The number of people on zero hours contracts has quadrupled since records began

By Georgina Lee-7 AUG 2017

Unemployment is at its lowest level since 1975, according to the Office for National Statistics.

And the Conservatives have been keen to point out that since they took office in 2010, the proportion of people that want to work but can’t get a job has fallen by 3.5 percentage points.

But while unemployment levels are low, so is job security. The number of “zero hours contracts” is at a record-high at over 900,000.

FactCheck looks at the figures.

What is a zero hours contract?

According to the ONS, which compiles the main measure of employment (the Labour Force Survey), there’s no standard definition of “zero hours contract”. In fact, many people may not be aware that they are on one.

But the ONS says that the common theme among this type of arrangement is that the contract doesn’t guarantee a minimum number of hours of paid work for the employee.

How many people are on zero hours contracts?

In 2000, an estimated 225,000 people were on zero hours contracts (although the term wasn’t widely used). That figure fell steadily for two years, but began to creep up again through the 2000s.

When the Conservatives took office in 2010, 168,000 people were employed on these terms. That number rose gently until 2012, when there was a sudden leap from 252,000 at the end of 2012 to 585,000 the following year.

That sharp rise has continued, and by the end of 2016, just over 900,000 people were on zero hours contracts – four times the number in 2000.

Why are more people on zero hours contracts?

One thing to bear in mind is that the Labour Force Survey, which interviews 40,000 people around the country to estimate trends in employment, relies on people’s own descriptions of their working patterns.

The ONS says this can potentially skew the data for a few reasons. They point out that many people may not even know that they are on zero hours contracts, which could mean the Survey under-reports the true number of people in this situation.

On the flipside, they also note that the term “zero hours contract” has become more widely-recognised in recent years, which may account for some of the increase in reported cases. The ONS say that they can’t accurately measure the effect of people becoming more aware of the term.
So the accuracy of reporting processes may partly explain the recent surge.

Isn’t this about the gig economy?

We’ve heard a lot in recent years about the so-called “gig economy” as companies like Uber, Deliveroo and TaskRabbit have grown. The RSA defines the gig economy as “the trend of using online platforms to find small jobs, sometimes completed immediately after request”, and estimates that 1.1 million people carry out gig work in the UK.

But it’s not quite the same as a zero hours contract. People in the gig economy are paid per task performed – be that providing a lift, delivering a meal or completing a chore – whereas employees on zero hours contracts are paid per hour of work carried out.

That said, people on zero hours contracts may also “top-up” their incomes with work in the gig economy.

Women and young people are more likely to be on zero hours contracts

• According to the ONS, 52 per cent of employed women are on zero hours contracts.
• The likelihood of working on a zero hours contract is higher if you’re young: 34 per cent of workers aged 16-24 don’t have guaranteed working hours, compared to 12 per cent of the rest of the population.
• 18 per cent of people on zero hours contracts are in full-time education.

Are zero hours contracts necessarily a bad thing?

Many commentators claim that zero hours contracts mean that workers have little or no job security. The Trades Union Congress, which represents around 5.8 million workers in the UK, says zero hours contracts allow bosses to treat workers like “disposable labour”.

A spokeswoman for the TUC said in March this year: “If you’re on a zero-hours contract you have no guarantee of work from one day to another. Put a foot wrong and you can be let go in a heartbeat. Turn down a shift because your kid’s sick and you can be left with little or no work.”

They cite research suggesting people on zero hours contracts are paid around a third less than those on standard contracts.

But there are some people who benefit from zero hours contracts. For example, the ONS points out that the large number of young people on zero hours contracts who are also in full time education might be explained by the fact that this arrangement is more flexible than standard working patterns, and allows employees to adjust their hours around their other commitments.

Philippines' anti-U.S. leader Duterte tells Tillerson

Philippine President Rodrigo Duterte (C) gestures as he delivers a speech during the State of the Nation Address (SONA) on the Joint Session of the 17th Congress at the House of the Representatives in Quezon city, metro Manila, Philippines July 24, 2017.

Karen Lema-AUGUST 7, 2017

MANILA (Reuters) - Philippine President Rodrigo Duterte called himself a "humble friend" of the United States on Monday, taking a break from his notorious hostility towards Washington to grant a warm reception to visiting U.S. Secretary of State Rex Tillerson.

Duterte's often profanity-laden tirades against the United States has become his trademark during his year-old presidency, but he appeared happy to meet Tillerson, who was in Manila to attend a regional security meeting dominated by North Korea's missile tests, and maritime squabbles.

"I am happy to see you ... and you have come at a time when the world is not so good, especially in the Korean peninsula, and of course, the ever nagging problem of South China Sea," Duterte told Tillerson at the presidential palace.

