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Global Issues: Harmful Economic Systems--the Major Barrier to Peoples' Welfare and Development (Last updated December 11, 2006) The standard economic model of how things work is that people produce and exchange goods. Governments exist to provide “government goods”— things that people cannot provide for themselves, such as national defense. Thus the standard economic view is that activities are essentially productive. While this view has made for a thriving profession of economics, it is not a correct view of reality. The principal difficulty is that there is economic activity that is unproductive and harmful (from the point of view of those being harmed), and that this is a key feature of the economic organization of societies. What follows is a brief analytical description of these societies. Many societies are run on this basic set of principals. Take and maintain control of the government. Use powers of the government to obtain income. Key elements of this process are described in five sections:
And a sixth section Reducing harm gives a too brief discussion of what people are doing to improve matters. The influence on development of poor nations is profound. For many governments, the government/people in the government, in spite of lip service to the contrary, are not principally engaged in helping the people of the country, but rather in helping themselves. This has had and continues to have a disastrous effect on development and the incomes of poor people. The final section of this article discusses this more fully. This article exists to provide an analytical framework to understand the situation and events in many countries, which, considered separately, may be confusing. The basic idea and activity in productive societies is helping to produce goods— things that are useful to someone— food, light bulbs, cars— and then exchanging the income received for goods that are desirable to you. This fundamental economic mechanism exists in “harmful” economic societies as well. Unfortunately, also existing, and why we describe these societies as harmful, a certain strata— usually the top— also exists to obtain goods through means which may be described as unproductive or extractive. The principal ways in which income is obtained in a harmful economic system are twofold: 1) obtain it through the government, or, 2) use the government to maintain, consolidate and increase sources of income that are (apparently) obtained in other ways. The first is most typical or at least most evident in developing countries. Armed conflict--typically the fight for control of the government or territory, frequently with natural resources, by groups deserves a separate discussion, because it has been throughout history the principal way in which harmful economic societies have been established and because of its importance in the world today. There are a wide variety of means in which government officials and others obtain revenue from the government. The first thing to recognize is that people at the top of government, or those who have significant control over the government but who are not government officials--often entrepreneurs or corporations) can and do plunder resources coming into the government. Government revenue is often not devoted to productive services but siphoned off by those in control of the government. A nation expects that its national resources will be used for the benefit of the nation. However very large amounts of such revenue are often used to enrich those in charge of the government. People at lower levels of government can plunder resources too, by not providing services which they are paid to provide, by charging for services which they should provide, or by taking goods, such as medical supplies or automobiles/trucks, which should be used for government service.
There is also "private enterprise" harmful economic activity, where individuals, groups, and firms play a key role. Slavery would be an important example from the past. In the present, the term is "forced labor." An invaluable International Labor Organization report, Forced Labor describes the various types of forced labor. More than 12 million are trapped in forced labor worldwide. International Labor Organization Crime and looting are examples of harmful economic activity in which poor people can participate. Crime, frequently a terrorist activity--using terror to obtain income ("your money or your life")--happens everywhere. Even legitimate governments such as in the United States typically deal only partially with crime. Many neighborhoods in the United States are subjugated to gangs that sell drugs, kill people, and maintain control of their activities through intimidation and murder. Brazilian city wakes to prison gang's power: Plan to transfer jailed gang leaders ignites week of open warfare with police in Sao Paulo. Monte Reel Washington Post May 21, 2006 (You will leave this site and be required to register [once] with the Post.) Armed Conflict. Unfortunately there are many examples of armed conflict in the world today. Examined more closely this conflict is typically over control of the government or specific territory--often territory with natural resources. Thus this conflict is over who will establish control over government/territory and subsequently over control over resources, including the power to tax, arrange oil leases, and so on. In conflict, in addition to the struggle for control over resources, there is typically great harm done to ordinary people, such as murder, amputation of limbs, rape, taking of family food and other resources. (This can be so bad that an end to conflict, even if it then means establishment of an organized system of oppression, is preferable to people.)
