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Article 43 of the 1907 Hague IV convention on “Laws and Customs of War on Land” states that “[t]he authority of the legitimate power having in fact passed into the hands of the occupant, the latter shall take all the measures in his power to restore, and ensure as far as possible, public order and safety, while respecting, unless absolutely prevented, the laws in force in the country.” Article 55 states, “The occupying State shall be regarded only as administrator and usufructuary of public buildings, real estate, forests, and agricultural estates belonging to the hostile State, and situated in the occupied country. It must safeguard the capital of these properties, and administer them in accordance with the rules of usufruct.” Most legal experts interpret these provisions to mean that an occupying military power cannot change the laws of a country it occupies. [Hague Convention IV, 10/18/1907; Whyte, 3/2007, pp. 181]

Timeline Tags: Iraq under US Occupation

Roosevelt giving his inaugural address.Roosevelt giving his inaugural address. [Source: US Politics Guide]Newly elected President Franklin Delano Roosevelt delivers his Inaugural Address in Washington immediately after being sworn into office. To a country reeling from the effects of the Great Depression, Roosevelt offers a ringing promise of economic change—the first hints of what will become his “New Deal” economic policies. “The only thing we have to fear is fear itself,” he tells the crowd, “nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
Acknowledges Economic Calamity - He continues: “Our common difficulties concern, thank God, only material things. Values have shrunk to fantastic levels; taxes have risen; our ability to pay has fallen; government of all kinds is faced by serious curtailment of income; the means of exchange are frozen in the currents of trade; the withered leaves of industrial enterprise lie on every side; farmers find no markets for their produce: the savings of many years in thousands of families are gone. A host of unemployed citizens face the grim problem of existence. Only a foolish optimist can deny the dark realities of the moment.”
'Rulers of the Exchange,' 'Money Lenders' Stand Responsible - “Primarily, this is because the rulers of the exchange of mankind’s goods have failed through their own stubbornness and their own incompetence, have admitted their failure and abdicated,” Roosevelt says. “Practices of the unscrupulous money changers stand indicted. True, they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit, they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. There must be an end to a conduct in banking and in business which too often has given to a sacred trust the likeness of callous and selfish wrongdoing. Small wonder that confidence languishes, for it thrives only on honesty, on honor, on the sacredness of obligations, on faithful protection, on unselfish performance.”
Call to Action - He continues: “This nation asks for action, and action now. Our greatest primary task is to put people to work. It can be accomplished in part by direct recruiting by the government itself, treating the task as we would treat the emergency of a war.… It can never be helped by merely talking about it. We must act, and act quickly. There must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people’s money, and there must be provision for an adequate but sound currency. These are the lines of attack.” [Time, 3/13/1933]

Entity Tags: Franklin Delano Roosevelt

Timeline Tags: Global Economic Crises

A joint project is started in which students from Chile will be sent to learn economics at the University of Chicago using funding for tuition and other expenses from the US government as well as private organizations such as the Ford Foundation. The University of Chicago’s Department of Economics is at this time a bastion of strict adherence to pro-free market thought. The chairman of this department, Theodore W. Schultz, came up with this plan along with an official from the US government during a meeting in Santiago, Chile, in 1953. Schultz himself stated that he desired that the countries of the third world, “work out their economic salvation by relating to us and by using our way of achieving their economic development.” By 1970, some 100 students from Chile will have sought advanced degrees from the University of Chicago. [Klein, 2007, pp. 59-60]

Entity Tags: University of Chicago, Theodore W. Schultz

Timeline Tags: Neoliberalism and Globalization, US International Relations

“The Brick,” a 500-page economic blueprint later used by Augusto Pinochet to formulate Chile’s economic policy, is drafted by a ten-man group, eight of whom had previously studied at the University of Chicago (see 1956). The group was put together by Orlando Sáenz, president of the National Association of Manufacturers, to “prepare specific alternative programs to government programs” that the military could use. Saenz took this step following a meeting between the heads of various Chilean businesses to discuss plans for toppling the regime of democratically-elected leader Salvador Allende as well as a suitable replacement. [Klein, 2007, pp. 70-71]

Entity Tags: Orlando Sáenz, Salvador Allende Gossens, Augusto Pinochet, National Association of Manufacturers (Chile)

Timeline Tags: Neoliberalism and Globalization

Sergio De Castro, leader of the Chicago University movement in Chile and the head author of “The Brick,” is made a chief economic adviser to Augusto Pinochet’s authoritarian regime almost immediately after the overthrow of the democratically elected government of Salvador Allende. During the first one and a half years of Pinochet’s rule, Chile is subject to a large array of neoliberal economic reforms. These include the privatization of state-owned firms, financial deregulation, removal of import tariffs, a ten percent cut in government spending (with the notable exception of military spending), and the termination of price controls. As a result, the cost of basic goods will skyrocket while domestic industries are put out of business by imported goods. Orlando Sáenz, who originally recruited the Chicago School graduates to redesign the Chilean economy (see September 1971-September 11, 1973), will declare the consequences to be “one of the greatest failures of our economic history.” [Klein, 2007, pp. 79-80]

Entity Tags: Sergio De Castro, Augusto Pinochet, Orlando Sáenz

Timeline Tags: Neoliberalism and Globalization

As a result of Paul Volcker’s tightening of the US money supply (see October 6, 1979), 145 developing and emerging market economies pay a total of $7.673 trillion (in current dollars) in order to service their external debts. $675 billion of this money comes from Africa, the poorest continent in the world. Despite these massive payments, the external debt held by these nations actually increases from $618 billion in 1980 to $3.150 trillion in 2006. [Nakatani and Herera, 6/2007]

Timeline Tags: Neoliberalism and Globalization

The breakdown of the import substitution industrialization (ISI) model of development and the advent of neoliberal economic reform in Latin America lead to what is now termed the “lost decade” due to poor economic growth in the region. From 1980 to 1990, the region’s share of the world economy slips from 6 to 3 percent. Also, its average annual percentage change of real GDP per capita growth from 1980 to 1989 is -0.4, lower than any other region in the world and significantly lower than Latin America’s previous rate of 2.5 percent for the period between 1973 to 1980. [Robinson, 1999, pp. 112-113]

Timeline Tags: Neoliberalism and Globalization

The population of Buenos Aires grows from 3 to 9.5 million. During this time, the city’s public water and sewage utility company, Obres Sanitarias, is hit with a number of budget cuts recommended by the IMF and World Bank, and cannot afford to implement the needed upgrades and improvements. By the late 1980s, it is apparent that the utility will need a huge infusion of capital to extend its services to the new inhabitants of the city. [Public Citizen, 6/14/2007] Less than two thirds of the city’s population is connected to the water system while less than half has access to the sewers. Moreover, up to 50 percent of the system’s water is lost because of leaks. As a result, the per capita consumption of water is an extremely high 600 liters per customer. [Inter Press Service, 4/13/1993; CBC News, 3/31/2004] The World Bank steps in and offers to lend Argentina hundreds of millions of dollars to upgrade the city’s water infrastructure—but only on the condition that it privatize Obres Sanitarias. [Public Citizen, 6/14/2007] Critics of the privatization plan will later argue that despite its lack of cash-on-hand, Obras Sanitarias was a “well-run company” with little debt and was capable of expanding on its own—had it been sufficiently funded. [Santoro, 2/6/2003]

Entity Tags: World Bank, Obres Sanitarias de la Nacion

Timeline Tags: Water

A combination of factors puts the Mexico into a major balance of payments crisis. US Federal Reserve Bank Chairman Paul Volcker’s decision to increase the Federal Reserve’s interest rate (see October 6, 1979) increases the amount of debt held by the Mexican government. In addition, a decrease in the global price of oil and a recession in the US (thereby decreasing US demand for Mexican goods) makes it harder for Mexico to pay off the debt on its own. The Mexican government decides to devalue the peso, its national currency, by 78 percent. [Hart-Landsberg, 12/2002]

Entity Tags: Mexico, Paul Volcker

Timeline Tags: Neoliberalism and Globalization

The International Monetary Fund approves of a $3.9 billion to the Mexican government. As a condition for receiving the loan, the Mexican government is expected to engage in a series of free market reforms. Such reforms include: fiscal austerity, privatization of state-owned companies, reductions in trade barriers, industrial deregulation, and foreign investment liberalization. [New York Times, 12/24/1982, pp. D4; Global Exchange, 9/2001, pp. 3 pdf file]

Entity Tags: International Monetary Fund, Mexico

Timeline Tags: Neoliberalism and Globalization

Guatemala seeks to reduce infant mortality by regulating the marketing of infant formula by multinationals in conformity with WHO guidelines and according to international codes. Infant mortality rates drop significantly. However, one company, the Gerber Corp., refuses to comply. Guatemala spends five years trying to get it to comply, but in 1993, the company threatens a WTO complaint and US sanctions. Guatemala backs down in 1995 and Gerber Corp. is exempted from the regulation. [Global Exchange, 11/15/1999; Rachel's Environment and Health Weekly, 11/18/1999]

Entity Tags: Gerber Corporation

Timeline Tags: US-Guatemala (1901-2002)

The IMF’s recommended reforms are widely viewed to have a negative effect on the earnings of the average Mexican. For example:
bullet In the period between 1983 and 1988, per capita income falls at a rate of about 5 percent per year.
bullet In the same period, the value of workers’ real wages falls from 40 to 50 percent.
bullet The share of national income received by workers declines from 49 percent in 1981 to 29 percent in 1990.
bullet Adjusted for inflation, the Mexicans’ real wages fall by 75 percent throughout the 1980s. [Global Exchange, 9/2001, pp. 4 pdf file; Harvey, 2005, pp. 100]

Entity Tags: Mexico, International Monetary Fund

Timeline Tags: Neoliberalism and Globalization

The Mexican government, in 1984, controls about 1,212 firms and entities. By December of 1988, this number will be reduced to 448 through a massive privatization program. [Hart-Landsberg, 12/2002]

Entity Tags: Mexico

Timeline Tags: Neoliberalism and Globalization

Financial sources inform media outlets that the Mexican government’s failure to cut its budget deficit in accordance with an IMF austerity program may jeopardize its access to $908 million worth of assistance. This news comes at about the same time as an earthquake hits Mexico that will require the government to spend even more on reconstruction, thereby increasing the deficit. The IMF says that it will not make any exception as a result of Mexico’s fiscal needs following the earthquake. [New York Times, 9/20/1985, pp. A6]

Entity Tags: Mexico, International Monetary Fund

Timeline Tags: Neoliberalism and Globalization

The IMF grants Haiti a $24.6 million loan under its Structural Adjustment Facility (SAF). As a condition, Haiti is expected to cut public spending, close “inefficient public enterprises”, and liberalize its trade policy. [Inter Press Service, 12/30/1986]

Entity Tags: International Monetary Fund

Timeline Tags: Neoliberalism and Globalization

One of the conditions for Haiti obtaining the IMF loan it previously received (see December 30, 1986) was a lowering of tariffs on rice and an end to support for domestic rice farmers. This has the effect of putting much of Haiti’s rice farmers out of business. [Washington Post, 4/13/2000; Global Exchange, 9/2001, pp. 13 pdf file]

