Friday, November 04, 2011

The Wealth Pyramid

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The world’s millionaires and billionaires now control 38.5% of the world’s wealth. Less than 1% of the world’s population control about $89 trillion of the world’s wealth.

There are now 29.7 million people in the world with household net worths of $1 million, 84,700 people in the world worth $50 million or more. 29,000 people world-wide worth $100 million or more. 2,700 worth $500 million or more. Less than 1% of the world’s population control about $89 trillion of the world’s wealth.

The wealth of the rich grew 29% — about twice as fast as the wealth in the world as a whole.

http://blogs.wsj.com/wealth/2011/10/19/millionaires-control-39-of-global-wealth/?mod=WSJBlog

America's Poor

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They may not be starving, but by American standards some 46.2 million people live in poverty today.

The number of people living in neighborhoods of extreme poverty grew by a third over the past decade, according to a new report. More than 10 percent of America’s poor now live in such neighborhoods defined as areas where at least 40 percent of the population lives below the federal poverty line, which in 2010 was $22,300 for a family of four or an individual has to make less than $11,139, or about $30 per day. Residents of such areas were more likely to experience joblessness, poor schools, broken families and high crime. Living in such areas often led to poorer health and educational outcomes for children.

“It’s the toughest, most malignant poverty that we have in the United States,” said Peter Edelman, the director of the Center on Poverty, Inequality and Public Policy at Georgetown University.

Meanwhile, SOYMB reads at the AlJazeera website Robert Jensen, a professor at the School of Journalism at the University of Texas, explaining a bit about human behaviour and capitalism.

"The theory behind contemporary capitalism explains that because we are greedy, self-interested animals, a viable economic system must reward greedy, self-interested behaviour. That's certainly part of human nature, but we are also just as obviously capable of compassion and selflessness. We can act competitively and aggressively, but we also have the capacity to act out of solidarity and cooperation. In short, human nature is wide-ranging. In situations where compassion and solidarity are the norm, we tend to act that way. In situations where competitiveness and aggression are rewarded, most people tend towards such behaviour. Why is it that we must accept an economic system that undermines the most decent aspects of our nature and strengthens the cruelest? Because, we're told, that's just the way people are. What evidence is there of that? Look around, we're told, at how people behave. Everywhere we look, we see greed and the pursuit of self-interest. So the proof that these greedy, self-interested aspects of our nature are dominant is that, when forced into a system that rewards greed and self-interested behaviour, people often act that way. Doesn't that seem just a bit circular? A bit perverse?"

The Israeli Re-settlements - the clearances

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Bedouin means "people of the desert". It describes a way of life, not an ethnicity. Bedouins became Israeli citizens in 1954. In the Negev desert, the Bedouin are typically engaged in farming goats and sheep.

The Bedouin lost more than 3,200 land ownership cases in the Israeli courts in the early 1970s, rejected mainly on the grounds there was no proper documentation. Now the Bedouin are claiming ownership of about 5% of the Negev as traditional tribal lands.

Three years ago, the government commissioned a retired judge, Eliezer Goldberg, to make recommendations for dealing with the Bedouin. He advised that many of their villages should be recognised, acknowledging their "general historic ties" to the land. A committee chaired by the planning policy chief, Ehud Prawer, was tasked with looking at how to implement Goldberg's recommendations, and proposed the immediate transfer to the state of 50% of the land claimed by the Bedouin, minimal compensation for the remaining land with severe exclusions and the demolition of 35 unrecognised villages. The Bedouin were neither represented on nor consulted by the committee.

95,000 Bedouin live in the Negev – 30% of the region's population – on 2% of the land. 90,000 live in 45 unrecognised villages without basic services such as running water, electricity, roads and high schools. 67% live in poverty.

General Moshe Dayan on the Bedouin in 1963: "We should transform the Bedouins into an urban proletariat – in industry, services, construction and agriculture..."

In the coming days, a bill will be introduced in the Israeli parliament which proposes the resettlement of up to 40,000 inhabitants of dozens of "unrecognised" Bedouin villages in the Negev to specially designated townships. On Sunday the cabinet agreed to allow work to begin on 10 new Jewish settlements in the area "to attract a new population to the Negev".

Thabet Abu Rass, professor of geography at Ben Gurion University in the main Negev city of Be'er Sheva, described the plan as a "declaration of war" on the Bedouin, intended to squeeze them into a tiny geographical area, hamper demographic growth, deny them equal rights as Israeli citizens and eliminate their way of life. "If you take the land from the Bedouin, they cannot be Bedouin any more. You are denying their existence," he said.

"...We want to be part of our state here, we want to be equal citizens, partners – and this is what the state of Israel is denying to us for 60 years by marginalising and discriminating against us." Alamour, a teacher and law student in the unrecognised village of Alsira

http://www.guardian.co.uk/world/2011/nov/03/bedouin-plight-traditions-threat-israel

Thursday, November 03, 2011

No Dogs, No Congregating, No Gangs

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Government plans to cut down on gangs in the wake of the summer riots could see youths banned from walking "aggressive dogs" or congregating in certain areas. Young people could also be forced to stop wearing face coverings, as the Home Office explores Asbo-like gang injunctions. The injunctions would allow police and local authorities to mark out those teenagers they believe are susceptible to gang culture and gang-related violence and tailoring the order to their concerns. Breaching an injunction woul result in a jail sentence of up to two years.

Children as young as 12 could be subject to the measures, which are being drawn up in a coordinated effort between the Home Office and the Department of Work and Pensions. "When you get real impact on these gangs, it's when it's not just the police operating on their own, [it's] when they are operating with others, with the local authorities, with education, with health and with the probation service," home secretary Theresa May told Daybreak.

Reports suggest there is tension at the Ministry of Justice, with Ken Clarke opposing some of the measures being proposed. The justice secretary is considerably more liberal than the home secretary. The reported friction follows a public spat between the two on the Human Rights Act during the Conservative party conference and last week's row over knife crime jail sentences for under-18s. "Action on gangs is vital. But this government is making it harder not easier to take action against gangs by cutting 16,000 police officers and making 20% cuts to youth services," said shadow home secretary Yvette Cooper. "Changing the law won't work unless there are properly funded partnerships in place to deliver the action we need."

The anti-gang initiative will see £10 million dedicated to youth violence in the 30 worst affected areas over the next year.

From Yahoo News here.

