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Their Enemies, Their Hopes

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Their Enemies, Their Hopes

1. Solow, “Interview,” Challenge, January–February 2000. Bairoch, Economics and World History (Chicago: University of Chicago Press, 1993). Chang, Kicking Away the Ladder. See also Shahid Alam, Poverty from the Wealth of Nations (New York: St. Martin’s Press, 2000). An enduring classic is Frederick Clairmonte, Economic Liberalism and Underdevelopment (New York: Asia Publishing House, 1960).2. The Jacksonian Democrats sought to do just that, to great economic and geopolitical advantage, specifically with cotton. That was a primary goal of the annexation of Texas, then half of Mexico. President Tyler anticipated that “that monopoly, now secured, places all other nations at our feet.… An embargo of a single year would produce in Europe a greater amount of suffering than a fifty years’ war. I doubt whether Great Britain could avoid convulsions.” That way the United States could overcome the British deterrent as well as dominate the global economy. See Thomas Hietala, Manifest Design: Anxious Aggrandizement in Late Jacksonian America (Ithaca, NY: Cornell University Press, 1985); for quotes and discussion, Year 501.3. Kindelberger cited by Ha-Joong Chang, Bad Samaritans.4. See Jack Beeching, The Chinese Opium Wars (New York: Harcourt Brace Jovanovich, 1975); Jack Gray, Rebellions and Revolutions (New York: Oxford University Press, 1990); J. Y. Wong, Deadly Dreams: Opium, Imperialism, and the Arrow War (1856–1860) in China (Cambridge: Cambridge University Press, 1998). In a broader context, Carl Trocki, Opium, Empire and the Global Political Economy (London: Routledge, 1999). For reservations on the impact on China, see Franz Dikötter, Lars Laamaan, and Zhou Xun, Narcotic Culture: a History of Drugs in China (Chicago: University of Chicago Press, 2004).5. For a graphic and shocking account of post–Civil War slavery, see Blackmon, Slavery by Another Name. On the current scale and character, see Randall Shelden, Our Punitive Society (Long Grove, IL: Waveland Press, 2010). On violation of international labor standards by prison labor, see Susan Kang, “Forcing Prison Labor,” New Political Science, June 2009.6. Afaf Lutfi Al-Sayyid Marsot, Egypt in the Reign of Muhammad Ali (Cambridge: Cambridge University Press, 1984). For more extensive discussion, on to post–WWII Egypt, see World Orders, chap. 2.7. Basil Davidson, The Black Man’s Burden: Africa and the Curse of the Nation-State (New York, London: Times Books, 1992).8. Adam Smith, Wealth of Nations, bk. IV, chap. II. David Ricardo, Principles of Political Economy, cited by Dean Baker, Gerald Epstein, and Robert Pollin, eds., Globalization and Progressive Economic Policy (Cambridge: Cambridge University Press, 1998), editors’ introduction.9. José Antonio Ocampo, “Rethinking the Development Agenda,” MS, 2001, based on paper at the American Economic Association annual meeting, January 2001.10. Mark Weisbrot, Dean Baker, and David Rosnik, “The Scorecard on Globalization 1980–2005; 25 Years of Diminished Progress,” Center for Economic and Policy Reseach, September 2005. Robert Pollin, Contours of Descent (London: Verso, 2003). Robert Hunter Wade, “Does Inequality Matter?” Challenge 48, (September–October 2005); Foreign Affairs, (September/October 2006).11. David Felix, in Baker et al., eds., Globalization and Progressive Economic Policy.12. Baker, Plunder and Blunder. Marc Miringoff and Marque-Luisa Miringoff, The Social Health of the Nation (New York: Oxford University Press, 1999). The projected Reagan-Bush debt interest burden is virtually identical to the projection for 2019, despite extensive spending to overcome the impact of the 2007–8 financial crash; Dean Baker, Beat the Press, Center for Economic and Policy Research, August 31, 2009. Also John Irons, Kathryn Edwards, and Anna Turner, “The 2009 Budget Deficit,” EPI Issue Brief #262, August 20, 2009, For references, see Hegemony or