Showing posts with label white collar crime. Show all posts
Showing posts with label white collar crime. Show all posts

Thursday, April 16, 2009

The Price Others Pay for Luxury: The Case of Dubai

I’m a bit late getting to this story, posted in The Independent by Johann Hari back on April 7, titled “The dark side of Dubai.” It’s long for an internet story, but it should be long. Hari provides an incredibly comprehensive overview of the numerous problems entrenched in the Middle East’s “Sin City” – gluttony, hideous forms of contract labor (essentially slavery), unmitigated environmental irresponsibility, racism, white collar crime…the list goes on.

As developing countries shift their industrial infrastructure, Dubai can be seen as the ultimate example of social recklessness.

Sahinal Monir, a slim 24-year-old from the deltas of Bangladesh. "To get you here, they tell you Dubai is heaven. Then you get here and realise it is hell," he says. Four years ago, an employment agent arrived in Sahinal's village in Southern Bangladesh. He told the men of the village that there was a place where they could earn 40,000 takka a month (£400) just for working nine-to-five on construction projects. It was a place where they would be given great accommodation, great food, and treated well. All they had to do was pay an up-front fee of 220,000 takka (£2,300) for the work visa – a fee they'd pay off in the first six months, easy. So Sahinal sold his family land, and took out a loan from the local lender, to head to this paradise.

What follows?

As soon as he arrived at Dubai airport, his passport was taken from him by his construction company. He has not seen it since. He was told brusquely that from now on he would be working 14-hour days in the desert heat – where western tourists are advised not to stay outside for even five minutes in summer, when it hits 55 degrees – for 500 dirhams a month (£90), less than a quarter of the wage he was promised. If you don't like it, the company told him, go home. "But how can I go home? You have my passport, and I have no money for the ticket," he said. "Well, then you'd better get to work," they replied.

The work is "the worst in the world," he says. "You have to carry 50kg bricks and blocks of cement in the worst heat imaginable ... This heat – it is like nothing else. You sweat so much you can't pee, not for days or weeks. It's like all the liquid comes out through your skin and you stink. You become dizzy and sick but you aren't allowed to stop, except for an hour in the afternoon. You know if you drop anything or slip, you could die. If you take time off sick, your wages are docked, and you are trapped here even longer."

Is he angry? He is quiet for a long time. "Here, nobody shows their anger. You can't. You get put in jail for a long time, then deported." Last year, some workers went on strike after they were not given their wages for four months. The Dubai police surrounded their camps with razor-wire and water-cannons and blasted them out and back to work.

Again, although the piece focuses heavily on this type of occupational exploitation, it covers a wide variety of other important issues. I could cut and paste more sections in here, but that would not do the story justice. If you have 15 minutes or so, check it out. It is a must read.

The only concern I had with the piece was an ethical one. It quotes individuals who, although their names may have been changed, could still be identified by the government. And as noted in the article, resistance to the capitalist project is met with extreme reprisals. I don’t suppose linking this article up on my little blog will add to that risk, but it is a risk to the confidential informants.

Last year, a good friend of mine suggested I apply for a faculty position in Dubai. At the time, I knew very little of area. Yikes.


(Photo courtesy of The Independent)


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Monday, March 9, 2009

Gluttonous Sports Teams Now "Hurting" for Cash

So now the Cowboys, Yankees, and Mets are hurting for spectators to roll in and dish up exorbitant amounts of money to watch games. And I use the word "games" deliberately. Hey, I'm as big a sports fan as many, but let's remember, they're just games. Well, games that are apparently worth more than most people's monthly mortgages. From the Wall St. Journal describing the lavish new Yankees Stadium (kudos to ESPN Sports Radio host, Colin Cowherd):


Luxury suite-holders can access a separate deal-room for conducting business. In the sleek, exclusive "Legends Club," the high-definition screens are so ubiquitous they're even set into the lavatory mirrors. For spectators in the premium section's teak-armed seats, waiters will bring brick-oven pizza to anyone able to shell out $2,500 a ticket to watch a ballgame in the midst of the worst recession in a generation.


The story mentions that the Yankees' stadium cost $1.5 billion to build. And they're not the only sports team "hurting" for business because they spent big a few years back. The Dallas Cowboys' new stadium set them back $1.1 billion, and the New York Mets also built a new stadium that exceeded the $1 billion mark.

How does the Cowboys' stadium compare for those who live the lifestyles of the rich and famous?



Top-level ticket holders can actually park inside the stadium building, then relax in the more than 200,000 square feet of clubs and lounges.


And why spend so liberally on such excessive perks?


When the Yankees broke ground on the new Yankee Stadium in August 2006, home prices were still rising, stocks were still climbing and Lehman Brothers was still a pillar of the Wall Street establishment. Back then, selling 4,300 premium seats to 81 home games a season seemed like a reasonable objective.


Look, I don't care if business was booming in 2006. Luxury tickets at $2,500 a pop are never warranted, for anyone. Can someone please say social stratification … and social indifference?

In an ironic turn of events, the Mets' stadium has been named "Citi Field," after you guessed it, Citigroup (dare I say a now deviant association).


Citigroup, which has received billions of dollars of federal aid, has been forced to defend its $400 million marketing deal with the Mets that includes the right to name the park Citi Field. The Mets have endured weeks of jokes about renaming their field "Taxpayer Stadium" or "Bailout Park," but the deal with Citigroup looks safe for now. A Citigroup spokesman says no taxpayer money will be used for the marketing deal.

One Yankees fan summed up the team's economic gluttony best, saying, "Literally, my words were, 'Are you f- kidding me?'"

Ditto that.
(Photo courtesy of The Wall St. Journal)

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Shouldn't We All Be So Lucky?

So when a company gets so powerful that it can literally leverage the U.S. government into bailing it out, don't we have problems? From Reuters.com:


American International Group Inc had warned of turmoil around the globe if the government allowed the insurer to fail when it appealed to U.S. regulators for its latest rescue...

AIG needed immediate help from the Federal Reserve and Treasury to prevent a "catastrophic" collapse that would be worse for markets than the demise of Lehman Brothers Holdings Inc, according to the 21-page draft AIG presentation circulated among federal and state regulators, the agency reported...

AIG warned its failure could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers' stake in the firm, the agency said.

I'm no economist, but couldn't demographers and financial wizards who track the country's fiscal health see this coming? Prevention, as opposed to intervention, anyone?

And while the global implications of not bailing AIG out may have been catastrophic, it's not as if our country dishing out more money to save companies does not have deleterious ramifications in its own right.


Borrowing so much money from China puts us in quite the subservient position. Our national debt as a whole, and specifically that to China, has mushroomed to such an extent that we don't have the power to call them on their own human rights violations.

Ugh, I've
written enough on this already. It's too early on a Monday morning to gripe about this anymore right now.
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