Racism and Recession in Europe

Jayati Ghosh

Of the many undesirable effects of the ongoing – and increasingly policy-induced – recession in Europe, one has received relatively less public attention: the resurgence of racist and xenophobic attitudes. This was already something of a problem especially in western Europe in the past decade when rightwing political forces demanded major restrictions on immigration and sporadic episodes of violence broke out against migrant and Roma groups.

As the economic crisis bites deeper and as the “austerity measures” enforced by governments cause more unemployment and more failure of small family-run businesses, bitterness and anger among the population will inevitably grow. The danger is that it will be directed not at powerful financial or even against governments that seem to bend like willows to every dictate of the market, but against more vulnerable targets that can be more easily attacked. The most obvious targets, of course, are the migrants, who often stand out also because of their perceived racial differences.

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The Global Financial Crisis: Other issues to watch

Ilene Grabel

Over the last many months, TripleCrisis bloggers and readers have written about many dimensions of the crisis. I would like to raise here several issues that warrant attention by progressive observers of the crisis.

1) The credit rating agencies and Polanyi rise again in Mediterranean Europe

We are now seeing that the government in Spain is trying to get ahead of a Greek-like fate by imposing its own extremely severe austerity measures that involve myriad types of budget cuts and recasting of its (inflexible) labor laws. Certainly the situation in Greece (and the protracted negotiations over its bailout) gave these moves particular impetus. But so did the downgrade of Spain by the credit rating firms.

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Help Us Evaluate the Triple Crisis Blog

To mark our first four months, the Triple Crisis Blog wants to take stock of how we’re doing.  And we want your feedback: how do you like the blog, and why do you keep reading?  How well have we tied together the crises in finance, development and environment?  Are there issues we’ve missed?

Please feel free to provide your feedback in the form of comments to this post.

And thanks!

Triple Crisis Blog

Gulf Oil Spill: America’s Chernobyl

Alejandro Nadal

The Deepwater Horizon disaster has the familiar ingredients of deregulation, deception, and destruction that characterize the relations between governments and multinational corporations. It was a man-made disaster, like Chernobyl. And like the global financial crisis, it all started with the explosion of a bubble, this time of methane gas.

The Wages of Deregulation

In 2008 the Bush-Cheney duo lifted the executive order banning offshore drilling, and the House of Representatives agreed to let a 26-year-old moratorium on offshore drilling expire. Deregulation was moving full speed ahead.

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Gulf Oil Spill: America's Chernobyl

Alejandro Nadal

The Deepwater Horizon disaster has the familiar ingredients of deregulation, deception, and destruction that characterize the relations between governments and multinational corporations. It was a man-made disaster, like Chernobyl. And like the global financial crisis, it all started with the explosion of a bubble, this time of methane gas.

The Wages of Deregulation

In 2008 the Bush-Cheney duo lifted the executive order banning offshore drilling, and the House of Representatives agreed to let a 26-year-old moratorium on offshore drilling expire. Deregulation was moving full speed ahead.

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The Greek Tragedy and the Political Roots of Fiscal Crisis

Sanjay G. Reddy

The economic crisis in Greece, which has roiled all of Europe, has been presented by the mainstream media as arising from the mismanagement of economic resources.  In fact, the real roots of the crisis and others like it are in the malfunctioning of political institutions.

Politics, according to the famous formulation of Harold Lasswell, is about who gets what, when and how.  Although all political institutions produce an answer to these questions, well-functioning ones must produce answers that are, at a minimum, not manifestly irrational (for instance, in the sense that they are worse for nearly everyone than those which some alternative would have brought about) nor manifestly unjust  (for instance, in the sense that they systematically favor the already advantaged over the already disadvantaged).  However, many political institutions fail to satisfy one or both of these criteria.

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Greening Capitalism is not Enough

Gerhard Schick

In many places, including Germany, the idea of a Green New Deal continues to be criticized from the well-known conservative angle and, more recently, from a progressive perspective as well.  For instance, in a recently published book, “Green Capitalism: Crisis, Climate Change and Unchecked Growth,” the authors — Stephan Kaufmann and Tadzio Müller — equate the Green New Deal with the idea of “Green Capitalism.”  Coming from a progressive perspective, they claim that these concepts only provide an ecological basis for perpetuating the existing and highly problematic economic system.

This new critique of the Green New Deal is not valid because it fails to understand that the Green New Deal does not entail a simple “greenwashing” of the existing system. In fact, the project would profoundly transform our economy and society.

The global Green New Deal is an imperative.  Why?

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Truth Spill: Gulf Disaster Brings Home the Real Costs of Fossil Fuels

James K. Boyce

An upside-down faucet, just open and running out.” That’s how an oil-spill expert at the Woods Hole Oceanographic Institute describes the massive release of crude oil into the Gulf of Mexico that began April 20th at British Petroleum’s Deep Horizon oil rig off the coast of Louisiana. [See live video feed of the spill here.]

The disaster has opened an information faucet, too: every day, more truth about the real costs of fossil fuels is emptying into public view. Desperate efforts to control both spills are underway.

After its 450-ton blowout preventer failed, BP tried burning the oil slick, creating the macabre spectacle of the ocean on fire.

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Thailand and Elsewhere

Guest bloggers, Chris Baker and Pasuk Phongpaichit

The recent turmoil in Bangkok has hogged the headlines across Asia. But Bangkok is not the only city in turmoil. A few weeks ago, demonstrators in Athens fought an hours-long battle with police ending with three dead and scores injured. In neighbouring Turkey, police with batons had clashed with protesters hurling bricks and fire bombs. Just across the Mediterranean, the dispossessed of Cairo decided to occupy the city centre, sleeping on the streets. Further afield, the Maoists staged a massive protest in Kathmandu, and in the capital of Kyrgyzstan, an urban mob attacked the residence of the president, tore up the plants in his garden, and drove him from power.

Bangkok’s red-shirt protesters are demanding a general election, return of their hero, former premier Thaksin Shinawatra, and an end to the “double standards” resulting from the concentration of wealth and power. It is easy to see all these struggles as unique.  The Greek riots are an offshoot of the country’s financial collapse. The Kathmandu demo is just one more stage in the country’s transition from monarchy. The Kyrgystani president had been elected to power on a surge of popularity, and had then turned out to be spectacularly corrupt. And so on. But what is really striking about all these incidents are the similarities. Big urban mobs. Fierce defiance. Security forces overstretched. States rattled. Middle class urbanites wringing their hands.

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Socializing Risk: The New Energy Economics

Frank Ackerman

Despite talk of a moratorium, the Interior Department’s Minerals and Management Service is still granting waivers from environmental review for oil drilling in the Gulf of Mexico, including wells in very deep water. Until last month, most of us never thought about the risk that one of those huge offshore rigs would explode in flames and then sink, causing oil to gush out uncontrollably and befoul the oceans. The odds seemed low, and still do: Aren’t there lots of drilling rigs in use, year after year? Twenty years ago, your elected representatives thought that you’d be happy to have them adopt a very low cap on industry’s liability for oil spill damages.

Nuclear power was never quite free of fears; it was too clearly a spin-off of nuclear weapons to ignore the risk of a very big bang. Yet as its advocates point out, we have had hundreds of reactor-years of experience, with only a few accidents. (And someday when Nevada’s politicians aren’t looking, maybe we can slip all of our nuclear waste into a cave in the desert.) Again, the risks are so low that you’d be happy to learn about a law limiting industry’s liability for accidents, wouldn’t you?

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