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The Neoliberal Ways Of The World Bank May Be Numbered If Jeffrey Sachs Becomes Its President

by on Friday, March 9, 2012 at 11:19 am EDT in Politics, World

When World Bank President Robert Zoellick announced that he would step down at the end of his five-year term in June, calls were made for his successor to be selected based on merit this time, rather than on nationality, as has been the custom for the past 68 years.

Whereas the International Monetary Fund’s Managing Director has always been a European, the World Bank’s President has always been an American. Though the U.S. is indeed the institution’s biggest funder and largest shareholder, its finances are paid by taxpayers around the world.

The moment Zoellick made his announcement last January, the Obama Administration indicated it had every intention of inserting an American as the new President. At a briefing on Feb. 21 , State Dept. Spokesperson Victoria Nuland stated, “Our expectation is that we will nominate a strong American candidate and we will put our full backing behind that person.” 

After Nuland ruled out Secretary of State Hillary Clinton as a possible successor, several other top contenders’ names have been floated around.

These include Former Obama Economic Adviser and former U.S. Treasury Secretary Lawrence Summers, U.S. Ambassador to the U.N. Susan Rice (who has also been rumored to be Clinton’s likely replacement as Secretary of State), PepsiCo Inc CEO Indra Nooyi, and Sen. John Kerry (note: his spokesperson said he was not interested, and had never even been contacted about it).

If Rice does in fact have her eyes on State, this would leave Summers and Nooyi as two ‘short-listed’ contenders. The Chicago Tribune listed the pros and cons of Summers and Nooyi:

Lawrence Summers:

Sources within the World Bank and the Obama administration said that while Summers has excellent credentials, he also has political baggage.

While president of Harvard University, he created a firestorm by suggesting women may have a lower aptitude for science and engineering. He is also remembered for a memo he wrote in 1991 when he was the World Bank’s top economist that laid out the economic logic of dumping toxic waste in developing countries.

By selecting Summers, Obama “would have to use political capital” with his liberal base and women’s groups, the source with knowledge of the administration’s thinking said.

Indra Nooyi:

Nooyi, the Indian-born chief executive of PepsiCo, has been under pressure from investors for a stagnating stock price. She recently laid out a plan to turn around the company’s North American soft drink business and took responsibility for management missteps. PepsiCo spokesman Peter Land declined to comment on whether she would be interested in the World Bank job.

If Obama chose a woman, he would be breaking the mold for a job that has always been held by a white male, a move that could garner support from developing nations.

But as the White House vets its candidates, it is facing international pressure to democratize the selection process. The fastest emerging economies, including China, Russia, India, Brazil, and S. Africa have coalesced to end this 70 year old passport-as-determining-factor tradition.

They were so appalled at how Europe arrogantly moved to replace the IMF head last year with one of its own, despite pleas to open the process, that they have responded more forcefully this time with Zoellick’s announcement. They have every intention of nominating some stellar candidates of their own to fill the impending vacancy.

Well, one American Economist, Jeffrey Sachs, who is director of the Earth Institute at Columbia University and serves as Adviser to U.N. Secretary General Ban Ki-moon, has helped to make this a true contest. He has thrown his hat into the ring, albeit his nomination didn’t come from the U.S. He has been nominated by Kenya, Malaysia, Jordan, Namibia, Bhutan and East Timor.

And in stark contrast to outgoing President (Bush-appointee) Zoellick, who had been a former Managing Dir. of Goldman Sachs, Jeffrey Sachs considers ‘Neoliberal’ a dirty word (as demonstrated by his Tweeted response to one critic’s accusation):

 

Here is how he distinguishes himself from traditional World Bank Presidents:

Unlike previous World Bank presidents, I don’t come from Wall Street or U.S. politics. I am a practitioner of economic development, a scholar and a writer. My track record is to side with the poor and hungry, not with a corporate balance sheet or a government. Yet the solutions work for all — the poor, companies, governments and the rest of us — by creating a more prosperous, healthy and secure world.

Sachs has the full support of Congressman John Conyers (D-MI), who is circulating a letter on his behalf to President Obama. Current signatories include John Conyers, Hansen Clarke, Jesse Jackson, Jr., Barbara Lee, Zoe Lofgren, Jim McGovern, Lynn Woolsey, Raul Grijalva, Eleanor Holmes Norton, Keith Ellison, Robert Brady, Rubén Hinojosa, Peter DeFazio, Steve Cohen, Maxine Waters, and Bob Filner. 

