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2/15/2021

Egypt's Pandemic of Hunger. By: Yanis Iqbal

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Egypt is one among the five countries in Middle East and North Africa (MENA) most affected by hunger during the COVID-19 pandemic. Widespread hunger in Egypt follows an international pattern. The World Food Program (WFP), the branch of the United Nations (UN) responsible for delivering food assistance, expects to need to serve 138 million people in 2021 - more than ever in its 60-year history.
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The inability of the majority of countries of the world to effectively counter-act hunger is a result of decades-long neoliberal policies. These policies have either instituted import dependency or unleashed a process of export-oriented agro-industrialization, thus creating a highly unstable and deficient food regime. Egypt is not immune to these economic factors. Present-day hunger in the country is structurally situated in a pro-bourgeoisie paradigm intended to enrich the few at the expense of others.​

Economic Liberalization

The historical context for food insecurity in Egypt is provided by former President Anwar Sadat’s policy of economic liberalization, faithfully continued by Hosni Mubarak till 2011 and by Abdel Fattah Al-Sisi until today. In 1960, Egypt had a self-sufficiency ratio (domestic production in relation to consumption) for wheat of around 70%. By 1980, the self-sufficiency ratio had fallen to 23% as imports rose to massive levels. Food aid and grain imports performed two important functions for imperialist powers. First, they tightly integrated Egypt with the world market and hence exposed it to fluctuating global prices. Secondly, they paved the way for growing levels of indebtedness as access to foreign currency became a key determinant of whether a country could meet its food needs. 

In Egypt, these developments were an important part of Sadat’s decisive turn toward the U.S. through the 1970s. The 1973 war was estimated to have cost around $40 billion, and the general fiscal squeeze caused by rising food and energy imports led Sadat to seek loans from U.S. and European lenders as well as regional zones of surplus capital such as the Gulf Arab states. The latter played a decisive role in bringing Egypt into the orbit of the American empire, with Saudi Arabia, Kuwait, the UAE, and Qatar forming the Gulf Organization for the Development of Egypt (GODE) in 1976 to provide aid to Egypt. 

The condition for Gulf financial aid was the elimination of Soviet influence in Egypt (the Soviet-Egyptian Friendship Treaty was canceled in March 1976) and the implementation of a series of economic reforms prescribed by the US Treasury, IMF, and World Bank, which included an end to subsidies and a deregulation of the Egyptian pound (which would raise the cost of imports). As the Egyptian government moved to amend laws to allow repatriation of profits, free flows of capital, and attempted to lift subsidies, funds arrived from GODE.​

Impoverishment

With the arrival of neoliberalism in Cairo, the masses became increasingly poor. When they became poor, they were unable to buy food in adequate quantities. This was the natural outcome of an unending spate of privatization. In the 2000s, Egypt gained the dubious distinction of being the leader of privatization in the Arab world.  The country’s privatization program was launched as part of a Structural Adjustment Program (SAP) agreed between the Egyptian government and the World Bank and IMF in 1991. The major focus of this SAP was Law 203 of 1991, which designated 314 public sector enterprises for sale. 

By 2008, Egypt had recorded the largest number of firms privatized out of any country in the region and the highest total value of privatization ($15.7 billion since 1988). Unlike other states, in which just one or two deals made up the majority of privatization receipts, Egypt’s sell-off was wide-ranging - covering flour mills, steel factories, real estate firms, banks, hotels, and telecommunications companies.

To prepare state-owned companies for privatization, the Egyptian government terminated subsidies and ended their direct control by government ministries. In many cases, loans from international institutions were used to assist in the restructuring and upgrading of facilities prior to sale - burdening the state with debt while investors received newly retooled and modernized factories. The end result of privatization was a severe deterioration in labor rights and wages, facilitated by the growth in informal work conditions and the increasing exploitation of women in “micro” or small enterprises where minimum wage, social security, and other legal rights were not in effect. 

Informal workers make up over 63% of Egypt’s estimated 30 million employed population, according to the International Labor Organization (ILO). Egyptian officials say the sector generates nearly 40-50% of the country’s economic output. Informalization of the labor market has systematically immiserated the workers. The poverty rate rose from 25.2% in 2010/2011 to 26.3% in 2012/2013 and 27.8% in 2015, then jumped to 32.5% in 2017/2018, which means that 32.5 million Egyptians are poor according to the “national poverty line” (EGP736 per month and person, about $45). 

The World Bank pegs the poverty rate even higher, at 60% of the entire population. Inequality across regions is sharp; poverty levels in Egypt’s poorest villages are as high as 81.7%. The Severe Poverty Line also rose to 5.3% in 2015 and reached 6.2% in 2017/2018, which means that 6.2 million Egyptians - according to the national severe poverty line of 491 EGP (about US$25) per month and person - are extremely poor. ​

Agro-export Industrialization

During the COVID-19 pandemic, Egypt’s agricultural exports increased significantly. The country became the largest exporters of oranges in the world, as well as strawberries and among the largest in onions. Most of the Gulf countries lifted trade restrictions related to their import of Egyptian products. Egypt’s exports increased not due to a boom in production but because these countries were preparing for an impending crisis. This has greatly affected Egyptians’ access to goods since productivity did not increase but exports did.

