constitution reads: "Nature or Pachamama, where life is reproduced and exists, has the right to exist, persist, maintain and regenerate its vital cycles, structure, functions and its processes in evolution. Every person, people, community or nationality, will be able to demand the recognitions of rights for nature before the public bodies."

The Ecuadoran declaration is a departure from settled U.S. law, in that all of the major environmental laws in the U.S. - including the Clean Air Act, the Clean Water Act, and similar state laws - treat nature as property, with no rights in and of itself. These laws legalize environmental harms by regulating how much pollution or destruction of nature can occur. Rather than preventing pollution and environmental destruction, these laws instead codify it.

The Rights of Natures laws developed by the Legal Defense Fund for local municipalities in the U.S. represent changes to the status of property law, eliminating the authority of a property owner to interfere with the functioning of ecosystems that exist and depend upon that property for their existence and flourishing. These local laws allow certain types of development that do not interfere with the rights of ecosystems to exist and flourish.

These local laws - and now Ecuador's constitution - recognize that ecosystems possess the inalienable and fundamental right to exist and flourish, and that people possess the legal authority to enforce those rights on behalf of ecosystems. In addition, these laws require the governments to remedy violations of those ecosystem rights.


Read more!

Tuesday, September 23, 2008

Bernie Sanders: Bailout Transfers Wealth - Upward

by John Nichols, posted on CommonDreams.org, September 21, 2008

Democratic presidential candidate Barack Obama, like rival John McCain, has yet to take a stand one way of the other on the proposal to have U.S. taxpayers bail out the worst players in the U.S. financial system with a scheme to buy up $700 billion worth of bad loans.

Obama calls McCain "the great deregulator" and warned that the Republican would do to the health care system what had been done to the banking.

McCain's campaign called Obama a "directionless driver" on the economy.

Obama was for helping Wall Street and Main Street, which was better than just helping Wall Street... but not much, when you consider that Main Street rarely wins these wrestling matches. McCain was for keeping "people in their homes and (safeguarding) the life savings of all Americans by protecting our financial system and capital markets," which is this week's variation on the "sound economy" in "crisis" dichotomy of last week.

But neither candidate took a clear stand on the proposal that's being placed on the table.

So what should the contenders -- especially Obama -- be saying?

How about borrowing a page from Vermont Senator Bernie Sanders, who served as a member of the House banking committee before his election to the Senate, where he is now a member of the budget committee.
Sanders actually understands how the current crisis got started.

And the independent senator understands that what is being proposed by the Washington and Wall Street mandarins who got us into this mess as a fix is actually bad policy on steroids.

Here's what Sanders says -- and what Obama and the Democrats should be saying:
For years, as a member of the House Banking Committee and now as a member of the Senate Budget Committee, I have heard the Bush Administration tell us how "robust" our economy was and how strong the "fundamentals" were. That was until a few days ago. Now, we are being told that if Congress does not act immediately and approve the $700 billion Wall Street bailout proposal these "free marketers" have just written up, there will be an unprecedented economic meltdown in the United States and an unraveling of the global economy.

This proposal as presented is an unacceptable attempt to force middle income families (and our children) to pick up the cost of fixing the horrendous economic mess that is the product of the Bush Administration's deregulatory fever and Wall Street's insatiable greed. If the potential danger to our economy was not so dire, this blatant effort to essentially transfer $700 billion up the income ladder to those at the top would be laughable.

Let us be clear. If the economy is on the edge of collapse we need to act. But rescuing the economy does not mean we have to just give away $700 billion of taxpayer money to the banks. (In truth, it could be much more than $700 billion. The bill only says the government is limited to having $700 billion outstanding at any time. By selling the mortgage backed assets it acquires -- even at staggering losses -- the government will be able to buy even more resulting is a virtually limitless financial exposure on the part of taxpayers.) Any proposal must protect middle income and working families from bearing the burden of this bailout.

