Best-selling journalist Antony Loewenstein travels across Afghanistan, Pakistan, Haiti, Papua New Guinea, the United States, Britain, Greece, and Australia to witness the reality of disaster capitalism. He discovers how companies such as G4S, Serco, and Halliburton cash in on organized misery in a hidden world of privatized detention centers, militarized private security, aid profiteering, and destructive mining.
Disaster has become big business. Talking to immigrants stuck in limbo in Britain or visiting immigration centers in America, Loewenstein maps the secret networks formed to help corporations bleed what profits they can from economic crisis. He debates with Western contractors in Afghanistan, meets the locals in post-earthquake Haiti, and in Greece finds a country at the mercy of vulture profiteers. In Papua New Guinea, he sees a local community forced to rebel against predatory resource companies and NGOs.
What emerges through Loewenstein’s reporting is a dark history of multinational corporations that, with the aid of media and political elites, have grown more powerful than national governments. In the twenty-first century, the vulnerable have become the world’s most valuable commodity. Disaster Capitalism is published by Verso in 2015 and in paperback in January 2017.
Vulture capitalism has seen the corporation become more powerful than the state, and yet its work is often done by stealth, supported by political and media elites. The result is privatised wars and outsourced detention centres, mining companies pillaging precious land in developing countries and struggling nations invaded by NGOs and the corporate dollar.
Best-selling journalist Antony Loewenstein travels to Afghanistan, Pakistan, Haiti, Papua New Guinea and across Australia to witness the reality of this largely hidden world of privatised detention centres, outsourced aid, destructive resource wars and militarized private security. Who is involved and why? Can it be stopped? What are the alternatives in a globalised world? Profits of Doom, published in 2013 and released in an updated edition in 2014, challenges the fundamentals of our unsustainable way of life and the money-making imperatives driving it. It is released in an updated edition in 2014.
Four Australian thinkers come together to ask and answer the big questions, such as: What is the nature of the universe? Doesn't religion cause most of the conflict in the world? And Where do we find hope?
We are introduced to different belief systems – Judaism, Christianity, Islam – and to the argument that atheism, like organised religion, has its own compelling logic. And we gain insight into the life events that led each author to their current position.
Jane Caro flirted briefly with spiritual belief, inspired by 19th century literary heroines such as Elizabeth Gaskell and the Bronte sisters. Antony Loewenstein is proudly culturally, yet unconventionally, Jewish. Simon Smart is firmly and resolutely a Christian, but one who has had some of his most profound spiritual moments while surfing. Rachel Woodlock grew up in the alternative embrace of Baha'i belief but became entranced by its older parent religion, Islam.
Provocative, informative and passionately argued, For God's Sake, published in 2013, encourages us to accept religious differences, but to also challenge more vigorously the beliefs that create discord.
After Zionism, published in 2012 and 2013 with co-editor Ahmed Moor, brings together some of the world s leading thinkers on the Middle East question to dissect the century-long conflict between Zionism and the Palestinians, and to explore possible forms of a one-state solution.
Time has run out for the two-state solution because of the unending and permanent Jewish colonization of Palestinian land. Although deep mistrust exists on both sides of the conflict, growing numbers of Palestinians and Israelis, Jews and Arabs are working together to forge a different, unified future. Progressive and realist ideas are at last gaining a foothold in the discourse, while those influenced by the colonial era have been discredited or abandoned. Whatever the political solution may be, Palestinian and Israeli lives are intertwined, enmeshed, irrevocably.
This daring and timely collection includes essays by Omar Barghouti, Jonathan Cook, Joseph Dana, Jeremiah Haber, Jeff Halper, Ghada Karmi, Antony Loewenstein, Saree Makdisi, John Mearsheimer, Ahmed Moor, Ilan Pappe, Sara Roy and Phil Weiss.
The 2008 financial crisis opened the door for a bold, progressive social movement. But despite widespread revulsion at economic inequity and political opportunism, after the crash very little has changed.
Has the Left failed? What agenda should progressives pursue? And what alternatives do they dare to imagine?
Left Turn, published by Melbourne University Press in 2012 and co-edited with Jeff Sparrow, is aimed at the many Australians disillusioned with the political process. It includes passionate and challenging contributions by a diverse range of writers, thinkers and politicians, from Larissa Berendht and Christos Tsiolkas to Guy Rundle and Lee Rhiannon. These essays offer perspectives largely excluded from the mainstream. They offer possibilities for resistance and for a renewed struggle for change.
The Blogging Revolution, released by Melbourne University Press in 2008, is a colourful and revelatory account of bloggers around the globe why live and write under repressive regimes - many of them risking their lives in doing so.
Antony Loewenstein's travels take him to private parties in Iran and Egypt, internet cafes in Saudi Arabia and Damascus, to the homes of Cuban dissidents and into newspaper offices in Beijing, where he discovers the ways in which the internet is threatening the ruld of governments.
Through first-hand investigations, he reveals the complicity of Western multinationals in assisting the restriction of information in these countries and how bloggers are leading the charge for change.
The blogging revolution is a superb examination about the nature of repression in the twenty-first century and the power of brave individuals to overcome it.
It was released in an updated edition in 2011, post the Arab revolutions, and an updated Indian print version in 2011.
It recently had two screenings in Pakistan, Islamabad and Karachi, and the Q&A sessions that I participated in via Skype are below (forgive the poor sound/picture quality). Audiences wanted to discuss the film itself but also how it related to Pakistan itself. There’s various examples, such is here, of how the corporate brand is increasingly dominating the country including after natural disasters.
Journalist Antony Loewenstein spoke with Ben Norton about his book “Disaster Capitalism: Making a Killing out of Catastrophe,” at McNally Jackson Books in New York City on February 23, 2017.
