March, 30 2009, 02:00pm EDT
For Immediate Release
Contact:
Phone: (202) 223-4975,Email:,coha@coha.org
Global Recession: Protectionism and Diversification in the US and South America
WASHINGTON
- Peru and Chile maintain free market principles and diversification of trading partners
- Brazil, Chile, Colombia and the U.S. implement huge stimulus packages
- Argentina, Paraguay, and Ecuador attempt to protect their economies by imposing new tariffs
- The G-20 summit this April could offer global solution to the crisis
On the other hand, South American nations like Peru and Brazil that have diversified their bilateral trade partners over the last decade, may be less impacted by the global recession. MERCOSUR, UNASUR, ALBA and other South American regional trade agreements could also help to soften the blow on the continent. Nonetheless, much of South America is now experiencing a recession, and the debate on how to most effectively respond to it varies widely among economists.
Those Who Diversify: Chile
At a G-7 meeting in early February, finance ministers maintained an anti-tariff rhetoric and pledged to remain "committed to avoiding protectionist measures." Accordingly, Timothy Geithner, U.S. Treasury Secretary, stated, "all countries need to sustain a commitment to open trade and unfettered investment policies which are essential to economic growth." While some left-leaning governments in South America are erecting trade barriers, Peru and Chile are robustly pursuing their free trade model, with a free trade agreement (FTA) between the two nations having gone into effect on March 1, 2009. Moreover, in conjunction with this agreement, the two countries continue to diversify their trading partnerships. Chile has signed comprehensive FTAs with the US, Canada, the EU, South Korea, Japan, Central America and Mexico.
Peru
Meanwhile, its trade agreement with Australia went into effect on March 6, 2009.
According to Financial Times, Peru's President Alan Garcia signed FTAs with Canada and Singapore in 2008 and expects the pacts to come into effect this month. Peru's trade deal with China should also take effect within the next few months, and agreements with South Korea, Central America, and Japan are currently under negotiation. Their advocates insist that Chile and Peru's economies have benefited enormously from free trade, but a number of area nations and various leftist analysts are moving away from an unalloyed neo-liberal-oriented enthusiasm for this type of approach.
Washington's Approach
The U.S. is also somewhat shifting away from the neo-liberal free trade model. "Our consensus to advance international trade is frayed," explained senator Max Baucus (D-Mont.) at the nomination hearing of U.S. Trade Representative nominee Ron Kirk on March 9, 2009. "Our faith in the international trading system is badly shaken." The Obama administration has vowed to shift U.S. trade policy away from a strategy of signing new agreements to impose tougher labor and environmental standards and position them in the core of the FTA prior to the final passage of trade deals. The Office of the USTR also has issued a statement claiming that trade policy will contain a new element of "social accountability," intending to make the trade pact part of the solution "for addressing international environmental challenges."
In response to the current world economic crisis, however, drawn out trade agreements do not offer a timely or convincing solution to a very real problem. In order to allow for a more immediate impact on the economy, the U.S. along with a number of South American nations have implemented Keynesian economic policies that protect domestic markets and stimulate demand. Proponents of this economic model assert that the solution to a recession is to stimulate a state's economy through a combination of increased infrastructure spending by the government and interest rate reductions. This is exactly what President Barack Obama is hoping to do with the $787 billion economic stimulus package he signed into law on February 17, 2009. Within the U.S., the stimulus package has received criticism for not addressing the finance and mortgage situation, not being big enough and quick enough, as well as neglecting to provide enough stimuli for the private sector, and to protect the public from senior personnel gouging taxpayer funds by means of ill-earned bonuses by ethically challenged financial officers.
