Pope’s climate letter is a radical attack on the logic of the market

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Steffen Böhm, University of Esse

What makes Pope Francis and his 183-page encyclical so radical isn’t just his call to urgently tackle climate change. It’s the fact he openly and unashamedly goes against the grain of dominant social, economic and environment policies.

While the Argentina-born pope is a very humble person whose vision is of a “poor church for the poor”, he seems increasingly determined to play a central role on the world stage. Untainted by the realities of government and the greed of big business, he is perhaps the only major figure who can legitimately confront the world’s economic and political elites in the way he has.

However his radical message potentially puts him on a confrontation course with global powerbrokers and leaders of national governments, international institutions and multinational corporations.

The backlash has begun even before the encyclical has been officially published. US presidential candidate Jeb Bush, a Catholic, feels the pope should stay out of the climate debate, joining other Republicans, fossil fuel lobbyists and climate denier think-tanks in seeking to discredit Pope Francis’s intervention.

What makes the pope so radical?

There are several meanings of the word “radical” that can be applied to the Pope and in particular his forthcoming encyclical.

First, radical can be understood as going back to the roots (from Latin radix, root). The majority of Catholics live in the Global South; in Latin America and sub-Saharan Africa. Francis is the first pope from the Global South, and naming himself in honour of Saint Francis of Assisi, “a man of poverty and peace who loved nature and animals”, signalled to the world a commitment to going back to the roots of human existence.

The pope knows the plight of the majority world. Before he became Archbishop of Buenos Aires, he was a priest in the vast, poor neighbourhoods, the villas miserias or slums, of Argentina’s capital.

Improving the lives of slum dwellers and addressing climate change is, for Pope Francis, one and the same thing. Both require tackling the structural, root causes of inequality, injustice, poverty and environmental degradation.

For example, his encyclical says:

Even as the quality of available water is constantly diminishing, in some places there is a growing tendency, despite its scarcity, to privatize this resource, turning it into a commodity subject to the laws of the market. Yet access to safe drink- able water is a basic and universal human right, since it is essential to human survival and, as such, is a condition for the exercise of other human rights. (p. 23)

This stands in stark contrast to, for example, Peter Brabeck-Letmathe, the chairman of Nestlé, the world’s largest food and bottled water company, who thinks water is a normal commodity with a market value, and not a human right. Nestlé is far from unusual. Its stance is backed up by the official water privatisation policies of the World Bank, IMF and other international institutions.

In fact, the encyclical is a radical – for a pope and international leader, unprecedented – attack on the logic of the market and consumerism, which has been expanded into all spheres of life.

The document states:

Since the market tends to promote extreme consumerism in an effort to sell its products, people can easily get caught up in a whirlwind of needless buying and spending. Compulsive consumerism … leads people to believe that they are free as long as they have the supposed freedom to consume. But those really free are the minority who wield economic and financial power. (p. 149-150)

The pope rejects market fundamentalism, instead arguing that “the market alone does not ensure human development and social inclusion.”

In the same way, he warns us of the brave new world of carbon markets such as the EU Emissions Trading System and the UN’s Clean Development Mechanism, which have been created to reduce the world’s carbon emissions.

The encyclical states:

The strategy of buying and selling “carbon credits” can lead to a new form of speculation which would not help reduce the emission of polluting gases worldwide. This system seems to provide a quick and easy solution under the guise of a certain commitment to the environment, but in no way does it allow for the radical change which present circumstances require. Rather, it may simply become a ploy which permits maintaining the excessive consumption of some countries and sectors. (p. 126)

The pope’s right. The same criticisms of carbon markets have been made by myself and others.

Will he make any difference?

