How International Financial Elites Change Governments to Implement Austerity [counterpunch]

Feb. 28, 2014

by ISMAEL HOSSEIN-ZADEH

Many countries around the world are plagued by all kinds of armed rebellions, economic sanctions, civil wars, “democratic” coup d’états and/or wars of “regime change.” These include Ukraine, Venezuela, Syria, Thailand, Iran, Afghanistan, Iraq, Egypt, Yemen, Somalia and Lebanon. Even in the core capitalist countries the overwhelming majority of citizens are subjected to brutal wars of economic austerity.

While not new, social convulsions seem to have become more numerous in recent years. They have become especially more frequent since the mysterious 9-11 attacks on the World Trade Center in 2001 and the 2008 financial collapse in the United States, which soon led to similar financial implosions and economic crises in Europe and beyond.

Despite their many differences, these social turbulences share two common features. The first is that they are largely induced, nurtured and orchestrated from outside, that is, by the Unites States and its allies—of course, in collaboration with their class allies from inside. And the second is that, contrary to the long-established historical pattern of social revolutions, where the desperate and disenfranchised masses rebelled against the ruing elites, in most of the recent struggles it is the elites that have insigated insurgencies and civil wars against the masses. The two features are, of course, integrally intertwined: essentially reflecting the shared interests and collaborative schemes of the international plutocracies against the global 99%.

Fighting to Make Austerity Economics Universal

The official rationale (offered by the U.S. and its allies) that the goal of supporting anti-government opposition forces in places such as Syria, Ukraine and Venezuela is to spread democracy no longer holds any validity; it can easily be dismissed as a harebrained pretext to export neoliberalism and spread austerity economics. Abundant and irrefutable evidence shows that in places where the majority of citizens voted for and elected governments that were not to the liking of Western powers, these powers mobilized their local allies and hired all kinds of mercenary forces in order to overthrow the duly elected governments, thereby quashing the majority vote.

Such blatant interventions to overturn the elections that resulted from the majority vote include the promotion of the Orange Revolution in Ukraine (2004 and 2014), Rose Revolution in Georgia (2003), Cedar Revolution in Lebanon (2005), Tulip Revolution in Kyrgyzstan (2005) and the Green Revolution in Iran (2009). They also include the relentless agitation against the duly elected governments of the late Hugo Chavez and now his successor Nicolás Maduro in Venezuela, as well as the rejection (and effective annulment) of the duly elected Hamas government in Palestine.

So, the real driving forces behind wars of regime change need to be sought elsewhere; specifically, in the imperatives of expansion and accumulation of capital on a global level. Socialist, social-democratic, populist or nationalist leaders who do not embrace neoliberal economic policies, and who may be wary of having their markets wide open to unbridled foreign capital, would be targeted for replacement with pliant leaders, or client states. This is, of course, not a new explanation of economic imperialism; it is as old as the internationalization of trade and investment.

What is relatively new, and seems to be the main driving force behind the recent wars of regime change, is that, as the U.S. and other major capitalist powers have lately embarked on austerity economic policies at home they also expect and, indeed, demand that other countries follow suit. In other words, it is no longer enough for a country to open its markets to investment and trade with Western economic powers. It seems equally important to these powers that that country also dismantle its public welfare programs and implement austerity measures of neoliberalism.

For example, after resisting imperialist pressures for years, the late Libyan leader Muammar al-Gaddafi eventually relented in 1993, and granted major oil and other transnational corporations of Western powers lucrative investment and trade deals. Under pressure, he even dismantled his country’s nuclear technology altogether in the hope that this would please them to “leave him” alone, so to speak. None of the concessions he made, however, proved satisfactory to the U.S. and its allies, as his regime was violently overthrown in 2011and he was literally butchered by the thuggish gangs that were trained and armed by Western powers.

Why? Because the U.S. and its allies expected more; they wanted him to follow the economic guidelines of the “experts” of global finance, that is, of the U.S. and European economic “advisors,” of the International Monetary Fund and of the World Trade Organization—in short, to dismantle his country’s rather robust state welfare programs and to restructure its economy after the model of neoliberalism.

The criminal treatment of al-Gaddafi can help explain why imperialist powers have also been scheming to overthrow the populist/socialist regimes of the late Hugo Chavez and his successor in Venezuela, of the Castro brothers in Cuba, of Rafael Correa Delgado in Ecuador, of Bashar Al-assad in Syria and of Evo Morales in Bolivia. It also helps explain why they overthrew the popularly elected nationalist governments of Mohammad Mossadeq in Iran, of Jacobo Arbenz in Guatemala, of Kusno Sukarno in Indonesia, of Salvador Allende in Chile, of Sandinistas in Nicaragua, of Jean-Bertrand Aristide in Haiti and of Manuel Zelaya in Honduras.

The imperialist agenda of overthrowing al-Gaddafi and other “insubordinate” proponents of welfare state programs abroad is essentially part of the same evil agenda of dismantling such programs at home. While the form, the context and the means of destruction maybe different, the thrust of the relentless attacks on the living conditions of the Libyan, Iranian, Venezuelan or Cuban peoples are essentially the same as the equally brutal attacks on the living conditions of the poor and working people in the US, UK, France and other degenerate capitalist countries. In a subtle way they are all part of an ongoing unilateral class warfare on a global scale. Whether they are carried out by military means and bombardments or through the apparently “non-violent” processes of judicial or legislative means does not make a substantial difference as far as their impact on people’s lives and livelihoods is concerned.

The powerful plutocratic establishment in the core capitalist countries does not seem to feel comfortable to dismantle New Deal economics, Social Democratic reforms and welfare state programs in these countries while people in smaller, less-developed countries such as (al-Gaddafi’s) Libya, Venezuela or Cuba enjoy strong, state-sponsored social safety net programs. Plutocracy’s intolerance of “regimented” economies stems from a fear that strong state-sponsored economic safely net programs elsewhere may serve as “bad” models that could be demanded by citizens in the core capitalist countries.

In a moment of honesty, former U.S. President Harry Truman is reported as having expressed (in 1947) the unstated mission of the United States to globalize its economic system in the following words: “The whole world should adopt the American system. The American system can survive in America only if it becomes a world system” [1].

In a similar fashion, Lord Cecil Rhodes, who conquered much of Africa for the British Empire, is reported to have suggested during the heydays of the Empire that the simplest way to achieve peace was for England to convert and add the rest of the world (except the United States, Germany and few other Western powers of the time) to its colonies.

The Mafia equivalent of Truman’s or Rhodes’ statements would be something like this: “You do it our way, or we break your leg.”ismaelhz

The mindset behind Truman’s blunt statement that the rest of the world “should adopt the American system” has indeed served as something akin to a sacred mission that has guided the foreign policy of the United States ever since it supplanted the British authority as the major world power…

Excerpted; full article link: http://www.counterpunch.org/2014/02/28/how-international-financial-elites-change-governments-to-implement-austerity/

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