Friday, October 17, 2008

Black Shadows under the glitziest candle of Dubai

'We need slaves to build monuments'
It is already home to the world's glitziest buildings, man-made islands and mega-malls - now Dubai plans to build the tallest tower. But behind the dizzying construction boom is an army of migrant labourers lured into a life of squalor and exploitation. Ghaith Abdul-Ahad reports
  • Ghaith Abdul-Ahad

Workers sleep on the street in Dubai

Workers sleep on the street in Dubai. Photograph: Ghaith Abdul Ahad

The sun is setting and its dying rays cast triangles of light on to the bodies of the Indian workers. Two are washing themselves, scooping water from tubs in a small yard next to the labour camp's toilets. Others queue for their turn. One man stands stamping his feet in a bucket, turned into a human washing machine. The heat is suffocating and the sandy wind whips our faces. The sprinkles of water from men drying their clothes fall like welcome summer rain.

All around, a city of labour camps stretches out in the middle of the Arabian desert, a jumble of low, concrete barracks, corrugated iron, chicken-mesh walls, barbed wire, scrap metal, empty paint cans, rusted machinery and thousands of men with tired and gloomy faces.

I have left Dubai's spiralling towers, man-made islands and mega-malls behind and driven through the desert to the outskirts of the neighbouring city of Abu Dhabi. Turn right before the Zaha Hadid bridge, and a few hundred metres takes you to the heart of Mousafah, a ghetto-like neighbourhood of camps hidden away from the eyes of tourists. It is just one of many areas around the Gulf set aside for an army of labourers building the icons of architecture that are mushrooming all over the region.

Behind the showers, in a yard paved with metal sheets, a line of men stands silently in front of grease-blackened pans, preparing their dinner. Sweat rolls down their heads and necks, their soaked shirts stuck to their backs. A heavy smell of spices and body odour fills the air.

Next to a heap of rubbish, a man holds a plate containing his meal: a few chillies, an onion and three tomatoes, to be fried with spices and eaten with a piece of bread.

In a neighbouring camp, a group of Pakistani workers from north and south Waziristan sit exhaustedly sipping tea while one of them cooks outside. In the middle of the cramped room in which 10 men sleep, one worker in a filthy robe sits on the floor grinding garlic and onions with a mortar and pestle while staring into the void.

Hamidullah, a thin Afghan from Maydan, a village on the outskirts of Kabul, tells me: "I spent five years in Iran and one year here, and one year here feels like 10 years. When I left Afghanistan I thought I would be back in a few months, but now I don't know when I will be back." Another worker on a bunk bed next to him adds: "He called his home yesterday and they told him that three people from his village were killed in fighting. This is why we are here."

Hamidullah earns around 450 dirhams (£70) a month as a construction worker.

How is life, I ask.

"What life? We have no life here. We are prisoners. We wake up at five, arrive to work at seven and are back at the camp at nine in the evening, day in and day out."

Outside in the yard, another man sits on a chair made of salvaged wood, in front of a broken mirror, a plastic sheet wrapped around his neck, while the camp barber trims his thick beard. Despite the air of misery, tonight is a night of celebration. One of the men is back from a two-week break in his home village in Pakistan, bringing with him a big sack of rice, and is cooking pilau rice with meat. Rice is affordable at weekends only: already wretched incomes have been eroded by the weak dollar and rising food prices. "Life is worse now," one worker told me. "Before, we could get by on 140 dirhams [£22] a month; now we need 320 to 350."

The dozen or so men sit on newspapers advertising luxury watches, mobile phones and high-rise towers. When three plastic trays arrive, filled with yellowish rice and tiny cubes of meat, each offers the rare shreds of meat to his neighbours.

All of these men are part of a huge scam that is helping the construction boom in the Gulf. Like hundreds of thousands of migrant workers, they each paid more than £1,000 to employment agents in India and Pakistan. They were promised double the wages they are actually getting, plus plane tickets to visit their families once a year, but none of the men in the room had actually read their contract. Only two of them knew how to read.

"They lied to us," a worker with a long beard says. "They told us lies to bring us here. Some of us sold their land; others took big loans to come and work here."

Once they arrive in the United Arab Emirates, migrant workers are treated little better than cattle, with no access to healthcare and many other basic rights. The company that sponsors them holds on to their passports - and often a month or two of their wages to make sure that they keep working. And for this some will earn just 400 dirhams (£62) a month.

