10/2 hist notes

Central America

Consists of Guatemala, Honduras, el Salvador, costa rica, belize, and Nicaragua

Costa rica is most educated out of central American countries
US has conducted military action in central America since 1821

Guatemala – 1950s.
• Many large American companies owned land there.
• The biggest landowner was the united fruit company (now Chiquita).
• 2% of population owned 90% of the land
• Much of the native owned land was rented out to the US
• Land reform was a big issue in central
• 1951 – Land reform
• Arbenz elected president in 1951. He had been major in guatemalan army.
• He decided to change guatemala’s economy.
• He admired the soviets for their defeat of the germans.
• He gave communists jobs in the government
• Land reform – he broke up huge estates and started to give away pieces of land to
peasants.
• The united fruit co went to the Eisenhower administration and said the
communists were taking over the country.
• 1952 – Arbenz issued the decree 900. It took the land away from all the large
landowners. They compensated landowners for their land.
• Gave large estate owners a tax break and the govt issued bonds to the landowners.
Modeled around American policy in Japan after WWII.
• Cold war paranoia of communists
• Eisenhower admin started to think about getting rid of Arbenz.
• Called in Kermit Roosevelt to get rid of Arbenz.
• Roosevelt said it wouldn’t work because the people of Guatemala didn’t want
Arbenz gone.
• P.B. success
• Headquarters of operation in florida.
• Somoza – Nicaragua ruled by dictator that agreed to help the CIA and gave them
access to airstrips in Nicaragua
• Planted hidden speakers and radio transmitters
• Tried to bribe people in the govt of surrounding countries to make life harder for
Arbenz.
• They tried to cut off the credit of Guatemala. The US cutoff the supply of
guatemala’s oil.
• The CIA planted news stories in other countries saying arbenz was working with
soviets.
 • United Fruit Co started supplying pictures of dead bodies to newspapers saying
that people in arbenz’s govt had killed them.
• Arbenz govt found some of the CIA’s documents to overthrow him and published
them. The CIA denied it.
• CIA contracted people to start bombing Guatemalan cities
• Then cities in Honduras were being bombed.
• The US embassy would play tapes of bombing even when bombs weren’t being
dropped to scare people.
• This happened all throughout 1953
• All kinds of shortages were happening in Guatemala.
• Guatemala went to the UN saying it had to stop and that they weren’t communist.
• June 27, 1954 Arbenz resigned. The army told him that they couldn’t keep going
on like this. Arbenz fled to Cuba.
• Castillo Armas took over after Arbenz.
• He took all of arbenz’s redistributed land and gave it back.
• He imprisoned anyone that worked for arbenz’s government.
• He purged the armies and burned subversive books.
• They began torturing and executing people.
• This started a cycle of violence in Guatemala that would last for 40 years.
• Started repressing the native Guatemalans.

El Salvador
• Similar to Guatemala, most of the wealth was concentrated in the hands of few
people.
• There were two factions struggling for power. The wealthy coffee growers and the
people that believed in ISI. Import substitution industrialization – wanted to make
industrial products to export and make industrial products at home so they didn’t
need to be imported.
• ISI made el Salvador more independent on the US than it had been before. It
benefited the people in the cities at factories.
• Late 1940s, the military had enough with the coups and they took over the govt.
Established a junta, a committee of generals.
• 1960s, Kennedy admin came in and wanted to train people in el Salvador to watch
for communism
• Established the school of the Americas in Panama for this purpose.
• It got a rep as a school of torture.
• The kennedy admin wanted to professionalize the officer corps there so they
could effectively communicate with the US officers.
• All parties (US and central American countries) agreed that they were against the
communists.
• At the same time the peace corps was established.
• 1963 – us govt sent special forces offiers to help out jose medrano. ORDEN
• The idea was to crush any sign of communism before it got big.
 • The people began to call orden “death squad”
• 1960s – liberation theology. Intellectual current through the catholic church.
• Central America was closest to a world that Marx theorized about.
• 1971, the book liberation theology was published. He said that Christians should
recognize the need for liberation from any kind of oppression.
• The soviets tried to take advantage of this through their proxies, the Cubans.
• The US was nervous because we were seeing this in our country.
• 1972 – the US was happy when Duarte was elected. He had been educated at
Notre Dame and had been around liberation theology.
• The army said the election was rigged and that he couldn’t be president.
• The military put an army officer in power.
• They started organizing guerilla groups in the countryside.
• By 1979, the govt was killing 1000 people per month.
• Alcatal battalion, a special unit from ORDEN. They were the death squad.
• The country was on the verge of a civil war.
• The military junta offered Duarte the presidency that they had cheated him out of
before.
• The CIA was paying Duarte to steer him the right way.
• Late 79, Duarte takes power. He begins a land reform program. This one isn’t as
smooth as the one in Guatemala.
• Peasants were beginning to be gunned down. Peasant guerilla movements being
organized.
• 1980 – the archbishop of el Salvador asked the carter administration to quit
sending military aid to el Salvador. Guerillas were capturing this military aid
being sent.
• The death squads killed the archbishop
• The carter admin gave them more aid after this.
• There are 50 different peasant groups fighting the govt by this time.
• May 1980, the govt massacres 600 peasants.
• Oct 1980, these guerilla peasant organizations come together and form FLMN.
• Dec 1980, 3 american nuns were raped and murdered and 2 american land
reformers were killed.
• Next day, carter admin cutoff the military aid to el salvador.

10/7/08
Nicaragua
• Biggest country in central America
• 1963 – Somoza family ruled Nicaragua.
• He was the archetype of the central American dictator. His idea of opposition was
to have none. He was not a nice person.
• Nicaragua had a large military.
• Wealth concentrated at the top was worse in Nicaragua than anywhere else in
central America.
• It was no surprise that there was constant opposition to the Somoza regime
• Cardenal – catholic priest, well versed in liberation theology. He criticized
Somoza fairly openly.
• Late 60s, full blown revolution in the countryside happening.
• By 1979, the opposition had carried the revolution to the capital
• Sandinistas – revolutionaries. They were lead by Daniel Ortega. He was a
Marxist that was friendly with castro and he had many contacts with the soviet
union
• 1979, the Sandinistas overthrew the Somoza regime.
• The Sandinista leaders took over the mansions, cars, servants, etc.
• Some people that were part of the revolution didn’t agree with that. They didn’t
want to be like the Somoza regime.
• Pastora – the toughest Sandinista leader of them all. He went to the palace and
fought Somoza’s guards.
• He didn’t like that Ortega because too friendly with the Cubans and the Soviets
after the revolution.
• The Sandinista leadership tried to kill pastora. He fled the country to costa rica
and took many of his men with him.
• Contras
• ARDE – pastora founded this group
• Calero – engaged in a power struggle with Ortega and lost. He fled to Honduras.
• FDN – Calero’s group

