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What You're Missing in Our Subscriber-only CounterPunch Newsletter Blood Diamonds: the Inside Story An amazing expose by T.R. Naylor: How the "Blood" or "Conflict Diamonds" Myth peddled by NGOs Helped a Vicious Mining Company Shore Up Its Monopoly, Made a Pile of Money for A Washington Post Reporter and Leonardo di Caprio, Served As A Propaganda Myth in the "War on Terror" and had Nothing to Do With Osama Bin Laden. Pinochet is gone, and the world is a cleaner place. JoAnn Wypijewski recalls 1988 in Santiago, when Chile lost its fear. And yes, here they are in charge of Congress again, ready to facilitate a troop hike in Iraq. Alexander Cockburn re-introduces an old acquaintance: the Democrats--Party of War. Remember, we are funded solely by the subscribers to the print edition of CounterPunch. Please support this website by buying a subscription to our newsletter, which contains fresh material you won't find anywhere else, or by making a donation towards the cost of this online edition. Remember contributions are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now Get CounterPunch By Email for Only $35 a Year

Today's Stories January 6 / 7, 2007 Paul Craig Roberts The Urge to Surge January 5, 2007 Jorge Mariscal Growing the Military: Who Will Serve? John Walsh Clash of the Elites: Beltway Insiders vs. Neo-Cons! Christopher Brauchli The Great Relaxer: Bush and Federal Regulations Travis Sharpe No More New Nukes, Please Tom Barry Hawk for Hire: Roger Noriega's New Gig Linda Schade / Kevin Zeese Americans Voted for Peace: Has the New Congress Already Let Them Down? Tiffany Ten Eyck Workers' Centers and Unions: a New Alliance Mahmoud El-Yousseph A Challenge to Pelosi Lucinda Marshall 3003 Funerals: "And They're Still Burying Ford!" Website of the Day Van the Man: Warm Love January 4, 2007 Patrick Cockburn The Martyrdom of Saddam Hussein Winslow T. Wheeler A Guide to Earmarks: Will the Democrats' Reforms Do Anything to Curb Pork Barrel Spending? M. Shahid Alam Has Regime Change Boomeranged? Raed Jarrar So This is Plan B? The US Attack on Saleh Al-Mutlaq's Headquarters Bert Sacks Can the US Legally Kill Iraqi Children?: a Challenge to the Supreme Court Kathy Rentenbach Report from Oaxaca Stephen Fleischman The Rain of Riches: Bonuses, Then and Now George Bisharat Carter's Truths Peter Rost, MD Hail the Hangman, Jail the Cameraman! Evelyn Pringle Can Eli Lilly be Held Criminally Liable for Zyprexa? Website of the Day Courage to Resist   January 3, 2007 Kathy Kelly Wrapped Around a Bullet Paul Craig Roberts His Last Hurrah: Bush Cuts and Runs from Reason William Johnson No Worker is Illegal: SEIU Members Push Their Union to Change Its Policy on Immigration Stan Cox Under a Brown Cloud: Money vs. the Monsoon Trita Parsi A Lose-Lose Situation with Iran Declan McKenna Ireland's Slavish Hostility Toward Cuba Joe Bageant Dispatch from the Chinese Landfill Nicola Nasser Somalia: New Hotbed of Anti-Americanism Missy Beattie Dead Wrong Website of the Day Pharmed Out January 2, 2007 Michael Watts Oil Inferno Amina Mire Return of the Warlords: Death and Destruction for Somalis James Brooks Pushing the Wedge in Palestine Alevtina Rea The Tyrant is Dead! Long Live ... ? Al Krebs Global Food Security: a Call to Action Peter Rost Invitation to a Hanging: the Saddam Hussein Execution Video Niranjan Ramakrishnan A Deadly December John Stanton Appetites for Destruction Website of the Day Out Now: Petition   January 1, 2007 Patrick Cockburn Iron Man, Tin God: the Meaning of Saddam Hussein Uri Avnery What Makes Sammy Run? Joshua Frank Eliot Spitzer's Constitutional Hang Up: Architect of New York's Patriot Act   December 30 / 31, 2006 Weekend Edition Alexander Cockburn 2006, Hard to Call It Vintage, But 2007 Could Finally Be Bobby Byrd's Year Patrick Cockburn Iraq 2006: a Nation Soaked in Blood Tears Itself Apart Paul Wolf Dying for Our Sins: A Lawyer for Saddam Describes How His Execution on the First of Eid May Transform Him Into a Martyr Manuel Garcia, Jr. Executing Saddam, Protecting the Rackets Tariq Ali Saddam at the End of a Rope Paul Craig Roberts The New Dark Age: Official Lies, Dogma and Unaccountable Power Douglas Valentine At the End of My Rope: Hanging With Saddam Brian M. Downing The New Iraq Policy: Escalation Michael Donnelly Injustice in Black and