By Medea Benjamin and Nicolas J. S. Davies
James de la Vega Occupy Wall Street 2011 Shankbone
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In country after country around the world, people are rising up to challenge entrenched, failing neoliberal political and economic systems, with mixed but sometimes promising results.
Progressive leaders in the U.S. Congress are refusing to back down on the Democrats' promises to American voters to reduce poverty, expand rights to healthcare, education and clean energy, and repair a shredded social safety net. After decades of tax cuts for the rich, they are also committed to raising taxes on wealthy Americans and corporations to pay for this popular agenda.
Germany has elected a ruling coalition of Social Democrats, Greens and Free Democrats that excludes the conservative Christian Democrats for the first time since 2000. The new government promises a $14 minimum wage, solar panels on all suitable roof space, 2% of land for wind farms and the closure of Germany's last coal-fired power plants by 2030.
Iraqis voted in an election that was called in response to a popular protest movement launched in October 2019 to challenge the endemic corruption of the post-2003 political class and its subservience to U.S. and Iranian interests. The protest movement was split between taking part in the election and boycotting it, but its candidates still won about 35 seats and will have a voice in parliament. The party of long-time Iraqi nationalist leader Muqtada al-Sadr won 73 seats, the largest of any single party, while Iranian-backed parties whose armed militias killed hundreds of protesters in 2019 lost popular support and many of their seats.
Chile's billionaire president, Sebastian Pià ±era, is being impeached after the Pandora Papers revealed details of bribery and tax evasion in his sale of a mining company, and he could face up to 5 years in prison. Mass street protests in 2019 forced Pià ±era to agree to a new constitution to replace the one written under the Pinochet military dictatorship, and a convention that includes representatives of indigenous and other marginalized communities has been elected to draft the constitution. Progressive parties and candidates are expected to do well in the general election in November.
Maybe the greatest success of people power has come in Bolivia. In 2020, only a year after a U.S.-backed right-wing military coup, a mass mobilization of mostly indigenous working people forced a new election, and the socialist MAS Party of Evo Morales was returned to power. Since then it has already introduced a new wealth tax and welfare payments to four million people to help eliminate hunger in Bolivia.
The Ideological Context
Since the 1970s, Western political and corporate leaders have peddled a quasi-religious belief in the power of "free" markets and unbridled capitalism to solve all the world's problems. This new "neoliberal" orthodoxy is a thinly disguised reversion to the systematic injustice of 19th century laissez-faire capitalism, which led to gross inequality and poverty even in wealthy countries, famines that killed tens of millions of people in India and China, and horrific exploitation of the poor and vulnerable worldwide.
For most of the 20th century, Western countries gradually responded to the excesses and injustices of capitalism by using the power of government to redistribute wealth through progressive taxation and a growing public sector, and ensure broad access to public goods like education and healthcare. This led to a gradual expansion of broadly shared prosperity in the United States and Western Europe through a strong public sector that balanced the power of private corporations and their owners.
The steadily growing shared prosperity of the post-WWII years in the West was derailed by a combination of factors, including the 1973 OPEC oil embargo, Nixon's freeze on prices and wages, runaway inflation caused by dropping the gold standard, and then a second oil crisis after the 1979 Iranian Revolution.
Right-wing politicians led by Ronald Reagan in the United States and Margaret Thatcher in the U.K. blamed the power of organized labor and the public sector for the economic crisis. They launched a "neoliberal" counter-revolution to bust unions, shrink and privatize the public sector, cut taxes, deregulate industries and supposedly unleash "the magic of the market." Then they took credit for a return to economic growth that really owed more to the end of the oil crises.
The United States and United Kingdom used their economic, military and media power to spread their neoliberal gospel across the world. Chile's experiment in neoliberalism under Pinochet's military dictatorship became a model for U.S. efforts to roll back the "pink tide" in Latin America. When the Soviet Union and Eastern Europe opened to the West at the end of the Cold War, it was the extreme, neoliberal brand of capitalism that Western economists imposed as "shock therapy" to privatize state-owned enterprises and open countries to Western corporations.
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