A group of construction engineers told me, with no apparent shame, that if a worker becomes too ill to work he will be sent home after a few days. "They are the cheapest commodity here. Steel, concrete, everything is up, but workers are the same."

As they eat, the men talk more about their lives. "My shift is eight hours and two overtime, but in reality we work 18 hours," one says. "The supervisors treat us like animals. I don't know if the owners [of the company] know."

"There is no war, and the police treat us well," another chips in, "but the salary is not good."

"That man hasn't been home for four years," says Ahmad, the chef for the night, pointing at a well-built young man. "He has no money to pay for the flight."

A steel worker says he doesn't know who is supposed to pay for his ticket back home. At the recruiting agency they told him it would be the construction company - but he didn't get anything in writing.

One experienced worker with spectacles and a prayer cap on his head tells me that things are much better than they used to be. Five years ago, when he first came, the company gave him nothing. There was no air conditioning in the room and sometimes no electricity. "Now, they give AC to each room and a mattress for each worker."

Immigrant workers have no right to form unions, but that didn't stop strikes and riots spreading across the region recently - something unheard of few years ago. Elsewhere in Mousafah, I encounter one of the very few illegal unions, where workers have established a form of underground insurance scheme, based on the tribal structure back home. "When we come here," one member of the scheme tells me, "we register with our tribal elders, and when one of us is injured and is sent home, or dies, the elders collect 30 dirhams from each of us and send the money home to his family."

In a way, the men at Mousafah are the lucky ones. Down in the Diera quarter of old Dubai, where many of the city's illegal workers live, 20 men are often crammed into one small room.

UN agencies estimate that there are up to 300,000 illegal workers in the emirates.

On another hot evening, hundreds of men congregate in filthy alleyways at the end of a day's work, sipping tea and sitting on broken chairs. One man rests his back on the handles of his pushcart, silently eating his dinner next to a huge pile of garbage.

In one of the houses, a man is hanging his laundry over the kitchen sink, a reeking smell coming from a nearby toilet. Next door, men lie on the floor. They tell me they are all illegal and they are scared and that I have to leave.

Outside, a fistfight breaks out between Pakistani workers and Sri Lankans.

The alleyways are dotted with sweatshops, where Indian men stay until late at night, bending over small tables sewing on beads.

A couple of miles away, the slave market becomes more ugly. Outside a glitzy hotel, with a marble and glass facade, dozens of prostitutes congregate according to their ethnic groups: Asians to the right, next to them Africans, and, on the left, blondes from the former Soviet Union. There are some Arab women. Iranians, I am told, are in great demand. They charge much higher prices and are found only in luxury hotels.

Like the rest of the Gulf region, Dubai and Abu Dhabi are being built by expat workers. They are strictly segregated, and a hierarchy worthy of previous centuries prevails.

At the top, floating around in their black or white robes, are the locals with their oil money. Immaculate and pampered, they own everything. Outside the "free zones", where the rules are looser, no one can start a business in the UAE without a partner from the emirates, who often does nothing apart from lending his name. No one can get a work permit without a local sponsor.

Under the locals come the western foreigners, the experts and advisers, making double the salaries they make back home, all tax free. Beneath them are the Arabs - Lebanese and Palestinians, Egyptians and Syrians. What unites these groups is a mixture of pretension and racism.

"Unrealistic things happen to your mind when you come here," a Lebanese woman who frequently visits Dubai tells me as she drives her new black SUV. "Suddenly, you can make $5,000 [£2,800] a month. You can get credit so easy, you buy the car of your dreams, you shop and you think it's a great bargain; when you go to dinner, you go to a hotel ... nowhere else can you live like this."

Down at the base of the pyramid are the labourers, waiters, hotel employees and unskilled workers from India, Pakistan, Sri Lanka, Ethiopia, the Philippines and beyond. They move deferentially around the huge malls, cafes, bars and restaurants, bowing down and calling people sir and madam. In the middle of the day, during the hottest hours, you can see them sleeping in public gardens under trees, or on the marble floors of the Dubai Mosque, on benches or pieces of cardboard on side streets. These are the victims of the racism that is not only flourishing in the UAE but is increasingly being exported to the rest of the Middle East. Sometimes it reminds you of the American south in the 1930s.

One evening in Abu Dhabi, I have dinner with my friend Ali, a charming Iraqi engineer whom I have known for two decades. After the meal, as his wife serves saffron-flavoured tea, he pushes back his chair and lights a cigar. We talk about stock markets, investment and the Middle East, and then the issue of race comes up.

