Saturday, August 13, 2016

Location,Location,Location: The Case for Globalization

[This was written in the year 2000. It was to be Chapter 5 in the never-to-be published book Democracy for Dummies. The book is described in a post on May 10, 2016.]

Carmelita raised her tiny voice to a shout. "Madre. Padre. Paco. De prisa, hurry. Hector is coming on."

The small room is filled with the giant television screen. Hardly anything else appears to be in the room but the screen. Four figures, two adults and two children, are squatting the floor in  front of the screen. the screen brightens and is filled with the image of  a soaring eagle holding the globe of the world in its talons.

One of the figures on the floor exclaims, "Caramba! Que gigante pajaro." "Es una aguila, padre. It's an eagle" exclaims Paco. "Una aguila Americano."

A booming disembodied voice pours out of the screen over the image of the soaring eagle, "N-N-N, the News from Nowhere Network is proud to present the host of our show, the incomparable, Regal Menace." The applause is prolonged and deafening.

"Welcome ladies and gentlemen to the world's most watched television show, Who Wants to Have a Job? Tonight's show is brought to you by the most famous man in Arkansas, known to his friends as the Chicken Hawk, because he has stuffed more birds than anyone else in the world. No, it's not Bill Clinton, but none other than Harry Purdoo, and his world renown Cyberbird Chicken Farm, a totally automated, robotized production system for the world's most tender, juiciest birds. Harry's motto is: When someone flips you the bird, say thank you, as long as it's a Purdoo bird. Now let's meet some of Harry's happy birds.

Accompanied by bump-and-grind music. a chorus line of Disney chickens with human legs in mesh stockings, and voluptuous very human breasts are dancing around a barnyard that looks like its from the infamous chicken ranch in Las Vegas. After plugging the virtues of the Purdoo birds, the screen scrolls the same phrase in several dozen languages.

                               "Purdoo chicken in every pot"
                               "Un poulet Purdoo dans chaque poile."
                               "Una pollito dentro de todos barrigon"
                               "Tutti bisogna pollo biondo con grande fenditura"

The list of phrases apparently causes some consternation and amusement to viewers around the world, as the production room call-in board is lit up like a Christmas tree. Apparently the commercial potential of the Internet exceeds the capacity of the producers to translate meanings that are free of local meanings. the first phrase is clear enough--everyone should buy a Purdoo chicken. the second phrase in French says that there is a lost chicken in every pot. In Spanish we have a chick in every potbelly. And the incorrigible Italians believe that everyone should have a blond chicken with great cleavage.

The camera is back on Regal. "Okay folks, you know how our game is played. Each week we bring to our stage two contestants from different countries who are going to try and convince you, the audience, and our panel of judges, that they deserve to get a new company that is up for grabs. There are three rounds of questions for our contestants. After each round, the judges will rate our contestant's performance, and you, the audience can register your choice through the applause sensometer. Now let's meet our contestants."

A booming disembodied voice fills the screen as a spotlight follows a tiny figure from offstage to a podium near center stage and close to the audience. "Meet Hector Rodriguez Tomar, from Ciudad Pollo, Mexico"

Regal meets the contestant at his podium. "Welcome Hector, bienvenido. May I call you Rod? Hector smiles at Regal's pronunciation, and although initially puzzled by the question, he recovers quickly. "Yes, Rodriguez is my mother's family name. It is our custom to use both parents' family names.

"A great custom Rod. And now for our second contestant. Ladies and gentlemen, meet Charlie W. Trash from Flint, Michigan in the good old U.S of A." Regal moves in again. "Welcome Charlie. And what do you do in Flint, Michigan?"

"Well right now I ain't doing much of anything. That's why I'm on the show."

"Right, Charlie. But isn't Flint an automobile town?" says Regal somewhat tentatively, not sure what this guy will say next.

"Yeah, it used to be. I had a great job at the Olds plant. We made some great cars back then. Why I had a '72 Cutlass  with over 150,000 miles on it and it could still hum along at 90."

Regal projects gravitas with the next question. "Well what happened to change all that Charlie?"

"It all started with those candy-ass Japanese cars. Small, no power, no chrome, and everyone worried about the A-rabs raising gasoline prices. I still think we could have beat the Japs head-to-head, because we had a better product. But then they started outsourcing our work wherever they could find cheap labor. That was the beginning of the end."

"You sound a little angry, Charlie," says Regal, hoping to put him on the defensive. "Don't you think the workers in Flint bear any responsibility for the shutdown of the plants?"

"Oh, sure. They probably cut some corners, and took off too many Mondays to go fishing or hunting. But we did our job, and you can't compete when the playing field ain't level. When NAFTA came in, we didn't have a prayer. Jobs went south big time."

Putting on is best Mike Wallace voice, Regal clarifies. "NAFTA, that's the North American Free Trade Agreement, correct."

"Au contraire," Charlie shoots back to a slightly stunned Regal. "It's called FREE trade, and free trade ain't the same as fair trade. People need to understand the kind of capital flows that exist between countries. Some capital is for investment, and some is for speculation. The politicians don't talk straight on this issue, all the time trying to blow smoke up our ass."

