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7 Habits of Highly Frugal People

May 19, 2012

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7 Habits of Highly Frugal People

The book 7 Habits of Highly Effective People has sold over 15 million copies since it was first published in 1989, teaching people all over the world how to live a happier, more successful and more satisfying life. One of the prevailing themes of the book is the fact that to change your life you need to change your attitude because no one else is responsible for what happens to you but you, so you can either complain about the things you don’t like in your life or you can set about changing them. Not surprisingly, this directly relates to the state of your finances. This post is a parody to the concepts presented in the book.

If you are tired of living paycheck to paycheck, of having your phone regularly cut off or having to make excuses to skip dinners with your friends if the money has run out before the end of the month then you can use the seven habits of highly effective people to take control of your money situation and live a more frugal lifestyle, and a happier one.

Habit One: Be Proactive

The first habit of highly effective people is to take responsibility for their own lives; if they fail, they have no one to blame but themselves. Regardless of how you were raised or how you were treated at school you are able to choose your behavior now. Being proactive means understanding that you are in control of the direction your life takes and in control of your day to day interactions. Whereas a reactive person is often affected by their environment and will find external sources to blame for their behavior, for example if the weather is good they are in a good mood but if the weather is bad it affects their attitude and so the weather is to blame for their bad mood.

Here are 6 Action Steps to Take When You Feel Financially Vulnerable

However what most people forget is that between the stimulus and your response is your freedom to choose your response, and one of the most important things you choose are your words. The language you use is an effective indication of how you see yourself and if you use proactive language such as ‘I can’ or ‘I will’ you are starting with a more positive attitude than a reactive person who uses language like ‘I can’t’ or ‘I have to’ or ‘if only…’

How to be proactive for effective frugality:

  • Take the first step. You cannot take control of your finances until you make the commitment to do so because the more you ignore the situation the worse it will get. Instead take a long hard look at your finances and your budget, your debts, income and expenses and understand where your money is going and where you can budget better. (To help you out, here are 25 ways to pay off your debt more easily.)
  • Tell people. Using proactive language to vocalize your goal of being more frugal and more financially responsible not only helps you crystallize your goal but can also help you avoid the peer pressure which can make budgeting and frugality hard. If you explain to your friends and family how you are trying to live a more frugal lifestyle then they are less likely to pressure you into one more round of drinks at the pub or dinner out, again.
  • Listen. Listen to yourself and listen to the reasons you give each time you make a purchase outside of your budget or decide not to put those spare funds into your savings account. Taking the time to stop and listen to the reasons you give yourself for spending more than you earn will give you the opportunity to hear just how shallow many of those reasons are, and can stop you from making purchases which can impede your goal of effective frugality.

Habit Two: Begin with the End in Mind

Those who are effective in achieving their goals are able to envisage their end result despite the obstacles. Highly effective people adhere to this habit based on the principle that all things are created twice, there is the first mental creation and then the second physical creation, and the physical creation follows the mental creation in the same way as the building follows its blueprints.

If you don’t visualize what you want out of life then you are at risk of other people and external circumstances influencing your life because you are not influencing it yourself. Instead begin every day and every task with a clear vision of where you want to go and how you’re going to get there and make that vision a reality with your proactive skills from habit one.

How to visualize effective frugality:

  • Define your goal. There are many ways to live a frugal lifestyle and you need to decide on how frugal you want to be. Do you want to be debt free, do you want to build a savings account balance of a certain value or do you want to be able to live on one income in a two income household?
  • Decide how you’re going to get there. This will again draw on your budget, but you also need to be aware of the obstacles which are standing in your way. These may be literal obstacles such as credit card debts, or they may be obstacles you have identified in your behavior; for example are you spending $10 every day on junk food on your way home from work because you’re starving when you could be packing a two dollar muesli bar or a low GI lunch to keep you going until dinner. Or do you find that when you go shopping with your sister she always helps you justify a frivolous purchase when you could leave your credit card at home?

Make sure your goals are SMART! Here’s what I mean by that.

Habit Three: Put First Things First

Knowing why you are doing something is an effective motivator in helping you take the mental creation and transform that into an actual physical creation of your goal. Therefore ask yourself which are the things you find most valuable and worthy to you. When you put these things first you will be organizing and managing your time aroundyour personal priorities to make them a reality.

However for many people it is hard to say no but this is exactly the skill you have to learn to be able to keep your goals as your first priority. While we have all of these time-saving devices and we are told we can have it all if we just achieve that elusive work-life balance, in reality having it all is really about prioritizing which it is most important to you to have, and then doing that properly.

How to put effective frugality first:

  • Recognize the effects of your finances. You may not dedicate as much time as you should to managing your finances and practicing frugal principles because you feel there is always something more important to be doing, whether it is work, taking the kids to soccer practice or getting ready for dinner with the girls. However, if your finances are not under control and you are regularly spending more than you earn, then this is having a negative impact on every other aspect of your life from your work to your family to your friends. Therefore you need to recognize that being frugal is your first priority.
  • Just say no. It is easy to spend more than your budgeted amount each month when you are worried about missing out on a dinner with friends, feel as though you have to cater a birthday party for your son and 50 of his closest friends or you can’t possibly wear the same suit you wore last year to a work conference. However if you recognize that you don’t have to take on everything and that it is all right to say no then you will find you are more in control of your spending and your budget.

Habit Four: Think Win-Win

Most of us are taught to base our self-worth on comparisons to others and competition against our peers. We think we can only succeed if someone else has failed and if you win, then that must mean I lost. We are also taught that there is only so much pie to go around and if you get a big piece then I’m going to be missing out. When you think like this you are always going to feel like you’re missing out on something and nothing is ever fair. As a result many of us retaliate and take the pie before someone else can take it from us.

Thinking in a win-win mindset allows you to see mutual benefits from all of your interactions and as a result, you will see that when you share the pie it tastes even better. If you are able to approach conflicts and problems with a win-win attitude by showing integrity and standing up for your true feelings and values, it allows you to express your ideas and feelings with courage while having consideration for the feelings and ideas of others. When you focus on an abundance mentality, you are able to see that there is enough for everyone and you can see that balancing your confidence with empathy can help you achieve your goals while helping others achieve theirs.

How to create frugal win-win situations:

  • Recognize that you don’t always know the full story. As you aim to implement frugal principles and stick to a budget, you may often find yourself thinking ‘it’s not fair’. It’s not fair that they get to go out to dinner. It’s not fair that they get a new car, and it’s not fair that they get to go on holiday and I don’t. However, take the time to realize that you are only seeing a small part of the finances of your friends and family who seem to ‘have it all’. And even though your best friend is taking that dream European holiday of yours or your brother is buying a sports car before you are, you will get there too if you manage your finances frugally and there will still be plenty of holiday destinations and plenty of fast cars when you can afford the expense.
  • Understand the difference between possessions and net worth. While your friends and family may seem to have a fuller lifestyle because their house is bigger or their car is newer, you need to consider that it could just be a facade to cover their mountains of debt. True wealth is not measured in possessions but in assetsand when the value of your assets is greater than the amount you owe in mortgages, car loans and credit card debts, then you have a strong net worth and are truly wealthy. And in aiming to live a more effectively frugal lifestyle you will be able to achieve true wealth rather than just a life full of stuff.

When building wealth, remember to look at the big picture too.

Habit Five: Communication

Communication is often the desire to be heard and understood and most people will listen with the intention to reply to what you’re saying rather than to understand what you have said. However, to effectively communicate you need to first understand and then be understood because if you communicate with the sole intention of being understood you can find that you ignore what others are saying and miss their meaning entirely.

How listening can help you be effectively frugal:

  • You are not the only person in your life. Chances are you are married, in a relationship, have children or all of the above. As a result, you are not the only person being affected by your decision to live a more frugal lifestyle. To be effective in your goal of frugality, you need to be able to listen to and understand the goals and behaviors of the other people in your life too. Consider how effective your frugality would be if you were taking packed lunches to work and avoiding the afternoon coffee run with your partner going on shopping sprees during their lunch break. Instead of living a more frugal lifestyle, you are really saving on one end and spending it on the other.
  • Understand the goals and needs of others. While it is important to explain your desire to live more frugal lifestyle, it is also important that you understand the goals and needs of your family so that you can find a way to be more frugal without them having to give up all of the things which are most important to them. You can’t know what those things are unless you listen.