Survival, chap. 9.14. Ibid. Joseph Stiglitz, Foreign Affairs 84, no. 6 (2005).15. Tomas Valasek, Defense Monitor 30, no. 3 (March 2001). Gordon Mitchell, Fletcher Forum 25, no. 1 (Winter 2001), citing Charles Perrow.16. See references of note 1, this chapter. On the enormous role of military procurement in technology development, see Vernon Ruttan, Is War Necessary for Economic Growth? (New York: Oxford University Press, 2006). On corporate reliance on bailout and other forms of state intervention, see Winfried Ruigrok and Rob van Tulder, The Logic of International Restructuring (London, New York: Routledge, 1995).17. For review of Greenspan’s examples, and sources, see my Rogue States (Cambridge, MA: South End Press, 2000), chap. 13.18. James Cypher, “Military Spending, Technical Change, and Economic Growth,” Journal of Economic Issues, March 1987. David Noble, Forces of Production (New York: Knopf, 1984); Progress without People (Chicago: Charles Kerr, 1993).19. Baker, “The High Cost of Protectionism: The Case of Intellectual Property Claims,” MS, Economic Policy Institute, 1996; In These Times, August 22, 1999. Amy Kazmin, Andrew Jack, and Alan Beattie, “How Washington Uses Trade Deals to Protect Drugs,” Financial Times, August 21, 2006, See note 13, this chapter.21. Ha-Joon Chang and Ajit Singh, “Public Enterprises in Developing Countries and Economic Efficiency,” UNCTAD Review, no. 4 (1993): 45–81.22. David Kirkpatrick, New York Times, August 6, 2009. Health care reform, see below, p. 226.23. Javier Santiso, Latin America’s Political Economy of the Possible (Cambridge, MA: MIT Press, 2006). Richard Lapper, Financial Times, July 30, 2006.24. See Baker, Plunder and Blunder, for succinct review. Concentration, Kansas City Federal Reserve president Thomas Hoenig, August 6, 2009, cited by Zach Carter, “A Master of Disaster,” Nation, January 4, 2010, Pete Engardio, “Can the Future Be Built in America?” Business Week, September 21, 2009.26. Citigroup, “Equity Strategy, Plutonomy: Buying Luxury, Explaining Global Imbalances,” October 16, 2005; “Equity Strategy, Revisiting Plutonomy: The Rich Getting Richer,” March 5, 2006. “Why Service Stinks,” Business Week, October 23, 2000.27. Wall Street Journal, June 15, 2009.28. Thomas Catan and David Gauthier-Villars, Wall Street Journal, May 29, 2009.29. For discussion and illustrations of the state-corporate policies that have systematically undermined the country’s industrial base and technological edge, favoring global investors over U.S. manufacturers, see the special report, “Why Nothing Is Made in the USA Anymore,” American Prospect, January 2010.30. Paul Doremus, William Keller, and Louis Paulyet, The Myth of the Global Corporation (Princeton, NJ: Princeton University Press, 1998). Staughton Lynd, Living Inside Our Hope (Ithaca, NY: Cornell University Press, 1997).31. For discussion and sources, see World Orders, chap. 2.32. James Mahon, Mobile Capital and Latin American Development (University Park, PA: Pennsylvania State University Press, 1996). Timothy Canova, American University International Law Review 14, no. 6 (1999). Santiso, Latin America’s Political Economy of the Possible.33. M. J. Crozier, et al., The Crisis of Democracy.34. Treasury, Robert Wade, Challenge (January–February 2004). On the disparagement of the socioeconomic articles of the Universal Declaration of Human Rights by high officials, see Failed States, chap. 6. Keynes cited by Timothy Canova, Brooklyn Law Review 60, no. 4 (1995).35. Barry Eichengreen, Globalizing Capital: A History of the International Monetary System (Princeton, NJ: Princeton University Press, 1996).36. Atilio Boron, in Leo Panitch and Colin Leys, eds., Socialist Register 2006: Telling the Truth (London: Merlin Press, 2006).37. Mark Turner, “Vox Populi,” Roubini Global Economics, Latin America EconoMonitor, December 6, 2007, Paul Waldman, Boston Globe, September 6, 2006. On the gap between policy and opinion, and the 2004 U.S. election, see references of note 1, chap. 5, below. Four: Latin American and Caribbean Unity

