Paul Craig Roberts

Two Russian sympathisers stand at a burning check point as
smoke from the burning debris fills the air. (Gleb © Garanich)

Libertarian ideology favors privatization. However, in practice privatization is usually very different in result than libertarian ideology postulates. Almost always, privatization becomes a way for well-connected private interests to loot both the public purse and the general welfare.

Most privatizations, such as those that have occurred in France and UK during the neoliberal era, and in Greece today and Ukraine tomorrow, are lootings of public assets by politically-connected private interests.

Another form of privatization is to turn traditional government functions, such as prison operation and many supply functions of the armed services, such as feeding the troops, over to private companies at a large increase in cost to the public. Essentially, the libertarian ideology is used to provide lucrative public contracts to a few favored persons who then reward the politicians. This is called “free enterprise.”

The privatization of prisons in the US is an example of the extraordinary cost and injustice of privatization. Privatization of prisons requires ever higher rates of incarceration in order to build profitability. The US, supposedly “a land of liberty” has by far the highest incarceration rates of all countries. The “free” US has not only the highest percentage of its population in prison but also the highest absolute number. “Authoritarian” China with four times the US population has fewer citizens in prison.

This article shows how well prison privatization works for well-connected private interests. It also shows the extraordinary shame, corruption, and discredit that prison privatization has brought to the US.

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Patrick Martin

There is considerable support for Russia in eastern Ukraine. A
man loyal to Moscow stands with two banners made from
shields near the Ukraine security agency building. (AFP/Getty)

In separate statements in the US and Europe, President Obama and NATO secretary-general Anders Fogh Rasmussen ratcheted up the threats by US and European imperialism against Russia. Their statements came on the eve of four-party talks set for Thursday in Geneva, with the US, the European Union and their Ukrainian puppet regime facing off against Moscow.

Obama gave an interview to Major Garrett of CBS News, who asked a series of provocative questions suggesting that the White House should step up its campaign of economic warfare against Russia. Before the interview, the White House announced that a new round of economic sanctions had been “prepared” for use against Russia if there was no progress in resolving the crisis in Ukraine.

Obama told CBS that it was “absolutely clear” that Russia had violated Ukrainian sovereignty in annexing Crimea and that it was continuing to do so by supporting “non-state militias” in southern and eastern Ukraine, where there is overwhelming popular hostility to the US-backed right-wing regime in Kiev. Offering no proof for his accusations against Russia, Obama declared: “What I’ve said consistently is that each time Russia takes these kinds of steps, that are designed to destabilize Ukraine and violate their sovereignty, that there are going to be consequences, and what you have already seen is the Russian economy weaker, capital fleeing out of Russia.” In language that suggested possible US support for future Ukrainian membership in NATO—a radical break from previous policy—Obama said, “We don’t need a war. What we do need is a recognition that countries like Ukraine can have relationships with a whole range of their neighbors and it is not up to anybody whether it is Russia or anybody else to make decisions for them.”

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