Habit Six: Synergize

Interactions and teamwork are some of the most important ways you can learn new skills and more effective behaviors. To synergize is the habit of creative cooperation where you work as a team to find new solutions to existing problems. Synergy is not something which just happens but is a process where you need to bring all of your personal experiences and expertise to the table to enable more effective results than you would have been able to achieve individually – the whole is greater than the sum of its parts.

When you have genuine interactions with people you are able to gain new insights and see new approaches to your problems which you would not have otherwise thought of.

How to synergize for effective frugality:

  • Look for new ways. In a society which has become so good at consumerism you have probably already realized that you need to find new ways of doing just about everything to be frugal. It is easy to buy your lunch every day but it is more frugal to take a packed lunch. It is easy to drive to work but it is more frugal to catch the train. It is easy to buy a new cocktail dress but it is more frugal to make one.
  • Surround yourself with other frugal people. To be successful surround yourself with people who are where you want to be and whether you join online forums onfrugal living websites or strike up a friendship with the woman who runs the local shop you will be able to share ideas and learn from others to be successful.

Learn to embrace the positive influence of saving money here as well.

Habit Seven: Sharpen the Saw

You are the greatest asset you have on your journey to achieving the lifestyle you want and so you need to look after yourself physically, emotionally, mentally and spiritually. When you take time to renew yourself in all four areas of your life you are creating growth and change which allow you to continue with the previous six habits you have mastered, which still need to be maintained to achieve success.

How to frugally renew yourself:

  • Physically. By eating better you will feel better and if you start your own vegetable patch for example you will be able to save at the supermarket and will be eating better at the same time. Exercising keeps you fit and healthy and it doesn’t cost you anything to go for a walk or bike ride or even skip rope in the backyard. To rest your body you don’t need to go to a day spa you can simply slide into the tub at home and relax.
  • Emotionally. Interacting socially with others allows you to make meaningful connections and this can come back to a conversation with the woman at the op shop or even scheduling in coffee and a chat with your mum once a week.
  • Mentally. Exercising and expanding your mind through learning, reading, writing and teaching can be done frugally at your local library or even by volunteering at a school or retirement home to teach others a skill you may be taking for granted.
  • Spiritually. Spending time close to nature to expand your spiritual self through meditation, music, art or prayer can be done frugally by taking a quiet moment to center yourself and empty your mind before you go to bed or going for a bush walk and being grateful for the beauty of nature surrounding you.

Frugality does not mean having to give up all the luxuries and things which make you happy because if you go through developing habits 1 to 6 without spending the time to renew yourself this is how you burn out, and frugality is something you want to develop and maintain for the long-term and with these seven habits you can be a highly frugal person.

This post is originally written by Alban, a personal finance writer. He offer money savings tips and helps people to compare home loans online.

 

For further information on David Nings work please follow the links below:

http://moneyning.com/frugality/7-habits-of-highly-frugal-people/?

To contact David Ning please click on this:

http://moneyning.com/about/

The Other Side: Shooting drones

May 17, 2012

http://www.youtube.com/watch?v=sgkvYmelMFQ

The Other Side: Shooting drones

 

Young film-maker Muhammad Danish Qasim talks about his short film The Other Side which has won the NFFTY award. GRAPHIC: SAMRA AAMIR

 

KARACHI: 

While seasoned film-maker Sharmeen Obaid-Chinoy made us proud with an Oscar award this year, it seems young film-makers are not far behind as they are working on interesting and unique projects that are garnering attention and recognition for Pakistan. One of these talented minds is Iqra University’s Media Science student Muhammad Danish Qasim whose short film The Other Side has created a buzz in Pakistan as well as at international festivals.

Plot

More than even the film itself, it is the subject that the film tackles which has helped Qasim get people to sit up and take notice. The Other Side revolves around a school-going child in Miranshah, the capital of North Waziristan. The child’s neighborhood gets bombed after the people of the region are suspected for some notorious activities. He ends up losing all of his loved ones during the bombing and later becomes part of an established terrorists group who exploit his loss and innocence for their own interests.

On the reasons for picking such a sensitive topic, the film-maker said, “Most of the films being made right now are based on social issues, so we picked up an issue of international importance which is the abrogation of our national space by foreign countries.”

When asked how this film on terrorism will be different from all the others that have been released since 9/11, he said, “The film takes the audience very close to the damage caused by drone attacks. I have tried my best to connect all the dots that lead to a drone attack and have shot the prevailing aftermath of such attacks in a very realistic and raw manner.”

Awards

The film has already won the Audience Award for the Best Movie in Across the Globe Category of the National Film Festival for Talented Youth (NFFTY) in Seattle, Washington this year. However, despite this, Qasmi was denied a visa to attend the festival. “I believe the most probable reason for the visa denial was the sensitive subject of my film,” says Qasim. He recalls that when the visa officer asked about the subject matter of the film, he suggested making changes in the letter issued by his University upon hearing that the film dealt with terrorism and drone attacks.

“Although I made the changes to the letter according to the visa officer’s recommendation, they still rejected the visa and did not disclose the reason for it,” says a disappointed Qasim.

According to Qasim, “NFFTY is considered to be the biggest event for young film-makers of the world. Film schools as well as potential Hollywood producers attend the event in order to interact with young, talented film-makers. I’m disappointed that my team, especially my crew members Atiqullah, Ali Raza Mukhtar Ali and Waqas Waheed Awan, who made the film possible with their hard work and support, missed out on a major opportunity to represent Pakistan on an international forum.”

Problems along the way

Although the film’s plot is set in Miranshah, the shooting had to be done on the outskirts of Quetta city. “On the second day of our shoot, a tribal war started between two different clans of the area. We were on the brink of losing our lives as well as the footage for this film, fortunately things worked in our favour,” recalled Qasim.

What’s ahead?

After his final thesis film, Qasim plans to pursue a Masters in Film. However, the limited number of film schools and the lack of structured film programmes in Pakistan have been forcing youngsters to study abroad. He believes that film-makers in Pakistan end up pursuing other careers instead of film-making as the business is not lucrative enough as a primary occupation. He suggested that the government should form a committee to monitor the film school curricula as well as the placement of graduates. If this is asking for too much, he recommends that there at least should be a film-makers union.

“If someone from Hollywood wants to contact a Pakistani film-maker, he or she should contact it through a society, maybe a guild or a department of a certain ministry that facilitates and looks over such issues,” said Qasim.

Published in The Express Tribune, May 18th, 2012.

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http://tribune.com.pk/story/380304/the-other-side-shooting-drones/

Pakistan – Emotion and logic!

May 17, 2012

Emotion and logic

Gilani has said that in the future the government will not make decisions which are “emotional”.

Now that the six-month standoff with the US over Nato supply routes finally seems to be over, Prime Minister Yousaf Raza Gilani has said that in the future the government will not make decisions which are “emotional”. This was a tacit admission that Pakistan may indeed have taken steps that could be justified only as a matter of honour and not as policy decisions. By some estimates, Pakistan will earn up to one million dollars a day from the 600 or so Nato trucks that will ply our roads daily and also have over a billion dollars released from the coalition support fund that were due to us. Discarding emotions, it seems, has immediate financial effects.

In this case, taking a calm decision over the future of our relations with the US was certainly the right thing to do. But more than the civilian government, it is the establishment which needs to learn this lesson. For too long now, it has been guided by pure emotion rather than strategic concerns. From the occupation of Siachen to the insistence on asking the US for an apology for the Salala killings, it seems as if the whole issue of honour was being managed (to use a euphemism) by the military establishment. That has meant a lot of emotional chest-thumping and rhetoric when what was really needed was realism and pragmatism. The military, too, would do well to heed the prime minister’s sensible words in the future.

The country as a whole, in fact, could do with a lot less emotion. Phenomena like honour killings stem from emotion, not rationality. The anti-Americanism that permeates our body politic is again spurred by an emotional sense that the US is our enemy. We come to that conclusion without rationally considering the political and financial benefits of an alliance with the US or ever look at the damage our country would suffer should we completely break off ties with the Americans. These are decisions that need to be carefully considered because their effects will be felt for a number of years. One slight to our honour should not be enough for us to take emotional decisions that we will eventually come to regret.