• 80s - Reagan admin very anti-communist. Reagan thought that el Salvador was
so close to America, that they couldn’t have communism there.
• Regan giving money to el salvador
• Reagan sent CIA operatives to make contact with contra groups. They sent
Dwayne Clarige.
• He talked to Calero’s group and then told the CIA that these groups were lazy.
• He sees Pastora’s group and tells CIA that we need to back them. They’re tough,
disciplined, etc.
• The CIA starts funneling money and weapons to both groups (1981).
• Roberto D’aubuisson – called blowtorch bob in America. He was a cold hearted
killer. He had been army officer in el Salvador. Didn’t have many close friends.
He was feared by many.
• Leader of the 1st death squad.
• Now he had increased financial support from Reagan admin. Formed political
party Arena. It was right wing, capitalist, anti-communist.
• December 1981 – he launched operation rescue. Go out in countryside and take
care of the FMLN guerillas. They came upon a village in el salvador, el mozate,
and killed everybody there.
• Clarige asked them about the incident and they denied it.
• Clarige told ambassador to Honduras about it.
• The American government said that they didn’t know anything about it.
• Arena party blamed it on the FLMN.
• Nobody in Washington or Congress believed that it was the FLMN.
• The guerillas in the countryside depended on the FLMN.
• Congress’ response to this was to outlaw all aid to the contras.
• Law passed, Bolend amendment, which said we couldn’t give aid to contras.
• The Reagan admin was not willing to give up after that. Reagan went so far as to
compare the contras to the founding fathers of America, calling them central
American freedom fighters.
• CIA director William Casey said that we could sell something to get around the
law.
• Oliver North – his job was to raise money from wealthy Americans to give
money to the contras.
• He went to his boss, the national security adviser Poindexter, and he went to the
king of Saudi Arabia and the Sultan of Brunai. They agreed to give millions.
• They spent some of this money to buy missiles, toe rockets, stingers, etc from the
CIA.
• There were American hostages being held in Lebanon by Hezbollah. Hezbollah
was backed by Iran. The CIA hooked up with albert hakeen, who knew arms
dealers. Then went through the Israelis.
• They sold these advanced weapons to the government of Iran (who is engaged in
war with Iraq) in exchange for letting these hostages go.
• They were charging the Iranians heavily for the weapons.
• They practically doubled their money. This operation was called the enterprise.
• Someone had the idea that we could buy some arms and then sell them to the
contras. This money belonged to the taxpayers.
• The contras were having trouble. Not making much headway against the
Sandinistas.
• Pastora was being dissed by the enterprise and the CIA. The white house backed
the Calero group. Oliver North hated Pastora.
• CIA director Casey (late 1982) developed a brain tumor. So Oliver North was in
charge of laundering millions of dollars of money and didn’t have much
experience doing it.
• Casey is giving orders from the hospital. He calls Clarige. Clarige says we need
to back the boys in the south.
• They recruit around the country and send them down to Costa Rica and turn them
over to Pastora. Called them UCLAs. Unilaterally controlled latin assets.
• This war continues, Casey dies. A plane crashes with Eugene Hosafis on board.
He had a parachute and jumped out right over Nicaragua. He wouldn’t tell
anyone who he was or what he was doing. The plane was full of weapons.
• Oliver North tells about what happened. Everything becomes uncovered.
• Pastora’s group reinforced by the UCLAs made some progress. They made
airstrips. They had guys go out and make friends with Nicaraguans.
• The war raged for another 10 years or so.
• 1992 – the Sandinistas decided to hold real elections.
• The first thing that had to happen was to stop the fighting.
• Jose –? talked to the FLMN and the war ended then. He was elected president in
1988.
• Presently in el Salvador, Antonio zaca is president.
• Oscar Areas – current president of Costa Rica
• Calero’s group came to Miami and took up the drug trade. When the CIA realized
this they were cut off.
• Pastora’s group blended back into Nicaraguan society.
• Ortega elected president in 2007.
• The final ceasefire was in 1992.
• The Ortega govt started to redistribute land
• El Salvador is being rapidly industrialized.
• Costa Rica is trying to go towards high margin crops, tourism, etc and away from
bananas, etc.

10/9/08
Vietnam
• Chinese conquered Vietnam in 111 BC
• Vietnamese managed to keep their own culture intact over the centuries.
• Haven’t adopted Chinese language or civil organization
• 39 AD – first significant revolt. They kicked the Chinese out for 100 years or
so. Chinese came back and reconquered the country.
• 1858 – napoleon 3rd sent a fleet to establish a French base in Vietnam. French
established a presence in Vietnam.
• Emperor didn’t want any Vietnamese giving the French a hard time so they
would leave. However, they didn’t go leave
• By the turn of the 20th century the Vietnamese were becoming more and more
under French rule.
• The French believed in extracting all they could from a nation. Very harsh
colonialists.
• Early 20th century – ho chi minh – studied in france. In 1918, he wrote letter
to president Wilson wanting the US help in getting rid of French but never
got a response. Left france and studied in soviet union.
• He came to the conclusion that only a violent revolution would get rid of the
French. It didn’t seem to him that any western power would help
• Ho went back to Vietnam and established indo Chinese communist party
• By the 40s they were making headway. Right after WWII, they established
capital, Hanoi, in northern Vietnam and declared Vietnam an independent
country.
• French didn’t like that
• French got colonial troops (from other French colonies) to fight.
• 1945 – 1st indo Chinese war
• French set up puppet govt under Dai. He was the last emperor of the last
dynasty to rule Vietnam.
• Dai said that ho chi minh should be the leader of the country
• 1954 – the battle of Dien Bien Phu.
• Peace talks, it was decided to divide Vietnam into north and south.
• The US sent a small amount of military and financial aid to S Vietnam.
Soviets sent some to N. Vietnam.
• Krushchev was willing to help
• Diem (pronounced Zim)
• Kennedy was never happy with Diem.
• 1963 – Diem’s own generals overthrew him. Speculated that the US and CIA
helped out.
• It threw the south into political disarray.
• The communists were beginning to make inroads in the south.
• National Liberation Front (Vietcong) became active in the south.
• North Vietnamese army operated in the north.
• 1965 – President Johnson decided that we had to send in troops.
• Much debate amongst the Johnson administration. Johnson was swayed by
his sec of defense Mcnamara. He had been president of Ford motor company.
His claim to fame was systems analysis.
• By mid 60s American troops were on their way to Vietnam
• By 1969 there were half a million soldiers there
• Tet offensive - Turning point of the war – jan 30 1968. Tet – Vietnamese new
year on jan 30. Massive offensive launched and there was fighting
everywhere. Over 100 cities and towns in south that Vietcong guerillas
operated. Caused much disorder
• Johnson admin constantly told the public that we were making headway
during Vietnam.
• Tet convinced many Americans that we would never be able to crush these
people. Many in Johnson admin came to the same conclusion.
• Thieu – in charge of S. Vietnam at the time. Govt in S Vietnam was shaky;
much corruption, etc.
• Johnson admin sent more troops and began a bombing campaign.
• The admin realized they wouldn’t be able to win. The North was getting too
much help from the soviets.
• They would have to negotiate to end the war.
• Nixon came into office running on the platform that he had a secret plan to
end the war.
• He wanted Kissinger to talk to other world leaders and make them believe
that Nixon was unstable and could snap and use nuclear weapons. That didn’t
work.
• The plan B was Vietnamization. Gradually ratchet down the troops sent to
Vietnam and leave it to the Vietnamese. ARVN
• 1973 – Kissinger managed to negotiate settlement with Vietnamese
negotiator. Vietnamese were afraid that the soviets would cut a deal behind
their back.
• American troops began to leave Vietnam.
• American money didn’t continue to flow into S Vietnam the way Nixon and
Kissinger believed that it would.
• Summer 1974 – N vietnmese began a defensive against the S Vietnamese
army.
• April 1975 – Saigon fell to the communists. Now known as Ho Chi Minh
city.
• Ho never got to see the final victory, he died in 1969.
• 1976 – they managed to integrate the whole country as the socialist republic
of Vietnam.
• It instantly had problems. There was a communist govt in Cambodia next to
them. Khymer Rouge. Pol Pot headed the Cambodian government. He was on
of the great mass murderers of all time. They began to kill their own citizens.
• Khymer Rouge had Chinese support and Vietnamese had soviet support.
• KR started encroaching on Vietnamese territory trying to claim land they had
lost to the Vietnamese hundreds of years earlier.
• Vietnam invaded Cambodia in 1979. They smashed the khymer rouge and
installed a friendly government.
• Chinese attacked Vietnam in 1979
• Vietnamese kept troops in Cambodia.
• 1980 – Vietnam moved 50000 troops into Laos
• Vietnam had fought constant wars for the last 30 years. Their military
spending was almost all of their budget. Their soviet aid was starting to dry
up. They had old fashioned Leninist collective farms that didn’t work well.
Many problems. Much environmental damage. The US had dropped Agent
Orange which was very toxic to their environment. Vietnam has many birth
defects because of this. They had a series of bad rice harvests (83-88).
• Their neighbors were starting to do business with the western world (china,
Taiwan, etc).
• Vietnam in the mid 80s was a terrible place. Things hadn’t improved since the
30s. Standard of living was terrible
• Things they needed to import became more expensive and their ability to pay
for it went down.
 • Doi Moi – renovation or reform. They intended to modernize Vietnam.
Enlarged finance ministry, reorganized how it would do business by allowing
some private enterprise. Similar to the soviet model bc they had fewer
options.
• They allowed trade unions to spring up locally. If they got too big, the
Vietnamese wouldn’t allow it.
• Started to withdraw troops from Laos and Cambodia. By 1989 they were all
back home.
• They still weren’t making very much progress.
• Vietnamese came to the conclusion that they had to do business with the
United States if they were going to attempt any kind of capitalism.
• Many Americans didn’t want to do business with them.
• The US had imposed embargo in 1975 on Vietnam. Some wanted this
embargo lifted.
• 1994 diplomatic relations with the Peoples Republic were reestablished.
• Doi Moi more of less worked out for the Vietnamese as they’ve started to
inch toward capitalism.
• They made a lot of progress from 86 to 97.
• In 1997 – problem in Asia with currency. There was a real estate bubble, it
popped, and then the IMF bailed them out. Tokyo real estate was enormously
overvalued.
• Forex – Japanese housewives trading currencies
• Asian Contagion – it spread all over Asia
• It didn’t affect Vietnam because they didn’t have foreign investments.
• Their economy has been doing very well lately. However they still have their
problems.