White: the Duke Non-Rape Case Stephen Lendman Did Sharon Order the Assassination of Arafat? The Revelations of Uri Dan Fred Gardner Comes Now the Ghost of "Decrim:" Nixon and Marijuana Bailly / Caudron / Lambert Who Owns Ikea?: the Opaque Legacy of Ingvar Kamprad Ralph Nader The Prospects for Progressive Politics Nick Dearden The War on Terror Hits Africa Elizabeth Weill-Greenberg The Third Degree: an Interview with AC Thompson on the Origins of the CIA's Secret Rendition Flights Missy Beattie In Harm's Way: How Our National Coward Describes War Ron Jacobs Sigh of the Oppressed: Religion and Politics Dan La Botz Defend Illegal Immigrants: Help Them! Harbor Them! Andrew Wimmer An Act of Contrition: the Peace Movement in 2007 Dr. Carol Wolman, MD Psychiatrist: Impeach Bush for Good of Country Martha Rosenberg New Year's Resolutions for Big Pharma Dick J. Reavis News Before It Happens: Bush's 2007 MLK Day Speech Jeffrey St. Clair Listening to James Brown and His Followers Poets' Basement Grima, Curtis, Davies, Orloski and Engel Website of the Weekend Charlie Fowler's Photolog: a Life at Altitude Music Video of the Weekend "We're Winning the War on Drugs!" December 29, 2006 Bill Quigley A Tale of Two Sisters: Why is HUD Spending Tens of Millions in Katrina Money to Bulldoze 4,534 Public Housing Apartments in New Orleans? Norman Finkelstein The Dershowitz Treatment John Borowski Curb Your Environmentalism: Laurie David and Me Abid Mustafa The Re-Talibanization of Afghanistan Greg Moses World Responds to Palestinian Family's Jailing Despite Media Blackout Uri Cohen Stand Up for Herod: a Seasonal Story of Ancient Palestine Bailly / Caudron / Lambert The Secrets in Ikea's Closet Website of the Day Justice for New Orleans   December 28, 2006 Norman Finkelstein The Ludicrous Attacks on Jimmy Carter's Book Anthony Cowell Highway Robbery: Privatizing New Jersey's Toll Roads John Ross Gateway to the Next Mexican Revolution? Hilaria Cruz I'm Going to Stay Right Here: Story of a Oaxacan Prisoner Greg Moses Palestinian Immigrant Jailings in Texas Brittany Bond The Blood Trail of Luis Posada Carriles, Washington's Preferred Terrorist Website of the Day Godfather of Soul and Father of Funk   December 27, 2006 Alexander Cockburn Farewell to Our Greatest President: Adieu, Gerald Ford Faruq Ziada Is There a Sunni Majority in Iraq? Christopher Brauchli Burning EPA's Books: What They Don't Want You to Read Might Save Your Life Michael Ortiz Hill Journey to Vietnam: Dare We Not Say Genocide? Nikolas Kozloff Saving Caracas Mark Schneider Why Hope? Reasons for Optimism December 26, 2006 Peter Stone Brown James Brown: Please Don't Go Tito Tricot Chile: the Ghosts of Torture Gary Leupp Cowboys Differ on Iran Attack: Cheney/Bush vs. the Baker Commission John V. Walsh Dershowitz vs. Carter in Beantown: Peace Movement AWOL, Again Reza Fiyouzat Red Christmas: Why Santa Was Hot in China This Year Ron Jacobs The Golem: a Conversation with Marc Estrin Website of the Day JB: Prisoner of Love December 25, 2006 Saul Landau A Jeep Trip with Fidel Lang / McGovern To Surge or Not to Surge? Michael Dickinson Should Stupid Thoughts Be Crimes?: Deny Santa If You Will, But ... Website of the Day James Brown, RIP December 23 / 24, 2006 Marjorie Cohn What's Going On? Jeffrey L. Gould The Capital of Salvadoran Memory: El Mozote After 25 Years Diane Christian The Rape of Iraq William Loren Katz From the Raid on "Fort Negro" to Iraq: Lessons from the First US Invasion Greg Moses This War Can't be Made Right by Winning M. Shahid Alam An Islamic Civil War: Chaos by Design? Fred Gardner Exposé as Inoculant: HRT, Zyprexa, Lilly and the Press Dave Lindorff Crime of the Century Azmi Bishara Ways of Denial Ralph Nader The BCS: a Monopoly on College Football Seth Sandronsky Fiscally Imperiled Social Security? William Hughes Cop Assaults Activists at Lockheed Protest Ron Jacobs Making Stones Weep Jeffrey St. Clair Playlist: What I'm Listening to on New Year's Eve   December 22, 2006 David Rosen Bush's Foreign Sex Policy: Imperialism's Second Front Christopher Brauchli When the Secret is the Question: Secret Prisons, Top Secret Interrogations John Ross Flashlights in the Tunnel of Hate J.L. Chestnut, Jr. Political Sell-Outs in Black and White Rahul Mahajan Dennis Kucinich: Maverick or Stalking Horse? Arthur Neslen Provoking Civil War in the Occupied