Published in The Express Tribune, May 18th, 2012.

http://tribune.com.pk/story/380322/emotion-and-logic/

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Pakistan Mullahs help the country win,’The most negative Poll!’

May 17, 2012

Iran, Pakistan, Israel most negatively rated countries: BBC poll

 

Pakistan is the only country which rated its own influence as negative, stated poll results. SOURCE: BBC POLL

Pakistan was ranked second in the list of most negatively rated countries in the world by a global poll for BBC World Service, which surveyed 24,090 people around the world. 

Citizens of 22 countries were interviewed face-to-face or by telephone between December 6, 2011 and February 17, 2012. Polling was conducted by the international polling firm GlobeScan and its research partners in each country, together with the Program on International Policy Attitudes (PIPA) at the University of Maryland.

Pakistan was rated “mostly negative” by 51% of the respondents, getting placed just one spot above the most negatively rated country – Iran, which was rated negative by 55% of the total respondents.

According to the poll results, Pakistan is the only country which rated its own influence as negative.

A negative view of Pakistan declined by 4% as compared to 2011.

The survey results revealed that a negative view of Pakistan was found mostly in Western countries. Around 75% Americans, 69% Canadians and 72% Australians said Pakistan’s influence in the world is mainly negative. The pattern of negative perception was similar in the European countries. The view of Pakistan by India, country’s all-time arch rival, was negative as well.

Most of the respondents blamed Pakistan’s foreign policy and the poor treatment of its citizens for such a widespread negative perception of the country.

Out of 22 countries that were surveyed, Indonesia is the only one which holds a positive view of Pakistan.

Other findings

Japan was rated most positively by the majority of the respondents (58%), taking Germany’s last year position which had its positive ratings drop from 60% to 56%. This placed Germany in second place behind Japan.

Canada (53%) and the UK (51%) are the third and fourth most positively viewed countries.

China’s positive ratings rose from 46% to 50% this year.

http://tribune.com.pk/story/380329/iran-pakistan-israel-most-negatively-rated-countries-globally-bbc-poll/

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US punishing Iran for Palestinian resistance?

May 17, 2012

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SPEAKING FREELY
US punishes Iran for Palestinian resistance
By Ardeshir Ommani 

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing. 

On a Sunday morning in Beirut, October 23, 1983, a yellow Mercedes Benz truck loaded with 12,000 pounds (5,443 kilograms) of dynamite slammed against the four-story building that housed the US Battalion Landing Team Marine Headquarters. The explosion, which was heard throughout Beirut, killed 241 American servicemen. Minutes later a second truck, full of explosives, slammed against the barracks of French paratroopers nearby; the blast killed 58 French soldiers. The organization Islamic Jihad claimed responsibility for the bombing. 

The question then arises: what had led to this attack, and why, thousands of miles away from their homelands, the American and French troops were in Beirut in 1983 – in the midst of Lebanon’s 15-year civil war (1975-1990)? 

The answer is directly related to the fact that on June 6, 1982, Israel, led by General Ariel Sharon, invaded Lebanon. The goal of the invasion was to wipe out the Palestine Liberation Organization (PLO), which had been pushed out of its homeland and forced to seek refuge in Lebanon. Israel’s attack was so brutal that it left its toxic trace on the Lebanese society for a long time. In 18 weeks, according to the Red Cross, as many as 17,000 people, mostly Lebanese civilians, were killed by Israeli aerial bombardment. Wherever the PLO was uprooted, a new organization that called itself the Party of God (Hezbollah) took root. Some 6,000 PLO fighters were forced out of Lebanon, mostly into Tunisia. During their presence in Lebanon, troops from the US, France, Italy and Israel backed the Christian Phalange and suppressed the Muslim majority. While in Lebanon, the so-called international peacekeeping force did not demand the total exit of Israeli soldiers from Lebanon. 

As a result on September 15, just five days after the multinational force had departed, Israeli troops directed the Christian militia to attack civilians in the Palestinian refugee camps of Sabra and Shatila. Israeli forces launched flares into the night sky to enable the killings. To the Lebanese Muslims it was not a secret that the US and France were behind the aggression and atrocities of the Zionist state. Masquerading as peacekeeping forces, the US Marines and the French paratroopers landed in Beirut again on September 24. Soon the United States administration of Ronald Reagan once again took the side of the Christian Phalangists and pressed against Druze and Shi’ite Muslims in central and southern Lebanon. The American and French so-called peacekeeping troops frequently used their firepower to shell Druze and Shi’ite positions in the mountains surrounding Beirut. 

Spotting the enemy at home, on April 18, 1983, four months before the major attacks, a suicide bomber drove his car into the American Embassy in Beirut, killing 63 people, including 16 Americans. The attacker was able to wipe out most of the CIA’s Middle East agents, who were meeting that day at the US Embassy. All these signs did not teach the US administration any useful lesson. On the contrary, US policy moved closer to the Phalangist and escalated its attacks on Druze and the poverty-stricken Shi’ite Muslims. Finally, the end result was that on October 23, 1983, the suicide bombers attacked the American and French barracks. 

As was shown above, “the most brilliant act of terrorism” [1] on the American and French military headquarters in Beirut in 1983 was a caustic criticism of the masses of wandering and poverty-stricken Palestinians and Shi’ite Muslims who were made homeless and destitute by the unilateral and voracious policies of the US administrations and overwhelming military forces of the Pentagon and North Atlantic Treaty Organization (NATO) in favor of primarily Israel and a small minority of pro-imperialist Lebanese landlords, financiers and foreign tradesmen. 

That’s where the money is
The tragedy in Beirut was the result of two obvious reasons: that the US overt support for the Israeli policy of territorial expansion and occupation of the Palestinian homeland made the US credibility and its military forces targets of the contending forces, and the Islamic Jihad organization had already professed its responsibility for the bombings. Therefore, what made the US legal system, the courts, the intelligence services and the New York Police Department to freeze and seize huge private, non-profit and governmental assets in the US and countries in the European continent? (See The great US heist on Iranian assets
, Asia Times Online, May 1, 2012). The answer is, as the correctional officers say: “follow the money”. 

It goes without saying that the Islamic Jihad or the Hezbollah of Lebanon neither had substantial amounts of money parked in the US and European banks, nor could they be easily arrested and hauled to court. Therefore, the US legal system acted the way William “Willie” Sutton (June 30, 1901-November 2, 1980) did in the first half of his active life in the 20th century. The law officers curiously asked Willie why he robbed banks; his answer was “because that’s where the money is.” 

Trusting the Imperialist banks?
If the Palestinian Hamas, the PLO, the Islamic Jihad and the Hezbollah (Party of God) of Lebanon don’t have large amounts of cash or assets that could be frozen or expropriated, Iran – still trusting in the credibility of the world financial system – has kept large amounts of financial assets that could be easily shaken down. Iran is therefore vulnerable to the malfeasance of the US court system, which is weighted toward the wealthy and profiteers. Not surprising then is the report in the Wall Street Journal (WSJ) from December 12, 2009, that more than US$2 billion allegedly held on behalf of the Islamic Republic of Iran in Citigroup accounts were secretly ordered frozen in 2008 by a federal court in New York City. This illegal appropriation of a sovereign country’s assets appears to be the largest seizure of Iranian assets overseas since the 1979 Islamic Revolution. [2] 

The illegality of the act of confiscation of a sizeable fund belonging to a sovereign state, which enjoys immunity in the sphere of international relations, speaks loudly when we learn that 18 months after the execution of the order issued by the US District Court for the Southern District of New York, the file remained under seal and was not made public. In 2007, a US federal judge ruled that Iran should pay $2.65 billion to families of victims of the 1983 attack. The question is why it took the US court system 24 years (1983-2007) to come up with an indictment that Iranian authorities were involved in directing the terrorist attacks on the US and French troop barracks? 