Pope Francis has already angered conservative Catholics in the US by clearly stating that:

Climate change is a global problem with grave implications: environmental, social, economic, political and for the distribution of goods. It represents one of the principal challenges facing humanity in our day. (p. 20)

While the pope is not a politician – or maybe precisely because he is not one – he commands high moral and ethical authority that goes beyond traditional partisan lines. His encyclical speaks truth to power, and he might be the only person with both the clout and the desire to meaningfully deliver a message like this:

Many of those who possess more resources and economic or political power seem mostly to be concerned with masking the problems or concealing their symptoms, simply making efforts to reduce some of the negative impacts of climate change. However, many of these symptoms indicate that such effects will continue to worsen if we continue with current models of production and consumption. There is an urgent need to develop policies so that, in the next few years, the emission of carbon dioxide and other highly polluting gases can be drastically reduced, for example, substituting for fossil fuels and developing sources of renewable energy. (p. 21)

The bosses of Shell, ExxonMobil and other fossil fuel companies will not like this message, as it threatens their fundamental business model, and it also stands in contrast to the underwhelming ambitions of the G7 leaders who recently pledged to phase out fossil fuels only by 2100.

The time for bold, radical action on the environment as well as poverty eradication has come. This seems to be Pope Francis’ message: “The same mindset which stands in the way of making radical decisions to reverse the trend of global warming also stands in the way of achieving the goal of eliminating poverty.” (p. 128)

We need to think beyond the current, taken-for-granted logic that believes only markets and consumerism can solve the world’s social and environmental problems. The pope himself believes the situation is so grave that only a new, “true world political authority” will be able to address these problems.


This article was updated on 18 June to include quotes from the final encyclical rather than the earlier draft leaked to L’Espresso magazine.

Steffen Böhm, Professor in Management and Sustainability, and Director, Essex Sustainability Institute, University of Essex

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue ReadingPope’s climate letter is a radical attack on the logic of the market

Milei’s unfinished promises: Argentina has the highest inflation in the world

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Original article by Pablo Meriguet republished from peoples dispatch under a Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license.

Photo: World Economic Forum

Javier Milei’s right-wing government promised to stop inflation in Argentina, and has thus far failed

The neoliberal economic measures of Javier Milei’s government are not improving the economic situation they promised to eradicate. During the election campaign, Milei made several promises that thus far he has been unable to keep. For example, he stated that the price of gas would not increase under his government, but from April to May rates rose by 450%. He also promised that public transportation fares would not increase, but the price of the subway went from 125 to 757 pesos.

The government has not been able to stimulate the growth of the Argentine economy either. According to the IMF itself, which bases a good part of its analysis and recommendations on neoliberal economic theory, the GDP of the Argentine economy will fall by 3.5% in 2024. In this sense, the recession the country is enduring does not seem to have a clear way out. Initially, the IMF thought that the economic contraction would be 2.8% of the GDP, but given the incontestable evidence, it had to adjust its forecast.

However, the IMF maintains that there will be a rebound effect, and that, therefore, in 2025 Argentina will grow by 5%. In addition, the agency praised the economic measures of the Milei government to curb the inflationary process, fiscal adjustment, and liberalization of the economy. Petya Koeva Brooks, deputy director of the Research Department, said that “looking ahead, even in the coming quarters, we expect growth to rebound because we see the effects of fiscal adjustment, the return of confidence and rising wages.”

However, several Argentine economists have stated that such expectations are not based on the reality of the national economy, as the problems caused by high inflation have worsened, as well as the evident decrease in employment in the country. According to data for the first half of 2024, Argentina has the highest cumulative inflation worldwide, 79.8%, and a peak year-on-year inflation of 271.5%.

Another unfulfilled promise of Milei was the increase of employment in the country thanks, according to the libertarian government, to the radical liberalization of the economy. However, despite the set of neoliberal economic measures, there has been a 7.7% increase in unemployment during the first quarter of 2024.

Milei’s administration celebrates the fact that the inflationary process decreased a little compared to previous years, claiming that this is thanks to certain public policies of his administration. This is even though Milei’s brutal fiscal adjustment, the contraction of the State, and the loss of thousands of jobs, which Milei stated would have a very positive impact on inflation, have not had the expected results. For example, food prices in Argentina have risen 260% (40 times more than Mexico), one of many figures which confirms that the neoliberal “shock” measures of Milei are not likely to benefit workers in the long run.

Original article by Pablo Meriguet republished from peoples dispatch under a Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license.

