Attacking the World's Constitutions
Since the 1990s, some 130 countries around the world have revised, amended
or adopted brand new constitutions to accommodate a framework for the sort
of "market democracies" that open up domestic labor, economic sectors and
natural resources for neo-colonial exploitation.
By Sonny
Africa
IBON Features /
August 2005
Posted by Bulatlat
IBON Features--
In the Philippines, it is clear that charter change (Cha-cha) is being
pushed by ideological commitments to "globalization," pressure from
powerful political and economic interests such as the United States (US)
government, and Philippine government officials' sheer political
self-interest.
But Cha-cha isn't unique to the country.
An increasing number of developing
countries is also dancing the Cha-cha,
with the US and other developed nations providing the music.
The impetus behind the wave of global
charter change is economic restructuring in the neoliberal framework. This
entails the removal of restrictions on the movement of capital and goods,
the easing of government regulatory power over the economy and the
transfer of state-delivered services to the private sector.
Reversing Nationalist Provisions
Economic restructuring through
constitutional change is not a new phenomenon. During the waves of
colonization in the first half of the 20th century, the great
empire-building powers unilaterally drafted charters for their colonies or
simply forced them to adopt their colonizers' constitutions.
But the current wave of charter changes
can be traced to the collapse of the Soviet bloc in the late 1980s, which
prompted the Western nations to declare the demise of socialism and the
affirmation of capitalism as the "end of history." The "free market"
became the only option for economic prosperity. Politically, the downfall
of authoritarianism heralded a wave of "pro-democracy" movements
worldwide.
These two pressures resulted in what are
probably the most changes in national constitutions in such a short period
of history. Since the 1990s, some 130 countries around the world have
revised, amended or adopted brand new constitutions. The agenda behind
these changes has been to create the constitutional framework for the sort
of "market democracies" that open up domestic labor, economic sectors and
natural resources for neo-colonial exploitation.
This phenomenon is uncannily reminiscent
of how, during the waves of colonization in the first half of the
20th century, the great empire-building powers unilaterally drafted
charters for their colonies or simply just forced them to adopt their
colonizers' constitutions.
It also reverses the nationalist
constitutions of Latin America, as well as the many post-war independence
constitutions emerging from the anti-colonial struggles and liberalization
movements in the former colonies of
Asia
and Africa .
The most extreme charter changes now are
the US-imposed constitutions of Afghanistan and Iraq as well as the
drastic overhaul of some 25 erstwhile "socialist" constitutions of former
Soviet bloc countries in Central Asia and Central and Eastern Europe.
In Iraq, for example, the US-led coalition
provisional authority (CPA) issued a whole series of laws opening that
country to private investors in blatant violation of international law.
These included Order 37, which reduced
Iraq's corporate tax rate from an estimated 40% to a flat 15%; Order 39,
which allowed foreign companies to own 100% of Iraqi assets outside of the
natural-resource sector and repatriate 100% of their profits out of Iraq;
and Order 40, which allowed banks to set up business in Iraq under the
same favourable terms.
The CPA also privatized 200 state-owned
firms, which produced everything from cement to paper to washing machines,
throwing thousands of state employees out of work.
When Iraqi politicians resisted the
privatization of Iraq's state-owned companies, the US appointed an interim
government that would be bound by an "interim constitution" which
protected the US-favored investment and privatization laws.
The constitution even included a provision
stating that for the duration of the interim government, "The laws,
regulations, orders and directives issued by the Coalition Provisional
Authority . . . shall remain in force" and could be changed only after
general elections are held.
Legal Reform Conceals Economic
Restructuring
Although the focus on constitutional
change has inevitably been political, the driving motive has been to
create the sort of structures and "rule of law" on which market economies
depend.
This link was recently made clear by
Assistant Secretary of State for Western Hemisphere Affairs Roger Noriega,
when he complained that the macro-economic reforms being undertaken in the
Latin American region (such as liberalization of formerly protected
economies to foreign investment and products) were not accompanied by the
creation of "clear, impartial, predictable rules applied impartially to
all."
Less conspicuous but far more numerous are
amendments and revisions with the same objective of deepening the
market-orientation of national economies. Noteworthy of singling out in
Asia are China's amendments in 1988 and 1993 embracing the private sector
and justifying market policies as "building socialism with Chinese
characteristics."
Across Latin America and the
Caribbean,
constitutional public controls over trade, investment and the national
patrimony were rolled back and key economic sectors were denationalized.
In Africa, the "globalizing" presence of IMF-WB stabilization and
structural adjustment programs reined in the nationalist stridency of
post-independence constitutions.
Developed countries have scores of
government or government-funded agencies with substantial "rule of law"
and legal assistance programs. The most prominent of these include the
United States Agency for International Development (USAID), the American
Bar Association Central-Eastern European Law Initiative, the British
Know-How Fund (KHF), the German Technical Cooperation (GTZ), the French
Inter-ministerial Mission for Central and Eastern Europe (MICECO) and the
Dutch Center for Cooperation with Eastern Europe (CCEE).
The US also has considerable projects
through such groups as the Ford Foundation, the Robert Busch Foundation,
the Open Society Institute (with the Constitutional and Legislative and
Policy Institute), and the Civic Education Project (CEP). It also uses aid
coursed through the Millennium Challenge Account (MCA) initiative as an
incentive for developing countries to undertake legal reforms.
Severe Consequences of Charter Change
The social and economic consequences of
neoliberal economic reform, whether implemented through charter change or
in spite of existing constitutional prohibitions, are severe.
Poverty rates and the number of poor in
Africa and the so-called "transition" economies of Europe and Central Asia
have increased between 1990 and 2000. In
China,
rapid growth and wealth creation has created deep income disparities, high
numbers of unemployed workers, horrific working conditions and lost safety
nets for the Chinese working people.
Already weak real gross domestic product
(GDP) per capita growth in Latin America continued to slow down throughout
the 1990s and turned negative in 2000 even as debt service payments, over
the same period, have more than tripled.
Violence is also an inevitable consequence
of neoliberal reforms as joblessness becomes widespread. In
Iraq,
the first major act of former occupation Chief Paul Bremer was to fire
500,000 state workers (most soldiers but also doctors, nurses and
teachers) as part of neoliberal reforms. This has led to an increase in
the armed resistance against US occupation forces.
The neoliberal attack on the world's
constitutions and its severe consequences are the context against which
the debate on charter change in the country should be held. IBON
Features / Bulatlat
BACK TO
TOP ■
PRINTER-FRIENDLY VERSION ■
COMMENT
© 2004 Bulatlat
■
Alipato Publications
Permission is granted to reprint or redistribute this article, provided
its author/s and Bulatlat are properly credited and notified.