"I know you're worried there, because you also have domestic problems ... We are friends. We are allies," said Duterte.

"I am your humble friend in Southeast Asia," he said.

The maverick leader makes no attempt to hide his grudge against the United States, which he has repeatedly chided for what he says is a history of hypocritical foreign policy, and for treating the Philippines like a dog.

He last year announced to China his "separation" from Washington, has complained about being given "hand-me-down" U.S. military hardware, and once invited American investors jittery about his remarks to pack their bags and leave.

But Duterte's biggest anger was directed at former President Barack Obama, whose administration spoke out against his signature war on drugs, a fierce crackdown that has killed thousands of Filipinos.

Duterte's warm words for Tillerson indicates Philippines-U.S. ties under U.S. President Donald Trump may be in better shape.

Though Duterte still vents about Washington, he has spoken positively about Trump, who praised him for doing "an unbelievable job on the drug problem".

Trump in an April phone call told Duterte he would invite him to the White House.

But when a U.S. lawmaker recently said he would try to block that, Duterte said he would never go to the United States because "I've seen America and it's lousy".

Duterte said he and Tillerson discussed "many things" on Monday, but he did not give details.

The defence treaty alliance between the two countries remains strong and U.S. forces have been providing the Philippines with technical assistance to fight militants allied with Islamic State. He last year repeatedly threatened to eject U.S. military trainers and advisers.

Asked prior to his meeting if helping the Philippine military meant the United States was endorsing the government's bloody anti-drugs campaign, Tillerson said the two were unrelated.

"I see no conflict, no conflict at all in our helping them with that situation and our views of other human rights concerns we have with respect to how they carry out their counternarcotics activities," he said.

Editing by Martin Petty and Richard Balmforth

A cop stopped a car for speeding — then pointed a gun at a passenger for more than 9 minutes

This video, edited for brevity by The Post, shows the July 26 traffic stop where a Campbell, Calif. police officer pointed his gun at a man for more than nine minutes. (ViralHog)

By Amy B Wang August 6 at 4:43 PM

A video taken during a traffic stop in California is drawing debate over the officer’s decision to keep his gun pointed at the passenger for more than nine minutes.

The stop took place last Wednesday morning along U.S. Route 101, south of San Jose, after an officer noticed a car pass him going 85 mph, according to the Campbell Police Department.

After stopping the car for speeding, the officer requested the driver’s license and additional paperwork. The driver and passenger spent several minutes looking for the paperwork before the officer walked back to his motorcycle to write a citation, police said.

It was at that point their stories diverged. According to police, the passenger began reaching “under his seat.”

“It is not clear why the passenger chose to reach under the seat since the officer was not requesting any other paperwork,” Campbell police said in a statement. “Unfortunately, the passenger’s unexpected movement towards the bottom of the seat, caused the officer to perceive a threat and draw his handgun.”

However, a man sitting in the vehicle’s passenger seat — the target of the officer’s gun — maintained throughout the incident that he had simply been reaching for some papers on the floor to try to find the vehicle’s license and registration, as requested.

A video that apparently was recorded by a woman in the car begins as the male passenger is expressing incredulity that the officer has pulled a gun.

“Wow,” the passenger says in the video, laughing. “We’re looking for the f—ing paperwork, bro. Oh my God.”

“I understand that,” the officer replies. “Don’t move, all right?”

[Father ‘utterly terrified’ after trooper points gun at his 7-year-old during traffic stop]

The passenger sounds indignant as his hands remain on his lap. “Why are you still pointing that gun at me, bro?” he asks the officer. “Why are you still pointing the gun at me, though? Record this sh-t. Why are you still pointing the gun at me, bro? My hands are right here.”

“I understand,” the officer says.

“No, you don’t understand,” the passenger protests, as the officer tells him to relax. “No, I’m not going to relax. Get the f—king gun off me.”

A woman in the car asks the officer: “Is that really necessary? His hands are both out.”
The officer says that it is necessary as he waits for backup to arrive, eliciting another round of protests from the vehicle’s passengers. For several more minutes, they remain at an impasse, with the passenger muttering periodic complaints as music plays in the background. The entire time, the officer’s gun is trained on the man.

Toward the end, the officer relays something through the radio and the passenger begins protesting again. At one point in the video, the officer mentions that there had been a screwdriver on the floor of the car.

“Why are you trying to make this bigger than it is, bro?” the passenger says. “We complied with everything you asked for.”

[A threatened officer had an instant to shoot — or not. Police want you to watch him decide.]