In Darfur, terror from the air. Sudan intensifies use of
helicopter gunships and bombs, driving more villagers
from their homes. Glenn
Kessler and Craig Timberg Washington Post
September 9, 2006
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Sudan Says No as U.N. Backs Force For Darfur Glenn
Kessler and Craig Timberg Washington Post
September 1, 2006 Army
unleashes military offensive in Darfur IRIN
September 1, 2006 (You will leave this site.)
Darfur humanitarian assistance near collapse as the
result of increased conflict, U.N. official says IRIN
August 29, 2006
Sudan: Fleeing war to face starvation IRIN
May 18, 2006
Sudanese, rebels sign peace plan for Darfur. U.S.
pressured parties; doubts remain on deal. Glenn
Kessler Washington Post May 6, 2006 'Darfur
is Dying': the game that is anything but
Jose Antonio Vargas Washington Post May
1, 2006
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(The game is available free at
http:/ The following story is an example of how conflict has settled into 'business as usual' with two groups each having control over territory and sources of income, and consequently have little reason to resolve the conflict. The Ivory Coast crisis is good for business Yveline Dévérin Pambazuka News April 29, 2006 Sudan tops 'failed states' index BBC News May 2, 2006 (You will leave this site.) This 'failed states' ranking basically gives an idea of how disorganized states are due to conflict and other factors, and as such is valuable. However, Hunger Notes does not like the concept of failed states as it implies that a functioning effective state is the 'natural' entity, when in fact what actually happens is that states emerge from conflict decided--often after many years-- in someone's favor, typically through force of arms and oppression. And effectiveness is often a pious hope for many years if ever. This failed states/fragile states concept is a contemporary political science look at an important issue. It is also, in Hunger Notes view, somewhat patronizing--developing countries are the states that have failed--and really not ready to be employed in broader historical analysis--should England be considered as a failed state because its colonies rebelled successfully? What about the (former) Soviet Union? The alternative formulation is 'fragile states' which is somewhat better, but subject to the same criticisms. The number of armed conflicts has dropped 40% since 1992. This unheralded decline Is linked to a dramatic increase in UN conflict prevention and peace building efforts. Human Security Center A valuable effort to quantify the number and seriousness of conflict around the world. Who can keep track of trends? Keeping People Oppressed/Preventing Revolution In essence, there is part of the population that is living well because of their control of assets and people. The people whose assets and income have been reallocated don’t like this and thus there is the threat of revolution— overturning the minority in benefit of the majority. This is prevented in a number of ways. A principal way— certainly a very clear way— of keeping people oppressed and unable to move to a situation that might be characterized as democratic, is terrorizing the subject population, including murder and torture. Especially important is killing leaders of the subject population(s) or otherwise keeping them from being a source of unrest (by such means as imprisonment, exile, or bribery). One favorite way of maintaining oppression is to stay in power for a long time, frequently by manipulating or subverting an ostensibly democratic legal framework. Election fraud/rigged elections is a principal way of staying in power. Sometimes legitimate regimes take power. The response of harmful economic regimes will be to try to maintain its sources of power, in preparation for a counter-revolution. Both Liberia and Serbia (and Iraq) are examples, as is Syrian control over Lebanon. LIBERIA: Speaking out about Taylor's son IRIN December 13, 2006 (You will leave this site.) United States Justice Dept. brings first charges for torture abroad. Ex-Liberian president’s son, Chuckie Taylor Indicted for torture in Liberia. Human Rights Watch December 6, 2006 (You will leave this site.) Details of Mexican government's murder, torture of dissidents chillingly documented in new government report Juan Forero Washington Post November 22, 2006 (You will leave this site and be required to register [once] with the Post.) Misery spirals in Burma as junta targets minorities Anthony Faiola Washington Post November 17, 2006 (You will leave this site and be required to register [once] with the Post.)