Loewenstein discussed his reporting on the privatization of wars and detention facilities for refugees and migrants in Afghanistan, Greece, Australia, the UK, and the US.
The two also examined the refugee crisis, and how Western wars have fueled this refugee crisis. They highlighted the links tying together war, detention, mass incarceration, the military-industrial complex, and the prison-industrial complex — and how private prison and security companies are profiting from it all.
The journalists also addressed the rise of far-right and neo-fascist movements around the world, from Donald Trump to Marine Le Pen to Golden Dawn, and how these forces will be incapable of solving the structural global problems exacerbated and reinforced by corporate profits:
“Many ongoing crises seem to have been sustained by businesses to fuel industries in which they have a financial stake,” he explains. “Companies that entrench a crisis and then sell themselves as the only ones who can resolve it.”
Loewenstein, a columnist for the Guardian, traveled the world in order to understand just how multinational corporations profit off of such chaos. The Australian-born yet decidedly cosmopolitan journalist devotes the meticulous and daring tome to reporting on the foreign exploitation he witnessed in Haiti after the 2010 earthquake and the destructive mining boom in Papua New Guinea, along with seemingly dystopian prison privatization in the U.S., predatory for-profit detention centers for refugees in Australia and ruthless austerity in Greece.
In the book, Loewenstein expertly shows how corporate control of not just the domestic, but also the global political system has led to a drastic “erosion of democracy.”
A quote he chooses as the overture sets the tone for the ensuing pages. “It is profitable to let the world go to hell,” warns scholar Jørgen Randers, a professor of climate strategy at Norwegian Business School, while railing against “the tyranny of the short term.” This quote succinctly summarizes exactly how disaster capitalism operates.
The concept of disaster capitalism is derived from a similar work, “The Shock Doctrine: The Rise of Disaster Capitalism,” an influential 2007 book by journalist Naomi Klein. In some ways, “Disaster Capitalism” can be seen as a sequel to Klein’s book, yet Loewenstein’s formidable work stands out in its own right.
Salon sat down with the journalist to discuss one of the more explosive controversies he uncovers in his book: how the U.S. war in Afghanistan was privatized.
Loewenstein spent time in war-torn Afghanistan, as well as neighboring Pakistan, researching for “Disaster Capitalism.” His compelling recounting of his experiences paints a picture of a crisis-stricken world in which virtually everything has been privatized, in which private military companies, or PMCs — 21st-century warlords — exercise more control over countries than their own inhabitants.
A slew of Western multinational corporations quite familiar to Americans appear throughout the chapter, including Northrop Grumman, DynCorp, Halliburton and more.
The personal interactions Loewenstein has with military contractors on the ground are some of the most fascinating. A British PMC managing director the journalist met in Kabul, whom he refers to simply as Jack, bluntly admits his corporation “survives off chaos.”
Predicting future U.S. wars in Africa, Iran and Korea, the corporate military executive tells Loewenstein, “If we can make money, we’ll go there.”
“I’m my own government,” Jack boldly declares.
“Disaster Capitalism” bolsters Loewenstein’s growing body of important work. Among his other books are “Profits of Doom: How Vulture Capitalism Is Swallowing the World,” a kind of 2013 prequel to “Disaster Capitalism”; “The Blogging Revolution,” a 2008 investigation of how bloggers around the world challenge their oppressive governments; and the best-selling “My Israel Question,” an exhaustive 2007 account of Israel’s crimes against the Palestinians, and a profound and intimate exploration of the author’s Jewish identity.
For his previous books, Loewenstein traveled widely, from Palestine to Iran, from Saudi Arabia to China, from Cuba to Egypt and beyond. For “Disaster Capitalism,” Loewenstein went even further. When Salon contacted him to schedule an interview, the intrepid journalist seemed every time to not only be in a different country, but even on a different continent.
This is the first in a two-part review of Loewenstein’s reporting in “Disaster Capitalism.” Another piece will be devoted to Loewenstein’s findings in Haiti, a small country that has been virtually taken over by Western NGOs. Loewenstein spoke with Salon about both little-discussed yet tremendously important issues.
Jack, the British PMC managing director you met in Kabul, said “we don’t call ourselves mercenaries.” Are they mercenaries? Should they be called that?
Not all private security interests in Afghanistan are mercenaries; many men are just security guards protecting embassies or Western interests. But mercenaries are a little-reported aspect of the war, either directly engaged in killing or capturing suspected insurgents (a key failing of the Western war in the country has been its insistence on designating any opponent of the conflict as “Taliban” and therefore “terrorist”) or training Afghan forces to do the same thing, often inflaming conflicts in local villages.
You call imperialism “the dirtiest word in modern English” and note, “There is not a country I visited for this book in which the legacy of imperialism does not scar the landscape and people.” You also point out that “there were often more contractors than soldiers in Afghanistan.” Jack said it is cheaper for countries to use PMCs than it is to put their own boots on the ground.
Do you see this as an outsourcing of imperialism and neo-colonialism, if you will? Is this how war will work in the future?
The U.S. government, along with its many allies, likes using private assets to further geo-political interests. The initial motivation when invading Afghanistan was revenge for 9/11, but this quickly morphed into a messy project to control the nation and partner with a corrupt central government and warlords across the country.
The reason I use the term “imperialism” to describe the wars in Afghanistan, Iraq, Libya and beyond — along with U.S.-backed autocratic partners in the Middle East, South America, Asia and Africa — is that there’s no other way to describe attempts to secure energy reserves and economic influence in the modern age.