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SOYMB hope that these draconian proposals if enacted are used immediately against MPs who surely must be one of the most culpable gangs in the country? SOYMB also wonders if it would cause problems for the fox-hunts as surely they are gangs with dogs and face coverings........?!
SussexSocialist

Poverty and mental illness

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For decades, researchers have known that poverty and mental illness are correlated; the lower a person's socio-economic status, the greater their chances are of having some sort of mental disorder. Living in poverty for any significant length of time increases all sorts of risk factors for health and mental health problems. You are more stressed, worrying about money constantly, and how you’re going to pay the bills or have enough money to eat. You eat worse because bad, processed food is so often cheaper than nutritional food. And then when people are mentally ill, they suffer social stigma, have higher health costs, and are at an even higher increased risk of becoming poor.

In a 2005 study, researcher Chris Hudson looked at the health records of 34,000 patients who have been hospitalized at least twice for mental illness over a period of 7 years. He found that poverty — acting through economic stressors such as unemployment and lack of affordable housing — is more likely to precede mental illness (except in patients with schizophrenia.) The data suggests that poverty impacts mental illness both directly and indirectly. Hudson's data shows mental illness to be three times as prevalent in low-income communities as in higher income ones; other studies have shown the rate to be anywhere from two to nine times higher in poor communities.

"It's true that anyone can breakdown but class differentials are often overlooked," Hudson says. "When it comes to mental illness, some people are more equal than others."

From http://psychcentral.com/blog/archives/2011/11/02/the-vicious-cycle-of-poverty-and-mental-health/

A Commonwealth?

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The official name of the state is the "Commonwealth of Massachusetts".

Carol Meyrowitz started at Fram­ing­ham-based TJX Corp. in 1983. Today, nearly 30 years later, she runs a $22 billion retailing giant. Her total compensation package of salary, cash incentives, stock awards, and retirement benefits was $8.5 million in fiscal 2009. It doubled to $17 million in 2010 and rose another 35 percent to $23 million in fiscal 2011, making her the highest-paid CEO at a publicly traded corporation in Massa­chusetts.

Altagracia Ortiz started at TJX eight years ago at a warehouse distribution center owned by a TJX chain called A.J. Wright. Ortiz's initial salary was $6 an hour and by her eighth year she was making $10.55 an hour. That’s about $22,000 on an annual basis, or one third of what Mey­rowitz’s compensation package nets her in a single day.

Meyrowitz decided to close the A.J. Wright chain to better focus the company’s resources on its faster-growing retail out­lets—TJ Maxx, Marshalls, and Home Goods. The TJX board would later cite this “important decision” as one reason for giving Meyrowitz a $6 million raise. The shutdown forced the layoff of 4,400 A.J. Wright employees, including Ortiz. “They destroyed everybody’s life at A.J. Wright,” Ortiz explained.

Inequality is pronounced in Massachusetts. Its top 25 CEOs made a combined $332 million in 2010. The wealthiest 1 percent in 2008 accounted for 22 percent of the state’s income. when just 35,000 tax filers reported a combined income of $53.7 billion. The wealthiest 10 percent of filers (349,000 in all) reported a combined income of $119 billion, which is just a shade less than the $122 billion reported by the other 90 percent. In Greater Boston, the inflation-adjusted median in­come of the wealthiest 20 percent of families grew 55 percent between 1979 and 2008, rising from $150,000 to $233,000. But over that same time period the corresponding figure for the 20 percent of families at the bottom of the income spectrum fell, dropping from $23,026 to $22,988 (and in the Berkshires a 29 percent drop and the Pioneer Valley a 24 percent drop.)

In Massachu­setts according to research by the Center for Labor Market Studies at Northeastern University, the total number of workers 65 and older increased by 64,000, or 63 percent, between 2000 and 2010. “It’s a reflection of this lengthy recession, the severity of this recession,” says Barbara Anthony, the state’s undersecretary for consumer affairs and business regulations, whose office oversees the Division of Elder Affairs. “A lot of people did all the right things—they worked hard, they saved money. But a lot of people had things happen that they couldn’t control. The enormous expense the retiring generation is now facing is something the generation before did not face. Even if you’ve done everything right, you may end up today at 65 or 67 and not be able to retire.”

Nearly 50,000 Massachu­setts families have lost their homes to foreclosure, and sliding home values have left hundreds of thousands of more in homes worth less than the mortgages on them. The US Department of Housing and Urban Develop­ment characterizes households as being burdened, meaning they are more likely to struggle to pay everyday bills, when they devote more than 30 percent of their income to paying for housing. By 2005, nearly 30 percent of middle-income Massa­chusetts homeowners were house-poor ( and 48 percent of Massachusetts renters are spending an excessive amount of their household income on rent). The share of Massachusetts families who make less than $75,000 per year while devoting an excessive amount of their household income to housing has risen, from 53 percent in 2005, to 59 percent in 2010. In 2010, 46 percent of homeowners making between $50,000 and $75,000 spent an unaffordable share of their incomes on their homes.
“Low-income workers have seen their wages fall, and their cost of housing went up, while the wealthy had their income fall less, and their cost of housing go down,”
Barry Blue­stone, an economist at Northeastern University’s Dukakis Center for Urban and Regional Policy,says.The gap between the rich and poor grew because of wages, but it’s been exacerbated because of trends in housing. Housing is leading to even greater inequality.”

http://www.commonwealthmagazine.org/News-and-Features/Features/2011/Fall/001-A-have-and-have-not-world.aspx

Wednesday, November 02, 2011

This Land is Our Land ???

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Capitalist Congress

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plutocracy
1. Government by the wealthy.
2. A wealthy class that controls a government.
3. A government or state in which the wealthy rule.
http://www.thefreedictionary.com/plutocrat

Members of the US Congress had a collective net worth of more than $2 billion in 2010, a nearly 25 percent increase over the 2008 total (aggregate household worth increased just 12 percent).
90 percent of that increase is concentrated in the 50 richest Members of Congress who hold 80 percent of the net worth of the institution.
Among the richest, Reps. Mike McCaul (worth at least $294 million) and Darrell Issa (at least $295 million).
While wealth overall is scattered fairly evenly between the two parties, there is an interesting divide in the two chambers. Democrats hold about 80 percent of the wealth in the Senate; Republicans control about 78 percent of the wealth in the House.

These wealth totals vastly underestimate the actual net worth of Members of Congress because they are based on an accounting system that does not include homes and other non-income-generating property, which is likely to tally hundreds of millions of uncounted dollars.

Overall, 219 Members of Congress reported having assets worth more than $1 million last year; subtracting the minimum value of their liabilities brings the total number of millionaires in Congress down to 196 — again not counting any value on their homes or other non-income-producing property. If one were to assume that every Member of Congress has $200,000 worth of equity in real estate, the total number of millionaires would rise to 220 Members, just more than 40 percent of the Congress.

