Best of the Week
Most Popular
1. UK CPI Inflation, RPI Deflation Forecast 2009 - 30th Dec 08
2. Stock Markets Heading for Test of Lows in January 2009 - 29th Dec 08
3. Great Depression 2009 Similarities to 1930's - 29th Dec 08
4. Foundations of the Financial Crisis - 30th Dec 08
5. Deflation Inflates Global Bond Bubble - 28th Dec 08
Editors Picks
Stock Market Obama Stimulus Plan and the January Effect - 5th Jan 09
Stock Market Investment Screening for Top Yielding Dividend Stocks - 5th Jan 09
Financial Markets Deflationary Crash of 2009 - 5th Jan 09
U.S. Dollar, Stocks and Financial Assets Could Surprise Investors in 2009 - 5th Jan 09
Stock Market Crash 2008 Gives Birth to Baby Bull 2009 - 4th Jan 09
Gold and Crude Oil Trading 2009 Special Report - 4th Jan 09
Why 2009 Deleveraging Stock Market and Commodities Crash is Ripe - 4th Jan 09
Stock Market Investors Buying Beaten Down Stocks - 4th Jan 09
Bad Corporate Earnings Points to Retest of Stock Market Lows - 3rd Jan 09
Bond Market Investors Near the Exit, Stock Market Rally Over Already? - 3rd Jan 09
Stock Market Wave 4 Rally Scenario Intact - 3rd Jan 09
An Unappy New Year for the Financial Markets - 2nd Jan 09
Bailouts Breeding Something for Nothing Economic Policy - 2nd Jan 09
Gloomy Corporate Earnings Prospects Hold Key to Stock Market Investing - 2nd Jan 09
Ten Major Threats Facing the U.S. Dollar in 2009 - 2nd Jan 09
False Deflation Diagnosis and Gold Bullish Crossover Signal - 2nd Jan 09
U.S. CPI Inflation Turning Negative, Deflation? - 2nd Jan 09
Most Popular Financial Markets Analysis of 2008 - 31st Dec 08
How to Invest in Crude Oil 2009 - 31st Dec 08
Stock Market Forecast and Strategy for 2009 - 31st Dec 08
Stock Market Panic's The Greatest Investment Opportunities in History - 31st Dec 08
Agri-Foods Strong Bull Market Investment Fundamentals - 31st Dec 08
Stocks, Interest Rates, Dollar and Commodities Mega-trend Forecasts 2009 - 30th Dec 08
Financial Market Forecasts for 2009  - 30th Dec 08
UK CPI Inflation, RPI Deflation Forecast 2009 - 30th Dec 08
Foundations of the Financial Crisis - 30th Dec 08
Great Depression 2009 Similarities to 1930's - 29th Dec 08
Krugman Still Wrong on the Economy - 29th Dec 08
Stock Markets Heading for Test of Lows in January 2009 - 29th Dec 08