I have proposed a three part plan to accomplish that goal which includes a five-year, 10% surtax on the income of individuals above $500,000 a year, and $1 million a year for couples; a requirement that the price the government pays for any mortgage assets are discounted appropriately so that government can recover the amount it paid for them; and, finally, the government should receive equity in the companies it bails out so that when the stock of these companies rises after the bailout, taxpayers also have the opportunity to share in the resulting windfall. Taken together, these measures would provide the best guarantee that at the end of five years, the government will have gotten back the money it put out.

Second, in addition to protecting the average American from being saddled with the cost, any serious proposal has to include reforms so that we end the type of behavior that led to this crisis in the first place. Much of this activity can be traced to specific legislation that broke down regulatory safety walls in the financial sector and allowed banks and others to engage in new types of risky transactions that are at the heart of this crisis. That deregulation needs to be repealed. Wall Street has shown it cannot be trusted to police itself. We need to reinstate a strong regulatory system that protects our economy.

Third, we need to address the needs of working families in this country who are today facing very difficult times. If we can bail out Wall Street, we need to respond with equal vigor to their plight. That means, for example, creating millions of jobs through major investments in rebuilding our crumbling infrastructure and creating a new renewable energy system. We must also make certain that the most vulnerable Americans don't freeze in the winter or die because they lack access to primary health care.

Finally, we need to protect ourselves from being at the mercy of giant companies that are "too big to fail," that is, companies who are so large that their failure would cause systemic harm to the economy. We need to assess which companies fall into this category and insist they are broken up. Otherwise, the American taxpayer will continue to be on the financial hook for the risky behavior, the mismanagement, and even the illegal conduct of these companies' executives.

These are the last days of the Bush Administration, the most dishonest and incompetent in modern American history. It is imperative that, at this important moment, Congress stand up for the middle class and for fiscal integrity. The future of our country is at stake.
Read the original posting here.


Read more!

Wednesday, August 6, 2008

Thomas Frank: Why Misgovernment Was No Accident in George W. Bush’s Washington

Published on Tuesday, August 5, 2008 by TomDispatch.com

Washington is the city where the scandals happen. Every American knows this, but we also believe, if only vaguely, that the really monumental scandals are a thing of the past, that the golden age of misgovernment-for-profit ended with the cavalry charge and the robber barons, at about the same time presidents stopped wearing beards.

I moved to Washington in 2003, just in time for the comeback, for the hundred-year flood. At first it was only a trickle in the basement, a little stream released accidentally by the president’s friends at Enron. Before long, though, the levees were failing all over town, and the city was inundated with a muddy torrent of graft.

How are we to dissect a deluge like this one? We might begin by categorizing the earmarks handed out by Congress, sorting the foolish earmarks from the costly earmarks from the earmarks made strictly on a cash basis. We could try a similar approach to government contracting: the no-bid contracts, the no-oversight contracts, the no-experience contracts, the contracts handed out to friends of the vice president. We might consider the shoplifting career of one of the president’s former domestic policy advisers or the habitual plagiarism of the president’s liaison to the Christian right. And we would certainly have to find some way to parse the extraordinary incompetence of the executive branch, incompetence so fulsome and steady and reliable that at some point Americans stopped being surprised and began simply to count on it, to think of incompetence as the way government works.
But the onrushing flow swamps all taxonomies. Mass firing of federal prosecutors; bribing of newspaper columnists; pallets of shrink-wrapped cash “misplaced” in Iraq; inexperienced kids running the Baghdad stock exchange; the discovery that many of Alaska’s leading politicians are apparently on the take — our heads swim. We climb to the rooftop, but we cannot find the heights of irony from which we might laugh off the blend of thug and Pharisee that was Tom DeLay — or dispel the nauseating suspicion, quickly becoming a certainty, that the government of our nation deliberately fibbed us into a pointless, catastrophic war.