Internationally, the biggest criticism regarding trade policy has been the "Buy American" provision. Although Obama amended this language so that Washington would not violate trade agreements and international trade laws, the plan still favors U.S. steel, iron, and manufactured goods for infrastructural projects. While the U.S. will not be found disrupting its trade relations with Canada and Mexico, U.S. steel and iron will be able to maintain their preferences over the largest emerging economies, such as Brazil, India, and China. Some economists fear that if the U.S. is able to close its market from these nations, the affected developing countries may be forced to decide to close their own borders, with their 2 billion or so consumers, to American exports, and thus ignite a trade war. World Trade Organization (WTO) director, General Pascal Lamy remains cautious over the provision. After Obama watered down the language, Lamy said, "We all know the devil isn't in the details, it's in the implementation."
Those Who Stimulate: Brazil
Brazil, Colombia, and Chile are also implementing Keynesian national stimulus packages, though on a much smaller scale when compared to that of the U.S. Brasilia's $281 billion deal is focused primarily on supporting the energy and transportation sectors of South America's largest economy, according to Prabir De of Indian Express Finance. In December 2008, Brazil also announced 2009 tax cuts of 8.4 billion reais (US $3.6 billion), directed primarily at the obligations borne consumers. According to Brazzil Mag, the measure also included a tax reduction provided on the Tax on Industrialized products for the Brazilian auto industry until March 31, 2009. The carmakers agreed to transfer the tax cuts to reduce the prices charged to their customers, making prices for their vehicles considerably cheaper.
Colombia
The Brazilians are not the only South Americans attempting to jump start their economy. Colombia's plan represents the largest annual infrastructure spending in its history. The 55 trillion peso (US$22 billion) stimulus plan includes over 100 electricity, transportation, oil, and sanitation projects, according to Latin Finance. Colombia's economy is predicted to grow less than 2 percent this year, and the stimulus is expected to allow it to weather the storm, according to Carolina Rentaria, head of Colombia's National Planning Department.
Chile
Chile will also break its record for economic stimulus spending this year, as President Michelle Bachelet announced a $4 billion scenario to curtail the effects of the global recession on January 6, 2009. The primary aim of the stimulus is to create the conditions for economic growth as well as to generate 100,000 new jobs. As Davor Luksic of The Americas Society reports, the stimulus focuses on tax rebates and subsidies, such as $1 billion for Codelco, the country's giant state-owned copper producer. The January plan followed a $1.15 billion spending bill, which was passed in November 2008, and was intended to stimulate lending to small businesses and middle-income households. Santiago is also mulling over temporarily cutting the 19 percent value-added tax (VAT) and adding a one-time payment to low-income families as a third economic stimulus, according to a Reuters report.
Although stimulus packages do not include explicit protectionist mandates, such as tariffs and anti-dumping measures, several developing nations have argued that fiscal stimulants and bailouts (especially to large bank and auto bailouts in the U.S. and Europe) may be having an adverse effect on international trade. At a WTO Trade Policy Review Body meeting, developing countries were concerned about large subsidies being made to individual industries, such as U.S. steel fabricators. At the same meeting, Brazilian Ambassador Roberto Azevedo told journalists that protectionism includes more than just controlling imports and raising tariffs. It also includes subsidies and large stimulus packages, which are typically not available to developing nations with limited resources. Azevedo argued that industrialized nations "are increasing the capacity of their industry to compete in a way that developing countries cannot." Since developing nations do not have the funds to implement such large scale supportive measures, their only alternative is raising tariffs.
Those Who Tariff: Argentina
As part of their economic defense strategy, Argentina, Ecuador, and Paraguay have all raised tariffs to protect their domestic markets. In November, Argentina and Brazil lobbied to raise the common tariff of MERCOSUR, the South American regional trade bloc, but Paraguay and Uruguay did not support the overtly protectionist measure. In response, Argentina unilaterally imposed tariffs on a variety of goods including shoes, appliances, farm machinery, processed food, steel, iron and textiles. Buenos Aires in turn was criticized by Brazil, China and Paraguay for its new system of licensing and minimum pricing that it has applied to over 1,000 imports in recent months. The Bridges Weekly Trade News Digest observed that Brazilian manufacturers consider that Argentina's new policies "unfairly discriminate against their products... by delaying shipments for up to 60 days and effectively excluding imports that fail to meet the price requirements." Yang Shidi, economic and commercial counselor of the Chinese Embassy in Argentina also condemned the import restrictions as "discriminatory," in an interview published in La Nacion. Yang went on to assert that the new policies have hurt Chinese producers and are inconsistent with a 2004 memorandum of understanding (MOU) between Argentina and China, which acknowledges China's market economy status.