War has always worked this way, but the inclusion of globalized private entities removes one more level of accountability. Today in Afghanistan there are around 30,000 contractors working for the Pentagon alongside the U.S. military and Special Forces. And the Pentagon won’t acknowledge how many soldiers are truly fighting ISIS in Iraq.
Can you talk more about Afghanistan’s enormous natural resources, the TAPI pipeline, drugs, etc.? This is little discussed. Why do you think that is?
During both the Soviet and American occupations of Afghanistan, huge discoveries of natural resources occurred. There is an estimated U.S. $1-4 trillion of untapped minerals, oil and gas and yet most of it is unreachable due to security concerns and corruption.
Natural resources will not sustain Afghanistan after most of the Western aid dries up, and neither the U.S. government nor Afghan authorities have any answers for long-term sustainability (the proposed TAPI pipeline crossing Pakistan, Afghanistan, India and Turkmenistan is ambitious but prone to problems).
Drug cultivation has soared during the U.S. occupation. Too many Western reporters have framed the Afghan war as simply between U.S. forces and the Taliban when in reality Afghanistan has a complex history that never tolerates long-term occupation.
You write about the “military-enforced bubble,” in which the foreign occupying army is completely out of touch with the locals. An Afghan translator told you the U.S. “only understood force.” Can you expand?
A constant refrain I heard in Afghanistan, during my visits there in 2012 and 2015, was the inability and unwillingness of U.S. and foreign forces to listen to the Afghan people. It’s one reason the U.S. relied on faulty intelligence to understand what Afghans were thinking about their presence.
As the security situation deteriorated after 2004-2005, and U.S. forces falsely framed any Afghan who opposed the occupation as Taliban, the U.S. used a failedcounterinsurgency program (designed by David Petraeus and Australian David Kilcullen) that inflamed Afghans.
There has never been accountability for this plan, including by the countless Western journalists seduced by U.S. military talking points.
You talk about the relationships between the U.S. military, USAID and private companies, and say “military and humanitarian work were all too often fused in the post-9/11 world.” Can you comment?
A key component of USAID in the post 9/11 world is using the military to deliver its goals. This fundamentally misunderstands the importance of maintaining neutrality when delivering aid.
The U.S. government’s SIGAR (Special Inspector General for Afghanistan Reconstruction) regularly reports on the U.S. $110 billion spent in Afghanistan on so-called nation building since October 2001, and how USAID was regularly used as a mask for a corporate and military agenda across the country.
Where else is the private security industry growing?
The definition of private security is expanding to include the growth of private armies in often unregulated and chaotic places (from Iraq to Afghanistan and Libya to Syria). South African mercenaries were working in Nigeria against Boko Haram and Colombian forces operated in Yemen thanks to the United Arab Emirates.
You write “the Bush administration saw its ‘war on terror’ as a boon for the private sector.” Has the Obama administration has done the same?
Post 9/11, the Bush administration saw an opportunity to implement an extreme neoconservative agenda with the support of its friends in the private sector. They claimed it would save money and be more efficient but the reality was uncontrolled mercenaries and private security in countless war zones.
When Barack Obama was a candidate for President in 2007, he pledged to change this out-of-control contracting since 9/11. However, nothing has improved since he took office due to a number of factors including failing campaign finance laws and Congressional inertia to punish corporations breaking the law.
You conclude the chapter saying, “we created chaos.” What do you think the legacy is of the now 15-year U.S. occupation, especially now, with the rise of ISIS and the resurgence of the Taliban?
The Taliban now control more of Afghanistan than at any time since October 2001. President Obama has now pledged to maintain an indefinite occupation and the U.S. military claims U.S. forces will need to stay in the country for decades to support a failing Afghan state.
The presence of ISIS only complicates the picture, especially for Afghan civilians.
The longest war in U.S. history has not achieved any of its stated goals and the Afghan people, often forced to choose between the Taliban and a U.S.-backed warlord, often pick the former. That’s the legacy of the U.S. war.
Ben Norton is a politics staff writer at Salon. You can find him on Twitter at @BenjaminNorton
At one telling moment in this unnerving and convincing book, Antony Loewenstein quotes the managing director of one of the many private military companies (“PMCs”) working in Afghanistan. The United States, says “Jack”, “is not capable of running empires”. Instead, western governments outsource imperialism to people like him in a variety of organisations – Halliburton, G4S, Serco and Capita are the best known of a long list – which make their money from incarceration, the “processing” of asylum seekers or the provision of private “security” in conflict zones. No longer able to sustain itself by selling dreams, capitalism now thrives on the management of nightmares. Even the provision of disaster relief is transformed into profit.
Disaster Capitalism takes us on a journey around the victims of this system: Greece, Afghanistan, Haiti and Papua New Guinea. It then turns its attention to the centres of outsourcing such as the US, the UK and Loewenstein’s native Australia. It charts the consequences of a double crisis: turmoil in the economic system following the financial crash, and the migration that is the unsurprising effect of the wars in Iraq, Libya, Afghanistan, Syria and elsewhere. Greece, at the heart of the eastern Mediterranean, has been the victim of both at once. Loewenstein notes that despite Syriza’s promises to challenge austerity, the state’s hands are tied not only by the troika, but by a wave of popular xenophobia, supported by a supine media. So, instead, non-state forces are stepping in: he visits the medical centres set up by leftwing volunteers to help the victims of both crises, and, more depressingly, the Greeks-only food handouts organised by Golden Dawn.
