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Monetary Imperialism & Apartheid in Africa: The CFA Franc

| Sherri Donovan |

Colonialist Northern nations utilize the IMF, the World Bank, legal frameworks, imposition of fiscal austerity, tax rules and privatization to deprive African cultures and countries of their own resources and to ensure such resources flow to the imperialistic nations and international corporate benefit.

After World War II, France was economically devastated and its currency was weak. France wanted the resources and wealth of African peoples and lands, and to extract it on exploitive terms. In the late 1950’s and early 1960’s after the independent movements and struggles of African peoples ( often met with brutal violence by Europe), Charles de Gaulle’s neo- colonization conditioned political independence of new West and Central African nations to maintaining economic ties to France to France’s advantage. As Franz Fanon stated, “Colonialism never gives away something for nothing.” Currency arrangements have in the past and continues under Macron to be a critical tool in transferring wealth and resources from Africa to France.

CFA stands for Communauté Financière Africaine (African Financial Community). The CFA is a colonial currency created December 26, 1945 by General De Gaulle and his finance minister. This was the same day that France ratified the Breton Woods agreement and the new parity of the french franc was presented to the newly born IMF. Fixed exchange rates trace back to the Bretton Woods period when 63% of Southern countries had their currency pegged to that of an imperialist country.

The CFA was originally translated as “Franc of the French Colonies in Africa” The CFA is still used in West and Central Africa by 14 countries and split into two monetary zones. The eight countries of West Africa using the CFA, with an ISO currency code of XOF are Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. They represent the West African Economic and Monetary Union, or WAEMU, founded in 1994 to build on the foundation of the West African Monetary Union, founded in 1973. The six countries of Central Africa using the CFA, ISO currency code of XAF are Cameroon, Chad, Central African Republic, Congo Republic, Equatorial Guinea and Gabon. They comprise the Central African Economic and Monetary Union, or CAEMC.

Although separate, the two CFA franc currencies have always been at parity and are effectively interchangeable. All were former colonies of France except Guinea-Bissau and Equatorial Guinea. All maintain French as an official language except Guinea Bisseau. Comoros also has its own central bank tied to France and is considered part of the CFA system.

In 1960, France actually had a larger population — around 40 million people than the 30 million inhabitants of what are now the 15 CFA nations.( including Comoros). In 2021, 67 million people live in France and 183 million in the CFA zone.According to UN projections, by the year 2100, France will have 74 million, and the CFA nations more than 800 million.

Given that France still controls their financial destiny, through the CFA, the situation is increasingly a monetary apartheid. The CFA is issued by three separate central banks, Banque Central des Etats de l’Afrique de l’Ouest ( BCEAO) and the Banque des Etats de l’Afrique Central( BEAC). Comoros has a separate bank, (BCC). It is mandatory that French officials sit on the boards of all of the CFA franc central banks and the French government has the authority to monitor all financial transactions of these 15 nations. The French people were permitted to vote on whether or not to adopt the Euro through a referendum. The African peoples of the CFA nations were denied any such right, and were excluded from the negotiations that would peg their money to a new currency. The French government can veto the decisions of the BCEAO and the BEAC. The monetary policy favoring European priorities is set by the European Central Bank ( ECB), previously set by the Banque de France. France is acting similar to an IMF for these West & Central African nations. The World Bank and the International Monetary Fund have historically worked in concert with France to enforce the CFA system, and rarely, if ever, criticize its exploitative nature.

French colonialism goes beyond money. It also affects education and culture. For example, Farida, a Togolese activist said, the World Bank gives $130 million per year to support Francophone countries pay for their books for public schools. Farida says 90% of these books are printed in France. The money goes directly from the World Bank to Paris, not to Togo or to any other African nation. The books are brainwashing tools, Farida said. She points out, that “They focus on the glory of French culture, and undermine the achievements of other nations, whether they be American, Asian or African.” French language is promoted heavily by France to ensure the colonial system of keeping the monetary and economic system bound to France. There are more French speaking people in Africa than France. Based on my personal observations of over twelve years of spending time in Senegal, most of the French who visit or reside in Senegal refuse to learn a word of Wolof. They expect all West & Central African people to speak French. The French are shocked or laugh in a condescending manner when they hear me converse without French, in Wolof (albeit simply).

Of course France has a long-standing pattern of subverting democracy and elections to maintain monetary and economic exploitation. An important part of the CFA system is French support for dictatorship. With the exception of Senegal, not a single CFA bloc country has ever had meaningful democratization. As Farida points out, “Every single successful tyrant in Francophone Africa, has had the full backing of the French government” as long as an African colonial elite will favor France. The French Treasury guarantees the convertibility of the CFA into the French Franc, and now the Euro. Independent economic and financial planning is impossible for these West and Central African nations.

The CFA system confers five major benefits to the French government: bonus reserves to use at its discretion; big markets for expensive exports and cheap imports; the ability to purchase strategic minerals in its domestic currency without running down its reserves; favorable loans when CFA nations are in credit; and favorable interest rates when they are in debt.

As Senegalese economist, Ndongo Samba Sally points out,

“By pegging the CFA franc to the Euro, now the African countries and their central banks are more or less submitted to the same restrictive rules in terms of inflation, public debt and public deficit.

The CFA guaranteed France’s chokehold on African economies and ensured wealth drainage to France. When the CFA was created, it served France’s interest by being born and maintained overvalued. It stopped the African nations selling competitively to Asian and Latin American nations and to trade exclusively with France. The overvaluation of the CFA kept France from having to use US dollars as the Breton Woods required which would have been very costly against the weak French franc. Controlling the monetary policies of 14 African nations (15 with Comoros) justified giving France a seat and vote at the UN Security Council.

In addition, the value of the CFA franc has been widely criticized as being too high, which many economists believe favours the urban elite of the African countries, who can buy imported manufactured goods cheaply at the expense of farmers who cannot easily export. The CFA permitted France to obtain raw materials and products from its former colonies by issuing a credit to the CFA nations.”

Ndongo states, “If you take also the level of competitiveness of African countries of the franc zone they fare the worst in the world. In West Africa, except Côte d’Ivoire all of the remaining countries are chronically in a state of trade deficit. Countries like Benin, Niger, Mali, Burkina Faso, they never recorded one year of trade surplus. They are structurally in a situation where they have to be indebted in foreign currencies. They will never be able to develop because the mechanism of the CFA franc will never allow them to be developed.”

Ndongo explains, “Because you have no monetary sovereignty. So this is the case of the CFA franc zone and that’s why there is no economic dynamism at all. Economic growth in the CFA franc zone is never triggered by internal dynamics, but just by external dynamics. For example, good terms of trade and cheaper interest rates … on international financial markets. So this is the sad story of the CFA franc. Somehow owing to these mechanisms when there are economic crises it’s much more difficult for CFA franc countries than others because the exchange rate cannot be used as a policy variable. As they follow the neoliberal rules, so public deficits are not really encouraged and the central banks generally in those circumstances follow an orthodox monetary policy, and that means that whenever there are economic crises, the main way of adjusting economically is what is called internal devaluation. That means lowering internal prices and limiting public deficits and letting the private sector enterprises go bankrupt. That is the main mechanism of adjustment in the CFA franc.”

As Landry Signe concludes, “The CFA franc zone as a whole has thus resulted in:

  1. Limited intra-regional trade, especially in Central Africa.
  2. High dependence on producing and exporting a limited number of primary commodities.
  3. A narrow industrial base.
  4. A high vulnerability to external shocks.


For example, In 1994, France devalued the CFA franc, raising the parity rate from 50 CFA francs per French franc to 100 CFA francs per French franc. CFA member countries’ governments imposed wage freezes and layoffs in the wake of the CFA devaluation, leading to widespread unrest over inaccessible goods for consumers and unmanageable price controls for suppliers.” African families lost of half their monetary savings.

Many African economists, including Senegalese economist, Demba Moussa Dembele and Togolese economist Kako Nubukpo explain that dependency on European monetary policies is a restriction to growth due to a hyper-fixation on inflation.