Bad Apples All Around
So let us begin on the solid ground of these simple facts: this spectacular episode of misrule has coincided with both the political triumph of conservatism and with the rise of the Washington area to the richest rank of American metropolises. In the period I am describing, gentlemen of the right rolled through the capital like lords of creation. Every spigot was open, and every indulgence slopped out for their gleeful wallowing. All the clichés roared at full, unembarrassed volume: the wines gurgled, the T-bones roasted, the golf courses beckoned, the Learjets zoomed, the contractors’ glass buildings sprouted from the earth, and the lobbyists’ mansions grew like brick-colonial mushrooms on the hills of northern Virginia.

Democrats, for their part, have tried to explain the flood of misgovernment as part of a “culture of corruption,” a phrase at once obviously true and yet so amorphous as to be quite worthless. Republicans have an even simpler answer: government failed, they tell us, because it is the nature of government enterprises to fail. As for the great corruption cases of recent years, they cluck, each is merely a one-of-a-kind moral lapse unconnected to any particular ideology — an individual bad apple with no effect on the larger barrel.

Which leaves us to marvel helplessly at what appears to be a spectacular run of lousy luck. My, what a lot of bad apples they are growing these days!

Corruption is uniquely reprehensible in a democracy because it violates the system’s first principle, which we all learned back in the sunshiny days of elementary school: that the government exists to serve the public, not particular companies or individuals or even elected officials. We Are the Government, insisted the title of a civics primer published in the earnest year of 1945. “The White House belongs to you,” its dust jacket told us. “So do all the other splendid buildings in Washington, D.C. For you are a citizen of the United States.” For you, young citizen, does the Post Office carry letters to every hamlet in the nation. For you does the Department of Agriculture research better plowing methods and the Bureau of Labor Statistics add up long columns of numbers.

The government and its vast workforce serve the people: The idea is so deep in the American grain that we can’t bring ourselves to question it, even in this disillusioned age. Republicans and Democrats may fight over how big government should be and exactly what it should do, but almost everyone shares those baseline good intentions, we believe, that devotion to the public interest.

We continue to believe this in even the most improbable circumstances. Take the worst apple of them all, lobbyist Jack Abramoff, whose astonishing career as a corruptionist has been unreeling in newspaper and congressional investigations since I came to Washington. Abramoff started out as a great political success story, a protégé and then a confidant of the leaders of the conservative faction of the Republican Party. But his career disintegrated on news of the inventive ways he ripped off his clients and the luxury meals and lavish trips with which he bribed legislators.

Journalistic coverage of the Abramoff affair has stuck closely to the “bad apple” thesis, always taking pains to separate the conservative movement from its onetime superstar. What Abramoff represented was “greed gone wild,” asserts the most authoritative account on the subject. He “went native,” say others. Above all, he was “sui generis,” a one-of-a-kind con man, “engaged in bizarre antics that your average Zegna-clad Washington lobbyist would never have dreamed of.”

In which case, we can all relax: Jack Abramoff’s in jail. The system worked; the bad apple has been plucked; the wild greed and the undreamed-of antics have ceased.

Misgovernment by Ideology
But the truth is almost exactly the opposite, whether we are discussing Abramoff or the wider tsunami of corruption. The truth is as obvious as a slab of sirloin and yet so obscured by decades of pettifoggery that we find it almost impossible to apprehend clearly. The truth slaps your face in every hotel lobby in town, but we still don’t get the message.

It is just this: Fantastic misgovernment of the kind we have seen is not an accident, nor is it the work of a few bad individuals. It is the consequence of triumph by a particular philosophy of government, by a movement that understands the liberal state as a perversion and considers the market the ideal nexus of human society. This movement is friendly to industry not just by force of campaign contributions but by conviction; it believes in entrepreneurship not merely in commerce but in politics; and the inevitable results of its ascendance are, first, the capture of the state by business and, second, all that follows: incompetence, graft, and all the other wretched flotsam that we’ve come to expect from Washington.