Regal is flustered and tries to move on. "You may have a point there Charlie. Let's see if our other contestant agrees with you. Well Rod, what do you do in Ciudad Pollo?"

"Right now, not too much. We haven't seen any of those jobs that Charlie thinks came from NAFTA. I used to work at Pollos Dios Mio!-- that means heavenly chicken--one of Mexico's largest chicken farms and processing plants. It was a great job."

Again with gravitas, Regal asks, "What happened Rod. How did you go from chicken heaven to chicken down below? Or maybe I should say chicken diablo, Regal breaks into chuckles, drawing audience laughter.

"Si, pollo inferno. It has been hell for the people of our town. The plant was moved to Thailand. The company said they could use special growth hormones on chickens in Thailand, cutting by half the time from birth to chicken parts. We couldn't do that because of NAFTS's environmental regulations."

"That's quite a story, Rod,"  says Regal with a broad smile. "You and Charlie have really interesting stories to tell. But now it's time to play Who wants to have a job? he shouts, waving his arms. The audience rises to their feet waving arms with a mixture of thumbs up and thumbs down gestures. "One of you, Rod or Charlie, is going to win a chicken farm and processing plant for your home town. There will be hundreds of new jobs and all the good things that come with that."

A giant screen behind Regal shows pictures of a prosperous community with smiling people walking in parks, eating in restaurants, and shopping at the mall. "That's what life can be like again in Ciudad Pollo or Flint, Michigan," shouts Regal. "Now let the games begin. Charlie won the coin toss, so he gets the choice of going first or second."

"I guess I'll go first, says Charlie, rocking side to side as if he is dancing, and trying to look enthusiastic.

"Good choice, Charlie," blasts Regal. "Now to the first question for each contestant. And remember, Charlie and Rod, you can ask for help from someone in your support group. The question: Some experts say that all towns are like people--they either have to grow or they die. How do you respond to that statement?"

Charlie looks genuinely puzzled. "Grow or die, that's the question? Seems like it's better to grow than to die, but why do you have to die if you can't grow? Can't you grow too much and die? My Aunt Bertha on my mother's side weighed about 300 pounds and she died before she was forty. I'm not sure I understand the question. Flint grew in the 60s and 70s and it still died. Well it's not really dead, but folks talk about it like it's dead. Why can't you just have a decent job without bringing all this other stuff in?"

Regal jumps in to pump some life into the contestant. "Why don't you ask someone from your support group if they want to help. Who is the guy waving his arms and jumping up and down?"

"That's Wayne Babbit from Flint. He's with the Chamber of one of those business groups."

Regal wave his arms toward the end of the stage. "Come on up here Wayne." He arrives at the podium with a broad grin and bouncing with energy. "Tell us who you are and what you do in Flint."

"I'm Wayne Babbitt and I'm president of the Flint chamber of Commerce and a member of the Economic Development Commission of Southeastern Michigan."

"It's great to have you on the show, Wayne," says Regal. "What do you think about the question of whether a town has to grow or die?"

"That's a no-brainer Regal. You don't have to be a rocket scientists to know that without growth, a town stagnates. It loses pride in itself. It turns inward. Mom and Pop stores are quaint, but that's not where it's at. Wal-Mart give you more choice and better price. To survive in the global economy a town has to sell itself to attract new business. and to sell yourself with a positive can-do attitude and attractive options. It's just like in the animal kingdom. Those who survive have learned to dress up their act with fancy feathers, mating dances, and overpowering smells. The guys and gals that survive have put together the best show to get somebody's attention."

Regal shows genuine admiration for Babbit's pitch. "Well you have sold me, Wayne. But what is Flint going to do to attract the new Purdoo chicken plant?"

"That's easy," shoots back Wayne. "We have tax abatements that will help Perdue  avoid property taxes for at least ten years and maybe longer. We will us e state and local development funds t prepare the work site, bring in utilities, widen roads, and anything else to get the plant up and running. And if we can justify a need for training for workers, we can get federal funds to pay their salaries for up to six months."

"That sounds like a great deal for Purdoo." beams Regal. "The good people of Flint are willing to go balls-out, I mean all-out, for Purdoo." The audience is screaming with laughter at Regal's locker room expression. "It's an innocent expression folks," chuckles Regal, enjoying the good spirits of the audience. "I think we even used it to motivate people at church fund-raisers."

"I like that expression, Regal. IT captures what we're all about," says Wayne amid great laughter. "I'm going to use that expression at my next Chamber meeting, a great motivational phrase."

Regal takes control again. "Speaking of motivation, what is the work force like in Flint? What can the Perdue people expect from their workers."

Wayne seemed to be waiting for this soft ball. "We've got the finest workers that money can buy. There are thousands of laid-off auto workers just begging for work. Now I know that they are ex-union, and that will scare some employers. But they have learned their lesson. Unions can't protect them when companies can move their plants overseas."

"Suppose that Purdoo won't hire ex-union workers," says Regal, hoping to generate some heated discussion. "I've heard that happens."