"We will never use the new metro if it's not segregated," he tells me, referring to the state-of-the-art underground system being built in neighbouring Dubai. "We will never sit next to Indians and Pakistanis with their smell," his wife explains.

Not for the first time, I am told that while the immigrant workers are living in appalling conditions, they would be even worse off back home - as if poverty in one place can justify exploitation in the other.

"We need slaves," my friend says. "We need slaves to build monuments. Look who built the pyramids - they were slaves."

Sharla Musabih, a human rights campaigner who runs the City of Hope shelter for abused women, is familiar with such sentiments. "Once you get rich on the back of the poor," she says, "it's not easy to let go of that lifestyle. They are devaluing human beings," she says. "The workers might eat once a day back home, but they have their family around them, they have respect. They are not asking for a room in a hotel - all they are asking for is respect for their humanity."

Towards the end of another day, on a fabulous sandy beach near the Dubai marina, the waves wash calmly over the beautiful sand. A couple are paragliding over the blue sea; on the new islands, gigantic concrete structures stand like spaceships. As tourists laze on the beach, Filipino, Indian and Pakistani workers, stand silently watching from a dune, cut off from the holidaymakers by an invisible wall.

Behind them rise more brand-new towers.

"It's a Green Zone mentality," a young Arab working in IT tells me. "People come to make money. They live in bubbles. They all want to make as much money as possible and leave."

Back at the Mousafah camps, a Pakistani worker walks me through his neighbourhood. On both sides of the dusty lane stand concrete barracks and the familiar detritus: raw sewage, garbage, scrap metal. A man washes his car, and in a cage chickens flutter up and down.

We enter one of the rooms, flip-flops piled by the door.

Inside, a steelworker gets a pile of papers from a plastic envelope and shoves them into my lap. He is suing the company that employed him for unpaid wages. "I've been going to court for three months, and every time I go they tell me to come in two weeks." His friends nod their heads. "Last time the [company] lawyer told me, 'I am in the law here - you will not get anything."

Economically, Dubai has progressed a lot in the past 10 years, but socially it has stayed behind," says Musabih. "Labour conditions are like America in the 19th century - but that's not acceptable in the 21st century."

Wednesday, October 15, 2008

Is Steve Jobs Preparing His Farewell?

Steve Jobs is leaving Apple. Not tomorrow, but probably very soon. That's why he started to say good bye today, doing something more important than just presenting new MacBooks, MacBook Pros, and an updated MacBook Air. Today's event was a play in which he clearly told everyone that the company is more than himself. Since the very first minute, when he immediately sat down to let Tim Cook talk, he was saying: "Hey, look, Apple is more than Steve. These are The Guys, the Goodfellas, the A-Team. They share the same vision I have. And they are going to push the company forward when I leave this company to drink caipirinhas suntanning on my private beach in Hawaii". Head over at GIZMODO to read the whole article.

Monday, October 06, 2008

HiPER Laser Fusion Project "Starts" Tomorrow, Could Save Earth

Nuclear fusion energy project could lead to limitless clean electricity


By Richard Gray, Science Correspondent
Last Updated: 12:01am BST 05/10/2008

The power of the sun is to be recreated in a new £1 billion science project which aims to provide a clean and almost limitless source of energy.

Here is how it works:

• HiPER is being designed to demonstrate the feasibility of laser driven fusion as a future energy source. It will also enable the investigation of the science of truly extreme conditions – accessing regimes which cannot be produced elsewhere on Earth (temperatures of hundreds of millions of degrees, billion atmosphere pressures, and enormous electric and magnetic fields).

• HiPER will require major developments in technology, building on the highly successful European capability in this area. In particular, the PETAL laser, located in the Aquitaine region of France, will be a fore-runner to the HiPER facility to address physics and technology issues of strategic relevance for HiPER

British scientists will this week begin work to create a nuclear fusion reactor, which will use the same powerful reactions that take place in the Sun to provide energy and, ultimately, electricity.

Scientists have previously only been able to replicate the reaction inside hydrogen bombs.

Now, however, they believe they are on the verge of achieving controlled fusion in a laboratory for the first time.

Laser beams with enough power to light up every home in Britain for a few microseconds will be used to heat up the nuclear fuel to millions of degrees centigrade in order to trigger the reaction.

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If successful, the reactor will be a prototype for future commercial power stations, providing a cleaner and safer replacement for conventional nuclear power stations, which use nuclear fission to produce energy.

