The G8 Summit: A Fraud And A Circus - John Pilger

[Islamic Revival]

The front page of the London Observer on 12 June announced, "55 billion Africa debt deal 'a victory for millions'." The "victory for millions" is a quotation of Bob Geldof, who said, "Tomorrow 280 million Africans will wake up for the first time in their lives without owing you or me a penny...". The nonsense of this would be breathtaking if the reader's breath had not already been extracted by the unrelenting sophistry of Geldof, Bono, Blair, the Observer et al. Africa's imperial plunder and tragedy have been turned into a circus for the benefit of the so-called G8 leaders due in Scotland next month and those of us willing to be distracted by the barkers of the circus: the establishment media and its "celebrities". The illusion of an anti establishment crusade led by pop stars - a cultivated, controlling image of rebellion - serves to dilute a great political movement of anger. In summit after summit, not a single significant "promise" of the G8 has been kept, and the "victory for millions" is no different. It is a fraud - actually a setback to reducing poverty in Africa. Entirely conditional on vicious, discredited economic programmes imposed by the World Bank and the IMF, the "package" will ensure that the "chosen" countries slip deeper into poverty. Is it any surprise that this is backed by Blair and his treasurer, Gordon Brown, and George Bush; even the White House calls it a "milestone"? For them, it is an important facade, held up by the famous and the naive and the inane. Having effused about Blair, Geldof describes Bush as "passionate and sincere" about ending poverty. Bono has called Blair and Brown "the John and Paul of the global development stage". Behind this front, rapacious power can "re-order" the lives of millions in favour of totalitarian corporations and their control of the world's resources. There is no conspiracy; the goal is no secret. Gordon Brown spells it out in speech after speech, which liberal journalists choose to ignore, preferring the Treasury spun version. The G8 communique announcing the "victory for millions" is unequivocal. Under a section headed "G8 proposals for HIPC debt cancellation", it says that debt relief to poor countries will be granted only if they are shown "adjusting their gross assistance flows by the amount given": in other words, their aid will be reduced by the same amount as the debt relief. So they gain nothing. Paragraph Two states that "it is essential" that poor countries "boost private sector development" and ensure "the elimination of impediments to private investment, both domestic and foreign". The "55 billion" claimed by the Observer comes down, at most, to 1 billion spread over 18 countries. This will almost certainly be halved - providing less than six days' worth of debt payments - because Blair and Brown want the IMF to pay its share of the "relief" by revaluing its vast stock of gold, and passionate and sincere Bush has said no. The first unmentionable is that the gold was plundered originally from Africa. The second unmentionable is that debt payments are due to rise sharply from next year, more than doubling by 2015. This will mean not "victory for millions", but death for millions. At present, for every 1 dollar of "aid" to Africa, 3 dollars are taken out by western banks, institutions and governments, and that does not account for the repatriated profit of transnational corporations. Take the Congo. Thirty-two corporations, all of them based in G8 countries, dominate the exploitation of this deeply impoverished, minerals-rich country, where millions have died in the "cause" of 200 years of imperialism. In the Cote d'Ivoire, three G8 companies control 95 per cent of the processing and export of cocoa: the main resource. The profits of Unilever, a British company long in Africa, are a third larger than Mozambique's GDP. One American company, Monsanto - of genetic engineering notoriety - controls 52 per cent of the maize seed in South Africa, that country's staple food. Blair could not give two flying faeces for the people of Africa. Ian Taylor at the University of St Andrews used the Freedom of Information Act to learn that while Blair was declaiming his desire to "make poverty history", he was secretly cutting the government's Africa desk officers and staff. At the same time, his "department for international development" was forcing, by the back door, privatisation of water supply in Ghana for the benefit of British investors. This ministry lives by the dictates of its "Business Partnership Unit", which is devoted to finding "ways in which DfID can improve the enabling environment for productive investment overseas and... contribute to the operation of the financial sector". Poverty reduction? Of course not. A charade promotes the modern imperial ideology known as neoliberalism, yet it is almost never reported that way and the connections are seldom made. In the issue of the Observer announcing "victory for millions" was a secondary news item that British arms sales to Africa had passed 1 billion. One British arms client is Malawi, which pays out more on the interest on its debt than its entire health budget, despite the fact that 15 per cent of its population has HIV. Gordon Brown likes to use Malawi as example of why "we should make poverty history", yet Malawi will not receive a penny of the "victory for millions" relief. The charade is a gift for Blair, who will try anything to persuade the public to "move on" from the third unmentionable: his part in the greatest political scandal of the modern era, his crime in Iraq. Although essentially an opportunist, as his lying demonstrates, he presents himself as a Kiplingesque imperialist. His "vision for Africa" is as patronising and exploitative as a stage full of white pop stars (with black tokens now added). His messianic references to "shaking the kaleidoscope" of societies about which he understands little and "watching the pieces fall" has translated into seven violent interventions abroad, more than any British prime minister for half a century. Bob Geldof, an Irishman at his court, duly knighted, says nothing about this. The protesters going to the G8 summit at Gleneagles ought not to allow themselves to be distracted by these games. If inspiration is needed, along with evidence that direct action can work, they should look to Latin America's mighty popular movements against total locura capitalista (total capitalist folly). They should look to Bolivia, the poorest country in Latin America, where an indigenous movement has Blair's and Bush's corporate friends on the run, and Venezuela, the only country in the world where oil revenue has been diverted for the benefit of the majority, and Uruguay and Argentina, Ecuador and Peru, and Brazil's great landless people's movement. Across the continent, ordinary people are standing up to the old Washington-sponsored order. "Que se vayan todos!" (Out with them all!) say the crowds in the streets. Much of the propaganda that passes for news in our own society is given to immobilising and pacifying people and diverting them from the idea that they can confront power. The current babble about Europe, of which no reporter makes sense, is part of this; yet the French and Dutch "no" votes are part of the same movement as in Latin America, returning democracy to its true home: that of power accountable to the people, not to the "free market" or the war policies of rampant bullies. And this is just a beginning.