Protests against the secrecy, repression and use of the CFA and for its abolition has historically existed and is growing since 2015/2016. In 2018, seven artists from 10 countries released the rap song “7 minutes against the CFA franc” to drum up popular support for dumping the currency.

As Landry reports, “Large numbers of unemployed youth throughout sub-Saharan Africa—which may reach over 350 million over the next two decades—are often the loudest opponents of the CFA zone. Other pro-democracy movements, like Y’en a Marre in Senegal and Le Balai Citoyen in Burkina Faso, consider the dismantling of the CFA zone as essential to their campaigns to reform their countries’ respective governments. Other protests have included Kemi Seba, the Benin-born French activist who was charged with burning CFA notes in Senegal before being deported.”

In 2020, 66% of the Togolese people polled believed the CFA existed to benefit French interests and should be abolished. The Senegalese slogan “France Dégage” became a West African rallying cry for the French to be transparent and to withdraw, “walk” away from the West and Central African monetary system they enforced. Resentment has also been fueled by the presence of French military troops in the Sahel desert.

Chad’s President Idriss Debby said back in 2015 that the CFA was pulling African economies down and that the “time has come to cut the cordon that prevent Africa to develop.” He called for a restructuring of the currency in order to “enable African countries which are still using it to develop.”

Nigerian President, Muhammadu Buhari has been demanding, since 2017, a divorce plan from the French treasury of the eight West African countries that use the CFA franc. The recent protests are Pan-African and popular.

Abolition of the CFA and new currencies are necessary for financial sovereignty.

It is important to note that for five decades Senegalese & other Africans resisted the use of French currency and previously had mixed currencies including cowries from the Indian Ocean. The French utilized the military to force the use of the French currency only. They also imposed taxes to be paid in French currency which also forced the use of French currency.

Two years after independence, Guinea refused the French currency and produced their own currency. France launched a military operation, and the French secret service sabotaged the economy by flooding the market with counterfeit notes. Guinea still has not economically recovered since then.

Togo in the 60’s had a leader trained at the London School of Economics, Sylvanus Olympio, who was about to launch the country’s own currency and diversify trade partners when he was assassinated.

In 2011, France used the Central West African Bank to place a financial embargo against Ivory Coast and bombed the Presidential palace to install its candidate.There were also attempts to challenge France in the 1970’s and the 1990’s. France has engaged in over forty interventions in the CFA countries since “political independence”.

Solutions for change in currency

On December 22nd, 2019, due to political and grassroots pressure, it was announced jointly by France and the Ivory Coast that the CFA in West Africa , not Central Africa would be replaced by a currency to be called Eco.

The Eco has not been implemented due to legal, technical and political problems. It is tracked for implementation in 2027. The Eco would still be pegged to the Euro, and require European fiscal restraints. It would not require 50% of the reserves be kept with the French Treasury but France would keep its role as guarantor of convertibility of the Eco like the CFA. An indirect form of control by the Banque of France and the French treasury would exist with France requiring information about the management of reserves and if French government debt securities were purchased. MMT economists, like Djongo correctly point put that this “reform” or mutation does not represent significant social change to serve African people. It has been described as “window dressing”.

In 2019, the French Minister of Affairs issued a report that 49% of french companies operating in the CFA zone consider it a favorable place for profits now and in the future; and the same report predicted that even 60 years from now the CFA should not be abandoned but just reformed even under a different name.It should be noted that the announcement of the Eco was made after Italy criticized France for its monetary policies in Africa. Luigi Di Maio, Italy’s former deputy prime minister and minister of foreign affairs at the time, revived the controversy about the role of the CFA franc on Africa’s development with a statement, “France is one of those countries that by printing money for 14 African states prevents their economic development and contributes to the fact that the refugees leave and then die in the sea or arrive on our coasts.” In response, France expelled the Italian ambassador.

There are two macroeconomic proposals for change. The national exit and the pan-African exit. African nations as Ndongo clarifies, “could exit the CFA franc on a national basis. That means Senegal would say, ‘I want my own national currency’ and so I’m exiting the CFA franc. This is the path followed by Guinea, Mauritania, and Madagascar. And legally speaking, it [would be] very easy. The Senegalese government would just have to notify the West African monetary union of this decision, and in six months they could have their own national currency.”

But it’s difficult because if you go alone, you don’t know what consequences you could face from France. French sanctions, embargos, political isolation, military operations and assassinations have caused great disruptions and poverty to places like Guinea and Mali. Mali rejoined after exiting.

The Pan – African exit means “instead of African countries trying to initially have their own currency, they say, ‘we no longer need France’ France could [then leave] the CFA franc system.”

Ndongo continues, “With regard to the issue of how to get out of the monetary status quo, there are in my opinion, four different points of view. First, there is the perspective I call symbolic reformism, which consists [of] touching only the visible systems of monetary coloniality without touching the fundamentals of the CFA franc system. This includes proposals such as changing the name of the CFA franc, having banknotes and coins manufactured outside of France, and even further reducing the deposit rate of foreign exchange reserves at the French treasury. Emmanuel Macron, for example, made this type of proposal, and he even suggested that he was open to expanding the CFA franc zone to a country like Ghana.”

In other words, France is seeking to expand its empire by adding African countries not currently utilizing the CFA.

The approach most favored by Ndongo is: “sovereign abolitionism that is an exit from the CFA franc that breaks with the neoliberal model of economic integration and that strengthens the sovereignty of individual countries and also the sovereignty of [countries] collectively. If we put aside the political criticism of the CFA franc, the real economic criticism is that the CFA zone must not exist because it has no economic justification. It is not a so called ‘optimal monetary zone.’ Each country must have its own national currency because economic fundamentals, levels of development and productive dynamisms are not the same. But saying that does not mean that we cannot have systems of solidarity between African countries.”

Ndongo perceptively speaks of “solidarity national currencies. Concretely, that means that each country has its own national currency with its national central bank. The exchange rate parity is determined according to the fundamentals of each country, and countries have a common payment system. Their currencies are linked by a fixed but adjustable parity to a common unit of account, and also there is solidarity in the management of foreign currency reserves. Finally, there are common policies to ensure energy and food self-sufficiency, because in the ECOWAS zone energy and food products represent between 25-60% of the value of imports, depending on the country.”

Ndongo explains, “The advantage of this option… is that it makes it possible to reconcile macroeconomic flexibility at the national level, that means the possibility to use the exchange rate as an instrument of adjustment, and at the same time to have solidarity [between] African countries. This option also helps break the Anglophone, Francophone, and Lusophone divide, [which] is a legacy of colonialism. “

The other two viewpoints criticized by Ndongo include, a “proposal of [basing] the exchange rate of the CFA zone on a basket of currencies, but the problem with this perspective is that it is simply unrealistic because it ignores the functioning of the CFA zone. Exchange rate flexibility is not an option in the CFA system because the convertibility guarantee is offered at a fixed exchange rate and in the currency of the guaranteeing authority. Many people who claim to be experts and moderate [still don’t] understand that the demand for flexibility is incompatible with the maintenance of French guardianship; it is one or the other.”

Neoliberalism abolitionism is an exit from the CFA franc that follows the neoliberal monetary integration model. It is a ‘eurozone model.’ There are countries in West Africa who want to be part of the single currency project of the ECOWAS (Economic Community of West African States), a single currency project for West Africa. Sharing the same currency is not justified among ECOWAS countries, owing to a number of factors, like for example Nigeria’s disproportionate weight. Nigeria accounts for at least 70% of West African GDP. [As well], there are differences in economic specialization. Nigeria is an oil producer and exporter, whereas, you will find in West Africa at least nine countries which are net oil importers. There is also the fact that economic cycles are not synchronous in West Africa and the level of inter-ECOWAS trade is very low. All of these elements point to the fact that a single currency is premature and not justified economically in West Africa. We have to also say that there is no planned federal fiscal mechanism, but rather, limitations on public debt and deficits… That means, in case of economic crisis, countries in this currency union would only have the option of so called internal devaluation [via] the lowering of internal prices, which often comes to austerity policies and the growth of unemployment.”

