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What on Earth is Going On?: A Crash Course in Current Affairs
Arthur House
Tom Baird
Trying to determine what is going on in the world by reading newspapers is like trying to tell the time by watching the second hand of a clock. Ben HechtEvery day we are bombarded with far more information than we can possibly hope to absorb. We don't have the time, energy or patience to process it all and understand the root causes behind issues and their development. There might be areas of politics, business and international affairs which we know well, perhaps because our working lives directly involve them, but there is always so much besides which seems impenetrable, forbidding and rather scary as a result. Newspapers require a familiarity with acronyms and jargon in order to be comprehensible, not to mention considerable background knowledge.What on Earth is Going On? fills in some of this background in a clear but unpatronising style, taking the form of an alphabetical glossary which can be dipped into at convenient times. It is designed to be a gentle and amusing survival guide for people of all ages who wish they knew slightly more about what on earth is going on. This is a book for the bedside table, the morning commute or the downstairs loo, where it can be consulted by the confused dinner party guest who has taken refuge from the conversation going on next door. We hope that they will rejoin the table having flushed away some of their ignorance and feeling all the better for it.
TOM BAIRD
and ARTHUR HOUSE
What on Earth is Going On?
A Crash Course in Current Affairs
INTRODUCTION (#ulink_ce7ecb68-bc40-58a6-8247-2b206b162935)
We wrote this book with a shared conviction that a) most people’s knowledge of current affairs is a lot worse than they would like to admit, b) it wouldn’t hurt to start filling in the gaps, and c) while many of these issues are dauntingly complex, they would never-theless benefit from a clear and concise introduction.
Keeping up with the news is an interminably tall order. The media deluge us with so much content each day that by the time we’ve digested the headlines, a new day arrives and we have to start all over again. It’s not surprising that many of us choose to stick our heads in the sand and avoid it completely.
But that’s not the only alternative. The media would have us believe that events of earth-shattering importance happen every single day and that only by remaining glued to the 24-hour news cycle can we have any hope of keeping ourselves informed. Of course this isn’t true. Just as important as keeping up-to-date is understanding the root causes behind issues, and gaining some perspective on how they have developed over time.
Our hope is that What on Earth is Going On? will help achieve this. It is a book for the bedside table, the morning commute or the downstairs loo, where it can be consulted by the confused dinner party guest who has taken refuge from the conversation next door. We hope that they will rejoin the table having flushed away some of their ignorance, and feeling all the better for it.
TOM BAIRD and ARTHUR HOUSE, August 2009
Table of Contents
Cover Page (#u55690835-19b9-528e-9e09-4cb5047eb2be)
Title Page (#u334bd1f7-bee7-59d9-a83c-c227587cae3b)
Introduction (#u16b727b1-3fd4-58b2-b634-498f5d45414b)
Afghanistan (#u26e82771-16ff-544c-b7ca-047add5fc001)
Aid (#u6062591e-de8b-5b20-b2d2-ed19e1de2687)
Al-Qaeda (#u91432d46-02ba-5651-8689-ab7a96529f92)
Banking (#ucc4d8b7b-7801-5a7b-b78d-66032c1e99b1)
Basque Country/ETA (#u7d73a053-6966-5ac4-a2f9-f12116609aab)
Blogging (#ua59d140f-ae7c-56fa-9e13-0c5d205485e9)
Burma (#u19fe16e3-fd7b-5680-9adc-18d99eadf19f)
CERN (#ua1ca00ca-d8c4-5359-8d22-5fbe71fbe0e8)
Chechnya (#u49c4780f-f6fc-529f-8301-2b0c873bdb0e)
Civil Liberties (#u2cdfce3a-7a0d-509d-88c6-030b65418ec2)
Climate Change (#ub1759b3e-f083-53f4-876d-2b89b632013d)
Colombia (#u92b3dbb5-c8b5-5eac-a131-dc3aa94d6c49)
Congo (#u24c5ab65-f1c3-546e-8bbf-6ed2e4963c36)
Credit Crunch (#u0b47e544-7f9a-5000-a6d7-958447d979a1)
