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Crisis in Congo and Capsizing Boats Mediterranean

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Crisis in Congo and Capsizing Boats Mediterranean

The Project Censored Show

The Official Project Censored Show

Colonialism Today: From The Crisis in Congo to Capsizing Boats in the Mediterranean



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Be it in the Mediterranean or the heart of Africa in Congo, colonialism isn’t past, it’s a modern day disaster. In the first half of the show, journalist and activist Eugene Puryear joins Eleanor Goldfield to bring us information on the so-called silent holocaust taking place in the Congo where some 6 million people have died as nations across the region and the world vie for the more than $24 trillion worth of natural resources within Congo’s borders. Next up, Giulia Messmer from Sea Watch explains her organization’s rescue work in the Mediterranean, how European nations are moving to criminalize migration, cross-border solidarity, and more.

 

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Eleanor Goldfield: Thanks, everyone, for joining us back at the Project Censored radio show. We’re very glad right now to be joined by Eugene Puryear, who’s an American journalist, author, activist, politician, and host on Breakthrough News.

He is also the author of “Shackled and Chained: Mass Incarceration in Capitalist America.” Eugene, thanks so much for being here.

Eugene Puryear: Eleanor, thank you so much for having me on. It’s really an honor to have the opportunity to come back.

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Eleanor Goldfield: The honor’s mine.

So I wanted to ask you on today to talk about something that I doubt folks are hearing about at the moment: the DRC, the Democratic Republic of Congo, which has vast stores of coltan, gold, tin, cobalt, copper, zinc, diamonds, and other rare earth minerals which should be a source of great wealth and stability, based on capitalist supply and demand, right?

But thanks to imperialism, this is instead a source of great poverty and instability. And since about 1996, as I understand it, Congo has been in the throes of what some have been calling a silent holocaust, killing upwards of 6 million people and involving militia groups from all over the region, many backed directly by the US, France, and the UK so as to secure access to those minerals.

So, Eugene, could you fill out this context a little bit more about what’s happening right now in the Congo, and why it’s bubbling up specifically right now in some alternative and social media platforms?

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Eugene Puryear: Yeah, you know, I think it’s a great question. And, you know, this is a perennial issue. And you’re 100 percent correct. Since 1996, Congo has been locked in essentially what you could call a civil war, but it’s a multi sided civil war. And, you know, it flares up, it flares down, but it’s been very consistent, you know, since that time.

And I think people are pointing to this issue now because it’s one of the perennial, under-discussed issues. I mean, more people have died in this war than in many of the large wars we talk about all the time in the context of world history. But of course, most of those wars involve Europe and the United States. So it also speaks to how Africa is often erased.

But right now, what we’re seeing in Congo, is the continuation of a flare up in this long conflict that started about a year ago, roughly. And that is the ongoing offensives by a rebel group that’s backed by Rwanda that’s known as M23.

So to just take one step back for people to understand a little bit, and I thought you gave great framing, you know, there’s $24 trillion of wealth in the ground in DRC. So this is a highly sought after area. And if you control territory in DRC, you can make a lot of money. So for many years, people probably know, especially people maybe who’ve seen the movie Ali about Muhammad Ali, the leader was a guy named Mobutu Sese Seko. I won’t get into that now, but he falls in 1997, and really, since then, the country has been in this state of sort of semi Balkanization.

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It’s a huge, vast country. I mean, almost all of Western Europe could fit in DRC. And so once this sort of central governing authority, which was, it was one man rule kind of situation, breaks down, you get sort of a free for all in Congo.

And so over the years, a lot of different things have happened, but they basically boil down to this. The countries that surround Congo: Uganda, Rwanda, Burundi, especially, but also others, Angola, different countries, Zimbabwe, which doesn’t border on them as close, different countries have at different times intervened to support different actors on the ground in Congo who they felt could help secure their access to the mineral resources of Congo, which means that on the ground in DRC, a number of armed groups emerged backed by these various states to attempt to seize different territory to be able to get hold of this first step in this massive supply chain for these minerals, which are only becoming bigger because a lot of them are used in electric vehicles.

But also on the same token, you’ve had groups of villagers based on ethnicity, based on area, based on different things that have also formed their own armed groups to fight back against these other armed groups that are mainly being backed by the neighboring countries. And then you have the various governments of Congo who at different times have been allied with different elements.

So in the eastern part of DRC, especially, which is where the most mineral rich land is, you’ve got all these different groups that are fighting and different pieces like that. And about a year ago, this sort of stasis or equilibrium that was sort of introduced after the last election in 2018 broke down when M23, which is backed by Rwanda, launched a big operation into the Congo and that’s destabilized things. They’ve seized a lot of territory.

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Countries from all over East Africa, the United Nations are in there claiming to be peacekeepers, but basically that’s what we’re seeing is another flare up in this attempt by various actors to control territory in the Congo in order to put themselves in the pole position to have at least some role in exploiting this $24 trillion worth of resources.

Eleanor Goldfield: Yeah. Wow. Thank you for that important context. And I know that we’ve discussed before the African Union, and I’m curious because it seems like a potential step would be to say, okay, well, how could this potentially benefit a lot of the African continent as opposed to, you know, it getting extracted and then as imperialism does take it to Europe and the United States. What is the African Union stance on this or what are their actions right now?

Eugene Puryear: That’s a really important question. I would say the African Union is basically split, and it’s split on the basis of the two most relevant regional blocks of which DRC is a part.

One, and the principal one in this situation is the East African community of which Kenya really is the leading country, but Uganda, other East African countries are involved, and then the other which there is somewhat opposed to each other is what’s known as SADC, the Southern African Development Community, which is all the countries basically south of DRC in Southern Africa: South Africa, Angola, Tanzania, Mozambique.

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And both of those entities have different views basically on how the conflict should be resolved. And they have their own relationships with the government of DRC about that issue exactly. So the AU is split in a major way.

Now the East African Community Forces which have been there, there’s a few thousand of them, they’re allegedly keeping the peace. Most people in DRC are very opposed to those forces being there because they think they’re not there to keep the peace. They’re actually just there to do what I said, to carve up the country.

This is the big phrase in DRC is the balkanization of DRC and the Congolese government has now asked them to leave along with the United Nations force, which many people also felt in Congo was playing the same role. So they’ve actually been asked to leave the country.

Now SADC has a longer history here. They are very supportive of the government. The president of Congo is a guy named Felix Tshisekedi. They’ve been supportive of the last couple governments, and they personally view both what’s happening with the East African community and the general situation as bad for Congo if the country breaks apart. So they’ve tended to come in to back whoever the central government is to try to back their play to have total control over the Congo.

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So you’ve got all these powerful African countries that have different views about how the things should be resolved, but they all have a similar discourse. And I’m glad you brought up the issue of African unity because they all do this in the basis of African unity.

The Congolese government says we’re doing this because we want to unite our country, keep it from being broken apart and by making it a stronger country, we can normalize the relationships, especially with foreign actors in order to get more money from mineral resources.

SADC says, yes, same thing. This is why we need to keep the country together. The East African community countries say, well, we all border the Congo. All the minerals that are coming out of there are mainly coming through our countries to go to overall ports. The economies are deeply intertwined with one another. So basically, Eastern Congo should be kind of a free zone that is basically managed by us, and by our militaries because that will advance Pan African unity.

So you have all these people who are trying to use the framework and the phraseology of Pan African unity to hide the fact that what they’re really trying to do is determine who’s going to be the top dog in terms of moving out these mineral resources and who’s going to be the interlocutor with the major international companies and also the major international powers in order to do that.

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And unfortunately, because of that, the sort of African governing mechanism, this idea of the AU of African solutions to African problems, silencing the guns in Africa. These are two prominent AU initiatives to try to resolve all the problems that exist in Africa have basically become null and void because there’s such a disagreement between powerful African countries about how to address this issue.

And none of those really are addressing the civil society of the DRC, which has been rising up, and in the Eastern part of the DRC, there’s military rules. So it’s, you know, a hundred people about two months ago were massacred protesting the UN presence, but people have still been striking.

There’s a lot of strikes because it doesn’t require you to come out on the street. People just shut down the economy. And what you’re hearing from the street from the people who are the most affected is that they do want to see a lot of these foreign forces leave. And they do feel that Congo should control its own territory, should have one military, and it should do that.

But they’re also raising a lot of issues about the Congolese government and saying that the military also, though, acts in a way that reinforces the negative aspects of the pit mining, the terrible conditions for workers, the poverty wages that are being paid.

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And so there needs to be a much greater focus on development, and a lot of that is being left out because civil society as non state actors are not being brought to the table. They are to some degree, but they’re not really being brought to the table in a real way.