The Netherlands is still trying to convince the US authorities to return the remaining assets, which includes bank deposits, gold and real estate property. The sum of the $2 billion Iranian fund frozen in a US bank is nowadays claimed by three parties simultaneously: the Islamic Republic of Iran as the owner of the fund; a group of lawyers who are seeking to gain access to $2.65 billion (a sum greater than the frozen $2 billion fund) for personal enrichment and distribution between more than 1,000 claimants who say they are relatives of the dead or injured US troops; and thirdly, the US government, which prefers to keep the large sum of money frozen for the unforeseen future, knowing the unlawful nature of its act. By signing the National Defense Authorization Act (NDAA) into law on December 31, 2011, President Barack Obama required the US hold the Iranian money in the frozen state and prohibits any proprietary access to it. 

In addition to the actual sums frozen or expropriated by the US authorities, there are “hundreds of billions of dollars in default judgments against Iran, levied by US Courts in favor of Americans” [3] and Israel. 

Ford-era immunity
The Foreign Sovereign Immunities Act (FSIA), signed into law by President Gerald Ford on October 21, 1976, established limitations on whether a foreign sovereign nation (or its political subdivisions, agencies or instrumentalities) could be sued in US courts. 

If a foreign defendant qualifies as a “Foreign State,” the act provides that it shall be immune to action in any US court – federal or state. If a defendant establishes that it is a “foreign state” under the FSIA, then it is entitled to sovereign immunity. For Iran to prove that it is a foreign state, it suffices to show that it is a full-fledged member of the United Nations and all its attachments. Accordingly, for the lawsuit to be taken seriously by US courts, the plaintiff must prove that one of the act’s exceptions to immunity apply. That came from a US court ruling which concluded that “with massive material and technical support from the Iranian government,” Hezbollah was able to carry out the 1983 attack. From there onward, and despite the absence of any representation in court for Iran, the court laid down the grounds for denying Iran the right to declare its foreign sovereign immunity from suits initiated by US citizens. 

Put simply, the case the United States courts and lawmakers in congress have laid against Iran in the years since the Beirut attack is based on the allegation that it provided material support to Hezbollah in connection with the bombing, and had been designated a state sponsor of terrorism on January 14, 1984, again in connection with that attack. The US decided that Iran provided Hezbollah or Islamic Jihad with materials that were ultimately used in their attacks against the US barracks in Beirut that resulted in the injury and deaths of US soldiers. On that basis, George Shultz, the US Secretary of State under President Ronald Reagan, marked Iran as a “state sponsor of terrorism”. 

Such a label that could equally be applied to the United States government, since it is common knowledge that the US is the biggest proliferator of weapons, including missiles, warships, warplanes, chemical weapons and nuclear armaments. Without a doubt, these weapons are used to wage wars in which people are killed for the purpose of occupation, which fits the case of Israel against the Palestinians or the people of Syria or Iran. 

Within the peace and anti-imperialist camp, there are organizations believing that the struggle against the Islamic Republic of Iran for its type of government and policies on gender and dress code carry as much weight and significance as their struggle against US intervention, sanctions, terrorist activities, assassinations of Iranian scientists, and war threats. This political analysis tries abstractly to equate two unequals by prescribing the same kind of treatment to problems that are entirely different by nature. The people of Iran are suffering from high prices, unemployment and lack of vital industrial commodities because of the US embargo and sanctions, not because women are wearing head scarves. In the words of Aristotle, “There is nothing so unequal as the equal treatment of unequals.” 

Notes: 1. Robert Fisk, Pity the Nation – The Abduction of Lebanon, Nation Books, 1990.
2. US Freezes $2 billion in Iran Case, Wall Street Journal, December 12, 2009.
3. US Sanctions Hamper Iran bid to recover $1.75 billion, Reuters, January 15, 2012. 

Ardeshir Ommani, president of the American Iranian Friendship Committee (AIFC), is a writer and political analyst with a background in political economy. AIFC’s website iswww.iranaifc.com. The author may be contacted at: ardeshiromm@optonline.net 

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing. Articles submitted for this section allow our readers to express their opinions and do not necessarily meet the same editorial standards of Asia Times Online’s regular contributors. 

(Copyright 2012 Ardeshir Ommani.)

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India dumps Iran to get pimped by the US?

May 17, 2012

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India dumps Iran, squeezes Obama
By M K Bhadrakumar 

The cloud cover of sophistry that has been characteristic of India’s Iran policy in recent years lifted on Tuesday when the government admitted in parliament that it had taken a policy decision to reduce oil imports from Iran. 

The frank admission came on a day when an emissary from Washington, Carlos Pascual, special envoy on energy matters in the United States State Department, arrived with the proclaimed intention of weaning New Delhi away from Tehran’s fuel. 

The Barack Obama administration will be delighted that the sustained diplomatic and political pressure on India is finally bearing fruit. Tehran, on the other hand, will view this as the unkindest cut of all the blows that New Delhi has inflicted on it over the past five year. Meanwhile, a protagonist lurking in the shade is all excited – Saudi Arabia. 

A mystery lingers. What did the Obama administration promise the Manmohan Singh government as quid pro quo? Manmohan most certainly sensitized US Secretary of State Hillary Clinton of India’s “wish list” during her recent hurried visit to hold consultations personally with him just ahead of the US-India Strategic Dialogue co-chaired by her, which is scheduled to convene in Washington. 

Not as routine as it may seem 
Delhi has been under immense pressure from Washington to fall in line with the letter and spirit of the US’s sanctions on Iran over its nuclear program and curtail the sourcing of crude oil from Iran. The Indian government’s official stance so far has been – and continues to be – that it is only bound by United Nations-backed sanctions. 

Beneath the veneer of a principled position, however, India has been quietly and steadily backtracking. The frank admission on Tuesday came from Junior Minister for Petroleum R P N Singh, who disclosed, “Total crude oil imported from Iran by Indian companies during 2010-11 and 2011-12 is 18.50 million tonnes and 17.44 million tonnes, respectively. The target fixed for import of crude oil from Iran for 2012-13 is about 15.5 million tonnes.” 

He made it look routine, but the cold statistics reveal that in the current fiscal year, India will be cutting its oil imports from Iran by 11%. The Indian bureaucracy is never at a loss for words and Singh added, “To reduce its dependence on any particular region of the world, India has been consciously trying to diversify its sources of crude oil imports to strengthen the country’s energy security.” 

This is a considered policy decision backed by a detailed strategy paper based on a political directive to harmonize the policy on India’s petroleum imports with Washington’s Iran sanctions. No doubt, it is a major political decision, considering that India currently imports 80% of its crude oil from over 30 countries and relies on Iran for 12% of these imports. 

Curiously, a huge “collateral” beneficiary is going to be the influential Indian corporate house Reliance. Pascual brought a proposal offering that Shale Gas in liquefied form could be supplied from the US to replace Iranian oil. Reliance holds a monopoly on Shale Gas technology in India and has invested heavily in the US Shale Gas industry. 

The US proposal is based on a perfect matching of Obama’s political need to isolate Iran with India’s energy security and Reliance’s potentially massive business opportunity. The ingenuity of the American proposal is such that the Manmohan government cannot easily ignore it. 

Meanwhile, a short-term beneficiary is also going to be Saudi Arabia, from where India hopes to make up the current shortfall in oil imports from Iran. 

Riyadh derives satisfaction that India’s traditional ties with Iran are in the doldrums and that India’s recent “gravitation” toward the Gulf Cooperation Council (GCC) pole in the geopolitics of the Persian Gulf gets reinforced. There are fallouts in India’s domestic politics, too, where Saudi Arabia and the other Muslim Gulf monarchies exert a larger-than-life influence by lavishly patronizing the Sunni Muslim lobbies that have a nexus with various political parties. 

But Saudi influence in India today exceeds the Sunni Muslim constituency. The Saudis have successfully emulated the pattern of US and Israeli diplomacy in New Delhi by casting their net wide in the strategic community. Indian pundits have begun arguing for the GCC side of the story in the geopolitics of the Persian Gulf. There has been a steady stream of the “Gulf Arab” leaderships visiting New Delhi – the latest being the colorful emir of Qatar. India attended the first session of the “Friends of Syria” grouping in Tunis. 