Wayne is beaming once again. "You want foreign workers, we will give you foreign workers. We can give you all the Mexican workers you need, legal or illegal. You want temporary workers, we have a large Manpower office in Flint, funded by the Feds, that provides all the temps you need. Low wages, no benefits, no problem. They work for Manpower and not for the company. The company gets all the workers they need, without the headache of having employees."

Regal feels the need to introduce some fairness into the discussion. "Now wait a minute Wayne, how can we talk about hiring illegals. Isn't that illegal"?

"You have to get out more, Regal,"  says Wayne with a smirk. "The I.N.S. has almost stopped raiding businesses that hire illegals. There is a shortage of workers and the Immigration and Naturalization folks have started looking the other way at border crossings. The illegals help to keep wages down and inflation under control. I'll bet Alan Greenspan even hires illegals to do his cooking and gardening."

The audience is hooting and cheering. Regaining his composure, Regal turns to the audience. "Okay, enough fun and games. Let's turn to our second contestant, Rod Tomar, and see how he reacts to the idea that towns must grow or die. The ball is in you court, Rod. What say you?"

Hector Rodriguez Tomar had intended to speak on this question, but after seeing the performance of Wayne Babbit from Flint, he decides to call upon the Mayor of his city. "I am going to ask Alcalde, the Mayor of Ciudad Pollo to answer that question. Alcalde Angel Jesus Alquiladizo.

Regal didn't have a clue that this was coming, so he is not prepared to deal with the very complicated pronunciation task in front of him. "Mr. Mayor, please come to the podium." There is great applause, whistling, and shouts of "jefe,-jefe-jefe" from the audience. The audience seems to be stacked with residents from Ciudad Pollo. "We are honored, sir, to have you on our program. What do you have to say about the grow or die question?"

"As Mayor of the great city of Ciudad Pollo, I can assure the Purdoo chickens that their last days in our city will be among the happiest of their short lives. Everyone in the world should know that in our city the chickens come first. chickens are in our hearts, our history, our culture. This also means  that the companies that work with chickens also come first, and they are also in our hearts, our history, ur culture."

"Great Mr. Mayor," says Regal, wondering how long he can continue to avoid calling this guy by one of his names. "But how will you counter the offer of tax abatements made by the people of Flint, Michigan? There is a sputter of applause, and some shouts of "Go Wolverines" from the back rows.

"No problema, Mr. Regal. Primero, first, you don't have to worry about getting approval for tax abatements. In flint, you might get hem, but then again you might not, especially if some citizen's groups starts makin noise about abatements. The Purdoo plant will be located in an EPZ. Do you know what that is?"

"What is an EPZ, Mr. Mayor," replies Regal dutifully, but also with some interest in furthering his knowledge.

"An EPZ is an Export Processing Zone. It is an area of land that has been designated by the government of Mexico for foreign companies to locate their production plants. Everything that is produced in the zone is free of any taxes, as long as it is for export out of Mexico."

Charlie Trash blurts out, "You mean to tell me that none of the chickens processed in your city can be sold to the people who live there. What the hell is the point?"

"Please Mr. Trash, you had your turn," says Regal in his most official manner. "You will get a chance to speak again." The crowd is hooting and shouting a mixture of "Regal-Regal" and "gringo-gringo." Regal tries to quiet the crowd with his upraised arms. "Please continue Mr. Mayor."

"Gracias, thank you. So, first, no taxes, ever! And next, no environmental regulations. That's another advantage of being in an EPZ. In flint, you are going to have to get rid of all the waste that accompanies a chicken operation. that will mean that you will either have to build a waste processing plant, or contract out to someone else to haul your waste."

Regal suddenly feels that Flint is not getting a fair hearing, and maybe the crowd will start pulling for the underdog. "But tell me , Mr. Mayor, how will the waste be handled in Ciudad Pollo."

"Bueno, I will tell you. First, we dig a huge ditch from the plant toward the river about two mile away. It's a nice downhill slope that will carry the waste washed along by water from the city's wells."

"Won't that be an awful lot of smelly waste laying around until it reaches the river?" says Regal, turning up his nose and holding it. A segment of the crowd hoots.

"Not so," replies the Mayor. "The beauty of our operation is that we use nature to are for nature. Our region has more turkey vultures than any other place in Mexico. And once that waste stats down the ditch toward the river there will be more vultures in that ditch than you can imagine. I wouldn't be surprised to learn that no waste ever reaches the river. We are going to have the best fed vultures of anyplace in the world."

The Mexicans in the audience are on their feet cheering and screaming, "buitres, buitres, vosotros todos buitres."

Regal returns to his cameraman, who happens to be an illegal from Mexico. "What are they yelling?"

"Vultures, vultures, you are all vultures."

The big TV screen goes dark, ending the Regal Menace show.

"Hey, turn it back on. I want to see who wins."

"It's a no-brainer. Hector has it hands down. Just like the swallows went back to Capistrano, the chickens are going back to Mexico."