Eleanor Goldfield: And I’d like to talk a little bit more about that because not too long ago I spoke with Dr. Lagoke about what’s happening in Western Africa and this collective casting off of imperialist power, and I was wondering how much do you feel folks on the ground in Congo are looking to that and using similar tactics, and also how does that play into Congo as it stands right now, as you said, a huge nation, and it’s a nation that has been carved by European powers, just like we see Africa was carved in the late 1800s by European powers. There were no African nations that were actually invited to this table.

So how much of this is also a question of well, is keeping it together really a perpetuation of imperialism in keeping those lines? How do people feel about that? And the collective, it seems like the African spread of casting off imperialist powers in general.

Eugene Puryear: I think it’s a, it’s an interesting question and a complex one, and I think what we see, to speak to the first question, in DRC, really on all sides, you see a lot of support for what’s happening in the Sahel, happening in West Africa. Obviously French is the lingua franca of the DRC because Belgium, of course, was the colonial power.

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So even though they’re not in the CFA Franc Zone or anything like that, I think people still feel a lot of kinship with what’s happening in West Africa, and they can see and feel that this is, you know, it’s contradictory, but in many ways, at least a step forward of Africans finally starting to say, we’re going to reject the tutelage of the West, and we’re going to make our own decisions.

Now, whether or not that works out, we’ll have to see how it all plays out. Whether or not, you know, what is motivating different people: is it pure? Is it opportunistic? All of that’s going to work itself out. But at the very least it’s saying like, okay, at this stage in the game, we’re not going to just be told who our partners are. We’re not going to be told what rules we should have around mining.

And I think you can see a similar groundswell inside of DRC, which is honestly exactly why you see president Tshisekedi making a big play now. It’s not fully cosmetic, but I would say it’s mainly cosmetic of actually addressing exactly this issue and saying, we’re trying to bring in more mineral wealth, we’re trying to rewrite the agreements with these different companies.

Because I think he feels like most African leaders that what’s happened in the Sahel could easily happen to him if you’re not able to deliver some basic resources. And I think most Africans in DRC and really everywhere I’ve been, Ethiopia, Eritrea, South Africa, Ghana, you pretty much hear the same thing.

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I think everyone has a pretty good sense that there is no way to lift African countries out of poverty without greater African unity. I mean, there’s just, there’s so many different issues to it. I mean, first and foremost, the ethnic issues that underpins so many of these conflicts, including Eastern DRC, which has a lot of hangover from what happened in Rwanda in the mid 1990s when you have people from the same ethnic group, and this is all over Africa, living on two sides of basically made up borders, you have differences between pastoralists, between farmers, a lot of the problems just can’t be resolved in a strictly national context. So I think people see on that sense.

And then the different African countries are endowed with so many different resources. It’s obviously a continent that has huge human resources, the youngest continent on earth, 70 percent of people under the age of 35, maybe even 30, it’s unbelievable really how young the continent is.

So, huge human resources that people have to work together, but I think, and this has been sort of the perennial question in a way, of the Pan African movement since the formation of the OAU in 1963 is how do you get there?

What happens in a lot of times is you’ll have in one situation, you know, predatory powers from the outside, try to exploit an issue. So the people themselves want to assert the sovereignty of their nation in order to push back those predatory powers, but they actually want greater links with the peoples of those places.

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And so I think really, the question that is arising now is how to start from a commercial economic perspective to open up the boundaries to get rid of the tariffs and the different taxes and the different things like that to at least make the trade and the intercourse between peoples a little bit easier to try to create an underpinning.

And I think you see this, if you look at a place like Goma, places like that, a huge amount of trade is happening with Rwanda. So even though DRC and Rwanda are constantly at odds, even though they’re funding M23, you can find a Congolese who is against M23, is angry at Rwanda for funding them, but is still going to try to go across the border to trade with the people who are over there in Rwanda.

So how can those people to people ties be strengthened, I think is the big question of Pan African unity, because the sort of nation to nation struggle is so variegated based on who’s ruling which nation, and like, do they have a Pan African vision, or are they just promoting a reactionary reality? And sometimes that flips back and forth in the same country over a short period of time.

So I think the question a lot of people are asking is how do social movements, trade unions, trade associations, commercial transactions, how do we strengthen that in a much more solid way? Because that’s really the underpinning to a greater political conversation about African unity.

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Eleanor Goldfield: Yeah, absolutely. And I’m also curious with regards, you know, you saying that they’d go over the border to trade and that sort of perspective, because we see now that the U.S. empire is in decline and BRICS is on the up, the rise of a multipolar world.

And so, how much does that play into moves and and organizing that you see happening in places like Congo with regards to casting off imperialism, and then also still wanting to trade and work with entities like Russia and China, and of course potentially Europe as well without engaging in the classic imperialist relationship?

Eugene Puryear: Yeah, well, this is a huge issue in DRC, and you know, it’s become a big issue because China obviously is arguably the world’s largest economy, second largest economy, and it’s one of the major players in mining, and most of the minerals that are leaving out of there are leaving from Chinese companies.

Now, you know, the way the economy works, a lot of this stuff has ended up in Apple phones and things like that, so it’s not strictly that, but the West has become very afraid of China’s role in D.R.C, and also Russia, which has been a big undercurrent recently because there is a faction inside the government of D.R.C. that very much wants to work with Russia around security issues, and that has freaked them out.

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So if people can remember when Blinken went to D.R.C., and how they’ve announced this thing at the Africa Summit of some DRC, Zambia, U.S. cobalt mining deal or whatever. It’s very loose and very vague, but they have started some big company backed by, I think, Bill Gates to mine.

A lot of that is because they’re very concerned about losing their pole position in terms of the sort of first step of minerals they view as critical for a green economy in the 21st century. So this is becoming a much bigger issue.

I think in DRC, it’s interesting. I mean, there’s a discourse that has been raised, a lot of it coming from the government with a lot of criticism of China and the way that they’ve done things, but there’s another discourse that’s competing with that that’s saying that the criticism of China is really the government trying to cover up for their own mistakes and not being able to actually capitalize on these deals in the correct way.

I think there’s probably a little bit of truth to both things. I mean, I think a lot of these Chinese companies are acting unscrupulously, quite frankly, but I do think that the government totally controls the environment around these companies, and the military is like the enforcer of the economic realities of these areas with these terrible photos people have seen of people mining in these pits and all of that. So if they wanted to address some of this they could.

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But the reality is the government leaders, the military leaders are getting a pretty penny by collaborating as a part of the process.

So the real conversation I think we’re seeing now is sort of twofold. On the one hand, I think there is a strong conversation inside of Congo amongst the activists who are most concerned about these issues, especially mining issues, of how do you establish a greater sovereign infrastructure inside of DRC with clear mining rules, clear worker rights, and clear rules about how much money is going to be extracted by foreign companies versus the Congo.

And I think that is an ongoing conversation and an important one and one that’s happening all over the continent. It’s happening in Zimbabwe. It’s happening in Ethiopia. There’s a lot of moves around how you can create more cooperative based miners so that these smaller artisan miners can pool their resources, actually buy the actual equipment, put themselves in a position where they can make real deals with real actors and assert their own rights and pieces like that.

So we’re seeing, you know, that activity happening as well, which is overlaid on the geopolitical space. Because realistically, the thing you see about China is, in many ways China needs Africa as much as Africa needs China. And I think that’s the part of the story that a lot of people don’t talk about.

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So when the discourse was coming out from the government of DRC that China’s exploiting DRC and they need to do more, that China just started saying, okay, yes, we will do more. They envi, they invited Tshisekedi there, they start resigning deals, they’re pledging more money for hospitals, for roads, for different things like that, the opposite of what the US would ever do.

And so I think there is a subset of people in DRC and really the whole continent who feel like if we could get better control of our own resources, we can definitely deal with China and we can make a deal with them that would be better for us than the other deals, which means that we can play them off against every other player, which means we can improve the broader environment and get the most out of our mineral resources.

And that is the thing that the U.S. is terrified within Congo because before they’ve had pretty much a total free run. They have a lot of control over the government of Congo. You know, Tshisekedi actually cancelled his appearance at the Russia Africa summit this year at the last second, most people say, because he was trying to make sure the U.S. didn’t think that he was moving into like a quote unquote Russian camp and wanted to show he was open to them and that he loves the West, blah, blah, blah, so on and so forth, very close ties to China, very close ties to Belgium.