Digital currencies and the role of China are also two factors that may impact the future of the CFA zones. As reported by MERIC:

“China’s presence in countries like Senegal and Côte d’Ivoire is growing rapidly. …Where in 2000 France was the number one exporter to all of its African former colonies, by 2017 it retained this status in only three…Chinese lending to these countries increased 332 percent in 2010 – 2017 compared to 2000 – 2009, and contracts awarded to Chinese firms trebled in value in the same period – with Chinese contractors taking on high-profile projects like the Soubré dam in Côte d’Ivoire…This economic emergence is backed by a concerted Beijing push to deepen China’s footprint in Francophone West Africa, centring on Senegal as ‘the gateway to West Africa’ (西非门户). Xi visited the country in 2018, baptising it a Comprehensive Strategic Partner and the first West African state to join the BRI (all bar Benin have followed suit). Beijing has cultivated Senegal with gifts – including an arena for the national sport and a Museum of Black Civilisations – and selected it as the first Francophone and West African country to host the FOCAC Summit (to be held in Dakar in 2021). Chinese analysts expect this to pave the way for a deeper penetration of Francophone West Africa. Indeed, an important development is the number of Chinese migrants bypassing French altogether to conduct their business in Bambara, Wolof, and other African languages. With the Beijing Foreign Studies University expanding its range of African languages, this trend is not limited to the informal level – and may emerge as a valuable soft power tool…China’s emergence in West Africa directly challenges French economic interests. Chinese companies have moved into sectors long dominated by French players: civil engineering, extractives, telecoms, ports. French national champions – Vinci, Eiffage, Orange, Bouygues, Total, Areva, Alstom – must now go toe-to-toe with Beijing’s giants…”

As researched by doctorate Che, “In 2013, China launched the ‘One Belt One Road’ (also known as the ‘Belt and Road’ or ‘New Silk Road’) Initiative, the most ambitious infrastructure investment project in history, which is designed to facilitate ‘going global’ by connecting Asia, Europe, and Africa. Since the adoption of the ‘go out’ policy, even France’s historical sphere of influence in Africa, particularly the Franc Zone, has experienced a surge in Chinese trade, grants, loans, and investments. As of 2017, according to UN international trade data for goods (see table below), China had overtaken France as the number one source of imports for a number of Franc Zone countries, namely Burkina Faso, Cameroon, Côte d’Ivoire, and Togo, and occupied second spot behind France in Mali and Senegal.”

Fanny Pigeaud and Ndongo Samba Sylla conclude that, “in all of the countries where the CFA and Comoros francs circulate, the underdevelopment of human potential and productivities is the norm.” As understood by former President of Ghana, Kwame Nkrumah, assassinated former President of Burkina Faso, Thomas Sankara, and assasinated first Prime minister of the Republic of the Congo, Patrice Lumumba, independent financing and development can not take place without an independent currency.

Sources:

Africa’s Last Colonial Currency, the CFA Franc Story | Ndongo Samba Sylla & Fanny Pigeaud

Monetary imperialism in Francophone Africa – an interview with Ndongo Samba Sylla

Background Information Study Guide to the Fabric of Reform, International Monetary Fund (IMF)

Will the ‘ECO’ replace the CFA franc? | Al Jazeera

West Africa renames CFA franc but keeps it pegged to euro | Reuters

West African countries change currency, shed French ties | Cindi Cook

Africa Report: The Perilous Journey to a single West African Currency

West African CFA Franc Reform: What’s Changing in 2020 | Africa Report

How the France-backed African CFA franc works as an enabler and barrier to development | Landry Signe

Fighting Monetary Colonialism With Open Source Code | Alex Gladstein

The African Currency at the Center of a European Dispute | New York Times

China in Francophone West Africa: A challenge to Paris by Mercator Institute for China Studies (MERICS)

China’s Rise in the African Franc Zone and France’s Containment Policy | Afa’anwi Ma’abo Che

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MMT Forum: Background Reading

In advance of our upcoming forum on Modern Monetary Theory (MMT) this Sunday, October 3rd, our panelists have assembled a helpful list of background materials to ground your understanding of MMT before our discussion. While Voices for New Democracy has published a number of pieces relating to MMT (here, here, here, and here), these additional resources offer further insight and breadth.

One week after our MMT forum, we will also host a follow-up discussion on Sunday, October 10th at 7pm ET / 4pm PT. Use this link to join the conversation.

Learning styles are different.  

MMT has resources for any style.

Videos

  1. Stephanie Kelton’s TED Talk – (14 minutes – new as of Sept. ‘21, includes her recommended resources)
  2. The Basics of Modern Money (6:30 minutes)
  3. Demystifying Modern Monetary Theory with Bill Mitchell (22 minutes)
  4. Kelton on NPR’s Marketplace – (2:30 minutes)

Articles

  1. Learn to Love Trillion-Dollar Deficits, Stephanie Kelton, New York Times
  2. MMT Basics, Real Progressives Collection

Podcasts

  1. The MMT Podcast with Patricia Pino and Christian Reilly
  2. Macro N Cheese with Steve Grumbine (Real Progressives)

Websites

  1. Modern Money Network
  2. Public Banking Institute
  3. Wall St. On Parade
  4. Democracy Collaborative

Books

  1. The Deficit Myth by Stephanie Kelton
  2. The Case for a Job Guarantee by Pavlina Tcherneva
  3. Macroeconomics by William Mitchell, Randall Wray, Martin Watt
  4. Debt: The First 5,000 Years by David Graeber
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Forum: What’s The Hype Around Modern Monetary Theory (MMT)?

Join Voices for New Democracy on October 3 for our next forum discussing Modern Monetary Theory (MMT). Our panel will explore how governments pay for our needs; whether (and how) federal deficits and national debt matter; how the U.S. dollar affects the global economy. Ultimately, we will seek to answer whether MMT offers a path fo build a people’s economy, or if its insights represent a new form of imperialism.

Join us on Sunday, October 3, at 4pm PT / 7pm ET by clicking this link.

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Tom Clark Responds to “The Dollar as the World’s Reserve Currency”

| Tom Clark |

In this piece, Tom Clark responds to Dennis Torigoe’s recent article, “The Dollar as the World’s Reserve Currency.”

I’m a big Dennis Torigoe fan.  As I told him at the 40th Anniversary event, having never met him before, I miss his writings from the Worker’s Viewpoint days and am very glad to see him still at it after all these years.  His response about Walden Bello last winter was very useful and enlightening.  And, as I commented on the Voices for New Democracy site, I do appreciate Dennis’ timely information about SWIFT, one of the ways the US exercises its hegemony, and INTREX, a potential remedy. He is still an authority in my view.  I’ve thought that we should invite him to present to our Finance Group on how he thinks about financial and economic issues and what his suggestions are for how we should think about them.

So it is with all due respect that I say that I found Dennis’ explanation of Modern Monetary Theory (MMT) to be vague and unsubstantial, and his conclusion about reserve currencies misplaced.  

In his article, he mentions the name Wynne Godley. What he didn’t mention, and might have, is the substance of what that economist’s work is about.  As laid out in Chapter 2 of The Deficit Myth, Godley demonstrated the principle of ‘sectoral balances.’  Simply put, as author Kelton does, the government’s red ink (the deficit) is the non-government’s black ink (a surplus).  Or, more precisely, there is a ‘penny-to-penny’ relationship between the amount of the government’s ‘debt,’ as we so misleadingly call it, and the amount of the surplus held by the non-government sector (what you, me, the business community, the Chinese etc., hold onto in our wallets, bank accounts, 401(k)s etc.) as assets, and didn’t pay in taxes.  As Godley showed, this accounting is a fact, not a theory, and decisively exposes the myth that the national debt is somehow a burden to our descendants, any more than the massive deficits from WWII were a burden to us.

In fact, there was a recent Twitter exchange where someone asked about exactly what [Signe Waller Foxworth] wrote here and what was in Dennis’ article:  Doesn’t MMT get used to maintain US hegemony over the world financial system?  The answer is that framing it that way is backwards:  The dollar acts as the world’s reserve currency because the US is an imperialist power and has the military and political clout to enforce its culture onto other players.  In other words, the dollar’s status as reserve currency is a result, not a cause, of US imperialism.  Of course they use monetary operations (the accurate description of which is the basis for MMT) to further their domination; it’s what we used to call ‘cultural hegemony,’ and part of the ‘code of capital,’ as we have called it more recently.  But the work of Fahdel KaboubLua Kamal YuilleNdongo Samba Sylla and many others demonstrate how the MMT lens and the concept of monetary sovereignty can be used by progressive/revolutionary movements to improve the lives of their constituents as well as further expose the aggressive, oppressive roles played by the US and their neoliberal allies. 