Continue ReadingMilei’s unfinished promises: Argentina has the highest inflation in the world

‘Our Leaders Are Not Leading’: Groups Decry Yet Another G7 Climate Failure

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Original article by BRETT WILKINS republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Italian Prime Minister Giorgia Meloni (center) looks toward Pope Francis as he speaks during the G7 Leaders Summit in Fasano, Italy on June 14, 2024. 
(Photo: Vatican Media via Vatican Pool/Getty Images)

“If these embattled leaders want to leave a lasting legacy, they need to heed the will of voters demanding a safe environment and climate,” one campaigner asserted.

As the Group of Seven summit wrapped up Friday in Italy, climate defenders condemned G7 leaders for their continued failure to take meaningful action to combat the worsening planetary emergency.

Taking aim at what critics called the G7 leaders’ largely empty pledge to undertake “concrete steps to address the triple crisis of climate change, pollution, and biodiversity loss,” 350.org U.S. campaigns manager Candice Fortin lamented that “yet another meeting ends without real commitments to revert the situation rich countries like the U.S. put us in.”

“As COP29 approaches and the world deals with worsening climate impacts, we can’t afford to waste more time,” Fortin said, referring to the United Nations Climate Change Conference scheduled to take place in Baku, the capital of Azerbaijan—a major fossil fuel-producing nation—in November. COP29 is set to be chaired by a former oil executive.

“If the U.S. wants to pride itself on being a ‘world leader,’ it needs to show how it will pay its climate debt to climate-vulnerable countries that bear the most significant climate impacts without the necessary funds for adaptation,” Fortin added.

While G7 governments hailed their recent agreement to phase out existing unabated coal power generation in energy systems during the first half of the 2030s, critics took issue with the policy’s timeline and banks’ continued financing of fossil fuels.

“Our leaders are not leading. In the hottest 12 consecutive months of recorded human history, our leaders are failing us,” argued Bronwen Tucker, Oil Change International’s public finance lead. “G7 countries are adopting an inadequate coal phaseout date and endorsing increased fossil gas production, sending a terrible signal at a time when countries should be focusing on accelerating the phaseout, not delaying it.”

Tucker continued:

G7 leaders can’t say they’re committed to a livable climate while expanding and bankrolling the fossil fuel industry at home and abroad. At the same time, these rich countries should not be congratulating themselves for delivering $100 billion for climate finance two years too late. Trillions are needed to cover climate damages and the G7’s finance was largely provided as loans which only worsens unjust debts.

“The G7 must end the billions of dollars in taxpayer finance still flowing to fossil fuel projects abroad and fund the buildout of affordable renewable energy on fair terms,” Tucker asserted. “If their oil and gas expansion plans are allowed to proceed, it will lock in climate chaos and an unlivable future.”

Greenpeace International climate politics expert Tracy Carty said in a statement that “if these embattled leaders want to leave a lasting legacy, they need to heed the will of voters demanding a safe environment and climate.”

“Taxing the billions of dollars in profits of the fossil fuel industry to fund climate action at home and abroad could be their stake in history and a win for people and planet,” Carty continued. “G7 leaders need to seize the moment ahead of the U.N. climate talks in Baku and show they will lead the transition away from fossil fuels and build trust they will significantly increase climate finance support to developing countries.”

Original article by BRETT WILKINS republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Continue Reading‘Our Leaders Are Not Leading’: Groups Decry Yet Another G7 Climate Failure

Ecuadorian police break into Mexican Embassy, arrest former Ecuadorian VP Jorge Glas

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Original article by Zoe Alexandra republished from peoples’ dispatch under a Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license.

Ecuadorian police breaking into the Mexican Embassy in Quito.

After the Ecuadorian National Police forcibly entered its embassy in Quito, Mexico announced the suspension of diplomatic relations with the country

Lee en español aquí

Late on Friday April 5, dozens of Ecuadorian police officers forcibly entered the Mexican Embassy in Quito and detained former Ecuadorian vice president Jorge Glas. Glas had been conceded political asylum by Mexico earlier that day after having applied in December 2023 amid intensified political persecution against him.

The move has been widely condemned by nearly the entire political spectrum in Mexico as a grave violation of Mexican sovereignty and has also been widely condemned by progressives in Ecuador.