1. Stephen Zunes, Foreign Policy in Focus, September 18, 2008.2. Ruigrok and van Tulder, The Logic of International Restructuring.3. Karin Lissakers, Banks, Borrowers, and the Establishment.4. John Eatwell and Lance Taylor, Global Finance at Risk (New York: New Press, 2000). David Felix, “Is the Drive Toward Free-Market Globalization Stalling?” Latin American Research Review, January 1, 1998. See also Felix, in Baker et al., Globalization and Progressive Economic Policy.5. Barry Eichengreen, “Fortifying the Financial Architecture,” Current History, Global Trends 2010, January 2010. Peter Boone and Simon Johnson, Financial Times, January 19, 2010.6. Now largely in the background after dramatic empirical refutation in 2007–08, though serious deficiencies were long known. See, for example, David Felix, “The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy,” Political Economy Research Institute,, 2003, bringing up the important work of Hyman Minsky on market inefficiencies, now gaining deserved if belated attention.7. Michael Kranish, Boston Globe, December 21, 2009. Virtually the only report. See below, pp. 226f.8. Eric Dash, New York Times, June 10, 2009.9. Theo Francis and Peter Coy, “No Big Fix for Global Finance,” Business Week, September 9, 2009. David Cho, “Banks ‘Too Big to Fail’ Have Grown Even Bigger; Behemoths Born of the Bailout Reduce Consumer Choice, Tempt Corporate Moral Hazard,” Washington Post, August 28, 2009. Martin Wolf, Financial Times, September 15, 2009.10. “Fewer American See Solid Evidence of Global Warming,” Pew survey reports, October 22, 2009, Clifford Krauss and Jad Mouawad, New York Times, August 19, 2009; John Carey, Business Week, September 8, 2009.12. Alison Vekshin and Dawn Kopecki, Bloomberg Business Week, January 11, 2010.13. Gretchen Morgenson, New York Times, September 14, 2009.14. Michael J. Moore and Jamie McGee, “Wall Street Firms Will Revert to Pre-Crisis Model, Cohen Says,” Bloomberg, May 5, 2009; Peter Ford, “China’s Green Leap Forward,” Christian Science Monitor, August 10, 2009, Martin Wolf, “Wheel of Fortune Turns as China Outdoes West,” Financial Times, September 14, 2009.16. Eva Vergara, Associated Press, September 16, 2008, Dan Keane, Associated Press, December 9, 2006.18. Richard M. Nixon, Memorandum,, National Security Archive. Democracy promotion, see p. 45.19. Kristin Bushby, Washington Report on the Hemisphere, Council on Hemispheric Affairs, August 19, 2009. See note 49, chap. 2.20. Mark Weisbrot, “Hondurans Resist Coup, Will Need Help from Other Countries,” Guardian, July 8, 2009, Five: “Good News,” Iraq and Beyond

1. Benjamin Page with Marshall Bouton, The Foreign Policy Disconnect (Chicago: University of Chicago Press, 2006). For many crucial examples, see Failed States. See also Jacobs and Page, American Political Science Review, February 2005.2. Cited by David Foglesong, America’s Secret War Against Bolshevism (Chapel Hill, NC: University of North Carolina Press, 1995).3. On these matters see my Rethinking Camelot (Cambridge, MA: South End Press, 1993). Much more material has appeared since, but while adding some interesting nuances, it leaves the basic picture intact.4. In retrospect, Kennedy-Johnson national security adviser McGeorge Bundy reflected that the U.S. war could have been wound down by late 1965, after the Suharto coup protected Indonesia from contagion, killing perhaps a million people, mostly landless peasants, destroying the major mass-based political party and so averting the threat of democracy, and opening up the country’s rich resources to Western investors. By then South Vietnam had been largely destroyed, as Fall had described. Cited by David Fromkin and James Chace, Foreign Affairs, Spring 1985.5. See Rethinking Camelot for details.6. Ibid.7. Ibid.8. Arthur Schlesinger, Los Angeles Times, March 23, 2003. I found no mention.9. Opinion Research Business, September 2007, Gardner, Last Chance, 61ff. For illuminating inquiry into the roots of the sectarian violence, and much else, see