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Best of the Month
December 08
What Happened to the American Dream?
Inflation Deflation Switch Turns Entire Investment World Upside Down for 2009
Deflation Depression II as $10 Trillion Wealth Destroyed
Great Depression 2009 Follows $30 Trillion Deflation
Fiscal Insanity Virus, the Irrational Fear of Deflation
Fed Targeting Long-term Interest Rates to Force Mortgage Rates Lower
The Greatest Wealth Transfer in the History of Mankind Starts Now!
Credit Collapse Financial Market Impacts and Implications
Deflation and the Destruction of America's Wealth
U.S. Federal Reserve Sets Stage for Weimar Style Hyper-inflation
The Market Oracles of Doom
Gold and Gold Stocks to Soar During 2009
Companies Trading at Bargain Basement Values
Financial System in Collapse, Credit Crisis Worst Yet to Come
Crude Oil Forecast 2009- Time to Buy?
Gold Red Alert- Gold Price Backwardation first time in History!
U.S. Housing Market Crash- How Far To The Bottom?
Wealth of Nations- Government Assets Minus Liabilities Analysis
America's Second Great Depression Has Started
UK Interest Rates Forecast to Crash to 1%
Comex Gold Shock and Awe
November 08
Investors Give Thanks for Stock Market Five Day Rally
Bankrupt Britain Trending Towards Hyper-Inflation?
The Real Truth behind the Citigroup Bank Nationalization
U.S. Housing Market Forecast 2009, More Pain No Gain
Manipulated Inflation Statistics An Undisclosed Act of Treason
World Economic Demand is Collapsing
U.S. Treasury the Final Bailout
Critical Week for Global Stock Markets and Economic Recovery
Hope for a Dismal Economy & Stock Market?
Where Stock Market Valuations and Technical Support Intersect
Credit Crisis Worse to Come as Bank Credit Contracts
U.S. Economic Pain Precedes Greatest Investment Opportunity of a Generation
Gloom and Doom Folks Will Soon be Proven Wrong
Agri-Foods Long-term Opportunities Amidst Hedge Funds Deleveraging
Will Fortune Favour the Brave in This Crisis Investment Climate?
After Shocks from the October Financial Markets Crash
Transitions From Stocks Bear Markets To Bull Markets
The Great American Housing Market Nightmare Next Phase
Stock Market Investing Dividend Yields Vs Bond Yields Analysis
U.S. Elections and Performance of Stocks, Dollar and Economy
Emerging Markets Turnaround is Getting Closer—Here's Why
Current Economic Crisis Worse than the Great Depression
FTSE 100 Stock Market Index Forecast Year End Rally
Stock Markets Staring into the Abyss
October 08
Stock Market Price Earnings Reversion Towards the Mean
Comex Gold and Silver Markets Hurtling Towards Default
Crooked Central Bank Plumbing the Depths of Depravity
Wild Crude Oil Markets Long-term Trend
Stock Market Crash Investor Overreaction Value Investing
When Will the Stocks Bear Market End?
Bear Market Deleveraging Producing Incredible Value in Agri-Foods
U.S. Dollar Bull Market Update
U.S. Dollar Driven Gold Price Crash
S&P500 Stock Market Crash Compared to Nikkei Index
Investment Opportunities in Municipal Bonds?
Stocks Bear Market Long-term Investing Strategy
Understanding Derivatives to Understand the Credit Crisis
Zinc Two Year Bear Market Coming to an End?
Stock Market Will Bottom Well Before the Economy
The Mechanism Of Capital Destruction
Fed Fighting to Prevent 1930's Style Financial and Economic Deflation
The Financial and Economic Blue Screen of Death
The U.S. Housing Market Economic Double Negative Feedback Loop
Stocks Bear Market Has NOT Hit Bottom!
Financial Markets Crash Greatest Opportunity in History!
Gold Price Manipulation- Bear Stearns Murdered at the Golden Gates
Central Banks Panic as Bailouts Fail to Halt Stock Market Crash
Financial Crisis 2008 Similar to 1987 Stock Market Crash
UK Interest Rate Forecast 2009
U.S. Economy Rapidly Sinking Into Economic Depression
Manipulation of Gold and Commodity Prices to Prevent Inflation and Higher Interest Rates
Bailout Fixes Nothing, Banking System Collapse Approaches Climax

Most Popular 2008
1. The Great Depression 2008 - It can't happen to us....can it?”
2. The Battle for America Has Begun- Strategic Forecasts
3. UK House Prices Plunge Over the Cliff
4. US Banking System Teetering on the Brink of Collapse
5. US Economy Forecast 2008 - First Recession then Recovery
6. How Safe is My FDIC-Insured Bank Account?
7. Rising Risk of a Systemic Financial Meltdown:The 12 Steps to Financial Disaster By Nouriel Roubini
Most Popular 2007
1. US Housing Market Crash to result in the Second Great Depression
2. Operation FALCON - The USA is turning into a Police State
3. US Housing Bubble Meltdown: "Is it too late to get out"?
4. UK Housing Market Crash of 2007 - 2008 and Steps to Protect Your Wealth
5. Global Liquidity Crisis when the Credit Boom comes to an End
Most Popular 2006
1. Last Warning! Three-Pronged Collapse ... Stocks, Bonds and Real Estate
2. UK Interest Rate forecast for 2007 - Bank of England to do battle with inflation
3. UK Interest Rates Forecast to rise much higher due to rising Inflation and high Money Supply Growth
4. Emerging Markets outlook for 2007 - India, China, Russia, Eastern Europe and Brazil

News Feeds
RSS Feeds
Links
Money Forums
Certz
TradingTheCharts
Housing Market Forecasts

