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Worried about Price of Gas? End U.S. Wars

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Who are these powerful special interests, the highly influential beneficiaries of war dividends who camouflage their evil objectives behind national interests in order to perpetuate war and militarism and fill out their deep pockets, or further their geopolitical interests in the Middle East?

A most widely-cited factor behind the Bush administration's drive to war and the soaring energy cost is said to be Big Oil. Despite its popularity, however, this claim cannot be supported by facts; it tends to rest more on perception and precedent than reality.

It is true that for a long time, from the beginning of Middle Eastern oil exploration and discovery in the early twentieth century until the mid-1970s, colonial and/or imperial powers controlled oil either directly, or through control of oil producing countries""at times, even by military force. But that pattern of exploitation of global markets and resources has now changed.

It is also true that, once the Bush administration commenced with the invasion of Iraq, American oil companies set up shop in Baghdad in order to partake in the spoils of war. But this was not limited to oil companies; many non-oil transnational corporations likewise rushed to Baghdad to make an economic killing.

The larger part of the perception, however, stems from the fact that oil companies handsomely benefit from oil price hikes that result from war and political turbulence in the Middle East. Such benefits are, however, largely incidental. Surely, American oil companies would welcome the spoils of war. From the largely incidental oil price hikes that follow war and political convulsion, most observers automatically conclude that Big Oil must have been behind the war.

There is no hard evidence, however, that oil companies pushed for or supported the Bush administration's plans of invading Iraq""just as they are now leery of the administration's threat of a military strike against Iran. "The big oil companies were not enthusiastic about the Iraqi war,"- says Fareed Mohamedi of PFC Energy, an energy consultancy firm based in Washington, D.C. "Corporations like Exxon-Mobil and Chevron-Texaco want stability, and this is not what Bush is providing in Iraq and the Gulf region,"- adds Mohamedi [1].

During the past few decades, major oil companies have consistently opposed U.S. policies and military threats against countries like Iran, Iraq, and Libya. They have, indeed, time and again, lobbied U.S. foreign policy makers for the establishment of peaceful relations and diplomatic rapprochement with those countries. The Iran-Libya Sanction Act of 1996 (ILSA) is a strong testament to the fact that oil companies nowadays view wars, economic sanctions, and international political tensions as harmful to their long-term business interests and, accordingly, strive for peace, not war, in international relations.

The 1996 Iran-Libya Sanction Act, which amounted to a total trade and investment embargo against these two countries, penalized not only Iran and Libya, but also major American oil companies, especially the Conoco oil company that had just signed a $1 billion contract to develop fields in Iran.

It is no secret that the major force behind the Iran-Libya Sanction Act was the America Israel Public Affairs Committee (AIPAC). The success of AIPAC in passing ILSA through both the Congress and the White House over the opposition of the major U.S. oil companies is testament to the fact that, in the context of U.S. policy in the Middle East, even the influence of Big Oil pales vis-à-vis the influence of the pro-Israel lobby [2].

So, if Big Oil no longer favors war and political turbulence in oil markets, what, then, are the driving forces behind the Bush administration's war and military adventures in the Middle East?

Many would immediately point to the power and influence of neoconservative forces in and around the Bush administration. While obviously this would not be false, it would not be the whole truth either; it hides more than it reveals. Specifically, it tends to lose sight of the bigger, but largely submerged, picture: the powerful special interests that lie behind the façade of neoconservative figures.

There is clear evidence that the leading neoconservative figures have been long-time political activists who have worked through think tanks set up to serve either as the armaments lobby, or the pro-Israel lobby, or both""going back to the 1990s, 1980s and, in some cases, 1970s. These corporate-backed militaristic think tanks include the American Enterprise Institute, Project for the New American Century, Center for Security Policy, Middle East Media Research Institute, Washington Institute for Near East Policy, Middle East Forum, National Institute for Public Policy, and Jewish Institute for National Security Affairs.

There is also evidence that the major components of the Bush administration's foreign policy, including the war on Iraq, were designed long before George W. Bush arrived in the White House""largely at the drawing boards of these think thanks, often in collaboration directly, or indirectly, with the Pentagon, the arms lobby, and pro-Israel lobby. Even a cursory look at the records of these militaristic think tanks""their membership, their financial sources, their institutional structures, and the like""shows that they are set up to essentially serve as institutional fronts to camouflage the dubious business and political relationship between the Pentagon, its major contractors, and the pro-Israel lobby on the one hand, and militaristic neoconservative politicians, on the other [3].

While the Bush administration's unilateral wars and military adventures have brought unnecessary death, destruction, and economic hardship to millions, including many in the United States, they have also brought fortunes and prosperity to war profiteers. Pentagon contractors constitute the overwhelming majority of these profiteers. They include not only giant manufacturing contractors such as Lockheed Martin, Northrop Grumman and Boeing, but also a complex maze of over 100,000 service contractors and sub-contractors such as private army or security corporations and "reconstruction"- firms.

The rise of the fortunes of the major Pentagon contractors can be measured, in part, by the growth of the Pentagon budget since President George W. Bush arrived in the White House: it has grown by more than 76% percent, from $297 billion in 2001 to almost $520 billion in 2008. These figures do not include the Homeland Security budget, which is close to $40 billion for the 2008 fiscal year alone, and the costs of the wars in Iraq and Afghanistan, which amount to nearly $200 billion per year.

The skyrocketing Pentagon's share of public money has meant that, for example, in the current (2008) fiscal year military spending represents 58 cents out of every dollar spent by the U.S. government on discretionary programs [4]. (Discretionary programs include everything except Social Security and Medicare, that is, education, health, housing assistance, international affairs, natural resources and environment, justice, veterans' benefits, science and space, transportation, training/employment and social services, economic development, and several more items.)

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Ismael Hossein-zadeh is a professor of economics at Drake University, Des Moines, Iowa. He is the author of the newly published book, more...)
 

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THE WAR HORSES ARE OUT IN FULL GEAR by Wolfie on Friday, Jun 13, 2008 at 11:19:30 PM