The video lasts a little more than nine minutes total, and the officer’s gun is pointed at the male passenger the entire time. Police said in a statement the officer had to wait longer than usual for backup to arrive “and provide assistance in safely resolving the situation.”

“We understand that it is never a comfortable position to have a gun pointed at you, regardless of whether it is a police officer,” police said. “Unfortunately, the length of time that the officer’s gun was drawn lasted much longer than normal based on his location.”

Police said the traffic stop was resolved amicably.

“In the end, the officer had a conversation with the passenger of the vehicle explaining his actions and why the gun was pointed at him,” police said. “The passenger indicated he understood why it happened and actually apologized to the officer. Both the driver and the passenger were issued citations and were allowed to leave.”

However, the video was uploaded to Facebook last Saturday with a caption that suggested there may not have been as much understanding as police thought. (Note: The video contains profanity.)
“CAMPBELL COP IS A B—-!!!!!!!!!!” wrote a Facebook user named “Feo Mas” who identified himself as the passenger in the video. “(He) pulled out a gun cuz I reached for paperwork he asked for.”

A week later, the video had amassed nearly 2 million views on Facebook, as well as tens of thousands more on YouTube. Online, a debate raged: Several people defended the police officer and said they felt the passenger should have remained quiet, while others were outraged at how long the officer had trained his gun on the passenger despite the man’s hands being visible at all times.

Police departments are under increased scrutiny for violent, often fatal interactions with suspects. So far this year, 594 people have been shot and killed by police, according to The Washington Post’s Fatal Force database. Last year, police shot and killed 963 people.

[FIRED/REHIRED: Police chiefs are often forced to put officers fired for misconduct back on the streets]

The Facebook user who posted the video did not respond to an interview request sent by Facebook Sunday.

The Campbell Police Department said in a statement it was aware of the video circulating online, as well as the thousands of comments surrounding it. Police also cited an officer-involved shooting that had taken place in nearby Los Banos, Calif., as an example of the “unfortunate reality” that people sometimes attack police.

“As an agency, we can understand the response to the Facebook video, and that is why we have and will continue engaging our community,” police said. “The comments on the Facebook video bring up a lot of different viewpoints about how the officer could have responded differently or used different tactics. Our officers receive a tremendous amount of training on a consistent basis and that training is what dictates our response. This is intended to protect our officers as well as those they come in contact with.”

Police said they had reviewed footage from the officer’s body cam, which included the beginning and end of the incident not shown in the Facebook video. The department did not release any footage from the officer’s camera and did not immediately respond to an email Sunday.

“We are thankful that this incident resolved itself with no one getting injured and hope that this additional information provides clarification,” police said.


Cleve R. Wootson Jr. contributed to this report.

Australian teenager in hospital after sea bug attack

The 16-year-old is staying in hospital for another night-Sam Kanizay was seen immediately at hospital

"Sam is very positive," said his father.-JARROD KANIZAY

3 August 2017

An Australian teenager is recovering in hospital after being bitten by multiple "mite-sized sea critters".

Sam Kanizay, 16, found his feet and ankles covered in blood after soaking his legs in Melbourne's Brighton Beach on Saturday evening.

Jarrod Kanizay said his son arrived home with what "looked like a war injury" and that his legs would not stop bleeding.

The family are seeking expert opinion to identify the flesh-eating bugs.

Marine biologists have said they were likely to have been sea fleas, tiny scavenging marine animals.

WARNING: This article contains a close up image of the injury.

After a tiring football game on Saturday evening, the 16-year-old decided to soak his legs in the cold bay near his home.

Speaking to the BBC's World Update radio show, Sam described feeling pins and needles in his legs after standing waist-deep in dark cold water for about half an hour.

After shaking off what he thought was sand coated around his ankles, he walked across the beach before looking down and realising that his feet were "covered in blood".

"It bled for ages, and it's still seeping blood now," he said.

"It looked like a war injury... like a grenade attack. It was really bloody," his father told BBC News.

"We got him in the shower but as soon as we did that the blood kept re-appearing," said Mr Kanizay.

"It wasn't clotting at all. It just kept bleeding and bleeding."

After two local hospitals could not identify the cause of the multiple pin-prick injuries, the Melbourne father decided to investigate and went back to the beach.

"I collected these strange creatures from the same spot last night by trapping them in a net and standing in the water myself," he said.

"We got thousands of these little mite-type bugs and they've been sent on to experts."

Mr Kanizay said he hoped the sandy-coloured mites would not scar his son, and he is expected to make a full recovery.

"We are just waiting on the experts to tell us what they are and how they behave and why this happened."