Territories Peter Rost, MD The Secrets of His Success: Fired Pfizer CEO Walks Away with $198 Million Website of the Day 10 Ways to Change the World in 2007 December 21, 2006 Rosa Mariam Elizalde An Interview with Gore Vidal: "I am Jealous of Cuba" Arundhati Roy Breaking the News Brian Cloughley Poppies Rising: Afghanistan's Drug Catastrophe Daniel White Jimmy Carter in Austin: Time to Come Clean on the Shoot Down of That Itavia DC-9 John V. Whitbeck On Israel's Right to Exist Sam Smith Still Smearing Ralph Nader for 2000 Paris Reidhead GM Ice Cream: Something's Fishy in Your Good Humor Bar Kevin Wehr Denying Disaster: Katrina and the Case for Impeachment Website of the Day Pesticides and Amphibians: a Vital New Database December 20, 2006 Gabriel Kolko Rumsfeld and the American Way of War Winslow T. Wheeler The Pentagon Measures the Chaos in Iraq Tariq Ali The War is Lost Saree Makdisi Israel, Apartheid and Jimmy Carter Bruce Jackson Saying "Oh!": John Mohawk and the Power to Make Peace Dave Lindorff Democrats Walk Into a Bush Trap on Iraq Leslie Radford The Winter Harvest of the South Central Farmers Dave Jansson Divided We Stand, United We Fall: Secessionists Confront the Empire Johnny Barber Jesus is a Terrorist Website of the Day Is It for Freedom? December 19, 2006 Alexander Cockburn Democrats Prepare to Fund Longer War Jonathan Cook End of the Strongmen Greg Moses Globalized Gulag: Palestinian Refugees and Children Held in Hutto, TX Jail Sean Penn Georgie, There's a Crowd Downstairs Dave Lindorff Innocents Abroad: Cracking Down on Gitmo Detainees Despite Overwhelming Evidence Most Are Not Terrorists Ralph Nader Going Postal Laura Carlsen Latin America's Pink Tide? Carlos Villarreal The Well is Poisoned: Victory Requires an Immediate Pull-Out Website of the Day Chuck Spinney on the Pentagon December 18, 2006 Luis J. Rodriguez En Lak Ech: Chicanos, Mayans and Mel Gibson Norman Solomon Washington Refuses to End the War: Powell, Baker, Hamilton--Thanks for Nothing! Uri Avnery Lebanon: War Without a Plan Ron Jacobs More Troops, More Body Bags Phil Gasper Afghanistan: Bush's Other War Unravels Behrooz Ghamari-Tabrizi Iran's Elections: The World Isn't Florida and Bush Isn't Its Supreme Leader William Blum The United States of Punishment Jim Goodman So What's the Big Deal If Wal-Mart Makes a Mistake? James Brooks Talking Surge: Let's Kill Some More Before We Go Maria C. Khoury Walking Into the Art World: Designing a Palestinian Academy for the Arts Website of the Day Got Powell December 16 / 17, 2006 Weekend Edition Vijay Prashad A Perilous Way to Socialism Saul Landau Filming Fidel Anthony Arnove The US Occupation of Iraq: Act III of a Tragedy of Many Parts Paul Cantor The Puppet and the Puppeteer: Pinochet and Kissinger Annie Nocenti Baluchistan's Fight: The Khan of Kalat Gathers the Tribes Nicole Colson Hard Times on the Killing Floor: Smithfield's Rotten Record Stephen Gowans Tehran's Holocaust Conference Jordan Flaherty A Catastrophic Failure: Foundations, Nonprofits and the Second Looting of New Orleans Fred Gardner Dustin Costa Faces 15 to Life P. Sainath There's No Such Thing as a Free Cow Seth Sandronsky The Democrats and Social Security: Watch What the Party Says and Does Nadia Hijab An AIPAC Shot Across Baker's Bow? Deb Reich Dear Santa, (Or Someone): Greetings from the Occupied Holy Lands Susie Day Cops Shoot Another Rich White Man! Albert Wan Why Does It Take 50 Bullets? Missy Beattie Will the Next Leader Stand Up? Please! Martha Rosenberg Kicking the Wyeth Habit Saves Women's Lives Lee Ballinger The Devil's Highway: Clinton, Border Checkpoints and the Deaths of the Yuma 14 Michael Dickinson Kingdom of Fear Jeffrey St. Clair Live/Evil: Listening to Miles Davis Poets' Basement Davies, Buknatski and Ford Website of the Weekend "I Heard It Through the Grapevine"   December 15, 2006 Eliza Ernshire Palestinian "Civil War" and the Israeli Chocolate Ration Virginia Tilley What Are You Going to Do Now, Israel? Mike Ferner Roll Call for the Choir: If They Vote for War, Occupy 'Em! John Ross Mad Mel's Mayan Apocalypse Fred Wilhelms The Flip Side of Ahmet Ertegun: Where Did You Get Those Shoes? Kevin Zeese Dennis Kucinich's Strange Mission: Can You Be a Real Anti-War Candidate in a Pro-War Party? David Severn Social Engineering Begins at Home: Jeffrey Skoll, Billionaire Philantropist Dave Lindorff