Following the incident, Mexican President Andrés Manuel López Obrador and Foreign Minister Alicia Bárcena announced that Mexico was suspending diplomatic relations with the country.

Roberto Canseco, the head of Foreign Ministry and Political Affairs at the Mexican Embassy in Quito who was present when the incursion took place, spoke to the press shortly after the incident. “They threw me to the floor. I tried to physically stop them from entering but like criminals they raided the Mexican Embassy in Ecuador. This is not possible, this cannot be, it is insane,” Canseco told reporters incredulously.

The diplomat told reporters that there had been no prior warning to the police raid, but that it clearly happened because Glas is being persecuted. He also expressed concern over the whereabouts and wellbeing of the former VP.

He added, “Risking my life, I defended the honor and sovereignty of my country.”

The unprecedented incident took place amid rising tensions between the two countries. Jorge Glas had been seeking refuge at the Mexican embassy since December 18, 2023 and residing at the embassy as a “guest” after Ecuadorian authorities began to intensify pressure on Glas and summon him for investigations. This past week, the government of Daniel Noboa announced that it declared the Mexican Ambassador Raquel Serur Smeke a “persona non-grata” allegedly in response to comments made by President López Obrador in his morning press conference which insinuated that Noboa had benefited from the assassination of presidential candidate Fernando Villavicencio. However, many analysts have pointed to Glas’ presence in the embassy as the key factor behind Quito’s attacks on Mexico, and the events of April 5 seem to have confirmed this theory.

Jorge Glas: Victim of lawfare in Ecuador

Glas spent five years in prison, after being convicted of criminal conspiracy in the Odebrecht case, as part of the vicious lawfare campaign against members of Rafael Correa’s administration. Glas was later convicted in April 2020, along with Correa, in the “Bribes Case”, which alleged that they and 18 other government officials accepted bribes from private companies in exchange for public contracts. As prosecutors were unable to find evidence that the two received bribes, Glas and Correa were accused of “psychic influence” on their subordinates who allegedly carried out these deals and sentenced to several years in prison. Correa was also banned from participating in politics for 25 years.

Read more: Rafael Correa terms prison sentence an act of political persecution

Throughout the intense lawfare campaign against him and others, Glas has maintained that he is innocent and that both the charges and the harsh sentencing of him constitutes political persecution.

During the Correa presidency, Glas was one of the key leaders in the “Citizen’s Revolution” political project, which sought to make important social and economic reforms to better conditions for the majority. During this period, the Correa administration launched a Constituent Assembly to rewrite Ecuador’s constitution to guarantee essential rights for all, among other measures to promote national culture, Indigenous rights; it promoted Latin American regional integration over ties with the US and kicked out the US military base; and maintained anti-neoliberal economic policies, favoring social investment over cuts to public spending and social programs.

This project was brought to a halt in 2017 when Lenín Moreno was elected president and made a volte-face in Ecuador’s policies across the board, taking out a massive loan from the IMF, exiting regional integration spaces and attacking the country’s regional allies and economic partners like Venezuela, and imposing harsh austerity measures and brutally repressing protests against the measures. Under Moreno, the Attorney General also began its targeted attacks on leaders and officials of the Citizen’s Revolution.

Glas was eventually released on November 28, 2022 and granted “provisional freedom” as he had fulfilled over 40% of his prison sentence. However, in December 2023, days after he arrived at the Mexican embassy and weeks after Daniel Noboa took office as president, a judge revoked Glas’ provisional freedom and called for his arrest and imprisonment. Fearing for his life, Glas remained at the embassy and applied for political asylum, which was granted April 5, 2024.

The left in Ecuador responds

Progressive groups in Ecuador immediately expressed outrage at the actions of Noboa’s government and the National Police and issued sharp condemnations.

The Confederation of Indigenous Nationalities (CONAIE) wrote in a statement on X, “The violation of the Mexican embassy in Ecuador is an extremely serious fascist act that threatens diplomatic relations and international law…It is worrying to observe how the authoritarian and fascist government of Ecuador uses force to secure its political trophies. This flagrant violation not only affects bilateral relations between Mexico and Ecuador, but also sends a dangerous message to the international community.”