Cuba (#u8c15e83e-bf00-5b64-b085-fc0992b3f4cc)
Darfur (#ucffcf28d-39ae-5629-8023-7bc39acf1084)
Devolution (#u0f1548ec-a49e-5cfa-8fda-1a162a7a7d8d)
Energy (#u302867fc-4f6c-5eb6-810c-dc2453381235)
EU (#u3d19a537-ee32-570b-af4c-7919fd9fa24d)
Euthanasia (#ufc6a338c-15b4-5690-82b5-765bb9c6ee19)
Fairtrade (#ue6e9691f-43ea-5553-84e4-74de65447161)
Free Trade (#uc67ce1d3-5994-54f8-a91d-4a0c48932163)
G8/G20 (#u029e6848-bb9e-503c-8e86-a821d4470daa)
Georgia (#u63bac23f-31cc-587f-8851-bb34deeb79a4)
GM Food (#u140528cb-8960-59d0-8d7a-4b87c5506f47)
Hedge Funds (#u2cf0d65c-5d6c-580d-b0bd-70e339a18d07)
Hezbollah (#u2915e7a5-e4d7-59e7-a267-637b5e41ffc7)
Human Rights (#u36b220a7-1542-5180-9a93-40b59c4549c8)
Immigration (#uebfd9fc9-81cf-5c9f-b2d2-2062f7b4fab1)
Iran (#ub15e0665-fea8-5be4-8f73-bc093b9ce97f)
Iraq (#u6e8e3ffe-3eaf-5c0a-8901-58dfb725ad35)
Islam (#u89c8dad3-28b6-590a-9cae-cd3604a48938)
Israel/Palestine (#u76ddf847-8202-5e52-8b54-2f737c7e8be5)
IVF (#u02fc853b-47f5-58fe-86db-3b7c14a4c76a)
Kashmir (#u4bb3c53f-0c9f-5830-ae09-2ff6b6060284)
Kosovo (#u6cf1ca5a-c330-52ea-ad2c-a85faa873e66)
Microfinance (#uc908f307-3747-5eaa-871d-fcef27e8a3cf)
MRSA (#ued4c5ea6-fce4-5404-8236-8bd131d066c8)
NATO (#u31b5124d-4440-553c-b4c4-22b0b8b90712)
Neuroscience (#ue6874f74-3e96-5ae9-b653-5a2913be4971)
NHS (#uc7f7cf83-378a-588c-8c7f-40bea8f3e88e)
North Korea (#u94b98eb6-c377-5ad3-b3ac-10cfcfde1142)
Northern Ireland (#u2eb736be-a7de-56d6-ba72-3e669d03aac5)
Nuclear Weapons (#u39c6cd5c-802a-544b-8844-0aa3da664b1b)
Organic Food (#uaa239a97-7417-5519-8dc5-1feb3da12fcb)
Pakistan (#uade9f2ca-47fb-57f4-afcf-308ef7f9ccb2)
Pandemic (#u5d7a150b-4093-511a-9d60-ec54dc7f4be9)
Philanthropy (#u5e80c1bf-08c9-5e77-a32c-5e63b3b0d5eb)
Pirates! (#ud9ba67ad-9a6f-52e9-8651-fa1e87cc8367)
Russia (#u1cd110d3-0931-5476-a1a8-23e1f5f0b314)
Social Networking (#u4d081f98-e8cc-5c1c-aa11-097aa70d1c93)
Sri Lanka (#u28227a92-7aaa-5f9a-badf-5852358723b0)
Stem Cells (#ud6d583e7-f3c1-5423-912c-dd49ba6127e6)
Stocks and Bonds (#uef0878da-5161-5b33-bc22-ba3111068e9b)
Tax (#u8870ca99-1e99-576f-89ac-fc3a651eb6d1)
Tibet (#ub1f15e47-bd7a-50cc-b6ce-8d53306fad5c)
UK Elections (#u613ef850-e793-5907-b111-336c43707ba1)
UK Political System (#ube025f4d-d242-525c-a4c8-bbcb8cea7403)
UN (#u5c53bc6f-8e2b-5f1b-a038-8ca48a2273f0)
US Elections (#u1d349b27-3fce-5308-938f-821d17978d1a)
US Political System (#uad492aee-a121-5ac9-8cf3-40b2735f6044)
World Bank/IMF (#u4f4dee1d-a592-5a19-9899-9167cac1cad7)
Zimbabwe (#uf1686ed9-8a95-5bcb-abed-db3c47b2eeda)
Copyright (#u43781fbd-a88b-5d99-956d-72f705fba11c)
About the Publisher (#u94776ce3-d94b-52c9-aa99-82c702dded21)
Afghanistan (#ulink_1f2c072e-3034-59c3-8500-18e9ae4c84f5)
Some basic facts
Afghanistan is one of the world’s poorest countries, the result of decades of war and political instability which have hindered its development and crippled its economy. Its literacy rates are among the lowest in the world (51% for men and 21% for women) and average life expectancy is only 43. Afghanistan’s extensive natural resources (which include copper, gold, iron ore, gemstones, petroleum and natural gas) remain largely untapped. Instead, much of the country’s revenue comes from cultivating poppies, which are used to produce 95% of the world’s heroin. The population of around 32 million is almost entirely Muslim (roughly 80% Sunni, 20% Shi’a—see Islam), but ethnically diverse and multilingual. The most common language is Persian, spoken by around 80% of the population, followed by Pashto, the language of the Pashtun people, who dominate the southern lowlands of the country and constitute its largest ethnic group (42% of the population; groups dominating the centre and northern regions include Tajiks (27%), Hazaras (9%) and Uzbeks (9%)). Afghans usually place their loyalties with their tribe or local clan leader. This, combined with the mountainous and rugged terrain of much of the country, limits the power of state government (the current president Hamid Karzai’s nickname is the �Mayor of Kabul’).
Has it always been a war-torn country?