Entity Tags: International Monetary Fund

Timeline Tags: Neoliberalism and Globalization

1990: Mexico Privatizes Phone Company

The Mexican government, with technical assistance from the World Bank, sells off a profitable phone company called Telmex. In the months preceding the sell-off, the Mexican government increases the rate of calls by local users from 16 pesos per minute to 115 pesos per minute in order to make the company more attractive to potential buyers. This makes the privatization of the phone system detrimental to consumers. In a 1992 report, The World Bank will admit that “the privatization of Telmex, along with its attendant pricetax regulatory regime, has the result of ‘taxing’ consumers—a rather diffuse, unorganized group—and then distributing the gains among more well-defined groups, shareholders, employees, and the government.” [Global Exchange, 9/2001, pp. 4 pdf file]

Entity Tags: World Bank, Telmex

Timeline Tags: Neoliberalism and Globalization

Around $91 billion flows into the Mexican economy from foreign investors, allowing for a certain degree of economic growth. This growth slows down in 1992, however, as trade and current account deficits increase sharply. The deficits suggest a large deterioration in the country’s economic base during the 1980s. [Hart-Landsberg, 12/2002]

Entity Tags: Mexico

Timeline Tags: Neoliberalism and Globalization

A number of French dignitaries, including French Minister of Commerce Bruno Durieux, travels to Buenos Aires to lobby on behalf of two French companies—Compagnie Générale des Eaux and Lyonnaise des Eaux—which are trying to win a concession to operate the city’s water utility. On one visit, Durieux reportedly says that France will increase its investments in Argentina based on “how many privatizations we win.” Daniel Chain of Aguas de Buenos Aires will later recall, “The Embassy of France was hyperactive throughout the concession process. Every week it invited political leaders to lunches attended by French ministers. However, the Embassy of Great Britain, which supposedly was supporting the bid of the British company, Thames, had a low profile. It was an unequal fight.” [Santoro, 2/6/2003 Sources: Daniel Chain]

Entity Tags: Suez Group, Compagnie Générale des Eaux, Bruno Durieux

Timeline Tags: Water

Eduardo Cevallo, head of the Buenos Aires’ public utility, Obres Sanitarias, says that the state is unable to come up with the billions of dollars in investments that are needed to prevent the collapse of the city’s water and sewer system. He thus argues that Obres Sanitarias is “a model for privatization.” [Santoro, 2/6/2003]

Entity Tags: Obres Sanitarias de la Nacion, Eduardo Cevallo

Timeline Tags: Water

The World Bank approves and provides funds for a team of British private sector technical and financial consultants to advise the Argentine government on the privatization of its water and sewer sector. [CBC News, 3/31/2004]

Entity Tags: World Bank

Timeline Tags: Water

After the decision is made to privatize Obres Sanitarias, Buenos Aire’s public water and sewer utility, rates climb 62 percent. Additionally, the utility introduces an 18 percent sales tax. [CBC News, 3/31/2004; Public Citizen, 6/14/2007]

Entity Tags: Obres Sanitarias de la Nacion

Timeline Tags: Water

World Bank president Lewis Preston, in the luxurious dining room of the Argentine Jockey Club, over plates of smoked salmon and duck à l’orange, declares that Argentina’s “process of adjustment” is “an example for all of Latin America.” [Santoro, 2/6/2003]

Entity Tags: Lewis Preston

Timeline Tags: Water

Aguas Argentinas, a recently formed consortium of private companies, wins a 30-year concession to operate Buenos Aire’s water utility. It is awarded the concession because it promised a greater reduction in water rates than the other bidders. But it was close. Aguas Argentinas’s bid was 26.9 percent, just a fraction higher than the bid of another company, Aguas de Buenos Aires, which offered a rate decrease of 26.1 percent. According to the concession agreement, the company cannot raise rates for at least 10 years (rates have risen 62 percent since privatization was put on the agenda two years ago (see 1991-1993)). Additionally, it must invest $1.4 billion in the system, and connect more than 4,200,000 people to water and 4,800,000 to sewage systems. The foreign stakeholders in Aguas Argentinas include French companies Compagnie Générale des Eaux (later known as Vivendi; 8 percent), Lyonnaise des Eaux (later known as the Suez Group; 25.3 percent), Sociedad General de Aguas de Barcelona (12.6 percent), and Anglian Water (4.5 percent). The remaining stakes are held by Argentine companies Bank of Galicia (8.1 percent), Grupo Meller (10.8 percent), and Sociedad Comercial del Plata (20.7 percent). Grupo Meller is run by Sergio Meller, a supporter of Argentine President Carlos Menem, and Sociedad Comercial del Plata is owned by businessman Santiago Soldati, another close ally of Menem. [Santoro, 2/6/2003]

Entity Tags: Grupo Meller, Anglian Water, Aguas de Barcelona, Bank of Galicia, Ente Tripartito de Obras y Servicios Sanitarios, Sociedad Comercial del Plata, Suez Group, Obres Sanitarias de la Nacion, Compagnie Générale des Eaux, Sociedad General de Aguas de Barcelona

Timeline Tags: Water

In preparation for the North American Free Trade Agreement (NAFTA), Mexico opens up its financial services to foreign ownership. By 2000, 85 percent of the banking system will be owned by foreign entities and lending to Mexican businesses will have dropped from 10 percent of the GDP to 0.3 percent. [Jones, 3/2007, pp. 3]

Entity Tags: Mexico

Timeline Tags: Neoliberalism and Globalization

Aguas Argentinas, according to its own figures, enjoys a profit margin of between 15 and 25 percent each year. Other economists cited by the Inter-American Development Bank put the profit rate much higher—as high as 40 percent. [Santoro, 2/6/2003] According to Daniel Azpiazu, a researcher at the Latin American Faculty for Social Sciences, this rate of profit is far above the industry average. “In the United States, for example, water companies earned between 6-12.5 percent profits in 1991,” Azpiazu says. “In the United Kingdom a reasonable rate of profit for the sector is between 6-7 percent. In France, 6 percent is considered a very reasonable return on investment.” [CorpWatch, 2/26/2004]

Entity Tags: Aguas Argentinas, Daniel Azpiazu

Timeline Tags: Water

Buenos Aires’ public water utility, Obras Sanitarias, is privatized under heavy pressure from the World Bank, the IMF, and the US government. It is taken over by Aguas Argentinas, a recently formed consortium of private companies that won a 30-year concession to manage the city’s water and sewage system (see December 9, 1992). The deal represents the largest transfer in history of a water service and watershed to the private sector. The consortium will be responsible for providing water to the residents of Buenos Aires and 14 surrounding municipalities—some 10 million people (see also 1980s-1993). Oversight of Aguas Argentinas will be conducted by the newly formed regulatory body, ETOSS (Ente Tripartito de Obras y Servicios Sanitarios). Its task will be to monitor the quality of service, represent customers, and ensure that the company fulfills the terms of its contract. [Inter Press Service, 4/13/1993; Santoro, 2/6/2003; CorpWatch, 2/26/2004; CBC News, 3/31/2004; Public Citizen, 6/14/2007]

Entity Tags: Aguas Argentinas

Timeline Tags: Water

The North American Free Trade Agreement Implementation Act (H.R. 3450) is voted on by the US House of Representatives and passes 234-200. [US Congress, 11/17/1993] It is later estimated that Congresspersons who voted in favor of H.R. 3450 received an average of $8,018 more in corporate PAC contributions than those who voted against. [Francia, 1/2001, pp. 98, 103]

Entity Tags: North American Free Trade Agreement, US Congress

Timeline Tags: Neoliberalism and Globalization

US President Bill Clinton signs the North American Free Trade Agreement (NAFTA), which he says will “tear down trade barriers between” the US, Canada, and Mexico. [US President, 12/8/1993]

Entity Tags: William Jefferson (“Bill”) Clinton, North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Argentine President Carlos Menem issues a decree placing his political ally Secretary of the Environment Maria Julia Alsogaray in charge of ETOSS, the government regulatory body that provides oversight of Aguas Argentinas. Critics say the move is aimed at protecting Aguas Argentinas from public accountability. [Public Citizen, 6/14/2007]

Entity Tags: Maria Julia Alsogaray, Carlos Menem, Ente Tripartito de Obras y Servicios Sanitarios

Timeline Tags: Water

In early 1994, investors pull money out of the Mexican economy in response to an increase in US interest rates and political instability. This causes the Mexican government to lose massive amounts of reserves and lead it to allow the peso to float in December of 1994. In January of 1995 it again asks the IMF for assistance and receives packages from both the IMF and US Treasury. This time, massive privatizations of “transportation, banking and finance, railways and the petrochemical industries” were recommended as a way of paying off the loans. A devaluation of the peso in 1995 along with an IMF-mandated rise in interest rates triggers the worst depression in Mexico in 60 years. GDP falls by 6.2 percent, wages fall by 25 percent, unemployment doubles, and 12,000 Mexican firms file for bankruptcy. [Global Exchange, 9/2001, pp. 4-5 pdf file; Hart-Landsberg, 12/2002]

Entity Tags: US Department of the Treasury, Mexico

Timeline Tags: Neoliberalism and Globalization

The World Bank purchases a five percent stake in Aguas Argentinas, a consortium of private water companies that took over Buenos Aires’ public water utility in 1993. As the civil society organization Public Citizen will later note, the bank’s investment makes it “a lender in, partner in, and public relations arm of their ‘model privatization project.’” The 1993 privatization of the city’s water utility had been made under pressure from the World Bank and IMF. [Public Citizen, 6/14/2007]

Entity Tags: Aguas Argentinas, World Bank, Public Citizen

Timeline Tags: Water

Aguas Argentinas, a privately owned company that provides the city of Buenos Aires with its water supply, petitions the newly established government authority, ETOSS, for a rate increase of 13.5 percent. The company had previously agreed not to seek any rate increases for 10 years (see April 28, 1993). But according to Carlos Ben of Aguas Argentinas, “What was said in 1993, that there was not going to be an increase in rates for 10 years, was not meant in absolute terms. It was to indicate to the bidders that they should not put a speculative number [on rate reductions]. There was not a presumption of a freezing of rates.” [Santoro, 2/6/2003] The company also claims that it has suffered $23 million in losses because of “extra-contractual costs,” such as speeding up service in very poor neighborhoods. ETOSS, whose operations are financed through the collection of 2.6 percent of Aguas Argentinas’ revenue, approves the request on the condition that the company expedite expanding water and sewage service to the “villas de emergencia” (shanty towns), and that it implement a plan to eliminate the use of well water, which is heavily contaminated with nitrates. [Santoro, 2/6/2003; CBC News, 3/31/2004; Public Citizen, 6/14/2007] A decade later, Menahem Libhaber, the chief water and sanitation engineer for the World Bank in Latin America, will tell the International Consortium of Investigative Journalists that false promises are simply part of the game. “You get into the business with low rates or high commitments—all the while telling yourself, ‘When we are in we will renegotiate,’ The public sector has to be aware,” he says, that companies are disingenuously putting their best foot forward. “Sometimes it’s a game to get into the business.… And they [the companies] have leverage once they are in.” [Santoro, 2/6/2003]

Entity Tags: Aguas Argentinas, Carlos Ben, Ente Tripartito de Obras y Servicios Sanitarios