10/14/08
China
• China has historically had trouble feeding its people.
• Mao and communists take power in 1949 (year of shocks).
• From 1949 to 1957, china was engaged in the transition to socialism.
• The first few years the soviets helped out China.
• The soviets shipped food, technology, sent engineers, etc to help china.
• The soviets tried to use their own model.
• The communists nationalized all major industries and the financial system. Took
land and redistributed it to peasants. Abolished private enterprise altogether.
• Stalin dies in 1953 and Krushchev took power. This is when the trouble started
between china and the soviets.
• Mao didn’t like K’s attempt with peace with the west and he didn’t like him
denouncing Stalin.
• The soviets cut back on their aid to china, which angered Mao.
• Mao realized that they were still dependent on outsiders for many things and he
determined that china needed to be self sufficient.
• Mao collectivized the farms so that everyone in a given village would own the
land, work the land, be responsible for what it produced. There were quotas set for
production.
• 1955, agricultural production began to drop. Mao organized farms into even
bigger units, called communes.
• Large communes were sets of villages responsible for certain amounts of crops.
• That didn’t work out so well either, but Mao pressed ahead.
• People melted down all the metal they could find in an attempt to industrialize.
• Mao wanted this kind of thinking because he thought
• Political control was centralized in Beijing so there were fewer people going out
and checking on the villages.
• Massive famine in 1960
• The Chinese had bought into a soviet crop science, which was not that good.
• Lysenko, Russian agriculturalist – close planting. He said people should plant
crops very close together to get more food out of the same amount of space. It
didn’t work out.
• Mao blamed everybody else for the famine problem. He blamed intellectuals,
commune leaders, fellow party officials, the Americans bc of preoccupying china
with the Korean war.
• He decided to give someone else a shot. He turned power over to three men. Zhou
Enlai, Deng Xiaoping were the most important. 3rd was
• Enlai was very intelligent, smart man
• Deng was like mao; self taught, metal worker. He was clever rather than
intelligent. He could talk people into things.
• Peoples liberation Army, largest army in the world
• Mao was going to give the 3 men five years to turn things around.
• 1st, they wanted to get rid of huge agricultural collectives and give the land back
to individual farmers.
• They approached soviets about importing modern machine tools.
• The soviets charged the Chinese top dollar on old machinery and overcharged on
grain.
• Mao realized they were still depending on outsiders.
• In the meantime Mao was reading up on new ways to change the country.
• After the five years, Mao decides to make a comeback.
• 1966, he stages a media event to show everyone even though he’s old, he can still
run things. He gave a speech where he declared cultural revolution in China.
• The cultural revolution was an attempt for them to go back to their ideological
roots.
• He picked five people to help him. One was his wife.
• Deng was sent out in the country to be a metal worker. Zhou remained in Beijing
but wasn’t as powerful as he used to be.
• Red guards, the young people could join. Mao asked red guards to lead the
cultural revolution. He closed schools down so that they wouldn’t interfere with
the red guards.
• The red guards would abuse their teachers, old people, etc. None of this
accomplished much.
• The production fell again, industrial and agricultural.
• The red guards would send people to the countryside to be agricultural slaves if
they didn’t like them (or to coal mines).
• The disorder became so widespread that the military stepped in and started to
pressure the government.
• To avoid trouble with the military, Mao tried to restrain the red guards. Disorder
continued.
• By early 68, the cultural revolution had become violent.
• In early 1969, Mao allowed the army to round up the worst red guard units and
send them to the countryside for reeducation.
• Mao blamed his cohorts for the failure of the cultural revolution.
• 1972, Mao and Zhou both had heart attacks (didn’t die).
• Zhou’s heart attack had been brought on by early stages of lung cancer.
• Mao’s diaphragm was beginning to go.
• Zhou recovered faster than Mao, so he took the reigns. When Kissinger went to
Beijing, he mostly met with Zhou.
• Zhou went back to the method of getting people to learn before they do things.
1972-1984, the first real wave of reform in China.
• They decided to focus on agriculture. If a country cannot feed itself, it won’t get
by.
• Zhou and Deng got rid of the communes for the second time and tried to
emphasize the family farm. If a family can get by then so can a village, etc.
• Don’t have to grow everything, focus on certain things.
• They began early trade with Europe and the United States. Imported raw materials
and other basic things (electric motors, etc). They exported things like shovels,
parts, etc.
• Mid 80s, communists decided to tackle more complex problems in urban areas.
• Many of these industrial projects took place at sea ports like Shanghai, so they
could get things in from boats.
• They were importing ore.
• Had the idea to dam the river for hydroelectric power.
• Mid 80s to late 80s, second wave. The leadership was already thinking about a
third wave.
• Deng was in power by now. He thought that the only way China would make the
next step was to have political reform.
• The political reform backfired and got out of hand.
• April, May 1989, Tieneman square.
 • Bush’s approach was to let it run its course. Everyone in the US thought that this
was the end of the Chinese communist party.
• June 4, the govt cracked down on tieneman protesters.
• Many soldiers and protesters were killed.
• Deng was swept out of the politburo. Jiang Zemin was in power. He had been the
mayor of shanghai. He crushed the protest in Shanghai without killing anyone.
• Jiang became the general secretary through 2002. He developed the “three
represents” party program. It was a change in Chinese communist ideology.
• First, it said the communist party must be representative of advanced social and
productive forces. This means that the party will now recognize and represent
business interests, which legitimizes capitalism in China.
• Second, the communist part will represent advanced culture. This means that they
are reaffirming the primacy of the communist party. They aren’t giving up
communism.
• Third, they will represent the interest of the overwhelming majority. That
reaffirms Chinese national interests.
• People in the west realized that the Chinese were trying to be a major player in
global capitalism and look out for their interests.
• This plan looked out for China’s interests, not mutual interests (mercantilism).
• Hu Jintao because general secretary of communist party in 2002.
• Cronyism, corruption, wealth concentrated at the top.
• New problems like environmental damage, energy, and raw materials.
• Hu was an engineer so he understands how economics and industry works.
• If they want something, they’ll buy it.
• They think that if they can provide enough jobs, then it will keep down protests.
They need to provide a quarter million jobs a year just to keep the peace.

