Sunday, November 6, 2011

576. Saral Sarkar on the Population Question


Increasingly, people have been driven into over-crowded
spaces alien to our species and destructive of ecosystems

By Saral Sarkar, November 5, 2011

The United Nations has declared that the world population has just passed the 7 billion mark.  As the editor of Our Place in the World I hold the view that human population has long passed the threshold of sustainability of ecosystems.  While it is certainly necessary to expose (bourgeois) claims that poverty, disease and misery of the majority of people is over-population, an ecological socialist would recognize human population size, rate of growth and geographical distribution as a significant and sometimes deciding factor is the crisis of ecosystems. 

Our Place in the World has and will continue to publish information, analysis and arguments about the population question.  The following text is excerpts from Saral Sarkar, Eco-Socialism or Eco-Capitalism?: A Critical Analysis of Humanity’s Fundamental Choices (London and New York: Zed Books, 1999), 128-135, 196-197, and 209-210, with corresponding bibliographic entries, plus an additional comment by Saral Sarkar from July 4, 2011, concerning issues of human population.

Note: Much discussion in Sarkar’s book concerning the limits to growth, the inadequacy of technical solutions, etc., all of which has crucial bearing on the population question, has not been included in these excerpts, due to space limitations. Readers are encouraged to read the fuller presentation contained in the book as a whole.

--Kamran Nayeri
*     *     *

LAND, WATER, AND POPULATION

Land and water are essential resources. Water is renewable. But we cannot increase the amount of rain and snowfall, the ultimate source of all naturally fresh water. The area of land is given, and is inexhaustible, but its fertility can become exhausted. Of course, sea water can be converted into fresh water, but that is a very energy-intensive and hence costly process. Moreover, since energy prices will rise in the future, this process would also become even costlier. So far as irrigation is concerned, as already mentioned in connection with hydroelectricity, suitable sites for dams are scarce. As far as land is concerned, soil erosion is caused not only by human activity. It is also a natural process. Preventing erosion and other kinds of soil degradation requires a lot of energy. The same applies to land reclamation.

Given these facts, it is not easy to increase food production. In eco-alternative discourse, one often hears the following quotation from Mahatma Gandhi: ‘Earth provides enough to satisfy every man’s needs but not for every man’s greed’ (Gandhi 1997: 306). This rhetoric is too simple. It ignores the question of the number of people whose needs must be satisfied, which cannot be ignored. For while the global human population is continuously growing, the rate of growth in food production is falling. Lester Brown of the Worldwatch Institute shows that while between 1950 and 1984 world grain production grew – thanks to chemical fertilizers, pesticides, irrigation, and high-yielding varieties of plants – at the rate of 3 per cent per annum, between 1984 and 1993 the annual growth fell to less than 1 per cent, reducing per capita availability by 11 per cent (Brown 1994: 179). Brown also cites FAO experts who state that both fish catch in seas and meat production can hardly be increased any more, so that per capita availability of animal protein is tending to fall (ibid).

In view of these facts, it should be obvious that we should try to stop population growth rather than grow more food. For both population growth and growth of food production have an adverse environmental impact. Yet several political forces, with which I sympathize in other matters, oppose any active population control policy: leftists, feminists, third world solidarity groups, and third world NGOs. For reasons of space, I shall give only one example. Ursula Pattberg, a German third world sympathizer, wrote in 1992:

I am against any population policy because it is not needed at the moment. What is needed is rather a different policy on resources. It is a matter of…distribution of land, air, water, food and other things. If we can achieve a just distribution of these resources, then the debate on population policy is superfluous.

On the ecological crisis, she wrote: ‘…the causes of environmental destruction in Thailand…are quite clearly the interests of capital. It is a matter of profit maximization and destruction of nature for the sake of short-term profits.’ Then she reported: ‘In Thailand, there is a People’s Forum in which several NGOs have joined up. In their program, the word “birth planning” does not occur at all; overpopulation is for them no subject for discussion.’ She quoted from the program of People’s Forum:

The economically powerful countries will intensify their efforts to control the resources. They will use all ways and means including international organizations like the World Bank in order to defend their good starting position and to represent their interests. The countries of the Third World have been instrumentalised in this process – ignoring the fact that they have a right to their own development.

Pattberg sums up: ‘What these groups demand is the right to use their own resources’ (Pattberg 1992: 5-6).

This opposition is the result of several confusions, which must be removed.

Malthus – the difference between problem and policy

We must begin with Malthus. We must differentiate between problem and policy. Population policy can be debated, formulated, and accepted or rejected. But the population problem is an objective state of affairs, which cannot be conjured away. Any good ecologist knows that in nature, the population of any species must remain within a certain limit if it is not to upset the delicate ecological balance. Mixing up problem and policy in discussions only creates confusion. The indignation against Malthus is justified. According to him, the poor are themselves to be blamed for their poverty. But the question is whether, for this reason, Malthus’ presentation of the problem is also wrong.