Afghanistan’s importance as a focal point for trade and migration between East and West has seen it possessed and conquered by a host of peoples throughout history, including Arabs, Persians, Turks, Macedonians, Mongols and Mughals. In the 19th century the country was of key strategic importance in the �Great Game’ between Russia and the British empire; after several Anglo-Afghan wars, it fell into British hands before regaining independence in 1919. Sixty years later, Afghanistan once again became the pawn in a struggle between two superpowers, this time the Cold War adversaries: the USSR and the USA.
What happened?
In 1979 the CIA began funding the Mujahedeen, an Islamist group composed of diverse factions and local warlords who opposed the communist secular government. The Soviet Red Army intervened to support the government, and were dragged into a decade-long war against the US-sponsored Mujahedeen that Soviet premier Mikhail Gorbachev referred to as a �bleeding wound’. Eventually the dogged resistance and guerrilla tactics of the Mujahedeen forced the Soviets to pull out in 1989. The US lost interest in Afghanistan after the collapse of the USSR, and the country entered a volatile period in which the Mujahedeen ousted the communist government and took control of the capital, Kabul, in 1992. During the ensuing �reign of chaos’ a new Islamist group, the Taleban, arose in opposition.
Who are the Taleban?
The Taleban (literally �students’) are a strictly religious Sunni movement drawn mainly from the Pashtun ethnic group. They originated in the madrassas (Islamic schools) of the southern city of Kandahar under the leadership of Mullah Omar, a one-eyed veteran of the Soviet war. The Taleban started making war on the Mujahedeen with the intention of restoring stability to Afghanistan and implementing Sharia law (see Islam). When they stormed Kabul in late 1996 they were greeted as heroes and bringers of peace, but they soon imposed an austere religious regime which required that all �modern distractions’ from the teachings of Islam were banned. These included music, TV, card playing, dancing, high heels, kite-flying, football and even paper bags. Women were forced to go completely covered in the street, and were not allowed jobs, being expected to stay at home instead. In 1996 the Taleban provided a safe haven in Afghanistan for Osama bin Laden and his fellow al-Qaeda members (see Al-Qaeda). Several of these, including bin Laden, already had contacts in the Taleban (having fought with them in Afghanistan against the Soviets) and shared their fundamentalist beliefs.
What happened after 9/11?
A month after the attacks, on 7 October 2001, George W. Bush launched Operation Enduring Freedom in response to the Taleban’s refusal to surrender bin Laden. This was an offensive launched with the UK which aimed to capture bin Laden, destroy al-Qaeda, and remove the Taleban regime. With the help of the Northern Alliance (former Mujahedeen militias also known as the United Islamic Front), the Taleban were successfully expelled from Kabul and Kandahar in November 2001. An interim government under Hamid Karzai, made up mainly of Northern Alliance members, was set up in early 2002. The US and UK military were joined by the ISAF (International Security Assistance Force) established in December 2001 and deployed under the approval of the UN Security Council. Led by NATO since 2003, this now consists of over 58,000 troops from 42 different countries, of which 26,000 are American and 8,000 British. The coalition also began training a new Afghan National Army to help fight the insurgents, which by mid-2009 numbered 86,000.
How successful have the coalition forces been?
Although eight years have passed since the US/ISAF invasion, bin Laden is still alive and al-Qaeda are functioning to some extent in the tribal areas beyond the Pakistan border, where multiple Islamist groups have made their bases and training camps. Despite being ousted from power in 2001, the Taleban regrouped and fought back with a new insurgency from 2003-5 which was particularly prevalent in their heartland, namely the southern provinces of Helmand and Kandahar as well as central Oruzgan. Having emerged as a distinctly Afghan movement, the Taleban’s ranks have swelled in the last few years due to Pakistani recruits joining the cause in the name of jihad (see Islam). Although the Taleban forces are estimated at only 10,000, their guerrilla tactics (and terrorist methods including suicide bombing) are extremely hard for conventional armies to counter, and the coalition forces face similar difficulties to those experienced by the Soviet army in the 1980s. Their success will depend not on military victories but on winning the �hearts and minds’ of the people, stamping out heroin production (the Taleban briefly banned poppy cultivation in 2000 but since the 2001 invasion it has been their main source of funding), and co-operating with Pakistan to rid its tribal areas of Taleban, al-Qaeda and other Islamist militant groups.
In March 2009 Barack Obama laid out his plans for a �comprehensive strategy’ for Afghanistan and Pakistan. This involved establishing a �trilateral dialogue’ between the US and these two countries, sending in more troops in the short term to root out �high-level terrorist targets’, and channelling financial and infrastructural resources to the area that had previously been going to Iraq. Obama’s policy is a hybrid of focused counter-terrorism and broader counter-insurgency, and some commentators doubt its ability to achieve both aims.
What other problems face Afghanistan?
A ruined economy and infrastructure, a weak government, an unpopular president, a corrupt police force, widespread human rights abuses (particularly against women and girls) and a poor education system.
�We’ll smoke �em out of their holes.’
GEORGE W. BUSH, 15 September 2001
�We are not in Afghanistan to control that country or to dictate its future. We are in Afghanistan to confront a common enemy that threatens the United States, our friends and allies, and the people of Afghanistan and Pakistan who have suffered the most at the hands of violent extremists.’
