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The stranglehold of finance capital over the state

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Women collect coal scraps from an overburden dump for a nearby open pit coal mine. Overburden is the fertile soil (formerly used for agriculture) that has to be removed to get at the coal underneath. In the process small pieces of coal are also picked up which are scavenged by local villagers to be sold for cash. Photo: Panos Pictures/Robert Wallis

Is ours the age of the struggle between the state and the market? Or is it the age in which the state bowed to financial control over it? From a perspective which integrates labour, environmental stewardship, cultural safeguarding and a just human development, the state is firmly in the grip of finance and its liberalisers.

What has come to be called neo-liberalism is in short the expression used to describe the relentless and growing control of resources of every sort, be they mineral, human or environmental. If there has been a problem of neoliberalism it is that it failed to increase the rate of profit consistently and never achieved levels comparable to those of the ‘Golden Age’ between 1948 and 1973. The series of ‘booms’ of various kinds, which caught the attention of investors, bankers and speculators, have had much to do with the seeking to replicate the conditions of those years (in Deutschland they called the period ‘die Fette Jahre’, the fat years).

Boys carry large lumps of coal that they have scavenged from an open pit mine near Dhanbhad. They will carry this coal several kilometres to sell in a local market. As mining has displaced agriculture, scavenging for coal on the edge of mines has become one of the means of survival for those who have been displaced from an agricultural life by mining. Photo: Panos Pictures/Robert Wallis

The essence of financial liberalisation, seen in its totality, is to ensure the stranglehold of finance capital over the State, Prabhat Patnaik has explained in a commentary in People’s Democracy (the weekly organ of the Communist Party of India Marxist). This may appear paradoxical at first sight: as the term ‘liberalisation’ appended to ‘financial’ suggests, the basic aim of the process is to liberate finance from the shackles of the State, ie, to ensure not the control of finance over the State but the negation of the control of the State over finance. But the remarkable aspect of financial liberalisation consists precisely in this: what appears at first sight as the liberation of finance from the shackles of the State is nothing else but the acquisition by finance of control over the State.

In his short essay, ‘Neoliberalism: From One Crisis to Another, 1973-2008’, Neil Davidson has explained that these booms were the result of the following factors which he enumerates as under:

The first and most fundamental was simply greater exploitation of the workforce, by increasing productivity on the one hand (making fewer workers work harder and longer) and decreasing the share of income going to labour on the other (paying workers less in real terms).

The second was the expansion of private capital into two new areas: first through the expropriation of the remaining ‘commons’ in the Global South, releasing value which had previously been embedded in nature and hence unavailable for the purposes of accumulation; then through privatising state-owned industries and public services, providing resources which-potentially at least-could be used directly for production rather than in the process of realisation or as part of the social wage.

The third was the emergence of new centres of capital accumulation outside the established core of the world system in East Asia and above all, in China, which contributed to a partial restoration of profitability as a manufacturer of cheap consumer goods for Western and, above all, US import markets, and as the source of loans to the US through Treasury Bonds, which are then loaned again to American companies and consumers.

The fourth, itself a result of profit rates failing to consistently reach what capitalists considered acceptable levels, was a fall in the proportion of surplus value being invested in production and the rise in the proportion being saved, to the point where the latter became greater than the former. The need to find profitable uses for surplus capital, where productive investment was insufficiently attractive, tended to draw industrial capitalists towards financial speculation. This did not mean that industrial capital became subordinated to financial capital – rather, their interests converged.

A series of murals painted by the Tribal Women's Artist Collective from Hazaribagh. The collective attempts to keep tribal artistic traditions alive in the face of population displacement from tribal areas due to the spread of mining and the conflict between the India army and Maoist guerillas. The designs and styles are unique to each individual artist and were traditionally passed down from mothers to daughters through the generations. Photo: Panos Pictures/Robert Wallis

The turn to finance had implications beyond a shifting focus of investment, which tends to be compressed into the term ‘financialisation’. But among all the complexities of arbitrage, derivatives, hedge funds and the rest, there are two essential points about financialisation which need to be understood. One is that, financial speculation, like several of the factors discussed here, can increase the profits of individual capitalists at the expense of others, but cannot create new value for the system as a whole. The other is that, in so far as profits were raised, one aspect of financialisation became more important than any other and consequently needs to be considered as a factor in its own right.