Pabel Muñoz, the mayor of Quito and a member of the Citizen’s Revolution Movement party, stated, “Unacceptable, a global embarrassment. What just happened in the Mexican Embassy in Quito creates a complex situation for Ecuador before the international system and law. Is there any doubt that Jorge Glas is the victim of terrible persecution? The more concerning part is that he had already been granted political asylum.”

Correa also issued a short statement repudiating the attack on Mexico and the arrest of Glas, “What the government of Noboa has done is unprecedented in Latin American history. Not even in the worst dictatorships was the embassy of a country violated. We do not live under rule of law, it is a state of barbarie, with a guy who improvises [Noboa] that confuses the Homeland with one of his banana farms. We hold Daniel Noboa responsible for the safety and physical and psychological integrity of former Vice President Jorge Glas. To Mexico, its people and its Government, our apologies and eternal admiration.”

Mexico unites in defense of its sovereignty

People across Mexico have expressed outrage in response to the brazen violation of the country’s sovereignty and of international law. In the statement announcing the suspension of diplomatic relations, President López Obrador said it was “an authoritarian act” and a “flagrant violation of international law and Mexican sovereignty”.

Foreign Minister Alicia Bárcena said in an interview with TeleSur that in addition to suspending diplomatic ties, Mexico would take Ecuador to the International Court of Justice and all multilateral bodies over its unprecedented actions.

Presidential candidate for MORENA, Dr. Claudia Sheinbaum called the incident “an attack on diplomacy and international law that is inadmissible”.

Mexico’s Senate also released a statement “energetically condemning” the Ecuadorian government’s actions and demanding “respect to our sovereignty and to the integrity of our Embassy and diplomatic personnel.” They called on the Ecuadorian government to reconsider its actions and resume the diplomatic path to resolve issues.

Both traditional right-wing parties PRI and PAN issued condemnations of the police invasion, while their joint candidate in the upcoming elections released a lukewarm statement saying that diplomatic missions cannot be violated.

Honduran President Xiomara Castro and Venezuelan Foreign Minister Yvan Gil expressed their solidarity with Mexico and condemned Ecuador’s violation of international law.

Original article by Zoe Alexandra republished from peoples’ dispatch under a Creative Commons Attribution-ShareAlike 4.0 (CC BY-SA) license.

Continue ReadingEcuadorian police break into Mexican Embassy, arrest former Ecuadorian VP Jorge Glas

China cancels line of credit, pulling the plug on Argentina’s ‘anarcho-capitalist’ president

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Original article by JAMES MEADWAY republished from People’s World under http://creativecommons.org/licenses/by-nc-nd/3.0/us/.

Dollarization: Javier Milei holds up a giant cardboard sign depicting a U.S. $100 banknote emblazoned with an image of his face during a rally in La Plata, Sept. 12, 2023. Milei wants to replace the peso with the U.S. dollar as Argentina’s currency and says that the country’s Central Bank should be abolished. He’s got a new financial challenge, though: China just cut his line of credit. | Natacha Pisarenko / AP

The Chinese government may have pulled the plug on far-right “anarcho-capitalist” President of Argentina Javier Milei, just weeks after his shock election win.

In a spectacular demonstration of how the lines of geopolitical power are shifting, the People’s Bank of China has withdrawn its “swapline” to the Argentinian central bank, depriving it of a vital source of cheap funding.

This leaves debt-ridden Argentina without ready access to funding to meet its promises to pay creditors. These international creditors include the IMF, to whom Argentina owes a world-record $43 billion. China provided the Argentinian government with funds for its $2.7 billion IMF repayment over the summer, lending it ultra-cheap foreign currency through its swapline arrangement.

Milei, a fanatical free marketeer, was elected with 55% of the vote in November from a population desperate for a break with the failed political Establishment. Developing his public profile through TV appearances and his 1.4 million followers on TikTok, Milei was able to present his program of ferocious spending cuts and the abolition of the Argentinian currency, the peso, as the bitter medicine the country needed to end its economic crisis. Younger voters, in particular, flocked to him in droves.