The Movable Green Zone: Blanking the Beach - "The Second Tsunami" - Part 7

Politics / Iraq War Oct 03, 2007 - 12:04 AM

By: Stephen_Lendman

Politics

For coastal Sri Lankans, like those in Arugam Bay, December 26, 2004 felt more like 1945 Hiroshima than life before that fateful day changing everything for them. A devastating tsunami took 250,000 lives and left 2.5 million homeless throughout the region. It affected Arugam Bay, "a fishing and faded resort village" on the island's east coast that government was showcasing in its plans to "build back better." Indeed, but not for the villagers hoteliers, developers and the government wanted removed but weren't sure how until nature did what they couldn't.


Everything was gone, and a blank slate remained for what the tourist industry long wanted - "a pristine beach (in a prime area), scrubbed clean of all the messy signs of people working, a vacation Eden. It was the same up and down the coast once rubble was cleared....paradise."

"New rules" forbade homes on the beach and a "buffer zone" imposed insured it. Beaches were off-limits, displaced Sri Lankans were shoved into temporary grim barracks camps inland, and "menacing, machine-gun-wielding soldiers" patrolled to keep them there.

Tourist operators were treated differently. They were encouraged to build and expand on prime vacated oceanfront land. It was all in a document called the "Arugam Bay Resource Development Plan" to transform the former fishing village into a "high-end 'boutique tourism destination' (with) five-star resorts, luxury....chalets, (and even a) floatplane pier and helipad." Arugam Bay was to be a model for transforming up to 30 similar "tourism zones" into a "South Asian Riviera." When the plan leaked out, people in Arugam Bay and around the country were outraged.

The grand scheme to remake Sri Lanka was around two years earlier and began when the civil war ended. It was to be the country's reentry into the world economy as one of the last remaining uncolonized places globalization hadn't touched, and a high-end tourism project was seen as the right option. It would be a luxury destination for the "plutonomy set," once a few changes were made. Government's 80% land ownership had to be opened to private buyers, more "flexible" labor laws were needed, and modernized infrastructure had to be developed with World Bank and IMF providing funds on their usual shock therapy terms discussed above. With mass public opposition to the ideas, it wouldn't be easy, and before the tsunami hit, militant strikes and street protests held it back.

Sri Lanka's president, Chandrika Kumaratunga, was elected on an "overtly antiprivatization platform," but the tsunami changed everything and helped her see "the free market light." Four days after the disaster, her government passed a bill "pav(ing) the way for water privatization." It also raised gasoline prices and began crafting legislation to privatize the electricity company in pieces. It was like a second tsunami, and the same scheme followed hurricane Mitch in October, 1998 with Hondurus, Guatemala and Nicaragua hardest hit like New Orleans discussed below.

Klein explained when the tsunami struck in 2004, "Washington was ready to take the Mitch model (now familiar) to the next level - aiming not just at individuals laws but at direct corporate control over the construction." Sri Lanka's president complied and created a new body called the Task Force to Rebuild the Nation fully empowered to proceed. On it were the most powerful business leaders from banking and industry including key players from the beach tourism sector. Absent were villagers, farmers, environmentalists or even a "disaster-reconstruction specialist." Klein called the task force a new type corporate coup d'etat mother nature made possible.

In ten days, then had a complete reconstruction blueprint from "housing to highways" with aid money directed to corporate development and nothing for disaster victims. They were destined to become permanent shantytown dwellers similar to the kinds ringing most Global South cities and populating Global North inner ones. Similar stories of law changes and land grabs came out of other affected Southeast Asian countries like Indonesia, Thailand, the Maldives and India where around 150 Tamil Nadu displaced women had to sell their kidneys for food.

A year after the tsunami, NGO ActionAid surveyed the aftermath in five Asian countries and found the same pattern everywhere - residents barred from rebuilding, living in militarized temporary camps, hotels "showered with incentives," no restoration of homes lost, and "entire ways of life" destroyed. In July, 2006 in Sri Lanka, the Tamil Tigers ended their cease-fire and war resumed. It's hard knowing if disaster capitalism had a role because peace was always precarious, the government offered little, and continued violence at least promised a chance for something better before and more than ever now given the choice between disaster capitalism and hope.