BARACK OBAMA, 27 March 2009
Aid (#ulink_b6d901e7-726d-5a91-ba7f-59a8c3e5c755)
What is aid?
Aid (also called international aid or foreign aid) is the voluntary transfer of resources from one country to another. Aid may be bilateral, given directly from one country to another, or multilateral, dispensed via international organisations such as the World Bank, IMF (see World Bank/IMF) and European Development Fund, or via charities or NGOs (non-governmental organisations) such as Oxfam, ActionAid or MГ©decins Sans FrontiГЁres. Most types of aid fall into two categories: humanitarian aid and development aid.
What is humanitarian aid?
This is emergency aid supplied to alleviate suffering in the immediate aftermath of a war or a natural disaster. It often involves the provision of food, medicine, transport, temporary housing (e.g. refugee camps) and logistical support (management of the flow of supplies and information).
What is development aid?
Development aid (or development assistance) is a much bigger sector than humanitarian aid, requiring far more money, as it focuses on helping extremely poor countries develop economically and socially in the long term. This can involve improving infrastructure, building schools and medical centres, providing clean water supplies, tackling the effects of climate change in vulnerable countries (see Climate Change), enabling access to anti-retroviral drugs, setting up microfinance initiatives (see Microfinance), providing financial grants, loans, or debt forgiveness grants, and donating skills and expertise in many different areas. In the long run, development schemes aim to help poor countries become self-sufficient, well governed, safe and economically prosperous.
Which countries supply the most aid?
The world’s principal aid donors are the 22 rich DAC (Development Assistance Committee) states of the OECD (Organisation for Economic Co-operation and Development). Of these, the USA, Germany, France and UK give the most aid in real terms, but as a percentage of Gross National Product (GNP) they give less than the 0.7% demanded by the UN in order to meet the Millennium Development Goals. In fact, most DAC countries are lagging behind on an average of 0.47% of GNP—the only countries doing better than the 0.7% target, and therefore the most generous donors in relative terms, are Sweden, Luxembourg, Denmark, Norway and the Netherlands. In 2005, wealthy countries pledged to step up their aid donations at the G8 summit at Gleneagles, and also agreed to write off US$40 billion worth of debt owed by 18 HIPC (Highly Indebted Poor Countries) to the World Bank, IMF and African Development Fund. Since then the UK has made good on its commitments to increase aid, and this looks set to continue despite the economic crisis, with Alistair Darling’s 2009 Budget pledging to deliver 0.6% of GNP by 2010-11 and reach the UN target of 0.7% in 2013.
What are the Millennium Development Goals?
These are a set of eight international development goals to be met by 2015 which grew out of the United Nations Millennium Declaration signed in September 2000. All 192 UN member countries and over 23 international organisations agreed to meet these ambitious goals, which were: eradicating extreme poverty and hunger (halving the number of people that live on less than a dollar a day); ensuring all children receive primary education; eliminating gender disparity at all educational levels; reducing by two-thirds the mortality rate of children under five; improving maternal health; halting and reversing the spread of AIDS, malaria and other diseases (and ensuring universal access to AIDS treatment by 2010); ensuring environmental sustainability and establishing a global partnership for development. Progress towards meeting these goals has been steady in Asia and South America, but sub-Saharan Africa is falling well short and some of its countries are unlikely to meet any of them. Despite a falling number of armed conflicts, Africa is still rife with disease, poverty and weak governance and remains the biggest focus and challenge for development programmes today.
How does the UK government spend its aid budget?
This is handled by DFID (the Department for International Development), a branch of the government with its own Secretary of State (currently Douglas Alexander MP). In 2007/8, 57% of DFID’s programme was spent on bilateral aid, both development and humanitarian—the largest recipients of bilateral development assistance were India, Ethiopia and Tanzania, whereas the largest humanitarian aid channels were to the Sudan, the Democratic Republic of Congo and Iraq (see Darfur, Congo and Iraq); roughly 10% of bilateral assistance went to UK Civil Society Organisations such as the British Red Cross, VSO (Voluntary Services Overseas) and Oxfam; 38% of DFID’s programme went on multilateral aid, chiefly to the European Commission’s Development Fund, followed by the World Bank and the United Nations.
How effective is aid?
There are plenty of success stories that testify to the effectiveness of aid in saving the lives of poor people, particularly those suffering from diseases; for example in Morocco, cases of blinding trachoma—a bacterial eye infection—have fallen 75% since 1999 thanks to a massive donation of antibiotics from a pharmaceutical company; in China, a World Bank loan financed a tuberculosis project which is now saving an estimated 30,000 lives per year; and in Uganda and Malawi, anti-retroviral drugs issued by the Global Fund to Fight AIDS, TB and Malaria have kept hundreds of thousands of HIV/AIDS sufferers alive since 2001 who would otherwise have died. However, there are many cases where aid has not reached its intended target, or has been hampered by poor planning, corrupt governments in recipient countries or war. In 2007, the fighting in southern Afghanistan made it too dangerous for DFID to deliver much-needed food aid to thousands of starving people, which only increased local support for the Taleban insurgents. Beyond the effectiveness of delivering food or medicine, the effectiveness of development aid is difficult to measure and is a matter of some controversy.