Marine biologist Dr Genefor Walker-Smith, who saw some of the samples, told Australia's Herald Sun newspaper that the bugs were probably lysianassid amphipods, or sea fleas.

"It's possible he disturbed a feeding group but they are generally not out there waiting to attack like piranhas," she said.

Experts have said such cases are very rare and that there is no reason for alarm.

Rehabilitated LTTE cadres hounded by Police – Parents

By Mirudhula Thambiah-2017-08

Families of several persons arrested on suspicion of involvement with the 'Aava' group have filed a complaint with the Human Rights Commission (HRC) in Jaffna. They claim that their sons have been arrested on baseless allegations following recent incidents blamed on the Aava group. Incidents of sword attacks have been reported in the North recently, including attacks on Policemen.

The families of those arrested however, said that the Police had arrested their children alleging that they were members of the Aava group. The Human Rights Commission has said it will look into the complaints.

The sword attack in Kopay, Jaffna, on 30 June brought in changes to the security plan for Jaffna city. Security has been beefed up in the city and the presence of Special Task Force (STF) personnel was prominent in main parts of the city.

On 30 June two Police constables were seriously injured in a sword attack by an unidentified gang in Kopay, Jaffna. The attackers had come on four motorcycles.

The constables were on their way to investigate a complaint in Koppay area when they were attacked by the sword-wielding gang. They were admitted to the Intensive Care Unit (ICU) of the Jaffna Teaching Hospital. One Policeman was subsequently transferred to the Mannar Hospital and the other to the Police Hospital.

Initial investigations have revealed that the armed group of about 12 persons had fled the scene immediately after the attack. The two Policemen were not armed at the time of the incident. Reinforcements from Kopay were rushed to the scene to assist the injured officers. Police have intensified investigations and launched a man hunt to arrest the suspects.

An ex-LTTE cadre is believed to be the leader of the Aava gang. Six other gang members have also been identified.

On Tuesday 1 August Police arrested a 20-year-old youth from Nallur and a 23-year-old youth from Manipay in connection with the attack. They were produced before the Jaffna Magistrate who ordered them remanded until 10 August pending further inquiries.

On Thursday 3 August Police arrested two 18-year-old suspects in connection with the incident. Police Media Spokesman SP Ruwan Gunasekara said Jaffna Magistrate on Friday 4 August granted Police permission to hold them in custody for 3 days pending further inquiries into their suspected involvement in the attack.

Inspector General of Police (IGP) Pujith Jayasundara visited Jaffna on 31 July to assess the ground situation personally. He also visited the two injured Policemen who had been transferred to the Jaffna Teaching Hospital.

Several Special Police Units were later deployed in and around Jaffna following instructions from the IGP. Meanwhile, Military Spokesperson Brigadier Roshan Seneviratne told Ceylon Today that armed forces personnel have not been deployed to beef up security in Jaffna as yet.

But IGP Jayasundara later announced that security in Jaffna will certainly be reinforced with personnel from the armed services and the STF being drafted into special service there.

The IGP told religious leaders and Jaffna citizens at special meetings with them in Jaffna that the Police had taken into custody two wanted suspects who were LTTEers who had not gone through the rehabilitation programme. He added that between 14 to 15 persons had come by motorcycles to carry out the attack. "We are taking one by one according to the law. The public has to support us to make this mission a success," he said.

He added that terrorism had not been completely eliminated from the country and attempts made by the LTTE organization to stage a comeback should be negated.

"Even if we say we have eliminated terrorism from the country, no one can be sure that the seeds of terrorism had been removed completely. It is true that the weapons used by the terrorists were handed over in large numbers to the government but it doesn't mean all the weapons had been handed over," he said.

He also said that the mindsets of some of the former LTTE cadres had not changed because of the rigid training they had received.

"We have to put an end to this now. The Police and the STF have ensured that security is tight in Jaffna, but we need your assistance as well. There should be an effective relationship between the Police, State officials and the people to overcome this problem," he said.

He added that "some extremists and organizations are attempting to paint a wrong picture of the situation in the North for petty gain, using some media institutions. This is how the LTTE made its entrance initially. We shouldn't allow this to succeed."

Media spokesman for Crusaders for Democracy (CFD) Ganeshalingam Chandralingam alias Thulasi, representing the former LTTE members, said that linking militant ex-LTTE cadres with the current crime wave in the North will reflect negatively on the LTTE internationally.

"1,2000 ex-LTTE members have been released by the President after rehabilitation. These activities have mentally affected these ex-militants who are already facing various challenges in the society," he said.
Meanwhile, the Chairman of the Northern Provincial Council C.V.K. Sivagnanam said that all LTTE members should not be tarred with the same brush simply because a few of them are involved in such criminal activities. He added that the Provincial Council had failed to reform and support ex-LTTE members in the post-war period due to lack of resources.