This, the fifth and final factor, was a massive increase in consumer debt. Credit became crucially important in preventing the return to crisis only after the post-1982 recovery had exhausted itself. In so far as better-off working class people have spent borrowed money on commodities which are above the minimum needed to reproduce their labour, it is a response to their situation under neoliberalism. But the main reason for increased debt has been the need to maintain personal or familial income levels.

Men transporting baskets of coal onto railway carriages at Sauanda railway yard. Most of the workers have migrated to work in the area having been displaced from their traditional livelihoods in the countryside. Lacking title deeds for land on which they have farmed and hunted for millennia, the rural adivasi communities are being displaced to make way for new industrial developments planned to capitalise on the land's mineral wealth. Photo: Panos Pictures/Robert Wallis

The points that Patnaik, Davidson and several others have been making, with increasing urgency in recent years, is that the freeing of finance capital from all social obligations like priority sector lending targets and differential interest rates, not only increases its profitability, even while pushing petty producers and small capitalists deeper into crisis, but also allows it to pursue its own profit-seeking ways over a global terrain, which has the effect of subjugating the State to the thralldom of internationalised finance capital.

In short, financial liberalisation is the process through which a fundamental change is enforced on the bourgeois State: from being an entity apparently standing above society and intervening for the ‘social good’, which means keeping in check to some extent the rapacity of big capital, even while promoting it and defending its monopoly privileges, the State becomes exclusively dominated by financial interests (with which big corporate interests are closely enmeshed) and loses its relative autonomy vis-a-vis such interests. We have not the ‘rolling back’ of the State as neo-liberal ideologues suggest, but State intervention in the exclusive interests of finance capital.

[‘Neoliberalism: From One Crisis to Another, 1973-2008’, Neil Davidson, Senior Research Fellow at the University of Strathclyde and a member of the Editorial Board of the journal International Socialism.]

When humans use up the planet – why we need to do less with a lot less

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By 2050, humanity could devour an estimated 140 billion tons of minerals, ores, fossil fuels and biomass per year – three times its current appetite – unless the economic growth rate is “decoupled” from the rate of natural resource consumption. This is the central recommendation of a major new study by the UN Environment Programme (UNEP), ‘Decoupling: natural resource use and environmental impacts from economic growth’.

Developed countries citizens consume an average of 16 tons of those four key resources per capita (ranging up to 40 or more tons per person in some developed countries). By comparison, the average person in India today consumes four tons per year.

With the growth of both population and prosperity, especially in developing countries, the prospect of much higher resource consumption levels is “far beyond what is likely sustainable” if realized at all given finite world resources, warns this report by UNEP’s International Resource Panel. Already the world is running out of cheap and high quality sources of some essential materials such as oil, copper and gold, the supplies of which, in turn, require ever-rising volumes of fossil fuels and freshwater to produce. Improving the rate of resource productivity (“doing more with less”) faster than the economic growth rate is the notion behind “decoupling,” the panel says.

That goal, however, demands an urgent rethink of the links between resource use and economic prosperity, buttressed by a massive investment in technological, financial and social innovation, to at least freeze per capita consumption in wealthy countries and help developing nations follow a more sustainable path.

Humanity is pressing up against the limits of a finite planet to provide resources like water, oil, metals and food, said a news report by IPS on the UNEP study.

[The ‘Decoupling’ report in full, a summary, factsheet and slides can be found here.]

During the 20th century, the rate of resource use has increased twice as fast as the increase in global population. Now, resources are being consumed at an even greater rate and are on pace to triple by 2050, the report calculates. Except there simply aren’t enough resources left on the planet to manage that – the average person in Canada or the United States currently consumes 25 tonnes of key resources every year.