Malthus’ harshest critics have always come from the left. Marx considered Malthus’ essay to be a ‘libel on the human race’. Engels wrote in 1865: ‘economic laws are not eternal laws of nature but historic laws which arise and disappear’. He thought ‘what is tenable in the so-called Malthusian theory’ is valid only for societies ‘based on class rule and class exploitation’. That was no proper refutation. But serious efforts were also made to refute one of Malthus’ two laws. Engels and Lenin rightly thought that his law regarding food production, namely that it increases only in arithmetical progression, is actually based on the law of diminishing returns. But they declared that the limitless advance of science and technology nullifies the law of diminishing returns, which is otherwise valid. (This summary of the views of Marx, Engels and Lenin is based on quotations contained in Meek 1971.)

But science and technology have in the meantime disappointed expectations. Brown shows that between 1950 and 1984 the application of each additional ton of fertilizer boosted grain output by 9 tons. But this ratio started to worsen in 1984. By 1989, it was down to 1.8 tons more grain to each additional ton of fertilizer (Brown 1994: 184-5). The plants are simply not responding to more and more fertilizer. The law of diminishing returns is, therefore, not nullified.

Malthus’ other law – that population grows, if not controlled, in geometrical progression – is more difficult to refute. The only thing that his opponents can do in this respect is to point to the fact that in industrial societies population has stopped growing or is growing very slowly. But that is also no real refutation, as most couples in these countries are using various means to control births. An average healthy couple in an industrial society could, if they used no contraception, produce ten or even more children in 30 years. Clearly, Malthus’ two laws are as good as natural laws. At the least, they are still valid.

Scientific and technological research has not come to an end. So one may still hope that, say, biotechnology might help to solve the problem, or that there might be a breakthrough in the process of photosynthesis, enabling plants to convert solar energy more efficiently into edible energy. Gail Omvedt and Govind Kelkar, two feminists from India, report that S.A. Dabholkar, a farmer-experimenter from western India, has developed methods through which, with the aid of ‘low external inputs’, a family of five could enjoy a middle-class lifestyle by cultivating just one-quarter of an acre of land (1 acre = 0.4046 ha), so that ‘there is at the technological level no real population problem.’ They write: ‘The fact is that the ability of sunlight and soil (which itself can be regenerated and even “made” from bio-waste material) to achieve high productivities has hardly even begun to be tapped. …the “carrying capacity” of the various regions of the earth can be almost indefinitely extended’ (Omvedt & Kelkar 1995: 30; emphasis added). But Dabholkar’s claim and Omvedt’s and Kelkar’s faith in technology sound like faith in a miracle. The authors also report that in India, Dabholkar’s claim is ‘generally taken as exaggerated and even fantastic’ (ibid.). And Brown reports that leading scientists hold out little hope for far-reaching breakthroughs in these areas in the foreseeable future (Brown 1994: 186-7).

How acute is the crisis? How much latitude do we still have?

Let us examine some other well-known arguments against the need for an active population control policy. ‘Development is the best contraceptive’, has been the slogan of many leftists since the world population conference in Bucharest in 1974. This argument is also supported by the theory of demographic transition, which states – on the basis of demographic history of the industrialized European countries – that in a society with a growing population, the birth rate falls with growing prosperity, quasi-automatically, and finally equals the death rate, thus concluding the transition to a stable population. But this theory was formulated before humanity became aware of the limits to growth. Most countries of the Third World would never be able to reach the prosperity level of, say, West Germany in 1972, when that country completed the final phase of demographic transition. Moreover, prosperity alone may not suffice. In Saudi Arabia – for the last two decades one of the richest countries in the world – the birth rate was in 1989 more than 40 per thousand per year (cf. Meadows et al. 1992: 32). [In 2005, the rate of population growth was 2.6%. (Der Fischer Weltalmanach 2008. Frankfurt/M, 2008)].

As a kind of supporting argument to the above, leftists argue that the problem of hunger in the present-day world is no problem at all, that there is enough food, which needs only to be distributed properly. That may be theoretically perfectly true. However, some questions remain:

·               We are concerned not only with the situation today. We must also ask: how long can world food production keep pace with a growing world population? The facts and figures quoted from Brown give no grounds for optimism in this regard. Can we, like believers in a religion, simplistically hope that science and technology will somehow solve all future problems?
·               The negative ecological effects of intensive agriculture are well known. Is it permissible to intensify it still further in order to produce more food for a growing population?
·               Can we expect the peoples of the food-surplus countries to work hard and invest their money in order finally to give away their surplus to the poor of the Third World? The world has not become one communist world yet!
·               The farmers of the food-surplus countries would certainly like to sell their surplus. But from where will the poor countries of the Third World get the foreign exchange to pay for the continuously rising food imports?