Top Ethiopian judge flees threats from Ethiopian government, accuses government of killing critics BBC News November 6, 2006 (You will leave this site.) East Timor president tells prime minister to go. Prime minister allegedly provided weapons to civilians to intimidate opponents. BBC News June 21, 2006 (You will leave this site.) Life under Burma's military regime BBC News June 15, 2006 (You will leave this site.) Uganda's Museveni wins election for third term (after changing the constitution to permit three terms, and jailing the main opposition candidate) BBC News February 25, 2005 (You will leave this site) From no party to multi-party: Can Yoweri Museveni be beaten? (political analysis) Charles Onyango-Obbo February 23, 2005 Chinese hold protest leader, land activist. Woman sought to stop confiscation of farmers' land for development. Edward Cody Washington Post December 24, 2005 (You will leave this site and be required to register [once] with the Post.) This is very similar to preventing revolution. However, what is emphasized in this section is preventing overthrow by others who would maintain a structure of harm. Put in another way, how is a structure of harm maintained? Here are news stories about trying to cause and preventing overthrow--most require no elaboration. ANGOLA: From politics of disorder to politics of democratization? Steve Kibble April 23, 2006 An excellent article that describes how Angola continues divided into two parts by political and economic interests--in spite of words to the contrary by the politicians.
Clearing the path for the 'Scion of Egypt': Hosni
Mubarak's son climbs party ranks as country's leaders
undercut his rivals Daniel Williams Some see hand of former governor behind Muslim clash in Afghanistan Craig Witte Washington Post February 20, 2006 (You will leave this site and be required to register [once] with the Post.) Barriers to Entry Countries have "elites" and people. Here is a description of Sudan's elite. Sudan's Unbowed, Unbroken Inner Circle Emily Wax Washington Post May 3, 2005 (You will leave this site and be required to register [once] with the Post.) A major barrier to entry is limiting access to worthwhile employment. African-American Names Penalized During Employment Process, Study Finds Richard Morin Washington Post, August 3, 2003. (You will leave this site and be required to register [once] with the Post.) Other barriers to entry are lack of education, poor health, not being sufficiently 'presentable'--all 'natural' barriers that arise from poverty. Another way is "putting people down." Typically minorities/ordinary people have been disparaged in some way--for their supposed (lack of) intelligence, personal appearance or for some other reason. People can be marginalized because of their skin color, ethnic origin, income level or indications of same, such as names This diminishes people's sense of self-worth, and, combined with actual labor market discrimination based on the same sort of factors, is a major barrier to entry. There has been a reaction against this in many ways in many countries, but it still persists. Ethnic pageants restyle the American beauty contest Robertha Budy heard the insult when she was a little girl, and now, even at Georgia State University in Atlanta, she still hears it. "You're Liberian? Isn't that in Africa? You don't look like it. You're pretty." Darryl Fears Washington Post October 19, 2005 (You will leave this site and be required to register [once] with the Post.) There are major international aspects to harmful economic systems. In fact many would say that international aspects are the most important. In order to focus attention on these international aspects, we mention these aspects in a separate section. However international aspects could as well have been included in specific sections above. Corruption as a form of gaining income is described in the Lynch article. U.N. Panel Says 2,400 Firms Paid Bribes to Iraq. Oil-for-Food Program Report Alleges $1.8 Billion in Payments Colum Lynch Washington Post October 28, 2005 (You will leave this site and be required to register [once] with the Post.) Oil-for-food scandal: key reports BBC News (You will leave this site.) The Bond article presents the idea that resource wealth has been taken from Africans to the benefit of developed countries. Dispossessing Africa's Wealth Patrick Bond November 24, 2005
The impact on development of harmful economic systems has been enormous. Try to think about some of the consequences of what has been described above. They include war, continued devastation over centuries, and control of the government and productive resources, that have left hundreds of millions confronting starvation, while those who "govern" and "own" live very well. A recipe for disaster! And we should not blame the victims--poor people across the world. Rather we should think about how we can help them. War War, basically caused by armed groups seeking to control the government, or territory or resources, has devastated vast regions of the world, and more importantly, vast numbers of the people of the world. Sudan's Darfur 'close to abyss' BBC News November 23, 2006 (You will leave this site.) Armed Conflicts Now the Leading Cause of Hunger Emergencies, FAO Says (May 23, 2005) See also the excellent earlier study by Messer, Cohen and D'Costa Armed Conflict and Hunger. Where is there major armed conflict now? These countries include the Sudan, the Congo, Israel/Palestine, Iraq, Afghanistan, Sierra Leone, Liberia, Northern Uganda, and Colombia, Nepal, Kashmir (conflict between groups allied with Pakistan and India, as well as the countries themselves). Where has there been major conflict in the past which is now somewhat abated but which has still greatly affected the society and its progress? Sri Lanka, Peru, El Salvador, Guatemala--to name a few. Governments, including tax collection, essential public services, and a fair judiciary, are not easily reestablished--if they ever were established in the first place--after a war. How many people live lives of greatly diminished productivity (and happiness) due to conflict!