Industrialised countries need to reduce their consumption by making significant reductions in waste and major improvements in the efficiency with which they use resources. At the same time, developing countries need to create new low-carbon, super-efficient resource use pathways for their economic development. Developing countries have to change their idea of what development means in a resource-scarce world. They need to forge a new resource- efficient, low carbon development path, said Mark Swilling of the Sustainability Institute at the University of Stellenbosch in South Africa.

There is a pressing need for sanitation in much of Africa, but instead of building expensive Western-style water treatment infrastructure, countries can use their wetlands and natural vegetation to provide the same service, Swilling, a co-author of the report, told IPS. “We will miss out on these kinds of opportunities if we follow Western development patterns,” he said.

Public infrastructure is the biggest determinant of future energy and resource use, said Marina Fischer-Kowalski of the Institute of Social Ecology in Vienna. North America’s infrastructure, including transportation, sanitation, food production and so on, are all high-energy, high-material-use systems, said report co-author Fischer-Kowalski. They were designed with the assumption of never-ending access to cheap and plentiful energy and resources. Efficiency improvements can be made but it is more expensive and limits to what can be done.

India’s unseen Niyamgiris

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Cover, 'L'Inde - des tribus oubliées', photographed by Tiziana and Gianni Baldizzone

Cover, 'L'Inde - des tribus oubliées', photographed by Tiziana and Gianni Baldizzone

This remarkable book, ‘L’Inde – des tribus oubliées’, has been released in a 2008 edition, as I found in Paris, at a small book-seller’s near the Metro Opera.

Based on the work that went into the visually stunning 1993 edition by the photographer couple, Tiziana and Gianni Baldizzone, L’Inde – des tribus oubliées’ (‘India’s forgotten tribes’) contains rare photographs of the Dongria Kondh.

There’s more on the struggle of the Dongria Kondh here and here.

The Niyamgiri Hills form a mountain range in the Eastern Indian state of Orissa, and are home to more than 8,000 Dongria Kondh, whose lifestyle and religion have helped nurture the area’s dense forests and unusually rich wildlife.

At the centre of the struggle is the Dongria’s sacred mountain, Niyam Raja. The Dongrias worship the top of the mountain as the seat of their god and protect the forests there.

Medium de la tribu Kandha dans l'Orissa (montagnes Nimgiri)

Medium de la tribu Kandha dans l'Orissa (montagnes Nimgiri)

Mining conglomerate Vedanta Resources wants to mine bauxite from the top of the same mountain.

If that is allowed by the government of India, the Dongria Kondh would lose their livelihood, their identity and the sanctity of their most religious site.

In common with other displaced tribal peoples worldwide, they would also lose their present good health, their self-sufficiency and their expert knowledge of the hills, forests and farming systems that they have nurtured.

‘L’Inde – des tribus oubliées’ with photographs by Tiziana and Gianni Baldizzone reminds us of the extraordinary richness of our tribal fabric and why no effort is too great to protect them and their ways of life.

The book contains a preface by Dominique Lapierre and the remarkable photographs rest upon authoritative text by Declan Quigley and Vinay Srivastava. See Éditions du Chêne for more on the book.

Jeunes filles bondas

Jeunes filles bondas

Femme bonda parée de tous ses bijoux en perles, or et toile

Femme bonda parée de tous ses bijoux en perles, or et toile

Femme gadaba revenant du marché etportant un manteau de feuilles

Femme gadaba revenant du marché etportant un manteau de feuilles

Guerrier nishi (Arunachal Pradesh)

Guerrier nishi (Arunachal Pradesh)

Green Hunt, red money and a forest war

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If this is a war in India, then the 76 Central Reserve Police Force personnel who were killed on Tuesday, 6 April 2010, were misled by their final commanding superiors, the senior officials and planners in the Ministry of Home Affairs, Union Government of India. The terrible attack, which took place in the central Indian state of Chhattisgarh, is being considered the worst loss in recent times in the long and bloody history of the Indian state versus leftist guerrillas. Why is India at war with itself? And what prompts the government, less than a day after the deadly ambush, to intensify its bellicose proclamations of “we will take the offensive to the Maoists” and indications that it will call in the army and even air force?