"Flint doesn't have a prayer of getting a new factory. Those ex-auto workers may as well join the militia  in Northern Michigan and hunker down for the Aryan revolution.

Bif sits at the table in front of the big screen TV. "I think you have seen enough for our purposes. That was Hollywood's contribution to our project. They are proposing to do a series of Who Wants to Have a Job? shows for worldwide distribution. What do you think?"

Emma and Denny both try to grab center stage, but Emma wins the toss. "Absolutely brilliant. If what I saw is a sample of the future shows they will produce, I say full steam ahead!"  Denny projects more controlled, cerebral enthusiasm. "It was very well done. The show has all the imperatives of the global economy, and it will make the audience aware of the need to get with the program.

Bif looks at the other two members of the Bravo Team. "Bob, I mean Robert? Bill? What's your take on this pilot show? Should we make it a part of Bravo's portfolio?"

They speak almost simultaneously, and say the same thing. "I think It's a go!"

Bif tries to inject some enthusiasm. "Great. now let's review your assignments. You are to come up with a plan, one that can be used cross-nationally, for getting the average person to believe in using the idea of the market as the best way to develop and deliver products and services. The key to spreading market values is, first, to link American values to universal values, and second, t link universal values to economic, political, and military action."

"That's a mouthful, chief. How about some detail," says Robert Pierce with a look that says: we have been here before, haven't we?

"Sure. Let's take the issue of poverty. The United States is committed to the idea of eliminating poverty around the world. We provide millions in humanitarian aid through the U.N. and other organizations. An alternative to providing aid, which has nothing to do with the free market, is to get poor countries to invite  U.S. corporations to set up shop and employ the poor in clothing factories."

"Aren't we already doing this kind of thing?" says Matthew, with his usual quizzical look.

"Sure we are," pops back Bif, "but not as wide and deep as we should be. There are still too many places trying to mix market solutions with state-centered approaches, or with traditional, and even semi-feudal approaches. There is still a lot a talk about a third way, a form of market socialism. this kind of thinking is confusing, and it's why some countries can't tell their ass from their elbow. Let me give you another example in the military area. The U.S. is committed to protecting and advancing basic human rights around the world. We shout about human rights when we are talking about trade with China. And we shout about human rights when we are sending cruise missiles into Libya, Iraq, or Afghanistan. Under the guise of human rights we are trying to eliminate regimes that are unwilling to buy into the global free market. Those American values can serve a multiplicity of purposes. They can serve economic goals directly or indirectly. you just have to be creative."

Denny looks enthralled. "I love it chief. The inversion is beautiful, pure poetry. During the Cold War we used geopolitics to advance global economic domination, and now the global economy is used  to access labor and markets in order to advance geopolitical domination. I can hardly wait to get started."

Bravo Team: The Players

In one respect, the members of the Bravo Team are ideally suited for this assignment. They are all brainy types, trained in economics, business, and true believers in the wisdom of the market. William "Bill" Matthews is the teams most senior person, and he is designated by Bif to be the group's convenor. He did not come from great wealth, but from a distinctly privileged background. his father was a corporate attorney with the kind of income that provided a second home on Captiva Island, and a power boat large enough for partying. Bill is an only child, and wanted for little in his early years, vacationing around the world to adapt to seasonal variations. He is an accomplished skier and tennis player, and is steeped in the writings of the "dead white men" who are responsible for Western Civilization. Bill attended an exclusive New England boarding school before going to Harvard. Bill's family had enough money to live with great comfort, but not enough to free Bill from the need to have his own income. So after Harvard, Bill went to Stanford for graduate work in economics, where he developed international interests that carried him into a position in the State Department after graduation. Bill is a congenial and congenital elitist. He will tell you with a straight face that he remembers hearing Bach's Double Concerto in d for Oboe, Violin and Strings, which was his mother's favorite, when he was still in her womb. He uses this ploy to tell the listener that his mother could have been a world-class cellist, but she gave up her musical career to provide the right kind of home for him and his father. Bill's father believed that families needed there types of nourishment to prosper, which he called his "head, heart, and stomach principle." Bill's father took care of the stomach needs through his productive work, while Bill's mother satisfied needs of the heart, and, in the early years, the head, but later the needs for the head was "out-sourced" to tutors and private schools. Bill developed his father's principle by giving a hierarchical order to the needs --stomach needs must be satisfied before the head and before the heart-- and applied the principle to nations. Bill will discuss, without passion or moral judgement, why countries that have experienced hardship in their formative years have very little chance, in a freely competitive environment, of improving their circumstances in life. According to bill, disadvantaged countries or people can advance only by giving the special treatment, and that such efforts violate the natural order and will ultimately harm everyone.

Robert Pierce is the strong, silent type. During his days at the Wharton School he acquired the name "Straight Arrow," reflecting his total dedication to the objective application of economic principles to all forms of human behavior. As a graduate student in economics he irritated everyone by constantly trying to fit economic theory to dating behavior, marriage, and crime. He was slightly megalomaniacal in his effort to construct a general theory of human behavior, reminiscent of the grand theories developed by nineteenth century thinkers. He dislikes being called Bob, as he thinks it reflects a level of familiarity that rarely exists in his relationships with others. He is all business, and always pulls his weight on team projects. Robert and Bill Matthews have a kind of unspoken affinity. They always seem to be on the same wave-length, although there is no outward sign of friendship between them. They both speak fondly of time spent in the Pacific Northwest, and of the challenges of living off the land. They would both be great survivalists, capable of rebuilding society after a nuclear attack.