Timeline Tags: Water

A 15-year period begins during which most trade barriers between the US, Canada, and Mexico will be dismantled in accordance with NAFTA. The New York Times comments: “The government has taken few steps, however, to prepare smaller and medium-sized companies, poor farmers, and inefficient industries for the new competition. Even after a wave of industrial restructuring that cost half a million Mexican jobs, worker re-training programs are almost nonexistent.” [New York Times, 1/1/1994]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Under NAFTA, Mexico reduces its protection of domestic corn growers. This leads to a massive influx of corn from the US, where its production is heavily subsidized. This has the effect of reducing the price of corn in Mexico by 70 percent and ruining the livelihoods of some 15 million Mexican farmers who depend on the crop for income. [Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Haitian Prime Minister Smarck Michel announces that Haiti will continue with plans to privatize nine state-owned companies, though he acknowledges that most Haitians are “against the idea of privatization” and that for many, “the word is a demon.” In an effort to sell the plan to the public the government has been euphemistically describing it as the “democratization of assets.” The privatization scheme—to include Haiti’s flour mill, a cement factory, its air and seaports, telephone exchanges, and electricity—must be implemented in order for Haiti to receive $170 million in structural adjustment loans from the World Bank, the IMF, the Inter-American Development Bank (IDB) and the European Union. The loans are part of a five-year, $1.2-billion aid program (see (October 18, 1996)) which Aristide had tacitly agreed to in August 1994 (see August 1994). [Inter Press Service, 9/8/1995]

Entity Tags: Smarck Michel, Inter-American Development Bank (IDB), International Monetary Fund

Timeline Tags: Haiti Coup

Haitian Prime Minister Smarck Michel begins a 10-day trip aimed at “unlocking about [$1 billion] in foreign aid stalled after a political row in Haiti about planned privatization.” He begins in New York where he meets with commercial bankers. Afterwards, in a two-hour press conference with the Haitian press, he explains to his Haitian viewers that the World Bank, International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) are holding back $150 million until Haiti can “fulfill the conditions which structural adjustment demands,” and warns that there will be “dire consequences” if the Haitian people continue to resist privatization and other neoliberal reforms. [Haiti Progres, 9/13/1995]

Entity Tags: World Bank, Inter-American Development Bank (IDB), International Monetary Fund, Smarck Michel

Timeline Tags: Haiti Coup

During the World Bank’s annual meeting, the Bank and the International Monetary Fund (IMF) pressure Haiti to sign a letter of intent assuring the US, IMF, and other donors that Haiti would proceed with the Structural Adjustment Program that President Aristide had agreed to in August 1994 (see August 1994) before he was restored to power by a US-led multinational force. Haiti, whose parliament and population are strongly opposed to the neoliberal reforms, refuses to sign the letter. [Multinational Monitor, 11/2004]

Entity Tags: World Bank, International Monetary Fund, Smarck Michel, Jean-Bertrand Aristide

Timeline Tags: Haiti Coup

US Vice President Al Gore visits Haiti on the one-year anniversary of Jean-Bertrand Aristide’s return to power. During his visit, he meets with President Jean-Bertrand Aristide and stresses the need for his government to comply with the structural reforms which he had agreed to implement in August 1994 (see August 1994). “We discussed the need for continuing international assistance to meet the developmental requirements of Haiti and the steps the government of Haiti and its people need to take in order to ensure the continued flow of these funds,” Gore recounts during a brief press conference. Earlier in the month, Aristide’s government refused to sign a letter of intent assuring the US, IMF, and other donors that the country would follow though with the mandated reforms (see Early October 1995). [Inter Press Service, 10/16/1995; Multinational Monitor, 11/2004]

Entity Tags: International Monetary Fund, Albert Arnold (“Al”) Gore, Jr., Jean-Bertrand Aristide

Timeline Tags: Haiti Coup

By this date, Aguas Argentinas, the company hired in 1993 to provide water and sewer service to the residents of Buenos Aires (see April 28, 1993), has invested roughly 45 percent less ($300 million) on expanding services than required by its contract. The company blames the failure on bad debt, late payments, and a downturn in the Argentine economy. During this period, the company has been able to maintain a comfortable 20 percent profit margin. [CBC News, 3/31/2004]

Entity Tags: Aguas Argentinas

Timeline Tags: Water

Aguas Argentinas, a consortium of North American and European private water companies, announces an $800 water and sewer connection fee. The new fee is met with large scale protests, and thousands of demonstrators block the roads leading to the city (see April 1996). [Santoro, 2/6/2003; Public Citizen, 6/14/2007]

Entity Tags: Aguas Argentinas

Timeline Tags: Water

Residents of the suburban Buenos Aires town of Lomas de Zamora protest the new $800 water and sewage connections fees being charged by Aguas Argentinas (see Spring 1996). The movement quickly spreads and thousands of new water clients block roads into the capital. [Santoro, 2/6/2003]

Entity Tags: Aguas Argentinas

Timeline Tags: Water

An Argentine congressional commission issues a report accusing Aguas Argentinas, a consortium of private water companies that took over management of the city’s water and sewer system in 1993 (see April 28, 1993), of “serious and grave” breaches of contract, failing to meet goals regarding infrastructure development, and failing to inform its regulatory body, ETOSS, of its operations. It orders the company to suspend new connection fees for 800,000 new users in Buenos Aires. [Santoro, 2/6/2003; CBC News, 3/31/2004; Public Citizen, 6/14/2007]

Entity Tags: Aguas Argentinas, Argentine Congress

Timeline Tags: Water

Haiti agrees to implement a wide array of neoliberal reforms outlined in the IMF’s $1.2 billion Emergency Economic Recovery Plan (EERP) put together by the World Bank, the Inter-American Development Bank (IDB), the United States Agency for International Development (USAID), the United Nations Development Program (UNDP), and the Organization of American States (OAS). The recovery package, to be funded and executed over a five-year period, aims to create a capital-friendly macroeconomic environment for the export-manufacturing sector. It calls for suppressing wages, reducing tariffs, and selling off state-owned enterprises. Notably, there is little in the package for the country’s rural sector, which represents the activities of about 65 percent of the Haitian population. The small amount that does go to the countryside is designated for improving roads and irrigation systems and promoting export crops such as coffee and mangoes. The Haitian government also agrees to abolish tariffs on US imports, which results in the dumping of cheap US foodstuffs on the Haitian market undermining the country’s livestock and agricultural production. The disruption of economic life in the already depressed country further deteriorates the living conditions of the poor. [International Report, 4/3/1995; International Monetary Fund, 10/18/1996; Shamsie, 2002; Dollars and Sense, 9/7/2003; CounterPunch, 3/1/2004]

Entity Tags: Organization of American States (OAS), USAID, Inter-American Development Bank (IDB)

Timeline Tags: Haiti Coup, US-Haiti (1804-2005)

Aguas Argentinas and the regulatory body that governs it, ETOSS, come to an agreement on the controversial $800 water and sewer connection fee (see Spring 1996). The company will lower the connection fee to $200, but create a new “Universal Service” fee that all of its customers must pay. In agreeing on the fee, ETOSS essentially allows the company to impose a fee that had not been specified in the 1992 concession agreement (see December 9, 1992). An investigation by the International Consortium of Investigative Journalists will later point out, “The real winner was Aguas Argentinas. It had succeeded in imposing fees not described in its contract.” [Santoro, 2/6/2003]

Entity Tags: Ente Tripartito de Obras y Servicios Sanitarios, Aguas Argentinas

Timeline Tags: Water

Aguas Argentinas begins pushing hard for revisions to its 30-year contract to manage Buenos Aires’ water and sewer system. The World Bank, which has invested hundreds of millions of dollars in the project and has a five percent stake in it, sends Ventura Bengoechea, one of its senior water managers, to join Aguas Argentinas. The manager stays with Aguas Argentinas until a new contract is signed in 2000. During that period he remains on the World Bank’s payroll. [Public Citizen, 6/14/2007]

Entity Tags: Ventura Bengoechea, World Bank, Aguas Argentinas

Timeline Tags: Water

The head of ETOSS, the regulatory agency that oversees the management of Buenos Aires’ privatized water and sewer utility, tells Congress that Aguas Argentinas has only built a third of the new pumping stations and underground mains it promised to complete by 1997. Moreover, it has only spent 9.4 million of the promised 48.9 million in improving the sewage system. Citing the supposed need for “further investigation,” the company has put off construction of the Berazategui wastewater treatment plant. As a result, sewage is being dumped into rivers and cesspools, raising nitrate levels in the water (nitrates reduce the flow of oxygen to the brain in infants) and increasing the risk of various waterborne illnesses. According to the World Bank, by delaying the project, Aguas Argentinas is saving $100,000 dollars a day. [Inter Press Service, 4/13/1993]

Entity Tags: World Bank, Aguas Argentinas, Ente Tripartito de Obras y Servicios Sanitarios

Timeline Tags: Water

Aguas Argentinas, the private company that is managing Buenos Aires’ water and sewer services, asks ETOSS, a government regulatory agency, to raise water rates by 11.7 percent. When ETOSS approves only a 1.61 percent increase, the company turns to Secretary of the Environment Maria Julia Alsogaray, who then persuades President Carlos Menem to authorize a 5.1 percent rate hike. It eventually turns into a 17 percent increase. When a judge freezes a portion of the rate hike, the government successfully appeals. [Santoro, 2/6/2003] Aguas Argentinas’ original 1992 contract with Argentina had stipulated that the company could not raise rates for at least ten years (see December 9, 1992). This is the second such increase in rates (see also (Early 1994)).

Entity Tags: Carlos Menem, Ente Tripartito de Obras y Servicios Sanitarios, Maria Julia Alsogaray, Aguas Argentinas

Timeline Tags: Water

A new international alliance of culture ministers “to promote and protect cultural diversity” is formed at the conclusion of the two-day International Meeting on Culture Policy held in Ottawa, Canada. Attending culture ministers from Armenia, Barbados, Brazil, Canada, Croatia, Greece, Iceland, Italy, Ivory Coast, Mexico, Morocco, Poland, Senegal, South Africa, Sweden, Switzerland, Trinidad and Tobago, Tunisia, Ukraine, and the United Kingdom—dubbed the Ottawa Group of Ministers—agree to set up the International Network on Cultural Policy (INCP). Both the ministers’ meeting and the formation of the new alliance were launched at the initiative of Canada, largely through its Heritage Minister Sheila Copps. An initial “contact group” consisting of Sweden, Mexico, Greece, and Canada is formed to coordinate activities of the new network. Canada provides the first secretariat for INCP. The ministers agree to set the next meeting to be held the following year in Mexico, and the meet after that, in 2000, in Greece. Canadian Heritage Minister Sheila Copps says, in the light of the network’s formation, “Canadians are delighted that we’ve found so many other countries that share our determination to put culture front and centre on the global stage and to promote cultural diversity for everyone in the world.” [International Network on Cultural Policy, 6/30/1998]