Why?
On the face of it, richer countries helping poorer countries seems like a straightforwardly good thing. And it is true that if all aid were suddenly to stop, millions of people around the world would suffer as a result. However, there is an ongoing debate surrounding the long-term effects of aid on developing countries. It often centres on the fact that aid is seldom given for purely altruistic reasons, but usually comes with strings attached. Aid programmes were started in earnest during the Cold War by the USA/NATO and the Soviet Union as a way of fostering alliances with weaker countries and influencing their politics with capitalist or communist ideology. Since the collapse of communism, the World Bank and the IMF have been accused of being run (at least in part) by people with vested business interests who use aid programmes to open up new opportunities for global capitalism in developing countries. Some say this sort of �neo-colonialism’ leads to exploitation and benefits the corporations more than the countries concerned, whereas others argue that aid creates a dependence on the donor countries, and that increased trade is instead the key to sustainable development—hence the slogan �trade not aid’. The OECD estimates that 58% of all foreign aid is �tied aid’—consisting of bilateral agreements in which money has to be spent in the donor country, thereby increasing the donor country’s exports and exerting its political influence over the recipient country. Tied aid is also less efficient than �untied’ aid, increasing costs for the recipient country by around 20%, much of which is spent on paying the high wages of international consultants. Aid has also been criticised for sustaining weak or corrupt governments; with a steady stream of unearned revenue at their disposal, they do not need to rely on the taxes of their citizens, who thus lose the ability to hold them accountable. Alternatively, it might allow such governments to free up funds to spend on potentially dubious areas such as defence, while the essential needs of their people are left to aid programmes.
�Millions in Africa are poorer today because of aid; misery and poverty have not ended but have increased.’
DAMBISA MOYO, Zambian economist and author of Dead Aid
�Development assistance based on proven technologies and directed at measurable and practical needs—increased food production, disease control, safe water and sanitation, schoolrooms and clinics, roads, power grids, Internet connectivity, and the like—has a distinguished record of success.’
JEFFREY D. SACHS, American economist, Special Advisor to UN Secretary-General Ban Ki-moon and author of Common Wealth and The End of Poverty
Al-Qaeda (#ulink_811af868-bdbe-551c-ad75-1170c2bb2d1d)
What is it?
Al-Qaeda (meaning �the Base’) is an international Sunni Islamist movement founded in 1988 by the Saudi Arabian Osama bin Laden. Since 1992 it has carried out terrorist attacks on civilian and military targets across the world in an extreme interpretation of jihad (see Islam), the Islamic doctrine of holy struggle. Most devastatingly, it was responsible for the attacks
on the World Trade Center and Pentagon on 11 September 2001, which claimed around 3,000 lives and injured 6,300.
How is it run?
The command structure and operational methods of al-Qaeda are a matter of some debate. Al-Qaeda has been known to operate cells (small groups of clandestine agents) in Western cities and to have local networks across the Muslim world (in Iraq and North Africa, for example). However, the extent to which these regional representatives are controlled by the central leadership is disputed; some claim that al-Qaeda is a coherent militant organisation, while others see it as a loosely defined concept, with a few core members providing ideology and inspiration for followers around the world. Despite this uncertainty, the �destruction of al-Qaeda’ was a key aim of George W. Bush’s �War on Terror’ and the US invasion of Afghanistan following the 9/11 attacks. What is left of al-Qaeda today is unclear, but its leaders are believed to be hiding in Pakistan’s tribal areas next to the Afghan border, where several other jihadi groups are based. Al-Qaeda is known to share training camps with these groups, such as the Pakistani-based Lashkar-e-Taiba, as well as fostering contacts with other militant Islamist movements such as the South-East Asian Jemaah Islamiyah.
What are al-Qaeda’s aims and beliefs?
Al-Qaeda aims to remove foreign, especially Western, influence from Muslim countries and establish a new Caliphate (an Islamic empire based on Sharia law—see Islam) across the Muslim world. Bin Laden and his followers are thought to be heavily influenced by the writings of Sayyid Qutb, a mid-20th-century Egyptian Islamist intellectual who
Apart from 9/11, which other attacks have been attributed to al-Qaeda?
1992: Hotel bombings in Aden, Yemen (2 killed, 7 injured)
1993: First World Trade Center bombing, New York, USA (6 killed, 1,042 injured)
1998: US Embassy bombings in Nairobi, Kenya (212 killed, around 4,000 injured) and Dar-es-Salaam, Tanzania (11 killed, 85 injured)
2000: Attack on the USS Cole, Aden harbour, Yemen (19 killed, 39 injured)
2003: Truck bombings in Istanbul, Turkey (57 killed, 700 injured)
2003-6: Attacks in Iraq on UN, US and Shi’ite targets by Abu Musab al-Zarqawi’s �al-Qaeda in Iraq’ (thousands killed and injured)
2007: Car bombings in Algiers, Algeria (roughly 90 killed, 350 injured)
2008: Danish Embassy bombings in Islamabad, Pakistan (6 killed, 24 injured)
advocated offensive jihad to rid the world of non-Muslim influences. He also declared that any Muslim not living under Sharia law is automatically an apostate (i.e. guilty of renouncing their faith), a crime punishable by death. This idea has been used by al-Qaeda to justify the killing of fellow Muslims. Bin Laden has been quoted as saying that Afghanistan under the Taleban regime of 1996-2001 was the �only Islamic country’ in the world.