The average Member of Congress is far wealthier than the average U.S. household. For example, dividing the total wealth of Congress by the number of Members creates a mean (average) net worth for each Member of about $3.8 million (excluding non-income-producing property such as personal residences). By comparison, for the rest of the country, based on statistics released by the Federal Reserve, average household net worth is around $500,000 this year (including personal residences), according to David Rosnick, an economist at the Center for Economic and Policy Research.

Alan Ziobrowski, a professor of real estate at Georgia State University, has produced studies of Congressional investment patterns indicating that lawmakers in both chambers tend to fare better in their investment portfolios than the average American, in part because "...there is no doubt in my mind that they are trading in some way on information that is there."

http://www.rollcall.com/issues/57_51/And-Congress-Rich-Get-Richer-209907-1.html?pos=hftxt

The Wealth of India

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This year there are 1,210 billionaires in the world with a combined wealth of $4.5 trillion.

It includes 55 Indians with a combined wealth of $246.5 billion – surpassing the combined GDP of Pakistan and Sri Lanka!

India’s Richest

1) Lakshmi Mittal World Rank:6
Steel czar Lakshmi Mittal, the 60-year old chairman and CEO of ArcelorMittal stands tall on the numero uno position thanks to a total wealth of $31.1 billion. His company, Mittal Steel Company was formed in 1976 and was merged with Arcelor in 2006 to become the world’s largest steel manufacturer.

2) Mukesh Ambani World Rank:9
This should come as no surprise. Mr. Mukesh Ambani is well-known in India for his super-luxurious house and a mountain of treasure. With a total wealth of $27 billion, he is the second richest Indian & the ninth richest man in the world.

3) Azim Premji World Rank:36
Software mogul Azim Premji has secured the third place among the richest in India with a fortune of $16.8 billion. Even though his wealth slipped from $17 billion last year, Mr. Premji is greatly admired for his philanthropic activities. In the near future, he plans to establish a new endowment trust worth Rs 8,846 crore ($2 billion) to fund various educational initiatives.

4) Shashi & Ravi Ruia World Rank:42
Shashi and Ravi Ruia are brothers who head the Essar Group in India. They are the fourth richest businessmen in India with a net worth that has risen from $13 billion last year to $15.8 billion.

5) Savitri Jindal & family World Rank:56
Savitri Jindal is anIndian steel baroness, the wealthiest woman in India and the world's 56st richest person. Her net worth rose to $13.2 billion from $12.2 billion in 2010. She is noted for being the world's 4th richest mother, as well as for having more children (nine!) than any other billionaire mother.

6) Gautam Adani World Rank:81
Chairman of the Adani Group, Gautam Adani's net worth has jumped to $10 billion from $4.8 billion last year. He is presently India’s sixth richest man.

7) Kumar Mangalam Birla World Rank:96
From a net worth $7.9 billion last year, Kumar Birla’s profits have increased by a few billions this year standing at $9.2 billion. He is the chairman of the Aditya Birla Group and also the Chancellor of the Birla Institute of Technology & Science.

8)Anil Ambani World Rank:103
Not a very good year for Mr. Anil Ambani, the chairman of Reliance Anil Dhirubhai Ambani Group. Last year, his fortune was worth $13.7 billion which has now fallen to $8.8 billion.

9)Sunil Bharti Mittal World Rank:110
With a fortune of $8.3 billion, chairman of Indian telecom giant Bharti Airtel, Sunil Mittal and family have maintained their position this year just like they did last time.

10)Adi Godrej & family World Rank:130
Chairman of the Godrej group, Adi Godrej’s wealth last year was $5.2 billion but this year he ranks as the tenth richest Indian with a net worth of $7.3 billion. He is the second richest person of Iranian descent in the world after Pallonji Mistry.

http://www.businessreviewindia.in/business_leaders/indias-billionaires

"In India, the distribution of assets is extremely unequal, with the top 5 per cent of the households possessing 38 per cent of the total assets and the bottom 60 per cent of households owning a mere 13 per cent," the Institute of Applied Manpower Research (IAMR), an autonomous body affiliated to the Planning Commission, report reveals

Tuesday, November 01, 2011

UK Pay Gap Widens

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The gap between top and mid-range earners in Britain is likely to widen, the National Institute for Economic and Social Research, a think tank, said

The very highest earners have seen the fastest growth in their wages, with the top 1 percent's pay packet growing 68 percent faster than that of the median earner from 1977 to 2002. The median earner is the person in the middle of the wages range, with half of people earning more than him or her and half earning less. The trend was more pronounced the higher the earnings were, with the top 0.5 percent growing 84 percent faster than the median over the same period. The calculations were based on weekly earnings and would have been higher if they had included annual bonuses.

"The prospect of income inequality is likely to rise again, driven both by structural change and governmental policies," said Jonathan Portes, director of the NIESR. Spending cuts planned to tackle Britain's budget deficit will further boost the gap between the richest and poorest.

http://uk.reuters.com/article/2011/11/01/uk-britain-inequality-idUKTRE7A000T20111101

Socialist Standard Vol.107 No. 1287 November 2011

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Monday, October 31, 2011

Fear At The Top?

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The global economy is on the verge of a new and deeper jobs recession that may ignite social unrest, the International Labour Organization (ILO) has warned. It will take at least five years for employment in advanced economies to return to pre-crisis levels, it said. The ILO also noted that in 45 of the 118 countries it examined, the risk of social unrest was rising.

Separately, the OECD research body said G20 leaders meeting in Cannes this week need to take "bold decisions". The Organisation for Economic Co-operation and Development said the rescue plan announced by EU leaders on 26 October had been an important first step, but the measures must be implemented "promptly and forcefully". The OECD's message to world leaders came as it predicted a sharp slowdown in growth in the eurozone and warned that some countries in the 17-nation bloc were likely to face negative growth.

In its World of Work Report 2011, the ILO said a stalled global economic recovery had begun to "dramatically affect" labour markets. It said approximately 80 million net new jobs would be needed over the next two years to get back to pre-crisis employment levels. But it said the recent slowdown in growth suggested that only half the jobs needed would be created.

"We have reached the moment of truth. We have a brief window of opportunity to avoid a major double-dip in employment," said Raymond Torres from the ILO.

The group also measured levels of discontent over the lack of jobs and anger over perceptions that the burden of the crisis was not being fairly shared. It said scores of countries faced the possibility of social unrest, particularly those in the EU and the Arab region. Meanwhile, in its latest projections for G20 economies, the OECD forecast growth in the eurozone of 1.6% this year, slowing to 0.3% next year. In May, it had forecast growth of 2% per year in both 2011 and 2012.