The government of Burundi faces the daunting task of sorting out a land crisis that continues to deepen as thousands of refugees return home. Photo: © Jocelyne Sambira/IRIN BURUNDI: Huge challenges in solving land crisis as refugees return home to find others farming their land IRIN November 23, 2006 Burundi government under pressure to curb continued rights violations IRIN November 27, 2006 (You will leave this site.) In pictures: Darfur's camp life BBC News July 2006 Global refugees at 26 year low BBC News June 9, 2006 (You will leave this site.) Four years after the end of civil war, food security still lacking in Angola IRIN July 12, 2006 School feeding in Angola provides some nutrition to hundreds of thousands of children Photo: World Food Program Democratic Republic of the Congo: no money, no school IRIN July 12, 2006 School-children peeping through the holes of their school building in Lokanja Lina Nkoy village, Orientale province Photo: Hugo Rämi/IRIN Continued Devastation over Centuries The past five centuries or so have seen considerable hardship for the people living in many (now often past) societies. Africans may be taken as a key example
There has been a struggle for thousands of years by human beings in many different ways against the sort of subjugation described above. To name just one very important example, the world's religions have worked to establish a set of principles for human relationships that were very much against oppression, and though the religions were persecuted for doing so, they did manage to establish at the very least a set of guidelines for human behavior. In all countries of the world there has been a struggle against injustice, and attempts, which have met with increasing success, to establish the societal frameworks for a more just and equitable society. This is a long (and inspiring) story which we cannot recount here. The current efforts in the world to reduce harm include reducing corruption, moving to more democratic governments with established rights and processes (by means such as reducing the influence of the military and improving the fairness of elections--and having them! and reducing police brutality), and, internationally, reducing the advantages which developed nations have assigned to themselves through their control of international institutions, such as United Nations, the World Bank, and the World Trade Organization. LIBERIA: UN maintains diamond sanction, demanding better government controls IRIN December 13, 2006 (You will leave this site.) Chavez wins Venezuela re-election BBC News December 4, 2006 (You will leave this site.) Venezuela: A nation divided as it heads toward the presidential election Nathalie Malinarich BBC News November 28, 2006 (You will leave this site.) BBC photo journal: Life in a Caracas barrio November 27, 2006 (You will leave this site.) BURUNDI: Huge challenges in solving land crisis as refugees return home to find others farming their land IRIN November 23, 2006 Burundi government under pressure to curb continued rights violations IRIN November 27, 2006 (You will leave this site.) NEPAL: Government and Maoist rebels sign final agreement on management of combatants and weapons IRIN November 29, 2006 (You will leave this site.) Ecuador leftist Correa leads vote BBC News November 28, 2006 (You will leave this site.) Ecuador votes for break with past Daniel Schweimler BBC News November 28, 2006 (You will leave this site.) Amateur videos are putting official abuse in new light Mary Jordan Washington Post November 14, 2006 (You will leave this site and be required to register [once] with the Post.) China overturns sentence of activist who raised concerns about forced abortions BBC News November 1, 2006 (You will leave this site.) Burma discusses version of democracy. Burma has been ruled by the military for 44 years, but that could be about to change if the lofty goals set by the country's National Convention are met. BBC News October 23, 2006 (You will leave this site.) An example of very successful grassroots development. Bangladesh's Muhammad Yunus and the Grameen Bank have been awarded the 2006 Nobel Peace Prize for their pioneering work in reaching poor people with credit BBC News October 13, 2006 (You will leave this site.) 2006 Nobel Peace Prize award statement Nobel Peace Prize Committee October 13, 2006 With democratic elections, the people can have a voice. (Though even in a democracy there are difficulties.) The following articles indicate