First published in the New Statesman - www.newstatesman.co.uk

[Islamic Revival]

Disinformation Campaign and Public Relations Stunt on behalf of the G8

by Michel Chossudovsky

July 5, 2005

Live 8, "the greatest concert" ever aired live, has been presented to World public opinion as an "awareness campaign" in solidarity with Africa. Its stated objective was to put pressure on the Group of Eight leaders (G8) to increase foreign aid flows and cancel the debt of the World's poorest countries.

In the words of its promoter Bob Geldof, Live 8 has provided a "unique opportunity" to save a continent from a humanitarian disaster.

The Live 8 concerts organized in the eight major industrial countries (as well as in South Africa), however, were not intended to raise money for the World's poorest countries.

In fact quite the opposite.

Live 8 is a multimillion dollar undertaking, which will result in huge profits for its corporate sponsors including AOL Time Warner, the US based media giant, the Ford Motor company, through its Swedish affiliate Volvo and Nokia, the cell phone company, not to mention Britain's EMI Music Group, which has entered into a highly lucrative arrangement with the Live 8 organizers.

AOLTime Warner controls the US broadcasting rights which it has licenced to the Walt Disney Company for broadcast TV on ABC and a myriad of affiliated TV and radio stations, including Premiere Radio Networks, XM Satellite Radio and Viacom's MTV Networks (for cable TV). AOL also holds the exclusive online rights for the event on the internet.

TV air-time has been auctioned off around the world. Millions of dollars of advertising revenues are expected from the broadcasting of the event, not to mention the repeats, the video-clips, the internet broadcasting and the DVDs, which will be available commercially.