Emma Golden and Denmark "Denny" Lyte are the dynamic duo of the Bravo Team. They bring brilliance and passion to all discussions, and provide excellent balance for Bill Matthews and Robert Pierce. Emma and Denny provide the creative spark, and the others provide the follow through. Bif knew what he was doing when he put this foursome together. Emma and Denny are the "liberals" on the team and they are preoccupied with their identities as "minorities." they believe that they are products of the American Dream, because they have "made it" based on merit, and they often refer to America as a meritocracy. Reality is somewhat at odds with this image, as both Emma and Denny come from business families that have accumulated considerable wealth in "ethnic niche" markets. Demetrius Lyte, Denny's father, is the CEO of a conglomerate that sells foods, beauty products, and magazines to African Americans, and although he hoped that Denmark would become an academic at a Ivy League college, he was very pleased with his son's State Department career. Emma's parents, Ben and Ruth Golden, took a family restaurant and turned it into an international chain of upscale delicatessens. They sell nostalgia with great pastrami--an unbeatable combination. Emma liked to tell people that she was named after Emma Goldman, but the truth is that it was the name of her mother's sister. At Swarthmore, the girls called her Red Emma because she was always talking about the radical '60s, and writing papers about SDS and the Black Panthers. Emma really regretted having missed the 60s, both for the politics and for the wild times. But at Swarthmore, everyone was pretending to be someone else as a way of avoiding acknowledging their shared privilege and the futures that awaited them among the nation's elites.

*********************************************************************************
Bravo Team Workshop
Subject: Privatization

Bill, Robert, Emma and Denny are seated in high-back, very comfortable, soft leather chairs arranged in a circle. The fifth chair is occupied by a stranger to the team, a somewhat rumpled looking, thirty-something academic type whose appearance  and bearing is still on the kinder side of wunderkind. The room has the décor of the Harvard Club, exuding brains and money with each lamp, rug, and painting. The old Langley crowd liked to refer to this room as the academic war-room, because it made academics feel comfortable when making policy recommendations that often resulted in diminished lives for ordinary people, whether by bombing, starvation-centered embargoes, or welfare reform. It was simply unthinkable that one could do harm in such a warm, humane room.

The five seated figures look right at home and are calmly arranging pens and pads on the writing tables at the side of their chairs that they can swing across the arms of their chair. This could be a group therapy session at Chestnut Lodge where institutional elites get together for a weekend to discuss wealth, power and guilt--25k for the weekend, meals included. Bif breaks the silence, "Welcome all to our think-tank. Our guest today is Geoffry Slikker, known to us all as the world's leading international economist. Geoffry is going to lead our discussion about how to move state-centered and traditional economies toward privatization of goods and services. In short, bring back the market."

"No more bio please. First, call me Gee-Free, which is actually the pronunciation, but I get a kick out of the joke, because I'm anything but free. Let's start with this clipping I found in today's Times," which he passes around and proceeds to read before everyone has a copy.

                                    More Funds Listed for Ex-Nigeria Head

                                                 by the New York Times

Geneva, June 19---Representatives of Nigeria said today that they had found bank accounts in Liechtenstein that probably held tens of millions of dollars looted under General Sani Abacha, the former dictator of Nigeria. Those sums are in addition to much larger accounts in Switzerland, Luxembourg and Britain. Officials estimate that $1.6 billion in accounts in these countries is suspect. In Liechenstein, documents show that more than $150 million had been transferred to two banks and that a third bank had five accounts where sizable deposits had been made by members of Abacha's family, according to lawyers for the Nigerian government. Negotiations to report the exact amounts are underway with Vaduz. In the past, the tiny principality between Switzerland and Austria did not report any figures.

Geoffrey tosses the news clipping in the air and slams his hand down on his writing table. "That's what we have to contend with. The liberal press always slamming the rich and the powerful. What, exactly, has Abacha done that is wrong? For all we know, the money has not been looted, but he has put government funds in foreign banks for safekeeping, because Nigeria lacks a central bank that can be trusted."

"Isn't that a bit of a stretch, Gee-Free," says Emma. I wonder what kind of return he is getting on $1.6 billion?"

"Maybe it's a stretch, but doesn't he enjoy the same benefit of the doubt that we give to welfare queens when they are suspected of double-dipping? Besides, he is also a role model because he is emphasizing savings, and if more Nigerians would save money there would be money to loan people to start their own companies."                                            


"But what's the point, Gee-Free," says Robert with slight irritation, and blurting "what the hell are we paying this guy."