An alternative line of argument used against any active population control policy is based on calculations pertaining to the maximum carrying capacity of the Earth. In 1982, an FAO and UNFPA study asserted that there is enough land in the Third World (without China) to feed 33 billion people – but only if every square meter of cultivable land and large quantities of fertilizers and other chemicals are used to produce just a sufficient quantity of vegetarian food (cf. Sadik 1990: 7). There is also a model for the production of sufficient food for 15 billion people with moderate use of chemicals. This model, it is asserted, permits an ecologically careful handling of nature (cf. Simon 1991: 30). It is generally assumed that the world population will stabilize at some point between 2050 and 2100, at 11-14 billion. According to these models, therefore, there is not only enough time and latitude for the demographic transition but also no reason at all for panic.

I have some objections to this line of argument:

(a) If we in the Third World (without China) want to produce enough food for 15 billion people with just a moderate use of fertilizers and other chemicals (because we do not want to damage the environment), then agriculture must become extensive. We would need more cultivated land, and also more land for houses, roads, schools, offices, factories, and so on. But, writes Brown, ‘the reality is that there is simply not much fertile land waiting to be plowed’ (Brown 1994: 187).

There is a difference between land and fertile land. In the wake of the doubling of world grain prices in 1972, the farmers of the world increased the area under grains by 11 per cent. But this was followed by a massive retrenchment. A very large part of this increase took place on land highly liable to erosion and incapable of sustaining cultivation. As a result, in the territory of the former Soviet Union, the grain-harvested area declined from 123 million hectares in 1977 to 99 million ha in 1993. In the USA, between 1985 and 1992, 14 million ha were again converted to grass or trees (ibid: 182).

Brown does not give comparable figures from the Third World. But we know that, in Brazil, agriculture on land previously covered by rain forest is possible for only 3-4 years. Such land is fast eroded. There may still be a lot of such land in the world that can be brought under the plough. But, according to one estimate made in 1991, 6 million ha of cultivated land is being lost every year through erosion, salination and so on (Stiftung Entwicklung and Frieden 1991: 237-8). According to Friends of the Earth Netherlands, ‘current production methods will lead to a decrease in the amount of potentially arable land by about 16 million ha per year’ (Brakel & Zagema 1994: 16). As far as the Third World is concerned, Sandra Postel writes that since 1945, in Asia, Africa and South America, land degradation induced by humans amounted to 20, 22, and 14 per cent respectively of the total vegetated land (Postel 1994: 10).

Let us suppose that by means of great effort and a proper mix of correct policies, this trend can be stopped. Even then, feeding 15 billion people by means of extensive agriculture would mean that a large portion of the remaining forests would be lost. Of course, the demands of luxury industries could be rejected. But even satisfying the basic needs of 15 billion people – firewood, building timber and paper – would lead to the continuous destruction of ever more forest. Moreover, apart from the fact that we humans need there to be a certain proportion of land covered with forests, these forests are the habitats of many other species (which we also need). Does the human species have a right to conquer more living space?

(b) In that case, millions of people would have to migrate into areas that are still thinly populated. But these areas belong to other groups of humans – to the Amerindians, Maoris, Aborigines and other tribes. Should they be pushed out of their land again? Should we wage war against them?

(c) What should the people of the already densely populated countries – such as India, Bangladesh, Egypt – do, if the peoples and rulers of the thinly populated countries do not give them the permission to immigrate? Of what use then are the FAO and UNFPA models?

(d) Land is not the only problem. With only rain-fed agriculture, food production cannot be increased much. Irrigation would be necessary. But from the Worldwatch Institute to the World Bank, everybody knows that in many parts of the world fresh water has already become a scarce resource. There is fear that agriculture and industry as well as humans and nations would fight each other for water. There would be social conflict. The World Bank fears that in the next century, wars may break out between neighboring countries on the question of access to fresh water (Frankfurter Rundschau, 31 December 1996). It is unthinkable to transport fresh water from, say, Canada to India.

(e) Finally, opponents of any population control policy hold that the preconditions to producing enough food for 15 billion people on land in the Third World (excluding China), if it is at all possible, are a sound agricultural policy, egalitarian economic development, a different development strategy, and so on. These would constitute the minimum social conditions under which population growth could slow down gradually.

But it is uncertain whether fulfillment of these social conditions alone would be enough to halt population growth. Moreover, egalitarian economic development is not only a precondition for something but also a constituent goal of an ideal which can be attained only through a long struggle for social change. Also the other preconditions may not be soon fulfilled. If the population continues to grow in the meantime, then the ecological balance will be restored by nature itself – through hunger, war, civil war, social chaos, disease, epidemic – which nobody wants. So an effective and active population control policy is urgently necessary.