To say one more thing, since you mention military spending.  As we all know the US military budget is nearly 3 quarters of a trillion dollars per year.  But notice that the Dems infrastructure and rescue proposals are for $6T total over 10 years, in other words about $.6T/year, comparable to the military expense.  What the MMT folk say is that we have enough room to do both, at least for a while. The MMT proposition is that there is no need to ‘pay for’ the Green New Deal, Medicare for All, education, childcare, reparations etc. by cutting the military budget or anything else.  Of course doing both seems wasteful and leaves in place an aggressive, damaging institution that we all hate.  (I say we can work on that problem as we go.)  But isn’t it worth it to get the good stuff that we really have to have and to highlight that possibility to those we work with?  I think so.

The point is that believing that we must first cut things like military spending to ‘pay for’ the social programs we know are so acutely necessary, is to swallow the ‘Deficit Myth,’ to accept that the US government has to ‘find’ the money it spends just like households, businesses and local governments must.  It’s just not so.
So the question is larger than, ‘how do we stop so much military spending?’  It’s ‘how do we get people the things they need?’ The MMT lens says we do that by writing and passing budgets that fund the programs we want, at least initially no matter what happens with the military budget.  Let’s do that and then the democratic will of the people we have established by working with everyone who will — what I think Steve means by ‘dual power’ — can decide later what best to fund for the long term, guns or butter, to use the old phrase.  The issue is getting our (small-d) democratic foot further in the door of this appropriations/spending process, using what ‘dual-power’ we can muster, not slaying old dragons no matter how righteous and right we are about how monstrous they are.   

Agree or disagree, I hope this is useful. Again, thanks for your response to my vids about the ongoing mainstreaming of MMT.

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Signe Waller Foxworth Responds to “The Dollar as the World’s Reserve Currency”

| Signe Waller Foxworth, PhD |

In this piece, Signe Waller Foxworth responds to Dennis Torigoe’s recent article, “The Dollar as the World’s Reserve Currency.”

Thanks to Dennis Torigoe for a very informative piece in Voices for New Democracy about the privileged position the U.S. has in global finance due to the acceptance of the dollar as the world’s reserve currency. I am wondering about the relationship between Modern Monetary Theory (MMT), that has captured the enthusiasm of many of us, and the sovereign role of the dollar in global finance. 

We are excited about MMT because it exposes the myth of deficit spending and describes the actual working of the economy. MMT shows the deceitfulness of rationalizing the government’s failure to provide for the basic needs of the people with excuses like we don’t have the money for this or we would have to raise taxes to pay for that. These rationalizations are false because the U.S. Government is the sole currency issuer and creates fiat money by spending it into existence, a feat none of us can accomplish, at least legally. It is no more difficult to find the money for universal health care, housing, living wages, education, immigration reform and addressing environmental destruction and climate catastrophe than it is to find the money for bombs, drones, guns, corporate bailouts and aid to foreign countries that are human rights abusers. The failure to provide a decent living standard for its population is exposed as due to a failure of political will and moral values, not a shortage of money. MMT opens the door to a more democratic process of managing the U.S. economy.

What I find challenging is what is precisely the relationship between MMT and the international financial arrangements that lead to U.S. dominance over other nations. The sovereign dollar plays a major, if not decisive, role in promoting U.S. imperialism. Could we, or would we even want to, create a paradise in the U.S. by trampling the rest of the world to death with imperialistic and financial action afforded by our privileged position in the global financial system? The relationship between MMT, with its potential benefits toward democratizing our national life, and the global financial system that fosters U.S. imperialism challenges our thinking in the fields of Economics and Ethics.  Could we (is it even economically feasible) or would we want to (is it even ethically justifiable to) utilize the tools of MMT domestically to fund education, housing, living wages, immigration reform, universal health care and avoiding the worst climate catastrophes if the US sovereign position in global finance continues to allow us the latitude to address Americans’ needs by immiserating other peoples?

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Truth & Reconciliation in Greensboro

| Nelson & Joyce Johnson |

SOME UNDERGIRDING VALUES, ASSUMPTIONS AND PROCESSES RELATED TO FORGING A NORTH CAROLINA TRUTH, JUSTICE AND RECONCILIATION COMMISSION (TJRC)

  1. Introduction and Sketch of the Vision and Basic Plan

Every significant social undertaking usually has unstated values, assumptions and strategic objectives related to that undertaking.  In this document we will sketch out some of those values, assumptions and strategic objectives as we currently see them for exploration and further refinement.  This is a vital step as we strive to build on the Greensboro Truth and Reconciliation Commission (TRC) initiative to establish a North Carolina Truth, Justice and Reconciliation Commission (TJRC). You will notice that we have added the word “justice” to this emerging North Carolina statewide process. 

Our country is trapped in a web of false or terribly distorted and contradictory historical narratives. Against this background, there is a growing consciousness of the need for some kind of truth seeking and justice making process in our nation.  In fact, there has been over fifty (50) calls for and/or initiatives launched in recent years for truth processes.  These include Rep. Barber Lee’s call for Congress to create a Federal Truth, Justice and Reconciliation Commission (TJR).  Also, it is becoming increasingly clear that the nation cannot long endure without a broader and more truthful understanding of its history and a wiliness to both own and creatively engage that history so as to heal the wounds and repair the wrongs of our yesterdays.  This is necessary if we are to have better tomorrows.  In a real sense, nothing less than our personal futures and the future of the entire nation is at stake. 

The NC-TJRC is envisioned as an ultra-inclusive process. That is, we want to reach a significant slice of the racial, economic, gender, rural, urban and ideological diversities within our state.  While all the diversities are included, there will be a preference for the most marginalized, abused, and neglected, including an emphasis on undervalued and underpaid workers.  

The rationale of working with all of these diversities is to touch the connective tissue of the common humanity in each of these components of our state’s population.   In some religious traditions this is understood as touching the image of God in each person. This view is, understandably, not shared by everyone.  Another way of capturing the same point is to raise the question: Can people (humans) change?  If the answer is affirmative, the follow-up question is:  What are the conditions conducive to changing in positive ways?  And, a related question is: What is the potential of creating those conditions on a scale sufficient to bring about a meaningful measure of positive moral/social/economic transformation? 

In this paper, we will outline significant elements of a process and name several key steps necessary to put the vision of a NC- TJRC in play.  Before we go further, however, we want to express our sincere gratitude for all people within the family and close allies, scattered across the nation for your support of the long, difficult struggle for a measure of justice in Greensboro, including the process that brought into being the nation’s first Truth and Reconciliation Commission (TRC). 

  1. The Objective Conditions Are Ripe and Crying Out for Change

It is difficult to see how the nation can continue in its current mode and direction without descending deeper into more devastating and violent division and conflict.  So, the more focused question is not whether conditions are ripe for change, as we are already changing, but rather, what kind of change. The George Floyd murder and the resultant explosion of the Black Lives Matter Movement, the 2020 elections and the January 6, 2021 insurrection at the nation’s capital, coupled with waves of state level voter suppressions laws designed to radically reduce the Black/Brown vote all speak to the objective conditions encasing and weakening our fragile and flawed democratic republic.  These conditions and the great wealth-inequalities leave the nation very unstable and, perhaps, more divided than it has been since the Civil War period. 

Given the current polarization and evolving conditions, again, the question is not whether the objective conditions are ripe for change but rather in what direction the nation change will.  We believe, under the current conditions, that a high quality Truth, Justice and Reconciliation Commission (TJRC) in one mid-sized, southern state (10 million people) can have significant impact on the character and quality of national change going forward. It is our hope that we can contribute to a genuinely transformative national “Truth, Justice and Reconciliation” momentum by modeling such a genuine TJRC process in North Carolina.