Disaster Apartheid - A World of Green and Red Zones

On August 29, 2005, Hurricane Katrina hit the Gulf Coast and flooded New Orleans. The well-off left town, "checked into hotels, and called their insurance companies." For 120,000 others without cars or means of transportation, it was another story. They depended on the state, waited for help and got none. FEMA is supposed to provide it, too, but it was one of the many government functions Bush gutted advancing savage capitalism at the expense of public service.

Katrina was disastrous for those affected, but Milton Friedman saw "an opportunity" in a Wall Street Journal op-ed. It was easy for him to say from his luxury San Francisco digs as well as his like-minded ideologues who met 14 days later to plan how to pounce on the tragedy for profit. They produced 32 Chicago School-type schemes packaged as "hurricane relief" that was a wish list for developers and hell for the displaced. They ranged from suspending Davis-Bacon prevailing wage laws in disaster areas and making the whole area a flat tax free enterprise zone to erasing public schools by giving parents vouchers for privately-run charter ones. They also wanted environmental regulations suspended on the Gulf Coast and permission to drill in the Arctic National Wildlife Refuge that showed how far afield they'd go to capitalize on the shock of a local tragedy.

Things moved fast, and within weeks "the Gulf Coast became a domestic laboratory for the same kind of (outsourcing schemes) pioneered in Iraq." The names were familiar with Halliburton first in line along with Bechtel, Blackwater USA and a host of others homing in for the kill. Billions were at stake, and no open bidding was required, just good connections. As Klein put it: "within days of the storm it was as if Baghdad's Green Zone....lifted from....the Tigris and landed on the bayou....As in Iraq, government once again played the role of a cash machine equipped for both withdrawals and deposits." Corporations took one and repaid with the other in sizable campaign contributions in a pattern now familiar.

They also ignored unemployed locals and relied instead on cheap imported undocumented labor easily exploited. The Bush administration showed its type compassion, too, with $40 billion in budget cuts for essentials like Medicaid, food stamps, student loans and more so funds could go to contractors and the wars in Iraq and Afghanistan. Again, a familiar pattern.

In visiting Iraq, Klein first thought the "Green Zone phenomenon was unique to the war in Iraq." She then discovered it emerges wherever disaster capitalism lands with the same stark divisions between the included and excluded. It was evident in New Orleans with "gated green zones and raging red" ones - not from flood damage but from predatory free market solutions only for the privileged.

The Bush administration refused emergency funds for public sector salaries so 3000 city workers were fired. Charity Hospital closed and still isn't open. Public transit was gutted losing half its workers, and most public housing is still boarded up and empty by design. Some sits on prime land close to the French Quarter, developers want it for luxury properties, and New Orleans is being erased for profit just like Iraq. It was all planned with the storm the excuse to do it.

Earlier "creative destruction" opportunities generated "rust belts," neglected neighborhoods, and underfunded inner city public schools. Creative neglect is at work as well as the American Society of Civil Engineers in 2007 said it will cost $1.5 trillion over five years to bring essential public infrastructure back to standard. Instead it continues to deteriorate while the well-off withdraw into gated communities and luxury condos with all their needs met by private providers. Klein calls this trend a "state-within-a-state that is muscular" and as able as the public one is frail. It no longer can function without help from contractors as government is hollowed so business can prosper.

New Orleans is a window on the future in which survival depends on the ability to pay, and those who can't are discarded like trash. It promises a world of protected Green Zones with those outside it neglected, abandoned, ignored and forgotten.

Reviewing Naomi Klein's "The Shock Doctrine: The Rise of Disaster Capitalism" - Introduction ,
Part 1 - Two Doctor Shocks - Torture and Chicago School Fundamentalism
Part 2 - Chile The First Test - The Bloody Birth of the Counterrevolution
Part 3 - The Shock Doctrine: Surviving Democracy
Part 4 - The Shock Doctrine: Lost in Transition: Slamming the Door on History
Part 5 - The Rise of the Disaster Capitalism Complex - Shock Therapy in the USA
Part 6 - The Shock Doctrine: Iraq, Full Circle - Overshock - Erasing A Country - Part 6

By Stephen Lendman

http://sjlendman.blogspot.com

Stephen Lendman lives in Chicago and can be reached in Chicago at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Stephen Lendman Archive


Comments


Post Comment (Moderated)




Credit Crisis Survival Toolkit