What are its roots?
Whilst fighting against the Soviets in Afghanistan in 1984 for the CIA-funded Mujahedeen (see Afghanistan), Osama bin Laden co-founded the Maktab al-Khidamat (�Services Office’), an organisation which raised funds and recruited foreign jihadis, or �Afghan Arabs’, for the war effort. In 1988 bin Laden split from Maktab al-Khidamat, taking with him a loyal following; this was the core of what would later become known as al-Qaeda. After the Soviet defeat in Afghanistan, bin Laden directed his jihad towards American targets. His fervent anti-American stance has been well known since 1990, when he publicly denounced his own country, Saudi Arabia, for allowing US forces on to its soil in order to repel Saddam Hussein’s invasion of Kuwait. From 1992-6 bin Laden and al-Qaeda operated out of Khartoum, the Sudanese capital, where they were joined by members of EIJ (Egyptian Islamic Jihad). EIJ’s leader Ayman al-Zawahiri subsequently became deputy leader of al-Qaeda. In 1996 bin Laden and al-Zawahiri were expelled from Sudan and granted a safe haven by the Taleban regime in the mountains of Afghanistan, which became al-Qaeda’s new headquarters. In 1998 bin Laden, al-Zawahiri and three others (as the �World Islamic Front for Combat Against the Jews and Crusaders’) issued a fatwa calling for the deaths of Americans and their allies, despite the fact that they did not possess the necessary Islamic qualifications to do so.
How is it funded?
Bin Laden is extremely rich himself, having been born into a prominent Saudi family, and he has close ties with wealthy Islamist sympathisers across the Muslim world. Funds are channelled to al-Qaeda from a variety of sources, including hawalas (small money-brokering operations), Islamic charities, fake companies, lightly regulated banking centres (e.g. Dubai and Liechtenstein) and commodities such as Angolan diamonds or Afghan opium, which can be transported easily and traded for cash or weapons. Identifying the sources of funding for al-Qaeda and other Islamic militant groups is a major aspect of counter-terrorism operations against them.
�We love death. The US loves life. That is the difference between us two.’
OSAMA BIN LADEN, November 2001
Banking (#ulink_fede7890-28e1-5234-b99a-64141a0d0e9f)
What do commercial banks do?
Commercial banks, which include high street banks and building societies, operate a fairly simple business model: they borrow money from depositors (those who open an account at the bank and deposit money in it) at low rates of interest, and make a profit by lending it out at higher rates of interest. The sorts of loans offered by banks vary, and include business loans,
overdrafts, career-development loans, and mortgages (in which building societies specialise). Banks must keep hold of a certain amount of money (the �cash reserve ratio’, set by the government) in case depositors wish to withdraw their money. It is vital that banks manage their risk well; some of their riskier loans may default, so banks must set their rates of interest carefully to allow for this and still remain profitable.
What do investment banks do?
Broadly speaking, investment banks help raise capital for clients by investing their money (corporate finance), manage company takeovers (mergers and acquisitions) and trade securities in the global markets. Securities are financial products that are tied to the value of an underlying asset (see Stocks and Bonds and Hedge Funds). Investment banks can structure and sell new and complex types of security, including CDOs (Collateralised Debt Obligations); these contain slices of different debts of varying risk, some of which may be �mortgage-backed’ (see Credit Crunch). Investment banks also seek to profit from trading in the foreign exchange markets and insure other people’s bonds against default by issuing Credit Default Swaps. Investment banks do a lot of lending and borrowing between themselves, lending to each other at a rate of interest known as the LIBOR (London Interbank Offered Rate), which is adjusted on a daily basis.
What was the Glass-Steagall Act?
This was legislation passed in 1933 to separate commercial and investment banking practices in the US. It was introduced after the Wall Street Crash to regulate the banking system and to protect depositors’ money from the riskier practices of investment banking. The Glass-Steagall Act was repealed in 1999, allowing for the creation of �universal’ banks (e.g. Bank of America), which engaged in both commercial and investment operations. Some financial commentators have recently claimed that this deregulation was one cause of the credit crunch, as it allowed former commercial banks such as Citigroup to trade in risky sub-prime mortgage-backed securities and CDOs. In 1999 Citigroup was the largest bank in the US by asset size, but in November 2008 it had to be rescued by a massive US Government bailout having lost vast amounts of money as a result of its sub-prime exposure.
What does the Bank of England do?