  1. The NC-TJRC Must Cultivate a Deep, Respectful Atmosphere of Mutual Listening, Mutual Speaking, and Mutual Benefits

Cultivating an atmosphere of deep, respectful listening and speaking will require a good bit of advance, patient, one on one and small group work (initially within groups that roughly share essentially the same ideological tendencies).  One on one and small group discussions will help to establish the essential ground-work (a particular form of training) for growth into deeper discussions and greater unity between the broad diversities of peoples in the state.  The point here is to avoid, early in the process, heated arguments between different social/economic/gender and racial groups that cause the emphasis to shift from understanding each other to winning the argument.  

Also, if the NC-TJRC process is to work, we cannot over emphasize that there must be mutual benefits for all parties, especially black and brown people, the poor in general, with an emphasis on poor whites. Tragically, so many white people are captive of the ideology of white supremacy and who tend to see benefits for black and brown people as opposed to their interest.   Therefore, we must avoid the zero sum win/lose framework that is built into our current national and cultural.

Even those who “lose” financially (the rich) will win in other ways; we know it is not likely that the majority of the upper economic class will agree with this perspective.  However, disagreement with this perspective, does not make it untrue.  After all, what does it ultimately profit a few people to gain a lot of wealth (stuff and things) but lose the nation and what’s left of one’s humanity, i.e. living outside of a beloved framework (and in fear of being exposed and becoming a target).  The details of how to structure these conversations will vary, but all will require deep, mutual, respectful speaking and listening with mutual benefits promised for all.  

  1. We Must Forge a Sufficient Body of Agreed upon Historical Truths (Community Truths) That Contributed to the Accumulated Historical Wrongs and the Currently Lived Confusion and Injustices

This is where the rubber meets the road.  Given our national history, there will necessarily be conflicting narratives of hardships, injuries, wrongs, who to blame, etc.   A whole world of misinformation, disinformation, false information, confusing information and painful information will flow from these discussions.  Such discussions can be both gut-wrenching but are also absolutely necessary.  Truth is often bitter.  These discussions will not only reveal unspoken truths, but will also be partly therapeutic as the emotional trauma is deeper and more enduring than most of us realize.  Engaging these discussions across the state will require patience, tolerance and persistence.   This will be an extended exercise in deep listening and respectful speaking that will involve sorting out, reframing, re-contextualizing, forgiving and forging alternative narratives.

In the course of these discussions, the injuries, damage, and pain will become clearer.   Although, we are in a period Dr. King characterized as the “fierce urgency of now” yet, we cannot rush the process. We must take the time necessary.  This is how people grow into the process and thereby help to forge a body of acknowledged “community truths.”  We envision a North Carolina Truth, Justice and Reconciliation Commission (TJRC) of 11-15 people. We will strive to attract people with integrity and sensitivity.  We envision that the commissioners will bring professional gifts and expertise with a range of life experiences. 

Further, most of the commissioners will be from North Carolina, with no more than three from outside of North Carolina.    Ideally, there will be at least one commissioner from each of the geographic sites in the state. The TJRC will schedule public hearings across the state that will provide an opportunity for Commissioners to hear and respectfully pose inviting questions to those testifying, creating space for elaboration at the public hearings.

  1. The Limitations of TJR Processes & What It Takes to Repair Historical Wrongs

It must be acknowledged that all historical wrongs cannot be corrected, even with a good NC-TJRC or a goof national TJRC.   However, this should never become a reason for not doing the best we can. The “best we can” has the possibility of helping to bend the moral arc and hopefully contribute to setting our state and nation on a different course.  

Over the years, we in Greensboro have played a significant part in helping to build a budding movement infrastructure in North Carolina.  It will take ramping up and connecting the range of social justice organizing work already being done in the state, as in the Fight for 15, the Poor People’s Campaign, plus local and state police, environmental, educational, housing equity, and other initiatives seeking justice. We are challenged, together with others, to help these struggles “walk towards each other”.   Both quality and size of these connected struggles cause them to become transformative.  Hopefully the growth of this trend in North Carolina will inspire others across the nation to intensify forging a range of positive, creative initiatives of which TRJC (s) is one component, but an essential component.  

All of the elaboration in the previous paragraphs is to say, we have no illusions that a state or national TJRC will alone change the direction of the nation.  At the same time, we believe that a greater measure of shared truth (and love) is necessary to counter the rapidly growing trend of falsehood, confusion, manipulation, fear and division resulting in a growing trend towards greater force and violence.  That is why we are happy to partner with the Poor People Campaigns (PPC), and we will be reaching out to religious, civic, labor and neighborhood organization as well as youth/student groups, street groups (that some call gangs) and others who agree with our declaration of intent; our hope is to enlist them in the NC-TJRC process.  For us, this is a major initiative that we likely would not be undertaking except for the work in Greensboro, especially the labor movement and the Greensboro TRC-related work with which so many in the Family have been a part. 

It is becoming increasingly clear that white supremacy is burned deep into the culture of the United States. In this context, we join with the spirit of Phil [Thompson]’s paper on Economic Democracy which states

Going back to Abraham Lincoln, his greatest worry on the heels of the Civil War was that the majority of white citizens did not want to be part of the same community and polity, and certainly not put on an equal footing with black people.  This is still the main alienation in US society.  Economic inequality and government unaccountability, in the eyes of many whites, are the result of unfair advantages handed out to people of color. The pathway to changing the economy and government is to unite white Americans, but unity necessitates overcoming this racial resentment which is so strong that it threatens the foundation of the democracy…

The starting point for building unity across race, in our view, is changing white America’s image of black people as wanting to take material things away from white people.  Black, and other people of color, need to advocate a broadly appealing economic platform to dispute that image.  A forward-looking economic platform could meet white workers where they currently are and help move them away from a zero-sum calculation that they have nothing material to gain by uniting with people of color. But this is only a first step; an economic platform will not fully remove the anxiety many whites feel about no longer being a demographic majority with the ability to dominate society.

The “white anxiety” of which Phil speaks will be partly engaged by a NC-TJRC process that involves “deep listening and speaking” in an authentic truth process. 

  1. The Projected Issue Focus Areas and Geographical Focus Areas  

The TJRC’s Declaration of Intent lists six areas for exploration. They are:

  • The historical and current abuse of police powers and judicial processes.
  • The historical and current blocks and impediments to financial security and wealth creation.
  • The historical and current blocks and impediments to adequate housing.
  • The historical and current blocks and impediments to quality physical and mental healthcare.
  • The historical and current blocks and impediments to voting and full participation in the democratic process.
  • The disparate impact of climate change and other ecological factors on people of color and the poor. 

These focus areas might change based on further exploration and discussion with local geographical areas around the state.  The State of North Carolina is divided into three broad regions:

  • The Coastal Plains:  This is the eastern part of the state.  It was and remains the major farming area in the state.  The land is rich and flat. This is the region where the large slave holding plantations existed.  For years before the Civil War and for some 75 years after the Civil war the large plantation and former slave owners ruled the state government. This is also the area (the NC Black Belt) where the largest percentage of black people in the state still live
  • The Piedmont Region:  This is the middle part of the state going from east to west.   This region is where the major urban areas of the state are located.  These urban areas include Raleigh, the state’s capital and the second largest city in the state; Charlotte, the largest city in the state, Greensboro the third largest city in the state, Durham the fourth largest city in the state, Winston-Salem, the fifth largest city in the state. The largest universities and colleges are also located in the Piedmont Region. These cities grew up during the industrial period.  Textiles, furniture, and paper processing plants were some of the major industries that grew up in this area. Many of these industries, particularly the textiles, have moved to foreign countries in recent years.
  • The Mountain Region:  This is the western most part of the state.  It is primarily a mountain range. It is the poorest of the three regions. It is made up of small towns and villages with small farms.  People in the region rely on industries linked to natural resources of the region.  These include farming, mining, forestry, manufacturing and tourism. Asheville is the largest city in the western region. The ethnic makeup of the mountain region is 89.9% white; 9% Latino (Hispanic); and less than 1% Black (African-American). 