The correct diagnosis is the “bad apple” thesis turned upside down. There are plenty of good conservative individuals, honorable folks who would never participate in the sort of corruption we have watched unfold over the last few years. Hang around with grassroots conservative voters in Kansas, and in the main you will find them to be honest, hardworking people. Even our story’s worst villains can be personally virtuous. Jack Abramoff, for example, is known to his friends as a pious, polite, and generous fellow.

But put conservatism in charge of the state, and it behaves very differently. Now the “values” that rightist politicians eulogize on the stump disappear, and in their place we can discern an entirely different set of priorities — priorities that reveal more about the unchanging historical essence of American conservatism than do its fleeting campaigns against gay marriage or secular humanism. The conservatism that speaks to us through its actions in Washington is institutionally opposed to those baseline good intentions we learned about in elementary school.

Its leaders laugh off the idea of the public interest as airy-fairy nonsense; they caution against bringing top-notch talent into government service; they declare war on public workers. They have made a cult of outsourcing and privatizing, they have wrecked established federal operations because they disagree with them, and they have deliberately piled up an Everest of debt in order to force the government into crisis. The ruination they have wrought has been thorough; it has been a professional job. Repairing it will require years of political action.

Conservatism-in-power is a very different beast from the conservatism we meet on the streets of Wichita or the conservatism we overhear talking to itself on the pages of Free Republic. For one thing, what conservatism has done in its decades at the seat of power is fundamentally unpopular, and a large percentage of its leaders have been men of eccentric ideas. While they believe things that would get them laughed out of the American Sociological Association, that only makes them more typical of the movement. And for all their peculiarity, these people — Grover Norquist, Tom DeLay, Jack Abramoff, Newt Gingrich, and the whole troupe of activists, lobbyists, and corpora-trons who got their start back in the Reagan years — have for the last three decades been among the most powerful individuals in America. This wave of misgovernment has been brought to you by ideology, not incompetence.

Yes, today’s conservatives have disgraced themselves, but they have not strayed from the teaching of their forefathers or the great ideas of their movement. When conservatives appoint the opponents of government agencies to head those government agencies; when they auction their official services to the purveyor of the most lavish “golf weekend”; when they mulct millions from groups with business before Congress; when they dynamite the Treasury and sabotage the regulatory process and force government shutdowns — in short, when they treat government with contempt — they are running true to form. They have not done these awful things because they are bad conservatives; they have done them because they are good conservatives, because these unsavory deeds follow naturally from the core doctrines of the conservative tradition.

And, yes, there has been greed involved in the effort — a great deal of greed. Every tax cut, every cleverly engineered regulatory snafu saves industry millions and perhaps even billions of dollars, and so naturally securing those tax cuts and engineering those snafus has become a booming business here in Washington. Conservative rule has made the capital region rich, a showplace of the new plutocratic order. But this greed cannot be dismissed as some personal failing of lobbyist or congressman, some badness-of-apple that can be easily contained. Conservatism, as we know it, is a movement that is about greed, about the “virtue of selfishness” when it acts in the marketplace. In rightwing Washington, you can be a man of principle and a boodler at the same time.

The Wrecking Crew in Full Swing
One of the instructive stories We Are the Government brought before generations of schoolkids was the tale of a smiling dime whose wanderings were meant to introduce us to the government and all that it does for us: the miner who digs the ore for the dime has his “health and safety” supervised by one branch of the government; the bank in which the dime is stored enjoys the protection of a different branch, which “sees that [banks] are safe places for people to keep their money”; the dime gets paid in tax on a gasoline sale; it then lands in the pocket of a Coast Guard lieutenant, who takes it overseas and spends it on a parrot, which is “quarantined for ninety days” when the lieutenant brings it home. All of which is related with the blithest innocence, as though taxes on gasoline and quarantines on parrots were so obviously beneficial that they required little further explanation.

Clearly, a more up-to-date version is required. So let us follow the dime as it wends its way through our present-day capital. Its story, we will find, is the reverse of what it was in 1945. That old dime was all about service, about the things government could do for us. But the new dime is about profit — about the superiority of private enterprise, about the huge sums that can be squeezed out of federal operations. Instead of symbolizing good government, the dime now shows us the wrecking crew in full swing.