Geoffrey responds. "The point is to know what you are up against. The best laid economic policies can be destroyed by a witch-hunting liberal press. For all we know, Abacha and his family made it big in the market in the "90s, and the money squirreled away in Swiss banks is rightfully theirs. Hell, i made a small fortune trading in the foreign exchange market buying and selling the Thai bhat. knew when to buy the bhat and when to sell the bhat. 

Denny jumps in: "Weren't you also a consultant for the Thai government. Is this a case of insider trading," he says, drawing warm laughter from the group.

"No way," says Geoffrey, "I consult for the US government and that doesn't prevent me from buying and selling stock. I made that money because I'm smart and smart people shouldn't be penalized."

"We all agree with you Gee-Free," says bill, "but no one gave us a chance to get in on the bhat.""

"Well if you invited me sooner I might have put you on to it. Anyway, enough of this little warm-up piece on Nigeria.. The bigger question is how to sell the idea of using the power of the market, whether it is in Nigeria, Russia, or China. Big state-centered projects can never beat the market in delivering the goods. I want to make that point to you with a story about the Dinosaur and the Octopus. Let's start with the dinosaur and a far-out example, the genocide project of the Nazi regime during World War II."

Emma jumps in. "If you mean the holocaust, why don't you say so."

Geoffrey smiles, knowing that he is dealing with a right-wing liberal, and thinking to himself, how can these people work for the Agency and pretend to have humane values. "The term holocaust lacks precision, carries a lot of political baggage, and is used to cover a host of sins. Genocide, on the other hand, refers to the systematic destruction of a racial, political, or cultural group. It is a more inclusive and analytical term and can be applied to Native Americans, Gypsies, Communists, Jews, Palestinians, or supporters of the FMLN in El Salvador."

"Point taken" says Emma, grudgingly.

"Back to the main point," says Geoffrey, irritated by Emma's distracting comment.

"The Nazi genocide project is a classic example of top-down, vertically integrated structure that is designed to achieve a mass production goal. It is the same structure used by General Motors in the 1950s and '60s to dominate the automobile market. The Nazis controlled supply and demand, production, distribution, and marketing. General motors incorporated suppliers into their firm, controlled demand through massive advertising and marketing, and handled distribution and financing through their own dealerships and financing divisions. Both the Nazis and General Motors are dinosaur structures, with a little tiny brain center trying to control a massive workforce of guards and prisoners in the Nazi case, or managers and workers in the General Motors case, through top-down control and flow of information. One structure has the goal of processing people efficiently, and the other to produce cars at low cost.

"I thought the goal of most corporations was to become a dinosaur, in the sense that they are the biggest and strongest," says Robert.

"Maybe in the old economy, but not today," snaps Geoffry. "Let's get creative folks. Let's turn the dinosaur into an octopus. How would you have advised the Nazis to use the power of the market to run a more efficient and effective operation."

"I know where you are going, Gee-Free, very clever," say Bill. "The Nazis should, of course, have out-sourced their work to private firms. they might have asked cities throughout Germany to make bids for locating concentration camps in their area. Privatize the camps in the same way we are privatizing prisons in the U.S. today."

Emma jumps in: "Why limit the out-sourcing to German cities? They probably could have obtained bids from the Vatican, and number of Arab countries, and also from the U.S. Running the camps is a labor-intensive system, and once you privatize it you will replace soldiers with civilian workers. That's a lot of jobs."

"And the beauty of privatization," exclaims Denny with enthusiasm, "is that you get new stakeholders in the camp system, people who have an interest in making it succeed. This is really brilliant. Its exactly what the Salvadoran government did in their battle with the FMLN and FDR in the 1980s. Instead of relying solely on the military, they brought in the so-called Death Squads, made up mainly of right-wig civilians, who kidnapped, tortured, and murdered thousands of the political opposition. All at no direct financial cost to the government."

"And the added beauty," hisses Robert, "is that the Death Squads are still operating even after the peace accords between the government and the FMLN. Although the government can't keep killing their opposition, the Death Squads can still do their work on behalf of the government without a formal tie."

Geoffry is very pleased. "You people obviously haven't forgotten your grad school training. You know how to privatize with the best of the free marketeers. When this kind of thinking finally hit general Motors, they also started to outsource their work to suppliers around the world. The result, whether we are talking about concentration camps, death squads, or GM, is an organization that is structured like an octopus. The head of the octopus is not a control or decision-making center, bur a coordination center that interrelates the work of the tentacles, which is an autonomous agent carrying out its own work. You can rip out one of the tentacles without affecting the octopus, and, moreover, you can grow a new tentacle."

"Down with the dinosaur, up with the octopus," screams Ellen in her best cheerleader style.

"You better believe it," beams Geoffrey. "Who wants to take me to lunch?"

 ********************************************************************************

The scene is often described as "awe inspiring." The very large seal of the United States seems to be suspended in mid air, without apparent support. (Perhaps it is a hologram projected n dust particles by the intersection of powerful laser projectors. The kind of stuff that spooks at the Agency are always playing with). The U.S. flag is large and prominent at the center of a V, flanked by smaller national flags of visiting dignitaries. The smaller flags are positioned to appear to be looking at Old Glory in a supplicant's posture. A Marine Corps string quartet plays softly, providing an air of elegance. There is something visually jarring about having "take-no-prisoners-killing-machine" Marines playing softly in a string quartet amidst all the pomp and circumstance in the Rose Garden. It is sort of like having death row inmates playing in a string quartet while one of their own is being marched into the death chamber.

