Archive for January, 2015

The Davos oligarchs are right to fear the world they’ve made

Tuesday, January 27th, 2015

Escalating inequality is the work of a global elite that will resist every challenge to its vested interests

The billionaires and corporate oligarchs meeting in Davos this week are getting worried about inequality. It might be hard to stomach that the overlords of a system that has delivered the widest global economic gulf in human history should be handwringing about the consequences of their own actions.

But even the architects of the crisis-ridden international economic order are starting to see the dangers. It’s not just the maverick hedge-funder George Soros, who likes to describe himself as a class traitor. Paul Polman, Unilever chief executive, frets about the “capitalist threat to capitalism”. Christine Lagarde, the IMF managing director, fears capitalism might indeed carry Marx’s “seeds of its own destruction” and warns that something needs to be done.

The scale of the crisis has been laid out for them by the charity Oxfam. Just 80 individuals now have the same net wealth as 3.5 billion people – half the entire global population. Last year, the best-off 1% owned 48% of the world’s wealth, up from 44% five years ago. On current trends, the richest 1% will have pocketed more than the other 99% put together next year. The 0.1% have been doing even better, quadrupling their share of US income since the 1980s.

This is a wealth grab on a grotesque scale. For 30 years, under the rule of what Mark Carney, the Bank of England governor, calls “market fundamentalism”, inequality in income and wealth has ballooned, both between and within the large majority of countries. In Africa, the absolute number living on less than $2 a day has doubled since 1981 as the rollcall of billionaires has swelled.

In most of the world, labour’s share of national income has fallen continuously and wages have stagnated under this regime of privatisation, deregulation and low taxes on the rich. At the same time finance has sucked wealth from the public realm into the hands of a small minority, even as it has laid waste the rest of the economy. Now the evidence has piled up that not only is such appropriation of wealth a moral and social outrage, but it is fuelling social and climate conflict, wars, mass migration and political corruption, stunting health and life chances, increasing poverty, and widening gender and ethnic divides.

Escalating inequality has also been a crucial factor in the economic crisis of the past seven years, squeezing demand and fuelling the credit boom. We don’t just know that from the research of the French economist Thomas Piketty or the British authors of the social study The Spirit Level. After years of promoting Washington orthodoxy, even the western-dominated OECD and IMF argue that the widening income and wealth gap has been key to the slow growth of the past two neoliberal decades. The British economy would have been almost 10% larger if inequality hadn’t mushroomed. Now the richest are using austerity to help themselves to an even larger share of the cake.

The big exception to the tide of inequality in recent years has been Latin America. Progressive governments across the region turned their back on a disastrous economic model, took back resources from corporate control and slashed inequality. The numbers living on less than $2 a day have fallen from 108 million to 53 million in little over a decade. China, which also rejected much of the neoliberal catechism, has seen sharply rising inequality at home but also lifted more people out of poverty than the rest of the world combined, offsetting the growing global income gap.

These two cases underline that increasing inequality and poverty are very far from inevitable. They’re the result of political and economic decisions. The thinking person’s Davos oligarch realises that allowing things to carry on as they are is dangerous. So some want a more “inclusive capitalism” – including more progressive taxes – to save the system from itself.

But it certainly won’t come about as a result of Swiss mountain musings or anxious Guildhall lunches. Whatever the feelings of some corporate barons, vested corporate and elite interests – including the organisations they run and the political structures they have colonised – have shown they will fight even modest reforms tooth and nail. To get the idea, you only have to listen to the squeals of protest, including from some in his own party, at Ed Miliband’s plans to tax homes worth over £2m to fund the health service, or the demand from the one-time reformist Fabian Society that the Labour leader be more pro-business (for which read pro-corporate), or the wall of congressional resistance to Barack Obama’s mild redistributive taxation proposals.

Perhaps a section of the worried elite might be prepared to pay a bit more tax. What they won’t accept is any change in the balance of social power – which is why, in one country after another, they resist any attempt to strengthen trade unions, even though weaker unions have been a crucial factor in the rise of inequality in the industrialised world.

It’s only through a challenge to the entrenched interests that have dined off a dysfunctional economic order that the tide of inequality will be reversed. The anti-austerity Syriza party, favourite to win the Greek elections this weekend, is attempting to do just that – as the Latin American left has succeeded in doing over the past decade and a half. Even to get to that point demands stronger social and political movements to break down or bypass the blockage in a colonised political mainstream. Crocodile tears about inequality are a symptom of a fearful elite. But change will only come from unrelenting social pressure and political challenge.