Entity Tags: Sheila Copps, International Network on Cultural Policy

Timeline Tags: Neoliberalism and Globalization

Congress approves legislation which repeals the Glass-Steagall Act of 1933, greatly reducing regulation of Wall Street and clearing the way for the cross-ownership of banks, securities firms and insurers. The measure is approved in the Senate by a vote of 90 to 8 and in the House by 362 to 57. President Bill Clinton will sign the Gramm-Leach-Bliley Act into law on November 12th, 1999. [Library of Congress, 3/27/2009] The New York Times reports that passage of the bill elicits optimism that the measure will enhance American competitiveness and ensure American dominance in the global financial marketplace, as well as concerns that deregulation will lead to a future financial meltdown. The Times further notes that experts predict the new law will result in a wave of large financial mergers.
Optimism over Passage of the Measure - Treasury Secretary Lawrence H. Summers praises the legislation, declaring that the law “will better enable American companies to compete in the new economy.” Among others praising passage of the measure:
bullet Senator Phil Gramm (R-TX), sponsor of the bill, says: “We have a new century coming, and we have an opportunity to dominate that century the same way we dominated this century. Glass-Steagall, in the midst of the Great Depression, came at a time when the thinking was that the government was the answer. In this era of economic prosperity, we have decided that freedom is the answer.”
bullet Rep Jim Leach (R-IA) remarks: “This is a historic day. The landscape for delivery of financial services will now surely shift.”
bullet Senator Charles E. Schumer (D-NY) says, “There are many reasons for this bill, but first and foremost is to ensure that US financial firms remain competitive.”
bullet Senator Bob Kerrey (D-NE) says, “The concerns that we will have a meltdown like 1929 are dramatically overblown.”
Warnings over Implications of the Measure - The measure provokes warnings from a handful of dissenters that “the deregulation of Wall Street would someday wreak havoc on the nation’s financial system,” according to the Times. Among the dissenters are:
bullet Senator Byron L. Dorgan (D-ND), who says: “I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010;”
bullet Representative Maxine Waters (D-CA), who remarks that the bill is “mean-spirited in the way it had tried to undermine the Community Reinvestment Act;”
bullet Senator Paul Wellstone (D-MN), who says: “Glass-Steagall was intended to protect our financial system by insulating commercial banking from other forms of risk. It was one of several stabilizers designed to keep a similar tragedy from recurring. Now Congress is about to repeal that economic stabilizer without putting any comparable safeguard in its place.” [New York Times, 11/5/1999]

Entity Tags: Clinton administration, Byron L. Dorgan, Barney Frank, Bob Kerrey, Charles Schumer, William Jefferson (“Bill”) Clinton, US Congress, Jim Leach, Phil Gramm, Gramm-Leach-Bliley Act, Larry Summers, Paul Wellstone, Maxine Waters, Glass-Steagall Act

Timeline Tags: Global Economic Crises

Aguas Argentinas signs a new contract with Argentina for the management of Buenos Aires’ water and sewer services. In negotiating the new contract, the company enlisted the support of Argentine President Carlos Menem. Additionally, it threatened not to invest any more funds into expanding water and sewer access to poor neighborhoods until the new contract was signed. The new agreement significantly reduces the company’s obligations to Buenos Aires. The original 1992 concession agreement (see December 9, 1992) required Aguas Argentinas to invest $1.4 billion in the system, and connect more than 4,200,000 people to water and 4,800,000 to sewage systems, which the company has failed to do. While the company says it currently collects 62 percent of its customers’ sewage—just shy of its commitment of 64 percent—the actual percentage of sewage that it treats is only 5 percent. The rest is dumped untreated directly into the Rio de la Plata (River of Silver). The new contract allows the company to delay construction of the crucial Berazategui wastewater treatment plant as well as a fourth sewer main. It also eliminates the requirement that rate increases be tied to investments and waives $10 million in fines that were imposed for alleged contract violations. Additionally, the contract pegs rate increases to fluctuations in the US inflation rate, calculated in pesos. [Santoro, 2/6/2003]

Entity Tags: Carlos Menem, Aguas Argentinas

Timeline Tags: Water

In the midst of a massive financial collapse, the private water company Aguas Argentinas—struggling to pay its external debts—insists that Argentina either implement a fixed peso-dollar exchange rate for its debt payments or allow it to increase water rates by 42 percent. When the Argentine government refuses, Aguas Argentinas threatens to take the country to the International Center for the Settlement of Investment Disputes. The ICSID is part of the World Bank, which owns a five percent stake in the company (see (Early 1994)). Argentina attempts to block Aguas Argentinas from going to the ICSID, but France, where the consortium is based, acts to permit it. [Santoro, 2/6/2003; Public Citizen, 6/14/2007]

Entity Tags: Aguas Argentinas, International Center for the Settlement of Investment Disputes

Timeline Tags: Water

The Argentine government approves Aguas Argentinas’s request for another hike in water rates (see also (Early 1994) and May 1998). This time the rates increase by 9.1 percent. In exchange, the company says it will expedite its plan to spend $1.1 billion expanding services to Buenos Aires’ poorer neighborhoods. [Santoro, 2/6/2003]

Entity Tags: Aguas Argentinas

Timeline Tags: Water

UNESCO’s Universal Declaration on Cultural Diversity is adopted at its 31st General Conference, the international agency’s governing body, in Paris, France. It is the highlight of the first ministerial-level meeting held by the international body after 9/11. The landmark international instrument brings cultural diversity to the unprecedented level of being defined “the common heritage of humanity” and deemed “as necessary for humankind as biodiversity is for nature.” In a statement marking the adoption, UNESCO Director General Koïchiro Matsuura says the declaration is “an opportunity for states to reaffirm their conviction that intercultural dialogue is the best guarantee of peace and to reject outright the theory of the inevitable clash of cultures and civilizations.” Matsuura adds that the declaration “can be an outstanding tool for development, capable of humanizing globalization.” The declaration is adopted just less than a year after “preliminary items” for a draft declaration on cultural diversity were first submitted at the second round table of culture ministers held on December 11-12, 2000 in Paris, France. The “preliminary items” were proposed alongside the presentation by a UNESCO Experts Committee of its conclusions on “strengthening UNESCO’s role in promoting cultural diversity in the context of globalization.” [UNESCO, 11/2001]

Entity Tags: Koichiro Matsuura, World Trade Organization, United Nations Educational, Scientific and Cultural Organization

Timeline Tags: Neoliberalism and Globalization

A 2003 report by the Center for Public Integrity finds that 10 years after the privatization of Buenos Aires’ water and sewer services (see April 28, 1993), poor neighborhoods still lack access to safe drinking water. The report cites the example of the Parravicino household, which lives in one of the poorest areas of Buenos Aires. “Mario Parravicino, who lives with his family in the dusty city of La Matanza, gets up each morning praying silently that it won’t rain. ‘When it rains it often floods and the sewage gets into everything,’ says the 60-year-old factory worker. ‘You can’t use the toilet because it backs up. It’s disgusting.’ La Matanza is among the poorest districts in the Buenos Aires metropolitan area, a maze of tiny cinder-block homes wedged together along dirt roads. There are no sewers, so the rains flood its houses and septic tanks, which often overflow into wells. Boiling is the only form of water treatment, and not everyone can afford the gas to boil the water. Nitrate levels, caused by sewage contamination, are dangerously high and waterborne diseases common. In Argentina, intestinal infestations cause 20 percent of infant deaths. Across town in Laferrere, the Rusman family has the same problem. Their well is only two meters from the septic tank, and the water is often suspiciously murky after a rainfall. ‘Whenever we can we boil it before drinking,’ Alejandra Rusman explained. ‘But we don’t often have money to pay for gas.’ The local church provides drinking water to those who can’t pay for gas, but the Rusmans don’t wish to be beggars. Alejandra worries constantly about her two sons Pablo and Martin, aged 7 and 4. ‘This situation is dangerous because we forget and the boys drink this cloudy water and it makes them sick,’ she said.” The reports also notes, “A country that only 10 years earlier had Latin America’s highest standard of living was now on a level with Jamaica; half of Argentina’s 37 million people lived below the poverty level.” [Santoro, 2/6/2003]

Entity Tags: Mario Parravicino, Alejandra Rusman, Center for Public Integrity

Timeline Tags: Water

Ahmad al Mukhtar is appointed as director of foreign relations in Iraq’s Ministry of Trade. One of his tasks will be to push for Iraq’s inclusion into the World Trade Organization. Al Mukhtar, who has no background in economics and whose previous job was reading the English-language news on television, shares Washington’s view that Iraq needs a market-based economy and that Iraqis need to be weaned from their dependence on the state. According to Al Mukhtar, Iraqis “are lazy. The Iraqis by nature, they are very dependent…. They will have to depend on themselves, it is the only way to survive in the world today.” [Harper's, 9/24/2004]

Entity Tags: Ahmad al Mukhtar

Timeline Tags: Iraq under US Occupation

Around 100,000 farm workers march to the main square of Mexico City to protest the removal of duties on farm imports that occurred just weeks earlier (see January 1, 1994). They demand that the government renegotiate NAFTA to better protect Mexican agricultural producers. [Houston Chronicle, 2/1/2003; Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

The US Agency for International Development asks BearingPoint, Inc to bid on a sole-sourced contract for “economic governance” work in Iraq. The contract document, which USAID says will eventually be opened up to a select pool of additional companies, was written by Treasury Department officials and reviewed by financial consultants. The confidential 100-page request, titled “Moving The Iraqi Economy From Recovery to Sustainable Growth,” states that the contractor will help support “private sector involvement in strategic sectors, including privatization, asset sales, concessions, leases and management contracts, especially in the oil and supporting industries.” The bid request lays out a plan to, among other things, rapidly replace Iraq’s currency; identify industries for consolidation, liquidation, and privatization; “rationalize” and “modernize” Iraqi banking and financial sectors; develop taxation, legal, and regulatory regimes to compliment a new market-based economy; devise a plan to turn Iraq’s rudimentary stock market into a “world-class exchange” for trading the shares of newly privatized companies; and create a public relations campaign to promote these changes to the public. Summarizing US objectives for the economic reorganization, the document states, “It should be clearly understood that the efforts undertaken will be designed to establish the basic legal framework for a functioning market economy; taking appropriate advantages of the unique opportunity for rapid progress in this area presented by the current configuration of political circumstances.” [Wall Street Journal, 5/1/2003]

Entity Tags: US Department of State, BearingPoint

Timeline Tags: Iraq under US Occupation

The US sends hundreds of economic advisers to Iraq to serve in the new government’s ministries. The advisers reportedly have a decisive say on most matters. [Inter Press Service, 12/24/2004]