Steele, Defeat.11. Nir Rosen, Current History, December 2007.12. Timothy Williams, New York Times, August 15, 2009. On the background of Iraq’s oil law, and the threats to the economy as it has evolved under the occupation, see Kamil Mahdi, “Iraq’s Oil Law: Parsing the Fine Print,” World Policy Journal, Summer 2007. As matters have evolved, U.S. energy corporations have not gained anything like the privileges that Washington had anticipated as late as early 2008. See below, p. 140.13. Gary Milhollin testimony, United States Export Policy Toward Iraq Prior to Iraq’s Invasion of Kuwait, Hearing Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, 102nd, October 27, 1992. Bush’s fawning mission, Miron Rezun, Saddam Hussein’s Gulf Wars (Westport, CT: Praeger Publishers, 1992).14. Denis Halliday, “Responsibility to Protect,” Development Dialogue 53 (November 2009).15. Hans Von Sponeck, A Different Kind of War: The UN Sanctions Regime in Iraq (New York, Oxford: Berghahn Books, 2006).16. For one particularly striking illustration, see note 15, chap. 11, below.17. Steele, Defeat. On the wanton “cultural destruction of Iraq,” including its intellectual class and priceless monuments of the origins of modern civilization, a “shameful, immoral and illegal chapter in modern history” that flows from a commitment to “‘ending states’ as a policy objective,” see Raymond Baker et al., Cultural Cleansing in Iraq.18. Karen DeYoung, Washington Post, December 19, 2007.19. Quoted in Stephen Fidler, Financial Times, August 20, 2007.20. PRNewswire–USNewswire, Washington, January 28, 2008.21. Bergen and Cruickshank, “The Iraq Effect.”22. James Glanz, New York Times, January 16, 2008.23. Gardner, Last Chance, for review of what followed.24. C. J. Chivers, New York Times, September 11, 2007.25. Michael Gordon, New York Times, January 20, 2008. Mark Curtis, Unpeople: Britain’s Secret Human Rights Abuses (London: Vintage Books, 2004).26. Seib, Wall Street Journal, February 12, 2008.27. Associated Press, December 21, 2007, Boston Globe, four sentences. The final two are: “US officials downplayed the issue. ‘We prefer to look to the future,’ said a U.S. Embassy spokesman.” Panamian courts and United States, Mark Lacey, New York Times, November 28, 2007. “The next few days Iraq will withdraw [putting] his puppet in. Everyone in the Arab world will be happy,” Joint Chiefs of Staff Chairman Colin Powell anticipated at a high-level meeting immediately after Saddam’s invasion of Kuwait (Military correspondents Michael Gordon and Bernard Trainor, New York Times, October 23, 1994, excerpt from their forthcoming The General’s War [Boston: Little, Brown & Co., 1995]). Basically what happened in Panama, except that Latin Americans were infuriated, not happy. For details on the invasions, and reactions here, see my Deterring Democracy (New York: Hill & Wang, 1992).28. Elaine Sciolino, New York Times, November 30, 2007.29. “Public Opinion in Iran and America on Key International Issues,” poll, World Public, January 24, 2007, Ibid. Also “A Majority of Americans Reject Military Threats in Favor of Diplomacy with Iran,” survey, World Public, December 7, 2006, On NATO expansion, the nature of the “pledge,” and the context, see chap. 12, below. On Obama’s reconfiguration of the missile defense system, see p. 199. See also pp. 172–73. On strong and long-standing popular preference for normalization of relations with Cuba, see note 27, chap. 2.32. Arms Control Today, January/February 2008.33. Helene Cooper, New York Times, January 19, 2008. Kevin Hall, McClatchy Newspapers, February 16, 2008.34. Bruce Cumings, Le Monde diplomatique, October 2007. See also Leon Sigal, Current History, November 2006. See my Interventions (San Francisco: City Lights, 2007), for discussion.35. David Sanger and William Broad, New York Times, March 1, 2007.36. Seymour Hersh, New Yorker, February 11, 2008.37. The conclusion, based on on-site inspection by Harvard nuclear physicist Richard Wilson after the bombing and by Iraqi defectors, has been confirmed by Wayne