Mark Weisbrot, in his piece yesterday in The Guardian (which I highly recommend reading), highlighted some of the World Bank’s disgraceful policies over the last 15 years. He then explains why Sachs is the right guy to help turn the institution around:

The bank could … play a positive role by increased financing of urgent development needs such as health, education, and sustainable agriculture. In these areas, Jeffrey Sachs has a proven track record over the past decade. He has played an important role in supporting the Global Fund to Fight Aids, Tuberculosis and Malaria, which has saved millions of lives in poor countries. His Millennium Villages project has also provided a significant positive example of how development aid can be used to boost agricultural productivity and health outcomes. This is an important refutation of the widespread cynicism that helps limit the financing of real, positive development aid.

Sachs has also been a strong advocate for debt cancellation in poor countries. His 2008 book Common Wealth provides one of the best overviews of the interrelated problems of climate change, development, poverty, population and health – as well as a set of concrete proposals for addressing them. This is clearly someone who has the knowledge, ideas, and experience to lead the bank in a different direction. … As Sachs noted last week:

“US officials have traditionally viewed the World Bank as an extension of United States foreign policy and commercial interests. … Many projects have catered to US corporate interests rather than to sustainable development.”

But Weisbrot believes ‘Sachs is facing an uphill battle,’ being an election year. Many of Obama’s biggest contributors happen to be the Wall Street banks and corporations that have millions at stake in the World Bank. They will obviously want another one of their Neoliberal bank cronies to man the top spot. 

World Bank officials will be accepting nominations for Zoellick’s successor until March 23rd.

WATCH CNN’s recent interview with Jeffrey Sachs:

TAKE ACTION: Ask your Congressperson to Sign John Conyers Letter Pressing Obama to Name Sachs to World Bank (The deadline to sign Conyers letter to Obama is COB Monday, March 12.)

UPDATE:

Thought it only fair to post a quote from Naomi Klein, who in her book, The Shock Doctrine, critiqued Neoliberal policies that Sachs had overseen in places like Poland and Russia. She was asked in 2007, if she believed Sachs was merely re-branding his image, or had truly changed: 

A lot of people are under the impression that Jeffrey Sachs has renounced his past as a shock therapist and is doing penance now. But if you read The End of Poverty more closely he continues to defend these policies, but simply says there should be a greater cushion for the people at the bottom.

The real legacy of neoliberalism is the story of the income gap. It destroyed the tools that narrowed the gap between rich and poor. The very people who opened up this violent divide might now be saying that we have to do something for the people at the very bottom, but they still have nothing to say for the people in the middle who’ve lost everything.

This is really just a charity model. Jeffrey Sachs says he defines poverty as those whose lives are at risk, the people living on a dollar a day, the same people discussed in the Millennium Development Goals. Of course that needs to be addressed, but let us be clear that we’re talking here about noblesse oblige, that’s all.

Just thought I should put it out there, since I have a world of respect for Naomi Klein and her opinions on the matter.

Can A Democracy Function When The President Can Evade His Critics?

by on Thursday, March 8, 2012 at 12:52 pm EDT in Election 2012, Politics
Official White House Photo by Pete Souza

A democracy is built upon the premise that our elected officials will routinely be confronted on their policies in the public square. And from this public engagement, this battleground of ideas, Americans will be better equipped to determine the best policies, thereby ensuring the democratic process actually strengthens the health of the nation, rather than weakens it.  

But for some reason, the President of the United States is free to elude this ongoing battleground.

Only at election time, every four years, is he expected to participate in a handful of debates, and these are somewhat controlled environments. Debate questions tend to be the predictable ‘establishment’ ones, unrepresentative of the ones many Americans would like answered. All third party candidates, and the important issues they would bring to this national contest, are deliberately and systematically banned by the two major parties.

Once elected, Presidents begin to mirror ‘regal’ figureheads, suddenly ‘above’ subjecting themselves to pesky, potentially embarrassing, press conferences. They sidestep any engagements where they might be confronted on controversial policies.

President Bush went as far as to build a literal fortress around himself. It was oft-reported how his administration aggressively “screen[ed] audience members, remov[ed] protesters, and script[ed] questions prior to Bush appearing at public events.”

There are literally no laws in place that require the President of the United States to confront his critics.

And their efforts to evade this form of ‘check’ on Presidential power only seems to be getting worse. Whereas George H.W. Bush and Bill Clinton held 56 and 31 news conferences, respectively, during their first three years in office, George W. Bush held only 11, and Barack Obama has held only 17.

When they agree to appear in televised interviews, rarely is it ever a hard-nosed Q&A session. Instead they opt to appear on The View, Jay Leno, or some other non-serious venue, where they are more likely to field questions about their daughters’ grades than meaningful ones, like the signing of the controversial National Defense Authorization Act (NDAA).