Entity Tags: United States

Timeline Tags: Iraq under US Occupation

Jay Hallen, a 24-year old Yale graduate, is bored with his job at a real-estate firm. He is fascinated with the Middle East, and has taken some Arabic classes and read some history books about the region. He contacts Reuben Jeffrey, an adviser to CPA head L. Paul Bremer whom Hallen had met in 2002 when trying to land a job at the White House, and asks if there is a job for him in Baghdad.
'I Don't Have a Finance Background' - Three weeks later, Hallen is in Baghdad, and meets with Thomas Foley, the CPA official in charge of privatizing Iraq’s state-owned enterprises. Foley, a former classmate of President Bush and a major Republican donor, says he is putting Hallen in charge of Baghdad’s stock exchange. Hallen is shocked. “Are you sure?” Hallen asks. “I don’t have a finance background.” No problem, Foley responds. He will be the project manager; his subordinates will do the actual work. Before the invasion, Baghdad’s stock exchange was primitive by American standards; author Rajiv Chandrasekaran will describe it as loud, boisterous, and, despite all appearances, quite functional. After the invasion it was looted to the bare walls and ignored by the first wave of US economic reconstruction specialists. But Iraqi brokers and businessmen want it reopened, so the CPA acquiesces.
Revamping the Exchange - Hallen launches an ambitious, if almost entirely ignorant, plan to modernize and upgrade the stock exchange to make it the most technologically sophisticated exchange in the Arab world. He also wants to implement a new securities law that would make the exchange independent of the Finance Ministry. The Iraqi brokers and businessmen who clamored for the exchange to reopen are horrified at Hallen’s plans. “People are broke and bewildered,” broker Talib Tabatabai—a graduate of Florida State’s business department—tells Hallen. “Why do you want to create enemies? Let us open the way we were.” Tabatabai, like other brokers, believes Hallen’s plan is ludicrously grandiose. “It was something so fancy, so great, that it couldn’t be accomplished,” he will later recall. But Hallen is unmoved.
Hallen's View - “Their laws and regulations were completely out of step with the modern world,” Hallen will later say. “There was just no transparency in anything. It was more of a place for Saddam and his friends to buy up private companies that they otherwise didn’t have a stake in.” To just reopen the exchange the way it was, Hallen will insist, “would have been irresponsible and short-sighted.” Hallen recruits a team of American volunteers, most with no more experience or knowledge of finance than he has, to rewrite the securities laws, train the brokers, and purchase the necessary computers. By the spring of 2004, CPA head Bremer approves the new laws and appoints nine Iraqis hand-picked by Hallen to become the exchange’s board of governors.
No CPA Role - The new exchange board names Tabatabai as its chairman. The new laws have no place for a CPA adviser as a decision-maker; immediately a conflict between Hallen and the board arises. Hallen wants to wait several more months for the new computer system to arrive and be installed; unwilling to wait, Tabatabai and the board members buy dozens of dry-erase boards for the exchange floor, and two days after Hallen’s tour ends, the exchange is open for business. Without CPA oversight, the exchange quickly begins functioning more or less as it did before the invasion. When asked what would have happened had Hallen not been assigned to reopen the exchange, Tabatabai will answer: “We would have opened months earlier. He had grand ideas, but those ideas did not materialize.… Those CPA people reminded me of Lawrence of Arabia.” [Washington Post, 9/17/2006]

Entity Tags: Rajiv Chandrasekaran, Reuben Jeffrey, Talib Tabatabai, Thomas Foley, Iraq Finance Ministry, Coalition Provisional Authority, Jay Hallen, L. Paul Bremer

Timeline Tags: Iraq under US Occupation

The World Bank and the International Monetary Fund announce that they will send their economists to Iraq to assess needs for reconstruction as soon as it is safe to do so. The decision was made “with strong pressure from the United States,” the New York Times reports. [New York Times, 4/14/2004]

Entity Tags: International Monetary Fund, World Bank

Timeline Tags: Iraq under US Occupation

During this period, the Coalition Provisional Authority purchases concrete blast walls from foreign companies for as much as $1,000 a piece. There are seventeen state-owned cement companies in Iraq that could have produced the walls for around $100 each. None of these businesses are contracted by the CPA to build the walls, or participate in any other projects. Minister of Industry Mohamad Tofiq later says the US refused to work with Iraq’s cement companies because “no one believes in the public sector.” However, Tofiq notes, there were several offers from US companies to purchase the state-owned firms during this period. According to journalist Naomi Klein, the CPA’s refusal to work with the cement companies supports the theory that the CPA was engaged in “a deliberate strategy to neglect the state firms so that they can be sold more cheaply—a practice known as ‘starve then sell.’” [Harper's, 9/24/2004]

Entity Tags: Mohamad Tofiq

Timeline Tags: Iraq under US Occupation

The Mexican government, after weeks of negotiation with protesting farmers (see January 30, 2003), signs the National Rural Accord (also known as the National Agreement for the Countryside and the Development of Rural Society). The accord announces that the government will make “sweeping changes to rural infrastructure and state farm policy to modernize Mexico’s outdated agricultural system.” As part of the agreement, Mexico will also ask the US and Canada to allow for protection of Mexico’s rural economy, and review the possibility of implementing mechanisms against dumping and unfair competition. [Reuters, 4/28/2003; Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

Many Iraqi civil servants are angry about being unpaid for weeks. Workers in the electricity and water sectors have reportedly been told to expect a one-time payment of $20 from the Americans that is supposed to hold them over in the short term. [Christian Science Monitor, 4/28/2003]

Timeline Tags: Iraq under US Occupation

In response to a suggestion by Mexico that it will put tariffs on corn to protect domestic farmers from subsidized US corn (see April 28, 2003), the Chairman of the US Senate Committee on Finance, Charles Grassley, writes a letter to Mexican officials stating: “Mexico has recently undertaken a number of actions against US agricultural products that undermine the spirit, if not the law, of NAFTA. Mexico’s continued pattern of not meeting its international trade negotiations is unacceptable.” [Fanjul and Fraser, 8/2003, pp. 23 pdf file]

Entity Tags: Charles Grassley, North American Free Trade Agreement

Timeline Tags: Neoliberalism and Globalization

President Bush, in a commencement address at the University of South Carolina, says: “Soon, Iraqis from every ethnic group will choose members of an interim authority. The people of Iraq are building a free society from the ground up, and they are able to do so because the dictator and his regime are no more…. Across the globe, free markets and trade have helped defeat poverty, and taught men and women the habits of liberty. So I propose the establishment of a US-Middle East free trade area within a decade, to bring the Middle East into an expanding circle of opportunity, to provide hope for the people who live in that region. We will work with our partners to ensure that small and mid-sized businesses have access to capital, and support efforts in the region to develop central laws on property rights and good business practices. By replacing corruption and self-dealing, with free markets and fair laws, the people of the Middle East will grow in prosperity and freedom.” [US President, 5/12/2003]

Entity Tags: George W. Bush

Timeline Tags: Events Leading to Iraq Invasion, Iraq under US Occupation

L. Paul Bremer, US administrator for Iraq, issues Order 1, abolishing the Baath Party. The order, which permanently bans between 15,000 and 30,000 former Baath Party members from public office, marks the beginning of the controversial “De-Baathification” program. [Coalition Provisional Authority, 5/16/2003 pdf file; BBC, 5/16/2003] The order was drafted by Douglas Feith’s office in the Pentagon. [Isikoff and Corn, 2006, pp. 224]

Entity Tags: Coalition Provisional Authority, L. Paul Bremer, Douglas Feith

Timeline Tags: Iraq under US Occupation

Senator Norm Coleman, chairman of the Foreign Relations Western Hemisphere subcommittee, holds a hearing in which he says that a “tough response” against Mexico would be “warranted” for “unilateral renegotiation of NAFTA.” Present at the hearing are Bush administration officials and leaders of agribusiness interest groups. Jim Quackenbush, board member of the National Pork Producers Council, complains of a Mexican anti-dumping case against US hog exports and claims his goods are often halted at the border for “alleged sanitary concerns.” He calls for the US to “use all available means” to keep Mexico’s market open to US agricultural goods. Allen Johnson, chief agriculture negotiator in the office of the US Trade Representative, says that the US will work to defend its interests and is ready to retaliate if Mexico does not accede to its demands. [US Congress, 5/20/2003 pdf file; Star Tribune, 5/21/2003]

Entity Tags: North American Free Trade Agreement, Senate Foreign Relations Committee

Timeline Tags: Neoliberalism and Globalization

Bush signs Executive Order 13303, which declares: “Unless licensed or otherwise authorized pursuant to this order, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is prohibited, and shall be deemed null and void, with respect to the following: the Development Fund for Iraq, and all Iraqi petroleum and petroleum products, and interests therein, and proceeds, obligations, or any financial instruments of any nature whatsoever arising from or related to the sale or marketing thereof, and interests therein, in which any foreign country or a national thereof has any interest, that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons.” Watchdog groups interpret this as a way of granting a sweeping legal immunity from lawsuits and criminal charges to US oil firms that do business with Iraqi oil. [US President, 5/26/2003 pdf file; Los Angeles Times, 8/7/2003]

Entity Tags: George W. Bush

Timeline Tags: Iraq under US Occupation

May 23, 2003: Paul Bremer Dissolves Iraqi Army

Paul Bremer, head of the Office of the Coalition Provisional Authority in Iraq, issues Order 2 formally dissolving the Iraqi Army and other vestiges of the old Ba’athist state. [CNN, 5/23/2003; Coalition Provisional Authority, 5/23/2003] The order, drafted by Douglas Feith’s office in the Pentagon and approved by the White House, triggers mass protests among the estimated 300,000 to 500,000 former Iraqi soldiers who are left without a job and who are given only a small, one-time, $20 emergency payment. [New York Times, 5/24/2003; Agence France Presse, 5/26/2003; Isikoff and Corn, 2006, pp. 225] Together with the de-Ba’athification program, the disbanding of the Iraqi Army leads to some 500,000 people losing their source of income. [Los Angeles Times, 6/5/2003]
Criticism - The action will be highly criticized as a major blunder of the war. The decision was made by Walter Slocombe, a security adviser to Bremer, who proclaims that “We don’t pay armies we defeated.” A colonel on Jay Garner’s staff (see January 2003) will later say: “My Iraqi friends tell me that this decision was what really spurred the nationalists to join the infant insurgency. We had advertised ourselves as liberators and turned on these people without so much as a second thought.” [Atlantic Monthly, 12/2005]
Garner's Reaction - Garner himself will later speak on the subject, telling a Vanity Fair reporter: “My plan was to not disband the Iraqi Army but to keep the majority of it and use them. And the reason for that is we needed them, because, number one, there were never enough people there for security. [A US military commander told him the US Army was guarding a lot of places it had not planned to guard.] So we said, OK, we’ll bring the Army back. Our plan was to bring back about 250,000 of them. And I briefed [Defense Secretary] Rumsfeld. He agreed. [Deputy Defense Secretary] Wolfowitz agreed. [National Security Adviser] Condoleezza Rice agreed. [CIA Director] George [Tenet] agreed. Briefed the president on it. He agreed. Everybody agreed. So when that decision [to disband] was made, I was stunned.”
Iraqi Colonel's Reaction - US and UN weapons inspector Charles Duelfer will later say of the decision: “One Iraqi colonel told me, ‘You know, our planning before the war was that we assumed that you guys couldn’t take casualties, and that was obviously wrong.’ I looked at him and said, ‘What makes you think that was wrong?’ He goes, ‘Well, if you didn’t want to take casualties, you would have never made that decision about the Army.’” [Vanity Fair, 2/2009]

Entity Tags: Jay Garner, George W. Bush, Scott Wallace, Paul Wolfowitz, Walter Slocombe, George J. Tenet, Douglas Feith, L. Paul Bremer, Condoleezza Rice, Charles Duelfer, Bush administration (43), Donald Rumsfeld