10/21/08
Africa
• Nkrumah – Ghana
• Lumumba – Congo
• Banda – Malawi
• Kenyatta – Kenya
• Nyerere – Tanzania
• Obote – Uganda
• Nasser – Egypt
• Mondlane – Mozambique
• Cabral – Guinea-Bissau
• Barre – Somalia
• Toure – Rep of Guinea
• Bella – Algeria
• Mugabe – Zimbabwe
• Africa is most colonized continent on the planet.
• Northern African is arab dominated
• Sub-saharan Africa is a range of many tribes, ethic groups, and religions.
• Southern Africa. Two countries that were apartheid regimes.
• Africa is rich with natural resources.
• Most African states gained independence in the 60s-70s
• Problems in Africa:
o Legacy of European colonialism
o Comparative trade disadvantage
o Legacy of the Cold War.
o Corporate exploitation and corruption
o Health crises (shortage of clean water, little healthcare, aids).
• Pan-africanists and pan-arabists
• In the 60s, many African countries were becoming independent.
• Many Marxist undertones to these ideas. They were nonaligned Marxists (they
weren’t with the soviets).
• The U.S. thought they were with the soviets. Patrice Lumumba was overthrown
and killed.
• Many proxy wars were always going on.
• Americans and Soviets were involved in many of the wars.
• Civil war in Somalia (1986). Overthrown and a warlord took over.
• Angolan civil war (1975-2002) was most important
• MPLA vs. FNLA and unita, led by jonas s.
• Before the war was over, s Africa, US, soviets, etc were all involved in the
Angolan civil war.
• Cold war essentially lasted in Africa until 2002.
• Coltan discovered in Africa, greasy soil with traces of a rare metal used in
microelectronics industry. Africa is probably the only source for it.
• Coltan mining is one of the biggest factors in deforestation in central Africa.
People (and children) work in these mines for long hours.
• Africa also has lots of oil.
• Central Africa produces 4 million barrels of oil a day.
• The US gets 16% of its oil from sub-Saharan Africa.
• 117 billion barrels of crude oil in reserves.
• Bush gave command (Africom)
• Central command responsible for Middle East, southern command for latin
America, now theres African command.
• It’s a measure of how vital the government thinks African oil is and will be.
• After the cold war, 3 big players in Africa: Russia, the US, and China.
• They all have different techniques
• The Russian technique is heavy handed, bribe people at the top, offer arms deals
(or military aid) and tie them to commercial deals.
• Morocco – produces phosphate for fertilizer.
• Early 90s, as the Russians were recovering, they went to the moroccans to get
trade deals for phosphates and they agreed. Now the price of phosphate is going
up, the Moroccans want to renegotiate.
• Gazprom – the Russian national gas company. They went to the Algerians to help
build pipelines. Algeria has become Western Europe’s third biggest supplier of
natural gas.
• Now Russians have their hands in two of the three biggest sources of natural gas.
• Russians also have a deal with Nigerians. Building a pipeline out of Nigeria
across the Sahara. Similar deal with Libya.
• Russians don’t have a good reputation in Africa.
• The US is the oldest of the three big players.
• The US technique is:
o arms deals and foreign aid
o the world bank and the IMF
o most common and most successful, let US companies make their own
deals.
• Chevron in Nigeria.
• The US used to be the major player in Sudan.
• In 1979, leader of Sudan got mad at the soviets. Sudan invited American oil
companies to test for oil and Chevron found lots of oil. When chevron was going
to start drilling, a civil war broke out. Chevron pulled out of the deal so they sold
their oil concessions to China. Chevron went to Chad next to Sudan and started
drilling there.
• In the last few years, chad’s oil production has plummeted.
• However, oil is still flowing in Sudan.
• Sudanese government has sent a militia, Janjaweed, to kill everyone in villages
and take their land. They use rape as a weapon of war.
• It is believed that the Chinese are financing it.
• The Chinese are the newest players in Africa. Their technique is to be really
subtle. They don’t talk about arms deals, etc. They just come in and ask
permission to build different things in Africa. After they do this, then they talk
business about resource deals. The African countries could still say no but they
haven’t.
• African countries aren’t used to other countries being nice to them.
• They’ve done this in nearly all African countries and its paid off.
• Sinopec, Chinese oil company, is a government entity.
• The US objective is to secure these sources of oil to us.
• West African oil has many advantages.
• Africa, Central America, and Vietnam all have a legacy after the cold war. Now
things are about money or strategic position instead of ideology.
• All three have tried to get away from commodity based economies. The central
Americans don’t want to depend on bananas and coffee, Africans don’t want to be
 at the mercy of people who want their resources. They all want to raise their
standards of living.
• All three want things that are at odds with what the US wants.
• All three have seen their societies militarize beyond all reasonableness and
constant warfare.