Sen. Tim Johnson Death Watch: Senate Gridlock May Be Best Outcome Sunsara Taylor As American as Shopping and Torture Website of the Day June 2, 2004: When Iraq Was There For The Looting   December 14, 2006 Jonathan Cook The Recognition Trap Riz Khan An Interview with Jimmy Carter Jason Hribal Kasatka, the Sea World Orca Pennick / Gray The Plight of Black Farmers: Racism in the US Farm Program Richard Levins That Embezzled Anti-Castro Money Pat Williams The College Crisis: Universal Access, Student Loan Debts and Pell Grants Peter Rost, MD Simply Irresistible: Do Women Prefer Bad Boys? Website of the Day The Sound of Rummy   December 13, 2006 Patrick Cockburn Iraq is Beyond Repair Greg Moses The Dixie Chicks Come Home to Roost Elizabeth Schulte Hungry for the Holidays Joshua Frank Death By Coke Debra Eschmeyer Corporations Control Your Dinner Leon Hadar Baker's Rescue Mission: Too Little, Too Late Peter Rost, MD I've Been a Very Bad Boy Margaret Knapke Mow bé and Malachi, Presenté! Reza Fiyouzat Are Cows Free? Fred Wilhelms A Last Minute Appeal: If You Know One of These Musicians Let Them Know They Are Owed Money--By Friday! Website of the Day The Crimes of Augusto Pinochet December 12, 2006 Fernando A. Torres The Last Man of the Junta: an Open Letter to Kissinger from One of Pinochet's Political Prisoners Paul Craig Roberts America's Injustice System is Criminal Stephen Soldz Abusive Interrogations Uri Avnery Baker's Cake William S. Lind Knocking Opportunity: From Vulcans to Vultures in Iraq Missy Beattie Convicted for Our Convictions: Trespassing for Truth at the UN Dave Lindorff The 35-Year Long Scream: Torture, Impeachment and a Vietnam Vet's Tears George Pyle Our Perverse Farm Plan: Where Christmas Comes Every Five Years Norman Solomon Is the USA the Center of the World? Website of the Day Citizens' War Tribunal   December 11, 2006 Virginia Tilley Banning Mandela Roger Burbach The Condor Model: the Atrocities of Pinochet and the US Col. Douglas MacGregor There's Only One Option Left: Leave! Fawwas Traboulsi Lebanon on the Brink Ron Jacobs Death of a Pig: Poetic Justice for Pinochet Gideon Levy The Cruel Line into Gaza: Elbow to Elbow, Like Cattle Mary McGrane Burning Books at Harvard Law Bernardo Ruiz The Disappeared of Oaxaca: a Message from One of the Actors in Apocalypto Website of the Day La Cancion de la Unidad Video of the Day Killing Castro: Congresswoman as Contract Killer?   December 9 / 10, 2006 Weekend Edition Alexander Cockburn Liberal Consensus for More Troops in Iraq Sen. Gordon Smith Out of Iraq: Cut and Run or Cut and Walk Greg Grandin Jeane Kirkpatrick, Mid-Wife of the Neo-Cons Paul Craig Roberts How Many More Will Die for Bush's Ego? Col. Dan Smith The Vietnamization of Iraq: Inside the Military Training Program Ralph Nader The Man from NAM: John Engler's Trail of Destruction Behrooz Ghamari The Donkey and the Date: Iran's Upcoming Municipal Elections Rev. Willliam Alberts Doing Unto Others: Pastor Haggard and President Bush James T. Phillips The James Gang: "Did You Kill Her?" Bennis / Leaver A Bi-Partisan Occupation Dave Lindorff A Congress of Hucksters and Pipsqueaks Nikolas Kozloff Robert Gates and Venezuela: Another Saber Rattler in Latin America Seth Sandronsky Activating White Racism Lucinda Marshall McKinney and Karpinsky: Silenced for Telling the Truth Mike Whitney Something's Gotta Give: James Baker vs. the Lobby John V. Whitbeck Recommendation No. 80 Faisal Kutty Is the Universal Declaration of Human Rights Merely a Western Construct? Hugh Sansom Smearing Jimmy Carter: an Open Letter to the New York Times Robert Gold My South American Journey: Impunity in Colombia Boots Riley Crash and Burn: an Urgent Message from The Coup Jeffrey St. Clair Playlist: What I'm Listening to This Week Poets' Basement Engel & Buknatski Website of the Weekend Alive in Mexico December 8, 2006 Patrick Cockburn The Iraq Study Group's Cautious Appraisal Leutisha Stills Just How Progressive is the Congressional Black Caucus? Norman Finkelstein The Media Lynching of Jimmy Carter Will Youmans Mr. Lieberman Comes to Washington: Brookings Hosts an Ethnic Cleanser Peter Rost, MD What Went Wrong at Pfizer? Jonathan Demme My Friend Bruce Langhorne: a Great Musician Needs Your Help! Ray McGovern Senate Democrats Give Gates a Free Pass Lucinda Marshall What She Wore Tariq Ali / Robin Blackburn The Lost