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As inequality soars, the nervous super rich are already planning their escapes

Monday, January 26th, 2015

Hedge fund managers are preparing getaways by buying airstrips and farms in remote areas, former hedge fund partner tells Davos during session on inequality

With growing inequality and the civil unrest from Ferguson and the Occupy protests fresh in people’s mind, the world’s super rich are already preparing for the consequences. At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

Johnson, who heads the Institute of New Economic Thinking and was previously managing director at Soros, said societies can tolerate income inequality if the income floor is high enough. But with an existing system encouraging chief executives to take decisions solely on their profitability, even in the richest countries inequality is increasing.

Johnson added: “People need to know there are possibilities for their children – that they will have the same opportunity as anyone else. There is a wicked feedback loop. Politicians who get more money tend to use it to get more even money.”

Global warming and social media are among the trends the 600 super-smart World Economic Forum staffers told its members to watch out for long before they became ubiquitous. This year, income inequality is fast moving up the Davos agenda – a sure sign of it is poised to burst into the public consciousness.

Jim Wallis, founder of Sojourners and a Davos star attraction after giving the closing address in 2014, said he had spent a lot of time learning from the leaders behind recent social unrest in Ferguson. He believes that will prove “a catalytic event” which has already changed the conversation in the US, bringing a message from those who previously “didn’t matter”.

So what is the solution to having the new voices being sufficiently recognised to actually change the status quo into one where those with power realise they do matter?

Clarke said: “Solutions are there. What’s been lacking is political will. Politicians do not respond to those who don’t have a voice In the end this is all about redistributing income and power.”

She added: “Seventy five percent of people in developing countries live in places that are less equal than they were in 1990.”

The panellists were scathing about politicians, Wallis describing them as people who held up wet fingers “to see which way the money is blowing in from.”

Author, philosopher and former academic Rebecca Newberger-Goldstein saw the glass half full, drawing on history to prove society does eventually change for the better. She said Martin Luther King was correct in his view that the arch of history might be long, but it bends towards justice.

In ancient Greece, she noted, even the greatest moralists like Plato and Aristotle never criticised slavery. Newberger-Goldstein said: “We’ve come a long way as a species. The truth is now dawning that everybody matters because the concept of mattering is at the core of every human being.” Knowing you matter, she added, is often as simple as having others “acknowledge the pathos and reality of your stories. To listen.”

Mexican micro-lending entrepreneur Carlos Danel expanded on the theme. His business, Gentera, has thrived by working out that “those excluded are not the problem but realising there’s an opportunity to serve them.”

He added: “Technology provides advantages that can lower costs and enable us to provide products and services that matter to the people who don’t seem to matter to society. And that’s beyond financial services – into education and elsewhere.”

Which, Danel believes, is why business was created in the first place – to serve. A message that seemed to get lost somewhere in the worship of profit.

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– Research thanks to Kierin M.

‘It is profitable to let the world go to hell’

Thursday, January 22nd, 2015

As politicians and business leaders gather in Davos, climate expert Jørgen Randers argues that democracy will continue to hamper climate action

How depressed would you be if you had spent more than 40 years warning of an impending global catastrophe, only to be continually ignored even as you watch the disaster unfolding?

So spare a thought for Jørgen Randers, who back in 1972 co-authored the seminal work Limits to Growth (pdf), which highlighted the devastating impacts of exponential economic and population growth on a planet with finite resources.

As politicians and business leaders gather in Davos to look at ways to breathe new life into the global battle to address climate change, they would do well to listen to Randers’ sobering perspective.

The professor of climate strategy at the Norwegian Business School has been pretty close to giving up his struggle to wake us up to our unsustainable ways, and in 2004 published a pessimistic update of his 1972 report showing the predictions made at the time are turning out to be largely accurate.

What he cannot bear is how politicians of all persuasions have failed to act even as the scientific evidence of climate change mounts up, and as a result he has largely lost faith in the democratic process to handle complex issues.

In a newly published paper in the Swedish magazine Extrakt he writes:

It is cost-effective to postpone global climate action. It is profitable to let the world go to hell.

I believe that the tyranny of the short term will prevail over the decades to come. As a result, a number of long-term problems will not be solved, even if they could have been, and even as they cause gradually increasing difficulties for all voters.

Randers says the reason for inaction is that there will be little observable benefit during the first 20 years of any fiscal sacrifice, even though tougher regulations and taxes will guarantee a better climate for our children and grandchildren.

He has personal experience of this, having chaired a commission in Norway that in 2006 came up with a 15-point plan to solve the climate problem if every Norwegian was willing to pay €250 (£191) in extra taxes every year for the next generation or so.

If the plan had been given the green light, it would have allowed the country to cut its greenhouse gas emissions by two-thirds by 2050 and provide a case study other rich countries could learn from.