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From pp. 196-197:

Old wine in green bottle, or new wine?

I am not the first to use the term ‘eco-socialism’. Many leftists have used it to combine their socialism with their recently developed concern for ecological sustainability of the economy. But the integration is often not convincing. In general, it appears that they still refuse to take the first element of the term seriously. But socialists must not close their eyes to facts.

Let me take as the first example David Pepper’s book Eco-Socialism, written in 1992: ‘…the [red-green] project displays potential problems. It tends to accept…the simplistic…limits to growth/overpopulation theses…. However, the socialist contention that there are abundant resources to meet everyone’s needs…has not been convincingly disproved’ (Pepper 1993: 247). He dismisses the overpopulation problem as ‘old Malthusian (third world) “overpopulation” canards’ (ibid: 2). On the resource question, he writes: “The eco-socialist response to resource questions is…that there are no ahistorical limits of immediate significance to human growth as socialist development’ (ibid: 233; emphasis in original). On economic growth, Pepper writes: ‘…an ecological-communist utopia requires the development of productive forces … Eco-socialist growth must be a rational, planned development for everyone’s equal benefit, which would therefore be ecologically benign (ibid: 219).

It must be mentioned to Pepper’s credit that, while speaking of ‘everyone’s needs’, he also reminds us ‘that “needs” are to be divorced from our present market-oriented conception of them’ (ibid: 247). But this does not appear to make any practical difference, for elsewhere he says:

It may or may not be true that absolute amounts of copper oxide or petroleum are declining, but this is not relevant … What we … consume are telecommunication – and this can now be done by means other than copper wires – and automobile travel – where the ‘water’-powered, ‘pollutionless’ electric car could be a future alternative to the internal combustion engine car. (ibid: 100)

Telecommunication and cars appear here to be both ‘market-oriented’ and ‘eco-socialist’ needs.

Enough material is discussed in chapter 4 to see that Pepper is suffering from old illusions….

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From pp. 209-210:

In the Third World, during the transition period, social security would have a very strong relevance for a population control policy. It is well known that in most Third World countries, children, especially sons, are the main source of old-age security for poor people. In the micro-economic sense, it therefore appears rational to them to have several children, even if it results in a lower standard of living until the children can start working [often at the age of 10]. In order to have two sons in their old age, a couple, on average, have to have five children.

In the transition period, an eco-socialist government would guarantee old-age security to the poor in return for limiting the number of offsprings to two. Those who are not poor must pay contributions to an old-age security fund. To induce the poor to accept and practice birth control against their obvious private material interest, this strong material incentive would be necessary. An eco-socialist government could not coerce the poor, and it must in any case solve the problem of old-age security. This policy would also be a means of transferring funds from the rich and well-to-do to the poor – a traditional task of socialists.

The minimum age of marriage would be raised by law to, say, 21, in order to prevent 14-15-year old girls producing children. With various methods of contraception made available to teenagers, the satisfaction of youthful sexual desire need not be a problem. Feminists especially will find these three elements of policy – guaranteed old-age security, only two (or fewer) children, and marriage at a really adult age – very welcome as contributions to women’s emancipation.

Unlike imperialists and the propagandists and ideologues of capitalism, eco-socialists do not believe that population growth is the only cause of poverty and environmental degradation. We know that capitalism, imperialism, exploitation, oppression, and over-consumption of resources by the peoples of the North are major causes of both. But unlike many feminists and traditional leftists, eco-socialists do not think that population growth is a negligible factor. The chief objection of feminists against the hitherto implemented population control policies in capitalist and patriarchal societies cannot be raised against the policies of an eco-socialist government, which would never try to stop population growth at the cost of women’s health. It would rather use vasectomy – sterilization of men – as the principal means for the purpose.

Daly’s suggestion of transferable birth licences is conceivable, but only when the transition process is over and the steady state reached. However, in the transition period, the government would have to tell citizens that the long-term goal would be not just stabilization but reduction in the size of the population.

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Literature:

Brakel, Manus van and Bertram Zagema (1994) Sustainable Netherlands, Amsterdam. (This is a summary of Maria Buitenkamp et al. 1992)

Brown, Lester R. (1994) ‘Facing Food Insecurity’, in Brown et al. 1994.

Brown, Lester R. et al. (1994) State of the World 1994, New York and London.

Buitenkamp, Maria et al. (Friends of the Earth Netherlands) (1992) Sustainable Netherlands – Action Plan, Amsterdam.

Frankfurter Rundschau (daily newspaper).

Gandhi, Mahatma (1997) ‘The Quest for Simplicity – My Idea of Swaraj’, in Rahnema and Bawtree 1997.