Tehran will be unhappy that Manmohan has once again caved in to US pressure to roll back ties with Iran. Simply put, India has become adept at using the “Iran card” to leverage advantages out of the US. New Delhi has entrapped Tehran in a ring of pragmatic engagement, which falls far short of Indian promises or Iranian expectations, but Iran is left with the predicament to settle for the kind of relationship India chooses. 

Superb timing 
India is shrewdly exploiting Iran’s current vulnerabilities. Thus, by taking advantage of the obstacles being put by the US on the Asian Clearing Union payment mechanism of India-Iran trade, New Delhi persuaded Tehran to accept a system of barter trade for up to 45% of its oil exports, which would effectively work as an export promotion drive for Indian companies in the Iranian market. 

Iran accepted the deal grudgingly since it is keen to continue somehow or other with its longstanding relationship on oil with India through the present difficult corridor of time. The heart of the matter is, remove oil from the Iran-India relationship and it will atrophy to virtually nothing. Evidently, New Delhi has assessed that the relationship means more to Iran than to India at the moment. 

Iranian President Mahmud Ahmadinejad telephoned Manmohan on Monday in an attempt to shore up the relationship. He stressed that Tehran sets no limits to the broadening of ties with India and that the traditional, historical relationship has been of a “brotherly” character and is assured of a “promising future”. Manmohan responded with a caveat that India attaches importance to ties with Iran and welcomes a broadening of relations with Iran “on the basis of national interests”. 

There is some evidence that Tehran is also settling for a low-key relationship. Tehran parried repeated Indian attempts to schedule a visit by the secretary general of Iran’s Supreme National Security Council, Saeed Jalili, to New Delhi. Tehran estimates that the consultations are best scheduled when New Delhi is genuinely open to strategic engagement with Iran. 

Having said that, the big question still remains: What is it that India hopes to extract from the Obama administration in return for its momentous decision to comply with the US’s Iran sanctions? 

Indian diplomacy is hard at work. Starting from 2006 when India began voting against Iran in the International Atomic Energy Agency, Iran has become a factor in the US-India strategic partnership and New Delhi has been able to leverage it because Washington is extremely sensitive to Iran’s regional standing. 

Manmohan’s timing is superb. Although Obama needs to take a decision on giving a “waiver” to India under the Iran sanctions regime only in July, Manmohan took the decision now to cut India’s oil imports from Iran. 

Clearly, New Delhi has set its sights on the forthcoming US-India Strategic Dialogue in early June. After having discussed with Clinton during her recent visit the future directions of the US-India strategic partnership, New Delhi expects a tradeoff. 

Obama’s political prestige is at stake over the Iran nuclear issue, especially in a tricky presidential election year for him. Manmohan is handing over to him a major foreign policy “achievement” in making Tehran look somewhat more isolated in its region just when the talks over the Iran nuclear issue are moving into a crucial phase. 

If Indian diplomats are worth their salt, they are tiptoeing toward the US-India Strategic Dialogue with a killer instinct; they won’t settle for some two-penny worth gains. 

Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey. 

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Terrorists or freedom fighters? Depends on the US Congress!

May 17, 2012

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Terrorists blur into freedom fighters
By Brian M Downing 

Tensions between Iran on the one hand and the United States and Israel have eased substantially since war loomed just a few weeks ago. 

Israeli politicians, generals and security experts have openly expressed opposition to attacking Iran. More recently, the hawkish coalition in power has brought in the Kadima party, a large moderate bloc whose leaders also oppose such a strike. The P5+1 talks – which include Britain, China, France, Russia, and the US plus Germany – on Iran’s nuclear program are scheduled to begin in Baghdad next week in this calmer atmosphere. 

The Barack Obama administration has refused to support Israel’s “red line” of continued uranium enrichment, which would lead to an Israeli attack. Obama has presented a less restrictive red line of an actual weapons program, which would lead to an American attack. 

Foreign powers should act to nudge Iran into accepting the US red line, which after all offers Tehran a victory of sorts over Israeli demands and threats. Unfortunately, neither the US nor the Sunni Gulf powers are obliging and this could adversely affect impending talks and political dynamics in Tehran as well. 

The US recently deployed a number of F-22 fighters to an unnamed place in the region, probably the al-Dafra air base in the United Arab Emirates. These fighters have the latest stealth technology but have never seen combat. Iran must wonder how eager the US is to give their new planes a proper evaluation. 

Elsewhere in the Gulf, Saudi Arabia and Bahrain are discussing a political union, which would strengthen anti-Shi’ite resolve and weaken the traditional role of smaller Gulf states as balancers between the Saudi and Iranian powers who threaten to upset the neighborhood. 

Perhaps the most objectionable act from Tehran’s view is the delisting of the Mujahideen-e-Khalq (MEK), which may come soon. At present, the US has designated the MEK a foreign terrorist organization, owing to its long career in assassinations and bombings. 

Back in the days of the shah in Iran, the MEK attacked US military officers and defense contractors in the name of Marxism and anti-imperialism – prevailing creeds at the time. Able to adapt to new ideas and circumstances, the MEK fought the ayatollah Ruhollah Khomeini regime then offered its services to Saddam Hussein in Iraq, who gave them a home and a steady income. He also gave them steady work inside Iran during the murderous 1980-1988 war. 

Following Saddam’s ouster (2003), Iran offered the US an exchange of al-Qaeda figures for MEK counterparts. It was all part of a wide-ranging diplomatic overture from Tehran that also put its nuclear program on the table. The State Department found the overture promising, but neo-conservatives in the White House rejected it out of hand – a blunt rejection that shapes Iran’s approach to dealing with the US to this day. 

In recent weeks, millions of Americans have seen a welter of advertisements decrying the injustice of branding the MEK a terrorist organization. The ads are especially prominent on CNN, which has also allowed at least one anchor to repeatedly shade his otherwise reputable reporting in a manner supportive of attacking Iranian nuclear sites. The MEK ads present it as a democratic alternative to the mullahs in Tehran and as the victims of an unfortunate error in the State Department. 

The media effort has been accompanied by supportive words from various retired generals and politicians, often made at prestigious social gatherings. Speakers are paid, often handsomely, though it isn’t clear by whom. 

A clue may lie in the MEK’s current work. Its long career has brought them into the service of the Israel’s Mossad, which uses them to carry out its bombing and assassination campaigns against Iranian nuclear scientists. This in turn has jeopardized the MEK’s base camp in Iraq, which is more sympathetic to Iran than to Israel or the US – a point made in the ads. 

The rehabilitated view of the MEK is not shared by Human Rights Watch or by independent Iranian exile groups. The latter persist in seeing it as a terrorist group and even as an obstacle to positive change in Iran. The leadership in Iran makes judgments in the context of their political culture, which has been formed by British and Russian occupation, the Anglo-American coup of 1953 and Iraq’s invasion that killed 800,000 Iranians. 

The MEK-Mossad campaign fits neatly into the contours of this culture – and strengthens it. Further, it builds support between the regime and the Iranian populace. Many of them yearn for reform, but almost all of them share the regime’s view of abhorrent forces all around them. 

The US’s delisting the MEK as a foreign terrorist organization would weaken popular support for reform as many Iranians will see reformists as echoing the sentiments of menacing foreign powers. Similarly, delisting the MEK would weaken moderates in the ranks of the mullahs and the state. Perhaps most significantly, it would strengthen and embolden Iran’s Islamic Revolutionary Guards Corps, which is eager to effect its own political changes by replacing vacillating mullahs with steadfast generals. 

Delisting the MEK would call for synchronization across the sprawling American bureaucracy. The MEK’s woeful designation is found in the State Department, the Central Intelligence Agency, the Federal Bureau of Investigation, the Justice Department, the Treasury Department, Homeland Security and a dozen or more bureaus. 

If one or more of them failed to delete the MEK from its terrorism roll, it might give the appearance of incoherence and even hypocrisy in US foreign policy. 

Brian M Downing is a political/military analyst and author of The Military Revolution and Political Change and The Paths of Glory: War and Social Change in America from the Great War to Vietnam. He can be reached at brianmdowning@gmail.com. 

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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Price deal?: Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline

May 17, 2012

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TAPI price deal close
By Robert M Cutler 

MONTREAL – Great anticipation surrounds next week’s meeting on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline project, as press reports from all sides suggest the possibility of a final agreement on transit fees. 