Our current plan calls for identifying two sites in each of the state’s three regions.  We will select the sites based on at least four criteria:

  • The desire of a sufficient core of diverse leadership, especially grassroots leadership, to sponsor and be part of a statewide TJRC process; 
  • Commitment of local leaders to help seek financial and human resources to undertake the project; 
  • Defining one of the six issue focus areas (listed in the Declaration) or identifying a different focus area that those committed to the NC-TJRC process are willing to assume as their geographic area of focus.
  • A good fit into the projected rural/urban divide, the black/white indigenous divide and of course a good fit into the regional divides. 

The geographical sites to be chosen should reflect a good cross-section of the North Carolina population.  If our resources allow and, if there is a groundswell of support to do so, we will expand from six to no more than twelve (12) geographical sites, i.e. up to four (4) sites in each of the state’s three geographical regions. As the NC-TJRC matures, these sites will be increasingly connected, effectively reflecting a statewide process.  

  1. Raising the Money and Putting Together the Team
  • Fund Raising: We believe it will take about $8 to $10 million dollars over the life of the project that we project will take about four (4) years.  We have already raised over $1 million.  We have been working with others to forge an effective fundraising team that is working hard to raise the necessary funds.  Once the NC-TJRC is officially and publicly launched, we believe there will be greater interest and more funds made available.   
  • The Staff:  Initially, (by September) we plan to have new full-time staff of seven people. Within six months that staff will likely increase to 12 people.  Also, we anticipate both college interns and full time volunteers being recruited for this work. If necessary and, if the funding allows, we may employ several part-time people.  We will push, together with others, to organize, organize, and organize with on the ground training, training and more training. We are putting special emphasis on quickly growing a top-notch communication machine (capacity) as this will be essential to growing and holding the expanding process together.   
  • The Kitchen Cabinet:  We have put together a diverse Kitchen Cabinet of 14 people that we hope to consult with on a regular basis (as needed).
  • The National Advisory Committee:  We project a national advisory committee of about forty (40) people that will meet virtually or in person twice a year.  We are projecting that twenty-five (25) of its members will be from North Carolina and fifteen (15) from outside of North Carolina.  All of the members will be available for consultation between its formal meetings, as needed. 
  1. Building from the “Bottom Up” and from “the Center Out”

Truth and Justices processes cannot and will not work if they are not deeply rooted in the grassroots, i.e. the people most damaged and wounded, the people most neglected and devalued.    This is one of the lessons learned from South Africa.  The South African TRC was not a failure, but it was also not a glowing success.  It probably did prevent a South African Civil War; that in itself was significant.   As we have learned from those who helped to forge the South African TRC process, there were three very interrelated, overlapping significant weaknesses.

  • First, according to those who were active in the process, it did not adequately reach out into local areas where the lion’s share of the pain and suffering was experienced by black people.  Stated differently, it was too centralized and did not reach deeply or broadly or prolonged enough into parts of the population that suffered the most. We have put a major emphasis on avoiding that mistake.  That’s what we mean by building from the bottom up and the center out.  The center is not the perspective of rich white men. The anchoring perspective is rooted in the people most the injured, abused, devalued and harmed. 
  • Second, a significant part of the white South African population did not adequately or sincerely engage in or commit to the TRC process.  This is where we think the depth of white supremacy comes into play.  Our best understanding is that white South Africans engaged in the process in a limited and pragmatic way. It probably was more about participating with a view of “getting it behind us” and with little fundamental change. The South African process seems to have done little to cause white South Africans to see deeply into themselves and their need for deep change. This is also a danger in any process that is developed in the United States, including the NC-TJRC process.   Engaging white supremacy at its roots will be very challenging, as it is has to do with touching that part of us that makes us truly human and connects us with other humans across the historical ditches of racism, nationalism, regionalism, genderism and all the other “isms” that cause one to view “surface” differences in the human family as a justification to exploit, devalue, injure and even kill others and justify it based on making certain people “the other” and inherently “less than” or just “evil.”  This is a very difficult challenge to overcome.  It does, in our humble opinion, require a greater measure of deep truth and love of humanity. 
  • Third, and very closely related to the first two, is that there was inadequate attention given to the economic sphere.   While there was a shift in political power, the deep historic and ongoing damage done in the economic sphere was not meaningfully addressed.  When we were in South African in 2007 at the invitation of the Tutu family, some of us talked with economically poor Black youth one night on a corner in Soweto. They shared their disgust at seeing whites who admitted to viciously killing Black people walk away free.  In contrast, they argued that if they stole a chicken or some food because they were hungry and impoverished, they would be given active jail sentences.  I know this is an over simplification as the economic system is international and complex, but such complexity should not stand as an excuse for evil in South Africa or the United States.  We in the U.S. must simply strive to do better. 
  1. Building Power and Forging Relationships across the State and the Forms of Power That Overcome Polarization and Produce Positive Policy Changes

A major part of the success of the NC-TJRC will be our capacity to forge positive relationships with people and organizations that are already active, i.e. organizers, researchers, scholars, and current participants in the social justice movement, etc.   

In concrete terms,  we will seek to grow positive relationships with people working in the six issue focus areas mentioned in the Delectation of Intent: the abuse of police powers and judicial processes; blocks and impediments to financial security and wealth creation; blocks and impediments to adequate housing; blocks and impediments to quality physical and mental healthcare; blocks and impediments to voting and full participation in the democratic process; the disparate impact of climate change and other ecological factors on people of color and the poor. 

In the process of doing our work, our hope is that we will de-intensify the growing polarization, grow greater “community truth” and seek expanded common ground among the diversities of people in our state, particularly the poor and excluded.  If we make progress in these areas, this will be a somewhat different kind of “people power” base. We will necessarily have to make strategic and tactical decisions, much of which will have to grow out of the process itself and is currently beyond the scope of further reflections in this document.

  1. Projected Launch of the NC-TJRC Process

We have not tried to keep it a secret that we are working towards a NC-TJRC process.  However, we have chosen not to make any formal statements about our plans.  There were and are too many loose ends.  When we make a formal public statement about the NC-TJRC, we intend to have on-boarded key staff members, a fully confirmed Advisory Committee, a committed “kitchen cabinet,” and a thoughtful plan on how to best publicly launch the process. At this point our anticipated launch date will be between August 15 and September 15th

Our launch will include a plan to reach out to a variety of individuals, organizations, and networks to inform them of the NC-TJRC process and to suggest ways they can be involved.  Some of the organizations and leaders include:

  • Statewide religious organizations and leaders
  • Statewide grassroots organizations and leaders 
  • Statewide labor unions and leaders
  • Statewide youth organizations and leaders (including student organizations and leaders)
  • Law School organizations and leaders
  • And, a network of as many local, grassroots, movement oriented organizations as we reasonably can.  

With this vision, our media and communications capacity has to be firmly in place.  We must be able to get our message out effectively and quickly. Of course, inquiries and offers to help are to be expected, and we must be prepared to respond to those in an efficient and timely manner as well.    

  1. Summary and Concluding Words on the Eminent Situation Before Us

We have set forth a bold vision, sketched out initial elements of a plan and begun the difficult journey of growing greater truth, justice, reconciliation and healing in our state. Objectively, this is building on the work in Greensboro, including the TRC, for which suffering was endured, blood was spilled, and lives taken.  If reasonably successful, we believe this initiative can be a significant contribution to the nation.  The push we are currently making would not have been possible except for the love, work and contributions of many people (the family) across the nation.  For this we are grateful.

Developing the NC-TJRC is a challenging undertaking and is likely to become more difficult in the months and years to come.  As we said earlier in this document, “It is difficult to see how the nation can continue in its current mode and direction without descending deeper into more devastating and violent division and conflict.”

We have been in weekly discussions and planning with a strategically located group of people for over a year, including the Rev. Dr. Peter Story one of the leaders of the South African TRC process. Even though some progressive strides have been made in the United States over the last year (specifically the national election), it is our humble opinion that the national crisis has continued to grow deeper and wider.  

Under the false banner that “the election was stolen”, the former president, and leader of the January 6th insurrection, is being embraced on an even deeper level by a significant slice of the US population, including the base and leadership of the Republican Party. At this moment, our elected national leadership does not seem to have a clear pathway forward to effectively rally the majority of the American people around a clear vision and steps to “save the soul of the nation, while transforming the circumstances of the people of this country.

