Five bailout lessons from Katrina
by Bill Quigley
The US has committed nearly three trillion dollars to the financial
bailout so far. The Federal Reserve has made more than $2 trillion in
emergency loans and another $700 billion has been pledged through
Congressional action. Much more money is coming. Things better for your
community? I didn't think so. Welcome to Katrina world. Despite pledges
of a hundred billion dollars, we are still in deep pain along the Gulf
Coast. What happened? Unless citizens are vigilant and demanding, the
entire US will be subjected to the same forces that swept through the
Gulf Coast after Katrina - spending huge amounts of money and leaving a
second disaster behind.
Despite promises of buckets of bucks, New Orleans still has 60,000
abandoned homes. Media reports say that 75 percent of the abandoned
buildings have homeless people sleeping in them. Public health care,
public education and public housing are all less available and being
thoroughly privatized. Crime is sky high, though we still have 100
National Guard members patrolling our streets.
So, what lessons can be learned from Katrina world that apply to the
financial bailout? First, demand transparency. Insist on knowing how
much money is being spent, by whom it is being spent, who is receiving
it and for what reasons.
Bloomberg News sued the Federal Reserve in November to find out who
received money from the more than $2 trillion dollars in emergency loans
they have given out. The government refuses to release that basic
information. Such an outrage cannot be permitted.
Second, keep a constant watch out for predators. Many interests feast
on the suffering of others. When disaster hits, some see opportunity for
their own private interests. What Naomi Klein calls disaster capitalism
kicks in and the big bucks start flowing out and away from real needs.
Those who are not already picking the bones are circling. It is up to
us to force them away.
Third, people have to participate in the decisions. During and after
a disaster, there is a vacuum of leadership, and those with the most
resources usually rush in, declare an emergency and then go on to make
decisions about what has to be done. Not surprisingly, these folks are
focused on taking care of their own interests first, and often second
and third. We cannot let emergencies be the excuse to avoid democratic
decision-making. Fourth, the human rights of the least powerful must be
made a conscious priority. This is the exact opposite of what happens.
The human right to housing, land, livelihood and freedom from
discrimination must guide the response to the emergency.
Liberation theology calls this the preferential option for the poor.
Year-end bonuses continue while foreclosures increase? The needs of the
poor must take priority over the wants of the rich.
Fifth, insist on gender equity. Experiences show a systematic
violation of the rights of women in every phase of disasters. The
presence, participation and value of the role of women have been
seriously inadequate. Women bear a disproportionate burden of the
effects of poverty.
The human rights of women must be immediately respected, as their
suffering and disrespect continues today.
If our citizens and organizations demand these five principles be
respected and followed, there is a chance that the post-bailout
environment will not end up like the post-Katrina landscape of New
Orleans and the Gulf Coast. Because there is one iron rule in responding
to disaster - once that money is gone, it is not coming back.
(Courtesy: truthout, December 24, 2008) |