10/23/08
Economics – Liberalism
• Liberalism – originated with Adam Smith in the 18th century.
• Smith recommended that less government intervention would be beneficial.
• Fewer, lower tariffs is better off.
• Free trade is best and only way for a nation to develop.
• Franklin and Jefferson thought it would be better if we didn’t have so much
manufacturing.
• This unfettered liberal capitalism results in a concentration of wealth at the top
and doesn’t distribute wealth equally.
• This liberal capitalism has a tendency to produce bubbles (people investing in
things they believe will be profitable).
• Belief, perception, faith
• Bubbles defy demand.
• There was a telegraph bubble in 1840s when telegraph was new technology.
Western union was at the head of this. The bubble popped and many companies in
it were shutdown. WU prevailed.
• Railroad bubble. Bubble popped in 1894
• Early 90s, consolidation bubble.
• Private equity company, CCC, gathered $ from people promising a higher return
on income. They came to consolidation firm to invest in these businesses. CCC
would go around trying to buy these different businesses. Once they owned many
businesses, they went public on the market. They sold stock, investors bought
stock, they became more profitable. They were consolidating many heating and
air companies. This consolidation bubble eventually popped.
• The railroad bubble allowed many companies to become recognized nationally.
Also, monopolies emerged.
• Standard oil became Exxon.
• The most significant change to come out of this liberal capitalism is a consumer
economy (consumerism).
• Consumerism is the will to purchase goods for leisure, luxury, status, and fashion
in addition to utility.
• Businesses accelerated this idea of consumerism through:
o mass production
o marketing
o planned obsolescence
• Liberalism is the system. The govt does its best to stay out of the way of the
market.
• 1929 ended this with the great depression.
• The great depression likely had something to do with a stock bubble.
• Unemployment had been rising before 1929.
• Wealth had been increasingly concentrated at the top.
• Trouble in the agricultural sector.
• The fed hardly did anything when the depression happened.
• At the time, US dollars were backed by gold, so the fed couldn’t do as much as
they’re able to do now.
• FDR’s adviser Eccles blamed the depression at the concentration of wealth.
People couldn’t buy at the same rate they had been buying things, factories laying
people off further raised unemployment.
• John Maynard Keynes, British economist had the most important theory on the
depression. He thought that:
o Full unemployment is necessary to keep the economy going. Liberalism
didn’t believe this was necessary, but Keynes had proof of it.
o If you can’t depend on private industry to do it, then the government has
to intervene. Some government spending will help startup the business
cycle.
• Keynes’ ideas became the basis for the U.S. economy for 50 years.
• The IMF, World Bank, Bretton Woods system (government intervention to keep
currencies stable), and Marshall Plan were all built around Keynesian theory.
• FDR’s government spending during the 30s based on Keynesian theory
establishes numerous agencies to make jobs.
• Keynesian theory was basis of US economic policies until late 60s when
stagflation occurred. According the Keynesian theory, this shouldn’t have
happened.
• At the height of stagflation in the early 70s, unemployment was at 7.7% and
inflation was at 13%.
• Nixon put wage and price controls on everything, which didn’t work.
• Economic competition from Europe and Japan, high energy costs (oil prices going
up in 73), and low savings rate were all causes of stagflation. Also, the cost of the
Vietnam War and healthcare costs were lesser speculated causes.
• The decision was made that dollars would not be backed by gold now, so that the
government could print more money that wasn’t backed by gold.
• The time was right for a new approach.
• People called monetarists (Milton Friedman). He was a prof at the university of
Chicago.
• He said that the real problem was the size of the money supply. Quit worrying
about employment and the fluctuation of markets.
• Money supply can be changed by interest rates, printing more or less money,
taxes, govt spending, etc.
 • Arthur Laffer was able to really sell Friedman’s economic idea. He was an
economics professor in California. Laffer curve. Y axis was govt revenue and x
axis is the tax rate. To find the most govt revenue, the tax percentage must be
somewhere in between 0% and 100%.
• The most important convert to the laffer curve was Reagan.
• The curve suggested lower taxes.
• Reagan was able to sell this plan to the American people saying he would cut
taxes.
• The birth of neo-liberalism happened when Reagan came into power with this
plan.
• Neo-liberalism:
o The market rules. No government intervention, let market fix itself.
Domestically, lower taxes, cut government spending. They passed the
ERTA (economic recovery act of 1981). It was a tax cut (dropped from
71% to 50%). However, this failed. Foreign trade aspect, the Reagan
admin was lax about it. Less barriers to foreign trade, but they weren’t as
concerned as with the domestic side.
o Deregulation.
o Privatization where possible.
• After fall of Soviet Union, the US took a serious interest in the foreign aspect of
the market rules. There had to be some way to manage what the third world did,
Russian affairs, etc.
• Late 80s, the start of an American effort to knock down trade barriers.
• GATT (general agreement on trade and tariffs) – a continuous conference.
General discussion of how international trade should be conducted.
• G7, the seven big industrial countries, WTO, all forums for managing
international trade.
• These forums were multilateral.
• Main significance of this neo-liberalism is the foundation behind globalization. It
is the theory behind it. The less government, the better. Governments shouldn’t
subsidize products.
• The four modernizations in hunts book, Chinese econ section

10/28/08
Globalization
• Greater transborder data flow, greater international trade, etc. Growth in the
service sector
• Other contributions to the start of globalization: IT technology
• IT technology:
o Microsoft innovated top-down programming. Microprocessor speed and
miniaturization were also important.
 o The government invested in these innovations
o Industrial policy: government financing of technology
o The internet also helped push the IT revolution. Came from Arpanet.
o Satellites
o All of these things constituted a communications infrastructure that allows
information to immediately travel across borders.
• Labor strategies were also important in globalization (outsourcing, etc).
• Production strategy
o Agile manufacturing – the ability to improve a product while it’s still
being assembled to keep up with competitors
o Supply chain management – the ability to manage, costwise and
logistically, everything you might need in your manufacturing process.
Vertical integration
o JIT – just in time
• Edwards Dimmings – engineer during WWII, expert on mfg. The govt hired him
to make mfg more efficient in this country. He went to Japan and he became the
manufacturing guru for Japan, helping them exponentially. He taught them to
focus on quality, not quantity to save money.
• By 1970s, the US auto industry was interested in talking to Dimmings for help.
He came to Ford and told them to negotiate longer contracts with unions so they’d
know what their costs would be.
• Dimmings’ theories are still in use.
• John Boyd – had been a fighter pilot in Korea. He began noticing that American
jets always shot down the Chinese and n Korean jets, even though they were
slower and not as good. He came up with the ooda loop theory. Observe, orient,
decide, act. Then the process starts over again.
• In 1980s, IBM hired Boyd. Boyd figured out that IBM wasn’t moving fast enough
to keep up with competition.
• These strategies helped globalization in the 1980s.
• Increased privatization. Many companies looks at the united states and wanted to
emulate us.
o The Russian national gas co was sold to private investors.
o ARAMCO oil.
o The purchasing of water, food, etc. ¾ of fresh water consumed in Israel
comes from Turkey by way of private businesses.
• The growth and development of new financial markets and new financial players.
• In 80s, the US govt made a push to standardize investor reporting across borders.
• Bonds were given national guarantees
• Sovereign wealth funds
• Some countries accumulate lots of foreign currency. They take that money, put it
in a fund called sovereign wealth funds to invest strategically around the globe in
ways to benefit their country.
• Benefits of globalization: cheaper
 o 1981, 1.5 billion people living on less than $1 a day. In 2007, that has
reduced to under 1 billion.
o Income inequality across borders has gone down.
o Total life expectancy has gone up by 4.5 years since 1981 (wars and HIV
in Africa taken out of the equation).
o Helped increase literacy
o Percentage of children in the labor force has fallen by 1%.
• Anti-globalization: it puts poorer countries at a disadvantage.
• Fair trade movement – labeling, price, price floor. Free trade advocates disagree
saying that the prices should be based on supply and demand.

Political side of globalization

• After the cold war
• Bush admitted he wasn’t a visionary person, he was a realist. He was going to do
what was in the interest if the US.
• New visions for after the cold war
o Isolationism – Pat Buchanan advocated this.
o Realism – bush was a realist. There was an opposition to that inside the
government. In august 1990, Saddam Hussein invaded Kuwait and
instantly had control over much of the world’s oil supply. Bush said it was
in the interest of the United States to intervene. It also put him at the gates
of Saudi oil, so something needed to be done.
• Realism was the ruling idea until 1992. The UN called on the bush administration
before the election to help in Somalia. In December, Bush ordered American
troops to Somalia.
• Clinton comes in and tries to continue this realism.
• In 1994, Haiti comes up.
• What finally killed the pretense of realism was Bosnia. The Serbs were having
genocide in Bosnia. The Europeans and the United States stood by. In 1993,
NATO launched a bombing campaign in Serbia. Clinton admin tried to frame it as
realism foreign policy, but it was not.