And so they’ve pretty much for years until, you know, the early to mid 2000s had total control of the economy of Congo. It’s kind of gotten away from them. It doesn’t seem like they were really fully paying attention to it for a while. And now I think they realize, Oh, wait a second. If Congo gets itself together politically and they start aligning with China, then they’re going to have a stranglehold on our mineral resources. They consider them their mineral resources, even though they’re Congolese. And if they start working with Russia, then we won’t have the military control over them. And that means it’s a wild card. And that means our companies will have to basically deal with these angry Africans who want their money, the Chinese who are trying to get their money, and we’re not going to be able to necessarily stop them militarily, and that could be a disaster. So it’s all unfolding in a lot of different ways.

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If you follow the diplomatic intrigue of Kinshasa, the capital, there’s a lot of intrigue going on right now in DRC and lots of rumors. UAE also a big player there. UAE, of course, is the largest purveyor of gold on earth, the biggest gold markets.

And so ultimately there’s a lot of different changing of hands and backroom deals and different pieces going on. But I think when you go to the average Congolese, especially in the mineral resources area, the main thing they want is no matter who is there doing the mining for them to follow by some serious rules, including environmental rules, because the using of mercury, which is major for mining and other things has massively poisoned many of these areas as well. So from an environmental level, from workers rights level, I think that’s what you’re hearing from sort of the masses of people is a need to actually address these issues so that they can make a livelihood and not die at 32 of being crushed in a mine or having cancer from mercury.

Eleanor Goldfield: Yeah. And of course, as I’ve read a lot of the people mining, just like they were in this country, are children. And so this is a further need to incorporate workers rights and basic human rights really.

And I’m curious, I mean, you were talking about M23 and how they’re backed by Rwanda. And of course, the way my brain works, I’m like, Rwanda? And question mark the US? I just, I can’t help but that being the next question.

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So how many of these militias or military groups that are all clashing, how many of them are backed by, either by proxy or directly, a Western power that’s vying for that space?

Eugene Puryear: I would say a good number of them. I mean, certainly the M23 and the groups that are backed by Rwanda. I mean, Uganda is playing a big role. It’s different than Rwanda because Uganda has an agreement with the government of DRC to wage a joint war against two groups, one ADF that claims to be tied to ISIS, and another one Codeco that claims a lot of things, but it’s really mainly known for being really, really brutal.

And so that is not seen as like negatively in a lot of the international context because it’s like technically legal, but I think when you look at groups that are aligned with them, you know, Uganda, whatever its pretensions to be, you know, non aligned, tends to align much more with the West and to be more in the Western camp.

And I think Rwanda 100 percent is in the Western camp. Always has been since the rise of the RPF, Rwandan Patriotic Front governments. You know, in many, it’s one of these things that if you ask them, the RPF cadres, they will swear up and down they’re not tied to the West. But at the end of the day, when you really look at the realities of it, they have been instrumentalized as a major force for Western powers.

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And some people actually call Rwanda the Israel of Africa, because they’ve kind of been seen as a very reliable pro Western state that can help, you know, keep the things in that region within a realm that the West is comfortable with.

Now, you know, there are some differences between the West and Rwanda over this, and it’s unclear how deep they are. The U.S. and France have been, well really more the U.S. less France have been very critical of Rwanda and saying you have to stop this. You shouldn’t be backing M23, but on the same token, they’re still working with Rwanda in a range of different areas.

So depending on who you ask, it’s maybe kind of like a small disagreement. Others are saying that it’s more, a more serious breach. There’s more criticism of the West coming out of Rwanda in the past like year or so because of this criticism. And so, you know, where that’s going, I don’t know exactly.

Obviously the West really wants to keep Tshisekedi in their column against China and against Russia. So they’re willing to verbally be very critical of Rwanda. But, you know, financially, for instance, they’re also playing a role in backing Rwanda as the new kind of security contractor all across Africa. You know, it’s the French who are paying for the Rwandans to be in Mozambique, and so on and so forth.

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So it’s an interesting reality there. But I do think that we can see that the West in many ways is kind of backing both sides against the middle. Because on the one hand, they’re for Rwanda. They also have a good relationship with Kenya. They’ve said they’re in favor of the EAC force that Kenya has put forward that Congolese people hate. They’re saying they’re also for Tshisekedi.

So I think in many ways, the U.S. is really trying to be over top of the board and move all the pieces. And I think France is the same way. It’s, you know, typical really of imperialism, especially French imperialism. Whoever is the opposition of the day is living in Paris. Then they go back to the country and they switch places with the other people.

And I think this is very much that kind of situation where they’re looking, okay, how do we maneuver all these different pieces, kind of play one side off against each other to make sure at the end of the day, we still have control.

And there are some who believe that really the Western powers think they benefit the most from chaos, from not having strong states, and they prefer to have Rwanda, DRC, Burundi, Uganda, always fighting both each other and also fighting internally these various armed groups and insurgencies and so on and so forth, because the minerals keep flowing no matter what.

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And so without any strong states, all the minerals are flowing out, the money is still being made, but there’s no one who can make any strong legitimate claim on that, the rights to that mineral wealth that could potentially upend and change the reality for the multinational corporations.

Eleanor Goldfield: So, kind of wrapping up here, I know nobody has a crystal ball, but I always try to think of what, not only what we can do as people who live in the U.S., but also what we should be looking for, because as you mentioned, Tshisekedi is trying to make sure that he appeases The West, but also is looking at the Sahel and being like, I don’t want that to happen to me.

So do you feel that there is hope that he might just be the leader that folks in Congo are looking for? And if so, does that place him as so many in Africa have experienced before with a giant target on his head because he’s not willing to play the Western imperialist’s game?

Eugene Puryear: I think, sadly, it’s unlikely. His partisans, I’m sure, would be upset that I said that. But I don’t think so.

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And you know, there’s elections that are coming up, maybe in December of this year, could get pushed into 2024, and you can already see that, you know, Tshisekedi, first and foremost, kind of came into, it doesn’t really seem like he won the election, let me put it to you like that.

Almost everyone else thinks another person who’s now running again won the election, but nonetheless, through various politics, he was able to get in there. And I think many people feel that, you know, he more or less is just another one of the leaders of Congo who can talk a great game. I mean, Mobutu could talk a great game, but who really, at the end of the day, is more concerned with the traditional desires of the Congolese elite, which is to just, you know, skim the cream off the top.

I think Tshisekedi is a little bit better than that in my imagination. I think that he has some pretensions to do a little bit more, but that’s only because it’s impossible to not do a little bit more, and stay in power from my point of view, given what we’ve seen in the Sahel, but I think we’re getting ready, sadly, probably to enter into another period of political turmoil around this issue of the elections, where I don’t think any of the players who are really involved seem to have the same type of social vision as what’s coming, from say, Ibrahim Traore and Burkina Faso, or if we look back to even the history of someone like Patrice Lumumba, we’re not really seeing that kind of discourse.

We’re seeing vaguely developmentalist discourse still generally being tied to the West, a desire, it seems, not to make bold moves to really sort of break with the status quo, and ultimately kind of a floundering and slight balkanization or sort of adhering to this balkanization of the country, which is worse.

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So I think in some ways, if you look at Tshisekedi’s policies, it does represent in many ways the fact that the Congolese street, if you will, is having some success and that no one thinks they could be president without talking about roads, schools, hospitals, and to be seen to be building some of them to be renegotiating mining deals and so on and so forth, but beyond sort of those kind of most basic moves in that direction, it doesn’t really seem as substantive as it potentially could be.

And I think we’ll continue to see that. I always hope to be surprised, but I suspect that the DRC is going to be in, sadly, another round of political turmoil until someone really emerges who can unite the people around an agenda to really radically change.

And I don’t know if that’s going to come from anyone in the traditional political class, Tshisekedi comes from the political class, Jean Pierre Bemba who now is working with him, you know, Martin Fayulu, all the people who are, they’re all contending with one another, but they all basically come from the same place, which is either the elite under Mobutu or the elite who are in the opposition, living in Europe, some of which started working with Mobutu in the nineties. And I think we need a cleaner break from that reality.

And there’s a lot of other players and forces that are going to be there too, as well. So it’s going to be an important country to watch, an important issue to watch. I think what happens in the December election is going to be vastly consequential for the African continent.

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Eleanor Goldfield: Yeah. And so as you were talking, I just thought of one more thing to take us out here, which is I mean, I’m talking to you on an instrument that requires those rare earth minerals, right?

Like we in the West grow up basically using the wealth of Africa in order to do our work and our play and everything else.

And I’m curious if you could talk briefly about why that’s important to make those connections, because, you know, as I like to say, imperialism is also a home game.

Why is it important to take notice of what’s going on in DRC and how that links to our struggles here at home with regards to workers rights or the environment or anything else?

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Eugene Puryear: I think that’s a great question. And I think it speaks to the fundamental dishonesty of many of these big corporate giants in the West about what they’re doing.

