Economy

The oil spill disaster in the Gulf of Mexico is likely to be far worse than oil rig owner BP has admitted. Independent analysis carried out for the US National Public Radio (NPR) indicated the company has vastly underestimated the size of the spill. Experts told NPR on May 14 the spill could be 10 times bigger than the company says.
Cuba provides the best conditions for motherhood among developing countries, Save the Children's State of the World's Mothers 2010 report has found. The Times of India reported on May 5 that the report “examines 160 countries — 43 developed and 117 developing ones — and analyses the best and worst places to be a mother based on 10 factors such as the educational status, health, economic circumstances of the mothers, as well as the basic well-being of children”.
Since October, dozens of social leaders have been shot and eight killed in the struggle between Spanish-based oil and gas multinational Union Fenosa and communities in the west of the country. On October 24, Victor Galvez was shot 32 times as he left his office, where he was meeting with neighbours whose electricity supply had been cut off by one of Union Fenosa’s subsidiaries. Opposition to Union Fenosa began with the privatisation of electricity supply in 1999, with the multinational as the main beneficiary.
In further moves to strengthen the state’s role in the economy, Venezuelan President Chavez announced on May 11 the creation of a publicly owned import-export company as part of a broader plan to combat “the hegemony of the bourgeoisie”, speculation and inflation. Despite price controls and a fixed exchange rate, inflation reached 25.1% in 2009 — the highest in Latin America. Central bank figures reported inflation climbed 5.2% in April (double that of March), bringing accumulated inflation for 2010 up to 11.3%.
An ex-oil worker has told the May 12 Huffington Post that oil giant BP often faked reliability tests for equipment meant to stop spills such as the Deepwater Horizon spill, which began on April 20. Mike Mason, an oil worker in Alaska for 18 years, said he personally witnessed more than 100 occasions when BP employees manipulated tests on safety valves designed to cut off oil flow in case of emergencies. He said the tests would determine whether the valves could withstand certain amounts of pressure for five minutes at a time.
“The time of big energy was supposed to have faded with the election of Barack Obama to the presidency”, Billy Wharton wrote in a May 12 www.counterpunch.org article. “Then, a humble Coloradan, with a cowboy hat that seemed permanently affixed to his head, named Ken Salazar ambled to the microphone to accept Obama’s nomination to be the new Secretary of the Department of the Interior (DOI).”
As Tiger Woods returns to golf, not all his affairs are salacious headlines. In Dubai, the Tiger Woods Golf Course is costing $100 million to build. Dubai relies on cheap Third World labour, as do certain consumer brands that have helped make Woods a billionaire. Nike workers in Thailand wrote to Woods, expressing their “utmost respect for your skill and perseverance as an athlete” but pointing out that they would need to work 72,000 years “to receive what you will earn from [your Nike] contract”.
The tremendous success of the April 19-22 World Peoples Summit on Climate Change and Mother Earth Rights held in Cochabamba, Bolivia, has confirmed the well-deserved role of its initiator — Bolivian President Evo Morales — as one of the world’s leading environmental advocates. Since being elected the country’s first indigenous president in 2005, Morales has continuously denounced the threat posed by the climate crisis and environmental destruction. Morales has pointed the figure at the real cause of the problem: the consumerist and profit-driven capitalist system.
“There are two ways forward: Either save capitalism, or save Mother Earth”, Bolivian President Evo Morales said, stressing that this was the choice facing governments at a May 7 press conference in New York. There, he discussed the outcomes of the 35,000-strong World People’s Summit on Climate Change and the Rights of Mother Earth with United Nations Secretary-General Ban Ki-moon.
Green Left Weekly — Australia’s leading non-corporate newspaper — has an ambitious target to raise $300,000 for it’s fighting fund this year. This is the amount needed to ensure we can cover all the costs associated with research, production and distribution. It’s no small thing to produce such a quality publication.
Perhaps no other sector better exemplifies the challenge the Bolivian government faces in lifting the country out of the poverty and dependency afflicting South America’s poorest nation than its all-important mining industry. Mining minister and former miners’ union leader Jose Pimentel told Green Left Weekly: “Bolivia has been a mining country for more than 500 years, ever since the Spanish came and discovered the legendary wealth [of the silver mines] of Potosi.”
Under the new constitution approved in January 2009, the state now controls all minerals, metals, precious and semi-precious stones in the country. While respecting previously granted concessions to private companies, it has restricted new concessions to joint ventures with the state In 2007, the Bolivian government returned 100% control of the Huanuni tin mine to the state-owned Comibol. On May 3, the government nationalised the Glencore-owned antimony smelter, which has been out of operation for more than two years.
On April 29, more than 10,000 union members and others organised a protest on Wall Street in New York organised by the AFL-CIO union federation, Alternet.org said the next day. “The banners declared ‘Wall Street: Never Again’ and ‘Less Audis, More Audits’. Almost to a one, they echoed the clear policy demands of the day: regulatory reform, new taxes on banks and speculators, and a jobs bill.”
The proposed “bail-out” of the Greek economy by the International Monetary Fund (IMF) and European Union (EU) has set off a huge struggle with worldwide implications. On May 5, as Greek parliament debated the IMF-EU package, half a million people took over the streets of Athens as part of a nation-wide general strike. It was Greece’s largest demonstration in 30 years.
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Six US banks control 60% of GDP “They are Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo. They have assets equivalent to 60 percent of our gross national product. “And to put this in perspective, in the mid-1990s, these six banks or their predecessors, since there have been a lot of mergers, had less than 20 percent. Their assets were less than 20 percent of the gross national product.”

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