In a sense the insurrection is on a slow burn toward the further destabilization and ultimately the destruction of the already deeply flawed democratic/economic institutions of our nation. It is not clear when the “slow burn” will swiftly expand into a raging inferno.   That is the growing danger.  In a real sense, we are in a race against time. 

The primary fuel for this burn is the ideology of white supremacy and the economic system that promotes growing poverty and wealth inequality, all of which has its particular history.   It is becoming clearer, at least for some of us, that the historical damage of white supremacy inflicted on Black people, Native American and “third world” nations has also been inflicted on white people themselves, especially poor whites.    As white people lose their numerical majority and their capacity to dominate, the false stories they have told themselves about matters, such as their greatness and goodness, are being peeled back. This is unleashing hidden trauma and openness to a range of dangerous conspiracy theories.  This is the base of the “Make America Great Again” (MAGA) movement.

As a child in grade school in the late forties and fifties (Nelson), the word slavery was not in text books that we used.  Instead, slavery was called the “peculiar institution.”  This was a form of hiding from the truth and replacing it with false narratives.   Now, a movement, an obsession, has developed to band the teaching of what is called critical race theory.  This is simply another mechanism to avoid the truth of this brutal aspect in the history of our nation.  The growing acceptance of falsehood, conspiracy theories, division, conflict and hate are parts of the slow burn.

The substance of our thinking and commitment that we have tried to put forth is this rushed document is to join in growing a process, indeed a movement in North Carolina, rooted in the truth of our tortured history but also rooted in a history of generosity, determined resistance and a deep belief in the human capacity (all humans) to change for the better. 

We invite your response and continued help.

Love, peace and blessings,

Nelson and Joyce Johnson

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At Last. Progressive Power Assets Itself.

| Steve Clark |

Clark’s essay was first published on his GlobalTalk blog.

Perhaps, I should quit being surprised by Biden’s acumen. He has a next-to-nothing Democratic majority in the Senate, and critical pieces of that majority are reluctant allies. Yet, he’s playing it like a violin.

Or, to mix metaphors, he’s playing from a deck stacked by broad, energized, progressive-driven, public opinion.

Either way and both ways, the American people seem to have found a leader who will pursue our demands.

The bi-partisan deal that Biden announced yesterday with 11 Republican Senators (enough to overcome the threat of a filibuster) has two key pieces:

First is $570 billion in new infrastructure spending (roads, bridges, water system, electric grid, broadband, etc.) with no “pay-for” restrictions. This is part of a $1.2 trillion, eight-year infrastructure investment plan. Because 11 Republicans support it, the infrastructure plan will get and win an eventual floor vote in the Senate.

Second is $2-6 trillion in additional federal allocations for childcare, education, healthcare and the green new deal (details to be decided), none of which are supported by any Republican Senators (though a few may eventually go along). Because of the filibuster rule, this family care package cannot get a floor vote in the Senate, but the same 11 Republicans (above) stood quietly, then spoke heartily of bi-partisanship (see, some of us Republicans can get things done), after Biden explained that these family care matters may be included in September’s “reconciliation bill” when the official FY 2022 Budget is approved by a simple majority vote of the Senate (thus, avoiding a filibuster).

With a summer of negotiations ahead over the actual content of these bills, plenty of time remains for political defections. It’s been less than 24 hours, and, already, some of the 11, feeling rolled by the direct linkage of the two bills, are threatening to pull out. But the threat of House progressives (supporting progressive allies in the Senate) to refuse the stand-alone infrastructure bill and, instead, put them both in reconciliation and pass it without any Republican support (and leaving the 11 hanging) may have set the deal in stone.

The decision (when final) of the 11 Republicans to go along with Biden’s deal is a concession to the political reality that the Trump era is over, and the nation will continue its political life in traditional democratic, two-party fashion, finally rebuking Reagan’s long-ago, fool-hearty assertion that government IS the problem. Going forward, they agree that government is part of the solution… and, at least as far as physical infrastructure goes, they’re putting their toes back in the water.

After the deal’s announcement, Bernie Sanders, chair of the Senate Budget Committee (that will draft and approve the specifics of the Senate’s reconciliation bill), expressed the gleeful opinion that the Senate would soon pass the “most important piece of legislation for working people in America since the 1930s.”

This deal ensures that money will flow and the economy will pick-up all next year when the midterm elections roll. This should produce a landslide for Democrats and a big haul for progressives.

But this deal is not enough, and many progressives in and out of Congress are saying as much. It is a “down payment” on the trillions that must still be spent…and, after 2022, heading into 2024, progressives will be advancing and passing additional legislation in a host of areas. Indeed, 2022 through 2028 is likely to be the most creative, active period of progressive legislative action in the history of the nation.

This week’s deal sets a basic framework for the coming social contract, but key features are still big blanks: reparations for slavery and indigenous dispossession; financial democracy and public investment; and international financial justice/opportunity for the Global South.

We’ve entered the last, fateful phase of this Fourth Turning. Now, codifying and institutionalizing programs to rectify these remaining injustices — while moving ahead with public investments in infrastructure, education, healthcare, climate justice and a federal job guarantee — is this revolution’s practical next steps.

For this, progressives have three jobs: (a) designing constructive problem-solving programs to achieve social justice and avert climate change; (b) educating and mobilizing Americans to pursue the progressive agenda; and (c) electing enlightened progressives to public office to enact our agenda.

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The Deep Roots of Anti-Asian Violence

| Kent Wong & Stewart Kwoh |

The following article was originally published in AFT Voices.

The outcry against anti-Asian violence triggered by the mass killings in Atlanta on March 16, when six Asian American women lost their lives, has ignited protests throughout the country. As we join together to denounce violence and to create a better future, we must also turn to the past to evaluate the fundamental causes that have resulted in the thousands of documented acts of anti-Asian hatred and violence, in many instances directed at Asian American women and elders. This analysis must include the long history of U.S. anti-Asian animus in the global arena.

Although Asian Americans have been an integral part of the United States since the 1850s, we have consistently been viewed as foreigners. Even Asian Americans like us, with deep, multigenerational roots in this country, are inevitably asked, “Where are you from?” We have lost count of the many times we have been complemented on speaking English without an accent, although English is our first language.

During World War II, 110,000 Americans of Japanese ancestry were forcibly removed from their homes and placed in U.S. concentration camps. No similar acts were taken against German or Italian Americans, although the United States was also at war with Germany and Italy. Even after returning to their homes and communities, Japanese Americans were subjected to racial hatred and discrimination.

The long, tragic legacy of anti-Asian violence in the United States is directly related to U.S. foreign policy in Asia. During the Vietnam War, Asian people were dehumanized. The brutal massacre of Vietnamese women and children in My Lai, Vietnam, was conducted by U.S. soldiers who viewed the Vietnamese people as less than human. The U.S. military used napalm, Agent Orange, antipersonnel weapons and massive bombings to target and kill millions of civilians, all justified through the lens of white supremacy and anti-communism.

The dehumanization of Asian people has had tragic results for Asian Americans. In 1989, five Vietnamese and Cambodian schoolchildren were shot and killed in a schoolyard in Stockton, Calif., and more than 30 people were wounded, including a teacher. The white gunman expressed hatred toward Asian immigrants and blamed them for taking jobs from native-born Americans.

In the 1980s, Japan was blamed for the demise of the U.S. auto industry. Auto workers gathered in union parking lots to smash Japanese-made automobiles, venting their anger based on the misguided belief that Japan, not U.S. corporations, was responsible for their factories shutting down. In 1982, two unemployed white auto workers in Detroit killed Chinese American Vincent Chin with a baseball bat, mistakenly believing he was Japanese. The two killers were sentenced to probation and a $3,000 fine.

Today, China has emerged on the world stage as the main economic competitor of the United States, but too many see China as the enemy. We are witnessing a new Cold War perpetrated by leaders of both Democratics and Republicans and by U.S. corporations. This new Cold War has been exacerbated during the COVID-19 pandemic. More than half a million people in the United States have died from COVID-19, more than in any other country.