A part of the answer lies within a published comment by a political prisoner in New Delhi’s Tihar jail. “The trouble with India’s budget and economic planning is that the funds allocated to social welfare are basically geared to the vote bank needs of the ruling parties. Instead of long-term capital development towards increasing the welfare of the people, sops are handed out on a yearly basis to garner votes. Thus, while the expenditure on infrastructure is geared primarily to meet the long-term development needs of the business community, the social welfare expenditure is not oriented towards the ultimate extrication of the masses from poverty and misery. The social welfare allocations are more in the form of a dole for immediate political gains. Besides, even by the official count, only 10% of such allocations really reach the needy while the rest are swallowed up by intermediaries – officials and politicians.”

That direct telling of the facts as they are come from Kobad Gandhy, a well-known Maoist intellectual and now prisoner. Gandhy’s short comment is only one amongst many – from academics, activists and even conscientious bureaucrats – who have understood the reasons that give rise to armed Maoism or Naxalism in India, and in particular in those states which have high poverty and are also host to natural resources (forests and minerals, particularly). The bald truth, unpalatable to the Union Government of India but a truth which is lived out every day by tens of millions in the country, is that the possible benefits of economic growth have passed them by. Denied rights, ignored by development work, marginalised by a combination of bureaucratic neglect and rank opportunism of the politician-business combine, Indian citizens in states like Chhattisgarh, Andhra Pradesh, Orissa and Jharkhand live miserable lives in heart-rending conditions.

[Gandhy’s article can be found in the (Economic and Political Weekly, Vol 45, No. 14, April 03-April 09, 2010]

These are also the states in which the Maoist and Naxalite groups are active. Why can the central government not make the connection when most others do? Even India’s Planning Commission, its foremost development policymaking body, has considered the special needs of “disturbed areas” with a specific economic and social development programme aimed at remving the root causes of militancy. But that has not been the approach of the state. Instead, it has piled one counter-insurgency operation upon another in a spiral that is ever more expensive in terms of lives and money. The operations mounted by the central government in these areas have led to unprecedented bloodshed, massacres of civilian populations and rampant violations of constitutional rights in the area. Unmindful of many independent commissions of inquiry over the last two decades, the central government with fanfare announced its latest campaign, named Operation Green Hunt. In this – as in many other campaigns before it – the central government insists on treating the affected areas as a “war zone”, and has shown little inclination towards tackling the huge backlog of tribal oppression that has created fertile ground for such violence.

Writing in the 10 March 2010 issue of the journal ‘Liberation‘ (published by the Communist Party of India (Marxist-Leninist) Liberation), Arindam Sen warned: “The UPA government is clearly preparing the ground for a full-scale intensification of Operation Green Hunt. To begin with, the government has embarked on a massive propagation of its new found doctrine of security which singles out Maoism as the biggest threat to national security. The government is also busy cobbling a grand political consensus around this doctrine and it has already achieved a good deal of success in this regard. If Narendra Modi (Gujarat chief minister) is effusive in praising Chidambaram’s clarity and firmness, Buddhadeb Bhattacharjee (West Bengal chief minister) too clearly speaks the same language as Chidambaram.”

The CPI-ML also warns that whoever is not ready to join this ‘coalition of the willing’ (a menacing throwback to former US president G W Bush’s terminology) or dares question the wisdom of this approach is being branded a Maoist sympathiser. Time and again Chidambaram has blamed intellectuals and the civil society, bracketing them all with Maoists. It is not just a case of branding; many are already being harassed, hounded out and persecuted. Himanshu Kumar, a practising Gandhian, of the Vanvasi Chetna Ashram of Bastar saw his ashram in Chhattisgarh ransacked and razed to the ground; fact-finding teams trying to make an independent assessment of the actual situation have all been debarred from visiting ‘conflict zones’ whether in Chhattisgarh or West Bengal. Meanwhile, the Unlawful Activities Prevention Act (UAPA) is being invoked on a daily basis to arrest people across the country, states Liberation.