Meadows, Donella H., Dennis L. Meadows and Jorgen Randers (1992) Beyond the Limits, London.

Meek, Ronald L. (ed.) (1971) Marx and Engels on the Population Bomb, Berkeley.

Omvedt, Gail and Govind Kelkar (1995) Gender and Technology – Emerging Visions from Asia, Bangkok (AIT).

Pattberg, Ursula (1992) ‘Fallbeispiel Thailand – verfehlte Ressourcenpolitik’, in Informationsbrief (Sonderdienst) Weltwirtschaft & Entwicklung, 29 June.

Pepper, David (1993) Eco-Socialism, London.

Postel, Sandra (1994) ‘Carrying Capacity – Earth’s Bottom Line’, in Brown et al. 1994.

Rahnema, Majid and Victoria Bawtree (1997) The Post-Development Reader, London, New Jersey, Dhaka, Halifax and Cape Town.

Sadik, Nafis (UNFPA) (1990) The State of World Population 1990, New York.

Simon, Gabriela (1991) ‘Wieviel ist zuviel?’, in blätter des Iz3W, November.

Stiftung Entwicklung und Frieden (1991) Global Trends 1991, Bonn.

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Additional comment by Saral Sarkar in an e-mail dated July 4, 2011:

It is also worthwhile to quote the two most important sentences of Malthus' essay:
‘Population, when unchecked, increases in a geometrical ratio. Subsistence increases only in an arithmetical ratio.’ The two words ‘when unchecked’ show that Malthus knew that population growth can be checked. It is our duty to add that population need not necessarily be checked through hunger, malnutrition, famine, lack of medical care, war, civil war, etc. It can also be checked in a humane way, i.e. without applying coercion.

575. Relenting on Car Sales, Cuba Turns Notorious Clunkers Into Gold


By Victoria Burnett, The New York Times, November 4, 2011

A classic Chevy on the Malecon
HAVANA — Until a few weeks ago, Erik González’s decrepit car did little more than devour his tiny income. He spent hundreds of dollars fixing the car, a 30-year-old Moskvich that his grandfather passed down to him in 2000. Even when it worked, Mr. González could rarely afford to buy gas.

Then, overnight, the Soviet-made rattletrap became his nest egg.
Mr. González put the car up for sale last month when the government published rules allowing Cubans to buy and sell used vehicles freely for the first time in half a century.
The axle may be wonky, the carburetor shot, the battery on its last legs and the headlights inoperable, but he believes his royal-blue Moskvich will fetch at least $5,500, a small killing for a waiter whose state salary — before tips and extras — is just $15 a month.
“This car has been bleeding me dry,” Mr. González said. “Now it’s an asset that I can sell, and do something else with the money.”
Like the new law permitting home sales going into effect this week, the changes headline President Raúl Castro’s efforts to remodel Cuba’s hobbled economy and spur the private sector. After decades in which ownership of such big-ticket items was frozen, the efforts promise to flush money into the market at a time when Cuban officials are trying to stimulate private enterprise and move hundreds of thousands of workers off the public payroll.
“The state has no business getting involved in a matter between two individuals,” Mr. Castro told the National Assembly last December, criticizing complex rules and “irrational prohibitions” that he said bred corruption.
“If I have a little car,” he added, “I have the right to sell it to whomever I want.”
But like several of Mr. Castro’s other changes, the new law created a pocket of economic liberty in a market that remains tightly controlled. Cubans can purchase and own more than one used vehicle, and they will no longer lose their car if they emigrate.
However, the right to buy a new car is still limited to a narrow group of Cubans who earn some foreign currency, including doctors, artists, musicians, members of airline flight crews and the handful of Cubans who work at the American naval base at Guantánamo Bay.
“There’s no logic to these rules,” said Leopoldo, a taxi driver who works the road between Havana and Güira de Melena, about 20 miles away, in a shiny 1985 Tatra. He asked that his full name not be used because he feared angering the authorities.
“But there’s no logic to anything in this country,” Leopoldo added. “They have kept so many restrictions in place for so many years, you wouldn’t expect them to lift them all in one go.”
Still, the new rules have created a buzz on an island where owning a car is a rare privilege and the number of vehicles per capita is among the lowest in the hemisphere.
For-sale signs have begun appearing in car windows. Many people who had bought cars illegally are scrambling to validate the trade. And Revolico, Cuba’s answer to Craigslist, is replete with people promising to pay tens of thousands for a used Hyundai or Kia.
But the tight grip on imports means cars will remain scarce and command eye-popping prices, whatever their condition, economists and car brokers say.
“A car that in another country you’d pay to destroy, you can sell here for $14,000,” said Paul Gómez Valladares, a mechanic who was fixing the bushings on a 1996 Lada Combi in a workshop shaded by mango trees.
Previously, Cubans could only legally trade cars that predate the 1959 revolution, hence the iconic American cars that still cruise the island’s roads. But those are only a small fraction of the nation’s used cars.
Islanders bought and sold cars on the sly, but it was a risky business that put off people like Mr. González and made buyers wary of paying large sums for a vehicle they would not legally own.
Emilio Morales, president of the Miami-based Havana Consulting Group, said the new rules — like earlier decisions to let Cubans own cellphones and computers or work in the private sector — simply legalized what many Cubans were already doing illicitly and would neither increase Cuba’s antiquated stock of vehicles nor alleviate the country’s crushing transportation problem. The move was intended to placate people, not stimulate the economy, Mr. Morales said.
“This is one of their political pressure valves,” he said.