According to the producers, Live 8 will go down as "the biggest global broadcast in history". The organizers expect --through TV, radio and the internet-- to reach some 5.5 billion people, or 85 per cent of the world's population. The advertising industry places the number of potential viewers at a conservative two billion, approximately one third of the World's population.

By far this is largest media advertising operation in history, which will line the pockets of the promoters, producers, corporate sponsors, not to mention the royalties accruing to the performers and "celebrities". A small percentage of the proceeds might accrue to charitable organizations involved in developing countries but this is not the stated objective of Live 8.


The Ford Motor Company has used the event to promote its "up-market" Swedish car division Volvo, with advertising spots during the US broadcast.

Volvo has also provided for artist transportation to and from the London and Philadelphia concerts as well as a VIP entertainment suite at the Philadelphia concert. (See www.adage.com/news, June 30, 2005).

"The event, said company spokesman Soren Johansson, "fits with the DNA of the company" and "appeals to people’s emotions." One of Volvo's TV spots features 'Volvo for Life" award-winner Rosamond Carr, "who operates an orphanage in Rwanda, and two others talking about Volvo’s values and their reasons for Live 8 involvement." (Ibid)

Moreover, Vonage, the US based phone company is said to have spent "'six figures' to become a primary sponsor of Premiere Radio Networks’ coverage". And will also run a Live 8 schedule on MTV Networks.

The EMI Deal

In a multimillion dollar agreement with the Live 8 organizers, Britain's EMI Music Group has secured the exclusive rights on the DVDs of the concerts in six of the G8 countries including the US, France, Britain, UK, Italy and Germany:

"An EMI spokeswoman said that once sales had paid for the advance, Live 8 would pay a 'very generous royalty rate' to Live 8 on the rest of the sales."

In the words, of Bob Geldof, "I hope this will be the biggest-selling DVD of all time."

Meanwhile, the event has contributed to boosting stock market values with EMI's share price triple its 2003 level.

Distorting the Causes of Global Poverty

The concerts are totally devoid of political content. They concentrate on simple and misleading clichés.

They use poverty as a marketing tool and a consumer-advertising gimmick to increase the number of viewers and listeners worldwide.

Live 8 creates an aura of optimism. It conveys the impression that poverty can be vanquished with the stroke of the pen. All we need is good will. The message is that G8 leaders, together with the World Bank and the IMF, are ultimately committed to poverty alleviation.

In this regard, the concerts are part of the broader process of media disinformation. They are used as a timely public relations stunt for Prime Minister Tony Blair, who is hosting the G-8 Summit at Gleneagles, Scotland. Tony Blair is presented as stepping up his campaign to convince other G8 nations "to take action on poverty".

The G8's Debt Forgiveness Proposal

Live 8 fails to challenge or comprehend the G8 policy agenda which directly contributes to creating poverty, nor does it question the role of the World Bank, now under the helm of Paul Wolfowitz, the neo-conservative architect of the invasion of Iraq,

In addressing the issue of debt forgiveness, Live 8 does not even acknowledge the impacts of IMF-World Bank "economic medicine" imposed on the World's poorest countries on behalf of Western creditors.

These deadly macro-economic reforms have contributed to the impoverishment of miillions of people. They oblige countries to close down their schools and hospitals, privatize their public services and sell off the most profitable sectors of their national economy to foreign capital. In return, the G8 promises to increase foreign aid and provide token debt relief. These reforms kill and the G8 is not the solution but the cause. Actor Will Smith addressed the crowds at the concert venues "to snap their fingers" as a reminder that every three seconds a child dies in Africa. What he failed to mention is that the main cause of child mortality in Africa are the deadly macroeconomic reforms.

Bob Geldof sees an increase in foreign aid completely out of context, as a "unique opportunity" to eradicating poverty, when in fact the proposed increase in aid flows by the rich G8 countries will lead to exactly the opposite results.