He says:

In my mind, the cost was ridiculously low, equivalent to an increase in income taxes from 36% to 37%, given that this plan would eliminate the most serious threat to the rich world in this century.

In spite of this, a vast majority of Norwegians were against this sacrifice. To be frank, most voters preferred to use the money for other causes – like yet another weekend trip to London or Sweden for shopping.

When it comes to more regulation or higher taxes, Randers says voters tend to revolt and, as a result, politicians will continue to refuse to take courageous steps for fear of being thrown out of office at the next election.

“The capitalist system does not help,” says Randers. “Capitalism is carefully designed to allocate capital to the most profitable projects. And this is exactly what we don’t need today.

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– research thanks to Kael L.

Prosecute Torturers and Their Bosses

Tuesday, January 20th, 2015

– If I were to consider renouncing my U.S. citizenship, this would be very near the top of the list of reasons why.  

– The U.S. executed Japanese soldiers after WWII as war criminals for doing the same stuff the U.S. did here and claimed it was OK.   I don’t think so.

“No amount of legal pretzel logic can justify the behavior detailed in the report. Indeed, it is impossible to read it and conclude that no one can be held accountable. At the very least, Mr. Obama needs to authorize a full and independent criminal investigation.”

– dennis

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Since the day President Obama took office, he has failed to bring to justice anyone responsible for the torture of terrorism suspects — an official government program conceived and carried out in the years after the attacks of Sept. 11, 2001.

He did allow his Justice Department to investigate the C.I.A.’s destruction of videotapes of torture sessions and those who may have gone beyond the torture techniques authorized by President George W. Bush. But the investigation did not lead to any charges being filed, or even any accounting of why they were not filed.

Mr. Obama has said multiple times that “we need to look forward as opposed to looking backwards,” as though the two were incompatible. They are not. The nation cannot move forward in any meaningful way without coming to terms, legally and morally, with the abhorrent acts that were authorized, given a false patina of legality, and committed by American men and women from the highest levels of government on down.

Americans have known about many of these acts for years, but the 524-page executive summary of the Senate Intelligence Committee’s report erases any lingering doubt about their depravity and illegality: In addition to new revelations of sadistic tactics like “rectal feeding,” scores of detainees were waterboarded, hung by their wrists, confined in coffins, sleep-deprived, threatened with death or brutally beaten. In November 2002, one detainee who was chained to a concrete floor died of “suspected hypothermia.”

These are, simply, crimes. They are prohibited by federal law, which definestorture as the intentional infliction of “severe physical or mental pain or suffering.” They are also banned by the Convention Against Torture, the international treaty that the United States ratified in 1994 and that requires prosecution of any acts of torture.

So it is no wonder that today’s blinkered apologists are desperate to call these acts anything but torture, which they clearly were. As the report reveals, these claims fail for a simple reason: C.I.A. officials admitted at the time that what they intended to do was illegal.

In July 2002, C.I.A. lawyers told the Justice Department that the agency needed to use “more aggressive methods” of interrogation that would “otherwise be prohibited by the torture statute.” They asked the department to promise not to prosecute those who used these methods. When the department refused, they shopped around for the answer they wanted. They got it from the ideologically driven lawyers in the Office of Legal Counsel, who wrote memos fabricating a legal foundation for the methods. Government officials now rely on the memos as proof that they sought and received legal clearance for their actions. But the report changes the game: We now know that this reliance was not made in good faith.

No amount of legal pretzel logic can justify the behavior detailed in the report. Indeed, it is impossible to read it and conclude that no one can be held accountable. At the very least, Mr. Obama needs to authorize a full and independent criminal investigation.

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Scientists react to warmest year: 2014 underscores ‘undeniable fact’ of human-caused climate change

Monday, January 19th, 2015

In 134 years of temperature records, the warmth in 2014 exceeded them all, NOAA and NASA announced today.

Unsurpassed heating of the world’s oceans fueled the chart-topping warmth.

Ocean temperatures were more than 1 F above average, NOAA said.  They warmed to a new record even in the absence of an El Niño event, a naturally occurring cycle of ocean heating in the tropical Pacific.

“This is the first year since 1997 that the record warmest year was not an El Niño year at the beginning of the year, because the last three have been,”  Gavin Schmidt, who directs the NASA Goddard Institute for Space Studies, told the Post’s Chris Mooney.

Related: It’s official: 2014 was the hottest year in recorded history(Washington Post Wonk Blog)

Land temperatures weren’t quite record-setting, but still ranked 4th warmest since the start of the data set in 1880. California, much of Europe, including the United Kingdom, and parts of Australia all experienced their warmest years.

News of record global warmth may surprise residents of the eastern U.S., which witnessed colder than normal temperatures in 2014. But the chill was an anomaly and, in fact, the eastern U.S. was among the coolest areas of the world compared to normal.