The Bank of England is the UK’s central bank, providing banking services both to the government and to the banking system. Its job is to maintain financial and monetary stability in the UK economy (�financial’ relates to finance, which is the commercial activity of providing funds and capital, whereas �monetary’ refers to the amount of money in circulation, its rate of growth and interest rates). The Bank of England issues banknotes, acts as �lender of last resort’ for the other banks, and controls the UK’s gold and foreign exchange reserves. The Bank became independent from the government (which had nationalised it in 1946) in 1997, since when it has been responsible for setting UK interest rates. Its Monetary Policy Committee adjusts interest rates to keep inflation in line with the Chancellor’s annual inflation target stated in the Budget, which is based on the Consumer Price Index.
How do interest rates affect inflation?
Inflation is a general increase in prices across the economy. It is estimated with either the Retail Price Index (RPI) or the Consumer Price Index (CPI), which are calculated by adding together the prices of a selection of goods and services (exactly which ones differ in each index). Inflation occurs when demand (the amount of money being spent in the economy) exceeds supply (the goods and services produced by the economy); this creates competition for goods and services, which pushes prices up. A small amount of inflation is normal in a growing economy, but the Bank of England adjusts interest rates to ensure inflation remains low and stable in order to achieve price stability.
Interest rates control the price of borrowing and the value of saving—if they are low, borrowing is cheap and saving is not especially worthwhile, but when they are high, borrowing is expensive and saving more worthwhile. Adjusting interest rates therefore influences consumers’ spending habits, and controls the demand for goods and services—if demand far exceeds supply, interest rates can be raised to discourage spending and lower demand, whereas if supply exceeds demand (which could cause a general lowering of prices known as deflation), or demand is lower than usual (for example during a recession), interest rates can be lowered to encourage spending. In January 2009, to encourage spending to combat the recession brought on by the credit crunch, the Bank lowered interest rates to 1.5%—the lowest in the Bank’s 315-year history—then lowered them again in February, to 1%, and then again, in March, to 0.5%.
�It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.’
HENRY FORD, US car tycoon
Basque Country/ETA (#ulink_2f83d97e-43ad-5ee8-a745-4878485c1a17)
Where is it?
The Basque Country is a rugged and beautiful region of northern Spain and south-western France that straddles the Pyrenees and borders the Bay of Biscay. It is made up of seven provinces—four in Spain and three in France—and is a popular tourist destination that includes cities such as Bilbao and Pamplona, and the seaside resorts of Biarritz and San SebastiГЎn. The Basque people are one of Europe’s most ancient ethnic groups, and they have fought hard to hold on to their culture and land over the centuries. Their language, Euskara, is one of the oldest in the continent, and isn’t related to any other. The French Basque region (Pays Basque) has mostly avoided the violent struggle for independence associated with its Spanish equivalent (PaГs Vasco).
How is Spain governed?
Compared to most other nations in Western Europe, Spain is remarkable for its decentralised system of government. The 1978 Constitution, which marked the return to democracy following Francisco Franco’s fascist dictatorship, allowed Spain’s local regions to become �autonomous communities’ with their own government and parliament, ruling themselves with differing degrees of independence from the central government in Madrid. There are now 17 of these autonomous communities, including Andalusia in the south, Catalonia in the north-east and the Basque Country in the north (this is composed of three of the four Spanish Basque provinces, while the remaining province, Navarre, is a separate autonomous community). The Basque Country currently enjoys the highest level of autonomy, with education and tax collection among the responsibilities of the region’s parliament.
How did the Spanish Civil War affect the Basque Country?
During the 1936-9 Spanish Civil War the Basque people sided with the republican government against the nationalist forces of General Franco. Franco was the latest in a long line of threats to the Basque Country, which had in its troubled history held off Romans, Vikings, Visigoths and Moors. When Franco came to power in 1939 he sought retribution, and punished the region for its resistance by banning its language and neglecting its economy. It was during Franco’s reign that the group ETA appeared in 1959, and it has remained active ever since.
What is ETA?
ETA stands for Euskadi Ta Azkatasuna (�Basque Homeland and Freedom’). It is a separatist organisation calling for complete independence in all seven provinces of the Basque region in both Spain and France. Spain, the European Union and the US all regard the group as a terrorist organisation, and since forming it has been responsible for killing over 800 people. Police, politicians and the general public have all been victims of ETA’s violent campaign—for example, police chief Melitón Manzanas was murdered in 1968; Spanish Prime Minister Luis Carrero Blanco was assassinated in 1973; and a car bomb set off by ETA killed an American tourist in 1985. ETA’s political wing, Herri Batasuna (�Unity of the People’), was formed in 1978 in reaction to the new Spanish constitution, and fostered close links with the Irish republican party Sinn Féin.
What did the Spanish government do?
In the 1980s, Felipe Gonzalez’s government made a botched attempt at combating ETA by setting up Anti-Terrorist Liberation Groups (GAL); essentially these were mercenaries charged with assassinating key members of the separatist organisation. However, 10 of the 28 people killed by the GAL between 1983-7 turned out to have nothing to do with ETA, which led to the jailing of some of those who had set up the death squads.
Does ETA have public support?
