The spread of central bank political unaccountability

GLOBALIZATION PRESSURES AND THE STATE: THE WORLDWIDE SPREAD OF CENTRAL BANK INDEPENDENCE [pdf]

"We predict that countries boost the independence of their central bank from the political power as their exposure to foreign trade, investment, and multilateral lending increases. We also model the cross-national dynamic process of diffusion of central bank independence by examining the impact of cohesive and role-equivalent trade relationships between countries. We test our hypotheses with information on 71 countries between 1990 and 2000, using both event-history modeling and fixed-effects panel-corrected regression. Controlling for domestic variables of a macroeconomic and political nature, we find empirical support for each our predictions. We conclude that globalization pressures have the effect of strengthening certain parts of the state at the expense of others, and raise concerns about the degree of democratic oversight of technocratic institutions."

3 views on the Crisis

David Harvey, The Crisis Today: Marxism 2009 July 15, 2009:



The Roots of the World Ecological Crisis
by John Bellamy Foster, October 29. 2009 (starts at ~17'):


Tom Reifer, July 8 2009
Histories of the Present: Giovanni Arrighi, the Longue Duree of Geohistorical Capitalism, and the Current Crisis

Déjà vu

/ history / repeating itself /

1. The military and political situation in the country is characterized by an exceptional tension, and the increasing aggravation and instability. A deep political crisis of the Afghan society is obvious... [Democracy has] entered the phase of "rollback". The coalition of social forces continues to change in favor of the [insurgency]. The state regime is not capable of stopping the insurgency on its own without principally new cardinal changes.

2. We should honestly admit that our efforts over the last 8 years have not led to the expected results. Huge material resources and considerable casualties did not produce a positive end result -- stabilization of military-political situation in the country. The protracted character of the military struggle and the absence of any serious success, which could lead to a breakthrough in the entire strategic situation, led to the formation in the minds of the majority of the population of the mistrust in the abilities of the regime. That objectively led to demoralization of the masses, and to the erosion of the social base of the revolution. The experience of the past years clearly shows that the Afghan problem cannot be solved by military means only. Within the framework of the old thinking, old approaches we are doomed to the negative end result in... Afghanistan. We should decisively reject our social illusions and undertake principally new steps, taking into account the lessons of the past, and the real situation in the country. . . .

3. The national reconciliation, announced by the Afghan leadership, has not led to a breakthrough in the military-political situation in the country and will not lead to one.

From:
Letter to USSR Minister of Defense on the Situation in Afghanistan, 13 August 1987
by Colonel K. Tsagolov

See also:
Regarding the Further Measures in Afghanistan
Politburo Session, 13 November 1986
About the Results of Eduard Shevardnadze and Anatoly Dobrynin's Visit to Afghanistan
Politburo Session, 21 January 1987

Overview:
Same old mistakes in new Afghan war
Soviet military archives show latest international intervention in Afghanistan has learnt nothing from the war two decades ago

A healthy recession

Life and death during the Great Depression — PNAS:

Correlation and regression analyses confirmed a significant negative effect of economic expansions on health gains. The evolution of population health during the years 1920–1940 confirms the counterintuitive hypothesis that, as in other historical periods and market economies, population health tends to evolve better during recessions than in expansions.

This is not new: "Are Recessions Good For Your Health?" The Quarterly Journal of Economics, 2000:

Total mortality and eight of the ten sources of fatalities examined are shown to exhibit a procyclical fluctuation, with suicides representing an important exception. The variations are largest for those causes and age groups where behavioral responses are most plausible, and there is some evidence that the unfavorable health effects of temporary upturns are partially or fully offset if the economic growth is long-lasting

Although the effect is apparently real, the health benefits during recessions are unequally distributed and widen the income induced health gap:

Self-rated health improved in absolute terms for all occupational groups even after the economic recession. However, the relative disparity increased between the top and middle occupational groups in men.