It also cut its growth forecasts for the US to 1.7% in 2011 and 1.8% in 2012. It had previously expected growth of 2.6% and 3.1% respectively. The organisation called for G20 leaders, who meet on Thursday and Friday, to act quickly.

"Much of the current weakness is due to a generalised loss of confidence in the ability of policymakers to put in place appropriate responses," the OECD said.

"It is therefore imperative to act decisively to restore confidence and to implement appropriate policies to restore longer-term fiscal sustainability." It also called for the eurozone to cut interest rates.

Adapted from BBC article here and italicised for emphasis by SOYMB.

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Not surprising in its general content but a note of concern regarding the possible reaction - it seems that the ruling classes maybe preparing for increased social unrest and planning more than just the usual responses, perhaps echoing and exceeding the heavy handed tactics currently being deployed against the Occupy Wall Street protesters.

SussexSocialist


The cant of that patriotic capitalist class

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The effective tax rate paid by Britain’s biggest companies has dropped by almost a third over the last two years.

In 2009, FTSE 100 companies on average paid tax equivalent to 35.8 per cent of their annual profits but research by UHY Hacker Young, a national group of accounting firms, shows that figure has fallen to just 26 per cent in 2011, even though profits are higher.

The drop since 2009 is partly a result of a fall in the headline corporate tax rate from 28 per cent to 26 per cent over the last two years. Some top companies also carried forward losses made during the recession to gain tax relief in later years. More than a third of FTSE 100 companies paid no corporation tax at all last year. FTSE 100 companies are also generating a higher percentage of their revenues overseas than was previously the case. This means they are able to take advantage of lower tax rates in those overseas jurisdictions. Aileen Scott, tax partner at Campbell Dallas, said the steep decrease was also related to some British companies moving their headquarters overseas.

Scott said the firms were not doing anything wrong.“Companies have a duty to their shareholders to keep the tax they pay under control,” she said. “With more of their operations now based overseas it is only sensible for them to ensure that their business is structured properly so that they are paying tax at the best rate.That doesn’t mean they are doing anything that is illegal or pushing the boundaries of acceptable tax planning. They may simply be reducing their activities in high tax overseas jurisdictions..."

A number of British companies have moved to countries with lower tax rates in order to reduce their tax burden in recent years. Research carried out this summer for HM Revenue & Customs showed 26 per cent of large companies are considering relocating part or all of their business abroad.






October 31 - world population - 7 billion

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The United Nations will to-day declare that the world population has reached seven billion. One of the 382,000 babies born Monday will have that honour.

Some say the occasion is to be celebrated as a success of the human species. Population grows when births exceed deaths. The 7-billion mark was reached because people are living longer and the number of infant deaths has dropped, because of a larger food supply and because of advances in sanitation and medicine. Others voice a foreboding for the future, questioning the growth's sustainability upon the natural resources of the world. As many debate the earth’s population reaching seven billion on October 31, some countries in Europe, East Asia and the US are facing declining birth rates.

For a population to stay at a steady state, the fertility rate needs to be about 2.1 children per woman. More than 30 countries have what is considered a very low fertility of less than 1.3 births per woman. Japan’s rate, one of the lowest in the world, is 1.21, according to the CIA, far below basic replacement levels. The UK is at 1.91, Belgium’s is 1.65, Canada is at 1.58, South Korea has a rate of 1.23 and Italy has a rate of 1.39. Turkey, Algeria, Tunisia, and Lebanon are also now sub-replacement countries.

“With a lower fertility rate, the ageing of the population is inevitable” said Roderic Beaujot, a demographer at the University of Western Ontario in Canada.

In the UK, for example, the number of people over 70 will increase by more than 50 per cent - from 6.2 million today to 9.6 million in 2030. With senior citizens making up a larger proportion of the population, countries are worried that there will be too many retirees receiving healthcare and social security payments and too few workers to support them. There are two main solutions: increasing fertility rates or encouraging immigration. Russia initiated a policy known as “mother capital” where women are paid about $10,000 to have more than one child. While in proportion to its population, Canada naturalises the most people in the world by far. By 2031, one in three workers in Canada is projected to be foreign-born.

“Countries that do not wish to open their doors to immigration will be forced to rely more on other policies to shoulder the burden of population ageing” Sumption, from the Migration Policy Institute, said - Raising the retirement age and cutting back on welfare benefits

"The world's population growth reached its peak at 1.9 per cent in the 1960s and has dropped to about 1.2 per cent," said Richard Bilsborrow, faculty fellow at the Carolina Population Centre. "The fall is really extraordinary."

The Economist reported in January 2011 that "The richest one per cent of adults control 43 per cent of the world's assets; the wealthiest ten per cent have 83 per cent. The bottom 50 per cent have only two per cent."

If the gap between the haves, have-nots and have-yachts is reduced drastically, critics say, the world has enough wealth and natural resources to provide a decent standard of living to a large population. A rise in living standards, access to family planning and more rights for women have all played a role in slowing the rise, analysts said.

There is, however, one significant exception - sub-Saharan Africa. Its population is expected to at least double in less than 40 years with the average woman in Ethiopia and Mozambique giving birth to five children. In Somalia, which has one of the highest birth rates in the world, only 1 percent of married women have access to modern contraception.

"The most productive aid we in the West can give is education,"
John Weeks, director of the International Population Centre at San Diego State University said. "But selling weapons is what the rich countries do most easily."

In all likelihood the 7 billionth child will join the ranks of the already hungry, or those perpetually wondering where their next meal will come from. Around 3 billion people are currently estimated to be living on $2 a day and almost 1 billion are hungry. The 7 billioner will probably struggle to get an education or a permanent job, and their illiteracy and work-insecurity will make getting out of poverty that much more difficult.

He/she may struggle to get potable water: water usage in the developing world is due to rise by 50% by 2025. Of the 2.5% of the world’s fresh water, two-thirds is frozen. Irrigation is used on around a quarter of the world’s croplands and underpins more than one third of agricultural production. If there were no irrigation then global cereal production would drop by 20%.

More than likely will live in a city for urbanisation – or rather the flight from rural areas – is not only going to use all manner of resources, it’s going to mean fewer farmers willing to stick to their fields. By 2050 around 6.3 billion of the world’s 9 billion people by that time will live in cities.

Hopefully the 7 billionth person will be a socialist and understand the solutions. The present food crisis -- in which nearly a billion people are going hungry -- is used as proof of the food scarcity plaguing the planet. There is scarcity -- but not of food.