In his analysis, ‘1000 rebels & none saw? Blood spills a home truth‘, in The Telegraph (Kolkata), Sankarshan Thakur wrote: “A senior Chhattisgarh police officer admitted as much to The Telegraph today, affirming that the site of the massacre is not remote enough for nearby tribal settlements to have been unaware. “We get very little information from tribals, and that is a fact and a huge disadvantage,” the officer said, “and what little we get is often stale or even tainted information, but those are the odds we work against. We have not been able to build networks, we are still deeply mistrusted by people, whereas Maoists have access either because of fear or genuine support.” Palpably rattled, he pleaded that today’s was an avoidable tragedy, but having said so, he added a chilling note: “Let me tell you it is neither the first nor the last, such disasters are built into the framework of Operation Green Hunt.”

While the Indian government has the tax payer as the source of its funds for such counter-insurgency operations, how do the Maoists find the money to take on armed units of the state? Ajit Kumar Singh and Sachin Bansidhar Diwan of the Institute for Conflict Management have provided some answers in their explanation of the Indian Maoists’ funds flow, entitled ‘Red Money‘. The evidence has come several seizures of documents and electronic evidence made since 2007 in the Maoist-affected states.

The Maoists target road contractors, contractors for forest products like ‘tendu’ leaves, bamboo and wood. They have reportedly made deals with poachers, smugglers and liquor and timber runners in the forests. In the areas under their control, including district towns, Maoists levy a ‘tax’ on small enterprises such as spinning mills, tobacco units, rice and flour mills, grocery, medical, cigarette and liquor shops, and private doctors. All ‘illegal’ operators, including private schools operating in villages and district towns, are also coerced to pay. The Maoists also secure large revenues from iron and coal mining companies. Apart from abductions, extortion and looting, Maoists also set up unofficial administrations to collect ‘taxes’ in rural areas, where the official government apparatus appears largely to be absent.

How much money can they and have they collected? In November 2009, Chhattisgarh Director General of Police Vishwa Ranjan claimed that the Maoists annually extort up to 20 billion Indian rupees all over India (Rs 2,000 crore, about US$ 447 million). In the states of Bihar and Andhra Pradesh their collections ranged from 2 to 3 billion rupees a year, and this was in 2007. Other states that are important for the Maoists monetarily are Maharashtra (where they have been active since the 1960s in the eastern part of the state), Chhattisgarh itself, Tamil Nadu and Karnataka (the northern part of which contains iron ore mines).

A major source of funding for the Maoists, say Singh and Diwan in the South Asia Intelligence Review of the South Asia Terrorism Portal, is poppy or opium cultivation. Portions of Jharkhand and Bihar are reported to be the principal pockets of poppy cultivation exploited by the Maoists. Opium fields are screened and hidden behind peripheral maize cultivation. The Union Finance Ministry in its annual report for 2009-10, released in March 2010, said that the Central Bureau of Narcotics destroyed at least 1,443 hectares in 2009 alone. How much do the Maoists make from such cultivation? The illicit crops destroyed two districts alone in the state of West Bengal were estimated to have a value of over 12 billion rupees, if diverted to drug cartels for the manufacture of heroin. In India, opium is cultivated under strict licensing in select pockets of three states – Rajasthan, Madhya Pradesh and Uttar Pradesh. The entire opium crop is bought by the government and processed in public sector factories for their further use in pharmaceutical industries.

That is but a small aspect of the Maoist organisation in India. What happens now, after the 6 April massacre? The reactions of the Ministry of Home Affairs, judging by the statements of its minister, P Chidambaram, are not encouraging. Chidambaram rejected one opportunity to depart from the spiral of violence in February, when the Maoists made an offer to begin talks on the condition that the central and state governments suspend their anti-naxalite operations for 72 days. At the time he said: “It was a somewhat bizarre offer. Many weeks ago, I had offered to facilitate talks with the CPI (Maoist) provided they abjured violence. There was no meaningful response to that offer. Nevertheless, on February 23, 2010 I responded that if the CPI (Maoist) made a short, simple and unconditional statement that they would abjure violence, Government would be prepared to hold talks with them. I have received no response to my statement.”

