Mike Whitney: The dollar is toast. The IMF is toast. The US debt market (US Treasuries) is toast. The institutions that support US power are crumbling before our very eyes. The BRICS have had enough; enough war, enough Wall Street, enough meddling and hypocrisy and austerity and lecturing. This is farewell.
UJUH: South Africa is pushing two high profile candidates into the top leadership layer of the BRICS New Development Bank (NDB).
These two are Tito Mboweni who has been appointed as the Non-Executive Director to the Board of the BRICS New Development Bank and Lesley Maasdorp who has been nominated to become one of four Vice Presidents of the BRICS New Development Bank (NDB).
When the World Economic Forum named Maasdorp as a Young Global Leader in 2007, he was already a matured leader. This is after serving the ANC’s economic desk in the pre 1994 era and then graduating into public service. He served as a special advisor to the minister of labour, Tito Mboweni. He then moved to become deputy director in the department of public enterprises where he oversaw major state assets restructuring and privatisation of the time. Maasdorp broke into the top business league in the mid 2000s with positions at different intervals that included; President of Bank of America Merrill Lynch for Southern Africa, Vice Chairman of Barclays Capital and Absa Capital and International Adviser to Goldman Sachs.
Andre Vltchek: “Among the BRICS, there is no place for countries that are siding with the colonialist powers, as there is no place for those nations that are tormenting and sacrificing their own people. For now it is still just an acronym of the countries, its members. But soon, who knows, it may be interpreted as the Broad Revolutionary Internationalist Causeway towards Socialism.”
RT.com: While investors drop Greece like a hot potato Russian and Chinese companies plan to take part in the privatization of Greek state assets, considering them a good investment.
Russia’s leading gas producer Gazprom is considering taking part in the privatization of the Greek gas company DEPA and grid operator DESFA. The Greek Government is currently inviting bids for DEPA, but it plans to keep 34% of DESFA, Reuter reports.
Experts estimate a controlling stake in DEPA would cost about $1.5 billion.
In June 2014, I wrote a commentary on the question of Russian imperialism, making the case that even if it didn’t meet the yardstick established by Lenin in 1914, it was still imperialist in the same sense that Japan was in the 1930s or for that matter Czarist Russia, which colonized nations on its borders. On the other side of the debate, Roger Annis maintained that there are no significant Russian or Chinese banks so how can they be imperialist?
That may be the case but the New Development Bank is projected to be a competitor to the World Bank and a major financier of 3rd world development projects that would supposedly put the interests of the people over profits. Somehow this does not seem to square with Marx’s theory of capitalism but that would not seem to deter people like Mike Whitney and especially Andre Vltchek who views China as following its own rules and not that of a Westerner like Karl Marx: “Only the Western thinkers can define such things as ‘socialism’ or ‘communism’, not Asians, and ‘Chinese socialism’ means nothing to them; it is just a pose, a charade.”
For many BRICS has a totemic quality, as if there could be such a thing as “good capitalism” as opposed to the demonic, mustache-twirling variety found on Wall Street or London’s financial district. I was reminded of that just today when Ron Jacobs forwarded an interview with Thomas Mountain to Marxmail. Mountain turns out to be a former member of Robert Avakian’s cult who retains a soft spot in his heart for China as if the old-time spirit of Maoism lingered on:
Chinese aid has built more schools, hospitals, water and electric infrastructure than all the western governments and the UN combined, and is set to do much more if the present programs that have been announced are implemented. China recognizes that Africa needs educated and skilled personnel to help develop African resources and it is in China’s interest to help make this happen. Again, doing this is a long term investment that will pay off for China, both in good will and in their companies’ bottom lines.
So maybe colonialism is not such a bad thing as long as it has Chinese characteristics? Well, maybe Mountain had the early writings of Karl Marx in mind who thought that the British colonization of India had some benefits: “The political unity of India, more consolidated, and extending farther than it ever did under the Great Moguls, was the first condition of its regeneration. That unity, imposed by the British sword, will now be strengthened and perpetuated by the electric telegraph.” (Of course, years later Marx explicitly renounced these views and equated British rule to grand larceny.)
Is this far-fetched? Comparing China to Victorian England? Not if you read what Nick Turse has to say about the Chinese presence in newly independent South Sudan:
Hungry for energy reserves, minerals, and other raw materials to fuel its domestic growth, China’s Export-Import Bank and other state-controlled entities regularly offer financing for railroads, highways, and other major infrastructure projects, often tied to the use of Chinese companies and workers. In exchange, China expects long-term supplies of needed natural resources. Such relationships have exploded in the new century with its African trade jumping from $10 billion to an estimated $200 billion, which far exceeds that of the United States or any European country. It has now been Africa’s largest trading partner for the last five years and boasts of having struck $400 billion worth of deals in African construction projects which have already yielded almost 1,400 miles of railroad track and nearly 2,200 miles of highways.
A civil war in South Sudan has recently imperiled China’s interests. It was forced to withdraw 300 oil workers when forces hostile to the government threatened them. As an indication of the UN’s willingness to come to the aid of stability whenever the natives get too restless, just as was the case in the Congo in Lumumba’s time, the Blue Helmets are there to “keep the peace”. It is of some significance that China has sent detachments of the PLA to help them out.
For those who like their politics kept simple if not stupid, the whole idea of the BRICS is to counter the power of Wall Street. That being the case, can I make a pitch for being able to handle complexity? Like understanding that Lloyd Blankfein is just fine with BRICS (obviously the two honchos from South Africa with ties to Goldman joining the new BRICS bank serving as all the evidence you should need). Turns out the scumbag-in-chief of Goldman-Sachs went over to China to give his blessing to the New Development Bank at Tsinghua University. You can watch him chatting it up with the dean of the business school here, a chap named Qian Yingyi:
Qian doesn’t seem to understand that the BRICS countries are on a collision course with Western financial interests, at least based on the evidence of the men he has appointed to the business school’s advisory board: Apple Inc.’s Tim Cook, Citigroup Inc.’s Michael Corbat, Blackstone Group’s Steve Schwarzman, Goldman Sachs Chairman Lloyd Blankfein and Carlyle Group’s co-founder David Rubenstein.
So the obvious question is whether this business about rival hegemonic blocs, with the West being Evil and the BRICS being Good, makes any sense with Goldman-Sachs’s bromance with someone like Qian Yingyi. Of course, we should never forget that it was a Goldman-Sachs big-shot who first got gung-ho on this development, even coining the term BRIC (before South Africa was added.) Jim O’Neill wrote “Building Better Global Economic BRICs” in 2001. It is mostly a call for figuring out how to make money in emerging markets and contains none of the hysterical warnings about how Wall Street is threatened by a new white-horse riding hegemon.
One of the interesting theoretical questions that arises out of all this is whether the old understanding of imperialist rivalry based on 1914 and 1940 make much sense in understanding today’s world. I would offer this as a potential research topic. WWI and WWII were ignited by rival nationalist agendas in line with defending capitalist industry. Protectionism via tariffs was the name of the game.
But over the past 30 years or so, capital is much less interested in building walls around local industry, as the hollowed out shells of Detroit, Cleveland and Pittsburgh would indicate.
In a brief chat with Patrick Bond at the Rosa Luxemburg conference in NYC this weekend, I raised the question of whether Lenin’s much-heralded book on imperialism is that useful in understanding today’s world. He suggested that Rosa Luxemburg’s writings are more relevant in many ways. Hmmm. Given her affinity with David Harvey’s analysis, which places an emphasis on capital’s ability to take flight and move wherever a profit can be made, that’s something that makes a lot of fucking sense.