As a result of Argentina's restrictions and its trade deficit with Brazil, the Paraguayan government announced on March 1, that it will apply certain tariffs to imports from Argentina and Brazil in order to protect its local industry. Paraguay's Finance Minister Dionisio Borda argued that Asuncion's treatment of Argentinean and Brazilian imports would be similar to their respective treatment of Paraguayan imports. Borda stated, "We, too, are going to apply the same measures they have adopted." He assured the interested parties that the measures would "be temporary" and serve as part of the economic recovery plan. Paraguay is also implementing its own "Buy National" campaign similar to the U.S. "Buy American" provision, which will give local Paraguayan goods and services a 70 percent preference, according to Borda.
Ecuador
President Rafael Correa of Ecuador is essentially forcing citizens to "Buy Ecuadoran" products with his newly imposed import restrictions. According to a WTO press release, Quito raised tariffs between 5 and 20 percent on 940 products, including perfume, liquor, shoes, shampoo, grapes, butter, turkey, caramels, cell phones, eyeglasses, sailboats, building materials and transport equipment. As prices of imported goods drastically increased, some argue that buying domestic is now the only practical choice for most Ecuadoran consumers. Correa, however, predicts that the tariffs will have only a minor impact on citizens, because "the poor don't consume perfumes, liquor and chocolates."
Ecuador's new tariffs have been criticized as one of the world's most protectionist responses to the global economic crisis. Gary Hufbauer, of the conservative Peterson Institute for International Economics, argues that no other country has harsher restrictions on imports. Correa said drastic measures were necessary to prevent Ecuador's economy from crumbling, as petroleum prices declined and remittances and earnings on foreign investment plunged. It should be noted that Ecuador is extremely vulnerable in the current situation because it adopted the U.S. dollar as its official currency in 2000 after the country was beset by a withering banking crisis. This prevents Quito from printing its own money. Ultimately, this could prove to be problematic if Ecuador's trade deficit widens because its economy could collapse due to a drainage of U.S. dollars. Correa hopes that the restrictions will keep $1.46 billion from exiting Ecuador's $50 billion economy, according to Jeanneth Valdivieso and Frank Bajak of the Associated Press. Some economists are also calling for the creation of a national currency to replace or supplement the dollar, in order for Ecuador to maintain a more sound monetary policy.
Paraguay
Although tariffs are seen as short term solutions, they can have long term consequences. For instance, some economists argue that tariffs and price controls have the potential to trigger global "trade wars," as witnessed in Paraguay's response to Argentina's imposed tariffs. They also agree that protectionist measures, such as Smoot-Hawley Tariff Act, prolonged the Great Depression longer than may have been necessary. Thus, newly imposed tariffs should only be counted on to provide temporary relief (much like an economic stimulus), and they should be re-evaluated as the beginning signs of a recovery appear.
A Global Solution to a Global Problem
As the economic crisis continues to globalize, South American nations are pursuing various trade deals, implementing economic stimulus packages, and imposing new tariffs in response. All of these individual national efforts seek to soften the blow delivered by the downturn, but it is unlikely that they alone will solve the problem. Latin American stocks have plummeted and the International Labor Organization has issued a warning that 2.4 million Latin Americans shortly could join the ranks of the unemployed this year as a result of the incessant crisis. Nevertheless, the catastrophe extends far beyond Latin America and the entire Western Hemisphere, and thus there is dire need for global collective action. The G-20 summit in London that begins in a few days, offers a good deal of potential to develop a concerted response. At this point, the only thing the world's economies seem to agree on is that the financial regulatory system needs to be reformed, but exactly to what extent, continues to be a serious concern. Developing nations want greater governance over the operation of the international financial institutions, such as the World Bank and the International Monetary Fund (IMF). They also agree that the IMF needs to be rendered more flexible in terms of the conditionalities it imposes on countries receiving financial aid.