Similarly, in his account of the “relief” that followed the Haitian earthquake of January 2010, Loewenstein argues that the people of Port-au-Prince were able to organise themselves to respond to the devastation – “makeshift clinics were established”, and “young men and women worked to clear the rubble with their bare hands”. After this, however, the international response was quickly monetised, or, to quote the typically direct words of then-US ambassador to Haiti, Kenneth Merten, “the gold rush is on”. The response to the disaster combined outsourcing to the largely USAID-funded contractor Chemonics, with American and Korean companies building factories to produce consumer goods for the western market while paying workers well below the already minuscule Haitian minimum wage. A new development was the intervention of celebrity-backed NGOs. The philanthropic efforts of Wyclef Jean, Sean Penn, Bill Clinton and Bill Gates come in for particularly sharp criticism as unaccountable and aloof. All this activity rests, according to Loewenstein, on a perception of Haitians as incapable of looking after themselves, a view his account attempts to challenge. As Pierre Justinvil, the deputy mayor of Cap Haitien, puts it, surveying a housing development built by a Minnesota-based company, “I personally, with my own hands, have just built a whole school for less than the cost of one of the houses, and more quickly.”
The irony is that Britain, the US and Australia are now inflicting on themselves many of the devastations they have visited on other countries. This is visible in the US’s immense privatised prison system, providing a convict labour force which, the author estimates, is bigger than the Soviet Gulag at its early 1950s height. The militarised response to the Ferguson protests last year are another example: the tooled-up, armour-plated local police “looked like they were equipped to fight insurgents in Iraq”. And they were: a programme had sold off excess military equipment, provided in the first instance by private companies, to local police departments.
In the UK, Loewenstein tracks the results of a decision to open up emergency accommodation for asylum seekers to our beloved volume housebuilders: “Taylor Wimpey, Barratt Homes, Persimmon, Bellway, Redrow, Bovis, Crest Nicholson”. Meanwhile, Britain has become a major exporter of outsourcing, with G4S and Serco being worldwide leaders in the field.
Disaster capitalism comes across as a thuggish operation, largely based on low-wage, low-conditions work where sensitivity to the often vulnerable people being “cared” for is not a major priority. At a nightclub full of PMC staff in Afghanistan, Loewenstein is “reminded of a comment made by a human rights advocate in Kabul, that if you go to a party in the city, ‘a quarter of the men will have no necks’”, a consequence of widespread steroid use. Everyone is dehumanised by what another outsourcer calls “the human warehousing business”.
One major strength of the book is its interviews. We meet a succession of nice, apparently open spokespeople for outsourcers and mercenaries, and even a well-mannered physicist and active member of Golden Dawn. He lets them speak with their own breathtakingly cynical words. Loewenstein is unashamedly partisan, though, especially in the chapter on the Bougainville province of Papua New Guinea, where a mass revolt removed the privatised mining corporation Rio Tinto from the area, leaving it reliant – by popular demand, it would seem – on subsistence agriculture. The corporations are coming back to Bougainville, and Loewenstein gives a sympathetic account of the forces trying to stop them, noting the horrendous ecological record of the companies in question. These divisions can be a little too neat.
After a particularly harrowing account of Australia’s “Pacific solution” to migration (ie, put them all on an island), Disaster Capitalism concludes with a rather pro forma rousing address, insisting that “resistance is never futile” and pointing to those places – small French towns, the city of Hamburg – that have managed to reverse outsourcing and privatisation. That’s fair enough, but as the accounts from Haiti and Papua New Guinea make clear, the system Loewenstein describes thrives by presenting itself as the only possible conduit for development and change. By placing, say, Rio Tinto on the one side and subsistence farming on the other, the choice becomes either virtuous tradition or hyper-exploitation. A model of development that could challenge these ruthless practices would make Disaster Capitalism a lot more convincing, but as an eyewitness account of the vultures’ activities around the world, it does provide a useful warning.
• Owen Hatherley’s Landscapes of Communism is published by Allen Lane. To order Disaster Capitalism for £12.99 (RRP £16.99) go to bookshop.theguardian.com or call 0330 333 6846. Free UK p&p over £10, online orders only. Phone orders min p&p of £1.99.
I’ve been interviewed by US Rolling Stone magazine by journalist Elisabeth Garber-Paul:
Australian journalist Antony Loewenstein recently made the 30-hour trip from South Sudan to New York City after spending the better part of a year in the world’s newest nation, which he calls both “broken” and “a pretty fascinating place.”
“It’s easily dismissed as just another African civil war, and there’s elements of truth in that,” he says of the situation in that country, which has been embroiled in ongoing armed struggles since 2013, after winning independence from Sudan in 2011. “But there’s also a lot of complicity in how the world, especially the U.S., helped the country get born four years ago, and it’s all fallen apart.”
The way wealthy nations and their private interests influence and profit from poorer nations is the subject of a new book, Disaster Capitalism: Making a Killing out of Catastrophe, which Loewenstein published this fall. But South Sudan, despite its devastation, didn’t even make it as a main subject in the book. “I could have chosen South Sudan, where resource exploitation is rampant,” he says. “I could have chosen Mongolia, where in the last year it’s had the fastest growing economy in the world because of resources, and the vast majority of people are simply not benefitting.”
Instead, he singled out a few specific countries – Australia, the U.K. and the United States on one side; Afghanistan and Pakistan, Greece, Haiti and Papua New Guinea on the other – to detail just how many entities profit from natural and man-made crises across the globe. “The reason I started this book five years ago was my belief that there was too little discussion in the Western press of corporations behaving badly, not in just developing countries, but our own countries,” he says. From for-profit prisons, to bloated NGOs, to economic development projects designed to benefit multinational corporations, he argues that a handful in the West are thriving off the pain of the global poor.