The heavy focus on export crops rather than local staples is not new. Since the 2000s, rice, maize and wheat production has been pretty much stagnant. As a result, Egyptians are dependent on expensive food imports. In 2016/17, Egypt imported 12 million tons of wheat, over a million tons more than the average for the preceding 5 years. This coincided with 42% annual food price inflation, the highest for 30 years. The Egyptian Food bank, a large charity that feeds the poor, increased its “handouts” by 20%, extending their reach to “middleclass” families - an extent of the pervasiveness of food insecurity. 

In the current conjuncture, Egypt needs to move beyond the neoliberal model of agriculture which only succeeds in increasing hunger.  Liberalization, immiseration and agro-export industrialization - all of them serve to buttress the power of imperialism and facilitate the concentration of wealth in the hands of the few. While there was hope after the 2011 uprising that farmers would enjoy new freedoms and opportunities, it was not forthcoming. On the contrary, farmers have been harassed, they have seen their crops being damaged and there has been considerable police intimidation if farmers have had the courage to challenge aggression from agri-business firms. Small farmers have been bogged down in costly legal proceedings where big landowners have reclaimed land that they had lost during Gamal Abdel Nasser’s agrarian reforms in the 1950s. In addition, small farmers have had to bear the burden of increased rents and expensive farming inputs. An alternative model needs to be urgently established to replace Egypt’s current agricultural architecture which will end up in a seemingly endless “hunger pandemic”. ​

​About the Author:
​Yanis Iqbal is an independent researcher and freelance writer based in Aligarh, India and can be contacted at yanisiqbal@gmail.com. His articles have been published in the USA, UK, Canada, Australia, New Zealand, India and several countries of Latin America.

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2/13/2021

Elections in Ecuador - The Fight Against Neoliberalism. By: Yanis Iqbal

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Ecuador's leftist candidate Andrés Arauz has won the first round of the country's presidential elections held on 7 February, 2021, garnering 31.5% of the vote. An economist and former minister in socialist president Rafael Correa’s government, he has led the ticket for the Union for Hope coalition - what was Alianza País headed by Correa before the party split in 2017.

​However, it appears that Arauz did not win by enough of a margin to avoid a second runoff, provisionally scheduled for April 11, 2021. The election has been marred by allegations of voter suppression, as Ecuadorians were forced to wait for hours in uncharacteristically long polling lines, especially in areas known to support Arauz.

Political Arena

Arauz faced two politicians - Guillermo Lasso and Yaku Pérez Guartambel. According to a quick count by the National Electoral Council (CNE), Pérez and Lasso took 20.04% and 19.97% of the votes, respectively. 

Lasso is the candidate for the conservative alliance “Creating Opportunities” (CREO). He is also a member of Opus Dei, banker and businessman. A true representative of the Ecuadorian oligarchy, he served as a minister of economy in the Jamil Mahuad government in 1999, which fell in the winter of 2000 at the hands of 2 million peasants and poor workers who took over the streets in protest against dollarization. 
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Pérez is the candidate of the indigenous Pachakutik Party. While he portrays himself as an “eco-socialist”, many from the Correa camp have questioned his commitment to defend indigenous communities and remember that some factions of the Pachakutik Party have, in the past, opportunistically aligned with the right against Correa’s government. Moreover, he is also known for supporting US-backed right-wing coups in Latin America and wholeheartedly backing imperialism. ​

Correismo

Arauz’s electoral hegemony is explained by the strength of Correismo - the ideology based on the policies of Correa’s government. Between 2007 and 2017, Correa undertook a series of post-neoliberal counter-reforms, strengthening the state, increasing its regulatory and economic planning power, and broadening its social influence. 

Correa re-constructed Ecuador by way of a Constituent Assembly convened in 2007. In his inauguration speech on January 15 of the same year, he stated: “This historic moment for the country and the entire continent demands a new Constitution for the 21st century, to overcome neoliberal dogma and the plasticine democracies that subject people, lives, and societies to the exigencies of the market. The fundamental instrument for such change is the National Constituent Assembly”. 