Timeline Tags: Iraq under US Occupation

US administrator in Iraq Paul Bremer announces that Iraq’s economy will be revived through “free trade.” “A free economy and a free people go hand in hand,” he says, adding that the occupation powers “would like to see market prices brought into the economy… [and the] privatization of key elements.” State subsidies—which up until now have supplied ordinary Iraqis with affordable food, gasoline, and other essentials—will eventually be eliminated. According to Bremer, “history tells us that substantial and broadly held resources, protected by private property, private rights, are the best protection of political freedom. Building such prosperity in Iraq will be a key measure of our success here.” The Washington Post notes that “Iraqis would most likely not be deciding for themselves what kind of economy will replace the state-planned system that functioned under deposed president Saddam Hussein.” The paper also warns that “dismantling Iraq’s state-managed system holds big risks for the occupation authority at a time when most Iraqis are struggling to get by.” [Agence France-Presse, 5/26/2003; Washington Post, 5/27/2003; Sydney Morning Herald, 5/28/2003] Bremer also announces the creation of a trade-credit authority that would extend generous lines of credit to Iraq’s ministries, government-owned factories, and private companies so they can import needed goods and equipment (much of which had disappeared during the initial period of mass looting, see April 9, 2003). [New York Times, 5/26/2003; Agence France-Presse, 5/26/2003; Washington Post, 5/27/2003] “It will be a substantial credit facility that first symbolically indicates to the world that Iraq is open for business and also provides a practical incentive to people who want to trade with Iraq,” Bremer says. The agency will be funded by private banks and the Central Bank of Iraq [Agence France-Presse, 5/26/2003] , which is being overseen by Peter McPherson, a former deputy Treasury secretary and a Bank of America executive. [Washington Post, 5/9/2003] Bremer says that American and British companies will be among the first to benefit from these lines of credit. [New York Times, 5/26/2003]

Entity Tags: L. Paul Bremer, Peter McPherson

Timeline Tags: Iraq under US Occupation

Ramiro Lopes da Silva, the UN’s top humanitarian official in Iraq, criticizes the US for allowing “ideology” to guide its rebuilding efforts. He points out that the mass lay-off of Iraqi soldiers without any sort of reemployment could become a destabilizing factor and create additional anti-American sentiment. He also criticizes De-Baathification, saying that “Many bureaucrats who have important experience that would help the new government were only Ba’ath party members on paper.” [The Guardian, 5/26/2003]

Entity Tags: United Nations

Timeline Tags: Iraq under US Occupation

Coalition Provisional Authority administrator Paul Bremer (see May 1, 2003) meets with Iraqi Communications Minister Haider al-Abadi and Minister of Industry Mohamad Tofiq for the first time. Al-Abadi will later recall in an interview with journalist Naomi Klein that he told Bremer he would not support a policy of privatization. “I said, ‘Look, we don’t have the mandate to sell any of this. Privatization is a big thing. We have to wait until there is an Iraqi government.’” Tofiq likewise tells Bremer, “I am not going to do something that is not legal, so that’s it.” [Harper's, 9/24/2004]

Entity Tags: Haider al-Abadi, Mohamad Tofiq, L. Paul Bremer

Timeline Tags: Iraq under US Occupation

A team of economists and officials from the World Bank, IMF, and UN meet in Iraq to consider a new economic policy for the country. Nicholas Krafft, one of the economists with the World Bank, says that Iraq’s economy would be more accurately described as a “socialist command economy” than a “post-conflict economy.” He says “a macro-economic framework for Iraq including budget, fiscal, and monetary issues” needs to be established as part of the country’s transition to a market economy. “The issues of subsidies, prices, and state enterprises will have to be dealt with,” he adds. Kraft also says “it is important to involve Iraqis in this decision and the coalition is increasingly doing that.” [Agence France-Presse, 6/10/2003]

Entity Tags: Nicholas Krafft, International Monetary Fund, World Bank, United Nations

Timeline Tags: Iraq under US Occupation

Paul Bremer, US administrator for Iraq, signs Order 12, suspending all trade restrictions such as tariffs and customs duties until December 31, 2003. [Coalition Provisional Authority, 6/7/2003 pdf file] The policy is expected to have a negative impact on Iraq’s economy. In 2002, the gross domestic product (GDP) of Iraq was $25 billion. In 2003, it is expected to be $15 billion. Iraqi manufacturers complain that after 12 years of strangulation by UN sanctions they are nowhere near ready to compete with cheap foreign imports. A month after Bremer’s order, the San Francisco Chronicle will report that textile plants and clothing factories are being devastated by clothing from China. And chicken legs dumped on the Iraqi market by the American company Tyson will force Al-Helli Chicken Co., a former major chicken butcher, to lay off all but 20 of the firm’s 140 workers. [San Francisco Chronicle, 7/10/2003] The move also reportedly leads disgruntled Iraqi businessmen and manufacturers to begin funding the insurgency. [Harper's, 9/24/2004]

Entity Tags: L. Paul Bremer, Al-Helli Chicken Co., Tyson Foods, Inc.

Timeline Tags: Iraq under US Occupation

In an op-ed piece published by the Wall Street Journal, Paul Bremer argues that if Iraqis are to enjoy higher living standards and political freedom, the country will need to adopt a market-based economic reform policy. He says that economic growth in Iraq will “require the wholesale reallocation of resources and people from state control to private enterprise, the promotion of foreign trade, and the mobilization of domestic and foreign capital.” [Wall Street Journal, 6/20/2003]

Entity Tags: L. Paul Bremer

Timeline Tags: Iraq under US Occupation

Paul Bremer travels to the shores of Jordan on the Dead Sea to attend the World Economic Forum and promote US reconstruction efforts in Iraq. Here, he states his goal of privatizing state-owned firms. He says that the US-led occupation will “set in motion policies which will have the effect of reallocating people and resources from state enterprises to the more-productive private firms.” [Agence France-Presse, 6/17/2003; State Department, 6/23/2003]

Entity Tags: L. Paul Bremer

Timeline Tags: Iraq under US Occupation

At a press briefing in Baghdad, Paul Bremer says that Iraq should consider privatizing its state-owned sectors and allowing foreign investment into its oil industry soon, even if that means doing so before Iraq has an elected government. He says that the soon-to-be-appointed Iraq Governing Council will need to reassure private investors by taking a friendly stance toward foreign capital. “Privatization is obviously something we have been giving a lot of thought to,” he says. “When we sit down with the governing council… it is going to be on the table. The governing council will be able to make statements that could be seen as more binding and the trick will be to figure out how we do this. Everybody knows we cannot wait until there is an elected government here to start economic reform.” [Reuters, 7/8/2003]

Entity Tags: L. Paul Bremer, Iraqi Governing Council

Timeline Tags: Iraq under US Occupation

A senior Coalition Provisional Authority (CPA) official announces plans to waive an existing Iraqi law requiring foreign investors in the telecommunications industry to subcontract at least 51 percent of their work to Iraqi companies. The CPA justifies the move saying that the waiver would encourage investment by reducing the risk for foreign telecom companies. The waiver will expire in two years. [Revenue Watch Institute, 2003, pp. 4 pdf file; Financial Times, 7/18/2003]

Entity Tags: Coalition Provisional Authority

Timeline Tags: Iraq under US Occupation

President Bush appoints Thomas Foley to the new position of director of private-sector development for the interim US authority in Iraq. Foley, a corporate turnaround expert and multi-millionaire investor, attended Harvard Business School with President Bush and served as the Connecticut finance chairman for Bush’s 2000 campaign. Foley’s task will be to help open Iraq up to foreign investment and to privatize more than 200 state-owned industries, including mining, chemical, cement, and tobacco companies. Excluded from the privatization plan will be Iraq’s oil, utility, and insurance industries. [Financial Times, 8/8/2003; Washington Post, 10/2/2003] The targeted industries currently employ close to 500,000 workers, or three to four percent of the country’s total workforce. Many Iraqis are unhappy with the plan. They say only an elected Iraqi government should make such decisions. According to Fareed Yasseen, adviser to Governing Council member Adnan Pachachi, the assets will probably be sold off to foreign firms and Iraqi merchants who grew wealthy off their connections to Saddam Hussein’s regime, since they are the only ones who will be able to afford to make the purchases. He warns, “If you have a situation where state assets are sold to foreigners or result in large layoffs, this will lead to popular unrest.” [USA Today, 8/9/2007]

Entity Tags: Thomas Foley, George W. Bush, Fareed Yasseen

Timeline Tags: Iraq under US Occupation

The Republican-connected firm New Bridge Strategies partners up with Diligence-Iraq to provide security for companies wanting to do business in Iraq. Diligence vets local employees and partners, reviews potential investments, provides daily intelligence briefs, and supplies security for company personnel and assets. Its fees are based on the level of risk involved. Diligence was formed in 2000 by two former intelligence officers, Nick Day and Mike Baker. Day, an expert in Islamic militant groups, is a former MI5 agent, and Baker was a CIA covert field operations officer specializing in “counterterrorism, counternarcotics, and counterinsurgency operations.” The company employs about 200 people—mainly former members of the US Special Forces, New Zealand’s equivalent of the Green Berets, and the Iraqi military—and has offices in London, the US, Geneva, and the Middle East. Its annual gross revenue is around $10 million. The company works hand-in-hand with New Bridge Strategies, whose chairman, Joe M. Allbaugh, formerly served as director of FEMA under President Bush. In addition to being Diligence-Iraq’s chief executive officer, Baker also serves on New Bridge’s advisory board member. Diligence received its initial financial backing from the Republican-connected lobbying firm Barbour, Griffith & Rogers (BGR). Like New Bridge, Diligence shares office space at BGR’s office in Washington DC. BGR also provided Diligence with its well-connected chairman Richard Burt, former US ambassador to Berlin, as well as its impressive advisory board. One of the advisers is Ed Mathias of the Carlyle Group. [New York Times, 9/30/2003; Washington Post, 10/2/2003; New York Times, 10/6/2003; Financial Times, 12/12/2003; Independent, 2/8/2004]

Entity Tags: Richard Burt, Diligence-Iraq, Ed Mathias, Barbour Griffith & Rogers, Mike Baker, Nick Day

Timeline Tags: Iraq under US Occupation

Paul Bremer signs Order 37, titled “Tax Strategy for 2003,” reducing the tax rate on corporations from a high of 40 percent to a flat rate of 15 percent. The income tax rate is also capped at 15 percent. “The highest individual and corporate income tax rates for 2004 and subsequent years shall not exceed 15 percent,” the order says. [Coalition Provisional Authority, 9/19/2003 pdf file] The flat tax has long been a goal of economic conservatives and was planned for Iraq in pre-war planning sessions with Iraqi exiles. According to one Middle East expert interviewed by the Washington Post, the new tax system “has almost no support from other members of the US-appointed Iraqi Governing Council.” The new tax law will take effect in January. In the meantime, reports the Post, “Bremer has abolished all taxes except for real estate, car sales, gasoline and the pleasantly named ‘excellent and first class hotel and restaurant tax.’ Even while leaving these Hussein-era levies in place, Bremer exempted his coalition authority, the armed forces, their contractors, and humanitarian organizations. Exempting occupation personnel leaves only the Iraqis to pay taxes, as well as journalists, business people, and other foreigners.” [Washington Post, 11/2/2003]

Entity Tags: L. Paul Bremer

Timeline Tags: Iraq under US Occupation

US administrator for Iraq Paul Bremer signs CPA Order 39 setting terms for foreign investment that are far more favorable than those that existed under the previous government. The order eliminates Iraq’s longstanding restrictions on foreigners’ rights to own property and invest in Iraqi companies. It grants foreign investors the right to fully own Iraqi enterprises and transfer 100 percent of all profits outside of Iraq. Prior Iraqi law, which allowed citizens of Arab countries to invest in Iraq, required that a certain percentage of investment profits be reinvested in Iraq. Order 39 also prohibits the government from establishing any terms for investment that would favor Iraqi investors over foreign investors. The order also states that in cases “where an international agreement to which Iraq is a party provides for more favorable terms with respect to foreign investors undertaking investment activities in Iraq, the more favorable terms under the international agreement shall apply.” [Coalition Provisional Authority, 9/19/2003 pdf file]