John Lennon Interview Website of the Day John Lennon's FBI Files   December 7, 2006 Alex Friedman Rev. Phelps' Hate-Fueled Fanatics Find a Home in the Kansas Prison Industry Maureen Webb Risk Scoring and the National Insecurity State Paul Craig Roberts Catastrophe Still Awaits Dave Lindorff Prosecutor Admits: Mumia Abu-Jamal Had "No True Defense" Matt Vidal Drug Pushers, Inc.: Power and Profit in the Legal Drug Trade Yifat Susskind Looking for a Few Good Principles: What Should be Done in Iraq Rodriguez / Jones NYPD's Death Squads: From Diallo to Sean Bell Website of the Day 2006, Remixed December 6, 2006 Robert Bryce Omitting the Obvious with James Baker: From the S&L Crisis to the Iraq Study Group William S. Lind The Boomerang Effect: When Will the First IED Strike Cincy? Zoe Blunt The Clearcut Truth About the Great Bear Rainforest Corporate Crime Reporter The New Conventional Wisdom: Prosecute Individuals, Not Corporations Amira Hass A Regrettable Indifference: Israel's Treatment of Palestinian Prisoners Richard W. Behan The Surreal Politics of Premeditated War Sophie McNeill Why Hezbollah is Broadcasting Sunday Mass December 5, 2006 Virginia Tilley Apartheid Israel: a Beacon of Hope? Sharon Smith The New Washington Consensus: Blame the Victims in Iraq Joe Bageant Somewhere a Banker Smiles Ron Jacobs A War Washington Can't Win Norman Solomon Media Consensus, Stay in Iraq! Mike Whitney Rumsfeld's Final Snowflake: "I Was Just About to Change Everything ... " Derrick O'Keefe Regimes Unchanged: Chavez's Victory Strengthen's Cuba Julian Assange The Road to Hanoi Missy Beattie Bush, the Unhappy Helmsman Website of the Day Lessons of Suez and Iraq   December 4, 2006 Alexander Cockburn Gaza and Darfur George Ciccariello-Maher Tears of the Escualidos: Election Diary, Venezuela Ray McGovern Lame Ducks, Hold That Nomination!: a CIA Insider's Take on Gates John Ross Repression on the Menu in Mexico Walden Bello Hurricane Milton: Friedman, Bayonets and Markets Peter Rost, MD Pfizer's Clueless Executives Stephen Lendman The Withering of the Bush Dynasty Gideon Levy This Ceasefire will Go Up in Flames Website of the Day The "Babes" of Hizbullah?   December 2 / 3, 2006 Weekend Edition Barucha Calamity Peller The Dirty War of Oaxaca Paul Craig Roberts Is Bush Sane?: When Denial Goes Pathological Ralph Nader The Big Boys of Financial Crime Winslow T. Wheeler Committee of Enablers: Is Gates Fit to Serve? Are the Senators? Amira Hass The Checkpoint Generation Maymanah Farhat Depoliticizing Arab Art: Christie's and the Rush to "Discover" the Arab World Dave Lindorff Fighting the Iraq War--At Home Fred Gardner Dr. Jimenez Defends His Practice Methods Col. Dan Smith The Semantics of Civil War Raed Jarrar Maliki's Monopoly of Power Seth Sandronsky US Prison Nation: Locking Up Surplus Labor K.-Y. Taylor The Bride Wore Black: the Shooting of Sean Bell and the Resurgence of American Racism Yifat Susskind Greed, Dogma and AIDS David Rosen Made in China: the Global Trade in Sex Toys Ron Jacobs All Hands on Deck!: the New Pirates of the Caribbean Nikolas Kozloff Venezuela Prepares to Vote Talli Nauman Fighting La Choya: the Secret Toxic Dump on the Border Alan Gregory Shadow Trout: Why Hatchery Fish Aren't Real Joe Allen RFK and Hollywood Mythmaking: Emilio Estevez's Beatification of Bobby Kennedy St. Clair / D'Antoni Playlist: What We're Listening to This Week Poets' Basement Davies, Engel, Ford and Orloski Website of the Day Demo for Oaxaca   December 1, 2006 Greg Grandin Midnight in Mexico: Calderón's Inauguration Behind Closed Doors Linn Washington, Jr. The Mumia Case After 25 Years: Still More Keystone Kops Antics George Ciccariello-Maher Sleeping with the Enemy: At Home with the Anti-Chavistas Brian J. Foley Taking Responsibility for Iraq Dave Zirin Rebel Athletes: Organizing the Jocks for Justice Joshua Frank The Montana Formula: Jon Tester's Neopopulism Chris Floyd Hideous Kinky: Thomas Friedman Comes Undone Ingmar Lee Atomic Porker Strikes Indian Point Nuke Plant Manuel Garcia, Jr. Dark Fire: the Fall of WTC 7 Website of the Day No Gun Ri Revisited Video of the Day Drunken Hack Goes Ape at Aussie "Pulitzers"     Subscribe Online