I mean, every company that’s getting cobalt, nickel or whatever out of DRC, they’re all linked up to these organizations that are securing minerals with human rights, all of that is totally fake.

And so you have, you know, Apple, Ford, General Motors, Nokia, whoever, anyone who’s using any of these batteries or anything like that, especially batteries when we’re talking about DRC, that essentially you are directly tied into the the exploitation of Congolese workers, but you’re also directly tied into your exploitation as a worker by the same companies.

I mean, you look at what’s happening with the auto workers, look at the average person working at an Apple store. I mean, those people are not being helped by the huge trillions and billions of dollars that are being generated by these corporations.

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So I think it’s a question of who really controls the wealth of our society, who really controls the resources, and that’s the real connection. Like, should the people in DRC get the vast majority of wealth from anything that’s taken out of their country? Absolutely. Should the workers who put together the parts for all of these things that we buy get the vast majority of wealth that’s created from the sale of those products?

And so it’s, you know, part of the same supply chain, but asking really the same question. And I think when you start to look at the interest of poor and working class people, then the interests start to align to a much greater degree, because we don’t really have an interest in making Tim Cook any richer. So it’s really no skin off of our back if more of the wealth is going to people in Congo, as it doesn’t hurt them if more of the wealth is going to the workers at the Apple store.

And perhaps if we were thinking more about the workers in Congo and the workers at the Apple store, we could be able to have some sort of equitable trade relationship, because when you talk to people in DRC who are in this area, they don’t want mining to stop per se, although, you know, there are many people who would like to do other things and that’s why they want education, more access to resources.

They just want, if there’s going to be trade for it to actually be fair and to benefit them. So it’s a win win proposition, but we can’t have a win win proposition when, you know, we’re actually talking about these big bosses of these big corporations rather than the relations between working class people between the two different countries.

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Eleanor Goldfield: Absolutely. Thank you, Eugene. That is a brilliant way to wrap it up. Really appreciate you taking the time to come on the show and to give us so much important information about what’s going on in DRC. Appreciate it.

Eugene Puryear: Right on. Thanks for having me.

If you enjoyed the show, please consider becoming a supporting member at Patreon.com/ProjectCensored

Please consider becoming a supporting member at Patreon.com/ProjectCensored

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Eleanor Goldfield: Thanks everyone for joining us again at the Project Censored radio show. I’m your co host, Eleanor Goldfield, and we’re very glad right now to be joined by Giulia Messmer, who’s a spokesperson with Sea Watch, also works on the media team, and has been involved in anti racist and anti fascist struggles since 2015.

Giulia, thanks so much for joining us.

Giulia Messmer: Thanks for the invitation.

Eleanor Goldfield: So I want to start with some language, actually, because I find language fascinating in terms of how we think about things. And I remember reading, one of the first things I read over at Sea Watch was something that talked about Europe’s reception crisis.

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And I thought the framing of that was really interesting versus immigration crisis or, you know, illegal immigration crisis or something like that. Can you talk a little bit about why you frame it as a reception crisis?

Giulia Messmer: Of course. So, I mean, for us, the situation at the European external borders, meaning also in the central Mediterranean, is definitely politically created.

It’s nothing that occurs naturally or that just comes up or is a coincidence, but it’s definitely out of a political will not to change anything or to prevent people from coming to the European Union, and to claim their natural and human rights to claim asylum. So this is why we phrase it as a crisis of reception, a crisis of the European border regime, and not as so called refugee crisis, because it’s just factually not.

Eleanor Goldfield: Right. And I’m curious, because it’s a reception crisis, Sea Watch works to save people in the Mediterranean, but what happens after you rescue them?

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I mean, Europe is increasingly hostile to people coming into Europe. So where do you take them?

Giulia Messmer: Yeah, so Sea Watch is a sea rescue organization. I don’t know if everybody knows about what we’re doing.

So we have two ships currently operative and also two airplanes. So what we do is actively try to rescue people from distress at sea, but also trying to fly over the central Mediterranean and observe and monitor human rights violations, as well as find cases of distress. And then, of course, communicate to the competent authorities and any ship in vicinity.

So when we rescue people out of distress, we of course go, and we want to go to the nearest port of safety, which means that state authorities have to allocate the nearest port and the nearest suitable port of safety for ships that just rescued people in distress at sea. The situation at the moment is that Italy really tries to harshly criminalize and hinder civil sea rescue and therefore also migration.

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So what Italy is doing at the moment is allocating ports that are hundreds and hundreds kilometers away often or hours, also for little or smaller ships that rescue people. So for example, we have a ship called Aurora, and it’s like 14. 5 m long, so really not that big. And when we rescue people, sometimes 50 sometimes 60 sometimes 70 people, it means that we need to find a port and we need to go to a port as soon as possible because the situation on the ship is often like people are sitting super close together. There’s not much space to be, to sleep, to live and to survive.

So, we of course try to be as fast as possible, but with these political games it’s often really hard to be as fast as we usually could be going to Lampedusa, for example, which would for us, and our like area of operation be the closest port.

And when then people can disembark safely, they are taken to camps in Italy, to reception centers, and then also redistributed over the whole country. We at Sea Watch, we don’t follow or we don’t work on or in reception centers itself. So, we don’t have usually insights on where people go in the end, where they are allocated and where they are distributed to. We really concentrate on rescuing people at sea only.

Eleanor Goldfield: Of course. I mean, that’s plenty to do. The Mediterranean is not exactly a small area.

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And I’d like to get into a specific story that, I mean, to be perfectly honest, a lot of these stories don’t reach us in the United States, but this one did.

Back in June, more than 600 refugees died when their boat capsized several hours after sending out distress signals, which once received by Greek officials led to what many have called the murder of these people by Greek officials who left them to die after also attempting to tow the boat, which then caused it to capsize.

Now, of course, this is just one story of hundreds like it. And on the Sea Watch site, you point out that more than 27,000 people have died in the Mediterranean since 2013, which is staggering. And, on your report of this incident, there’s an image which reads, the Mediterranean isn’t just a graveyard, it’s a crime scene.

And so I’m curious, when these distress signals are sent out, when there’s evidence of a boat needing help, is there any official European rescue support? And what happens, for instance, if the Coast Guard of Italy or Greece, what do they do when they see that this is happening?

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Is there any kind of collaboration that you get from these official European entities?

Giulia Messmer: So when there’s a distress case at sea and when there’s like distress signal either because, like our airplane, for example, found a distress case, then communication needs to be to or needs to go to state authorities, of course, because they are, or they have the duty to coordinate any kind of rescue.

So sea rescue at the European external borders is a state duty. So these state authorities, they are called rescue coordination centers and every state with access to the sea needs to have one, and they are really obliged to then coordinate.

That means communicating to ships that are in vicinity of the case, and then see how these people in distress can be rescued as fast as possible.

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But of course, over the Mediterranean, there’s not only our airplane that operates, but also for example, Frontex airplanes. So Frontex is the so-called Coast Guard and Border Protection Agency of the European Union.

And they also monitor the central Mediterranean Sea, for example. So when normally when they fly over the Mediterranean with drones, for example, they operate or with airplanes, then they are also obliged to send communications to all boats in vicinity of a distress case, but also to state authorities. But what we witness is that often this communication is not handled correctly, is intentionally not done.

And this is why we definitely see a complicity or we point to a complicity of state actors, but also Frontex, for distress cases, for drownings.

And this is why we are speak of crimes against humanity, even, so far in the Mediterranean, but also state crimes in total. And this is why people are not only drowning by coincidence, but European states, are letting people drown on purpose in the Mediterranean. And this is, of course, not a single case at the European or external borders, but if we also look to the eastern borders in the European Union, there’s also a lot of violence going on: pushbacks, pullbacks, to hinder people coming into the European Union. So it, this is really no coincidence.

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And I mean, in the United States, there’s also huge discussions now about the border with Mexico, for example, where we see the same thing. And this is why we always have to compare as well and see how states are dealing with borders and how border regimes are actually set up to protect nation states, and not people.

Eleanor Goldfield: Absolutely. And I want to get in to that in a moment, but I first want to highlight, because you mentioned these, crimes against humanity and clearly, these nation states are not facing any kind of legal repercussions for perpetuating these crimes against humanity, yet folks at Sea Watch and other rescue coordinators have faced charges.

Can you talk a little bit about that?

Giulia Messmer: When talking about criminalization, we of course have to point out the huge difference in resources of states trying to criminalize search and rescue actors, trying to criminalize activists that help people on the move to arrive safely. And then on the other side, having NGOs that are financed by donations of civil society, mostly, only, and of course, don’t have the resources to counteract states and crimes against humanity.