In NOAA’s analysis of global temperatures, 7 of 12 months in 2014 reached record highs, including December.

Thirteen of the warmest 15 years on record have occurred since the year 2000 according to Climate Central, a non-profit science communications organization based in Princeton, New Jersey. The likelihood of this happening by chance, with the assistance of manmade greenhouse emissions, is less than 1 in 27 million, it calculated.

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Planetary Boundaries 2.0 – new and improved

Sunday, January 18th, 2015

As Science publishes the updated research, four of nine planetary boundaries have been crossed

Four of nine planetary boundaries have now been crossed as a result of human activity, says an international team of 18 researchers in the journal Science (16 January 2015). The four are: climate change, loss of biosphere integrity, land-system change, altered biogeochemical cycles (phosphorus and nitrogen).

Two of these, climate change and biosphere integrity, are what the scientists call “core boundaries”. Significantly altering either of these “core boundaries” would “drive the Earth System into a new state”.

“Transgressing a boundary increases the risk that human activities could inadvertently drive the Earth System into a much less hospitable state, damaging efforts to reduce poverty and leading to a deterioration of human wellbeing in many parts of the world, including wealthy countries,” says Lead author, Professor Will Steffen, researcher at the Centre and the Australian National University, Canberra. “In this new analysis we have improved our quantification of where these risks lie.”

Other co-authors from the Centre are Johan Rockström, Sarah Cornell, Ingo FetzerOonsie Biggs, Carl Folke and Belinda Reyers.

Request publication

What’s new?
The new paper is a development of the Planetary Boundaries concept, which was first published in 2009, identifying nine global priorities relating to human-induced changes to the environment. The science shows that these nine processes and systems regulate the stability and resilience of the Earth System – the interactions of land, ocean, atmosphere and life that together provide conditions upon which our societies depend.

The research builds on a large number of scientific publications critically assessing and improving the planetary boundaries research since its original publication. It confirms the original set of boundaries and provides updated analysis and quantification for several of them, including phosphorus and nitrogen cycles, land-system change, freshwater use and biosphere integrity.

Though the framework keeps the same processes as in 2009, two of them have been given new names, to better reflect what they represent, and yet others have now also been assessed on a regional level.

“Loss of biodiversity” is now called “Change in biosphere integrity.” Biological diversity is vitally important, but the framework now emphasises the impact of humans on ecosystem functioning. Chemical pollution has been given the new name “Introduction of novel entities,” to reflect the fact that humans can influence the Earth system through new technologies in many ways.

“Pollution by toxic synthetic substances is an important component, but we also need to be aware of other potential systemic global risks, such as the release of radioactive materials or nanomaterials,” says Sarah Cornell, coordinator of the Planetary Boundaries research at the Centre. “We believe that these new names better represent the scale and scope of the boundaries,” she continues.

In addition to the globally aggregated Planetary Boundaries, regional-level boundaries have now been developed for biosphere integrity, biogeochemical flows, land-system change and freshwater use. At present only one regional boundary (South Asian Monsoon) can be established for atmospheric aerosol loading.

Nine planetary boundaries
1. Climate change
2. Change in biosphere integrity (biodiversity loss and species extinction)
3. Stratospheric ozone depletion
4. Ocean acidification
5. Biogeochemical flows (phosphorus and nitrogen cycles)
6. Land-system change (for example deforestation)
7. Freshwater use
8. Atmospheric aerosol loading (microscopic particles in the atmosphere that affect climate and living organisms)
9. Introduction of novel entities (e.g. organic pollutants, radioactive materials, nanomaterials, and micro-plastics).

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The rate of sea-level rise is ‘far worse than previously thought,’ study says

Sunday, January 18th, 2015

Researchers have come up with a new and improved way of measuring the rise in the sea level, and the news is not good: The seas have risen dramatically faster over the last two decades than anyone had known.

For hundreds of years, the seas were measured by more or less the equivalent of plopping a yard stick into the ocean and seeing if the ocean went up or down. But now, that method looks to be outdated.

According to a new study published on Wednesday in Nature, the new method involves an advanced statistical model that analyzes all of the factors contributing to sea rise. It has yielded what appears to be a much more accurate picture of the oceans and suggests previous studies had severely underestimated the acceleration of recent sea rise.

“What this paper shows is that the sea-level acceleration over the past century has been greater than had been estimated by others,” lead writer Eric Morrow said in a statement. “It’s a larger problem than we initially thought.” Co-author Carling Hay added in an interview with BBC: “The acceleration into the last two decades is far worse than previously thought. This new acceleration is about 25 percent higher than previous estimates.”

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