When they do find it opportune to appear for questioning on actual news programs, they carefully select venues where they believe they can easily control their message. Accordingly, political pundits — all desperate for that coveted Presidential interview — treat them deferentially, by asking softball questions. When the odd tough question does get asked, more often than not, the pundits gladly accept whatever scripted non-answer the President gives them. 

Access is the bread and butter of corporate-owned news networks. The White House’s limited and conditional access ensures the corporate media establishment remains compliant. Embarrassing the President on national television, by pinning him down on an obvious lie, would be construed as “an unwise business decision.”

It could be said that the only REAL interview that Obama has endured these last three years, occurred in October of 2010, when he chose to appear on left-leaning comedy program, The Daily Show, believing he would surely be in ‘friendly territory.’ He quickly discovered that the Left, as represented by Jon Stewart, were probably the most disenchanted of all his constituents. Something tells me Jon Stewart has now lost future ‘access’ to the President.

But this seems to be less of a problem in many European democracies.

When President George W. Bush, who rarely gave interviews, sat down in 2004 for a televised interview with Carol Coleman of Radio Television Ireland, he learned very quickly that he was indeed far from Texas. This interview was the first time in 20 years that an American President had granted an interview with the RTÉ. I suspect it will be the last.

Coleman asked questions regarding Bush’s controversial Iraq policies, and when he attempted to filibuster with meaningless slogans, she interrupted him to ensure he actually addressed the questions. Unlike the American media establishment, she did not graciously accept his meaningless talking points as legitimate answers.

The interview became extremely controversial in America. The White House complained to the Irish Embassy, Laura Bush canceled her later-scheduled interview with the RTÉ, and none of the U.S. main stream media networks would air it. When it was discussed on CNN’s Larry King show and CBS, it was described as ‘contentious’.

The U.S. establishment seemed stunned that a journalist would have the audacity to try and pin the U.S. President down on his policies, when she had to know that by not accepting his dumbed-down talking points, she would embarrass him. And surely that is not behavior befitting a King, err a U.S. President.

Coleman disagreed with those sentiments: 

“In Ireland, we give all our politicians a tough time,” said Ms. Coleman, who agreed with the suggestion that European politicians are more battle-hardened by the parliamentary requirement that they face regular and direct questioning from the opposition. “I felt I did my job,” she said.

This mandatory parliamentary questioning that she refers to, is also required in Great Britain.

Every Wednesday, the British Prime Minister gets directly challenged for about half-an-hour by his opposition in Parliament at the PMQs (Prime Minister Questions). In order to withstand this confrontational barrage, the Prime Minister must have a firm working knowledge of all issues, and be able to articulate why his proposals and policies are the most logical and sensible courses of action.

Conversely, when a U.S. President makes a showing before Congress — usually only once a year, at his State of the Union Address — members of both parties rise and applaud as he enters, and remain standing and clapping until he takes the podium. From here, he has a one-way conversation with the elected body. He talks, they listen, he leaves, and they bid him farewell with another standing ovation. Just like a King addressing the members of his royal court.

It could be argued that Britain’s weekly televised PMQs helps to demystify that nation’s highest office. The Prime Minister gets seen as a mere mortal — required to be responsive to the peoples’ representatives. If caught unprepared, on any given Wednesday, he could seriously embarrass himself — all to be captured on television. The U.S. President, having no equivalent requirement, gets seen as more of an insulated, powerful, reverential figurehead — like a monarch, completely shielded from ever having to defend his policies against his critics. 

As Carol Coleman of the RTÉ alluded above, when journalists witness their top leader having to defend his policies each week to the Congressional opposition, they begin to view that leader as someone open to tough scrutiny, rather than someone to be treated deferentially. 

And if the President could no longer shield himself from ever having to publicly defend his policies, he might reconsider passing indefensible policies. 

Imagine how different the health care bill debate would have been if the President had been forced to engage with Congress each week, and to take a visibly forceful stand on critical pieces of the legislation, rather than hide in the background, cutting back-room deals, and working the back-channels.

Another unforeseen repercussion from allowing U.S. Presidents to evade critical questioning, is it actually encourages incompetent, incurious, and inarticulate people to seek the highest office in the land. Case in point: George W. Bush. It would be highly doubtful that a person incapable of defending his policies to a non-deferential journalist, would consider running for an office that required him to defend the intellectual soundness of his policies every single week against his fiercest critics, on national television.

Even Tony Blair, who had a reputation for performing exceedingly well at PMQs, later admitted in interviews, that they had been a constant source of stress for him. At his final PMQs he told the MPs:

“This is still the arena that sets the heart beating a little faster. And, if it is on occasions the place of low skulduggery, it is more often the place for the pursuit of noble causes.”