10/30/08
• 12 terms, pick 5 to define on the exam
• Short answers, IDs, and essay for final
• 2nd paper
• After the cold war, the US was having a unipolar moment (we were the lone
superpower).
• 1992 election – bush, Clinton, ross perot.
• Clinton admin began calling their foreign policy “enlargement.” They would react
to events where necessary and take action where possible.
• No one had a suitable replacement for containment.
• The only people that had a view of what our foreign policy should be were the
neo-conservatives.
• The neo-cons were democrats.
• They are not conservatives. They believe that nature is in a constant state of
change. They believe in creative destruction, if you don’t like something, you
need to destroy it to make something better.
• Foundation of neo-conservative thought, anti-modernist philosophy.
• They believed human consciousness was changed by relativism
• Leo Strauss – believed that Machiavelli released secrets with The Prince that
weren’t meant to be known.
• He said that liberalism is the first wave of modernity, then communism is the
second, and the third wave of modernity is fascism.
• 1. There is absolute good and evil in the world. Two completely opposing ideas.
• The philosophy of Strauss is what underlies the neo-conservative ideas.
• Henry “Scoop” Jackson, not a neo-conservative, but had staff that were anti-
modernists. He was the foremost opponent of Détente. He was a very boring
public speaker.
• Their mission was that the US should combat evil in the world.
• 3. Strategic current – Wohlstetter. In his youth, he belonged to a Leninist group.
He said that mutually assured destruction was not only a bad idea militarily, but it
was immoral. He said that we need to be more strategic with our fighting and then
let them respond. He developed his theories to fighting and winning a nuclear
war.
• Chaliabi – Iraqi dissenter, came to the university of Chicago and studied under
Strauss and Wohlstetter. There was talk that he would be the head of a US setup
govt in Iraq.
• Elliott Abrams – served on Jackson’s staff, Harvard graduate. Indicted and
convicted to lying to congress about money being sent to contras in Central
America and was later pardoned
• Douglas Feith
• Khalilzad – bush admin’s first ambassador to Iraq. Wohlstetter’s student at
Chicago.
• Pipes – head of national security council during Reagan admin.
• Paul Wolfowitz – deputy secretary of defense. Studied under Strauss and
Wohlstetter. Convinced president Bush that there was no other option than to
invade Iraq.
• Richard Pearl
• 1989, francis fukuyama, student of Wolfowitz, wrote “the end of history and the
last man” His thesis is that once the soviet union collapsed, history ended (the
idea that there could be an alternative to democracy was gone forever). It was the
final ultimate triumph of the capitalist democracy. His biggest criticism is that the
world is too complex to decide that.
 • Samuel Huntington – wrote “the clash of civilizations.” He said that there are
civilizations (Islamic, Buddhist, western European, etc) that will eventually come
into conflict. Most likely, the Islamic world will come into conflict with the west.
• From the end of the cold war up until now, neo-conservatives have been the only
coherent worldview of US foreign policy (opinion). Realism and neo-
conservatism is the battle between order and justice.

11/4/08
• Mid 90s, project for a new American century (PNAC). Wanted the 21st century to
belong to the US.
• Address potential threats or problems before they arose.
• 98, they sent a letter to Clinton saying they thought Saddam Hussein needed to be
removed from power.
• The neo-cons view the world in terms of good and evil. Only wanted justice (not
order).
• Similar view in the Muslim world (justice seeking).
• Islam composed of Sunnis and Shias, Sunnis are by far the majority of Muslims.
• Largest political center of Sunni Islam is in Saudi Arabia. They have a
fundamentalist state religion called Wahabism. It is also a political orientation. It
used to refer to your family ties.
• The Wahabis were rivals to the Al Saud (the family that founded Saudi Arabia).
Sometimes allies, sometimes enemies.
• Abdul Azziz Ibn Saud – the founder of modern Saudi Arabia. Brilliant, smart
military commander.
• He gradually defeated various clans and foreign groups to unify the country piece
by piece.
• Wahabis in charge of education and religion and Al Saud would be in charge
politically when modern Saudi Arabia began.
• Use Salafi now instead of Wahabi.
• Very fundamentalist sect of Islam.
• Jihadism – Egypt was the place for it in the 1960s.
• There were tenets to it, not just holy war. War should be conducted according to
rules. (in Christianity this is referred to as just war).
o Shouldn’t kill those that aren’t combatants or that cannot fight back.
o Ulema – a group of scholars that have the authority to decide on a religion
issue.
o Suicide was prohibited.
o Islam did recognize martyrs (spur of the moment, not planned).
• Muslim Brotherhood – 1960s, fundamentalist group established. They thought
that the Egyptian government was too oppressive, they didn’t like the western
influences in Egypt, didn’t like modernization in Egypt.
• They were known as terrorists. They were a threat to the government’s power.
• They suffered in Egypt and many members fled to Saudi Arabia where the
Wahabis took them in.
• Many of them became scholars at the Islamic university of Medina.
• They opened the door for foreigners to study in Saudi Arabia.
• Harsher form of what they represented emerged from them. He was Sayeed Qutb,
a scholar of Muslim brotherhood. He was the intellectual godfather of Osama Bin
Laden.
• He was a poet and a writer, constantly criticizing the Egyptian government. Wrote
“Social Justice” where he critiqued things about the government. He Came to the
US and studied, then went back to Egypt. He was jailed and tortured. He got out
and began writing extensively on Islam itself, completely reinterpreting it.
• The first thing he said was, because there was no Caliphate, you don’t have to
abide by the old ideas.
• Caliph – ruler of Islamic world that ruled the Caliphate.
• People were willing to listen because he had a social message that people wanted
to hear.
• He had the idea of Takfir, or excommunication. Underground, guerilla version of
Islam.
• He also changed the protection of the people of the book. The idea that Jews and
Christians are people of the book (Old Testament). Qutb said that didn’t matter
and that other Muslims were fair game for Jihad if they didn’t think the same.
• He predicted a clash of civilizations between Islam and the west.
• He met and befriended Abdullah Azzam in Saudi Arabia. Azzam was a Palestinian
scholar that shared many of Qutb’s ideas, but he was more scholarly about it. He
worked to give some of Qutb’s ideas a more legit grounding in Islam.
• Azzam had the idea the Jihad was not something you choose, but when the threat
arises, it is an obligation for Muslims to take part.
• None of this got much attention until one thing happened. December 1979, the
Soviets invasion of Afghanistan.
• Almost every Islamic religious scholar said it was a time for Jihad.
• The afghan resistance, Mujahadeen, meant that you were as good as dead until the
Jihad was over. The idea that Jihad was obligatory to Muslims became very
important all of a sudden.
• Azzam and his star student, Osama Bin Laden, went to be Mujahadeen in the war.
• Bin Laden construction has been long time associates of the Bush family.
• Osama never really fit in.
• The soviet invasion gave him a purpose in life. He went to Afghanistan to fight
the Soviets.
• Azzam was killed by soviets in 1989 before the war was over. They personally
targeted him.
• When the war was over, the purpose was taken away. Osama went back to Saudi
Arabia.
 • Americans stayed in Saudi Arabia after next war, and American culture soon
followed.
• Osama began criticizing the Saudi government more and more.
• Qutbism believed in the reestablishment of a Caliphate (Osama was a follower of
this thought).
• Bin Laden’s version of Jihad was aimed at foreigners (Americans).
• They reject mysticism (Sufism). Qutbism also reject the idea of independent
reasoning. There are still religious questions open and undecided. They say that
all religious questions are settled, and there is no grey area.
• Deobandi – another sect of Islam, branch that the Taliban belonged to. Their Jihad
is similar to Osama’s in that there aren’t many innocent bystanders and foreigners
are mainly the target. They do however embrace mysticism.
• All of these Jihadists are somewhat a reaction to foreign oppression.
• None of the Jihadist ideas contained suicide. This came from Iran.
• 1979, war between Iran and Iraq. Iran started sending people into battle unarmed.
They used teenagers to clear minefields. Ayatollah expanded that idea of
martyrdom to include deliberate suicide.
• 13 year old boy strapped RPG grenades on him and laid down under and Iraqi
tank and set them off.
• Istishhad martyrdom. Now it can be planned beforehand and for political reasons,
not just religious reasons.
• This idea isn’t much different from what happens in many other places in the
world. It is all a reaction of feelings of hopelessness and anxiety stirred up by men
with other motives.

