The economics of war
by Harry Davidson, Ph. D.
-Guest Columnist-
The fact that so many Blacks and whites
were killed on Sept. 11, 2001 understandably touches the emotions of all
people. However, we must look beyond emotions to achieve greater
understanding. The perpetuation of terrorism can be compared to rival
gangs committing a series of large scale "drive-bys" that kill innocent
people. Gangs don�t commit drive-bys for strictly emotional reasons.
Gangs play on the emotions of potential members so as to recruit the
soldiers they need to secure and defend "drug turf and the economics
involved." Likewise, we must decode words like foreign policy to
determine the U.S.�s real economic interest in the Middle East and the
Caspian Sea regions.
We can ill-afford to send our sons, daughters and grandchildren to
war without understanding. When you analyze the misinformation the media
is engaged in, what rings clear is that the U.S. is as determined to be
involved as the radical Islamic groups are determined to rid themselves
of U.S. and Western powers out of the Middle East and the Caspian Sea
Region.
The reason is obvious when you consider that the region is important
to world markets as a result of the large oil and gas reserves that are
being developed�some of the largest reserves in the world are in this
region. The alternatives to exporting gas and oil involve the interest
of the world�s major players. Foreign policy has become code words for
oil.
In 1979 the Soviet Union invaded Afghanistan and the United States
financed Osama bin Laden and the Taliban to run the Soviet Union out.
Shortly thereafter, the U.S�s interest in dictating policies in the
region became clear. The oil wealth of the Caspian Sea region has
resulted in competition between corporations to get the contracts to
develop this potential, and between nations to determine the final
export routes.
On Oct. 7, 2001 the Bush administration notified the UN that the war
on terrorism may extend beyond Afghanistan, even if Osama bin Laden is
killed or captured. We are told to be ready for a long, drawn out
campaign, the likes of a cold war. Afghanistan is strategically located
as a military base to be used to control the region. The war on
terrorism is the latest episode in the struggle for oil power.
Michael Tanzer, in his book "The Sick Society: An Economic
Examination" (1971), refutes the "accident theory" as an explanation for
America�s involvement in wars. He views America�s involvement as a part
of a pattern of wide spread foreign involvement stemming basically from
U.S. economic expansionism. The corporate-controlled media promotes the
notion that America is engaged in a moral crusade to protect the world
from tyrants.
In the book, "Oil Power", Carl Soberg (1976) states that the
political power backed by oil is commensurate with its economic and
social importance. Oil is at the root of the power of all governments
and politics. The oil industry selects presidents and influences both
the State Department and America�s foreign relations. The historical
Federal Trade Commission�s secret report exposed a cartel of American
oil operations in the Middle East, which included criminal indictments
of the major oil companies for cartel operations in the Middle East,
involving higher-ups in the government of the United States.
Michael Tanzer suggests that America�s economic interests, rather
than military security, determines U.S. foreign policy. According to
Tanzer: The power of the corporate community to influence foreign policy
decision makers and decisions, along with the general harmony of
interest among economic, military, and political expansionists, is
sufficient to make economic interests the propelling force of U.S.
foreign policy. Since 1969, earnings on all U.S. private foreign
investments amount to 25 percent of the after tax profits of all
corporations. Oil constitutes over 60 percent of all U.S. foreign
investments.
On Oct. 30, 1998 the Board of Amoco Oil approved its $61.7 billion
acquisition by British Petroleum. The plan is to construct a Caspian Sea
pipeline route to transport oil from the Caspian Sea into Southeast
Europe. British Petroleum indicated that a $3.5 billion oil pipeline is
not justifiable without more oil or larger subsidies. In May of 1998
Iran announced plans for a major pipeline from the Caspian Sea into
Europe. In August 1998 the United States intensified efforts to quietly
put pressure on the former Soviet states to accept a U.S. version of the
East-West pipeline and to forgo any relationship with Iran.
On October 30, 1998�the same day of the B.P. acquisition�the UN
Security Council refused Iraqi demands to lift sanctions. The next day
Iraq cut off the inspections for chemical and biological weapons. The
United States and Britain retaliated with a warning of possible military
strikes to force Iraq into cooperation. Five days later the UN Security
Council condemned Iraq�s actions as a violation of resolutions. Within
two weeks of the B.P. acquisition, Clinton had deployed a strike force
to the gulf area. The continued military crisis in the gulf area stems
from predictions that a major oil crisis would occur between 1990 and
1992.
OPEC controlled 75 percent of the non-Communist world�s known oil
reserves. Two-thirds of those reserves were in the Persian Gulf region.
Saudi Arabia ranked first in the control of the world�s oil reserve,
Kuwait ranked second and the Soviet Union third. The United States was a
distant ninth. Historically, Middle Eastern leaders that challenge the
expansion of Western oil tycoons into their regions have been demonized.
In 1990, in an attempt to control 54 percent of the world�s oil
reserves and the global economy, Saddam Hussein invaded Kuwait, and
threatened to push on into Saudi Arabia. America demonized Saddam
Hussein and further economic embargoes were imposed. The goal of the
1990 embargo against Iraq was to starve the Iraqi people into
overthrowing President Saddam Hussein. When the plan failed it was
followed by military intervention. The 1991 Persian Gulf incident was
not about controlling "Satan," it was about control of the Kuwait oil
fields. In 1998, more economic embargoes and finally military
intervention was employed in an attempt to destroy him. Saddam Hussein
is currently ranked second on the U.S. Most Wanted list.
Economics is the underlying motive for most wars. During World War II
America prospered from European dependency on American weapons and
technology. Following the war, under the Marshall Plan, corporate
executives were placed into senior government posts. This initiated the
first major massive U.S. economic foreign intervention program.
Between 1948 and 1952 the Marshall Plan financed almost $2 billion in
European oil imports, primarily supplied by the five leading U.S.
international oil companies. The Marshall plan allowed for large-scale
outlets for post-war discoveries of low-cost Middle Eastern crude oil.
Ninety percent of a shipments value was clear profit. America intervened
in Iran in the early 1950s. Iran had been the exclusive reserve of the
British oil industry. In 1951 when Iran nationalized the Anglo-Iranian
Oil Company, the U.S. government and leading American oil companies
staged an effective worldwide boycott of Iranian oil exports and the CIA
overthrew the Iranian government. Following this overthrow of the
Iranian government, forty percent of the former Anglo-Iranian Oil
company shares went to the five leading U.S. international oil
companies.
The countries having the most abundant oil reserves are Saudi Arabia,
Iraq, Iran, Abu Dhabi, Kuwait and Libya. The Iranian leader Ayatollah
Ruhollah Khomeini was demonized when he emerged as a threat to oil
interests in the late 1970s. When Colonel Gamal Abdel Nasser attempted
to unify the Arab world�to control oil�he fell into disfavor with
America. Libyan leader Muammar Gadhafi was Nasser�s ardent disciple.
During the post-1972 era, Gadhafi gained control of oil in the Middle
East and brought the Western world under the submission of OPEC.
In 1986, America demonized and targeted Gadhafi, who followed
Nasser�s opposition to the America oil tycoons. Whereas the horror of
Sept. 11, 2001 touches the emotions of all Americans, we must look
beyond our emotions to achieve a greater understanding of war.
(Dr. Harry Davidson, Ph.D. is co-chair of the Legislative Education
Committee of the Association of Black Psychologists. He also is author
of "Some-body�s Trying To Kill You: Vol. II," and "The Economics of
Death." )
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