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So, Sea Watch, and an organization based in Berlin, ECCHR, we try to actually go in, in front of the International Criminal Court to point to exactly that, to point to that human rights violations are happening on a large scale basis in the central Mediterranean sea, and that these constitutes crimes against humanity and that states need to be taken accountable.

So on the other side, talking about criminalization against NGOs, search and rescue actors, activists. Of course, the situation in Greece is horrendous when it comes to criminalization, but also Italy tries to persecute individual people.

But this is, of course, also a means to criminalize migration in the end. So we are one step in between criminalizing migration, criminalizing people on the move. And this can also be observed by law and changes in legislation that have been done after huge shipwrecks caused by states.

But then what it has led to, for example, in Italy, there was a shipwreck in February, I believe, the so called Cutro shipwreck. And after this Cutro shipwreck, the sentences for so called boat drivers were leveled up. So boat drivers are people that are themselves on boats in distress that steer the boats and often they are forced or don’t have any other economical financial means to come to the European Union, and then are criminalized on the basis that they steered the boat to flee, and to claim their actual right to claim asylum.

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And, what we see is now a huge wave of increased sentences against boat drivers. It even comes that far, that several months ago, a father was charged for the murder of his son because his son died in the Mediterranean while crossing.

So, we really… When we talk about criminalization, we really, really have to talk about criminalization of people on the move because it doesn’t receive attention. Also because of course, racial discrimination and racial bias.

Eleanor Goldfield: Yeah, absolutely. And, and so with that, drawing connections here. Right around the same time that the boat capsized in June, the Council of the European Union agreed on reform of the Common European Asylum System, CEAS which further restricted access to asylum in Europe.

And here in the United States, many people, including children in the recent months, have died trying to cross the Rio Grande, that’s the river between Mexico and the United States, because the governor of Texas has installed literal floating barbed wire which essentially acts as floating death traps for those trying to cross.

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And border agents have also been ordered to not rescue people if they see them drowning or struggling, even with regards to children.

So basically, what similarities do you see in the fights based on what you’re experiencing in Europe and what you see happening here in the United States as well?

Giulia Messmer: I really believe it’s about so called border protection in terms of protecting states, state territory, and nation states in the end. And this is not only to be seen now in Europe and in the US, but also when looking at Australia, for example, then we see a state that actively puts people in prison camps, not even on their own territory, but on a separate island, to hinder, to criminalize, to really put people in even another space, another location to not having to deal with them, but also to basically violently halt migration in the end.

And, this happening around the world also just like points to an understanding of migration, not as part of humanity as it always was, but as something that states can stop. And this is also a belief I really don’t understand because people will always find their way.

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It’s a question of how dangerous and how violent are we making passage for people to find security in the end. And I mean, activists around the globe are calling for safe and legal passages, not only from North Africa to the European Union or to Europe, but also between Mexico and the US and still there’s so much struggle, there’s so much fight and still we’re not even close to having it done.

So I’d say it’s similar in actions when it comes to how states try to criminalize and violently halt migration.

Eleanor Goldfield: Right, and I’m also curious your perspective on the role of these nation states in perpetuating it, like, in the United States we talk, we being activists, we talk quite a bit about how, well, if you wanted to stop migration, then stop destroying the countries from which they come. You know, people don’t migrate because life is great at home.

They migrate because they don’t have a choice. And the United States, of course, as the world’s largest empire, has a huge role in perpetuating the dangerous situations and violent situations that people flee from.

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What does that look like in Europe in terms of European nation states perpetuating violence from which people flee?

Giulia Messmer: I mean, looking at the history of colonialism now, Europe plays a huge part, the biggest part, in colonial history. And this is what we also see today.

You know, when talking about colonialism, we can’t talk about something that was in the past, and it is not happening now. New colonial structures are still perpetuated by states through economical means, through so called development help, through contracts and agreements with authoritarian states, like, for example, Tunisia, but also support for the so called Libyan Coast Guard, to stop migration to the European Union.

So when looking at the central Mediterranean, we really also have to look at those agreements at those corporations. Now also this year, especially with Tunisia, and this not to altruistically kind of help in quotation marks, countries in North Africa, but to really have some kind of self purpose out of it.

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So when talking about Tunisia, like in the beginning of the year, the president started a hugely racist campaign with the racist speech given by him. And since then, especially people on the move from the sub Saharan region, especially black people on the move are faced with such a wave of violence, of criminalization, of discrimination, of forced disappearances by state authorities, by violence from the civil society.

And this is why we also see an increase of a movement from Tunisia to the European Union, not only by people on the move from sub Saharan region, but also by Tunisian citizens that can’t stay in their country anymore because it just gets too dangerous.

So, when we then see that, for example, the German government and German police are trained, are given trainings to Tunisia, to the coast guard, are given technical equipment, then we need to ask ourselves, why is this happening? What is the purpose behind it? Is it really to support people on the move?

Or is it by coincidence to stop migration to the European Union?

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Eleanor Goldfield: Yeah, absolutely. It reminds me of what’s what’s called the deadly exchange here, which is the the exchange of information and tools via the the IDF and Israeli forces to police departments here in the United States, including the Border Patrol .

So I’m curious, because of your experiences here, what are your thoughts for the future? I mean, I don’t see the rise of fascism abating in the United States or in Europe, really.

Do you foresee your work becoming more and more difficult and more and more cracked down on by the judicial systems in Europe?

Giulia Messmer: I mean, we definitely see a huge effort to hinder civil sea rescue in the last couple of years. We see state authorities not communicating anymore on the Mediterranean with civil sea rescue.

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So, for example, Malta, a state that has been communicating a couple of years before, does not do it with civil search and rescue actors anymore at all.

What Malta actually does is often try to equip distress cases with food, with fuel and with water so they make their way on their own to the Italian search and rescue zones.

Search and rescue zones in general are the zones and the areas on the Mediterranean sea that different states are responsible for.

So we have a Maltese search and rescue zone where Maltese authorities need to coordinate, are obliged to coordinate by international law, but when Maltese authorities try to hand out resources to boats that then they make it to the Italian search rescues, then we clearly see a divergence of responsibility or a complete ignorance to responsibility, not having to rescue the people and bring them back to their own country.

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Eleanor Goldfield: Yeah, it seems like if you could give people water and food and fuel, then you could just take care of them in general, but –

Giulia Messmer: Yeah, and also, like a distress case is not solved with this. Like, a distress case needs to be rescued immediately. It doesn’t mean that you hand out fuel and you just like let them go until they reach the Italian search and rescue zone because no one can be sure that they actually make it and people don’t actually drown.

Eleanor Goldfield: Yeah, absolutely. So finally, wrapping up here, I’m curious what kind of advice, because it looks different based on geography and situations like that, but what kind of advice would you give to people here who are trying to protect and ensure safe passage for people into the United States from the South?

Giulia Messmer: I mean, firstly, get involved by any kinds of means. If you have the capacity at the moment to only share information on social media about the situation at the borders in the US or in Europe or in other countries, do that, talk to your family, talk to your friends, to anyone that might be even in a slightest decision making power to change or to spread information.

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Then of course, organize. Like we can’t solve anything individually, but we have to act together as civil society and find our partners that can actually also influence decision making now.

And don’t only organize inside a country, because I really think this is a topic that we can’t solve nationally, but we have to work over borders transnationally because this is exactly what states are doing as well, and that fascist actors are doing as well.

So, if we don’t cooperate, if we don’t get in touch, if we don’t build movements transnationally, then I really, really think we lose. But at the same time, take care of yourself. Because I really believe if we don’t take care of ourselves, especially while working or when working around and in a topic and in a work environment that includes so much violence, it also doesn’t serve anyone in the long run.

So, yeah, also take care of your own capacities.

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Eleanor Goldfield: Very, very well put. Thank you.

Giulia, where can folks connect with what Sea Watch does the best?

Giulia Messmer: You can find us on any socials mostly. So we’re on TikTok, on Instagram, on Twitter or x and even on Blue Sky, if you heard of that as well, the alternative to x.

And of course our website, which is Sea-Watch.org. And I think if you type in sea watch on Instagram or TikTok, you’ll find us as well.

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Eleanor Goldfield: Okay, wonderful. Thank you so much for taking the time. I appreciate it.

Giulia Messmer: Thank you for the conversation.

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News

Bandcamp’s Power Struggle Amid Layoffs of 50% of Staff

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By Shealeigh Voitl

Much has been said about how broken the music streaming structure is for artists. Music insiders have long criticized services for their lack of transparency and disregard for songwriters and performers. Just last week, Music Business Worldwide reported that Spotify plans to slash its already meager royalty rates for its lowest-streaming artists.