Entity Tags: L. Paul Bremer, Coalition Provisional Authority

Timeline Tags: Iraq under US Occupation

At the annual World Bank/IMF meeting in Dubai, Iraq’s nominal finance minister Kamel al-Gailani announces Bremer’s shock therapy program of economic reforms. The announcement comes two days after Bremer signed a number of orders opening up Iraq’s economy to foreign investment (see September 19, 2003, September 19, 2003, and September 19, 2003). Collectively, the orders allow foreign investors to acquire 100 percent ownership of Iraqi assets in any sector except oil production and refining, give foreign investors equal legal standing with local firms, and allow them to repatriate all profits made in Iraq without any requirements for local re-investment. The laws also cap income and corporate taxes at 15 percent and slash tariffs down to 5 percent, with the exception of tariffs on food, drugs, books, and other humanitarian imports, which can be imported duty-free. Al-Gailani says these “measures will be implemented in the near future and represent important steps in advancing Iraq’s reconstruction effort.” As an article in Economist magazine will note, the changes, which “bear the signature of Paul Bremer… and the imprimatur of the American consultants it has hired to frame economic policies,” represent “a radical departure for Iraq.” The article—titled “Let’s all go to the yard sale”—calls these reforms “the kind of wish-list that foreign investors and donor agencies dream of for developing markets.” The caption of an image accompanying the article reads, “If it all works out, Iraq will be a capitalist’s dream.” But the magazine also acknowledges that there will be resistance to these reforms. “Given the shock and awe expressed by many Baghdad businessmen at the scale of the changes, it is not clear that such a future regime would be able to resist pressures to reimpose protectionism.” It also predicts that the rapid overlay of this legal framework over Iraq’s existing economic system will create disparities. “The instant discarding of 40 years of national-socialist commercial culture is likely to create serious distortions,” the magazine says. [New York Times, 9/21/2003; Daily Telegraph, 9/22/2003; Economist, 9/27/2003]

Entity Tags: Kamel al-Gailani

Timeline Tags: Iraq under US Occupation

The twenty-five members of the Iraqi Governing Council and the twenty-five interim ministers unanimously decide to reject cooperation with the CPA in the privatization of state-owned companies and publicly owned infrastructure. [Harper's, 9/24/2004]

Entity Tags: Iraqi Governing Council

Timeline Tags: Iraq under US Occupation

A report by the Carnegie Endowment for International Peace finds that the positive aspects of NAFTA just barely compensate for its negative effects. Among its findings:
bullet The net jobs gain in Mexico has been surprisingly small. In fact, 30 percent of all jobs that have been created in the maquiladora sector (export assembly plants) have been lost as company operations have since moved to lower wage countries such as China.
bullet Despite growth in productivity, real wages in Mexico are lower than they were when NAFTA first took effect. Although this can partially be attributed to the Peso Crisis of 1994-1995. It is also noted that wages in Mexico are “diverging from, rather than converging with, US wages.”
bullet Income disparity has grown drastically, with the top 10 percent of households having increased its share of the national income while the remaining 90 percent has lost its share or has seen no change at all. [Papademetriou et al., 8/2003]

Entity Tags: North American Free Trade Agreement, Carnegie Endowment for International Peace

Timeline Tags: Neoliberalism and Globalization

Paul Bremer meets with President Bush in Washington for a private meeting. The Coalition Provision Authority’s effort to implement a number of structural changes to Iraq’s economy is failing, and Washington needs to rethink its strategy. Members of the US-backed Iraqi interim government oppose the changes, and corporate attorneys are advising their clients that Bremer’s orders opening up Iraq to foreign investment could be challenged by a future Iraqi government on the basis that the orders violated UN Resolution 1483 (see May 22, 2003). That resolution stated that the US and Britain were bound to the Hague Regulations of 1907, which bars occupying powers from changing the laws of the occupied country (see October 18, 1907). If corporations purchase Iraqi state assets, and a future elected government declares Bremer’s orders illegal, the companies could lose their investments, the lawyers warn. The risk is so great that not a single insurance company is willing to insure its corporate clients for the “political risk” of losing their investment to expropriation. Bremer returns to Iraq from Washington with a Plan B. On June 30, the Coalition Provisional Authority will be dissolved and the sovereignty of Iraq will be turned over to a US-backed transitional government. That government will be bound by an “interim constitution” (see March 8, 2004), which will contain a clause barring the transitional government from modifying any of Bremer’s laws. [Harper's, 9/24/2004]

Entity Tags: L. Paul Bremer, George W. Bush

Timeline Tags: Iraq under US Occupation

In an opinion piece published by Middle East Economic Survey, Helmut Merklein, a former US assistant secretary of international energy affairs (1984 to 1990), argues that “the concept that Iraqi oil production should remain under exclusive Iraqi control should be anchored in the Iraqi constitution.” He reasons that because oil production accrues “huge rents,” those rents, “like all rents, belong in principle to the resource owner, the people of Iraq.” He says the best way for Iraqis to capture those rents is to leave the Iraq National Oil Company (INOC) in public hands and use utility contracts as the model for any agreements with the private sector. In utility-type agreements, the host governments, instead of the oil companies are the ones to benefit when profits exceed an agreed-upon rate of return. Merklein disputes the notion that Iraq would be unable to jump start the oil sector on its own. He says very little new development is needed and that the funds needed for investment “are dwarfed by the wealth represented by already proven but undeveloped reserves.… They certainly don’t need $10 billion, as projected by the Council of Foreign Relations, or $38 billion for ‘green field development’ (Deutsche Bank)…. If their objective were to restore production to their pre-Gulf-War quota of 3.14 million barrels per day, they would need a capital infusion of less than $1.0 billion. And they categorically do not need the multinationals to get access to that kind of investment. $1.0 billion is less than 0.1 percent of the value of Iraq’s currently proved reserve base. That would be like securing a $300 loan by pledging a fully paid-for $300,000 residence as collateral. With that kind of collateral, there will be no shortage of commercial or governmental (bilateral or multilateral) credit institutions eager to supply the required capital needed to rehabilitate oil production in Iraq.” The Iraqis do not need help from the international oil companies, he says, “The Iraqis have been producing oil for the last 31 years…. They are quite capable of boosting production without the help from international oil companies. They have the experience, they have a lot of practical know-how, and they are known to be inventive and flexible. Whatever they don’t have by way of technological advances, they can acquire through outsourcing in the open market, much like the multinationals do when they turn to seismic firms for exploration, drilling firms for drilling, logging firms for reserve definition, and reservoir engineering firms for production optimization.” Merklein also takes issue with claims that Iraq would be unable to produce more than three million barrels per day. “Just how ridiculous that claim is can be seen from a comparison of the US and Iraqi reserve bases and the production these bases are able to maintain. The US has at present 22.4 billion barrels of proved crude oil reserves; Iraq has 112 billion. The US produces 5.3 million barrels per day from that base. At five times our proven reserve base, Iraq can produce five times the US daily production rate, or some 23 million barrels per day. Without any additional exploration. These are proved reserves. The Iraqis have some 73 oil fields, 58 of them idle. All they have to do is drill them up.” [Middle East Economic Survey, 1/12/2005]

Entity Tags: Helmut Merklein

Timeline Tags: Iraq under US Occupation

Joseph Stiglitz, Nobel laureate and former chief economist at the World Bank, warns in an op-ed piece that US plans to submit Iraq’s economy to shock therapy—i.e., the rapid implementation of market reforms such as privatization and deregulation—will fail in Iraq. He advises the international community to “direct its money to humanitarian causes, such as hospitals and schools, rather than backing American designs.” He writes: “When the Berlin Wall fell, the countries of Eastern Europe and the former Soviet Union began transitions to a market economy, with heated debates over how this should be accomplished. One choice was shock therapy… while the other was gradual market liberalization to allow for the rule of law to be established at the same time. Today, there is a broad consensus that shock therapy, at least at the level of microeconomic reforms, failed, and that countries (Hungary, Poland, and Slovenia) that took the gradualist approach to privatization and the reconstruction of institutional infrastructure managed their transitions far better than those that tried to leapfrog into a laissez-faire economy…. But the Bush administration, backed by a few handpicked Iraqis, is pushing Iraq towards an even more radical form of shock therapy than was pursued in the former Soviet world. Indeed, shock therapy’s advocates argue that its failures were due not to excessive speed—too much shock and not enough therapy—but to insufficient shock.” But it won’t work, he says, because instability will deter investment and those who do purchase state assets “may then be reluctant to invest in them; instead, as happened elsewhere, their efforts may be directed more at asset stripping than at wealth creation.” He adds that providing Iraq with loans will only exacerbate the country’s difficulties. He concludes: “America’s economic program for reconstructing Iraq is laying the foundations for poverty and chaos.” [ZNet, 3/17/2004]

Entity Tags: Joseph Stiglitz

Timeline Tags: Iraq under US Occupation

Jay Garner.Jay Garner. [Source: Representational Pictures]The US’s first administrator of post-invasion Iraq, Jay Garner, tells BBC reporter Greg Palast that he was replaced by Paul Bremer because of his insistence on early elections and resistance to the Bush administration’s plan to impose a free market system on Iraq. Garner says he felt it would have been wrong to impose a new economic system on the Iraqi people before they could elect a representative government. [Guardian, 3/18/2003]

Entity Tags: Bush administration (43), Jay Garner, Greg Palast

Timeline Tags: Iraq under US Occupation

Paul Bremer, the US administrator for Iraq, issues Order 81 rewriting Iraq’s 1970 patent law. The order extends intellectual property right protections to plants, making it illegal for Iraqi farmers to save, share, or replant seeds harvested from new varieties registered under the law. The order was written with the help of Linda Lourie, an attorney-advisor in the US Patent Office’s Office of External Affairs. She was invited to Iraq to help draft laws that would ensure Iraq’s eligibility into the World Trade Organization (WTO). Bremer’s order, however, makes Iraq’s patent law stricter even than the WTO-compliant 1991 International Convention for the Protection of New Varieties of Plants (see March 19, 1991), which allows its member-states to exempt farmers from the prohibition against seed saving. Lourie claims these changes were sanctioned by the Iraqi governing council, which she says wants Iraq to have the strongest intellectual property rules in the region in order to attract private investment. [Administrator of the Coalition Provisional Authority of Iraq, 4/4/2004 pdf file; GRAIN, 10/2004; National Public Radio, 11/24/2004]

Entity Tags: L. Paul Bremer, Linda Lourie

Timeline Tags: Seeds, Iraq under US Occupation

Norwegian petroleum firm Det Norske Oljeselskap (DNO) signs a production-sharing agreement with the Kurdistan Regional Government (KRG) before a legal framework has been drawn up in Iraq to govern such actions. [Petroleum Economist, 2/8/2006]

Entity Tags: Det Norske Oljeselskap

Timeline Tags: Iraq under US Occupation

The new Iraqi government settles with the IMF on $81 million in overdue financial obligations to the organization. The settlement paves the way for Iraq to receive emergency assistance from the IMF (see September 29, 2004). [International Monetary Fund, 9/29/2004]