The health debacles that occur during periods of rapid growth are equally obvious:

Cancer casts a shadow over the villages in this region of China in southern Guangdong province, nestled among farmland contaminated by heavy metals used to make batteries, computer parts and other electronics devices.
Every year, an estimated 460,000 people die prematurely in China due to exposure to air and water pollution, according to a 2007 World Bank study.

.

...Thus adding a few more exhibits to the question of relevance of GDP as any sort of measure of human happiness, or the obviousness of the need for its incessant growth...

Labor History / US

In Memoriam: Crystal Lee Sutton ('Norma Rae'). Working Class Hero.


Ampersand: Labor History: A Brief History of Corporate Whining

By B. Deutsch

Some notes:

1. Commonwealth v. Hunt 1842
2. The Thibodaux Massacre of 1887
3. Triangle Shirtwaist Factory fire (I think this is what the 1912 cartoon refers to)
4. Yellow Dog contracts legal, 1915
5. Child Labor Amendment, 1924
6. Fair Labor Standards Act, 1938
7. Equal Pay Act, 1963
8. Occupational Safety and Health Act, 1970
9. Today

... All this to make a point: it was never easy and they always whined. Not to mention the fact that it always bears reminding that the US was the stage of a hard, bloody and bitter class struggle. And, hey! What do you know, the tide is turning. I did not believe that I'd see the day when an overtly anti-capitalist documentary would be poised to become a major box-office hit in the US, but things sure change fast:

A Marxist History of the 20th century

A Marxist History of the 20th Century. Narrated by Alan Woods, with Lal Khan, Ted Grant and Noam Chomsky. Produced by Heiko Khoo.

The aftereffects

As is generally known, at Semipalatinsk Nuclear Tests Site (SNTS) in the republic of Kazakhstan, 456 nuclear tests were carried out from 1949 to 1989, including 111 atmospheric explosions between 1949 and 1963...
Because of those tests, according to the Kazakh government, approximately 1.6 million people suffered from the tests, and about 1.2 million people are still now troubled with the aftereffects...

Human Suffering Effects of Nuclear Tests at Semipalatinsk,Kazakhstan: Established On the Basis of Questionnaire Surveys Kawano et al. J. Radiat. Res., 47, Suppl., A209–A217 (2006)

The aftereffects (warning: link contains disturbing images)

Back to Kawano et al:

…I believe that my parents, sister - they all died as a result of the nuclear tests. My grandson was born in 1990 having infantile cerebral palsy; we treated his disease for 10 years. In 2000 he died. I also believe that he became sick as a result of the nuclear tests and all people in the area are the victims of the nuclear tests. (Karauyl, M, 1946)

…My daughter was born in 1970, she was also sick from the moment of birth, had dystrophy in feet and lower legs and she was a mentally defective child. She died in 1997. In 1976, my son was born also mentally defective; he is the 2nd category invalid. I think they all suffered [because we live close to] the nuclear test site. (Dolon, F, 1938)

...When talking about the consequences of the nuclear explosions, there standing before my eyes is the image of my innocent daughter born in 1976, who became a victim of nuclear tests. She graduated from teachers’ training college and became a teacher. Her life had just begun, yet at the age of 20 she committed suicide. This is a result of nuclear tests. I curse the Soviet Union, which put the testing ground on Semipalatinsk soil. (Saryzhal, M, 1946)

…People who used to swim in Irtysh River before had some skin disease. Later on it became clear that, especially in the testing ground area (epicenter), an increase in the number of invalid kids and people who committed suicide, and an increase in kinds of illnesses that people were not aware of, were due to the explosions. … (Karauyl, M, 1936)

…I remembered every nuclear test, because we waited for them in fear. It seemed the earth would tumble down at any moment. Such fears have certainly affected our nerves. There are many mentally ill and mentally handicapped people in the village. … (Saryzhal, F, 1945)

ibid

The Monster of Semipalatinsk:

Background radiation levels in the Atomkul district now reach more than 5,000 microroentgens per hour*. Nonetheless, the local people continue to pasture their livestock and grow crops there. A local shepherd told us that the military had warned him that he was grazing his flock on contaminated land, but since he had no dosimeter, he was unable to determine where it would be safe to pasture his animals. Supplying the population with dosimeters, however would not really solve the problem because they are being exposed to the strongest carcinogens, plutonium and americium, particulates of which are carried in the air and breathed by people and animals.