In 2015, singer-songwriter Joanna Newsom, whose music has never appeared on the platform, called Spotify a “villainous cabal of major labels” that was “built from the ground up as a way to circumvent the idea of paying their artists.”

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Apple Music, Spotify’s biggest rival, has made some improvements, increasing their payout to roughly a penny per stream. But most artists today won’t be able to make a “sustainable living out of (releasing) music,” Mark Mulligan, an analyst at Midia Research told the Guardian in 2021. “Streaming only adds up when you have billions, not millions, of streams,” Mulligan explained. Put simply, streaming benefits major record labels and superstars; others are often forced to forge a different path.

So, what’s different about Bandcamp, the online record store and distribution platform based out of Oakland, California? For one, Bandcamp allows artists and labels to upload their music directly to the site and set their prices for digital and physical products, with Bandcamp taking a 10-15 percent cut of the sales. Listeners can stream via Bandcamp, but can typically only enjoy unlimited streaming if they purchase the music.

On Bandcamp Fridays, which the company began at the start of the pandemic to help artists make up for a loss of touring income, the site waives its usual revenue share, allowing fans to directly support artists and labels once every month, with 82 percent of proceeds going to the artist/label any other time you buy from Bandcamp.

So, where Spotify and others may fail to adequately value art and the artists who create it, Bandcamp gives fans the opportunity to invest in the music and performers they love. Bandcamp also launched its online music publication, Bandcamp Daily, in 2016 for its robust music community, frequently featuring independent, relatively unknown artists and eclectic and experimental sounds from all over the world.

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Instead of positioning itself as a mainstream cultural influencer, as Pitchfork has done increasingly since being bought by Condé Nast in 2015, Bandcamp has remained focused on providing a platform for independent and emerging artists to connect directly with their audiences and maintain artistic authenticity.

After Epic Games, the video game and software developer behind games such as Fortnite, bought Bandcamp in 2022, long-time Bandcamp enthusiasts wondered how the acquisition would ultimately transform the platform. A year later, Bandcamp workers formed a union known as Bandcamp United, composed of engineers, writers, project managers, designers, and support staff, who sought to address historical disparities in pay and access to paid time off, among other issues.

Less than two years after the Epic Games sale, Songtradr, a B2B music licensing service, acquired Bandcamp, and workers were sent into freefall. This month, Songtradr laid off about half of Bandcamp’s staff, including three of six editorial staff at Bandcamp Daily and forty members of Bandcamp United’s sixty-seven-person bargaining committee.

JJ Skolnik, a former senior editor at Bandcamp Daily, tweeted, “officially laid off, after two weeks of limbo where I expected that would be the case but had no confirmation. nearly eight years at bandcamp and it’s over.”

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Bandcamp United also announced this week that Black workers were disproportionately affected by the layoffs, with only four of Bandcamp’s nineteen Black employees receiving job offers after the Songtradr deal.

When asked by Pitchfork if Bandcamp’s “artist revenue shares, user experience, or the editorial platform Bandcamp Daily will be affected by the acquisition,” Songtradr declined to comment. The following week, Songtradr CEO Paul Wiltshire told Billboard, “We think Bandcamp is a great platform as it is. There’s not a need to change it into anything other than what it is.”

But Skolnik shared in late October that the cuts hurt not only those who have been laid off but also make it much harder for remaining staff to do their jobs. So, now, what happens to Bandcamp Daily and its essential, unparalleled voice in underground music? What becomes of Bandcamp?

Trusting Songtradr’s word of “business as usual” seems futile after the layoffs. The landscape of music journalism has shifted a lot in the last decade, emphasizing, as NPR music critic Ann Powers put it in 2021, “pop’s 1 per cent (sic) to the extreme.” So, to contemplate the loss or distortion of something like Bandcamp Daily, which has been a lifeline to thousands of independent artists who make music for the love of music, is crushing. 

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Bandcamp has long been a haven for artists who reject the music business’s exploitative practices or have otherwise been marginalized by the corporate ethos that permeates nearly every aspect of the industry.

As that industry continues to grapple with issues of transparency, artist compensation, and creative authenticity, the fate of Bandcamp serves as a pernicious reminder of the ongoing struggle to preserve the voices of underground music and independent artists and those who listen with keen appreciation.


Shealeigh Voitl is Project Censored’s Digital and Print Editor. A regular contributor to the Project’s yearbook series, her writing has been featured in State of the Free Press 2023, Truthout, The Progressive, and Ms. Magazine.

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Mutual fund to ETF conversions pose difficulties, Deloitte finds

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Visit our ETF Hub to find out more and to explore our in-depth data and comparison tools

Mutual-fund-to-ETF conversions have become a way for asset managers to refashion investment offerings for investors, but they can be lengthy and arduous processes, a new study has found.

Operational risks, such as constraints and logistical issues, pose challenges to asset managers looking to convert mutual funds, according to the recently released 2025 Investment Management Outlook from Deloitte.

These obstacles include brokerage account requirements, distribution channel arrangements and issues relating to managing fractional shares, the report stated.

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There has been a total of 119 conversions, according to data from Morningstar.

This article was previously published by Ignites, a title owned by the FT Group.

The first one, led by Guinness Atkinson in 2021, was initially viewed as a revolutionary development that would galvanise the industry’s move towards ETFs and away from mutual funds, said Alex Alberstadt, counsel in the investment management group for Seward & Kissel, LLP, who worked on the conversion.

“At the time, they were looked at as a clean process. It felt like there were not all these bells and whistles and extra layers of costs,” Alberstadt said.

However, “there are operational issues that everybody has to be up front about, and when you plan a conversion, you have to manage through these issues,” she said.

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More than $60bn in assets have been converted from mutual funds into ETFs, according to the Deloitte report.

Firms such as Dimensional Fund Advisors, Fidelity and JPMorgan dominated the flows across the conversions through April, Morningstar data shows.

A spokesperson for DFA declined to comment when reached.

Fidelity has recently filed to convert two municipal bond funds into ETFs next year, according to regulatory filings. Once the conversions are finalised, Fidelity will have completed 14 in total, according to Morningstar data.

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“Fidelity believes the conversions will provide multiple benefits for investors of the fund, including lower expenses, additional trading flexibility and increased portfolio holdings transparency,” the manager said in a Q&A on the conversions published on its website last week.

A spokesperson for the manager did not respond to a request for comment on operational hurdles it has faced in the conversion process.

But analysts agree with Deloitte’s findings.

“There’s a lot of work in the background that goes into making these conversions go smoothly . . . If you’re going to do it, it has to be done right so that your clients have a simple experience,” said Dan Sotiroff, a Morningstar analyst.

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“Conversion is usually for smaller funds and can be a distribution strategy as much as it is a marketing strategy. Companies can use them as a way to get flows, but that doesn’t necessarily pan out,” Sotiroff said.

As of September 30, year-to-date net flows into the mutual funds converted into ETFs stood at roughly $11.2bn in assets, according to Morningstar data.

And because clients need access to brokerage accounts to hold ETFs, conversions can be issues for firms whose clients do not use them. They can include clients’ holding 401(k) plans that do not typically use ETFs, according to Sotiroff.

“At a high level, you have to make sure your clients can actually hold the ETF — and that’s just the start,” Sotiroff said.

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Fractional shares also present issues, because they are available for mutual funds but not for ETFs.

Mutual fund fractional shares must be redeemed at the net asset value of the strategy during a fund conversion, but timing is a factor, Alberstadt said.

Because ETFs do not issue fractional shares, mutual fund shareholders who want to redeem before a conversion may incur additional taxes when those shares are sold.

That information must be communicated to clients and service providers in a succinct manner, Alberstadt said.

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“The issues on fractional shares all have to be planned out. There’s multiple intermediaries at the table, and it requires resources and attention,” she explained.

Firms must post a transaction review and ensure that the process was managed properly, she said.

Some of the operational challenges of conversions could be mitigated by regulatory approval of the dual-share class fund structure that was long-patented by Vanguard, Alberstadt and Sotiroff both said.

An ETF share class option would be a favourable alternative to conversions, Karin Risi, a Vanguard managing director of the firm’s strategy, product, marketing and communications, said during a panel discussion at the Financial Times Future of Asset Management conference held in New York.

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The conference was co-sponsored by Ignites.

“In the instance where you have the multiple share class opportunity, you don’t need to go through the much more cumbersome and operationally intense process of converting a mutual fund,” Risi said. “Adding an ETF share class onto a fund is a cleaner process.”

*Ignites is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at ignites.com.