Opposition Leader of the Council, S. Thavarajah also condemned the blame being attributed to all of the 12,000 LTTE cadres for these incident , adding that the Council should take on the responsibility of solving the issue.

The Perceptions Of The Sinhalese Should Also Be Understood

By C.V. Wigneswaran –AUGUST 6, 2017

Justice C.V. Wigneswaran

The perceptions of the Sinhalese too should be understood.

Many Sinhalese identify the Tamils of North and East with the recent Tamil immigrants from South India during British times during the past 200 years or so. They forget that the Tamils of the North and East occupied our Island even before the birth of Buddha. There had been waves of immigrants from India who added to the indigenous Tamil populations.

The Sinhalese are allergic to the term federalism since the politicians of both communities have created the belief that federalism is separation or federalism leads to separation. Both ideas are incorrect. Federalism joins together disparate entities of people. This perception of the Sinhalese that Federalism is separation and/ or leads to separation has stood in the way of reconciliation.

The Sinhalese have another wrong perception that Sri Lanka is the land of the Sinhalese. Long before the Sinhalese language was born out of Pali, Tamil and indigenous dialects, the Tamil Dravidians have been occupying this land for centuries. Lots of our Tamil leaders would shudder to say these truths for fear they would hurt the feelings of the Sinhalese. By not informing the truth we are consolidating the wrong perceptions fed into the Sinhalese mind.

Chief Minister Wigneswarn’s address on 6th August at 12.30 pm at the District Secretariat, Jaffna:

Hon’Co – Chairman Mavai Senathirajah, Hon’ Members of Parliament from Great Britain, Members of Westminster Foundation for Democracy, Hon’Members of Parliament, Hon’ Members of the Northern Provincial Council, Mr. Vethanayahan, District Secretary, Jaffna, High officials of the Centre and the Periphery, my dear brothers and sisters,

While welcoming the Hon’Members of Parliament from Britain heartily let me register our appreciation of the Westminster Foundation for Democracy for arranging this important meeting.

We need to share the experiences of others when we are ourselves involved in Reconciliation and Reconstruction. Reconciliation is mind oriented while Reconstruction is physical.

Hence it is necessary for those who are earnest in bringing about Reconciliation in Sri Lanka to appreciate the part that “perceptions” play in our activities. Even our friends from Great Britain may not be quite aware of our perceptions. The majority community and others have their own perceptions with regard to themselves and others. We have ours.

Let me state them for clarity.

Firstly let me state the perceptions of the Tamils of North and East in Sri Lanka. The Tamils of North and East of Sri Lanka do not consider themselves as minorities. They consider themselves as the majority in the North Eastern Province for more than 2000 years. It is in the last 100 years that intrusions and incursions have been made into  the terrain of the Tamil speaking by people from elsewhere.

The people of the North and East were Hindus from pre Buddhist times but some of them took to Buddhism a few centuries after Christ but rejected Buddhism and went back to Hinduism later. Though Buddhism was rejected by the Hindu Tamils, Buddhist places of worship were left in tact unharmed. Those who were Buddhists in the North and East were Tamil Buddhists. There were no Sinhala Buddhists at that time. In fact the Sinhala Language came into being only in the 6th century A.D.

Next the Tamils of the North and East opt for a Federal Constitution to preserve their language, religions as well as their culture, tradition and terrain. They seek internal right of self -determination on the basis of their individuality preserved for centuries.

They seek the merger of North and East since the Tamil speaking people must preserve their identity and individuality .

The perceptions of the Sinhalese too should be understood.

Many Sinhalese identify the Tamils of North and East with the recent Tamil immigrants from South India during British times during the past 200 years or so. They forget that the Tamils of the North and East occupied our Island even before the birth of Buddha. There had been waves of immigrants from India who added to the indigenous Tamil populations.

The Sinhalese are allergic to the term federalism since the politicians of both communities have created the belief that federalism is separation or federalism leads to separation. Both ideas are incorrect. Federalism joins together disparate entities of people. This perception of the Sinhalese that Federalism is separation and/ or leads to separation has stood in the way of reconciliation.

The Sinhalese have another wrong perception that Sri Lanka is the land of the Sinhalese. Long before the Sinhalese language was born out of Pali, Tamil and indigenous dialects, the Tamil Dravidians have been occupying this land for centuries. Lots of our Tamil leaders would shudder to say these truths for fear they would hurt the feelings of the Sinhalese. By not informing the truth we are consolidating the wrong perceptions fed into the Sinhalese mind.