The 1,735 kilometer pipeline would run from southeastern Turkmenistan into Afghanistan, then parallel to the highway from Herat to Kandahar and finally via Quetta and Multan in Pakistan to the town of Fazilka in India. Pakistan and India would receive 13-14 billion cubic meters per year (bcm/y) of gas while Afghanistan’s take would be 5 bcm/y. 

The deal would have a lifespan of 30 years and require roughly one trillion cubic meters of Turkmenistan’s gas. Originally planned to be sourced from Dauletabad, the gas will instead, according to Turkmenistan’s President Gurbanguly Berdimuhamedow, come from the massive South Yolotan fields that the British auditing firm Gaffney Kline confirms to hold between 13.1 and 21.2 trillion cubic meters. 

The cost of construction has been estimated at US$7.6 billion, of which one-third would be financed by the Asian Development Bank, which has sponsored meetings among the various sides over the years. 

The four countries concerned signed a framework inter-governmental agreement in December 2010 that provided for three bilateral negotiations, between Turkmenistan and each of the other participating countries, over price and transit issues. While giving a certain advantage to Turkmenistan, this arrangement turned out operationally to be impractical because of the need for Afghanistan-Pakistan and Afghanistan-India transit fees to be in accord with one another. 

Disagreements arose and negotiations became complicated until January this year, when in a breakthrough Pakistan and India agreed at the ministerial level that the two countries plus Afghanistan had to agree a uniform tariff among themselves. 

It is the formula to fix such a uniform transit fee that has been under negotiation since then, which all sides have been publicly seeking to accelerate and holding more than monthly meetings to achieve. Notably, Pakistan and India have also agreed in principle to explore jointly the opportunities in Turkmenistan’s upstream oil sector. 

Various numbers concerning the price agreement have been bruited in the sub-continent’s press although these leaks must always been taken with a grain of salt. Nevertheless, the usually reliable Indian press in particular indicates that New Delhi has been doing everything possible to promote the price agreement. 

Indian Petroleum Ministry officials have confirmed to the Indian press that India will sign the Gas Sales and Purchase Agreement (GSPA) as soon as the cabinet approves the note prepared for its action. This confirmation comes after conflicting reports in the press during the last two weeks of April over whether the tariff levels for final price agreement had been agreed among the sides or not. 

The TAPI project has gained this appearance of momentum as the Iran-Pakistan natural gas pipeline project looks to be on its last legs. This latter project is the remnant of the Iran-Pakistan-India (IPI) so-called “peace pipeline” that foundered after New Delhi pulled out of talks with Tehran over exasperation with its continual attempts to reopen closed chapters of the negotiation and failure to respect agreements already reached, particularly over price and terms of delivery. 

The putative Iran-Pakistan natural gas pipeline would be sourced from the South Pars field and run over 1,100 km from Iran’s Assalouyeh Energy Zone in the south of the country through Iranshahr before crossing the border with Pakistan. Construction costs were estimated in 2009 at $7.4 billion. Initial capacity of 22 bcm/y seems, however, just as improbable as the cited possible final-stage volume of 55 bcm/y, which according to Iranian officials would anyway be contingent on Pakistan’s doubling at its own expense the pipeline to be laid inside Iran. 

Three years ago, a tentative accord set the price for Iran’s gas to Pakistan at a figure that would vary between $260 and $485 per thousand cubic meters, as a function of the average price of Japanese customs-cleared (JCC, nicknamed “Japan Crude Cocktail”) oil imports. However, even if the project is somehow kick-started, prices will have to be renegotiated, as Tehran’s new propositions are unrealistic and unaffordable. 

Further complicating the Iran-Pakistan pipeline is the fact that even the approximate route within Pakistan is far from defined. A consultant to the German company ILF, tasked with executing a feasibility study for Islamabad, has confirmed to the press that the Pakistani government has neither the finances nor the necessary technology to realize its side of the project. 

Reports continue meanwhile to accumulate that the Russian firm Gazprom is seriously rethinking its participation in the implementation of the project, specifically the furnishing of critical industrial technology such as compressor stations, and the Industrial and Commercial Bank of China has pulled out from funding the project. 

Even Pakistan’s own Oil and Gas Development Corporation and the National Bank of Pakistan withdrew from the project earlier this year, citing adverse implications for their foreign partnerships and businesses. 

Dr Robert M Cutler (http://www.robertcutler.org), educated at the Massachusetts Institute of Technology and The University of Michigan, has researched and taught at universities in the United States, Canada, France, Switzerland, and Russia. Now senior research fellow in the Institute of European, Russian and Eurasian Studies, Carleton University, Canada, he also consults privately in a variety of fields. 

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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NATO’s sexiest banquet!

May 17, 2012

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Who’s who at NATO’s banquet 
By M K Bhadrakumar 

The North Atlantic Treaty Organization (NATO) is still printing the invitation cards to its Chicago summit on Sunday. A card was printed for Pakistan President Asif Zardari on Wednesday. Pakistan became “eligible” following indications it will get down from the high horse and reopen the transit routes for military convoys into Afghanistan – despite the stubborn refusal by Washington to either apologize for the massacre of Pakistani soldiers last November in an air strike or terminate the deadly drone strikes on Pakistani villages. 

Pakistan will receive US$1 million per day from the North Atlantic Treaty Organization (NATO) as a transit fee. Is it a fair deal – an invitation to the NATO banquet at Chicago in lieu of the reopening of the transit routes? Pakistan’s main opposition parties do not think so. But then, the government in situ always knows better. Moreover, the Pakistani military wants it that way, too. 

Zardari is raring to go, which is only to be expected. To be seen at a dazzling party is a matter of national prestige. Also, NATO isn’t inviting any Tom, Dick or Harry. For instance, neither China’s nor India’s presidents have been invited to the charmed circle in Chicago. (Russia’s was sounded out and said nyet, but that is another complicated story; and, NATO wanted to invite Israel, but Turkey put its foot down and said hayir.) 

NATO’s guest list shows Western ingenuity and, in turn, it is also a road map of the West’s global strategies in the 21st century. How does the guest list look? What is most striking is that somewhat like in Dante’s Inferno, there are rings. 

The hardcore cluster comprises the 28 NATO member countries. The next layer is of 13 countries which are considered NATO’s “global partners” – Japan, South Korea, Australia, New Zealand from Asia-Pacific; Qatar, the United Arab Emirates and Morocco from the Middle East; Georgia from the Eurasian region; and Austria, Switzerland, Sweden and Finland from the good old European backyard. 

This is the creme le creme of NATO’s allies. The most glaring omissions are Indonesia and the Philippines (the latter despite being “frontline states” in the Asia-Pacific and willing to needle the Chinese dragon), Saudi Arabia (despite being the Western economies’ single-biggest gas station for well over half a century), Egypt, South Africa, Mexico, Brazil and Argentina (which are prima donnas in their regions). On the whole, it seems NATO feels rather uncomfortable with the Group of 20 club that is straining to be formed. 

Game of ‘tough love’ 
Moving further ahead, yet another outer ring comprises countries that are participants or collaborators of NATO’s Afghan war. These are the real “VIPs” (or “heroes”, depending on one’s point of view regarding the bloody Afghan war), because they put their necks on the block and attracted the attention of al-Qaeda to rescue NATO from the Afghan quagmire. They are (in alphabetical order and not in terms of their shedding of sweat and tears): Azerbaijan, Armenia, Bahrain, El Salvador, Ireland, Montenegro, Malaysia, Mongolia, Singapore, Ukraine and Tonga. 

It may come as a sensational detail that if the Afghan war is ever won, it could also be due to Tonga’s contribution, but facts are facts. 

The list is incomplete. This ring also has a sub-section that has Afghanistan (which is the main topic of discussion at the NATO summit) at the center surrounded by its neighbors from the Central Asian region. It seems Russia has been accommodated under this sub-head. Most certainly, Zardari goes into this niche. 