Developing nations also fear that they will be "crowded out" by developed nations in terms of access to loans and investment capital. Latin American finance ministers have called for a recapitalization of the Inter-American Development Bank (IDB), currently the largest lender in Latin America for major development projects. The World Bank is proposing a Vulnerability Fund that would similarly focus on infrastructure projects and maintaining adequate financing of schools, health care, and loans for small businesses for low income elements of the population.
The U.S. is also calling for greater financial regulation, while simultaneously calling on the EU to engage in greater government spending and in economic stimulus programs. The EU, much like Latin America, feels as though it is being forced to clean up a mess that originated mainly in the U.S. There is a fear that the G-20 summit will be spoiled due to delegates bringing with them contrasting objectives and with only 24 hours to rush through the chaotic agenda. One can only hope that the world powers listen to the worthy voices of developing nations and work together to overcome the global crisis. If the former don't, the real problems will really begin.
This analysis was prepared by COHA Research Associate Will Petrik
Founded in 1975, the Council on Hemispheric Affairs (COHA), a nonprofit, tax-exempt independent research and information organization, was established to promote the common interests of the hemisphere, raise the visibility of regional affairs and increase the importance of the inter-American relationship, as well as encourage the formulation of rational and constructive U.S. policies towards Latin America.
LATEST NEWS
Columbia Faculty Walk Out Over Student Suspensions, Arrests for Gaza Protests
While expressing gratitude for solidarity actions, Congresswoman Ilhan Omar—whose daughter was suspended—said that "this about the genocide in Gaza and the attention has to remain on that."
Apr 22, 2024
Over 34,000 Palestinians in Gaza have been killed by U.S.-backed Israeli troops, and Columbia University students have been suspended and arrested by New York Police Department officers in recent days for protesting the slaughter—which led to a walkout by the Ivy League institution's faculty on Monday.
The Guardian reported that "hundreds of members of the teaching cohort at Columbia walked out in solidarity with the students who were arrested" while "students put protest tents back up in the middle of campus on Monday after they were torn down last week when more than 100 arrests were made."
Yonah Lieberman, co-founder of IfNotNow, a Jewish-led U.S. group that organizes against Israel's apartheid, declared: "Solidarity with these faculty members. Shame on establishment politicians and agitators who are smearing the anti-war protest at Columbia as anything other than what it is: a courageous stand for freedom and peace."
Naureen Akhter, a founding member of the New York-based group Muslims for Progress, said: "Thank you to the professors who stood in solidarity with student protestors, who didn't give into instigators who are fanning flames of hate and division. Remember the calls are for transparency, divestment, and amnesty for students!"
Congresswoman Ilhan Omar (D-Minn.)—a critic of Israel's war on Gaza whose own daughter, Isra Hirsi, was suspended from Columbia's Barnard College last week for "standing in solidarity with Palestinians facing a genocide," as the 21-year-old junior put it—also noted the faculty walkout and "nationwide Gaza solidarity movement."
"This is more than the students hoped for and I am glad to see this type of solidarity," said Omar. "But to be clear, this about the genocide in Gaza and the attention has to remain on that."
Summary of events from the last day not related to Columbia:\n\n- Israel has not provided evidence that UNRWA staff are part of Hamas\n- A mass grave, including women/children was discovered\n- Doctors did an emergency c-section, saving a baby after an airstrikes killed her mother— (@)
The walkout in New York City followed 54 Columbia Law School professors sending a letter to administrators that states, "While we as a faculty disagree about the relevant political issues and express no opinion on the merits of the protest, we are writing to urge respect for basic rule-of-law values that ought to govern our university."
"Procedural irregularity, a lack of transparency about the university's decision-making, and the extraordinary involvement of the NYPD all threaten the university's legitimacy within its own community and beyond its gates," they wrote. "We urge the university to conform student discipline to clear and well-established procedures that respect the rule of law."