The world produces 1-½ times enough food to feed every man, woman and child currently living. Studies show that sustainable agricultural practices can produce enough food to feed 10 billion people. The University of Michigan have constructed two models, a "conservative case" and a "realistic case." The "conservative case" applied the yield ratios of organic production to conventional production from the developed countries to worldwide agricultural production (production in both the developed and developing countries). As the yield ratios in the ten food categories were generally lower in the developed countries, applying them worldwide means that slightly fewer calories would be produced under a fully organic global system: 2,641 kcal/person/day instead of 2,786 kcal. However, this number is still above the suggested intake for healthy adults of 2200 to 2500 kcal/person/day, so even under this conservative estimate there would be sufficient food production for the current population. However, under more realistic assumptions—that a switch to organic agriculture would mean the relatively lower developed world yield ratios would apply to production in the developed world and the relatively higher developing world yield ratios would apply to production in the developing world—the result was an astounding 4,381 kcal/person/day, a caloric availability more than sufficient for today's population. Indeed, it would be more than enough to support an estimated population peak of around 10-11 billion people by the year 2100. The study isn't a precise prediction for any specific crop or region, but rather an indicator of potential performance of organic relative to conventional and the current low-intensity agriculture practiced in much of the developing world.
http://www.foodfirst.org/en/node/1778

People are going hungry not because there is not enough food, but because they are poor and can't afford food

Austerity? Cut-backs?

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• The US is planning to spend $700bn on nuclear weapons over the next decade. A further $92bn will be spent on new nuclear warheads and the US also plans to build 12 nuclear ballistic missile submarines, air-launched nuclear cruise missiles and bombs.

• Russia plans to spend $70bn on improving its strategic nuclear triad (land, sea and air delivery systems) by 2020. It is introducing mobile ICBMs with multiple warheads, and a new generation of nuclear weapons submarines to carry cruise as well as ballistic missiles. There are reports that Russia is also planning a nuclear-capable short-range missile for 10 army brigades over the next decade.

• China is rapidly building up its medium and long-range "road mobile" missile arsenal equipped with multiple warheads. Up to five submarines are under construction capable of launching 36-60 sea-launched ballistic missiles, which could provide a continuous at-sea capability.

• France has just completed deployment of four new submarines equipped with longer-range missiles with a "more robust warhead". It is also modernising its nuclear bomber fleet.

• Pakistan is extending the range of its Shaheen II missiles, developing nuclear cruise missiles, improving its nuclear weapons design as well as smaller, lighter, warheads. It is also building new plutonium production reactors.

• India is developing new versions of its Agni land-based missiles sufficient to target the whole of Pakistan and large parts of China, including Beijing. It has developed a nuclear ship-launched cruise missile and plans to build five submarines carrying ballistic nuclear missiles.

• Israel is extending its Jericho III missile's range, and is developing an ICBM capability, expanding its nuclear-tipped cruise missile enabled submarine fleet.

UK - A Trident replacement of four new nuclear missiles submarines are alone estimated to cost £25bn at the latest official estimate.

For several countries, including Russia, Pakistan, Israel and France, nuclear weapons are being assigned roles that go well beyond deterrence, says the report. In Russia and Pakistan, it warns, nuclear weapons are assigned "war-fighting roles in military planning".

http://www.guardian.co.uk/world/2011/oct/30/nuclear-powers-weapons-spending-report

Royal Power

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Following on from an earlier blog SOYMB discovers more royal power

Since 2005, ministers from six departments have sought the Prince of Wales' consent to draft bills on everything from road safety to gambling and the London Olympics. The prince's power applies when a new bill might affect his own interests, in particular the Duchy of Cornwall, a private property empire that last year provided him with an income. It is headed by the prince with a £200,000-a-year chief executive, Bertie Ross, who oversees the equivalent of 91 full-time staff. While investors everywhere have been buffeted by financial turmoil in recent years, the value of the Duchy portfolio has risen from £618m in 2006-7, to £712m in 2010-11. The prince's annual income from the duchy has risen over the same period from £15.2m to £17.8m. it owns substantial residential and commercial properties such as Poundbury, a mock-Georgian new town in Dorset and the Franklin Wilkins building leased to Kings College London, more than 2,000 hectares of woodland, holiday cottages in Cornwall, and the Oval cricket ground also in London. Duchy tenants in the village of Newton St Loe, outside Bath, this year complained to the prince that they had been "fobbed off", "patronised", "misled" and "dealt with in an overly aggressive manner" by duchy representatives who handled their complaints about its plans to build 2,000 homes on neighbouring farmland. Some were afraid to speak their minds for fear of finding the terms of their tenancies changed.

Neither the government nor Clarence House will reveal what, if any, alterations to legislation Charles has requested, or exactly why he was asked to grant consent to such a wide range of laws.

The title and property of the Duchy of Cornwall were created in 1337 by Edward III, and were given by royal charter to his son, the Prince of Wales. Under the charter, the duchy always belongs to the sovereign's eldest son who is the heir apparent. If the heir apparent dies without leaving children, the property of the duchy reverts to the crown. So although the duchy belongs to the Prince of Wales, who is also the Duke of Cornwall, there is a theoretical possibility that it could revert to the sovereign, who therefore has a contingent personal interest in matters that affect the property of the duchy. Bills in parliament that would affect the sovereign's private interests (or the royal prerogative) require the Queen's consent; by extension, therefore, bills that would affect the duchy also require consent, and since the Prince of Wales administers the duchy he also performs the function of considering and granting relevant requests for consent. The consents are required as a matter of parliamentary procedure, as a method of protecting crown prerogative and private interests. The sovereign and the Prince of Wales are the only members of the royal family whose consent is required for bills that affect their private interests. Where a bill affects the "hereditary revenues, personal property or other interests" of the Duchy of Cornwall, then "the consent of … the Prince of Wales must be signified in both houses [of parliament] before the bill is passed," Cabinet Office guidance states.

http://www.guardian.co.uk/uk/2011/oct/30/prince-charles-offered-veto-legislation
http://www.guardian.co.uk/uk/2011/oct/30/prince-charles-ancient-charter-consent?INTCMP=ILCNETTXT3487
http://www.guardian.co.uk/uk/2011/oct/30/prince-of-wales-veto-legislation

Sunday, October 30, 2011

Anti- Social Housing?

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Future of Social Housing?
A report from Inside Housing Magazine that has reached SOYMB highlight the madness of housing policy under capitalism......