The Constitution set out a social agenda whose essential axes are: (1) social protection aimed at reducing economic, social and territorial inequalities, with special attention to more vulnerable populations (children, youth, elderly); (2) the economic and social inclusion of groups at risk of poverty; (3) access to production assets; (4) universalization of education and health. To this end, inter-sectoral cooperation was initiated among the Ministries of Education, Economic and Social Inclusion (MIES), Agriculture, Health and Migration. 
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The 2008 Constitution established the need to build a health system oriented toward comprehensive health care for the population, called the “Sectoral Health Transformation of Ecuador”, and created the “Model of Comprehensive Health Care”, which provided communal underpinnings to the approach toward healthcare. It is characterized by free health services for users, the deployment of sanitary infrastructure (hospitals and primary care centers) and training for health personnel. 

Buen Vivir

The construction of the Ecuadorian State was based on “good living” (El Buen Vivir) - a conception which places life at the center of all social practices and includes the strengthening of the welfare state in order to guarantee it. Correa acolyte René Ramírez argues that buen vivir means: “free time for contemplation and emancipation, and the broadening or flourishing of real liberties, opportunities, capacities, and potentialities of individuals/collectives to bring that which society, territories, diverse collective identities, and everyone - as a human being or collective, universal or individual - values as key to a desirable life.”

An essential part of buen vivir is communal action. While there were many gaps in the achievement of this aim, the Corriesta administration did try to start the “citizenization of political control” - the election of institutional and control authorities not by the legislature, but by an ad hoc organizational structure called the “Council of Citizen Participation and Social Control”. These measures were intended to establish a framework for participatory governance. ​

Neoliberal Onslaught

Lenin Moreno assumed presidency in 2017, riding on the back of Correa’s support. Having served as vice president (2007-13) in Correa’s government, he was expected to continue the progressive agenda of a strong welfare state. Instead, Moreno chose to comprehensively break away from the previous paradigm of anti-neoliberalism, persecuting Correa and his supporters.
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Moreno used a February 2018 referendum to destroy the CNE, the Constitutional Court, the Supreme Court, the Judiciary Council, the attorney general, the comptroller general, and others. With the assistance of the CNE, Moreno divided and took control of Correa’s party.  When the Correistas tried to re-organize themselves in a new party, the state blocked them. They said that the proposed names were misleading or that the signatures collected were invalid. By 2019, the Correistas used the “Social Commitment Strength” platform to run for local elections in 2019. This platform was then banned in 2020.

The suppression of Correistas has occurred against a backdrop of a neoliberal onslaught. Moreno has followed laissez-faire economic policies, privatization, fiscal austerity, deregulation, free trade and state reduction promoted by the Washington Consensus. His initial actions aimed to incentivize private economic activity, including the elimination of advances on income taxes for firms and a move toward labor market flexibility. Further, Moreno introduced tax exonerations for firms that repatriated funds within the next twelve months. 

In August of 2018, the National Assembly approved the “Organic Law for Productive Development, Attraction of Investment, Employment Generation, and Fiscal Stability and Equilibrium”. This law included amnesty for any outstanding interest, fines, or surcharges owed to a number of government agencies. 

A 10-year income tax exemption was introduced for new investments in the industrial sector. Along the same lines, a 15-year exemption for investment in basic industries, and a 20-year exemption for investments located near the country’s border, were also specified in the bill. Exemptions were introduced to the tax on capital outflows for productive investments. These measures reduced the high-tax burden that private companies earlier faced.

Moreno has announced many austerity adjustments: reduction in the salaries of many government functionaries, elimination of bonus payments for state employees, overall reduction in the number of public sector workers, and the sale of state-owned companies. All this resulted in the “October 2019 uprising”. ​

Hope for Socialism

It is likely that Arauz’s socialist leanings will help him succeed in re-gaining presidential power. He is committed to rolling back Moreno’s neoliberal measures, standing firm against the ruthless demands of international capital, increasing public spending on education and healthcare, and imposing restrictions on capital flight. Arauz has conceived of a state model oriented towards selective economic interventionism for the benefit of the poor. 
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This model argues that the people-centric acceleration of economies is not a spontaneous phenomenon that results exclusively from market forces, but is the result of vigorous state involvement in strategic sectors through planning and structural reforms in the context of a mixed economic system. Considering the fact that absolute poverty has tripled during Moreno’s 4-year presidency, Ecuadorians will elect a leader who promises to provide them with dignified lives. ​

About the Author:
​Yanis Iqbal is an independent researcher and freelance writer based in Aligarh, India and can be contacted at yanisiqbal@gmail.com. His articles have been published in the USA, UK, Canada, Australia, New Zealand, India and several countries of Latin America.

Photo source: Andres Arauz' Instagram - @ecuarauz

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1/11/2021

On the Historical Conditions of Racist Violence By: Sebastián León

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In the days after the murder of George Floyd at the hands of a police officer in the United States, massive revolts  spawned in that country and have travelled fast around the world, getting the center of international attention and gaining massive support. Among those who comment on these events, there has been much (and certainly, there has to be) insistence on the fact Floyd’s murder is not merely an isolated act of racist hatred: it is recognized that racist violence is a systemic or structural issue[1].
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Nonetheless, it is very important to clarify what that means. What is that system in which racial violence is framed (inside and outside of the United States)? If this is not explained, pointing out the structurality of racist violence remains at a level of generality in which, without being less true, it ends up being something banal.