White, Iraq analyst for State Department intelligence at the time, with access to a rich body of evidence: Middle East Policy, Fall 2008.38. Sigal, Current History.39. “Declaration of Principles for a Long-Term Relationship of Cooperation and Friendship Between the Republic of Iraq and the United States of America, White House news release, November 26, 2007, Charlie Savage, Boston Globe, January 30, 2008. Thom Shanker and Steven Lee Myers, New York Times, January 25, 2008.41. Pakistani Public Opinion on Democracy, Islamist Militancy, and Relations with the U.S., World Public and U.S. Institute for Peace, January 7, 2008.42. Newsweek, October 18, 2001.43. Ian James, Associated Press, December 31, 2007. Other wire services. Six: Free Elections, Good News and Bad

1. Thomas Friedman, op-ed, New York Times, June 10, 2009. Elliott Abrams, op-ed, New York Times, June 12, 2009. On the vote, and the large-scale efforts to swing the election to the March 14 coalition, see Assaf Kfoury, “The Fourth Estate in the Service of Power: Media Coverage of the Middle East,” Znet, December 6, 2009, Ibid.3. Cam Simpson, Wall Street Journal, February 8, 2009.4. See Perilous Power, Epilogue, note 29, for review.5. Thomas Friedman, New York Times, January 14, 2009. On Israeli border violations, see Israeli strategic analyst Zeev Maoz, “The War of Double Standards,” author’s translation from Haaretz, July 24, 2006.6. David Shipler, New York Times, November 25, 1983; also January 26, 1984. Human Rights Watch, Israel: Without Status or Protection: Lebanese Detainees in Israel 9, no. 11 (October 1997). See my “Exterminate All the Brutes,” January 2009 (revised June 6, 2009), at, for discussion and sources, here and below. For much more extensive discussion of the Gaza attack, see Norman Finkelstein, “This Time We Went Too Far”: Truth and Consequences of the Gaza Invasion (New York: O/R Books, 2010).7. Al Mezan press release, “IOF Kidnaps Five Palestinian Children in North Gaza,” September 7, 2009. Reference 74/2009, The media search covered a week.8. David Rose, “The Gaza Bombshell,” Vanity Fair, April 2008. Norman Olsen and Matthew Olsen, op-ed, Christian Science Monitor, January 12, 2009.9. For a review of the grisly record, and the current state of the programs to block any hope of decent survival for the Palestinians, see Sara Roy, Introduction, The Gaza Strip: The Political Economy of De-development (Beirut, Washington, DC: Institute for Palestine Studies, 2010), third edition.10. “Irish Nobel Peace Laureate Mairead Maguire Shot with Rubber Bullet by Israeli Military at Nonviolent Protest,” Democracy, April 23, 2007,, April 23, 2007.11. Gershom Gorenberg, The Accidental Empire (New York: Times Books, 2006). On the carefully planned and systematic execution of the project, and the leading role of Peres and others honored in the West as “moderates” and “peacemakers,” see Idith Zertal and Akiva Eldar, Lords of the Land (New York: Nation Books, 2007); also on the shameful behavior of the courts, along with Moshe Negbi, Kisdom Hayinu (Jerusalem: Keter Publishing House, 2004, Hebrew), the most prominent legal commentator in the Israeli media. For quotes from his harrowing account of what passes for law in Israel, and from other leading Israeli analysts who bring forth similar material, see Failed States. Ibid. on the ICJ and Buergenthal.12. See references of note 16, this chapter.13. Jeremy Bowen, “Bowen Diary: The Days Before War,” BBC News, January 10, 2009, Regev interviewed by David Fuller, Channel 4, UK, Editorial, The Other Israel, Holon Israel, December–January 2008–9.15. Rory McCarthy, Guardian, November 5, 2008.16. Sara Roy, London Review of Books, January 1, 2009; Christian Science Monitor, January 2, 2009. Physicians for Human Rights–Israel, Update December 12, 2008, Gareth Porter, “Israel Rejected Hamas Ceasefire Offer in December,” Inter Press Service, January 9, 2009, See also Peter Beaumont, Observer, March 1, 2009.18. Akiva Eldar, “White Flag, Black Flag,” Haaretz, January 28, 2009, David Remnick, New