Our modern dime first comes to Washington as part of some good citizen’s taxes, and it leaves the U.S. Treasury in a payment to a company that has been hired to do work on the nation’s ports. Back in 1945, the government would have done the work itself, but now it uses contractors for such things. This particular contractor knows how to win a bid, but it doesn’t know how to do the work, so it subcontracts the job to another outfit. The dime follows, and it eventually makes up a worker’s salary, who incorporates it into his monthly car payment. From there it travels into the coffers of an auto industry trade association, which happens to be very upset about a rule proposed by a federal agency that would require cars to notify drivers when their tire pressure is low.

So the trade association gives the dime to a Washington consultant who specializes in fighting federal agencies, and this man launches challenge after challenge to the studies that the agency is using in the tire-pressure matter. It takes many years for the agency to make its way through the flak thrown up by this clever fellow. Meanwhile, with his well-earned dime, he buys himself a big house with nice white columns in front.

But this is only the beginning of the story. As we make our rounds of conservative Washington, we glimpse something much greater than single acts of incompetence or obstruction. We see a vast machinery built for our protection reengineered into a device for our exploitation. We behold the majestic workings of the free market itself, boring ever deeper into the tissues of the state. Ultimately, we gaze upon one of the true marvels of history: democracy buried beneath an avalanche of money.

Thomas Frank, the author of What’s the Matter with Kansas?, is the founding editor of The Baffler, a contributing editor at Harper’s, and, most recently, a columnist for the Wall Street Journal. His WSJ columns can be read at his website. He lives, of course, in Washington D.C. and this essay has been adapted from his new book, The Wrecking Crew: How Conservatives Rule (Metropolitan Books, 2008).


Read more!

Tuesday, July 15, 2008

Walden Bello: Doha deal on services poses real perils

From the Bangkok Post

Desperate to clinch a new global trade deal, World Trade Organisation chief Pascal Lamy is planning to convene a "mini-ministerial" meeting in the third week of July.

The aim of the meeting is to come up with agreements to liberalise trade in agriculture, industry, and services which have been the focus of the so-called Doha Round of WTO negotiations that have dragged on since 2001.

Developing country governments have been rightly concerned about agreeing to texts which promise illusory reductions in agricultural subsidies in the European Union and United States and require them to cut their industrial tariffs proportionally more than the developed countries. They should also not allow themselves to be snookered into a bad agreement on services, which include such vital activities as the provision of water, energy, and financial intermediation.

While global attention has focused on the talks on agricultural subsidies and industrial tariffs, the US and EU have made it clear that they will not settle for a trade package that does not include services.

As US Trade Representative Susan Schwab bluntly stated in a recent opinion piece, Washington "will not support a Doha package unless it includes an ambitious outcome on services that delivers commercially meaningful results".

While Ms Schwab portrays the services talks as the poor cousin of the agriculture and industry negotiations, an equally possible outcome is a services agreement unaccompanied by deals in industrial tariffs and agriculture. With the North-South polarisation in agriculture and industry, salvaging Doha with a deal in services, which are said to account for 50-60% of economic activity in most developing countries, might be an attractive option to the EU and US.

The General Agreement on Trade in Services (Gats) requires countries to grant foreign service providers the same treatment as local firms. Developing countries are reluctant to do this, however, because of their current lack of capacity to regulate transnational businesses. Their fears have been fanned by troubles now in the global financial system, which are traceable to the absence of global regulation of developed country financial operators.

While financial services are just one of many services covered by Gats, the US and EU have made a liberalised financial sector their main demand on developing countries. It has been revealed, for instance, that the EU has demanded that some developing countries eliminate regulations that cover the activities of hedge funds, the financial groupings that are said to have triggered the collapse of the baht in 1997.