Therefore I would say proper understanding of who we, viz. the Sinhalese and the Tamils, are and our history and reference to our roots and appreciation of same would go a long way in creating the ideal ambience for reconciliation.

Read More

China to H’tota – India to Colombo

 Aug 06, 2017

After China was handed over operations of Hambantota port, India has expressed interest to gain operational responsibilities of Colombo port, reports say.

Government sources say India previously showed an interest about the oil tanks in Trincomalee and an economic zone in the area. Now, it is focusing its attention on the eastern supplies terminal of the Colombo port.

Indian authorities are holding talks with development strategy minister Malik Samarawickrema, who has agreed to their suggestion in an unofficial manner, say the sources.

Meanwhile, JVP leader Anura Kumara Dissanayake told the media recently that the SLPA had developed the eastern supplies terminal at a cost of Rs. 10,800 million. However, the economic committee led by the prime minister had decided to sell an 85 per cent stake of the terminal, while retaining only 15 pc of its shares.

But, president Maithripala Sirisena vowed at the 38th anniversary celebration of SLPA recently that the terminal would not be sold for any reason.

Reports say India is displeased over China’s entry to the scene at Hambantota port and raised its concerns with both government ministers and leaders of the joint opposition. Thereafter, Namal Rajapaksa said the neighbouring India would be in difficulties after the government got a Chinese company’s involved to handle the strategically important H’tota port. The JO is trying to win over India by taking advantage of the divisions within government ranks over this matter, and has even been contacted by Indian spy services. That is why government ministers have said a foreign intelligence service was behind the JO’s sabotaging of the parliamentary debate on the issue.

However, the government says it is not opposed to attempts to pacify India. In view of the Colombo port’s South Asia Gateway Terminal being given to Australia and international container terminal jetty to China, a handover of the eastern terminal to India will not happen. If that happens, the state’s role in the port’s operations will be completely weakened, and there will be strong worker opposition. Therefore, the government wants to get Indian involvement in the Trioncomalee oil tanks complex and official level talks with India in that regard will take place.

Kashyapa Kotelawala

Sri Lanka: Chinese presence in Hambantota

Turn island into a playground for global forces from RAW, CIA, Mossad, MI5, KGB and others.

by Latheef Farook-Aug 6, 2017

China needs Hambantota port to protect its Indian Ocean sea route to ensure its growing trade with Africa and uninterrupted supply of oil. However, to Sri Lanka it is a national disaster with unprecedented consequences for generations to come. To a war battered and debt-ridden country like Sri Lanka, with corrupt politicians and equally corrupt bureaucracy, Hambantota port project, involving billions of dollars of loan, was unnecessary and disastrous especially in the context of the island’s collapsing economy.

( August 6, 2017, Colombo, Sri Lanka Guardian) In the aftermath of the collapse of the former Soviet Union in December 1979, the west led by United States was busy with their wars in the Middle East to create Greater Israel while China began entering African countries, concluding agreements and undertaking development projects besides finding markets for its products.

As a result, China’s trade with Africa, at around ten billion dollars in 2002, reached around 200 billion dollars in 2006. China’s four trillion-dollar trade and seven million barrels of daily oil is transacted through the Indian Ocean sea route.

Thus the Indian ocean has become indispensable to China. However, there were fears that this sea trade route can be choked by blocking mainly Malacca Strait by hostile powers.

To overcome this threat China tied up with its longstanding trustworthy partner- Pakistan and started building an alternate trade route as part of an ambitious 46-billion-dollar China-Pakistan Economic Corridor-CPEC project.

The unique CPEC project connects China and Pakistan to the sea through the quickest route. Under this overall program China intends to build a web of networks such as the Southern Silk Road, the Central Asia Silk Road, the 21st Century Maritime Silk Road and the CPEC.

It could be a pivot to China’s One Belt, One Road (OBOR) concept that aims to connect 60 countries on the Asia and European land mass.

One of them was linking the strategically important Pakistani port of Gwadar in the Persian Gulf to China’s Xinjiang region through a vast network of highways and railways, upgrading and expanding infrastructure and overhauling of the transportation infrastructure, sea ports, imports oil and gas pipeline. This land route, shortens distance with the Gulf market by 10,000 kilometers, and it is bound to change the entire geo politics of the region

One should not forget that one of the main reasons why the now collapsed Soviet Union dispatched troops to Afghanistan was to gain access to warm waters of Persian Gulf.

Thus, the development of the strategically located port of Gwadar and a modern airport there also bound to raise concern from Gulf sheikhdoms, Tehran, Moscow to Washington, London, Paris, Tel Aviv and New Delhi.