In a statement early Monday, several hours before the walkout, Columbia University president Minouche Shafik—who last week enabled NYPD arrests of students at the encampment—announced in her first statement since the sweep that all classes would be virtual "to deescalate the rancor and give us all a chance to consider next steps."
"Faculty and staff who can work remotely should do so; essential personnel should report to work according to university policy. Our preference is that students who do not live on campus will not come to campus," Shafik said. "During the coming days, a working group of deans, university administrators, and faculty members will try to bring this crisis to a resolution."
The national group Jewish Voice for Peace (JVP) on Monday accused Columbia of creating "a climate of repression and harm for students peacefully protesting for an end to the Israeli genocide against Palestinians in Gaza" over the past six months.
"Columbia University has actively created a hostile environment for students who are Palestinian or who support Palestinian freedom. Additionally, the administration's actions have made the campus much less safe for Jewish students," JVP said.
According to JVP:
Instead of listening to the calls of Columbia and Barnard students to divest from the genocide perpetrated by the Israeli government, the university has called in the NYPD to arrest students, suspended them, and even expelled them. At present 85 students, 15 of whom are Jewish, are suspended.
Yesterday's statement by the White House, like the administrators of Columbia University, dangerously and inaccurately presumes that all Jewish students support the Israeli government's genocide of Palestinians. This assumption is actively harming Palestinian and Jewish students.
The administration has not only harassed Jewish students and failed to ensure their safety and well-being, it has also obstructed their religious observances during Shabbat and prevented them from accessing their Jewish community on the eve of Passover.
While President Joe Biden's Sunday statement was officially about Passover—a Jewish holiday that begins at sundown on Monday—and not the protests at Columbia and other campuses across the country, it was widely received as a response to the latter.
Biden said in part that "we must speak out against the alarming surge of antisemitism—in our schools, communities, and online. Silence is complicity. Even in recent days, we've seen harassment and calls for violence against Jews. This blatant antisemitism is reprehensible and dangerous—and it has absolutely no place on college campuses, or anywhere in our country."
Jonathan Ben-Menachem, a Ph.D. student at the university, toldCNN that "Columbia students organizing in solidarity with Palestine—including Jewish students—have faced harassment, doxxing, and now arrest by the NYPD. These are the main threats to the safety of Jewish Columbia students."
"On the other hand, student protesters have led interfaith joint prayers for several days now, and Passover Seder will be held at the Gaza solidarity encampment tomorrow," he added. "Saying that student protesters are a threat to Jewish students is a dangerous smear."
Columbia Students for Justice in Palestine said in a lengthy statement that "we are student activists at Columbia calling for divestment from genocide. We are frustrated by media distractions focusing on inflammatory individuals who do not represent us. At universities across the nation, our movement is united in valuing every human life."
"As a diverse group united by love and justice, we demand our voices be heard against the mass slaughter of Palestinians in Gaza," the statement continues. "We've been horrified each day, watching children crying over the bodies of their slain parents, families without food to eat, and doctors operating without anesthesia. Our university is complicit in this violence and this is why we protest."
The Columbia Spectator reported Monday that Columbia College passed a divestment referendum that "asked whether the university should divest financially from Israel, cancel the Tel Aviv Global Center, and end Columbia's dual degree program with Tel Aviv University," with respective votes of 76.55%, 68.36%, and 65.62%. However, a statement from a university spokesperson signaled the referendum would not lead to any shift in campus policies.
Beyond Columbia, there are ongoing demonstrations at institutions including the Massachusetts Institute of Technology, New York University, the University of Michigan, and Yale University, another Ivy League school, where at least 47 peaceful student protesters were arrested on Monday.
Those arrested were "charged with class A misdemeanors, which is the highest class of misdemeanors in Connecticut—the same degree applies to third-degree assault," according to the Yale Daily News. Citing a university spokesperson, the student newspaper added that they "will be referred for Yale disciplinary action—which could include reprimand, probation, or suspension."