It is ironic that the United States, a nation founded upon the rejection of monarchy, would allow its top leader to evade his critics, much like a monarch, while Great Britain — with a Queen still residing in Buckingham Palace — would demand the very opposite from its Prime Minister. 

Noam Chomsky Endorses Green Party’s Jill Stein For President Of The United States

by on Thursday, March 8, 2012 at 12:18 am EDT in Election 2012, Politics

MIT Professor Noam Chomsky:

“Dear friends, I hope you’ll take the opportunity of the March 6th Green-Rainbow primary to cast a vote for resurgent democracy. A democracy that thrives outside of the Democratic and Republican Parties that are sponsored by and subservient to corporate America. And I hope you will consider joining me in supporting Green Party presidential candidate Jill Stein – both with your vote and with a contribution to her campaign for people, peace and the planet.As you know, popular anger at the political and economic institutions, and the subordination of the former to the latter, has reached historic heights. And for sound reasons. There could hardly be a better time to open up the political debate to the just anger and frustrations of citizens who are watching the country move towards what might be irreversible decline while a tiny sector of concentrated wealth and power implements policies of benefit to them and opposed by the general population, whom they are casting adrift.

Jill Stein’s campaign is unifying the national Green Party, and ensuring that an urgently needed voice for democracy and justice will have a place on the ballot in the November election. Please join me in supporting Jill on March 6, and securing a voice foe a peaceful, just, green future in the presidential race.”

VIDEO Debate: Rashid Khalidi VS Jonathan Tobin: Attacking Iran, AIPAC, Israel-Palestine & Obama

by on Monday, March 5, 2012 at 3:44 pm EDT in Iran, Middle East, Politics, World

Yesterday, President Barack Obama addressed the annual policy conference of the powerful pro-Israel lobby group, AIPAC. In his speech, he attempted to walk a fine line between reassuring the group of his ‘sacrosanct’ commitment to both Israel’s security and ethnic identity as a ‘Jewish state,’ and yet tamp down on its insistence that the United States bomb […]

VIDEO: John Lennon – How?

by on Saturday, March 3, 2012 at 1:19 am EDT in Arts & Entertainment, Music

A great song by one of the world’s best songwriters:  How? [youtube]http://www.youtube.com/watch?v=uQU84QlukP4[/youtube]

VIDEO: Green Party Presidential Candidate Jill Stein Explains Her Green New Deal To Thom Hartmann

by on Friday, February 24, 2012 at 7:01 pm EDT in Election 2012, Politics

The following is last night’s Thom Hartmann interview with 2012 Green Party candidate for President, Dr. Jill Stein. In it, Stein breaks down her FDR-style Green New Deal, her reasons for transitioning from medical doctor to politics, and why America is now ripe for a third party, like the Green Party, whose policy positions, unlike the two […]

VIDEO: Lily Allen And Keane Perform ‘Everybody’s Changing’ Live At War Child

by on Thursday, February 23, 2012 at 12:20 pm EDT in Arts & Entertainment, Music

In 2007, Lily Allen and Keane performed a few songs together at a benefit concert for War Child. I had never heard “Everybody’s Changing” until last night, when I stumbled across this video, and instantly fell in love with it. (h/t to Kelly Canfield at firedoglake for the discovery) Enjoy: [youtube]http://www.youtube.com/watch?v=k3uOfpW5kds[/youtube]

VIDEO: The Kinks – Waterloo Sunset

by on Wednesday, February 22, 2012 at 11:47 pm EDT in Arts & Entertainment, Music

One of my all-time favorite Kinks songs. And what amazing video quality for such early footage!  [youtube]http://www.youtube.com/watch?v=6M8hrmGQOHk[/youtube]

VIDEO: Here Is What Unregulated, Non-Unionized Capitalism Looks Like: Apple’s iFactory In China

by on Wednesday, February 22, 2012 at 3:24 pm EDT in Economy, Labor, Politics

Conservatives have long derided organized labor and business regulations as some sort of insidious ‘socialist’ cancer that stymies innovation, fleeces hardworking business owners, crushes prosperity and investment capital, and dampens economies with high inflation and high unemployment. They contend that when corporations are left unburdened by oversight and regulations, to pursue their own profit-maximizing interests, […]

If U.S. Liberals Share Same Values As Israel, Why Do You Applaud Pat Buchanan’s Ouster From MSNBC?

by on Monday, February 20, 2012 at 12:28 pm EDT in Middle East, Politics, World

On Thursday, February 16th, MSNBC effectively dropped its go-to conservative pundit Pat Buchanan, after having suspended him four months earlier, due to the uproar caused by his latest book, Suicide of a Superpower: Will America Survive to 2025?.  The controversy stemmed from one of the book’s premises that America’s identity will cease to exist as it […]