Friday, November 4, 2011

574. Cuban Scholars Share Lessons of a Changing Economy


Rafael Hernandez, editor of Temas

By Anya Landau French, The Havana Note, November 3, 2011
Yesterday I had the opportunity to attend a talk cohosted by the Center for Democracy in the Americas, the American University School of Public Affairs and the American University Center for Latin American and Latino Studies, given by several visiting Cuban professors specializing in political science and economics.   I came away with several clear lessons that the vast majority of Americans (and apparently whomever is giving President Obama advice on Cuba these days) do not yet understand about a radically changing Cuba.
Rafael Hernandez, editor of the noted Cuban journal Temas and a leading political scientist in Cuba, showed just how political the economic reforms in Cuba really ar.  He focused on four key areas in which the process to update the economic model is crucially linked to adapting some key elements of Cuba’s longstanding political model: de-centralization, de-statization, de-bureaucratization and, building a new rule of law that supports and legitimizes the private sector in a way not seen in Cuba in decades. 
Jorge Mario Sanchez, an economist and prolific researcher at the University of Havana's Center for the Study of the Cuban Economy, addressed why these changes are needed now – I loved his Pac-Man metaphor, a Cuba fat from consumption but not producing enough to sustain itself – and reminded us why they have been so slow.  These changes, unlike those emergency measures taken in the 1990’s, are here to stay, so there’s an abundance of caution.  This of course means revising new rules quite a lot and essentially “learning by doing.”  But, Sanchez notes, the goal is 35% of the labor force shifted to the non-state sector in the next few years – not an insignificant shift.
Carlos Alzugaray, a former senior diplomat now at the University of Havana’s Center for Cuban-U.S. Studies, assured us the reform process is something we might not have recognized (or believed) until right about now: relentless.  Himself impatient with the pace of change at times, Alzugaray joked that he didn’t say the process was fast, but that hardly a week goes by when there isn’t another change announced.
And so it is.  On the heels of news that Cubans would now be allowed to buy and sell used cars of any kind (they used to only be allowed to do so with the pre-1950’s era almendrones sputtering around the island), this week Cuba announced that natural born Cubans and permanent residents will now have the right to buy and sell their homes, and transfer ownership to others on the island.  Not surprisingly, the rules come with some caveats, like only one primary residence and one vacation home allowed.
These are still incredibly meaningful changes, and the fact that these sorts of changes have finally begun rolling out might explain why Freedom House – no fan of the Cuban government due to its human rights record – found optimism in a recent survey it conducted on the island.  Whereas a year ago, when I last traveled to the island, I detected mounting impatience (a sort of, “this is never going to change” attitude), Cubans can now see real changes are finally on the way and here to stay.  Particularly important is the apparent willingness of the Cuban government to keep revising rules – to allow farmers to work even larger parcels of land than first granted several years ago, to let paladars serve fifty, not just twenty, customers – when they don’t work as well as they should, that should really offer hope.
There’s still so much to do: bureaucrats in the way, as Raul Castro himself has complained, too many imports and not enough exports (though major government belt-tightening has gone a long way to alleviate that problem), highly educated workers with not enough jobs to complement their skills (and thus a brain drain exacerbated by incredibly generous U.S. immigration policies towards Cubans), and more.  And just as Hernandez pointed out the political dynamics in Cuba that must adapt for the economic reforms to succeed, Cuban Foreign Minister Bruno Rodriguez offered another political message during the United Nations debate last week on the U.S. embargo of Cuba.

573. Dr. Carlos Alzugaray on New Housing Law


VIDEO: Center for Democracy in Americas interviews Dr. Carlos Alzugaray about new housing law


Cuba’s government announced that a new law allowing the purchase and sale of property — including legalizing the right of Cubans to buy and sell their own homes — will go into effect on November 10. Dr. Carlos Alzugaray Treto, a long-time diplomat and professor at the University of Havana, explains what this new law means for Cubans.