Pushing back against some administrators' statements, journalist Thomas Birmingham, who was with the Yale protesters overnight, said on social media: "Here's some things I saw... 1. Repeated and loud calls to remain peaceful. 2. Students locking arms, teaching Arabic and Hebrew, and passing around pizza and water. 3. Lots of singing."
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​Modi Slammed for 'Direct Attack on Muslims of India' in Campaign 'Hate Speech'
"Modi's rhetoric against Muslims is extremely divisive and dangerous," warned one critic. "It would only fuel more hate and violence against the already battered community."
Apr 22, 2024
Critics on Monday condemned far-right Indian Prime Minister Narendra Modi for what one group called a "hateful and dangerous" campaign speech in which he claimed that Muslim "infiltrators" would steal Indians' wealth if the opposition wins parliamentary elections that began last week.
Speaking to supporters at a rally in the western state of Rajasthan on Sunday, Modi said that the manifesto of the opposition Indian National Congress (INC) party details how to calculate "the amount of gold that mothers and sisters have" so that it can be redistributed to Muslims.
"When they were in power, they said Muslims have first right over resources," the prime minister claimed out of context. "They will gather all your wealth and redistribute among those who have more children. They will distribute it among infiltrators. Do you think your hard-earned money should be given to infiltrators? Would you accept this?"
Prime Minister Narendra Modi's rhetoric against Muslims is extremely divisive and dangerous. It would only fuel more hate and violence against the already battered community. pic.twitter.com/KT36FVpS6u
— Raqib Hameed Naik (@raqib_naik) April 21, 2024
Members of Modi's ruling Bharatiya Janata Party (BJP)—which does enjoy the support of a significant number of Indian Muslims—have often portrayed Muslims as outsiders. BJP officials have also pushed a baseless conspiracy narrative roughly analogous to U.S. white supremacists' "great replacement" theory, in this case positing that Muslim migrants and rapidly reproducing Indian Muslims will eventually outnumber Hindus—who make up around 80% of the country's 1.4 billion people.
Modi's remarks came a day after India's seven-step election of 543 members of the Lok Sabha, or lower legislative house, began. Modi is running for a third consecutive term. He's being challenged by INC President Mallikarjun Kharge, leader of the opposition in the Rajya Sabha, the upper legislative house. Results will be announced on June 4.
Kharge responded to Modi's remarks by blasting the "panic-filled" address as "not only a hate speech but also a well-thought-out ploy to divert attention" by the prime minister, the BJP, and Rashtriya Swayamsevak Sangh (RSS)—a fascist-inspired political and paramilitary movement whose brand of Hindu supremacy heavily influenced the rise of the BJP.
"Lying for power, making baseless references to things, and making false accusations on opponents is the specialty of the training of RSS and BJP," Kharge said, adding that Indians "are no longer going to fall prey to this lie."
Indian journalist and
Washington Post opinion columnist Rana Ayyub said on social media that "this is not a dogwhistle, this is a targeted, direct, brazen hate speech against a community."
Thousands of Indians petitioned the country's Election Commission seeking punitive action against Modi.
"The prime minister, while campaigning... made a speech on April 21 in Rajasthan that has disturbed the sentiments of millions of Constitution-respecting citizens of India," one petition states. "The speech is dangerous and a direct attack on the Muslims of India."
Muslim groups around the world also slammed Modi's speech, which the U.S.-based Council on American Islamic Relations (CAIR) called "hateful and dangerous."
"It is unconscionable, but not surprising, that far-right Hindutva leader Narendra Modi would target Indian Muslims with a hateful and dangerous diatribe despite his role as the leader of a nation with such a diverse religious heritage," said CAIR national executive director Nihad Awad.
"We again call on the Biden administration to declare India a 'country of particular croncern' over its discriminatory and violent policies targeting Muslims and other religious minorities," Awad added. "Global Islamophobia is alive and well in India and must be confronted before it escalates to something even worse."
South Asia historian Audrey Truschke, a professor at Rutgers University in New Jersey, accused Modi of "straight-up fascism."