11/6/08
• “Traditional Jihad” in Saudi Arabia, as opposed to radical jihad.
• Shia regime in Iran. Their goal is to extend Iranian influence, prepare the way for
the Mahdi, the 12th Imam. Establish a theocratic state with strict Islamic law.
• Iran’s form of Jihad is radical, anything goes.
• Third form of radical Shia in Lebanon, the terrorist group Hezbollah. They want
to unify Lebanon, prepare the way for the Mahdi, and destroy Israel.
• Qutbism, reestablish the caliphate, destroy Israel, and defeat the west. Has almost
no religious legitimacy at all.
• GWOT, global war on terror.
• 1972 olympic games in Munich, the first big terrorist act that was widely
recognized. Black September, Palestinian group.
• The Palestinian Liberation Organization was the terrorist organization in the
1970s.
• March 1973, US ambassador to Sudan and other diplomats were assassinated at
the Saudi Arabian embassy by Black September.
• Abu Nidal, freelance terrorist, with no political objectives. Sold his services to
different groups. Sept 73, he seized the Saudi embassy in Paris.
 • “Carlos the Jacker,” another freelance terrorist. Tried to blow up a building where
OPEC was meeting in 75.
• Irani revolution, 79.
• April 1983, CIA station chief in Beirut and 2 others were killed by small terrorist
group called Islamic Jihad by a truck bomb.
• Soon after that, 2 more truck bombings by Islamic Jihad. 58 French soldiers and
241 marines were killed.
• New CIA station chief in Beirut, William Buckley, was kidnapped, tortured, and
eventually killed.
• That prompted the CIA to have their own anti-terrorist force.
• FBI expanded their anti-terrorist forces.
• Significant responses to 9/11. Invasion of Afghanistan. Homeland security started
to freeze assets of known terrorist groups.
• Islamic fascism – first referred to ayatollahs in Iran.
• Fascism is nationalist, populist, generally a militant movement.
• Islamofascism groups everything together, when there are many separate things
going on.
• Bigger emphasis on diplomacy.
• More of an emphasis on covert action. Ford banned covert assassination in the
70s. Very successful aspect of the campaign in Iraq.
• Started to recognize that al Qaeda and other groups were recruiting people
through identity politics. Get someone that can be identified with.
• Al Qaeda has recruited for years through this idea of identity politics.
• The Sunni Awakening – The Sunnis have turned against al qaeda turning some of
them in to the Americans.
• There’s been a wider Muslim backlash against Al Qaeda.
• Important: The one thing they want to achieve is to bring a settlement amongst the
Palestinians and the Israelis.

11/11/08
Transnational Crime
• Fragmentation theory – John Rapley and Robert Kaplan
• When the Roman Empire fell, Europe and all the countries began to change. More
crimes, military and political power became diffused. As nation states began to
rise, so did capitalism. National armies protecting trade routes, etc.
• They are saying this system is starting to fray around the edges because of
globalization. Capital and people are becoming increasingly mobile. Capital has
less taxation.
• The inequality of the distribution of wealth became more pronounced in third
world countries.
• The IMF and the World Bank was demanding countries to be like us.
• This has lead to an erosion of national power. Local powers (gangs, cartels,
mercenary armies) begin to pop up.
• Transnational crime
o Possess similar firepower, international intelligence (and
counterintelligence) capabilities, intercontinental transport and power
projection.
• Guinea-Bissau – cocaine warehouse of the universe. Most of the country is
controlled by Colombian drug dealers. Cocaine headed to Europe passes through
here. Very few police. Many nice cars, clubs, etc.
• The US had been cracking down on drugs, so by using this country, they aren’t
hassled traveling across the ocean.
• This shows that legitimate businesses aren’t the only ones that globalize.
• Pablo Escobar
• In the 70s, Escobar had the idea to get together all of the major Colombian drug
dealers to form the Medillian Cartel.
• He sought and acquired political power, paid off officials. He also believed in
superior firepower. He wanted military firepower.
• He was also innovative in money laundering. He bought legitimate businesses all
over the world the launder the drug money on an international scale. He was the
7th richest man in the world at one point.
• Around 1989, they managed to kill Escobar.
• After Escobar, the Cali cartel arose. Gilberto Rodriguez
• They took the innovations to a new level. They developed a counterintelligence
capability. They invested millions in surveillance equipment, bought off people at
phone companies, etc.
• Afghanistan – grow opium poppies and cannabis indica.
• Opium poppies were easier to grow and much more profitable than growing
wheat.
• Afghanistan is very poor with little infrastructure. Kunduz is the prime hub for the
shipment of opium and hashish from Afghanistan.
• About 90% of heroin originates from Afghani opium. They produce enough for
10 million addicts a year.
• The Taliban was always against opium, but now they seem to encourage it.
• Mara Salvatrucha (MS-13) – Lafayette park and McArthur park in west los
angeles. They were hassled by other gangs there, so they formed their own.
• 18th street gang – MS13 decided to completely take out the 18th st gang (1984-
1985).
• MS-13 adopted the 13 as a tribute to the Mexican mafia.
• After awhile, they spread across the country. New Jersey was the first place on the
east coast. They have around 300,000 members, not all latino.
• Juan Carlos Rivas – well educated, clean cut MS-13 gang member. He had the
idea that MS-13 should be an international criminal enterprise. He got HP to build
him an intelligence database modeled around the CIA cactus system.
 • HP told the government what Rivas has proposed (Rivas Moreiera is his actual
last name). He went to prison a few years ago for assault. The judge said that he
was the smartest man he had ever seen in his courtroom.
• MS-13 has military grade weapons, operate in 17 different countries, have
counterintelligence capabilities.
• It was proposed that MS-13 was forming an alliance with Al Qaeda.
• Globalization diffuses power.

11/13/08
Russia
• Jihad vs. McWorld – Benjamin Barber
• Friedman is in the middle of the globalization argument, not taking sides.
• Oligarchy –
• Perestroika aimed to break the hold of the oligarchy on the economy and the
political system.
• Boris Yeltsin succeeded Gorbachev as the president of Russia in 1991.
• Yeltsin was popular with the people.
• However, Yeltsin didn’t have a clue about economics.
• By 1992, things had gotten bad. 20% inflation and 10% unemployment.
• The government rationed many commodities but eventually gave up on some of
that because there wasn’t enough of anything.
• Igor Gaidar – prime minister under Yeltsin
• Anatole Chubais – fairly young Russian government official that wanted to cut
government spending.
• Government spending was cut and they started to ease price controls, which only
made things worse.
• Russia was in a depression.
• Yeltsin and Chubais turn to the US and Japan.
• Some Harvard economists went over to Russia to advise Yeltsin. They told him
they needed to make the immediate transition to capitalism.
• Jan 1992, Russia took all price controls off, and took the government out of
certain industries.
• Yeltsin needed financing and the media to say nice things about him. He turned to
the oligarchs (nomenklatura). Yeltsin wanted their support in exchange for some
state industries.
• Overnight, these big empires started showing up (oil, media, banking, etc).
• By 1995, these oligarchs were more powerful and rich than the government.
• In 1997, an Asian currency crisis started to depress commerce and markets. It hit
the oligarchs hard. Gas and oil became really cheap here in the US and in western
Europe. Many of these oligarchs’ wealth was tied up in commodity exports from
Russia so they were losing money.
• They pressured the govt to issue bonds to improve their state industries. They
used repo notes (repurchase agreements). These notes were becoming due and
 they didn’t have the money to pay them. This sent the Russian economy into a
crisis.
• They cut government spending again
• The IMF, World Bank, and Japanese bank ended up bailing them out.
• The oligarchs began looking for alternate means of financing. They found it from
the Russian mafia.
• The mafia gains political influence, new political connections, and respectability.
They also gained some business know how. They got into the information age.
• They became more sophisticated, more powerful, and they began to venture
abroad.
• They first moved into China. Russian mafias tried to form alliances with the
Chinese mafia, but it didn’t really work out.
• Next were the US and the Caribbean. Many advantages to doing business in
Caribbean and Latin America. There was a huge market for weapons and the
Russians had plenty of weapons around.
• There was also a big demand for money laundering in Latin America.
• There were also many weak governments that could easily be corrupted.
• The Russians wanted to invest in many of the criminal enterprises in Latin
America. They were interested in child pornography particularly.
• FARC – guerilla movement, trying to overthrow the government in Colombia.
The Russians wanted to sell them weapons. The FARC would trade cocaine for
weapons with the Russians.
• A Brazillian, Louise DeCosta, was the middleman between these deals.
• In 2001 DeCosta got arrested and Boris Yeltsin died.
• The alliance between the oligarchs and the Russian mafia was so tight that it was
hard to tell the difference.
• Putin had been the real ruler in Russia and he didn’t want to be equal partners
with the oligarchs and the mafia. He wanted them to be instruments of state.
• He knew that he needed an upper hand.
• He reformed the tax system so that they instantly owed the government.
• He also expanded the FSB (successor to the KGB). He put the KGB back into
place essentially. Their job was to watch to oligarchs and the mafia and know
what they were doing. Find their weak points and know who they were
associating with.
• Putin lets the FSB do what they want as long as it doesn’t get in the way of state
policy.
• In 1999, businesses were laundering money through the bank of New York.