572. Cuba Lifts Ban on Housing Trade


Black market for house in Paseo del Prado 

By Marc Frank, Financial Times, November 3, 2011

Cuba has formally lifted a five-decade ban on residents buying and selling property as the communist government of President Raúl Castro makes its most significant move yet to liberalise the island’s Soviet-era economy.

For the first time since the 1959 revolution, Cubans will be able to sell property to other Cuban residents without government approval. The changes, already approved by the National Assembly in August but now formalised, come into effect on November 10.

The easing of restrictions on property ownership is likely to reshape Cuban cities, spur real estate development and speed renovation of Cuba’s picturesque but dilapidated housing stock. It is also expected to reconfigure Cuban conceptions of class as some homeowners cash in their properties and areas of Havana are gentrified.

“I hope the new law gets rid of so much paperwork, bureaucracy and other problems that simply lead to corruption. If you can now move without months and years of effort and paying people off, we will be content,” said Maritza, a 35-year-old food service worker.

Previously, any Cuban who wanted to swap their home for another had to penetrate thick layers of bureaucracy. Houses were also confiscated by the state if a Cuban moved abroad. Now by contrast, the new rules state that the purchase, sale, donation and trading of houses will be recognised even in cases of “divorce, death or permanent departure from the country”.

The measure is the latest and most dramatic signal that the authorities are serious about implementing reforms adopted this year. Last month, the government ended another ban, also dating from 1959, on the sale of cars. State companies have been given more autonomy, state payrolls and subsidies have been trimmed, and retail services liberalised.

Analysts say that home sales could free up capital needed to jump-start small businesses. Cubans living abroad, especially in the United States, who remit some $1bn a year to the island, have proved instrumental in financing and supplying thousands of small businesses since the sector was liberalised last year. They are now expected to invest in housing through their relatives, pumping millions of dollars into the local economy and helping to renovate the crumbling housing stock.

“This change is another example of the failure of ‘big bang’ models to predict the evolution of the Cuban economy,” said Jose Gabilondo, associate professor of law at Florida International University, said. “Changes in the rules of the game are already under way.”

However, the new housing law dashes hopes that the local real estate market might open up to large domestic or foreign investment as it continues to prohibit foreigners from owning property unless they are permanent residents. A special exception is expected in the next few months for golf course and other tourist developments currently under negotiation with various foreign companies.

Every property transaction will require a notary, with payment through a state bank, and both the seller and buyer paying a 4 per cent tax.

Thursday, November 3, 2011

571. Noam Chomsky: Occupy the Future


Article imageBy Noam Chomsky, Nation of Change, November 3, 2011

Delivering a Howard Zinn lecture is a bittersweet experience for me. I regret that he’s not here to take part in and invigorate a movement that would have been the dream of his life. Indeed, he laid a lot of the groundwork for it.

If the bonds and associations being established in these remarkable events can be sustained through a long, hard period ahead – victories don’t come quickly – the Occupy protests could mark a significant moment in American history.

I’ve never seen anything quite like the Occupy movement in scale and character, here and worldwide. The Occupy outposts are trying to create cooperative communities that just might be the basis for the kinds of lasting organizations necessary to overcome the barriers ahead and the backlash that’s already coming.

That the Occupy movement is unprecedented seems appropriate because this is an unprecedented era, not just at this moment but since the 1970s.

The 1970s marked a turning point for the United States. Since the country began, it had been a developing society, not always in very pretty ways, but with general progress toward industrialization and wealth.

Even in dark times, the expectation was that the progress would continue. I’m just old enough to remember the Great Depression. By the mid-1930s, even though the situation was objectively much harsher than today, the spirit was quite different.

A militant labor movement was organizing – the CIO (Congress of Industrial Organizations) and others – and workers were staging sit-down strikes, just one step from taking over the factories and running them themselves.
Under popular pressure, New Deal legislation was passed. The prevailing sense was that we would get out of the hard times.

Now there’s a sense of hopelessness, sometimes despair. This is quite new in our history. During the 1930s, working people could anticipate that the jobs would come back. Today, if you’re a worker in manufacturing, with unemployment practically at Depression levels, you know that those jobs may be gone forever if current policies persist.

That change in the American outlook has evolved since the 1970s. In a reversal, several centuries of industrialization turned to de-industrialization. Of course manufacturing continued, but overseas – very profitable, though harmful to the workforce.

The economy shifted to financialization. Financial institutions expanded enormously. A vicious cycle between finance and politics accelerated. Increasingly, wealth concentrated in the financial sector. Politicians, faced with the rising cost of campaigns, were driven ever deeper into the pockets of wealthy backers.

And the politicians rewarded them with policies favorable to Wall Street: deregulation, tax changes, relaxation of rules of corporate governance, which intensified the vicious cycle. Collapse was inevitable. In 2008, the government once again came to the rescue of Wall Street firms presumably too big to fail, with leaders too big to jail.