Weekend Edition January 6 / 7, 2007 Down But Not Out Globalization in Retreat? By WALDEN BELLO When it first became part of the English vocabulary in the early 1990s, globalization was supposed to be the wave of the future. Fifteen years ago, the writings of globalist thinkers such as Kenichi Ohmae and Robert Reich celebrated the advent of the emergence of the so-called borderless world. The process by which relatively autonomous national economies become functionally integrated into one global economy was touted as "irreversible. " And the people who opposed globalization were disdainfully dismissed as modern day incarnations of the Luddites that destroyed machines during the Industrial Revolution. Fifteen years later, despite runaway shops and outsourcing, what passes for an international economy remains a collection of national economies. These economies are interdependent no doubt, but domestic factors still largely determine their dynamics. Globalization, in fact, has reached its high water mark and is receding. Bright Predictions, Dismal Outcomes During globalization's heyday, we were told that state policies no longer mattered and that corporations would soon dwarf states. In fact, states still do matter. The European Union, the U.S. government, and the Chinese state are stronger economic actors today than they were a decade ago. In China, for instance, transnational corporations (TNCs) march to the tune of the state rather than the other way around. Moreover, state policies that interfere with the market in order to build up industrial structures or protect employment still make a difference. Indeed, over the last ten years, interventionist government policies have spelled the difference between development and underdevelopment, prosperity and poverty. Malaysia's imposition of capital controls during the Asian financial crisis in 1997-98 prevented it from unraveling like Thailand or Indonesia. Strict capital controls also insulated China from the economic collapse engulfing its neighbors. Fifteen years ago, we were told to expect the emergence of a transnational capitalist elite that would manage the world economy. Indeed, globalization became the "grand strategy" of the Clinton administration, which envisioned the U.S. elite being the primus inter pares -- first among equals -- of a global coalition leading the way to the new, benign world order. Today, this project lies in shambles. During the reign of George W. Bush, the nationalist faction has overwhelmed the transnational faction of the economic elite. These nationalism-inflected states are now competing sharply with one another, seeking to beggar one another's economies. A decade ago, the World Trade Organization (WTO) was born, joining the World Bank and the International Monetary Fund (IMF) as the pillars of the system of international economic governance in the era of globalization. With a triumphalist air, officials of the three organizations meeting in Singapore during the first ministerial gathering of the WTO in December 1996 saw the remaining task of "global governance" as the achievement of "coherence," that is, the coordination of the neoliberal policies of the three institutions in order to ensure the smooth, technocratic integration of the global economy. But now Sebastian Mallaby, the influential pro-globalization commentator of the Washington Post, complains that "trade liberalization has stalled, aid is less coherent than it should be, and the next financial conflagration will be managed by an injured fireman." In fact, the situation is worse than he describes. The IMF is practically defunct. Knowing how the Fund precipitated and worsened the Asian financial crisis, more and more of the advanced developing countries are refusing to borrow from it or are paying ahead of schedule, with some declaring their intention never to borrow again. These include Thailand, Indonesia, Brazil, and Argentina. Since the Fund's budget greatly depends on debt repayments from these big borrowers, this boycott is translating into what one expert describes as "a huge squeeze on the budget of the organization." The World Bank may seem to be in better health than the Fund. But having been central to the debacle of structural adjustment policies that left most developing and transitional economies that implemented them in greater poverty, with greater inequality, and in a state of stagnation, the Bank is also suffering a crisis of legitimacy. But the crisis of multilateralism is perhaps most acute at the WTO. Last July, the