Unlike nuclear fission, which tears apart atoms to release energy and highly radioactive by-products, fusion involves squeezing two "heavy" hydrogen atoms, called deuterium and tritium together so they fuse, producing harmless helium and vast amounts of energy.

Previous attempts to harness fusion have failed due to the huge amount of power needed to start the reaction and keep it running, leading to more power being put into the system than is ever given out. But scientists at the Rutherford Appleton Laboratory, near Oxford, hope their approach will generate useful power for the first time.

Leading a consortium of physicists from across Europe they will tomorrow launch the three year process of planning and designing the High Powered Laser Research (HiPER) facility.

Professor Mike Dunne, director of the central laser facility at the Rutherford Appleton Laboratory and one of the scientists leading the fusion project, said that fusion could provide a safe source of energy with no carbon emissions and plentiful energy supplies.

He said: "HiPER is aiming to bridge the step between proving nuclear fusion is possible and a commercial power station.

"It should prove that a big enough laser can be built, with a high enough repetition rate and efficiency, which are the critical building blocks on the route towards fusion energy."

Fusion reactors are already under construction in the US and France using two separate approaches to creating the intense pressure and heat required to trigger the nuclear fusion reaction.

The National Ignition Facility in Livermore, California, is aiming to use powerful lasers to create the intense pressures required to trigger the reaction when it is switched on next year, but the lasers are so powerful it is likely to use up more energy than it produces, meaning the technology would be useless for a commercial power station.

A separate approach at the International Thermonuclear Experimental Reactor in Cadarache, France, is aiming to use powerful magnetic fields to spark the reaction but this is again not thought to be terribly efficient. The HiPER project will adapt the American laser approach and improve its efficiency so that it can trigger the reaction at lower pressure.

"The National Ignition Facility will prove fusion can be achieved with lasers and we are then the next step," said Professor Dunne.

"If you think of the NIF as being like a diesel engine – the lasers compress the fuel pellet until the pressure causes the fusion reaction to start.

"HiPER is more like a petrol engine where the fuel is compressed a little by the lasers but then a second more powerful laser acts like a spark plug to trigger the fusion reaction."

The researchers have received £13 million for the first phase of the £1 billion project to build the HiPER facility. Most of the funding has come from the UK government funded Science and Technology Facilities Council, together with contributions from the European Commission.

It comes at a time when the Government is facing intense opposition to its plans to build new nuclear fission power stations in order to meet rising energy demands as fossil fuel supplies begin to run low.

Unlike nuclear fission, the fusion reaction produces only produces very small amounts of low-grade radioactive material and does not carry the risk of radioactive meltdown.

Fusion fuel, deuterium and tritium is also readily available in seawater. Just 2lbs of fusion fuel is capable of producing the same amount of energy as 10,000 tonnes of fossil fuel.

A spokesman for the STFC said: "The future location of HiPER is being explored over the next few years, with the UK being a prime candidate."

Martin O'Brien, fusion programme manager at the UK Atomic Energy Authority, added: "Fusion is increasingly recognised internationally as a possible long term clean energy supply. The UK is very much in the leading position on nuclear fusion."

Saturday, October 04, 2008

US Congress bailout bill

US Congress is set to sell out the country

Partially relevant rant Enslaving Main Street to gild Wall Street

IN A FEW HOURS the US House of Representatives might tip that country into a decade long economic depression that will begin the fall of the American Empire and reverberate around the world. While the American Empire's fall won't be lamented, the depression will be painful.

It might do that by voting to grant US Treasury Secretary Henry Paulson the authority to bail out and line the pockets of the wealthiest and most favoured of that reckless class of greed-blinded crooks and swindlers who have financially ruined much of the US populace.

In the process they've driven many large US banks, hedge funds and insurance companies straight off the cliff of financial insolvency and into undeclared bankruptcy.

The so-called representatives of the people might do that because they've been bought and paid-for long ago with incremental bribes of political campaign contributions doled out by that same elite and long entrenched class of financial players. Many US congress people have been paid about $1 million each over the years, give or take a few hundred thousand dollars.

What the House of Representatives is about to vote on and possibly approve is a daft bill already passed by the Senate that would give Secretary Paulson virtually unlimited carte blanche to loot the US Treasury of, and indebt the country for generations by borrowing from the Federal Reserve, and through it the rest of the world, literally trillions of dollars.

The initial authorisation is nominally for $350 billion, but that's automatically extendable to $700 billion under the bill, and that spending authorisation may be renewed, $700 billion at a whack, indefinitely and limitlessly.