Edited from original articles from Inside Housing, Friday 28th October 2011:

Councils will demolish thousands of homes to slash the amount of debt they take on under the imminent reform of the housing subsidy system. Some authorities have drawn up plans in a matter of months this year to knock down hundreds of homes for financial gain. Other councils have fast-tracked proposals, an Inside Housing investigation has found.
They have acted because of an in-built ‘demolition deadline’ in plans to scrap the housing revenue account. Under the system the majority of town halls in England will take on a share of the existing £21 billion national housing debt based on the number of properties they own. But stock set to be demolished before 2017 will not be included in the calculations - providing a sizeable financial incentive to demolish. It is understood the number of homes councils told the Communities and Local Government department they will demolish exceeded its expectations.
Nottingham and Birmingham councils have drawn up some of the most eye-catching plans - proposing to flatten more than 2,000 homes between them. All councils argue the homes picked would be costly to maintain and would not have a long-term future anyway.
Michael Gelling, chair of the Tenants’ and Residents’ Organisations of England, said: ‘You have all this pressure [waiting lists] on the social housing sector and this will make it worse.’
In a paper seen by Nottingham Council’s executive board last month, the council, which currently has 13,000 people on its waiting list, said its arm’s-length management organisation had assessed all 29,000 of its homes as a result of the HRA reforms. Demolishing 973 homes would reduce its HRA debt by £10.2 million. But the plans could prove controversial in some areas - 50 per cent of residents responded to consultation on one 209-home estate, with 51 per cent of those saying they favoured demolition.
Birmingham plans to flatten up to 1,279 homes. It failed to respond to Inside Housing’s inquiries but reportedly had more than 17,000 people on its waiting list earlier this year. Council reports said the homes would be ‘costly to maintain’ and that the job to identify homes ‘is now underway as it will save a lot of money in debt repayment costs if tower blocks are identified for demolition by September’.
A paper presented to Eastbourne Council, which is demolishing a number of retirement blocks, added, ‘further demolitions and disposals of retirement courts will be necessary to allow the council to develop a viable HRA business plan’.
Ian Fitzpatrick, senior head of community at Eastbourne Council, said: ‘This process is all about good asset management over the long term.’
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In a separate article from the same edition it was also noted that:
Factsheets have popped through their letterboxes telling them their homes will cost too much to maintain, are in unpopular areas or, perhaps, that the design of their estates of high-rises mean they are crime magnets. The message is clear. As one leaflet prepared for residents in Birmingham puts it: ‘We have identified that one or more of these factors affect your tower block and the best option would appear to be demolition.’
It is not a coincidence that so many of these letters have been arriving within weeks of each other in various towns and cities. The plans for demolitions - more than 2,000 are anticipated in Birmingham and Nottingham alone - are, of course, based on detailed surveys on the viability of stock over the next 30 years. There has, however, been a strong financial imperative for councils to carry out the work. As we reveal on page 1, if councils have firm plans in place for demolition before 2017, the doomed homes will be excluded from housing revenue account calculations. Put simply, fewer homes means less debt for many authorities.
The big question is would these homes have been demolished by 2017 anyway? In some cases certainly. In others it is less clear. David Hall, director of consultancy Sector, who has worked with some authorities on their plans sums up the thought process. He says a number of councils have gone for demolitions ‘where it has been at the back of their mind to do something at some stage and they are bringing it forward to improve the position of their settlement’.
Because the process has been completed so quickly it is hard to tell how controversial the plans will prove in the long term. Heritage group SAVE said it thought the plans ‘seemed crazy’ because of the length of many council housing waiting lists. So there could be national opposition on top of local fights where residents who voted against proposals find their homes are for the chop.
Councils will argue more favourable HRA settlements will enable them to build better homes for the future. But there is no getting away from the strange fact that a reform designed to free councils to build more homes is going to start with a wrecking ball.
Last year Liverpool’s leader claimed that renovating a house in the Welsh Streets district of the city would cost £150,000. When pressed the council admitted the figure ‘was not based on an actual fully costed specification of any one individual property’. In other words, ‘we made it up’. In 2005 a house in the area was refurbished on Trevor McDonald’s Tonight programme for just £32,000.
Similarly, in a furious response to a call from the housing minister to consider refurbishment of the same neighbourhood, Liverpool housing chief Elaine Stuart claimed that demolition had overwhelming support (Inside Housing, 7 January). The planning file tells a different story - the responses in the consultation report show 170 in favour of demolition and 435 against.
Ms Stuart also attacked ‘London-based lobby groups’, such as SAVE, for interfering - choosing to ignore the fact that SAVE was approached for help by local groups, which were sick of being ignored. The Welsh Streets Home Group has seven years of minutes from residents meetings, together with surveys, petitions, buyers registers, and hundreds of letters from local people. Their views have been consistently disregarded.
The question now is whether Liverpool Council will have the courage to abandon demolition and begin a controlled release of condemned properties to those people queuing up to take them on. The financial incentives are there - apart from a potential £20 million from sales (in Welsh Streets alone), the new homes bonus can now be claimed on reinhabited properties, and the Homes and Communitites Agency has a £100 million renovation fund. Pathfinder is dead; it’s time to bury the wrecking ball too.
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So for short-term financial gain and possible long term profits from external developers and their agents it seem that those allegedly elected to act in the public interest are neglecting people's immediate housing needs. The fact that thousands are homeless and more are inadequately housed is not an issue while there is money to be saved or made. This muddled thinking is typical of a system based on money and profit and only serves to underline the need to get rid of it and replace it with one based on satisfying basic human needs such as housing.
SussexSocialist

Saturday, October 29, 2011

Mind in a cul-de-sac: Laing

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If one considers the family in its genealogical image as a tree, today lumberjacks are out. The tree, by various allegations, is blighted and corrupt, the leaves malnourished while society still praises its luxuriance. In the nineteen-fifties Dr. Kinsey showed statistically that monogamy was a stale pretence; in the 'seventies Women's Liberation proclaims it to be a cage. The most trenchant attacks on the family, however, have come from the psychiatrist Dr. Ronald Laing. In a series of writings on the condition of schizophrenia, Laing has shown family groups as circles bent on mental violence, selecting this and that member as victims for destruc­tion. Only the mad are sane, says Laing.

A psychiatric theory may not, in itself, be thought to matter much outside the world of attempted therapy where - as with more palpable physical disorders ­the patients are patched to be sent back to the en­vironment where their troubles grew. But Laing's has been popularised as material for social and political dissenters. Contributing to the New Left Review, Peace News and New Society automatically connected him with the cultural Left; in 1967 he was one of the speakers in the "Dialectics of Liberation" seminar at the Round House, London, with Marcuse, Stokely Car­michael and others. The film Family Life is a repre­sentation of his view of everyday relationships: an onslaught against the stupidity, unfairness and general motivation of the conventional and a vindication of the young dubbed insane, with the implication that the latter had better run from the former as fast as they can.