There was strong support for ETA in the Basque provinces during Franco’s reign and into the 1980s: more than half of those surveyed in a poll there in 1979 felt ETA’s militants were �patriots’ or �idealists’. However, in general, support for ETA has waned since the Franco years as the group sought civilian rather than military targets and its actions became increasingly bloody. In 1997, 6 million Spaniards protested against ETA’s killing of a young local councillor from the Basque region.
Recently ETA’s strength has been sapped further; its political wing was banned in 2003, and, despite broken ceasefires and continued car-bomb attacks on politicians, judges and journalists, the Spanish government—under the leadership of José Luis Rodriguez Zapatero since 2004—seems to be winning the battle against the organisation. ETA’s military commander Garikoitz Aspiazu Rubina and suspected leader Javier López Peña were both caught in 2008; in all some 750 suspected members of the organisation have been detained since 2000. In March 2009, ETA suffered another big blow when 29 years of nationalist domination in the Basque Country came to an end as the Basque Nationalist Party failed to muster a majority in the region’s elections. This paved the way for the Socialist Party and Popular Party to create an informal coalition. They strongly support the Basque Country remaining part of Spain, and have promised to boost funding to combat ETA.
Guernica
The Spanish artist Pablo Picasso painted his iconic image of Guernica, a town in the Basque Country, after more than one and a half thousand people were killed when bombs were dropped by the Luftwaffe in 1937, in the first major air raid specifically aimed at killing civilians.
Basquetball
The second-largest Basque city of Vitoria-Gasteiz is home to one of Europe’s top basketball clubs, Tau Ceramica. In addition, the Basque people have produced a number of star sportsmen over the years, including the footballers Xabi Alonso, Mikel Arteta, Didier Deschamps, Bixente Lizarazu; rugby players Serge Blanco and Imanol Harinordoquy; cyclist Miguel Indurain and golfer JosГ© MarГa OlazГЎbal.
Blogging (#ulink_20a4e401-a520-5d09-af13-67f294a77dd3)
What is a blog?
A blog is a page or site on the internet which is updated with material, usually on a regular basis, by a single writer (�blogger’). Bloggers can post anything from breaking news to essays, opinions and diaries, often including photos and links to other websites.
What do bloggers write about?
Bloggers write about anything, from what they ate for supper to who they believe is going to win the next general election. Some see blogs as a quick and easy way to communicate their thoughts to a wide audience, but others may simply write in order to clear their thoughts—an online diary. One unifying factor about the majority of blogs is that they are, to varying degrees, personal: �A blog is a personal diary. A daily pulpit. A collaborative space. A political soapbox. A breaking-news outlet. A collection of links. Your own private thoughts. Memos to the world.’ (Blogger.com)
Are they popular?
Absolutely. Blogging has become a global phenomenon. There are no conclusive statistics on how many blogs there are, but certainly well over 100 million. The popularity of blogs varies enormously, with some attracting few or no visits while others are highly influential and command big readerships.
Who came up with the term?
In 1997 Jorn Barger—an American whose blogs vary from essays on artificial intelligence to James Joyce—came up with the term �web log’ when he began logging a daily list of links to websites he had visited. �Web log’ was shortened to �blog’ by Peter Merholz, a prolific blogger himself, in 1999. However, blogs were in existence before they were given these names. Justin Hall is seen as a pioneer—he began back in 1994 while an intern at Wired magazine. He posted just shy of 5,000 pages worth of entries in 11 years before throwing in the towel.
Dirty laundry
Airing your thoughts on the internet means that anyone might stumble across them, including your employer. In 2004 flight attendant Ellen Simonetti was initially suspended and then fired from her job at the American airline Delta because of photos posted on her blog �Queen of Sky’, in which she wrote about the adventures of an anonymous air hostess. One of the photos showed her dressed in uniform, with the company logo visible, which prompted the airline to take action. Similarly, Catherine Sanderson was sacked in 2006 from her secretarial job when her boss stumbled upon her popular blog, �Petite Anglaise’, about her life as a Brit in Paris. Although she never named her employers, they claimed that the photos of her on the site identified her, and therefore the firm. Sanderson won a groundbreaking case in which she sued the company for wrongful dismissal and has since written a book, also called Petite Anglaise.
Sleazy does it
Matt Drudge (www.drudgereport.com) is one of America’s best-known bloggers. In 1998 the one-time maverick, who now commands great respect, broke the news that the magazine Newsweek had decided against running a story on President Bill Clinton’s liaison with a White House intern from 1995-7. The following day he revealed her name: Monica Lewinsky. His story was published on a Saturday, and was seized upon by other websites, but it was not until the Wednesday that it appeared in the newspapers.
Diplomatic own goal
Arsenal fan David Miliband, who is also the UK’s Foreign Secretary, got into hot water in 2008 when he aired frustrations on his blog about the Champions’ League quarter-final in which his team lost 4-2 to Liverpool and bowed out of the tournament. The comments in his blog, which is part of the Foreign Office’s website, included criticism of Swiss defender Philippe Senderos, who apparently �left half of north London cursing that he was ever let into the country’. An attaché at the Swiss Embassy responded that although the defender may not have had his best game, that was �not a reason for a diplomatic incident between two friendly nations’.
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