This has been seen as a mistake by several who have been following contemporary Maoism and Naxalism in India. “We welcome the announcement by the Communist Party of India (Maoist) to observe a ceasefire and enter into talks with the Government of India,” said a joint letter to the Government of India written by a number of prominent citizens including Justice Rajindar Sachar, Randhir Singh, B D Sharma, Arundhati Roy, Amit Bhaduri, Manoranjan Mohanty, Prashant Bhushan, Sumit Chakravartty and S A R Geelani. “Given the government’s expressed willingness to engage in talks, we hope that this offer will be reciprocated. This necessarily requires an immediate halt to all paramilitary armed offensive operations (commonly known as Operation Green Hunt). It is also imperative that there should be complete cessation of all hostilities by both sides during the currency of the talks.”

There was no halt and there was no reciprocation. For many, the reasons are not far to seek. Any meaningful dialogue and solution will require that compulsory acquisition of tribal lands and habitats be stopped; that tribals should not be displaced by infrastructure and industrial projects (as is happening on a large scale in the affected states). This is because the central government is bound under law to comply with the Fifth Schedule of the Constitution which safeguards manifold rights of the tribals, including their ownership over land and resources.

“There is a common pattern to the emergence of Maoist violence in many areas,” stated a joint letter written by academics and activists Aditya Nigam, Dilip Simeon, Jairus Banaji, Nivedita Menon, Rohini Hensman, Satya Sivaraman, Sumit Sarkar, and Tanika Sarkar. “First a non-violent mass organisation like the People’s Committee against Police Atrocities (PCAPA) in West Bengal or Chasi Muliya Adivasi Sangh (CMAS) in Orissa arises in response to marginalisation, displacement or violence against tribals by the police and paramilitaries. Then the Maoists step in, attempting to take over the movement and giving it a violent turn. The state responds with even more violence, which is directed not only against the Maoists but also against unaffi liated adivasis. At this point, some adivasis join the Maoists in self-defence, their leaders like Chhatradhar Mahato, Lalmohan Tudu, Singanna are either arrested or gunned down in fake encounters and large numbers of unaffi liated adivasis are branded Maoists or Maoist sympathisers and arrested, killed or terrorised by the state.”

This is the crux of the matter, which cannot be solved by Operation Green Hunt and its tragic failures.

[My comment in the Khaleej Times is an abridged version of this posting]

The last stand of the Dongria Kondh

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Dongria Kondh youth at a protest meeting. Picture courtesy Amnesty International

Dongria Kondh youth at a protest meeting. Picture courtesy Amnesty International report, 'Don't Mine Us Out Of Existence: Bauxite Mine And Refinery Devastate Lives In India' .

It’s a measure of the desperation of people that they must be compared to a fictional community in a film – no matter how good the film – in an attempt to be heard. The Dongria Kondh have been represented by Survival International as the real-world analogy of the Na’vi, the blue-skinned indigenous folk of the box office hit film Avatar.

Survival’s director Stephen Corry says, “Just as the Na’vi describe the forest of Pandora as ‘their everything’, for the Dongria Kondh, life and land have always been deeply connected. The fundamental story of Avatar – if you take away the multi-coloured lemurs, the long-trunked horses and warring androids – is being played out today in the hills of Niyamgiri in Orissa, India.”

And so Survival International, an international organisation supporting tribal peoples worldwide, set up inspired piece of campaigning. The organisation has filmed and produced a short and stirring video on the lives of the Dongria Kondh, who with other local Kondh people are resisting Vedanta Resources, a Britain-registered company determined to mine their sacred mountain’s rich seam of bauxite (aluminium ore). The Dongria Kondh, an 8,000-strong adivasi (indigenous) community spread over 90 villages in and around the hills, are determined to save Niyamgiri from becoming an industrial wasteland.