It is also a representation of the nature of Laing's popularity. The appearance of cheap editions of his books coincided with the emergence of the "under­ground", the movement for dropping-out and psyche­delia. The first Penguin by Laing, The Poliiics of Ex­perience, came out within weeks of the first issue of International Times. In a recent symposium, Laing and Anti-Psychiatry, Jan B. Gordon says: ". . . Laing's popularity among political activists, particularly those of New Left persuasion, is more easily understandable. He wages an incessant argument against history and sees any suggestion of scientific objectivity as an ex­cuse for psychological colonialism ... altering the maps unfairly." The writer is probably identifying "New Left persuasion" with the large anarcho-hippy fringe of those years, possessed by the idea that an aggregate of drop-outs was itself an "alternative society". The intellectual demigod of an earlier generation, Freud, held that the anarchist rebel was simply someone who rejected his father. Laing has gone further and supplied the rebel with a whole case-history against his father.

The Politics of Experience is an argument on the nature of personal experience, and the effects of rela­tionships on it. For Laing, we are what we experience. Each individual's experience is unique:

"I cannot experience your experience. You cannot exper­ience my experience. We are both invisible men. All men are invisible to one another. Experience is man's invisibility to man. Experience used to be called The Soul. Experience as invisibility of man to man is at the same time more evident than anything. Only experience is evident. Experience is the only evidence."

Though there are references in the same book to struc­tures of experience being shared, and to the attempted communication of experience, what Laing reiterates many times is its personal nature. He says: "Our be­haviour is a function of our experience. We act accord­ing to the way we see things . . . If our experience is destroyed, we have lost our own selves."

The sentence between the two in that quotation is a key one in Laing's thesis. Put in italics by him to em­phasise its importance, it is: "If our experience is destroyed, our behaviour will be destructive." This is the springboard of Laing's other social-psychological works, Self and Others and Sanity, Madness and the Family. Man's failing is the mental violence he persists in doing to others. Its nature is attack upon and in­tended invalidation of others' experience, the effect to cause them to "lose their ownselves". Nowhere in society is this more precisely practised than by the members of families, one upon another:

". . . the frightened, cowed, abject creature that we are admonished to be, if we are to be normal - offering each other mutual protection from our own violence. The family as a 'protection racket'. Behind this language lurks the terror that is behind all this mutual back-scratching, this esteem-, status-, support-, protection-, security-giving and getting. Through its bland urbanity the cracks still show."

We are, says Laing, "effectively destroying ourselves by violence masquerading as love". In this light, the form of insanity called schizophrenia is examined intensively in the books. For Laing, nor­mality is hardly desirable. "Normal" men are alienated, sleep-walking, have killed one another by the million in wars, do frightful violence mentally in their family circles. The Politics of Experience quote descriptions of a teacher-and-pupils session to show the extension of coerced adaptation into school. Is madness a fact, or is it a labeI devised by the normal, who are insane any­way, for those who won't join their game? Laing be­lieves it is:

"In over 100 cases where we have studied the actual circumstances round the social event when one person comes to be regarded as schizophrenic, it seems to us that without exception the experience and behaviour that gets labelled schizophrenic is a special strategy that a person invents in order to live in an unlivable situation."

Thus, Sanity, Madness and the Family is a collection of case-histories including recordings of the patients' discussions with their families. The Family Life film is a dramatized view of the same terrain - dunder­head factory-foreman father, thin-lipped always-right mother, reactionary doctors, and nice young people with a hip flavour who could have made things all right for the girl if she'd been left alone. The point recurs: the sane are hopeless and destructive, the alleged insane are simply running blind to escape their intentions.

Where does all this take us? Has Laing a clue to remedying the disorders of our society? Obviously much in his writings appeals to anyone dissatisfied with the conventions and the spurious wisdom of the social order. The thought that the world is mad has occurred to most of us at some time, and cultural schools like Surrealism and Dada have been formed to make ap­propriate gestures in kind. It is easy to relish, too, the description of the pressures brought to bear in the family for social conformity: the induced anxiety and emotional blackmail - "My concern, my concern for your concern, your concern, and your concern for my concern, etc." Likewise the comments on the established functions of psychiatry: "But social adaptation to a dysfunctional society may be very dangerous. The per­fectly adjusted bomber pilot may be a greater threat to species survival than the hospitalised schizophrenic de­luded that the Bomb is inside him."

Beyond these attractions on the surface, bowever, Laing is offering nothing but a great deal of confusing of issues. What needs considering at once is the basic idea of experience from which his theory is developed: "All men are invisible to one another." Despite the qualifying and extending remarks which are at times contradictory tangles, the central point on which Laing insists is a Berkeleyan belief that experience, and there­fore reality, are subjective. Indeed, the contradictions are inevitable. If it were true that "the experience of the other is not evident to me, as it is not and never can be an experience of mine" - if, in fact, all men were invisible to one another - communication would be impossible. Society depends on the certainty of common experience.

To say that only personal experience is evidence is as meaningless in social practicality as was Berkeley's theory of matter when the stone fell into the pond. True, Laing says he rejects the categories "subjective and objective", "inner and outer", "process and praxis", and many more, but the rejection wiII not do. In each case, he is really seeking to reject one of a pair of opposites by naming both of them. In the description of experience, it is objectiveness that is disclaimed and subjectivity left by every inference. (If any doubt re­mains, the penultimate chapter of The Politics of Ex­perience, titled "Transcendental Experience", asserts not only the subjectivity of experience but the desir­ability of its being so.)

The meaninglessness is demonstrated when one looks at examples of what Laing calls mental violence, the denial of another person's subjective experience. What is being denied usually is physical or social fact: the violence consists not in the denial but in the blocking of avenues to verification. In the Orwellian example where the inquisitor demoralises his victim by insisting that two and two make five, and in Laing's examples where Jack tells Jill her perception is wrong, the attack is simply on social axioms. There are, of course, realms where values and preferences rather than facts are attacked: a person's liking for this or that music and art, his relationships and aspirations, may bring hos­tility and denigration from those round him. Again, however, there is nothing subjective about the exper­iences involved - the person's misfortune is to have displayed them in the wrong social milieu. But in any case it is absurd to cIaim all criticism or dispute to be mental violence. There is bullying and pressure to con­form, and much of it takes place in families; but re­buttal and challenge are essential to personal as well as social development.