To say that the scene is awe inspiring suggests an emotional or psychological feeling. But, in  fact, the scene is powerfully social in nature. It gives one the feeling of belonging to something larger than particular individuals and therefore of great importance. It is the kind of transcendent feeling that allows one to look at the President and say to oneself "I can't stand that son-of-a-bitch," and simultaneously stand and applaud when he enters and leaves a room. It is the feeling that made grownups applaud with tear-filled eyes when the creepy Richard Nixon walked across the south lawn of the White House for the last time and climbed aboard a helicopter that took him into political exile.

The crowd in the Rose Garden is festive, engaged in animated paired conversation while maintaining eye contact with as many others as possible. Bill, Robert, Emma, and Denny are seated in the back of the audience, observing the proceedings. Bill says, "Nice turnout. Plenty of dignitaries and lots of media. We should get good coverage of this on the news tonight." Emma chimes in, "well get coverage as long as no one goes postal before the evening news." Denny snickers, "As they say in news circles, if it bleeds it leads." They feel responsible for this gathering because they set in motion the project that will be announced.

A hush sets over the crowd as the President approaches the podium. "Isn't this a glorious day! Beth and I have never seen the flowers look so beautiful. And all of you look beautiful as well. this is an historic day on which we will take the first step in what we intend to be a long journey of new partnerships between the United States and our friends in Africa. The first step is in Nigeria and we have with us today Azike Emedu and Ibafemi Offolowa." The President gestures to the two young women on his left and the crowd applauds. "Ms. Emedu and Ms. Offolowa are from the two largest ethnic groups in Nigeria, the Ibo and Yoruba peoples, and one is a Christian and one is a Muslim. So today we not only celebrate a new partnership between the United States and Nigeria, but a new partnership between the Ibo and Yoruba, the Christians and Muslims."

The military string quartet plays an unrecognizable melody that is undoubtedly the national anthem of Nigeria, as indicated by the bowed heads of members of the Nigerian Embassy staff. Azke and Ibafemi glare at each other, nether betraying the President's declaration of a new partnership. As the music trails off, the president moves back to the podium. "Today, we take the fruits of the new global economy one step forward. Although the last decade has seen the successful adoption of capitalism in many parts of the world where it had not existed before, today we begin the task of making people capitalists and not simply part of capitalism. I am reminded of a parable I learned many years ago from a Baptist preacher. Let me read it to you."

             If you give a man a fish, you feed him for one day. But if you teach him how to fish, he can feed himself forever.

Azike is thinking to herself: My people live on the outskirts of Ajuba. There is no water and certainly no fish. I hope he does not donate fishing poles to our people.

Ibafemi is more irritated than puzzled: These Americans, Always acting like they know so much about other peoples and their needs. Yes, they live in the Niger delta, and the fish parable may be appropriate, but if the President could see what the oil companies have done to the delta he wouldn't be recommending fishing there.

The crowd applauds the president and his parable, with head-nodding that seems to say, we recognize wisdom when we hear it. The President continues: "We intend to break the cycle of dependence on foreign aid, and give the people the tools to become entrepreneurs in the new economy."

The groans from the Nigerian Ambassador are almost audible: He is going to cut our foreign aid again! How can he do that? The U.S. buys almost half of our oil production of two million barrels a day. They should be giving us more aid so we can become less dependent on foreign oil companies for our foreign exchange. We used to exporters of our agricultural products, and now we are net importers for our food needs. Too bad we can't eat oil.

The President continues: "Let me introduce you to John Anderson, who will tell you about our plans for Nigeria. Some of you will remember John when he was a third party candidate for President in 1980. Right now he is President and CEO of the World Federalist Association, and he does many of the important things that I wish I could do. John has the advantage of not having to work with Congress, but that's another story. John come up here."

John steps to the podium and receives light but sustained applause.


He has the same stark-white hair of twenty years earlier, a curious feature that somehow always made him look younger rather than older. It may be the slight albino look of the pink-eyed rabbit that gives the aura of youth. "Thank you Mr. President for your kind words and your support of CUP, Capitalists United for Power. CUP is against foreign aid because it is a form of charity and dependency that never helps those who are most deserving. You remember the old joke about the Congressman who asks a constituent if he knew the definition of foreign aid. the constituent says no, and the Congressman says: Foreign aid is money you take from poor people in rich countries and give to rich people in poor countries."