Doha Round of global negotiations for more trade liberalization unraveled abruptly when talks among the so-called Group of Six broke down in acrimony over the U.S. refusal to budge on its enormous subsidies for agriculture. The pro-free trade American economist Fred Bergsten once compared trade liberalization and the WTO to a bicycle: they collapse when they are not moving forward. The collapse of an organization that one of its director generals once described as the "jewel in the crown of multilateralism" may be nearer than it seems. Why Globalization Stalled Why did globalization run aground? First of all, the case for globalization was oversold. The bulk of the production and sales of most TNCs continues to take place within the country or region of origin. There are only a handful of truly global corporations whose production and sales are dispersed relatively equally across regions. Second, rather than forge a common, cooperative response to the global crises of overproduction, stagnation, and environmental ruin, national capitalist elites have competed with each other to shift the burden of adjustment. The Bush administration, for instance, has pushed a weak-dollar policy to promote U.S. economic recovery and growth at the expense of Europe and Japan. It has also refused to sign the Kyoto Protocol in order to push Europe and Japan to absorb most of the costs of global environmental adjustment and thus make U.S. industry comparatively more competitive. While cooperation may be the rational strategic choice from the point of view of the global capitalist system, national capitalist interests are mainly concerned with not losing out to their rivals in the short term. A third factor has been the corrosive effect of the double standards brazenly displayed by the hegemonic power, the United States. While the Clinton administration did try to move the United States toward free trade, the Bush administration has hypocritically preached free trade while practicing protectionism. Indeed, the trade policy of the Bush administration seems to be free trade for the rest of the world and protectionism for the United States. Fourth, there has been too much dissonance between the promise of globalization and free trade and the actual results of neoliberal policies, which have been more poverty, inequality, and stagnation. One of the very few places where poverty diminished over the last 15 years is China. But interventionist state policies that managed market forces, not neoliberal prescriptions, were responsible for lifting 120 million Chinese out of poverty. Moreover, the advocates of eliminating capital controls have had to face the actual collapse of the economies that took this policy to heart. The globalization of finance proceeded much faster than the globalization of production. But it proved to be the cutting edge not of prosperity but of chaos. The Asian financial crisis and the collapse of the economy of Argentina, which had been among the most doctrinaire practitioners of capital account liberalization, were two decisive moments in reality's revolt against theory. Another factor unraveling the globalist project is its obsession with economic growth. Indeed, unending growth is the centerpiece of globalization, the mainspring of its legitimacy. While a recent World Bank report continues to extol rapid growth as the key to expanding the global middle class, global warming, peak oil, and other environmental events are making it clear to people that the rates and patterns of growth that come with globalization are a surefire prescription for ecological Armageddon. The final factor, not to be underestimated, has been popular resistance to globalization. The battles of Seattle in 1999, Prague in 2000, and Genoa in 2001; the massive global anti-war march on February 15, 2003, when the anti-globalization movement morphed into the global anti-war movement; the collapse of the WTO ministerial meeting in Cancun in 2003 and its near collapse in Hong Kong in 2005; the French and Dutch peoples' rejection of the neoliberal, pro-globalization European Constitution in 2005 -- these were all critical junctures in a decade-long global struggle that has rolled back the neoliberal project. But these high-profile events were merely the tip of the iceberg, the summation of thousands of anti-neoliberal, anti-globalization