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The Morning Briefing: Business owners fast-tracking exits over CGT concerns; Is a shrinking protection market bad for competition?

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The Morning Briefing: Phoenix Group scraps plans to sell protection business; advisers tweak processes

Good morning and welcome to your Morning Briefing for Friday 11 October 2024. To get this in your inbox every morning click here.


Business owners fast-tracking exits over CGT concerns

UK business owners have fast-tracked their exit plans over the past 12 months, according to new research from Evelyn Partners.

Nearly one in three (29%) have accelerated business exits in the past year, amid rumours CGT rates could take centre stage in the upcoming Budget.

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This is an uplift on the 23% who said 18 months ago that they had brought forward business exits over the previous year.

The research found nearly a third (23%) of the 500 business owners with turnovers of upwards of £5m surveyed by Evelyn Partners who had fast-tracked their exits in the last year had done so because of worries about an increase in CGT.


Is a shrinking protection market bad for competition?

The UK protection market is lucrative but cut-throat as insurers battle for a shrinking market share amid an ongoing squeeze on incomes. This has affected their bottom line, making some businesses unviable.

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However, experts say the departure of insurers has been happening since the 1990s. Notable names include AXA, Bupa, Old Mutual and Scottish Provident.

“Insurers large and small have always come and gone from the protection market,” says Kevin Carr, protection consultant and MD at Carr Consulting.


Consolidation of consolidators will not be a ‘dramatic shift’

If the consolidation of consolidators mooted for the advice space happens, it will unlikely be a “dramatic shift” in the market, NextWealth consulting director Emma Napier has suggested.

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Napier told Money Marketing she believes consolidation of consolidators could happen, but it is not going to be a “great big turn” for the industry.

“It comes down to the process that a consolidator has managed to embed,” she said. “The consolidation of consolidators will only occur if the seller finds the process [of buying small advice firms] too slow and needs to recapitalise, and the buyer can quickly see a clear route to market.



Quote Of The Day

As the old saying goes, failing to prepare is preparing to fail – and nowhere is this more pertinent than on Budget Day.

– Hannah English, head of DC corporate consulting at Hymans Robertson, comments on the importance of DC schemes ahead of the upcoming Budget.

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Stat Attack

Women across the UK are facing a stark savings shortfall, with nearly one-third (29%) saving less than £100 a month, according to a new report by Schroders Personal Wealth (SPW). The report reveals financial gaps between men and women that span investments, pensions and even inheritances. Key findings:

29%

of women save less than £100 each month, versus 15% of men. Only

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17%

of women feel very confident about achieving their long-term financial goals, compared to 29% of men.

53%

of women cite a lack of extra cash as their main barrier to investing. Just

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26%

of women have a stocks and shares ISA, compared to 45% of men. Only

13%

of women are very confident they’ll be able to leave an inheritance, compared to 22% of men.

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Source: Schroders Personal Wealth 



In Other News

As part of Abrdn’s overall sustainability strategy, the Abrdn Charitable Foundation (aCF) has launched its inaugural innovation fund.

The fund is open to charitable organisations and other non-profit entities across the globe.

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Organisations from across the UK, Americas, Asia-Pacific and EMEA, the four regions where Abrdn operates, are encouraged to apply.

One grant up to a maximum of £50,000 (or local currency equivalent) to be awarded per region.

The fund is looking to provide organisations with resources to pilot new projects linked to technology and innovation within ‘Tomorrow’s Generation’.

This features two themes – people and planet, which includes helping people overcome barriers and gain access to opportunities aligned with education, employment and financial wellness, as well as protecting nature and addressing climate change.

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The application window for 2024 is from 1 October to 1 November.


UK executives dump shares on fears of Labour capital gains tax raid (FT)

Why even at 20 you should care about pension changes (BBC)

Dollar bulls suffer setback as traders add to Fed cut bets (Reuters)

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Did You See?

Mark Dampier, an independent financial consultant, explores the reasons why active management is over.

He writes: “The changing nature of the asset management industry is a wonder to behold.

“When I first started out, the main recommendation for investment was a managed bond. Partly because so many adviser firms were being set up by those who had worked in the insurance industry selling life bonds and also because they would pay 5%-plus commission.

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“At that time, unit trusts paid 3%. It wasn’t hard to see what was going to be sold the most.

“The 5% withdrawal, often described as tax free, was another selling point. Do you remember the income surcharge investors had to pay for their dividends too, again helping the sales of insurance bonds? And, of course, no regulation to begin with. What a cowboy’s charter.

“It’s good to see how much has changed – mostly for the better. The Retail Distribution Review was a big change, and the Consumer Duty has signalled a turning point for old poor practices.

“Meanwhile, the active management industry is now under the most pressure I have ever seen.”

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Read the full article here.

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Alton Towers 2024 dates and costs, tickets, prices and location

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Alton Towers is a popular UK theme park

IT’S FAIR to say that Alton Towers is one of the UK’s most-loved theme parks.

If you’re thinking about visiting the attraction, make sure you read our essential guide first.

Alton Towers is a popular UK theme park

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Alton Towers is a popular UK theme parkCredit: Alamy

Alton Towers Resort is one of the UK’s most popular theme parks, with 40 rides and activities spanning from record-breaking rollercoasters to an indoor and outdoor waterpark.

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Established on April 4, 1980, the Staffordshire-based theme park’s initial rides included the UK’s first-ever double loop roller coaster — the Corkscrew.

It is the largest theme park in the UK, covering 550 acres.

A new £12.5 million indoor rollercoaster codenamed ‘Project Horizon’ is set to be built, but very little is known about the project so far.

READ MORE ON ALTON TOWERS

Opening times

Alton Towers opened its doors for 2024 on March 16.

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The theme park closes over the winter, and this will be on November 7, 2024.

However, the theme park runs a number of seasonal special events, which are detailed below.

How to get there

The address for Alton Towers is Farley Lane, Alton, Stoke-on-Trent. ST10 4DB.

Located in Staffordshire, near the village of Alton, the nearest motorway exits are:

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  • M1 Northbound – Junction 23a
  • M1 Southbound – Junction 28
  • M6 Northbound – Junction 15
  • M6 Southbound – Junction 16
We take a ride on the nerve-shredding Nemesis Reborn rollercoaster at Alton Towers

For those travelling by public transport, Uttoxeter is the nearest train station to the resort.

From there you can take a 20-minute taxi or the 30-minute X41 bus.

An Alton Towers coach is also bookable through their website.

The bus departs from Birmingham Newman University, Northfields Super Store, University of Birmingham, TK MAXX New Street and Freffs Scott Arms Shopping Centre.

Ticket prices

Like most parks, it’s always cheaper to buy Alton Towers tickets in advance from their website.

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Advance Alton Towers tickets can start at:

  • 1 Day Pass — £29
  • 2 Day Pass — £48
  • Short break at the onsite hotel — £90 per family
  • Waterpark pass — £18
  • Golf 18 Holes — £6

On the day tickets start at:

  • 1 Day Pass — £69
  • 2 Day Pass — £80
  • Waterpark pass — £25
  • Parent and Toddler pass — £68

The theme park sells annual passes with discounts.

Alton Tower’s £99 Silver Pass can get theme park lovers up to 10% off food and drinks and a further 10% off the waterpark and Alton Tower’s Dungeon.

The £139 Gold Pass will beef this discount up to 20% and offer benefits such as a Bring a Friend voucher and Discounted Fastrack.

Merlin Annual Pass holders get a minimum of 200 days of off-peak entry to the park.

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You can buy tickets on the day you visit from the admissions team, but prices are subject to availability and bookings may sell out.

Alton Towers’ best rides

Best for thrill-seekers — Nemesis Reborn

Nemesis Reborn is 'smooth, slick, exciting and terrifying in equal measure'

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Nemesis Reborn is ‘smooth, slick, exciting and terrifying in equal measure’

Or features writer Richard Moriarty for The Sun tested out the latest addition to the park with his son, and had this to say about it:

“Daddy, this is awesome!” screamed my son as we were whizzed around the 716-metre track at speeds of up to 55mph.

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As the name suggests, Nemesis really has been reborn. And wow. What a thrilling ride it offers.

Smooth, slick, exciting and terrifying in equal measure — it is a rollercoaster where, when you get off, you are not quite sure what just happened.

Best for families — Runaway Mine Train

There are lots of family-friendly rides at Alton Towers

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There are lots of family-friendly rides at Alton Towers

Runaway Mine Train is now the oldest rollercoaster at the theme park.

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Even so, everyone enjoys a trip on this family-friendly coaster.

Plus, if you are patient and wait to ride later in the day, you might even be lucky enough to whizz around the track three or four times.