Of course, I do not pretend to provide an exhaustive analysis or a definitive answer here. I would like to insist, however, that it is crucial for this explanation to understand that, like all phenomena in our society, racism is a historical phenomenon, and a specifically modern one[2]. It is a mistake to believe that it has been present exactly as we know it in all societies; yes, there has always been a difference between one’s own group and foreigners, along with a hierarchy of value between “them” (barbarians) and “us” (civilized), which can include differences based on physical or phenotypic traits. However, racism, the idea that there is a natural fatality, race, that is much more deeply rooted in the being of individuals than any archaic caste, and that innately entails a state of moral, cultural and intellectual inferiority and a servile condition, is a legacy of modern colonialism and the system of slavery that it inaugurates[3].

One must also understand that, contrary to what many liberal advocates of Western civilization maintain, slavery was not some “pre-modern” heritage. Slavery in Europe had been abolished in the 13th century, and in the Islamic world even earlier. Slavery will resurface in the middle of the 16th century, when it is already crystal clear for the whole of society that it is something aberrant, and in a much more degrading way than in any other time in history (a slave in the Middle Ages or in the Ancient World did not inherit his condition by the color of her skin, and she had a much better chance of buying her freedom for herself or her family, and even of moving up socially), because of the interests of the new merchant class that was then beginning to emerge (that is: due to the economic need of cheap labor)[4]. Racism does not precedes slavery: racism emerges after decades of forced servitude, subject to the need for profit of the new capitalist class, to its need to appropriate land and human beings to generate wealth without cost overruns. It is the quasi-natural justification of the situation of oppression inherent to a system of expropriation and exploitation.

The history of modern racism and colonialism goes hand in hand with the history of capitalism: they are the same history. That is why it is a mistake to think that capitalism is merely “an economic system”. Capitalism is, above all, a system of domination based on expropriation and exploitation.

And that is also why, although it is correct to celebrate the awareness of the masses who, exercising their legitimate right to disobedience, unleash their indignation and furious protest[5], we must not remain complacent in the pure celebration of revolt (which without organization and a clear strategic route, always ends up fading away). Eliminating racist structural violence, overcoming the oppression of peoples of colonial origin and exploited labor throughout the world, requires thinking about a radical reorganization of the economic and political system that we call capitalism (to think, without fear, in its opposite). We must think and speak without fear of socialism, and think and speak without fear about how we must organize to overthrow the social class that to this day benefits from the most savage injustice.
 
Regarding this reflection, I believe that Marxism (with 180 years of theoretical and practical experience in Europe, Africa, Asia and the Americas) has much to contribute.



​Citations


[1] In the case of the United States, this becomes evident to those who contemplate the figures and the systematicity with which the Afro-descendant population suffers this kind of violence by the punitive institutions of the state. In the case of Peru (my country), a similar argument could be made in relation to the mestizo and indigenous population.

[2] See Allen, T., The Invention of the White Race (2012). Also, I. Wallerstein and A. Quijano, “América como concepto o América en el moderno sistema mundo”, in Revista Internacional de Ciencias Sociales vol. XLIV n°4, 1992.

[3] See Losurdo, D., Class Struggle: A Political and Philosophical History (2015).

[4] Indeed, it is interesting to see how European society, in the centuries before the restoration of the slave trade, had already generated institutions and normative resources to question the practice of slavery (the antislavery position of the theorist of absolute monarchy Jean Bodin can be contrasted with that of the “father of liberalism”, John Locke, whose defense of private property included a defense of slave ownership in the colonies). The Catholic Church and the monarchical state, despite all of their despotism, often played a positive role in this regard. It was against the “illegitimate” interference of these “illiberal”, pre-modern powers in regard to the administration of their possessions that liberalism as a doctrine would be born. See D. Losurdo, Liberalism: A Counter-History (2005), and for a more general history of “primitive accumulation”, see the first volume of Marx’s Capital.

[5] See Celikates, R., “Rethinking Civil Disobedience as a Practice of Contestation – Beyond the Liberal Paradigm”, in Constellations Volume 23, n°I (2016). 

​About the Author:
Sebastián León is a philosophy teacher at the Pontifical Catholic University of Peru, where he received his MA in philosophy (2018). His main subject of interest is the history of modernity, understood as a series of cultural, economic, institutional and subjective processes, in which the impetus for emancipation and rational social organization are imbricated with new and sophisticated forms of power and social control. He is a socialist militant, and has collaborated with lectures and workshops for different grassroots organizations.

Originally published in Disonancia: Portal de Debate y Crítica Social (Jun 4, 2020)

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