11/18
Food security
• From the government, it means hunger.
• It also means having a secure source of food and means of transport that you can rely
on.
• Famines caused by weather, war, and overpopulation.
• Lysinkoism – soviet scientist that had strange theories about famine.
• Food has also been a diplomatic weapon. Ex: blockades preventing food from
reaching areas.
• In the 20th century, the global food situation improved after WWII.
• The greatest impact on the food situation after the war was the green revolution.
• After WWII the US feared that population was more susceptible to communist
influence.
• Mexico, 1945, the Mexican govt told the us govt their crops were failing. The
Rockefeller, ford, and the us got together to make a decision.
• People went to mexico to experiment with new methods of growing food.
Experimented with DDT. They taught people in Mexico modern farming techniques.
• In 1956, Mexico was self-sufficient and they were exporting 10 years later. The
program was effective.
• The green revolutionaries went to India and averted a major famine. They brought in
new breeds of rice, irrigations projects, etc. These projects attracted foreign investment.
• The world wheat production had surpassed any production from the past years.
• In the early 1980s, things went bad.
• In the socialist block, it was due to communist stupidity.
• In the rest of the world, there was greed backed up by government policy.
• There were structural changes in world financial institutions. The world bank, IMF,
and others had always made loans to poorer countries.
• The Reagan admin began to offer foreign aid with strings attached. Foreign aid in
return for privatized state run enterprises, bringing currency in line with the dollar, etc.
• Subsidized competition made the most difference though. Food security act of 1985
was the best instrument of this.
• The act was sold to the public as a way to guarantee food security in this country.
• Loan rates. They were very expensive and they were contrary to the idea of laissez-
faire.
• This act gave the secretary of agriculture to cut the loan rates before they had to go
through congress.
• Reagan admin wanted American food to be competitive on the international market.
• Farms didn't like this.
• They would give farmers subsidies (payments) and it made the price of American
agricultural products cheaper on the open market.
• It had a negative effect on other countries in this hemisphere. For example, Haiti.
• To protect Haiti's own agriculture, they put a tariff on food coming in. In order to
borrow from the IMF, the Haitians removed their tariff on imported rice and American
rice took over. The Haitian farmers were out of business.
• The ruling elite in Haiti struck a deal with rice and bean producers here to essentially
be a middleman. That money stayed in the hands of the elite though.
• Since the 80s the US has been the prime subsidizer. Other countries are forced to
divest their national industries to get loans for financing.
• The issue came up again this past summer (food riots).
• Biofuel production has gone up
• Speculation also runs up food prices.
• Corporate farming mismanagement is another reason. They are all about production
numbers, worry about damage to the land and other factors later. Now it's coming back to
get them.
• Erosion problems
• All of these factors came together recently. Last year, for the first time, the US became
a food deficit nation (we consumed more than we produced).
• Privatization of drinking water. 3 major companies involved.
• Cochabamba, Bolivia. Bechtel (US company) went down there and bought a system
and started charging for water. The operation was very inefficient. They were charging
$20 a month for a city that's min wage was $100 a month.

11/20/08
• Jihad vs. McWorld by Benjamin Barber. There will be conflict between the forces
of globalization and forces of tribalism (tradition).
• Conflict school – globalization = conflict. Barber belongs to this school.
• Friedman is neutral, he just explains globalization.
• Donald Pease, Vivian Schmitt are also in the conflict school. They say
globalization as a corporate activity has outpaced the political aspects. As a result,
the world will be run by corporations if we don’t do something about it.
• The neo-conservatives would also be in this school. Fukuyama and Huntington.
• Fukuyama – with the collapse of communism, comes the end of history. It was the
last competitor to compete with capitalism and liberal democracy.
• Huntington – seven or eight civilizations will inevitably come into conflict. The
clash of civilizations.
• After 9/11, Huntington looked like a prophet. There is no history in his writings.
• Neo-conservative writings typically deal with timeless, universal values and
ideas. History isn’t important to them.
• Fragmentation school – chaos on one end and mild disorder on the other.
• John Rapley and Robert Kaplan belong to this school. They said once the cold
war was over, the crust that had formed keeping things in order had broken.
Governments cant keep up with increasing technology, globalization, crime, etc to
moderate and regulate them, so authority becomes more localized to each area.
• Chalmers Johnson – unreconstructed Truman democrat (fragmentation school).
After the soviet union collapsed, he would cause trouble. The US had become an
empire. Even though the soviet union collapsed, we didn’t want the cold war to be
over. There are forces in this country that won’t allow it to be over. Over time,
they will accumulate more power and bankrupt the country and/or lead us into
war.
• Johnson wrote Blowback: the costs and consequences of the American empire in
2000.
• In 2004, he wrote the sorrows of empire.
• Reform school – globalization is fine, it just needs fixing. Politicians, IMF, world
bank, US government, European governments, etc are all members of this school.
• Joseph Stiglitz is a bit more radical member of the reform school. Economist at
Columbia, Nobel Prize winner. Tried to mathematically prove that the invisible
hand doesn’t exist, just good and bad information.
• He says that we cant go back to how we used to do business. The financial crisis
is proof of that.
• Stiglitz criticized the IMF when they go into countries (in order to give them a
loan, the countries need to essentially Americanize). They aren’t accounting for
local conditions when they do this. He said that the IMF has become instruments
of large corporations at the expense of taxpayers.
• Robert Cooper – wrote the breaking of nations. Fragmentation school
• He splits countries into premodern, modern, and postmodern. Europe is
postmodern, US is modern, etc. He said we need to keep the premodern countries
at bay (beat them down militarily, isolate them economically), otherwise anarchy
will spread like a disease.
• Dorff – political science prof. After the soviet union, he said we should do what
we claim to do. We should put the individual at the center of the idea of national
security. Then we might make some progress.
• Security of the individual
• Review
• Internet quotient – how much a company knows about the internet and its uses.
• Short horn cattle – looking for short term profit
• Relationship with US policy in Central America, in Iran, Vietnam, etc. We were
there to fight communism. It didn’t matter who got hurt or how we did it, we had
to find communists and get rid of them.
• Central America is unique because its been so long. Cold war isn’t over in Central
America.
• Particularly rough there because of children carrying guns and fighting at our
expense. Innocent Voices movie.
• When Washington heard anything about socialist, they had to get rid of Arbenz.
They mistakenly thought he was a communist.
•