* "Prolonged exposure to 150 microroentgens per hour is the borderline figure for serious health risk hazards. A reading of 1,000 microroentgens is more than 80 times the level of normal "background" radiation. "

The whole Semipalatinsk project brought to you my that shining colossus of socialist compassion Lavrenty Beria!

Neo-Liberal Democracy: A Contradiction in Terms

...in its current form, economic liberalism is perpetuating an inherently undemocratic hegemonic structure through an institutional and coercive manner that not even an authoritarian government could duplicate...

He May Be a Communist

Related: Red Scare

Interview: Hungary—“Where we went wrong”, GM Tamás

ISJ: GM Tamás, a prominent Hungarian dissident and now professor of philosophy in Budapest, spoke to Chris Harman about developments in Eastern Europe since the fall of Stalinism.

What was important in hindsight was that in the first two years I spent in the highest chamber of my country as a lawmaker two million jobs were lost—and I don’t think I noticed. That is one of the greatest shames of my life. I don’t think it figured in political debates at that time. There were important debates concerning constitutional rights and republican versus monarchist symbols, fights over control of state radio and television. I won’t say political conflicts were not important but compared to the economic disaster they were of less importance, and we did not see the interdependence between the two. Why did the ruling class need the centralisation of media power? Because it was losing majority support from the population that were getting impoverished. We were totally naive and our discourse at the time was that of classic liberalism and pretty ineffective. This liberal party will probably now, and quite deservedly, disappear from parliament.

...

From the 1920s the Stalinist system—however monstrous, tyrannical and state capitalist it was—had through urbanisation and industrialisation created the livelihoods and life forms of hundreds of millions of people. They may have been disappointed and dissatisfied with the way of life but nevertheless it was theirs. And nobody had prepared them for what was to replace it. It was not something better, not something we might call “change”, but instead the end to economy as such.

In large parts of Eastern Europe and the Eurasian landmass there was the loss of what we knew of as civilisation, which was very much dependent on the state. The state has barely started to function again in Putin’s Russia—in a very unpleasant way—but it is starting to work regularly, making records, collecting revenue, paying civil servants, answering letters, receiving citizens with complaints. But in the early 1990s even that was not available: it was a total disaster. Meanwhile we, the froth at the top of it, were celebrating the triumph of freedom and openness and plurality and fantasy and pleasure and all that. That was frivolous, and I am deeply ashamed.

...

Soviet-type state capitalism was a commodity-producing, wage labour based, unequal, hierarchic, repressive money economy and a class society to outclass all class societies which was extremely efficient in suppressing proletarian resistance. Revolts against that regime have always been socialist revolutions, in 1956 the workers’ councils in Hungary, in 1968 the humanistic socialism in Czechoslovakia. Solidarność was in fact no trade union but a network of territorially organised workers’ councils which initially wanted a self-management proletarian republic of a self-governing people, before repression made it into a bitterly conservative, pessimistic and Catholic movement to disintegrate at the moment of political “victory”. The Central European style of “enlightened absolutism”, of top-down reforms devised by scientifically and philosophically trained elite planners has not changed since the 18th century. “Communist” economic planners were painlessly transmogrified into neoconservative monetarist planners. For them, in a characteristically positivist manner, “socialism” was but an error in economic calculus. Marginal utility seemed more “modern” than the labour theory of value—and bureaucrats go more willingly with the prevailing fashion than couturiers.

...