The EU has also demanded that Mexico open up its market to trade in derivatives, the slippery financial instruments that have played such a key role in the current financial chaos.

Most developing countries welcome foreign capital, but they have learned the hard way that a strong foreign financial presence demands a strong regulatory regime tailored to a particular country's needs and capacities.

It was the indiscriminate elimination of capital controls across the region at the behest of the International Monetary Fund and the US Treasury Department that brought on the devastating Asian financial crisis. With practically all capital controls lifted and investment rules liberalised, some US$100 billion flowed into the key Asian economies between 1993 and 1997, with the money gravitating toward areas of high and quick return, like the stock market and real estate.

With few controls on where the funds went, over-investment soon swamped the stock and housing markets, causing prices to collapse and triggering follow-on dislocations in the exchange rate, the balance of payments, and the balance of trade. Gripped by panic, speculators scampered toward the exit. With both entry and exit rules liberalised, there was no way for governments - except for Malaysia, which defied the IMF and imposed capital controls - to stop the stampede, and the $100 billion that fled the region in a few short weeks in the summer of 1997 brought economic growth to a screeching halt from Korea all the way down to Indonesia.

After the Asian financial crisis, the Argentine financial collapse, and the dot.com crash of 2000-2002, all of which were caused by speculative bubbles that developed owing to lack of financial regulation, one would have thought that developed country authorities would put the emphasis on seriously regulating the activities of global financial actors.

Global finance, however, resisted any move toward effective regulation. While there were calls for controls on proliferating financial instruments such as derivatives, these got nowhere. Assessment and regulation of derivatives were to be left to market players who supposedly had access to sophisticated quantitative "risk assessment" models that were being developed.

Having been burned by the consequences of financial deregulation, many developing country governments were not surprised when "self-regulation" led to the massive housing bubble whose bursting has brought the global financial system to the edge of collapse.

One of the stock scenarios of the old western movies was that of a train picking up speed towards a collision with another train as the lifeless hand of the engineer, already shot dead by outlaws, remained pressed on the accelerator. Current developments in global finance are reminiscent of this scene.

A global consensus is forming around strongly re-regulating the financial sector. But in disregard of this emerging consensus and the financial chaos around them, developed country negotiators at the WTO, much like the dead hand of the engineer, continue to press developing countries for a services agreement that would drastically liberalise their financial sectors!

The developing countries should steer clear of the train wreck that will certainly ensue from the US and EU's determination to pursue global financial liberalisation at any cost. They must not agree to a services deal that would compromise their ability to effectively regulate financial and other services.

Just as they must say no to agricultural and industrial tariff agreements loaded down with inequitable conditions, they must also not be party to a services agreement that would have no other effect but to continually drag them into the terrifying maelstroms of unregulated global finance.

Walden Bello is a professor of sociology at the University of the Philippines, and senior analyst at Focus on the Global South, a research institute at Chulalongkorn University in Bangkok.


Read more!

Saturday, February 16, 2008

Asserting Community Rights Over Corporate Rights

Asserting Community Rights Over Corporate Rights
Communities Take Power: Alliance for Democracy and Barnstead NH Make History
“The Citizens of Barnstead, New Hampshire, Used Local Law to Keep Corporate Giants Out of Their Water” by Doug Pibel Yes! magazine Fall 2007

Rural Communities Act to End Corporate Domination by Ruth Caplan
Justice Rising, Summer 2007 PDF

Speaking Out for the Right of Nature, by Ruth Caplan
Justice Rising, Summer 2007 PDF

Rights of Nature: Tamaqua PA is First in Nation to Pass Law Recognizing the Rights of Nature
Rights of Nature Model Ordinance Developed by CELDF

Our Bodies, Our Water

-- tells how our bodies are increasingly saturated with toxic chemicals; provides two clear steps for community action; and suggested reading and organizations to contact. A two page flyer. PDF

Democracy Schools
-- for other model ordinances and to learn about Democracy Schools which delve deeply into the theory and practice of “rights-based organizing,”


Read more!