The problem, he says, is that we’ve accepted this as the global norm. The Bush Administration wasn’t necessarily motivated by potential profit when it invaded Afghanistan and Iraq – but the administration happily helped private companies like Halliburton reap the rewards when the contracts came up. Loewenstein says that President Obama has continued down the same path: “Only a few years ago, you had the same politicians and intellectuals arguing for a so-called humanitarian intervention in Libya to overthrow Gaddafi. Virtually as soon as that happened, the country descended into chaos.” Now, he says, the same people are supporting the same sort of military solutions in Syria. “This, to me, is deeply problematic. If you don’t look at the last 10 years and wonder if that’s the case, then you have rocks in your head.”
The effects of Western policy decisions have been playing out on a large scale in the recent Syrian refugee crisis, a problem that Loewenstein believes Europe is handling with the same misguided methods that have been employed for the past decade. In the U.K., for example, some of the privatized detention centers that have been criticized by watchdog groups for their treatment of asylum seekers still hold contracts to house incoming refugees, and Loewenstein sees the plans being rolled out across Europe as efforts “to warehouse refugees rather than addressing the root causes of the problem…taking only a tiny percentage of refugees, attempting to send many back to their war-torn nations and spending billions of dollars on surveillance instead of resettlement. It’s a drop in the ocean, and the reason is that there is no serious acknowledgement of the reasons why these people are fleeing” – i.e., wars that have been “fundamentally fueled by Western foreign policy.”
In addition to the book, Loewenstein is working with documentarian Thor Neureiter to make a Disaster Capitalism film, which he hopes to have finished within a year. “The idea behind the film is to use three examples” – Afghanistan, Papua New Guinea and Haiti – to show “how the use of U.S. and foreign aid has not helped those countries, but in fact hindered them,” he says, noting how poorly NGOs tracked the flood of money into Haiti after the 2010 earthquake. “The argument is that exploitation either through resources or aid is the way to bring prosperity to the people,” he says. “But the facts on the ground simply do not bear that out. In fact, the opposite happens and there is massive corruption, insecurity, and violence. And that in turn brings profound resentment.”
Yesterday I was interviewed in London by Aaron Bastani from Novara FM. Perceptive and curious, Novara Media is one of Britain’s most interesting and progressive media outlets. During the interview we spoke about my new book, Disaster Capitalism, the state of the media and funding investigative and independent journalism:
The Australian writer Antony Loewenstein is no stranger to this site. His incisive, courageous questioning of pro-Israel orthodoxy got our attention back in 2007, and he has published two well received books on the subject: My Israel Question, and After Zionism, (which he co-edited with Ahmed Moor, another close friend of this site).
Loewenstein is a bold, energetic journalist, who will go anywhere to report first-hand. His latest book, just out from Verso, is entitled Disaster Capitalism: Making a Killing Out of a Catastrophe, and even experienced world travelers will be impressed by his explorations. Among other places, he visits a remote part of Papua New Guinea, to chronicle a long, little-known struggle between the local people and a big, polluting copper mine, and he spends time in Pakistan and Afghanistan, to explain how Private Military Companies, better known as mercenaries, are making millions off war and misery.
His great strength is that he gets telling details to make stories come alive. Most people know in general that Greece has been suffering under German-imposed austerity, but the truth is more compelling when you read that, “In the heart of Europe, malnutrition was rampant among schoolchildren; a cabbage-based diet was now a reality for many middle-class Greeks.” Even more chilling, a few pages later he describes a 54-year-old man who was lying in the operating room, waiting to have a heart pace-maker installed — until an accountant said he had not provided the necessary documents. (Fortunately, after pressure, the man did have the life-saving surgery the next day.)
Loewenstein’s look at post-earthquake relief in Haiti is particularly useful. Bill Clinton, who co-chaired the international relief effort while reporting to his wife, the secretary of state at the time, promised “to build back better” but characteristically did not follow through. The hundreds of millions of aid went mostly to U.S. and other corporations of doubtful competence, which were “spending too much of their resources on salaries, accommodation, and transport for foreign aid workers.”
Antony Loewenstein travels up to the Caracol Industrial Park in northern Haiti, a cherished pet project of Bill and Hillary Clinton. He discovers, as have other reporters, that the project had evicted 300 small farmers but is years behind schedule, and, as he quotes the Haiti expert Alex Dupuy, even if it is ever finished it “has absolutely nothing to do with creating a sustainable growth economy in Haiti.”
The Haiti Relief Debacle should become an issue in the 2016 U.S. presidential campaign, raising serious doubts about the competence of both Clintons. The first-hand evidence in Antony Loewenstein’s important new book is part of the indictment.
AMYGOODMAN: This is Democracy Now!, democracynow.org, The War and Peace Report. I’m Amy Goodman. When disaster strikes, who profits? That’s the question asked by journalist Antony Loewenstein in his new book, Disaster Capitalism: Making a Killing out of Catastrophe. Traveling across the globe, Antony examines how companies, such as G4S, Serco, Halliburton, are cashing in on calamity. He describes how they’re deploying for-profit private contractors to war zones and building for-profit private detention facilities to warehouse refugees, prisoners, asylum seekers. Now Loewenstein has teamed up with filmmaker Thor Neureiter for an upcoming documentary by the same name that chronicles how international aid and investment has impacted communities from Haiti to Afghanistan to Papua New Guinea and beyond. This is the trailer.
ANTONYLOEWENSTEIN: For three years, I’ve investigated what happens after the spotlight fades from disasters in developing countries. What comes when the money and goodwill ends?
UNIDENTIFIED: This country is like a republic of NGOs. And these people, as employees, they are getting paid very fat salaries.
ANTONYLOEWENSTEIN: Often these natural and man-made disasters create an atmosphere reliant on foreign money.
UNIDENTIFIED: They say first we should bring security, then investment. I say first we should invest, then security will come.