Today, for the one-tenth of 1 percent of the population who benefited most from these decades of greed and deceit, everything is fine.
In 2005, Citigroup – which, by the way, has repeatedly been saved by government bailouts – saw the wealthy as a growth opportunity.

The bank released a brochure for investors that urged them to put their money into something called the Plutonomy Index, which identified stocks in companies that cater to the luxury market.

“The world is dividing into two blocs – the plutonomy and the rest,” Citigroup summarized. “The U.S., U.K. and Canada are the key plutonomies – economies powered by the wealthy.”

As for the non-rich, they’re sometimes called the precariat – people who live a precarious existence at the periphery of society. The “periphery,” however, has become a substantial proportion of the population in the U.S. and elsewhere.
So we have the plutonomy and the precariat: the 1 percent and the 99 percent, as Occupy sees it – not literal numbers, but the right picture.

The historic reversal in people’s confidence about the future is a reflection of tendencies that could become irreversible. The Occupy protests are the first major popular reaction that could change the dynamic.

I’ve kept to domestic issues. But two dangerous developments in the international arena overshadow everything else.

For the first time in human history, there are real threats to the survival of the human species. Since 1945 we have had nuclear weapons, and it seems a miracle we have survived them. But policies of the Obama administration and its allies are encouraging escalation.

The other threat, of course, is environmental catastrophe. Practically every country in the world is taking at least halting steps to do something about it. The United States is taking steps backward. A propaganda system, openly acknowledged by the business community, declares that climate change is all a liberal hoax: Why pay attention to these scientists?

If this intransigence continues in the richest, most powerful country in the world, the catastrophe won’t be averted.

Something must be done in a disciplined, sustained way, and soon. It won’t be easy to proceed. There will be hardships and failures – it’s inevitable. But unless the process that’s taking place here and elsewhere in the country and around the world continues to grow and becomes a major force in society and politics, the chances for a decent future are bleak.

You can’t achieve significant initiatives without a large, active, popular base. It’s necessary to get out into the country and help people understand what the Occupy movement is about – what they themselves can do, and what the consequences are of not doing anything.

Organizing such a base involves education and activism. Education doesn’t mean telling people what to believe – it means learning from them and with them.
Karl Marx said, “The task is not just to understand the world but to change it.” A variant to keep in mind is that if you want to change the world you’d better try to understand it. That doesn’t mean listening to a talk or reading a book, though that’s helpful sometimes. You learn from participating. You learn from others. You learn from the people you’re trying to organize. We all have to gain the understanding and the experience to formulate and implement ideas.

The most exciting aspect of the Occupy movement is the construction of the linkages that are taking place all over. If they can be sustained and expanded, Occupy can lead to dedicated efforts to set society on a more humane course.

© 2011 Noam ChomskyDistributed by The New York Times Syndicate.

Wednesday, November 2, 2011

570. Cuba Insists on a Fair U.S. Immigration Policy Toward the Island


U.S. Interest Section in Havana

By Latin American Herald Tribune, November 2, 2011

HAVANA – The United States must end a “demagogic” policy that encourages Cubans to emigrate illegally in hopes of reaching U.S. soil, the newspaper of Cuba’s ruling Communist Party said Tuesday.

Washington must end the 1966 Cuban Adjustment Act, Granma said in an editorial.

That law and the accompanying policy known as “wet foot, dry foot” says that Cubans who manage to set foot on United States soil can remain and apply for permanent residence.

The newspaper accuses the U.S. of having promoted the clandestine emigration that risks Cuban lives and promotes “the despicable business of human trafficking.”

“If the United States is ready to grant legal residency to any Cuban who enters its territory...it should give a visa to all who wish to emigrate in a normal, legal way without asking for documentation or imposing any other requirement, as it does for those who flout its laws and ours,” Granma said.

He said that application of the migration accords signed by Washington and Havana in 1994 and 1995 “have been undermined by the intention, never abandoned, of using emigration as part of its arsenal against the Cuban Revolution.”

Those accords state that Cuban immigrants intercepted at sea must be returned to the island.

It also included a commitment by Washington to admit 20,000 Cubans a year as legal immigrants.

The United States and Cuba have not had diplomatic relations for almost half a century, from the time Washington imposed an economic embargo on the island in February 1962. Fifteen years later, however, the two governments established interests sections in their respective capitals.

Granma also said that Cuba is not among the region’s main sources of migrants to the United States, referring to the millions of undocumented Latin American emigrants whose “tragedy is ignored.”

President Raul Castro told Cuba’s parliament in August that his government will work toward “easing” emigration policy, suggesting a possible end to the requirement that Cubans wishing to travel aboard obtain an exit permit.