Russia is deputing merely its head of the Afghan desk at the Foreign Ministry in Moscow, making its displeasure loud and clear that it resents being excluded from NATO’s key meetings regarding the conduct of the Afghan war, which regularly take place in Brussels, rain or sunshine. But it is a “nuanced” displeasure, too. Russia has no objection to NATO’s Afghan war and is even an ardent votary of it. But Russia resents NATO’s monopoly of the war; the war should be “democratized”. 

The Central Asian states are deputing their foreign ministers because technically they are also members of the rival alliance known as “NATO of the East” – the Collective Security Treaty Organization (CSTO). 

CSTO is locked in a game of “tough love” with NATO: it rivals NATO as the principal military alliance in the post-Soviet space, but it also wants NATO’s recognition as an equal so that it can convince itself of its existence (which, unsurprisingly, NATO refuses to accord on Washington’s insistence, since the US would prefer to deal with the former Soviet republics individually rather than as Moscow’s junior partners). 

CSTO’s predicament is almost a mirror image of Russia’s – longing for a room and a warm bed in the common European home but insistently being kept out and ever looking in while the US selectively keeps engaging it highly selectively on areas of concern to American strategies. (NATO, too, may well selectively engage CSTO someday, for example, to nab drug traffickers in Central Asia who subvert the Afghan economy.) CSTO comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. 

All said, however, Moscow is unsure about NATO’s invitation to the Central Asian leaderships to attend the summit. It has misgivings about NATO’s intentions in Central Asia, especially against the backdrop of the impending establishment of US military bases in Central Asia. 

After all, one purpose of the Chicago summit is to build on the alliance’s “smart strategy”, which was adopted at the Lisbon summit in 2010 to project NATO as the only truly global security organization that could eventually operate even without a UN mandate in the world’s “hot spots”. 

What will worry Moscow is that NATO has already developed a taste for forcing “regime change” in foreign lands, as the Libyan war testifies – and if the current ominous trends over Syria are any indication it could do the same. 

Besides, NATO is baiting Central Asian states with offers that they are increasingly finding to be irresistible. The hard reality is that Central Asian regimes have developed vested interests in the Afghan war with NATO generously doling out lucrative contracts for sourcing goods and services to local companies that are front desks for the region’s elites. 

The US pays a handsome amount to Kyrgyzstan as the rent for Manas air base. Now there is talk that some of the weapons and equipment in Afghanistan may be gifted to Central Asian countries through the 2014 transition withdrawal period of the war. 

Clearly, a gravy train under NATO stewardship is moving into the Central Asian steppes, which would make Moscow feel uneasy. Nonetheless, it is interesting that the Central Asian states have taken a collective decision that their heads of state will keep away from the NATO summit in the gorgeous Windy City. Arguably, it is an act of supreme self-denial by the Central Asian leaderships in deference to Moscow’s sensitivity. 

A question for the chef 
Indeed, a key country neighboring Afghanistan has been scrupulously kept out of the NATO summit although its capacity to influence the tide of the Afghan war is quite appreciable still – Iran. 

A great opportunity has been lost in constructively engaging Iran. But then, US President Barack Obama decided to play it safe. 

President Mahmud Ahmadinejad is a mercurial personality, utterly charismatic and he might have ended up stealing the show that Obama has carefully, painstakingly choreographed to showcase his stature as a world leader. Too big a risk to take for Obama, no doubt, in a tricky presidential election year. Besides, Republican challenger Mitt Romney and the Israel Lobby would have given him a hard time explaining his “softness” toward Iran. 

Yet another ring on the NATO invitation chart comprises the four applicants who are waiting in the ante-room for NATO membership – Bosnia-Herzegovina, Georgia, Montenegro and Macedonia. 

Georgia has the unique distinction of figuring in three rings – as NATO’s global ally, its partner in the Afghan war and as an eligible full member. The hidden message behind this extravagant attention being paid to Georgia wouldn’t be lost on Moscow. Interestingly, President Vladimir Putin’s first official visitors from “abroad” have been the leaders of the breakaway Georgian regions of Abkhazia and South Ossetia. 

However, this is not to say that Moscow is apprehensive of an imminent decision by NATO to admit Georgia as a member. Putin can count on major European partners like Germany, France and Italy to ensure NATO doesn’t get into a confrontation with Russia. Putin has warmed up to the exit of Nicolas Sarkozy and the emergence of the socialist government in Paris. 

At any rate, Obama too would know that the priority in his second term – if he gets it – in the Oval Office ought to be to rework the US’s “reset” with Russia and make the Russian-American partnership predictable and optimally useful for the US’s global strategies – especially with the problem of China’s rise looming as a complex challenge. 

Admittedly, NATO’s invitation list gives a fair picture of what Marxist-Leninists would call the “co-relation of forces” in international politics today. The above is not the whole picture of global politics, but it is more than half the scenario on a highly fluid panorama. 

Let me end up uncharacteristically with a touch of hubris to ask: What is a NATO summit when China and India are minding their own business and ploughing their independent furrows? 

At a minimum, Brussels should have included a category of invitees labeled as “NATO + BRICS”. Surely, the BRICS – Brazil, Russia, India, China and South Africa – is no less important than the European Union in the making of the world of tomorrow. Indeed, the main chef at the banquet at Chicago should answer this question – Obama. 

Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey. 

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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Why Occupy scares Corporates?

May 15, 2012

Why the Occupy Movement Frightens the Corporate Elite

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Protesters with the Occupy Wall Street movement during a march in New York, May 1, 2012. Protesters with the Occupy Wall Street movement during a march in New York, May 1, 2012. (Photo: Ozier Muhammad / The New York Times)

In Robert E. Gamer’s book “The Developing Nations” is a chapter called “Why Men Do Not Revolt.” In it Gamer notes that although the oppressed often do revolt, the object of their hostility is misplaced. They vent their fury on a political puppet, someone who masks colonial power, a despised racial or ethnic group or an apostate within their own political class. The useless battles serve as an effective mask for what Gamer calls the “patron-client” networks that are responsible for the continuity of colonial oppression. The squabbles among the oppressed, the political campaigns between candidates who each are servants of colonial power, Gamer writes, absolve the actual centers of power from addressing the conditions that cause the frustrations of the people. Inequities, political disenfranchisement and injustices are never seriously addressed. “The government merely does the minimum necessary to prevent those few who are prone toward political action from organizing into politically effective groups,” he writes.

Gamer and many others who study the nature of colonial rule offer the best insights into the functioning of our corporate state. We have been, like nations on the periphery of empire, colonized. We are controlled by tiny corporate entities that have no loyalty to the nation and indeed in the language of traditional patriotism are traitors. They strip us of our resources, keep us politically passive and enrich themselves at our expense. The mechanisms of control are familiar to those whom the Martinique-born French psychiatrist and writer Frantz Fanon called “the wretched of the earth,” including African-Americans. The colonized are denied job security. Incomes are reduced to subsistence level. The poor are plunged into desperation. Mass movements, such as labor unions, are dismantled. The school system is degraded so only the elites have access to a superior education. Laws are written to legalize corporate plunder and abuse, as well as criminalize dissent. And the ensuing fear and instability—keenly felt this past weekend by the more than 200,000 Americans who lost their unemployment benefits—ensure political passivity by diverting all personal energy toward survival. It is an old, old game.

A change of power does not require the election of a Mitt Romney or a Barack Obama or a Democratic majority in Congress, or an attempt to reform the system or electing progressive candidates, but rather a destruction of corporate domination of the political process—Gamer’s “patron-client” networks. It requires the establishment of new mechanisms of governance to distribute wealth and protect resources, to curtail corporate power, to cope with the destruction of the ecosystem and to foster the common good. But we must first recognize ourselves as colonial subjects. We must accept that we have no effective voice in the way we are governed. We must accept the hollowness of electoral politics, the futility of our political theater, and we must destroy the corporate structure itself.

The danger the corporate state faces does not come from the poor. The poor, those Karl Marx dismissed as the Lumpenproletariat, do not mount revolutions, although they join them and often become cannon fodder. The real danger to the elite comes from déclassé intellectuals, those educated middle-class men and women who are barred by a calcified system from advancement. Artists without studios or theaters, teachers without classrooms, lawyers without clients, doctors without patients and journalists without newspapers descend economically. They become, as they mingle with the underclass, a bridge between the worlds of the elite and the oppressed. And they are the dynamite that triggers revolt.