ANTONYLOEWENSTEIN: When aid runs out and most NGOs move on to the next disaster, pro-business policies are created in the name of recovery. This investigation has taken me to the streets of Haiti, the mountains of Afghanistan and the lush forests of Papua New Guinea, where I’ve met the people caught up in a struggle between recovery and the policies that cater to foreign interests.
UNIDENTIFIED: When you talk about disaster capitalism and the capitalists coming in and sweeping up and taking over, they don’t need a conspiracy, because those are the interests that prevail, and they’re going to get their way.
AMYGOODMAN: The trailer for the forthcoming documentary based on Antony Loewenstein’s new book, Disaster Capitalism: Making a Killing out of Catastrophe. Well, journalist and author Antony Loewenstein joins us now in studio, also a columnist for The Guardian.
Welcome back to Democracy Now!
ANTONYLOEWENSTEIN: Thanks for having me.
AMYGOODMAN: It’s great to have you with us, Antony. So, explain disaster capitalism.
ANTONYLOEWENSTEIN: People who make money from misery. So, one of the reasons—I was inspired by Naomi Klein’s book, The Shock Doctrine, and she coined the term “disaster capitalism” in 2007. For me, it was really about deepening and widening that definition. So I focus particularly on Afghanistan, Haiti, Papua New Guinea, U.S., U.K., Greece and Australia. Immigration is a key part of that. So, the fact that—as you said in your introduction, there are key companies—G4S, Transfield, Serco and others—who are very happy about the massive influx of refugees. Warehousing refugees is huge profit-making business. So I was focusing on that, going to these places and actually seeing the effects of that on both immigrants and also those who work in those centers; looking at, say, in Haiti, the issue of aid and development after the earthquake in 2010, which was a key reason why the U.S. government, as WikiLeaks documents showed, were keen for U.S. contractors to make a fortune; in Papua New Guinea, a country near my own country, Australia, a situation where you have massive mining interests—Rio Tinto and others—again, making a fortune from mining and misery. So, for me, it was about making the connections between various different countries and corporations, and saying—I’m not arguing that Afghanistan is the same as Greece, of course they’re different, but ultimately often the same corporations are at play, and the fact that the corporation has become more powerful than the state, which, to me, is a problem.
AMYGOODMAN: I want to ask you about a place some call the Guantánamo Bay of the Pacific. The Manus Island detention center is paid for by the Australian government and run by an Australian contractor, Transfield Services, but located offshore on Papua New Guinea’s soil. The prisoners are not accused of any crimes; they’re asylum seekers from war-ravaged countries who are waiting indefinitely for their refugee status determination. Earlier this year, Democracy Now! spoke to Australian human rights lawyer Jennifer Robinson about Manus Island.
JENNIFERROBINSON: I’ve been to PNG, and I’ve spent times in West Papuan refugee settlement camps, so I can speak with first-hand experience that PNG is not a state that is capable of accepting our asylum seekers and refugees. Ninety percent of these people who come by boat to Australia have been determined to be refugees in the past. The conditions in PNG are terrible. Australia is—it is unlawful for Australia to be continuing to send asylum seekers to conditions the U.N. has found to amount to inhuman, degrading treatment. We are in breach of our international obligations.
AMYGOODMAN: That’s Australian human rights lawyer Jennifer Robinson. Antony Loewenstein?
ANTONYLOEWENSTEIN: It’s a problem. I mean, one of the things also we should also say is there’s Manus Island in Papua New Guinea, but also Nauru, which is a Pacific island. So, Australia for the last years has been sending thousands of refugees to essentially prison camps in these islands, as you rightly say. They run for profit. It was G4S, it’s now Transfield. In a recent Australian Senate report, it was found, clear evidence, that often refugees are being raped and tortured. This is not an allegation, this is a fact. There was one allegation by a guard that he saw evidence of waterboarding. So, ultimately we have a situation where the Australian government, which increasingly, I might add, is being used by the European Union as inspiration in potentially how to deal with their refugee crisis—the key point about the offshore detention camps, and indeed onshore in Australia, is that they’re privately run. And the key problem—it wouldn’t make a difference if it was publicly run. I mean, it shouldn’t be there in the first place. But Australia wants an unaccountable system. Journalists can’t get there, as Jennifer rightly said. You essentially have a—it’s a black site. The journalists can’t get in there, human rights workers can’t get in there. You can visit Manus Island as a tourist, but you can’t get into the center. Nauru charges $8,000 to apply for a visa. And if you don’t get the visa, which you wouldn’t, you don’t get that money back. So, essentially, many Australians—and sadly, I would argue, only a minority of Australians are outraged by this. But the truth is, like in Europe and like in the U.S., after decades in my country have privatized detention camps, sadly, a lot of people regard those people as a threat who need to be essentially seen as silenced and as a number, that’s all. It’s a massive problem, and I write about that in the book.
AMYGOODMAN: I want to go to the larger issue of for-profit prisons. Last month, Vermont Senator Bernie Sanders, the Democratic presidential candidate—
AMYGOODMAN: —introduced new legislation aimed at banning government contracts with private prisons. Sanders said banning for-profit incarceration is the first step to ending the system of mass incarceration.
SEN. BERNIESANDERS: As a first step, we need to start treating prisoners like human beings. Private companies, private corporations should not be profiteering from their incarceration.
AMYGOODMAN: That’s presidential candidate Bernie Sanders, also a senator.
AMYGOODMAN: So he’s introduced legislation.