The audience erupts in laughter. The President turns to John: "John, if you told jokes like that in 1980, you might have become president." John replies, "You're probably right. The guy who won had some great one-liners. Anyway, back to CUP. We plan to provide small loans --working capital--to poor people in poor countries in order to turn them into capitalists, with a small C. A loan of as little as $50 can allow a poor woman to start a handicraft business, making straw baskets or wood carvngs that can be sold at Pier One Imports in the United States. Or we might loan $100 for a sewing machine machine, making it possible for a family to sew shirts or pants for J. C. Penney or Kathie
Lee Gifford. This is not charity, these are short term loans that are paid back in weekly payments. When the first loan is paid off, our capitalist can borrow again, each time a little bit more. And before you know it, the really creative capitalists will be able to hire their neighbors to work for them, and they can begin t live off the labor of others.

The audience breaks into spontaneous applause, revealing genuine enthusiasm for this micro-finance program. john continues: "Now I know what your thinking. Why should I lend $50 or $100 to someone who has no collateral? that's not good business. But here is where the U.S. steps in, because they will be backing this loan program to cover any of the failures to repay. And the possible coat to the U.S. taxpayer will be a lot less than the current cost of foreign aid.. the end result is everyone wins!

The President wants to cut this short and get on with the photo-ops. "Very exciting John. We should have started something like this years ago. Now what about our visitors from Nigeria. what do they have to do with the CUP project? "Right Mr. President. We plan to make our first loans to two young women from Nigeria, Azuike Emedu and Ibafemi Offolawa. They have been identified by several NGOs, non-governmental organizations, as community leaders and members of the Young Capitalist League. Azike would you please come forward." Azike walks to the podium. John Anderson hands her an envelope and says, "This woman doesn't need our foreign aid or our charity, but she does need a short-term U.S. guaranteed loan to start a business. Congratulations, Azike!"

Azike opens the envelope to find a check for $50. She breaks into tears, and after regaining her composure, speaks: "I am most grateful to the CUP project and to the people of the United States. With God's help, I will use this money to buy bricks for an oven, charcoal, and flour. I plan to bake bread for sale in the market in my home village. And one day I will bake bread for all of Nigeria and then for the world."

The audience applauds, and cameras scan the crowd for the best emotions. John hugs Azike. "You got it right Azike. Today cup is in Nigeria. Tomorrow it will be the world CUP.

Denny whispers to his comrades, "I thought the world cup was the largest jock strap." Bill tries to stop the giggling, "Cool it! stay with the program."

John continues. "Ibafemi, please come up here for your CUP award." He hands her an envelope, which she opens, looks at he check and approaches the podium without being asked. "I had planned to use my award to raise pigs in my village. But I have changed my mind. I will use my award to help te Ijaw people of the Niger Delta."

"Oh shit, what is going on here," growls Robert to his partners. "This is not in the script. Pull the plug on her."

"No way," replies Bill. "Too many reporters and cameras. Let's just ride this tiger."

Ibafemi reaches into a sash around her waist and withdraws several sheets of paper. "I would like to read a statement. To the Presidents of the following petroleum companies: Shell, Conoco, British Petroleum, Texaco, Philips, Mobil, Chevron and all other foreign-owned hydrocarbon upstream/downstream companies operating in the Niger Delta. We have irrefutable evidence report that the General Adulsalami Abubakar-led military junta is planning an operation against the people of the Niger Delta. The attack is supported by some Western governments and a consortium of oil companies who are supplying gunboats, pilots and other military hardware to be used. We are aware that the Nigerian armed forces have no operational gunboats nor qualified pilots to fly them, hence their recourse to the use of foreign mercenaries." 

"Thank you Ibafemi" says Anderson with his biggest smile, while trying to guide the young woman away from the podium.

"I am not finished," Ibafemi states firmly. The President moves toward the podium."We have time John, let Ms. Offolowa finish." Still smiling, he whispers to Anderson, "I will handle this."

We of the Action Group Against Enslavement of Nigerian ethnic groups want to know what exactly is the Central Intelligence Agency, CIA, the National Security Council, NSA, and USAID up to by meeting Mobil, Chevron, and Texaco officials with regards to Nigeria? What was Undersecretary of State Thomas Pickering and Assistant Secretary  of State for Africa Susan Rice also doing in that meeting that excluded environmental and human rights groups, which have criticized the oil companies atrocities in Nigeria?"

The President moves toward the podium applauding, which is followed on cue by his staff, nd then the general audience. Ibafemi is taken aback by the deafening applause and the TV cameras on wheels that zoom right up to her and the President.

"Ibafemi, I want you to know that this government takes a back seat to no one when it comes to human rights. I may not agree with everything yu said, but I will defend your right to say it. Where else but in America can someone stand in the Rose Garden and speak their mind according to the dictates of their conscience." The President is beaming with his best look of genuine compassion and love.

The quartet starts playing God Bless America and the crowd joins in singing. It almost sounds like Kate Smith is in the crowd because someone is really booming.

Bill is chuckling as he walks out with Emma, Denny, and Robert in tow. "That man is something else. they don't come any smarter or slicker. He would have made a great mole for the Agency; beyond double agent--he could do triples or quadruples. What a waste that he went into politics.

"And you can bet that he'll make sure that Ibafemi is greeted by General Abubakar when she gets back to Nigeria. People sometimes forget that snake goes with snake oil."

                                                                 The End
      




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