This is why the Occupy movement frightens the corporate elite. What fosters revolution is not misery, but the gap between what people expect from their lives and what is offered. This is especially acute among the educated and the talented. They feel, with much justification, that they have been denied what they deserve. They set out to rectify this injustice. And the longer the injustice festers, the more radical they become.

The response of a dying regime—and our corporate regime is dying—is to employ increasing levels of force, and to foolishly refuse to ameliorate the chronic joblessness, foreclosures, mounting student debt, lack of medical insurance and exclusion from the centers of power. Revolutions are fueled by an inept and distant ruling class that perpetuates political paralysis. This ensures its eventual death.

In every revolutionary movement I covered in Latin America, Africa and the Middle East, the leadership emerged from déclassé intellectuals. The leaders were usually young or middle-aged, educated and always unable to meet their professional and personal aspirations. They were never part of the power elite, although often their parents had been. They were conversant in the language of power as well as the language of oppression. It is the presence of large numbers of déclassé intellectuals that makes the uprisings in Spain, Egypt, Greece and finally the United States threatening to the overlords at Goldman Sachs, ExxonMobil and JPMorgan Chase. They must face down opponents who understand, in a way the uneducated often do not, the lies disseminated on behalf of corporations by the public relations industry. These déclassé intellectuals, because they are conversant in economics and political theory, grasp that those who hold power, real power, are not the elected mandarins in Washington but the criminal class on Wall Street.

This is what made Malcolm X so threatening to the white power structure. He refused to countenance Martin Luther King’s fiction that white power and white liberals would ever lift black people out of economic squalor. King belatedly came to share Malcolm’s view. Malcolm X named the enemy. He exposed the lies. And until we see the corporate state, and the games it is playing with us, with the same kind of clarity, we will be nothing more than useful idiots.

“This is an era of hypocrisy,” Malcolm X said. “When white folks pretend that they want Negroes to be free, and Negroes pretend to white folks that they really believe that white folks want ‘em to be free, it’s an era of hypocrisy, brother. You fool me and I fool you. You pretend that you’re my brother and I pretend that I really believe you believe you’re my brother.”

Those within a demoralized ruling elite, like characters in a Chekhov play, increasingly understand that the system that enriches and empowers them is corrupt and decayed. They become cynical. They do not govern effectively. They retreat into hedonism. They no longer believe their own rhetoric. They devote their energies to stealing and exploiting as much, as fast, as possible. They pillage their own institutions, as we have seen with the newly disclosed loss of $2 billion within JPMorgan Chase, the meltdown of Chesapeake Energy Corp. or the collapse of Enron and Lehman Brothers. The elites become cannibals. They consume each other. This is what happens in the latter stages of all dying regimes. Louis XIV pillaged his own nobility by revoking patents of nobility and reselling them. It is what most corporations do to their shareholders. A dying ruling class, in short, no longer acts to preserve its own longevity. It becomes fashionable, even in the rarefied circles of the elite, to ridicule and laugh at the political puppets that are the public face of the corporate state.

“Ideas that have outlived their day may hobble about the world for years,” Alexander Herzenwrote, “but it is hard for them ever to lead and dominate life. Such ideas never gain complete possession of a man, or they gain possession only of incomplete people.”

This loss of faith means that when it comes time to use force, the elites employ it haphazardly and inefficiently, in large part because they are unsure of the loyalty of the foot soldiers on the streets charged with carrying out repression.

Revolutions take time. The American Revolution began with protests against the Stamp Act of 1765 but did not erupt until a decade later. The 1917 revolution in Russia started with a dress rehearsal in 1905. The most effective revolutions, including the Russian Revolution, have been largely nonviolent. There are always violent radicals who carry out bombings and assassinations, but they hinder, especially in the early stages, more than help revolutions. The anarchist Peter Kropotkin during the Russian Revolution condemned the radical terrorists, asserting that they only demoralized and frightened away the movement’s followers and discredited authentic anarchism.

Radical violent groups cling like parasites to popular protests. The Black Panthers, the American Indian Movement, the Weather Underground, the Red Brigades and the Symbionese Liberation Army arose in the ferment of the 1960s. Violent radicals are used by the state to justify harsh repression. They scare the mainstream from the movement. They thwart the goal of all revolutions, which is to turn the majority against an isolated and discredited ruling class. These violent fringe groups are seductive to those who yearn for personal empowerment through hyper-masculinity and violence, but they do little to advance the cause. The primary role of radical extremists, such as Maximilien Robespierre and Vladimir Lenin, is to hijack successful revolutions. They unleash a reign of terror, primarily against fellow revolutionaries, which often outdoes the repression of the old regime. They often do not play much of a role in building a revolution.

The power of the Occupy movement is that it expresses the widespread disgust with the elites, and the deep desire for justice and fairness that is essential to all successful revolutionary movements. The Occupy movement will change and mutate, but it will not go away. It may appear to make little headway, but this is less because of the movement’s ineffectiveness and more because decayed systems of power have an amazing ability to perpetuate themselves through habit, routine and inertia. The press and organs of communication, along with the anointed experts and academics, tied by money and ideology to the elites, are useless in dissecting what is happening within these movements. They view reality through the lens of their corporate sponsors. They have no idea what is happening.

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Dying regimes are chipped away slowly and imperceptibly. The assumptions and daily formalities of the old system are difficult for citizens to abandon, even when the old system is increasingly hostile to their dignity, well-being and survival. Supplanting an old faith with a new one is the silent, unseen battle of all revolutionary movements. And during the slow transition it is almost impossible to measure progress.

“Sometimes people hold a core belief that is very strong,” Fanon wrote in “Black Skin, White Masks.” “When they are presented with evidence that works against that belief, the new evidence cannot be accepted. It would create a feeling that is extremely uncomfortable, called cognitive dissonance. And because it is so important to protect the core belief, they will rationalize, ignore and even deny anything that doesn’t fit in with the core belief.”

The end of these regimes comes when old beliefs die and the organs of security, especially the police and military, abandon the elites and join the revolutionaries. This is true in every successful revolution. It does not matter how sophisticated the repressive apparatus. Once those who handle the tools of repression become demoralized, the security and surveillance state is impotent. Regimes, when they die, are like a great ocean liner sinking in minutes on the horizon. And no one, including the purported leaders of the opposition, can predict the moment of death. Revolutions have an innate, mysterious life force that defies comprehension. They are living entities.

The defection of the security apparatus is often done with little or no violence, as I witnessed in Eastern Europe in 1989 and as was also true in 1979 in Iran and in 1917 in Russia. At other times, when it has enough residual force to fight back, the dying regime triggers a violent clash as it did in the American Revolution when soldiers and officers in the British army, including George Washington, rebelled to raise the Continental Army. Violence also characterized the 1949 Chinese revolution led by Mao Zedong. But even revolutions that turn violent succeed, as Mao conceded, because they enjoy popular support and can mount widespread protests, strikes, agitation, revolutionary propaganda and acts of civil disobedience. The object is to try to get there without violence. Armed revolutions, despite what the history books often tell us, are tragic, ugly, frightening and sordid affairs. Those who storm Bastilles, as the Polish dissident Adam Michnik wrote, “unwittingly build new ones.” And once revolutions turn violent it becomes hard to speak of victors and losers.

A revolution has been unleashed across the globe. This revolution, a popular repudiation of the old order, is where we should direct all our energy and commitment. If we do not topple the corporate elites the ecosystem will be destroyed and massive numbers of human beings along with it. The struggle will be long. There will be times when it will seem we are going nowhere. Victory is not inevitable. But this is our best and only hope. The response of the corporate state will ultimately determine the parameters and composition of rebellion. I pray we replicate the 1989 nonviolent revolutions that overthrew the communist regimes in Eastern Europe. But this is not in my hands or yours. Go ahead and vote this November. But don’t waste any more time or energy on the presidential election than it takes to get to your polling station and pull a lever for a third-party candidate—just enough to register your obstruction and defiance—and then get back out onto the street. That is where the question of real power is being decided.

This piece was reprinted by Truthout with permission or license.
 
http://truth-out.org/opinion/item/9112-why-the-occupy-movement-frightens-the-corporate-elite
 
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