Entity Tags: Iraq, International Monetary Fund

Timeline Tags: Iraq under US Occupation

The Iraqi government agrees to meet conditions set by the IMF for an “enhanced post-conflict facility” program. The IMF program will include $436.3 million in Emergency Post-Conflict Assistance loans to the Iraqi government. The amount will be upped if Iraq meets more demanding conditions. A press release issued by the organization states that it intends to develop “a reform program in areas in which progress must be made in 2005 to set the economy on a sustainable path, including tax reform, financial sector reform, restructuring of state-owned enterprises, and enhancing the governance and transparency of the oil sector, all of which will be key in promoting the recovery and growth of the private sector.” [International Monetary Fund, 9/29/2004; Inter Press Service, 10/1/2004] One of the reforms the new Iraqi government agrees to implement is the rolling back of Iraq’s huge subsidies system. But as Inter Press Service notes, Iraq’s food subsidies system “kept millions of Iraqis from starvation under US and UK-pressed sanctions imposed by the United Nations after the 1991 Gulf War.… It is believed that many more Iraqis would have died if not for Hussein’s strong subsidies system that gave food to Iraqi families.” [US Department of State, 12/21/2004; Inter Press Service, 12/24/2004]

Entity Tags: International Monetary Fund

Timeline Tags: Iraq under US Occupation

Rich creditor nations in the Paris Club announce they have reached a deal with the US on the proposed forgiveness of the $38.9 billion owed to those countries. The US wanted 95 percent of the debt canceled while the Paris Club was initially only willing to forgive 50 percent. Under the agreement, the Paris Club agrees to forgive 80 percent. Thirty percent of this will be forgiven immediately, followed by another 30 percent when Iraq agrees on a reform program with the International Monetary Fund, which it is expected to do in 2005. The remaining 20 percent will be canceled in 2008, after Iraq has implemented the reforms. The creditor countries owed the largest sums of money are Japan (4.1 billion dollars), France (2.9 billion), Germany (2.4 billion), the United States (2.2 billion), Britain (900 million), and Russia (9 billion). [St. Petersburg Times, 11/22/2004; Inter Press Service, 11/23/2004] The deal is denounced in a resolution passed by the Iraqi National Assembly on November 30. The resolution states that “the Paris Club has no right to make decisions and impose IMF conditions on Iraq.” It also says that nearly all of the debt is odious and should be canceled. [Inter Press Service, 11/23/2004; Iraqi National Assembly, 11/30/2004]

Entity Tags: Iraqi National Congress, Paris Club, International Monetary Fund

Timeline Tags: Iraq under US Occupation

Top Iraqi officials head to Washington for the second meeting of the Iraq-US Joint Economic Commission. The first meeting took place in September. At a press conference, Iraqi Finance Minister Adil Abdel Mahdi tells reporters that the new Iraqi government is implementing, or intends to implement, a number of major changes to the country’s economy. Some of the reforms he mentions would be part of a new oil law that will be “open to investment, to foreign investment downstream, maybe even upstream.” He explains that the law is being developed by a “high-ranked official from the Oil Ministry” in consultation with “his counterparts and with agencies here in the States.” Mahdi also says that Iraq will review the oil contracts that Saddam Hussein had inked with countries like France and Russia. “So I think this is very promising to the American investors and to American enterprises, certainly to oil companies,” he says. Mahdi also defends an agreement the Iraqi government recently made with the IMF to implement certain reforms, which included an end to food subsidies (see September 29, 2004). “I think this is a necessity for the Iraqi economy,” Mahdi says. “We really need to work on our subsidy side. Subsidies are taking almost 60 percent of our budget. So this is something we have to work on… Other measures really were a real necessity for the Iraqi economy before becoming conditions asked by the IMF.” But as Inter Press Service notes, Iraq’s food subsidies system “have kept millions of Iraqis from starvation under US and UK-pressed sanctions imposed by the United Nations after the 1991 Gulf War.… It is believed that many more Iraqis would have died if not for Hussein’s strong subsidies system that gave food to Iraqi families.” An issue that is apparently not discussed during the two-day meeting between US and Iraqi officials is the large amount of money that is known to have been defrauded from the CPA. In response to a reporter’s question, Mahdi says only, “No, this issue has not been discussed. We are interested to follow such issues, of course. Whatever concerns corruption or money, we are interested.” [US Department of State, 12/21/2004; Inter Press Service, 12/24/2004]

Entity Tags: Adil Abdel Mahdi

Timeline Tags: Iraq under US Occupation

The US-Iraq Joint Commission on Reconstruction and Economic Development meets in Amman, Jordan, to discuss Iraq’s progress in implementing a number of reforms that will help transition the country to a market-based economy (see, e.g., September 29, 2004). During the two-day meeting, Iraqi representatives reconfirm their commitment to scaling back fuel and food subsidies. They also announce the opening of a USAID-backed Investment Promotion Agency that will help Iraqi and foreign investors open businesses in Iraq. [US Department of State, 7/13/2005]

Entity Tags: Iraq, United States

Timeline Tags: Iraq under US Occupation

The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions is adopted at the 33rd UNESCO General Conference held in Paris, France. It is the first major international convention to be adopted that reaffirms the sovereign right of states to formulate and implement cultural policies. The convention’s approval is seen as a challenge to the legitimacy of the global regime of bilateral, regional and multilateral free trade agreements revolving around the World Trade Organization (WTO), in particular regarding international trade in cultural goods and services and the related cultural policies effected by governments. The approval of this international instrument is seen as a major culmination of years-long efforts led by Canada and the European Union, specifically France, to arrest liberalization commitments in various free trade agreements that tend to strengthen Hollywood’s overwhelming advantage in the global film, music, publishing, advertising, and other cultural industries. The convention is overwhelmingly approved despite a strong counter-lobby by the United States. A hundred and forty-eight vote in the convention’s favor, four countries (Australia, Honduras, Liberia, and Nicaragua) abstain, and only two countries—the United States and Israel—vote against its approval. [Coalition Currents, 10/2005]

Entity Tags: World Trade Organization, UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, United Nations Educational, Scientific and Cultural Organization

Timeline Tags: Neoliberalism and Globalization

David Addington.David Addington. [Source: Richard A. Bloom / Corbis]David Addington, the chief counsel for Vice President Dick Cheney, is named Cheney’s chief of staff to replace Lewis “Scooter” Libby, who was convicted of perjury and obstruction of justice in the Valerie Plame Wilson case (see February 13, 2002). [National Journal, 10/30/2005; MSNBC, 11/4/2005] Addington is described by one White House official as “the most powerful man you never heard of.” A former Justice Department official says of Addington, “He seems to have his hand in everything, and he has these incredible powers, energy, reserves in an obsessive, zealot’s kind of way.” He is, according to former Solicitor General Theodore Olson, Cheney’s “eyes, ears, and voice.” [US News and World Report, 5/21/2006] Addington is a neoconservative ideologue committed to dramatically expanding the power of the presidency, and a powerful advocate of the “unitary executive” theory of presidential power. He has been with Cheney for years, ever since Cheney chose him to serve as the Pentagon’s chief counsel while Cheney was Defense Secretary under Ronald Reagan. During that time, Addington was an integral part of Cheney’s battle to keep the Iran-Contra scandal from exploding (see 1984). [Washington Post, 10/11/2004; National Journal, 10/30/2005; MSNBC, 11/4/2005; US News and World Report, 5/21/2006] According to Larry Wilkerson, the former chief of staff to former Secretary of State Colin Powell, documentary evidence shows that Cheney’s office, and Addington in particular, were responsible for giving at least tacit approval for US soldiers to abuse and torture prisoners in Iraq (see January 9, 2002). In an administration devoted to secrecy, Addington stands out in his commitment to keeping information away from the public. [Washington Post, 10/11/2004] Though Addington claims to have a lifelong love affair with the Constitution, his interpretation of it is somewhat unusual. One senior Congressional staffer says, “The joke around here is that Addington looks at the Constitution and sees only Article II, the power of the presidency.” [US News and World Report, 5/21/2006] Addington’s influence in the White House is pervasive. He scrutinizes every page of the federal budget, hunting for riders that might restrict the power of the president. He worked closely with Gonzales to oppose attempts by Congress to pry information from the executive branch, and constantly battles the State Department, whose internationalist philosophy is at odds with his and Cheney’s own beliefs. [Washington Post, 10/11/2004] Former Reagan Justice Department official Bruce Fein calls Addington the “intellectual brainchild” of overreaching legal assertions that “have resulted in actually weakening the presidency because of intransigence.” According to Fein, Addington and Cheney are doing far more than reclaiming executive authority, they are seeking to push it farther than it has ever gone under US constitutional authority. They have already been successful in removing executive restraints formerly in place under the War Powers Act, anti-impoundment legislation, the legislative veto and the independent counsel statute. “They’re in a time warp,” Fein says. “If you look at the facts, presidential powers have never been higher.” [Washington Post, 10/11/2004] “He thinks he’s on the side of the angels,” says a former Justice Department official. “And that’s what makes it so scary.” [US News and World Report, 5/21/2006]

Entity Tags: Saddam Hussein, US Department of State, Theodore (“Ted”) Olson, US Department of Justice, US Department of Defense, Ronald Reagan, Lewis (“Scooter”) Libby, National Security Council, Bruce Fein, Bradford Berenson, 9/11 Commission, Richard (“Dick”) Cheney, David S. Addington, John Bellinger, Jack Goldsmith, Lawrence Wilkerson, John C. Yoo, Valerie Plame Wilson

Timeline Tags: Civil Liberties, Niger Uranium and Plame Outing

Through a unanimous all-party vote at its National Assembly, Quebec becomes the first government worldwide to approve the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions. The approval comes just three weeks after the landslide vote for the international convention at the UNESCO 33rd General Conference in Paris, France. The day’s favorable vote on the convention is marked as well by statements by leading officials of Quebec noting Quebec’s prime role in the formation of the UNESCO instrument, as well as how the convention boosts Quebec’s efforts to protect and promote its cultural industries. Deputy Premier and Minister of International Relations Monique Gagnon-Tremblay emphasizes Quebec’s important contribution to the “emergence of an international instrument of fundamental importance for the cultural sector, and over and beyond this, for the socio-economic development of all our peoples at the beginning of the 21st century.” Culture and Communications Minister Line Beauchamp ends her own statements by calling the adoption of the convention “a great day for Quebec culture,” adding: ”(T)he fundamental issue is the commitment of states to support their cultures through cultural policies that take the form of subsidies, tax credits, of regulatory policies.… We should be aware to what degree everyday life is shaped and affected by culture and artistic creations.… It is important to realize that the cultural policies I just described are behind the songs you hear on the radio, the television programs you watch, the books you read, your encounters with culture.” For his part, Claude Béchard, minister of economic development, innovation, and exports, stresses the convention “will serve as a tool of reference for states facing pressure to liberalize their cultural sectors by helping to legitimize at the international level their cultural policies.” Premier Jean Charest, meantime, highlights the close cooperation between Quebec and the federal government of Canada in building international support for the convention. Charest indicates again his government is determined to continue championing the convention internationally, and to continue supporting Canada’s Coalition for Cultural Diversity and Quebec’s leading cultural organizations in their work to mobilize cultural professionals around the world to support ratification. [Coalition Update, 11/2005]

Entity Tags: United Nations Educational, Scientific and Cultural Organization, Claude Béchard, Jean Charest, UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions, Line Beauchamp, Monique Gagnon-Tremblay

Timeline Tags: Neoliberalism and Globalization

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