The former administration refused to accept responsibility for the disgraceful failure to contain the pandemic and instead chose to blame China and Asian people. The president referred to COVID-19 as the “China Virus” and “Kung Flu” and promoted the lie that Asians were spreading the virus in the United States. This racist messaging had a direct impact on the spike in anti-Asian violence. The organization Stop AAPI Hate has documented nearly 3,800 anti-Asian incidents since the beginning of the pandemic.

The demonization of the people of Asia by the U.S. government and U.S. military has had a direct impact on the rise in anti-Asian violence throughout the country. Today’s crisis is an opportunity for Asian Americans to stand with people of conscience to demand a multi-racial democracy that the United States has never fully embraced. Asian Americans have joined in the massive protests for Black lives. We mobilized at the airport to oppose the Muslim ban and have traveled to the border to protest the separating of families. And Asian Americans are opposing new Jim Crow voting policies in Georgia and other states and defending affirmative action.

It is time to confront the history of white supremacy in this country. The United States has never confronted the legacy of slavery, lynching, mass incarceration and police violence directed against Black people. Racism is at the core of the separation of families and the caging of children at the U.S.-Mexico border, and the Muslim ban introduced by the last administration. The current attacks on voting rights are also motivated by white supremacy and intended to disenfranchise people of color. It is time to build a true multiracial democracy that represents the hopes and aspirations of the vast majority of people in this country.

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Watch: Forum on the Future of the Labor Movement

On March 14th, Voices for New Democracy hosted its first event of a new forum series with a “Forum on Labor’s Future,” featuring a panel of organizers with extensive and diverse experience in the labor movement.

Through presentations and discussion, the forum covered key questions including the historical trajectory of the labor movement, new challenges and opportunities, the relationship of labor to ongoing social justice movements, the international context, and strategies for union transformation.

Watch the full presentations and learn about the panelists below.

JOE ALVAREZ

Joe is a veteran labor leader, organization development expert, and visionary labor educator. After a 30-year history in social justice activism and labor organizing, he co-founded the Alvarez Porter Group in 2007 to help leaders and organizations work effectively toward creating a just, equitable and sustainable world.  As an organization development practitioner, Joe specializes in developing leadership in others and in helping unions and social change organizations be visionary, adaptive, and effective.

Joe is a fellow of Cornell University’s Worker Institute. He was the Northeast Regional Director of the AFL-CIO before pursuing a graduate degree in leadership and organizational development. Joe designed and co-led the AFL-CIO’s “New Alliance” program, a major state-by-state campaign to revitalize and reorganize state and local AFL-CIO bodies.  In 2000, he helped found the NY State AFL-CIO/Cornell University Union Leadership Institute, where he still teaches. Since its inception in 2013, he has been a co-designer and core faculty of the AFL-CIO’s National Labor Leadership Institute. He has taught courses in union leadership and management at U-Mass Amherst, City University of New York, and at Cornell’s School of Industrial and Labor Relations.  Joe is a consultant for SEIU’s BOLD Center, and a member of the NTL Institute for Applied Behavioral Sciences.

CAROLYN KAZDIN

Born and raised in the Bronx, New York, Carolyn Kazdin served as Representative in Brazil for the Solidarity Center, AFL-CIO from 1997 to 2005. She continued to work in Brazil for the United Steelworkers (USW) for the next 5 years, before moving to Pittsburgh, PA, to join the Strategic Campaigns department.

A graduate of the State University of New York at Buffalo, Carolyn served in the Peace Corps in Bahia, Brazil Back in the USA, she worked in government, in politics, and in the trade union movement. Carolyn worked on Capitol Hill with Congressman Bernie Sanders, and in the presidential campaigns of Reverend Jesse Jackson. In addition, she served as Legislative Director for the Amalgamated Clothing and Textile Workers Union (now UNITE HERE).

Capital is global, and labor needs to be global too. Carolyn’s work in Brazil has helped demonstrate the importance of communication, strategic planning and joint action among international labor organizations that deal with similar issues and employers. The struggle for workers’ rights and dignity for all peoples is truly global.

During her time at the Solidarity Center, Carolyn worked alongside the United Steelworkers (USW) and various Brazilian unions on multiple international campaigns. Once in Pittsburgh, this important work continued directly in the USW. Carolyn is currently retired from the United Steelworkers (USW) in the USA and Canada.

ERIC GILL

Eric Gill started work in 1976 at the Sheraton Waikiki hotel as part of CWP’s strategic organizing program in Hawaii’s unions.  An activist rank and file leader from the start, he has also served his union in various staff and elected positions over the years. Over the past 21 years, he has been elected eight times as the executive officer of UNITE HERE Local 5.  

An officer of the international union as well, Eric has played a central role in promoting combined action by local UNITE HERE affiliates in multiple cities, most notably the coordinated eight-week strike that 8000 union members in seven local unions successfully conducted against the Marriott Corporation in 2018.   

KENT WONG

Kent Wong is the director of the Labor Center at the University of California, Los Angeles where he teaches Ethnic Studies and Labor Studies. The UCLA Labor Center promotes research, teaching, and policy to advance workers’ rights.

Wong previously worked as staff attorney for the Service Employees International Union in Los Angeles. He was also the first staff attorney for Asian Americans Advancing Justice, Los Angeles. 

Kent Wong was the founding President of the Asian Pacific American Labor Alliance—the first national organization of Asian American union members and workers. He is a Vice President of the California Federation of Teachers, representing 120,000 teachers and educational workers.

Kent Wong has published more than twelve books on the labor movement, immigrant rights, and the Asian American community.  

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Commentary: On Solidarity with AAPI Communities

| Wenda Tai |

I’ve spent the last 3 days reaching out to my AAPI friends and family, responding to other non-AAPI friends, doom-scrolling through the news coverage and experiencing a traumatic cycle of emotions – sadness, grief, anger, anxiety and more ANGER.

There were some rays of hope and comfort from AAPI representatives and groups speaking up and educating the public about a history of violence and exclusion deliberately buried and distorted. What has been most upsetting for me is the deafening silence from friends and colleagues and many people in the progressive movement. Some have expressed solidarity, issuing statements and committing to
actions. We need more. Now is the time for a true united front against white supremacy and misogyny, against colonization and divide-and-conquer manipulations by the state. We need respected civil rights groups to speak up, not just the AAJC and the ADL. [Note: since this was written, many groups have put out clear and powerful solidarity messages: Poor People’s Campaign, M4BL, Racial Equity Anchor Collaborative, and the NAACP, among others.]

I heartily support Marion’s suggestions. And I applaud the observations about the racist undertone in Biden’s foreign policy toward China.

For me, the Atlanta murders hit very close to home. Not sure many of you know that I spent my teen years in Atlanta as a new immigrant. My memories of high school bullying, micro-aggressions, invisibility, and invalidation just came flooding back. Yet I am encouraged that this is now out in the open and people (Asians and non-Asians
alike) are confronting this. No more hiding because we’re forced to feel white- adjacent and presumed to have the same level of white privilege (“model minority” myth). No more hiding because we feel we don’t “count” as POC. No more hiding because we still have to deal with inter- and intra-Asian colorism and racism within each of the Asian American communities.
 
“Let’s take this opportunity to build solidarity across communities of color and ensure that AAPI voices are listened to. That we count, and are COUNTED, literally! How many official reports and research papers actually disaggregate AAPI data and statistics to get to the underlying issues and needs, instead of getting lumped together and ignored/dismissed?”

This is what I told my former boss, the director of the largest LGBTQ and HIV/AIDS advocacy organization in the Pacific Northwest yesterday and helped him edit a statement. Next, I’m going to work with the largest Community Land Trust in this area to do the same in my capacity as a board member. I hope all of us in the family do the same with the platforms we have and the organizations we work with.
 
Thank you to those who are already on it. Thank you for the thoughtful support and resource sharing. Some of us are starting to keep a tally of who’s done what – not in a negative way – as a document of AAPI movement building to take charge of our lives and futures, avenge the suffering of our ancestors and earn the respect of
future generations, to paraphrase the preamble to the M4BL Reparations Now Toolkit.

One step in many towards healing and restorative justice.