struggles in thousands of communities throughout the world involving millions of peasants, workers, students, indigenous people, and many sectors of the middle class. Down but not out While corporate-driven globalization may be down, it is not out. Though discredited, many pro-globalization neoliberal policies remain in place in many economies, for lack of credible alternative policies in the eyes of technocrats. With talks dead-ended at the WTO, the big trading powers are emphasizing free trade agreements (FTAs) and economic partnership agreements (EPAs) with developing countries. These agreements are in many ways more dangerous than the multilateral negotiations at the WTO since they often require greater concessions in terms of market access and tighter enforcement of intellectual property rights. However, things are no longer that easy for the corporations and trading powers. Doctrinaire neoliberals are being eased out of key positions, giving way to pragmatic technocrats who often subvert neoliberal policies in practice owing to popular pressure. When it comes to FTAs, the global south is becoming aware of the dangers and is beginning to resist. Key South American governments under pressure from their citizenries derailed the Free Trade of the Americas (FTAA) -- the grand plan of George W. Bush for the Western hemisphere -- during the Mar del Plata conference in November 2005. Also, one of the reasons many people resisted Prime Minister Thaksin Shinawatra in the months before the recent coup in Thailand was his rush to conclude a free trade agreement with the United States. Indeed, in January this year, some 10,000 protesters tried to storm the building in Chiang Mai, Thailand, where U.S. and Thai officials were negotiating. The government that succeeded Thaksin's has put the U.S.-Thai FTA on hold, and movements seeking to stop FTAs elsewhere have been inspired by the success of the Thai efforts. The retreat from neoliberal globalization is most marked in Latin America. Long exploited by foreign energy giants, Bolivia under President Evo Morales has nationalized its energy resources. Nestor Kirchner of Argentina gave an example of how developing country governments can face down finance capital when he forced northern bondholders to accept only 25 cents of every dollar Argentina owed them. Hugo Chavez has launched an ambitious plan for regional integration, the Bolivarian Alternative for the Americas (ALBA), based on genuine economic cooperation instead of free trade, with little or no participation by northern TNCs, and driven by what Chavez himself describes as a "logic beyond capitalism." Globalization in Perspective From today's vantage point, globalization appears to have been not a new, higher phase in the development of capitalism but a response to the underlying structural crisis of this system of production. Fifteen years since it was trumpeted as the wave of the future, globalization seems to have been less a "brave new phase" of the capitalist adventure than a desperate effort by global capital to escape the stagnation and disequilibria overtaking the global economy in the 1970s and 1980s. The collapse of the centralized socialist regimes in Central and Eastern Europe deflected people's attention from this reality in the early 1990s. Many in progressive circles still think that the task at hand is to "humanize" globalization. Globalization, however, is a spent force. Today's multiplying economic and political conflicts resemble, if anything, the period following the end of what historians refer to as the first era of globalization, which extended from 1815 to the eruption of World War I in 1914. The urgent task is not to steer corporate-driven globalization in a "social democratic" direction but to manage its retreat so that it does not bring about the same chaos and runaway conflicts that marked its demise in that earlier era. Walden Bello is professor of sociology at the University of the Philippines and executive director of the Bangkok-based research and advocvacy institute Focus on the Global South. An extended version of this piece titled "The Capitalist Conjuncture: Overaccumulation, Financial Crises, and the Retreat from Globalization," appears in the latest issue of Third World Quarterly (Vol. 27, No. 8, 2006).

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