This was a product of desperation. Two-fifths of Argentinians live below the poverty line, and close to 60% of children. Inflation was over 140% when the election campaign ended, meaning prices doubling roughly every six months.

Since the government defaulted—halted payments—on its debts at the end of 2001, the two decades since have seen governments both pro and anti-neoliberal attempts to negotiate agreements with Argentina’s creditors and break the cycle of crises.

The latest round of these was a colossal 2018 loan from the IMF, attached to conditions on cutting government spending over the following three years.

But what tipped the country over the edge into its latest round of crisis has been the catastrophic drought that began in 2019. This ongoing drought is the worst for over 60 years, hammering farmers and severely cutting harvests—soybean production fell to its lowest level for a century.

For a country dependent on agricultural exports for foreign exchange earnings, it has been a disaster. Its trade deficit ballooned, taxes fell and government spending mushroomed. Government borrowing swelled and the Argentina central bank resorted to issuing more money to cover spending costs. Climate change almost certainly worsened the drought.

Milei’s program offered nothing on this—he is a climate change denier, claiming that those who “blame the human race” for climate change are “fake…only looking to raise funds for socialist bums who write for fourth-rate newspapers.”

The colorful language is very much part of his appeal, along with waving a chainsaw at his public appearances, to symbolize what he planned for government spending, and smashing a piñata of the central bank on live TV.

But cartoonish posing shouldn’t kid us: Milei’s program is neoliberalism on steroids. He campaigned on a promise to cut government spending by 15% of Argentina’s GDP.

His plan to abolish the peso and “dollarize” the economy was arguably even more radical, claiming this would prevent Argentinian bureaucrats and politicians from printing money. Although two other Latin American countries, Ecuador and Panama, use the dollar as their official currency, neither is the size of Argentina, the continent’s second-largest economy.

And while many Argentinians already use the dollar, with $246 billion in dollar savings, the government has no dollars to hand, and would have to either buy them to replace pesos, or perhaps seize them from those mostly middle-class savings.

The plan is a non-starter. Confronted with the economic realities, Milei has rapidly defaulted to conservative type, appointing a former president of the central bank, Luis Caputo, as his economy minister, and appointing a close associate of Caputo as the new central bank head. So much for “burning it down.”

The ferocious spending cuts are still planned, along with a 54% devaluation of the peso as part of a program approved by the IMF.

Far from a radical break, Milei is a stooge for the maintenance of Argentina’s failed elite—including even the rehabilitation of the dictatorship, with his running mate for Vice President, Victoria Villaruel, claiming the figure of 30,000 “disappearances” under the regime is a “myth.”

This is a familiar pattern. Across the world, supposed populists from the radical right have taken power, often with the promise of taking on corrupt local elites. They don’t follow through.

Italy’s radical right government, for example, in August threatened a windfall tax on banks that were profiteering from interest rate rises. But they rapidly backed down after howls of protests from the banks themselves.

Milei has almost certainly bitten off more than he can chew. Expecting protests, harsh new guidelines for police and military, including the criminalization of the parents of younger protests have been rushed through—“prison or bullet,” as one pro-government MP described them. Inflation has accelerated, to 3,678% a year, which the government are now using to justify their “shock therapy.”

However, it is anti-China posturing that could prove his undoing. China is Argentina’s second-biggest market for exports, and loans from China make up over 42 per cent of Argentina’s foreign exchange reserves.

Yet Milei called China an “assassin” during his election campaign, promising to sever ties and instead reorienting Argentina towards full-throated support for Israel and the U.S. Argentina’s foreign minister has confirmed that the country would not be joining the China-led BRICS coalition, as pledged by the last government.

This was treated as a “slap in the face” by China: Cutting loan support to Argentina is the inevitable response. As Milei himself might put it: Fuck around and find out.

Morning Star

Original article by JAMES MEADWAY republished from People’s World under http://creativecommons.org/licenses/by-nc-nd/3.0/us/.

Continue ReadingChina cancels line of credit, pulling the plug on Argentina’s ‘anarcho-capitalist’ president