China also developed its own strategy for the Indian Ocean by setting up a series of ports in friendly countries along the ocean’s northern seaboard from Pakistan, Sri Lanka and Bangladesh. It was in this context one should view the importance of Hambantota port for Chinese and how Sri Lanka was roped in.

The Chinese government is also planning a canal across the Isthmus of Kra, in Thailand, to link the Indian Ocean to China’s Pacific coast – a project on the scale of the Panama Canal. This could further tip Asia’s balance of power in China’s favor by giving China’s expanding navy and commercial maritime fleet easy access from East Africa to Japan and the Korean Peninsula.

Simultaneously China is cultivating its relations with countries of the region through aid, trade and defense agreements. One important factor pushing China to build alternative routes is the fact that Indian navy, soon to be the third largest in the world after those of the United States and China, will function as an antidote to Chinese military expansion.

Pakistan

Pakistan’s only coastline is on the Indian Ocean and it is vital for trade and energy supply besides preventing India from dominating the areas closest to Pakistan.

India’s ambitious program to expand its influence on land and sea from Iran to Thailand, India cannot view CPEC positively. India, as openly declared by -BJP leaders has its own ambition to stretch its borders from Afghanistan to Thailand.

United States

One of the biggest Challenges United states is facing is in the Indian Ocean where both China and India are emerging as the major maritime and economic powers posing challenge to US’s decades of hegemony.

It is common knowledge that USA is manipulating regional states to push countries away from Chinese Camp to obstruct China’s expansion in the South China Sea as well as in East China Sea. US does not want the region to be dominated by any single state because that would seriously jeopardize its long term economic interests as well as disturb the balance of power in the region.

This is specially so in view of the shifting of economic center from the west to the east. If controlled by any [Asian] nation, key choke points in the Indian Ocean, including the Strait of Malacca, the Strait of Hormuz, and Bab el Mandeb, could tilt the balance of trade further towards Asia.
In the Indian Ocean region, the US also has naval presence in Bahrain, Djibouti and, Diego Garcia and engages in exercises with various African, Asian and Middle Eastern countries along the Indian Ocean coastline.

Under the new growing Washington, Tel Aviv and New Delhi axis, U.S. is courting India to assign the lead role in the Indian Ocean, which is unacceptable to both China and Pakistan. In fact, India’s cozying up to powers that China is suspicious of, compels China and Pakistan to strengthen their alliance further. China-Pakistan strategic naval partnership centered on Gwadar will scuttle the Indo-U.S. ambition of dominating the Indian Ocean.

Europe

Europe also has strong economic and security interests in the Indian Ocean. European countries are working to obtain rights to mine the seabed of the Indian Ocean for valuable metals, with some foreseeing a rush in the coming years. In addition, European countries have substantial fishing interests; Some reports estimates they harvest 48 Percent in the Indian Ocean.

Middle East despite its vast resources, military and economic power is in turmoil due to on going US led European-Israeli wars and the dictators installed in power by the west serve them obediently.

As rightly pointed out by research analyst Salman Rafi Sheikh” Indian Ocean has become the hub of political, strategic and economic activities because of the presence of conventional and nuclear vessels of the major powers in the area and because of its own economic and strategic significance.

One columnist pointed out that Indians and the Chinese are likely to enter a dynamic great-power rivalry in these waters, with their economic interests as major trading partners locking them in an uncomfortable embrace. He added that what is becoming obvious as things unfold is that no single state would be able to dominate the region singularly; therefore, a sort of multilateral set up will have to be established whereby each country can “equitably” pursue its goals.

It was in the context of these rivalries one needs view Chinese presence in Hambantota with its own port and airport.

Liberalisation and Crony Capitalism

A recent trade union protest by Ceylon Petroleum Corporation workers in Kolonnawa

2017-08-07

Negotiations and allocations for the 2018 budget are underway. Prime Minister Ranil Wickremesinghe states there will be another round of liberalisation with the budget. 

Trade unions are mounting struggles against the privatisation-push and policies that favour the wealthy. And the Govt’s response is baton charges, water cannons, tear gas and even the military to run essential services.   

Corruption continues as the dominant discourse on the economy as both the Government and the Joint Opposition accuse each other of ransacking state resources. However, successive governments are continuing with the same economic policy trajectory, and for that matter, fighting hard to take forward the very same projects such as the port city, SAITM, Uma Oya and the Hambantota port. Economic policy priorities, including the consequences of financialisation, trade liberalisation and privatisation that are largely missing in the debates in the public domain.   
The current Govt accuses the Rajapaksa regime of crony capitalism and claims only its liberalisation push will ensure economic prosperity. But is capitalism ever free of cronyism? And how does liberalisation affect society?  