some of the difficulties that Evo Morales faces in Bolivia, even though he was elected as President by a wide margin in a fair election. Bolivian leaders cut ties with Morales. Ruling party moves irk regional heads. Monte Reel Washington Post November 21, 2006 (You will leave this site and be required to register [once] with the Post.) The hidden politics of Bolivia’s Constituent Assembly Dunia Mokrani and Raquel Gutierrez September 5, 2006 In Bolivia, new setbacks to a leader's lofty vision: Morales faces budget shortfalls, labor strife Monte Reel Washington Post August 31, 2006 (You will leave this site and be required to register [once] with the Post.) Loser of Congo election rejects result BBC News November 16, 2006 (You will leave this site.) The Sandinistas and the Liberal party, the two principal parties of Nicaragua, have been in a power (and profit) sharing arrangement in Nicaragua, to the detriment of the people. Daniel Ortega, the Sandinista leader, has won the election. Whether he will continue the policies that keep both parties in power is not clear. Nicaragua's former leader Daniel Ortega gains clear lead in the country's presidential election BBC News November 7, 2006 (You will leave this site.) Eleventh-hour election meddling in Nicaragua Ben Beachy Witness for Peace November 1, 2006 Sandinista aims for comeback in Nicaragua. Ex-president Ortega leads 4-way race. N.C. Aizenman Washington Post July 23, 2006 (You will leave this site and be required to register [once] with the Post.) In this case the East Timor president was allowed to dismiss the prime minister, in accordance with constitutional provisions. Nobel peace prize winner is new East Timor prime minister BBC News July 8, 2006. (You will leave this site.) East Timor president tells prime minister to go. Prime minister allegedly provided weapons to civilians to intimidate opponents. BBC News June 21, 2006 (You will leave this site.) Democratic elections in Bolivia brought in a new government which changed policies, including the degree of control of the government over natural resources. This has been contested by other groups in Bolivia. Six Bolivian leaders cut ties with Morales. Ruling party moves irk regional heads Monte Reel Washington Post November 21, 2006 (You will leave this site and be required to register [once] with the Post.) Bolivia plans to redistribute idle farmland Monte Reel Washington Post May 18, 2006 Bolivia increases control of its natural gas industry Monte Reel and Steven Mufson Washington Post May 2, 2006 Internet Censorship on the Rise in Africa? Patrick Burnett Pambazuka News May 5, 2006 Free speech and a free press/free communication are very important to analyze oppression, communicate possible remedies and take action. U.S. immigrants stage boycott day BBC News May 1, 2006 (You will leave this site.) Freedom of assembly. Stage set for Nepal showdown Sanjoy Majumder BBC News April 23, 2006 (You will leave this site.) Pro-democracy forces vs. the King, who has control of the military. Haiti, A Coup Regime, Human Rights Abuses and the Hidden Hand of Washington Ben Terrall February 12, 2006 Haiti election deal brings hope BBC News February 17, 2006 (You will leave this site) Large voter turnout in Haiti election Claire Marshall BBC News February 8, 2006 (You will leave this site) Voting is good! The Haitian people have a very long history of being oppressed by their government, economic elites, (and international interests, who have a veto power on what can actually be done).
The Great Firewall of
China:
A Letter's Journey in Cyberspace:
Reference Tool on Web Finds Fans, Censors :
Bloggers Pursuing Change Confront Fear, Mistrust
Washington Post February
19-21 The interests of Chinese rural people have been neglected in China's move to industrialization, with farmers and others land being taken with minimal compensation and water resources being used by industry, to name two concerns. Chinese rural people have reacted against this state of affairs as indicated in the following two articles. In the face of rural unrest, China rolls out reforms Edward Cody Washington Post January 28, 2006 (You will leave this site and be required to register once] with the Post.) In Chinese uprisings, peasants find new allies. Protesters gain help of veteran activists. Edward Cody Washington Post November 26, 2005 (You will leave this site and be required to register [once] with the Post.) Harmful economic systems 2005 (last year's version of this page) |