"Modi had a history of encouraging mass violence against Muslims," Truschke added. "So we should all take his words seriously."
Modi was chief minister of the western state of Gujarat in February 2002 when a train full of Hindu pilgrims was set ablaze, killing 58 people. The cause of the disaster remains disputed, but Modi was quick to blame Muslims for the fire. In a three-day paroxysm of intercommunal bloodletting, Hindu mobs murdered at least hundreds—and perhaps thousands—of Muslim men, women, and children. Many women and girls were raped. More than 250 Hindus were also killed during what came to be called the Gujarat riots, during which an estimated 150,000 people were also forcibly displaced.
A team sent by the British government concluded that Modi was "directly responsible for a climate of impunity" that enabled the pogrom. However, a special investigation commissioned by the Indian Supreme Court cleared him of complicity in 2012. Modi's alleged role in the massacre led to a U.S. visa ban during the George W. Bush administration that was lifted during the tenure of former President Barack Obama after Modi became prime minister.
Deadly violence against religious minorities and others has increased during BJP rule. And while the U.S. State Department has perennially criticized the Indian government's human rights record, Modi was courted by both the Trump and Biden administrations. Last year, the White House literally rolled out the red carpet for Modi, who was lavishly feted by President Joe Biden and invited to speak before a rare joint session of Congress. Several progressive lawmakers boycotted the address.
Earlier this year, Progressive International's (PI) executive body used Modi's consecration of a highly controversial Hindu temple on the former site of a 16th-century Muslim mosque destroyed by a Hindu nationalist mob as an opportunity to issue a warning about the accelerating erosion of democracy in India.
"The Modi government has made a decisive move to overthrow India's secular constitution in the name of a new Hindu supremacist nation," PI's statement asserted. "As prime minister, Modi has pushed this Hindu nationalism as India's dominant political force: banning the hijab in schools, introducing 'anti-conversion' laws, abusing municipal forces to demolish Muslim households and shops in cities, and pushing for a 'uniform civil code' in law."
Anti-Muslim speech has also increased dramatically in India, according to a report published earlier this year by the U.S.-based India Hate Lab. The publication detailed 668 incidents in 2023—75% of which occurred in BJP-ruled states.
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Liberal Justices Grill Attorney in Supreme Court Case on Criminalizing Homelessness
"Where are they supposed to sleep? Are they supposed to kill themselves not sleeping?" asked Justice Sonia Sotomayor of unhoused people who have been barred from sleeping outside in Grants Pass, Oregon.
Apr 22, 2024
As housing rights advocates and people who have been unhoused themselves rallied outside the U.S. Supreme Court Monday to demand an end to the criminalization of homelessness, the court's three liberal justices demanded to know how the city of Grants Pass, Oregon can penalize residents who take part in an act necessary for human survival—sleeping—just because they are forced to do so outside.
After an attorney representing Grants Pass, Thomas Evangelis, described sleeping in public as a form of "conduct," Justice Elena Kagan disputed the claim and reminded Evangelis that he was presenting a legal argument in favor of policing "a biological necessity."
"Presumably you would not think that it's okay to criminalize breathing in public," said Kagan, who was appointed by former President Barack Obama. "And for a homeless person who has no place to go, sleeping in public is kind of like breathing in public."
Evangelis is representing the city in Grants Pass v. Johnson, a case stemming from a 2018 lawsuit filed by an unhoused woman, Debra Blake, who accused officials of "trying to run homeless people out of town."
"On any given day or night, hundreds of individuals in Grants Pass, Oregon, are forced to live outside due to the lack of emergency shelter and affordable housing in their community," the original lawsuit stated.
The city has passed ordinances banning people from sleeping or camping on publicly owned property, with violators subject to fines of hundreds of dollars.
A lower court ruled that the city's bans were in violation of the Eighth Amendment, which bans excessive fines and cruel and unusual punishment, "when there was no other place in the city for [unhoused persons] to go."