A large percentage of the debt of these countries is owed to the World Bank, the IMF and the African Development Bank

To address this issue, G8 finance ministers had indeed put forth a proposal which consisted in "foregiving" the outstanding debt owed to these three international financial institutions by the 18 highly indebted countries. The debt forgiveness figure mentioned was of the order of 40 billion dollars. Concurrently, there was a vague commitment to eventually increasing foreign aid flows to the 0.7% of GDP target. (http://www.g8.utoronto.ca/finance/fm050611_dev.htm )

Where is the hitch behind this seemingly reasonable "debt forgiveness" proposal?

The IMF, the World Bank and the African Development Bank, never cancel or forgive outstanding debts.

Because they do not forgive debts, the G8 has committed itself to reimbursing the multilateral creditors acting on behalf of the World's poorest countries.

Where will they get the money?

For each dollar of "debt cancellation" to the international financial institutions, the G8 will reduce the flow of foreign aid to these countries. In other words, the foreign aid earmarked to finance much needed social programs will now go directly into the coffers of the IMF and the World Bank.

There is nothing new in this financial mechanism. It has been used time and again since the onslaught of the debt crisis.

"Social Safety Net" for the IMF and the World Bank

What we are dealing with is not a debt forgiveness program, but a "reimbursement" process which directly serves the interests of the creditors.

The deal constitutes a much needed "social safety net" for the multilateral creditors. It ensures a cash flow towards these institutions, while maintaining the World's poorest countries in the stranglehold of the IMF and the World Bank. It also prevents these countries from declaring default on their external debt.

President Bush has made it very clear. The money paid to the World Bank on behalf of the countries, will be "taken out of existing aid budgets."


The "debt forgiveness" program, even if it is accompanied by an increase in foreign aid commitments, will result in a significant compression of real foreign aid flows to the highly indebted countries.

The proposed increases in foreign aid commitments are ficticious since the money is intended for the multilateral creditors. And the deal will only be implemented if the indebted countries promise to carry out the usual gamut of "free market" reforms, under IMF/World Bank supervision.

An added condition emanating directly from the Bush administration pertains to "governance". It requires these countries to "democratize" on the US model under Western supervision, as well as carry out "free elections" on the example of Iraq and Afghanistan.


Concluding Remarks

The concerts serve to usefully distract public attention from the US-UK led war on Iraq and the broader relationship between war and global poverty. Not a word is mentioned in the concerts on the fact that George W. Bush and Tony Blair are considered "war criminals" under international law.

Moreover, Live 8 tends to undermine all forms of meaningful and articulate dissent to the G8 policy agenda. With the exception of the South African venue, which included the appearance of Nelson Mandela, the concerts are devoid of a broader understanding and commitment.

Live 8 undermines both the anti-globalization and anti-war movements. It diverts public opinion and distracts media attention from the G8 protest movement. It also serves to undermine the articulation of more radical voices against the New World Order.

More generally, the event instills an atmosphere of ignorance among the millions who listen to the music and who have the feeling of doing something positive and constructive. But none of the core elements needed to understand the causes of global poverty are presented.

To the Live 8 corporate sponsors, including Bob Geldof, the EMI Group, AOL Time Warner, The Ford Motor Company, Nokia, MTV, the Walt Disney Company, etc. "Put your money where you mouth is."

If you are really committed to poverty alleviation, give the entire proceeds of this multimillion dollar media operation, including the revenues generated by the corporate sponsors, TV networks, advertising firms, royalties accruing to celebrities and performers, to the people of Africa. Let them use this money as they see fit, without interference from donors and creditors.

To the people of Africa. Do not let yourself be deceived by a giant corporate media stunt where poverty is used as a logo, to attract consumers and make money. Default on your debt to the IMF and the World Bank.


Michel Chossudovsky is Professor of Economics at the University of Ottawa and Director of the Centre for Research on Globalization (CRG), He is the author of The Globalization of Poverty and the New World, Second Edition, Global Research, 2003.