Other Kondh groups are already suffering from a bauxite refinery, built and operated by Vedanta, at the base of the Niyamgiri Hills. These hills are home to the Dongria Kondh, who consider the Niyamgiri Hills as sacred and do not cut trees or practice cultivation on top of the Hill as they worship Niyam Raja Penu, who they believe lives on top of the Niyamgiri Hills. Their identity is closely tied to the Niyamgiri Hills, which they believe are essential to their culture, traditions, and physical and economic survival.

“The Dongria Kondh are at risk, as their lands are set to be mined by Vedanta Resources who will stop at nothing to achieve their aims,” said Corry. “The mine will destroy the forests on which the Dongria Kondh depend and wreck the lives of thousands of other Kondh tribal people living in the area. I do hope that (Avatar director) James Cameron will join the Dongria’s struggle to save their sacred mountain and secure their future.”

The outcry over mining and mineral ore extraction in Orissa has been growing steadily for over four years, with Indian and transnational mineral resources companies getting permissions to mine and build refineries. The victims have been small farming hosueholds and indigenous communities like the Dongria Kondh, who have lived on and around the hills for centuries. The Dongria Kondh depend entirely on the hills for their food, water, livelihoods and cultural identity.

Late in 2009, Amnesty International placed the matter squarely on top of its global agenda with a first report. “The proposed mine could have grave repercussions for their human rights to water, food, health, work and other rights as an indigenous community in respect of their traditional lands,” said the Amnesty International report. “International law requires that governments seek their free, prior informed consent before beginning such projects. Vedanta Resources and its subsidiaries have failed to take action to adequately remedy the problems identified above. The companies involved have also failed to abide by internationally-accepted standards in relation to the impact of business on human rights – to provide information, consult with people and refine plans to ensure rights are not harmed.”

Video on the Dongria Kondh by Survival International

Video on the Dongria Kondh by Survival International

Alarmed by the scale of the outcry – and possibly by the growing evidence of the mercenary destruction of land and peoples being carried out jointly by the Indian state and mining companies – the Church of England decided to take some action. It has decided to sell the shares it held (as the Church Commissioners and the Church of England Pensions Board) in Vedanta Resources on the advice of the Church’s Ethical Investment Advisory Group (EIAG). “We are not satisfied that Vedanta has shown, or is likely in future to show, the level of respect for human rights and local communities that we expect of companies in whom the Church investing bodies hold shares,” was part of the Church’s reason for dropping its Vedanta investment.

For its miserable part, Vedanta Resources has no qualms about using the typical corporate ‘responsibility’ jargon in vogue today in a sickening effort to explain how it works: “We believe that businesses will increasingly play a significant role in tackling and driving the sustainability challenge. Our focus on sustainability drives our conviction to pursue value creating projects and at the same time achieve positive environmental, social and health and safety outcomes.”

Its bauxite mining project will cover 700 hectares of land on top of the north-western part of the Niyamgiri Hills and involve excavation of a large section of the hill to a depth of about 30 metres. In May 2009, some members of these communities submitted an appeal to the National Environmental Appellate Authority within India’s central Ministry of Environment and Forests, to challenge the environmental clearance granted by the ministry for the proposed mining project. This appeal is now pending.

“Communities living in south-west Orissa in eastern India – already one of the poorest areas of the country – are at threat from the expansion of an alumina refinery and plans for a new bauxite mining project,” says Amnesty International’s hard-hitting report on the matter, ‘Don’t Mine Us Out Of Existence: Bauxite Mine And Refinery Devastate Lives In India’ (Amnesty International, 2010). “They have been effectively excluded from the decision-making process, and the land these people live on is or will soon be used to make profit for others.”

“The people living next to the refinery have already suffered violations of their human rights to water and health, including a healthy environment, because of pollution and poor management of waste produced by the refinery. The mining project will be located on the traditional lands of the Dongria Kondh, an indigenous community, which is considered endangered. They now live under the fear of losing their way of life and their sacred hills, as well as having their rights to water, food, livelihoods and cultural identity undermined.”