The city's only homeless shelter, Gospel Rescue Mission, has 138 beds, and the plaintiffs have said there is frequently no room for many of the hundreds of unhoused people in Grants Pass.
On Monday, Justice Sonia Sotomayor appeared inclined to agree with the plaintiff in the original lawsuit who claimed Grants Pass ultimately wanted unhoused people to leave the city. She pointed to comments city officials have made about their aim "to remove every homeless person and give them no public space."
"Wasn't Grant Pass's first-attempt policy choice to put people, homeless people, on buses so they would leave the city?" she asked Deputy United States Solicitor General Edwin Kneedler. "Police officers would buy them a bus ticket, send them out of the city. But that didn't work because people came back because it had been their home... So then they passed this law, and didn't the City Council president say, 'Our intent is to make it so uncomfortable here that they'll move down the road,' meaning out of town, correct?"
Kneedler acknowledged that the statement was made at a City Council meeting.
"Not only is [sleeping] something that everybody engages in, but it's something that everybody has to engage in to be alive," Kneedler said in response to a question from Justice Ketanji Brown Jackson. "So if you can't sleep, you can't live, and therefore by prohibiting sleeping, the city is basically saying you cannot live in Grants Pass."
The city argued in its case that prohibiting local officials from regulating and banning homeless encampments in public places would cause more people to sleep outdoors—an argument U.S. Rep. Cori Bush (D-Mo.), speaking at the rally outside the court, said exposed "how absurd our country's approach to the unhoused crisis is."
"Instead of enacting real solutions to the unhoused crisis, Grants Pass has taken this case all the way to the Supreme Court and is calling for the court to overturn a landmark decision from 1962 that says the government cannot punish people based on status. So we're here today to demand the Supreme Court support humanity, adhere to constitutional precedent, and protect the rights of our unhoused neighbors," said Bush, who has spoken about previously being unhoused herself and sponsored related legislation.
"A person should never be punished for not being able to afford rent or a home," Bush added. "A person should never be punished for sleeping outside or in a car when they have no other place to go. A person should never be punished for simply existing. We need universal housing, universal housing vouchers, and a permanent federal rental assistance program—these are all tangible steps that would actually solve this crisis."
The case arrived at the high court four months after the U.S. Department of Housing and Urban Development released annual data showing a 12% increase in homelessness last year from 2022, largely due to a sharp rise in the number of people who were without housing in 2023 for the first time in their lives. Experts often argue the federal figures are an undercount.
On Monday, the Eviction Lab at Princeton University released new data showing that in 25 of the 32 cities it analyzed, an increase in eviction filings was seen between 2022-23.
"The country lacks millions of units of affordable rental housing, and in those units that are available, a record number of tenants are paying well beyond their means," reported the Eviction Lab. "High interest rates prevent younger, middle-class renters from buying homes, which in turn increases demand in the rental sector."
Considering the dynamics contributing to a growing unhoused population, Sotomayor asked of people facing homelessness in Grants Pass: "Where are they supposed to sleep? Are they supposed to kill themselves not sleeping?"
The conservatives on the Supreme Court, who make up the majority, signaled a willingness to rule in favor of the city, with Chief Justice John Roberts acknowledging that the case is centered on "a policy problem because the solution, of course, is to build shelter to provide shelter for those who are otherwise harmless," but noting that "municipalities have competing priorities."
The answer to the questions being asked at the Supreme Court Monday "is not complicated," said Rep. Delia Ramirez (D-Ill.). "Unhoused people need housing. Housing is the answer. Housing NOT Handcuffs."
Ramirez repeated a phrase that was seen on many signs held by rally attendees, who included the national grassroots economic justice group VOCAL and organizers with the Southern Poverty Law Center (SPLC) and the National Homelessness Law Center (NHLC).
"What the Supreme Court decides in this case will say a lot about what kind of country we are and what country we want to be," said Efrén Olivares, director of strategic litigation and advocacy at the SPLC. "We demand a future without policies like the one before the court and a government that instead works to ensure that the right to affordable housing is guaranteed for all."
A ruling in the case is expected in June.
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