ANTONYLOEWENSTEIN: So encouraging. I mean, one of the things that is less talked about in the U.S., Jeb Bush, Hillary Clinton, Marco Rubio have taken massive amounts of money from the private prison industry. I’m not saying that their policies are solely based around that, but it’s an important part. In the book, I visit some private detention camps in Georgia, particularly run by CCA, which is the largest American privatized corporation running prisons and detention camps. In these centers, human rights are awful. Healthcare is bad. Food is bad. Mental health is bad. And ultimately, like we see in Australia and the U.K. and elsewhere—
AMYGOODMAN: And CCA is Corrections Corporation of America.
ANTONYLOEWENSTEIN: Indeed, indeed. And ultimately, I think one of the things is, these corporations have no incentive to provide decent care. I mean, that’s the bottom line. Profit, of course, is the most important. So putting aside the rights of refugees and immigrants themselves, what I find also in the book is that the guards who are working in those centers, without proper training, they’re almost by definition going to abuse refugees. That’s part of the problem. I think Bernie Sanders’ call was an important one, but sadly, no other major candidate has come out and agreed. And I think one of the interesting things in the U.S., as we move forward with your presidential campaign, someone like a Donald Trump, who talks, as we know, about potentially getting rid of 11 million undocumented migrants, the private prison industry is very excited about his presidency, and they’re scared of any serious reform in the U.S. One of the things that CCA and GEO Group, the two major companies, talk about in their annual reports are that serious reform—in other words, less people locked up—is bad for business. And they’ve spent over the last 20 years at least $30 million to $40 million. One of the things that comes out in my book, in my investigations, is that this is legalized corruption, that it’s nothing—it’s not illegal for CCA to assist a congressman or woman in their campaign. That’s legal. But the problem is that the result, in state—in state after state in the U.S., is a mass incarceration culture. And sadly, even under President Obama, there’s been no serious look at removing that incentive. I mean, there’s a Congress-approved quota that every single night there are 34,000 refugees locked up in the U.S.—every night.
AMYGOODMAN: “Richard Sullivan”—this is from The Intercept, I believe—”of the lobbying [group] Capitol Counsel, is a bundler for the Clinton campaign, bringing in $44,859 in contributions in a few short months. Sullivan is also a registered lobbyist for the GEO Group, a company that operates a number of jails, including immigrant detention centers, for profit.”
ANTONYLOEWENSTEIN: That’s the nexus, Amy, that I’m talking about in the book, that is—again, this sort of thing is not illegal. It is legal. But the problem is that almost by definition that means that major candidates—Hillary Clinton has said, Jeb Bush, particularly Marco Rubio in his state, as well, has taken massive contributions. And the fact is, without those contributions, the policies would be different, obviously.
AMYGOODMAN: I want to turn to Afghanistan. Wednesday marked the 14th anniversary of the U.S. war in Afghanistan, which began on October 7, 2001. President Obama declared an official end to the U.S. combat mission in Afghanistan last year; however, the U.S. has around 9,800 troops there. And according to Foreign Policy magazine, there are three times as many for-profit private contractors in Afghanistan than U.S. troops, not including the contractors supporting the CIA, State Department, USAID or other government agencies. You have traveled to Afghanistan, Antony Loewenstein, and spoke to some of these contractors. What did they tell you?
ANTONYLOEWENSTEIN: They are worried about the war winding down. For them, they are scared about—I was there in 2012 and also this year in May, in 2015. And one of the things that many of them were saying, both in 2012 and in 2015, is that they realize that the U.S. is winding down its war, but ultimately, as you say, Obama has declared the war finished. It’s been rebranded. The occupation continues. There is now talk about possibly raising troops. The Afghan security forces, which, I might add, were trained by private companies—DynCorp trained the Iraqi security forces and the Afghan security forces, massive failures on both fronts, which has had no impact on DynCorp getting more contracts, I might add. So, ultimately, one of the things in Afghanistan—and the attack on the Kunduz medical center, MSF medical center, goes to the heart of that—there’s a reduction in space for humanitarian actors.
I mean, I was there this year with my film partner, Thor Neureiter. We were looking at what Afghanistan’s likely to look like in the next five or 10 years. And the resource industry is what the Afghan government and the U.S. government talks about. Briefly, there are apparently $4 trillion of resources under the ground in Afghanistan, mostly untapped, including copper. And one of the things we do in our film is go to an area called—in Logar province about an hour from Kabul, which has the largest copper deposit in the world, run by a Chinese company. They are desperate to start mining those resources. And the problem is, in the last years, the U.S. has given hundreds and hundreds and hundreds of millions of dollars to support a resource industry there. So the nexus between private security and mining industry in that country is devastating for the local people.
AMYGOODMAN: I wanted to go to testimony just yesterday in the House. The U.S. commander in Afghanistan, General John Campbell, is pushing to keep more U.S. troops in Afghanistan than under President Obama’s scheduled drawdown, following the Taliban seizure of Kunduz last week. California Congresswoman Loretta Sanchez pressed General Campbell during his testimony to the House Armed Services Committee Thursday.
REP. LORETTASANCHEZ: So, within your own current testimony, let alone the testimony that Mr. Jones brought before you from before, you basically are saying, “I don’t know that there’s a long-term viability for these security forces.” We’re paying the majority of that. How much is the majority? How much money does that mean, to have a force that you don’t believe has a long-term viability?
GEN. JOHNCAMPBELL: Ma’am, if I could—
REP. LORETTASANCHEZ: How much? How much? That’s the question. How much?
GEN. JOHNCAMPBELL: Yes, ma’am. Today, for calendar year ’15, the United States put $4.1 billion to build the Afghan security forces.
REP. LORETTASANCHEZ: $4.1 billion.
GEN. JOHNCAMPBELL: For ’16, $3.86 billion.
REP. LORETTASANCHEZ: Thank you. $4.1 billion.