 
Political economic continuities

Governments may change, but there are longer-term continuities in the workings of state and capital that are important for analysing the political economy of a country. The lopsided investment in urban and other infrastructure, the promotion of financial institutions, the marketization of essential services and the expanded import of goods including luxury items, over the course of decades transform the economy. The political memory of such developments is short, as rhetoric and personalities dominate debates on the economy.   

The current UNP-led govt is attempting to show the history of its liberalisation antecedent in positive light. The UNP’s landslide victory in the elections of July 1977 initiated an era of open economic reforms. A month later in August 1977, anti-Tamil riots signalled the turn towards decades of ethnic violence and state repression. Draconian measures such as the Prevention of Terrorism Act and emergency rule came along with such liberalisation. Trade unions were crushed following the July 1980 strike. Inequalities drastically widened within the population and Colombo-centred uneven development characterised the economy.   

The lesson we can draw from our history, as from around the world, is that liberalisation not only leads to economic disparities but also violence and repression. If it is not repression of the working and rural classes, it is attacks on minorities. The state and its repressive apparatuses are often mobilised to unleash such violence.   

Capital and State

The capitalist class in Sri Lanka was historically weak compared to Western countries. Many of the state services towards some redistribution of wealth, including free healthcare and education, were consolidated during times when a range of class interests could influence the state. This was also the case in many other post-colonial societies where the modern state did not evolve in tandem with capitalist development. Rather, the state structures in those colonised countries were a creation of colonial power.  

During the last four decades, the open economy with the influence of donors and the global finance capital set the economic trajectory. During this period, the weak Sri Lankan capitalist class in tandem with powerful external actors

 
During the last four decades, the open economy with the influence of donors and the global finance capital set the economic trajectory. During this period, the weak Sri Lankan capitalist class in tandem with powerful external actors have largely determined state policies on the economy.   

The Sri Lankan state’s relationship to capital in recent times increasingly looks like the dynamics in modern western societies. In the Communist Manifesto of 1848, Marx and Engels describe the relationship of modern western states to their capitalist class, the bourgeoisie, as follows:   
“Each step in the development of the bourgeoisie was accompanied by a corresponding political advance of that class. An oppressed class under the sway of the feudal nobility… the bourgeoisie has at last, since the establishment of modern industry and of the world market, conquered for itself, in the modern representative state, exclusive political sway. The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.”   

The times ahead are worrying with the liberalisation push. The working people should prepare for resistance in the face of further repression

Indeed, financialisation, free trade, privatisation and a singular focus on increasing profits, have become the primary role of the state as it manages the affairs of capital in Sri Lanka. These market oriented policies will definitely undermine the lives of the working people, and it may even undermine some businesses, but the state serves the overall interests of domestic businesses and global capital.   
Market to the fore

In this context, liberalisation in essence involves the state surrendering more and more of its economic functions to the market. In fact, the state’s resources and repressive arms are used to promote the market. And that is what the current Govt is seeking to do. Furthermore, to differentiate itself from the Rajapaksa regime, it is labelling the latter as crony capitalist.   

Now crony capitalism became a widely used term in the West during the Asian Economic Crisis of 1997, about the relationship of the political class controlling the state to businesses. The claim was that if it was only up to the market, such economic crisis would not happen, and that any recovery from such crisis should be through the market mechanism alone. Ultimately, the citizens of those Asian countries paid dearly as global capital pillaged those countries after the crisis; state debts were paid for by the people and assets were sold for a song to meet the conditions of the donor agencies.   
Remarkably, the Western Economic Crisis of 2008 did not lead to the label of cronyism, not even when tremendous funds were put forward by the Western states to bail out major banks on the verge of bankruptcy due to speculation. Crony capitalism then is a derogatory term used by Western powers. It is neo-colonial term used against developing countries to further pry open their markets, as happened in South East Asia after the crisis.   

The UNP government pushing forward liberalisation may want to be forewarned. That after any future crisis, caused by rising imports with increased trade and capital flight with financialisation, it too may be labelled as crony capitalist.   

Liberalisation accelerated by the Govt will inevitably lead to dispossession of peoples’ livelihoods and hard won state services. As markets are promoted with state subsidies and support for business, under the guise of Public Private Partnerships, it will further increase inequalities in the country.   
The Joint Opposition stands exposed by policies of the previous regime it is trying to legitimise. The formal opposition, TNA, has shamefully succumbed to white-washing state repression against strikers. All these actors, in different ways are statist in their thinking, and are only concerned about the common affairs of capital.    The times ahead are worrying with the liberalisation push. The working people should prepare for resistance in the face of further repression.