Under the bill, Secretary Paulson's authority to pay out taxpayer money to whomever he pleases, for whatever assets or purposes he wishes, at whatever prices, is not constrained in any meaningful way. It is not subject to any binding guidance or close oversight and is not reviewable or reversible by any legislative body or any court of law.

The bill is simply a breathtakingly brazen prescription for total financial dictatorship over the US Treasury and future US tax liabilities, as far as the eye can see.

This incredible financial coup d'etat is being justified as somehow imperatively necessary by the supposedly impending collapse of world's financial system.

The promoters of this scheme -- US Treasury Secretary Henry Paulson, principally, plus US Federal Reserve Chairman Benjamin Bernanke and US President George Bush -- claim that this unprecendented abrogation of US Congressional power over the national purse is needed because some large banks and insurance companies are in a severe financial bind.

The spot they're in has resulted from their wild abandon in devising, making, packaging, insuring, selling and trading home mortgage loans and equity loans, made in all too many cases to people who couldn't afford them.

Many people, who were induced to sign up for variable interest rate Subprime and Alt-A mortgage loans on overvalued houses -- often with no money down, verification of income, assets to back them up, or even paying jobs in many instances -- have been falling behind in their payments and losing their homes to foreclosures in droves for over a year now.

As borrowers, they're trapped by ongoing collapse of the US housing market bubble. The houses that they bought at inflated prices aren't worth nearly as much as they still owe on their mortgages, so they can't sell their homes. And their adjustable rate mortgages are starting to ratchet upwards, making them struggle to make their mortgage payments and forcing many of them into bankruptcy and foreclosure.

The US housing bubble at the root of the current US financial ills was caused by former Federal Reserve Chairman Alan Greenspan's inflationary policy of low interest rates that he pursued for several years, which fueled rampant real estate speculation resulting in an unsustainable rise in US housing prices. In mid-2007, the music stopped and house prices started falling. They still have quite a ways to fall to get back down to the levels ordinary American wage-earners can historically afford, and the US housing market won't begin to recover until they do.

Those institutions are holding stacks of home mortgages and secondary mortgage market bonds and derivatives that are of dubious value. Recent imposition of a rule that they must mark these securities to market prices has made a number of those institutions technically insolvent, because those securities are of unknown value so therefore no banks are willing to buy them at any price, thus they are technically worthless.

Secretary Paulson is proposing to buy up swathes of mortgage bonds, derivatives based upon them, credit default swaps, and whatever else he feels like buying, from whatever financial institutions drag their tattered castoffs into his high-class pawnshop, and he will apparently be willing to pay whatever they ask for them.

Mortgages valued at a trillion dollars or so have already gone bad, that is, either they are non-performing because borrowers have stopped making payments or they've been placed into foreclosure. A Swiss bank estimates that as much as $5 trillion in US mortgages will eventually become worth little or nothing. That's the potential liability facing Mr Paulson.

That amount, $5 trillion, is approximately the value of all US mortgages that are held by Fannie Mae and Freddie Mac, the two US secondary market mortgage holders taken into "conservatorship," that is, nationalised, by the US government just a couple of weeks ago, to put the number in perspective.

The bailout or "rescue" bill proposed, however, won't really place most of the beneficiary financial institutions on firm footing. It will only buy up their worst investments, providing their insiders and major stockholders with large windfalls of cash with which to make fast getaways to sunnier climes. It will merely reward the principal crooks for their larcenies.

That's because the US financial system is awash with arcane derivatives that are called credit default swaps, which Warren Buffet has astutely called " weapons of financial mass destruction." There are presently about $55 trillion in credit default swaps outstanding in the US financial system. There's not enough money in the entire world to buy all those up.

Therefore, some banks, hedge funds and insurance companies are going to fail, dragged down by their former greed in pursuit of ever higher quarterly profits without regard to downside risks. Some large financial institutions will be among those that eventually fail.

The bill won't stave off an economic depression either. In fact, it'll likely both hasten and worsen the depression that's coming, as well as delay the onset of US economic recovery.

That bright light in the American economy's tunnel isn't the sun but rather an onrushing train. Ignoring it will only make the inevitable crash more violent and the damage worse.

But handing the crew that got the US economy into this mess, along with their henchmen and cronies, a free hand to loot the national treasury, enslave taxpayers for generations, and shower the crooked, corrupt and swindling financial elite with cash is simply insane.

It should be interesting to see whether the US Congress actually pulls the trigger on America today. ยต