GEN. JOHNCAMPBELL: Every year we continue to reduce that by gaining efficiencies. We’re not providing infrastructure that—
REP. LORETTASANCHEZ: General, I’ve heard this. I’ve heard this for 14 years.
AMYGOODMAN: This comes as Doctors Without Borders says 24 of its staff members are still missing, following the U.S. airstrike on its hospital in Kunduz Saturday. That’s in addition to at least 22 people who died in the strike, including 12 medical workers, 10 patients, including three children. Antony Loewenstein?
ANTONYLOEWENSTEIN: I mean, what that testimony shows is that the U.S. has spent over $100 billion since 2001. As you say, it’s the 14-year anniversary now. And even the U.S. government itself, SIGAR, which is the sort of the government arm to investigate where money has gone, has found that the vast majority of that has gone to corruption. It’s disappeared. It’s gone to helping a failing mining industry. It’s gone to pay private security. Afghanistan is one of the great disgraces, in some ways, of our time, because, in many ways, the fact that private companies—U.S. companies, Australian companies, British companies—have been used as a replacement for government. One of the things that’s so often ignored, and I talk about this in the book, is that the U.S. routinely was paying, to transport goods from A to B, Afghan security, private security or foreign security to basically give money to pay off insurgents to not hit them, to not attack them. So, really, the U.S. taxpayer is weirdly either comfortable or doesn’t know about the fact that America is fighting a war against insurgents that they’re also paying off to not attack them. It’s a crazy situation, but that’s what’s been happening for years.
AMYGOODMAN: I want to end with Haiti. This year marks the fifth anniversary of the devastating Haiti earthquake that killed, oh, 300,000 people and left more than one-and-a-half million Haitians homeless in what was already the poorest country in the Western Hemisphere. In tent camps housing the displaced, Haitian residents said international donors have left them behind.
CLAUTAIREFENEL: [translated] My message to the international donors is that the money they gave to help the people in Haiti is being put to use for the interest of other people instead. It is used to buy luxury cars, pay for hotels and go to high-priced restaurants paid in U.S. dollars.
EUNICEELIASSAINT: [translated] I don’t see a future here. I can’t hide anything from you. There is no tomorrow. Last night, the children went to bed without anything to eat.
AMYGOODMAN: Lay out what’s happened in Haiti, Antony.
ANTONYLOEWENSTEIN: Soon after the Haiti earthquake in 2010, the U.S. ambassador at the time—WikiLeaks documents showed this—wrote a cable essentially saying that a gold rush is on, a gold rush meaning for U.S. corporations and others. The U.S. has spent billions of dollars there, mostly for U.S. contractors. Most of the money the U.S. has spent there since the earthquake has remained in America. Haitians are not really being trained. Haitians are not really being supported. The solution that the Obama administration gave for Haiti, pushed by Obama, Hillary Clinton, Bill Clinton and Chelsea Clinton, their daughter, were industrial parks—essentially, places that Haitians can get underpaid and not trained to make cheap clothing for Gap and Wal-Mart that you and I maybe, hopefully, won’t buy in the U.S. That’s the solution that the U.S. sees for Haiti.
AMYGOODMAN: You know—
ANTONYLOEWENSTEIN: And many Haitians—sorry—actually also argue that they feel occupied by foreign interests, the U.N. and the U.S.
AMYGOODMAN:Democracy Now! went down to Haiti a number of times before and after the earthquake. And I remember one of those times, President Clinton, he was down in Haiti giving a speech, saying there’s two things he cares about in the world. One is his daughter’s wedding. She was just—Chelsea Clinton was about to get married. And the other is restoring Haiti.
ANTONYLOEWENSTEIN: Well, the legacy of the Clinton Foundation—and I examine this deeply in the book—is utterly appalling. There are example after example of the Clinton Foundation funding a number of centers that have been infected by chemicals, which also, I might add, the Clinton Foundation were investing in failed things after Hurricane Katrina, as well, here in the U.S. Bill Clinton, Hillary Clinton and others—I mean, they’re one example—their solution has primarily been industrial parks. And one of the things that comes out very clearly, the suggestions—and we talk about this in our film, as well—that the solution for Haiti is not to build massive industrial parks to make clothing that you and I can buy in the U.S. The solution is empowering locals. It’s about speaking to locals and saying, “We actually have a solution that empowers you and trains you.” And one of the things that comes out also clearly is that so many Haitians feel pretty pissed off with the fact that so often there’s actually little or no encouragement of them. And ultimately, Haiti really has never been an independent country, Amy. I mean, the U.S. has had involvement there for a hundred years. And many Haitians ultimately feel that they actually really need to separate themselves from the U.S., but America doesn’t actually view that as a viable option. And the book goes into detail about why that is the case. Haiti is seen as too economically viable for America to let it go.
AMYGOODMAN: Finally, where do you see the hope in this dark history of multinational corporations and the plunder of the most vulnerable?
ANTONYLOEWENSTEIN: The hope are hearing local stories. And one of the things I talk about in the book, and we do in the film, is actually say that so many in the media—and I’m obviously part of that, and you are, as well—I know Democracy Now! is an exception to this—but too often don’t report local stories, don’t actually hear local people saying what they want. So when disaster strikes in Haiti, don’t just focus on celebrities like Sean Penn, focus on other people actually there who are doing good work, empower them, pay them, train them. It’s not rocket science how to change this. Ultimately, Haiti’s economic structure, as one example, needs to change, but it’s not going to change with U.S. contractors doing the job.
AMYGOODMAN: Antony Loewenstein’s new book is Disaster Capitalism: Making a Killing out of Catastrophe. This is Democracy Now!, democracynow.org, The War and Peace Report. When we come back, the new U.S. poet laureate. Stay with us.