The studies of family groups show a person's exper­ience - i.e. the core of his or her individuality - under attack from other members of the family, and the label "schizophrenic" affixed. What is pointed out, implicitly or explicitly, is that it is not he or she but they who are insane. It has already been remarked that this is gratifying to people at odds with, disapproved or con­demned, by their parents; but where does it lead? One is bound to ask who, in turn, made the parents mad. Laing has recognised the question by saying (in a 1967 article) that the web may stretch back three gener­ations, but that does not answer it. As a reductio ad absurdum there could be postulated an insane God as the first cause, the spider who created the web. Nor is it suggested what happens to the children of the schizo­phrenic-sane. Do they grow up free from the pressure of mental violence; or does the schizophrenic exper­ience make new norms and new demands that others should conform to them?

In the 1965 preface to an earlier work, The Divided Self, Laing speaks of his theories as condemning not only family relationships but the social order at large, because it "represses not only 'the instincts', not only sexuality, but any form of transcendence". The preface was withdrawn from the 1970 edition, and he is now reported to have retreated into mysticism. The dilemma of Laing is that a subjective view of human existence is a blindfold to consideration of the social order. The results, inevitably, are negative: Jan B. Gordon sees Laing as having accomplished "the construction of a system which makes nihilism functional". In his diagnosis of schizophrenia the idea of a cure cannot have a place; the schizophrenic embarks on a journey closely resembling a drug-taker's "trip", but we are not told about the return.

The general effect of work like this is to obscure the answers to social problems of relationships. On one hand, Laing is saying to many young people that there is no answer: hide, drop out, escape the lethal in­sanity of the world. On the other, the nature of what is going on in society is made to appear a complex of attitudes and behavioural algebra. At no point does Laing - or any of the commentatars in the Anti-Psy­chiatry book - distinguish between the family as a human grouping and the family under capitalism. Yet the distinction contains the explanation of the mental violence and the pressures which provide so much material for psychologists and liberationists together.

For capitalism, the family is vital because in it we work the social roles required of us economically. Stability and organisation are provided; experience is communicated to make social life continuous and co­herent. What Laing sees as the facade of family life was real enough in the past because acceptance of the roles was not questioned (insofar as they conflicted with instinct, half-recognised arrangements were made). However, as capitalism has extended and intensified the division of labour, the experience of one generation has ceased to mean much to another. Hence the roles themselves become doubtful: why should women wait on men, sons defer to fathers, children strive for re­spectability which means a damned-awful life? At this point violence is immanent. Laing observes rightly enough that it disguises itself as love and concern, but has no word as to why the situation is there in the first place. It is the channel for the compulsions of capitalism, through which hopes of good relationships are continually destroyed.

The answer is therefore not at all obscure. Laing's ultimate cry is wholly negative: "If I could turn you on, if I could drive you out of your wretched mind, if I could tell you I would let you know." Tell you what, except introspection and despair? At both the personal and the social leveis, relief from futility can be achieved by positive engagement: specifically, in creating a society where experience has meaning, and human per­sonality is able to live.

R. BARLTROP
Socialist Standard, August 1972

(This article was previously unavailable online. Many issues of the Socialist Standard dating as far back as 1904 have been added recently to the archive section of our new, improved website).

India Racing To Widen The Wealth Gap

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Saleem - Evicted Farm Worker
Adapted from original BBC article here.

Lady Gaga probably will not have to worry about getting stuck in traffic before her performance to mark India's first-ever Formula 1 Grand Prix. But it may take more time for fans to travel the 30km (18 miles) from Delhi to the circuit than for the drivers to cover the 300km (186 miles) of the race itself. The high-octane, high-spending Formula 1 glamour machine is coming to a country of extremes, with both some of the richest and poorest people on earth - and some of its most traffic-clogged roads. Some fear it will only make those extremes worse.

"India is fevering for this event", enthused one fan as he watched F1 cars roar past on Delhi's famous Rajpath - transformed into a race track for a day to promote the sport. Several thousand mainly young and clearly wealthier-than-average people turned out for the show - some even claiming F1 could challenge the popularity of cricket. Few believe that, specially as even the cheapest seats - at 2,500 rupees ($51; £32) - are way beyond the pockets of most Indians but organisers say they have been selling well. Proof, says Vijay Mallya, the billionaire co-owner of India's F1 team, of the growing disposable income of India's "aspirational middle class".

The private Indian company, Jaypee International, has been trumpeting its success in getting the new Buddh International Circuit, as it is known, outside Delhi, ready on time. When the BBC visited recently, the paint work looked a little rushed and hundreds of people were still hard at work on the grandstands and grounds, fixing seats and laying turf, watched over by baton-wielding security staff. It has reportedly cost some $400m (£248m), and some doubt it will ever recoup its investment.

But with this season's Formula 1 championship already decided, the race matters more to India as a chance to show it can compete in the economic and sporting big league. Jaypee chairman Jaiprakash Gaur predicts the Grand Prix will banish "the shameful memories" of the chaos and corruption that marred last year's Commonwealth Games in Delhi. "The world's perception of India is going to change after the Grand Prix," he promises.

Critics fear it is just another sign of India's wealthy elite getting ever further ahead of the rest. "This is polo for the new generation," says Ashis Nandy, an academic and social commentator, describing the millions being spent on the Grand Prix race as an "utter waste" and "totally insensitive" - with the majority of Indians living on less than a dollar a day. Just outside the circuit, with its computer-designed track, water buffalo pull rickety wooden carts along another kind of track - which has never seen any tarmac. But Formula 1 has had something of a lottery effect here as farmers and landowners whose plots were needed for the circuit received big sums in compensation - some as much as $1m (£621,000).

In the nearby villages, you see the result - shiny new SUVs (sports cars) and large new houses going up, with barefoot boys playing in nearby streets next to open sewers. Most people here got nothing, so this shower of sudden wealth is causing plenty of resentment. Saleem, a landless labourer, says: "I wish Formula 1 had never come here." Now all the local farmers have sold their land, he says, there is no work for him and he can not afford to send his children to school. With the Formula 1 promotional machine now in top gear, such concerns are being drowned out - with the Indian media counting down excitedly to the race. "Why does the international media keep focusing on the poor part of India," complains Formula 1 team owner Vijay Mallya.

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Perhaps they keep focussing on the poor, Mr Mallya, because many find it utterly disgusting that it seems okay to you to spend such obscene amounts of money on racing cars for the elite to enjoy, when children are dying in abject poverty all around you? I mean to step over open sewers and starving locals on the way to see Lady GaGa and Indian's nouveau-rich must prick even the dullest conscience as being, well, a bit wrong surely? This kind of desperation to be part of the 'west' is driving a massive wedge through the developing nations, whereby the gap between the wealthy and the poor is growing at an alarming rate.

SussexSocialist