Yorker, January 12, 2009.20. See my Fateful Triangle (Cambridge, MA: South End Press, 1983; updated 2009), 201ff. Pirates and Emperors, 56f.21. Stephen Lee Myers, New York Times, January 4, 2009.22. In Hebrew, there are two words for “propaganda”: “ta’amulah,” which is the propaganda of others, and “hasbara” (“explanation”), for Israeli propaganda. The tacit assumption is that since we are always right, it is only necessary to explain to the ignorant outsiders. That is standard state practice, for example, Britain’s “Ministry of Information” a century ago, which was dedicated to “informing” American intellectuals of the reasons they should support Britain during World War I—succeeding brilliantly—and Wilson’s “Committee on Public Information,” targeting the whole population, also with outstanding success. For some discussion, see Deterring Democracy.23. Stephen Erlanger, New York Times, January 31, 2008.24. Moshe Negbi, Kisdom Hayinu.25. Stephen Erlanger, New York Times, January 25, 2008.26. Israel National News, April 27, 2007.27. Livni quoted by Scott Wilson, Washington Post, December 20, 2007.28. Michael Walzer, in Irving Howe and Carl Gershman, eds., Israel, Arabs, and the Middle East (New York: Quadrangle Press, 1972). In the context of discussion of Israel and its Palestinian population, Walzer writes that the process of nation-building can be difficult for those “marginal to the nation,” and that sometimes the “roughness…can only be smoothed by helping people to leave who have to leave.” Ethan Bronner, New York Times, February 12, 2009.29. Aluf Benn, Washington Post, August 14, 2005.30. Quoted in Yoav Stern, Haaretz, May 1, 2006.31. Rakefet, Scott Wilson, Washington Post, a very rare report. On the laws, see my Towards a New Cold War (New York: Pantheon, 1982), and for a much more extensive study, Walter Lehn and Uri Davis, The Jewish National Fund (New York: Kegan Paul International, 1988).32. Jonathan Liss, Haaretz, January 3, 2010. Golan, “No entry for Arabs,” Haaretz, January 13, 2010.33. Jonathan Lis, Haaretz, January 2, 2010.34. See below, pp. 179f.35. Yossi Beilin, Mehiro shel Ihud (Tel Aviv: Revivim, 1985), 42, 147; the primary source for Israeli cabinet records under the Labor coalition, 1967–77. Dayan’s analogy, Gorenberg, Accidental Empire, 81–2. For more on these matters, see Failed States, chap. 5; my Middle East Illusions (Lanham, MD: Rowman and Littlefield, 2003), chap. 6. Herald cited by James Bradley, The Imperial Cruise (New York: Little, Brown & Co., 2009), 63.36. Sometimes called a “one-state solution,” though there clearly are two groups, each entitled to respect for their own cultural mix, language, and identity.37. See Failed States, 193ff.38. For an illustration, see economist Sever Plocker (“A Thorn in the World’s Side,” Yediot, November 3, 1999;,7340,L-3798761,00.html), describing with despair how he must cancel a lecture in Oxford because the anti-Israel atmosphere there is so extreme that he would be treated as a leper. Far from true, but illustrative of a spreading sense of injured innocence.39. Ryan Irwin, “A Wind of Change?” Diplomatic History, November 2009.40. United Nations Inter-Agency Task Force, Africa Recovery Programme/Economic Commission for Africa, South African Destabilization: The Economic Cost of Frontline Resistance to Apartheid (New York: United Nations, 1989), 13, cited by Merle Bowen, Fletcher Forum, Winter 1991. ANC, Joseba Zulaika, and William Douglass, Terror and Taboo (London, New York: Routledge, 1996), 12. On expansion of U.S. trade with South Africa after Congress imposed sanctions in 1985, see Gay Mc-Dougall, Richard Knight, in Robert Edgar, ed., Sanctioning Apartheid (Trenton, NJ: Africa World Press, 1990). Richard Garfield, Julia Devin, and Joy Fausey, “The Health Impact of Economic Sanctions,” Bulletin of the New York Academy of Medicine 72, no. 2 (Winter 1995). For review of BDS programs targeting the Israeli occupation, see John Pilger, Znet, January 16, 2010.

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