As The Sun’s Richard Moriarty explained: “… our gruesome twosome could ride together as they are both big enough, allowing mum and dad to enjoy a coffee.”

Best for toddlers — Get Set Go Tree Top Adventure

Alton towers' Get Set Go Tree top Adventure is the perfect ride for your little ones

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Alton towers’ Get Set Go Tree top Adventure is the perfect ride for your little onesCredit: Handout

This is the perfect place to start your family day out.

You can wake up the sleeping bugbies as you glide high above CBeebies Land on this toddler-friendly rollercoaster track.

Some of the other popular kids’ rides can be seen below, so you can also plan the rest of your day while up in the air.

Alton Towers events

Scarefest

Alton Towers runs a spooktacular annual Halloween Scarefest.

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This includes Compound – a new live-action scare maze based on the Nemesis Reborn ride.

There is also a family-friendly interactive attraction called Amigos in the Afterlife.

Christmas

Their Christmas Day Out experiences (available on select days only) are the perfect way to escape dark and dreary winter days.

And for those wanting to immerse themselves in the magic of Christmas overnight, the park also runs Santa Sleepovers.

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How to save money at Alton Towers

Thrifty mum-of-three Catherine Loftohouse gave her top tips on saving money when visiting the theme park.

She told The Sun: “If you pay on the day, it could cost £68 per adult and £64 per child at Alton Towers, so this year we saved about £280 just on that one day trip.”

Catherine continued: “This year, we visited Alton Towers in September and spent about £45 on six tickets.

“My brother and I both got a pair of Sun Superdays tickets as he lives in a separate household.

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“Each pair costs about £9, as it’s the cost of nine copies of the paper (70p or £1 depending on day of the week) and then a £2 booking fee.

“Meanwhile we used a £25 adult and toddler ticket from the Alton Towers website for my husband and youngest son.”

There are many other ways to cut down on your trip.

Children under 3 can go free and the theme park offers Student tickets for £20 if you have a verified StudentBeans account.

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Any parents visiting with a toddler (under 5) can save by purchasing a Parent & Toddler pass in advance for £29.

Additional children under 5 can be added onto the pass for just £5. This offer is not available during weekends and school holidays.

And as mentioned by Catherine, through Sun Savers you can unlock our Sun Superdays offer, which gets you two free tickets to Merlin attractions, including Alton Towers.

Find out about fastrack

Alton Towers fastrack tickets offer a variety of benefits.

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As their website explains, these advantages include:

  • Less time queuing: Exclusive fastrack queue lines offer reduced waiting time on some of our biggest rides and attractions. That means you have more time to explore and enjoy everything that we have to offer.
  • Help planning your day out: Single shot fastracks come with a specific time slot to enjoy your favourite ride. Set up your fastrack slots to help plan an efficient thrill-seeking route around the park.
  • Unbeatable package deals: Alton Towers’ packages combine some of our biggest thrill rides and family favourites. Book your fastrack experience as part of a package deal to enjoy big savings.

Alton Towers parking explained

There are a number of options for parking your car at the theme park.

Standard parking costs £10 for guests. 

Gold, Platinum and Premium Merlin Passholders are entitled to free Standard Car Parking.

There is no need to pre-book your parking space as you can just scan you pass at the exit barriers.

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Standard Parking is between 15-25 minutes walk to the Alton Towers’ entrance.

You can follow the road signage to the carpark, or ask members of staff for directions.

As there are both grass and tarmac car parks, you may be parked on grass.

Express parking is charged at £20 for guests and can only be booked online in advance.

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Gold, Platinum and Premium Merlin Passholders are able pre-book Express Parking for £10 (must be pre-booked online in advance).

CBeebies Land Hotel Guests get free express parking, but hotel booking confirmation must be provided.

Express Parking is a 1-3 minute walk away from the Theme Park Entrance.

Blue badge parking is charged at £10.

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Gold, Platinum and Premium Merlin Passholders and on-site hotel guests are not charged for blue badge parking — but your current and valid blue badge must be presented, with the badge holder present in the vehicle which is requesting disabled parking.

One vehicle is permitted to park on blue badge parking per blue badge (spaces on the day will be allocated subject to availability on a first come first serviced basis).

Average Alton Towers queuing times

According to QueueTimes.com, the average waiting times for the park’s top 10 busiest rides are as follows:

  • Wicker Man — 48 minutes
  • The Smiler — 46 minutes
  • TH13TEEN — 34 minutes
  • Rita — 32 minutes
  • Galactica — 31 minutes
  • Spinball Whizzer — 28 minutes
  • Gangsta Granny: The Ride — 26 minutes
  • Get Set Go Tree Top Adventure — 26 minutes
  • Octonauts Rollercoaster Adventure — 26 minutes
  • Runaway Mine Train — 25 minutes

While you’re here, take a look at Legoland Windsor, Thorpe Park and Chessington World of Adventures‘ opening dates, ticket prices and locations.

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The Ta-Nehisi Coates-CBS Debacle: A Case Study in Mainstream Media’s Spinelessness

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The Ta-Nehisi Coates-CBS Debacle: A Case Study in Mainstream Media’s Spinelessness

In a seven-minute interview on September 30, CBS anchor Tony Dokoupil pressed author Ta-Nehisi Coates on the most contentious parts of his new essay collection, The Message, which tackles the Israeli-Palestinian conflict. The fallout continues to reverberate, with Paramount Global’s CEO, Shari Redstone reportedly admitting that CBS’s decision to reprimand Dokoupil was a “mistake.”

Dokoupil’s line of questioning was direct but fair: “Why leave out that Israel is surrounded by countries that want to eliminate it?” He also noted that the book “would not be out of place in the backpack of an extremist,” highlighting its omission of any mention of Palestinian terrorism.

Instead of engaging in an open debate, The Free Press revealed how CBS succumbed to internal backlash and forced Dokoupil to apologize. This reprimand of a journalist for merely doing his job reveals a glaring double standard in how major networks handle guests’ views on Israel.

The hypocrisy is staggering. CBS staffers weren’t upset because Coates was unfairly treated but likely because it might have been the first time he was genuinely challenged. For years, Coates has enjoyed kid-glove treatment from a media eager to praise him.

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Take his recent interview with Chris Hayes on MSNBC. Hayes echoed nearly everything Coates said, even going so far as to declare that Israel is committing a “moral abomination.” When asked if critics might accuse him of engaging in a “one-sided propaganda tour of Israel,” Coates was handed a convenient opportunity to deny it, invoking segregation and apartheid: “I am against segregation. I am against apartheid. I am against Jim Crow. Nothing will make that OK.”

This false equivalence—comparing Israel to apartheid-era South Africa and the segregationist United States—went unchallenged, presented as unvarnished truth.

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Similarly, an interview between Coates and journalist Michel Martin on Christiane Amanpour’s show was another exercise in softball journalism. When discussing Coates’ comparison of Israel to Jim Crow America, Martin lobbed a question tailor-made to invite more inflammatory rhetoric: “You say it’s a place where the glare of racism burned more intensely than anywhere else in your life. Tell us why.”

This provided Coates the platform to make blatantly inaccurate claims about “roads only for Israeli settlers” and separate roads for Palestinians—an anti-Israel trope. The interview concluded with Martin summing up Coates’ position: “So your core conclusions are: it’s an apartheid regime, and the life there for Palestinians is unbearable.”

Coates responded with more unchecked hyperbole: “It’s unbearable. It’s demeaning. It’s dehumanizing. And it’s morally unjustifiable.”

Then, in an October 3 interview on The Daily Show, Jon Stewart offered Coates near-universal praise, applauding him for his supposed bravery: “Through your discomfort… you’ve done the most important thing, which is trying to advance an understanding of a complexity that we haven’t figured out in 10,000 years.” Stewart’s flattery only underscores the absurdity of the situation: Coates is being lauded for “figuring out” millennia of conflict during a 10-day trip to Israel.

The contrast becomes even more stark when comparing this fawning treatment to a CBS interview between Gayle King and Thomas Hand, whose daughter Emily was taken hostage by Hamas on October 7. In discussing life in Israel before the massacre, Hand reflected: “The greatest movement towards peace that Israel ever did was pulling out of Gaza. Israel has never made such a big step towards peace, and it got us nothing. They didn’t make even a baby step back toward peace.”

Rather than allowing this poignant statement to stand, King pivoted to ask about innocent Palestinian children dying. Hand’s response was as raw as it was revealing: “I’m not interested in politics at all. My only concern is getting Emily back, whatever it takes.”

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CBS staffers said nothing about this segment. But Coates being asked a question? That crossed the line.

The CBS-Coates controversy perfectly encapsulates a troubling dynamic within mainstream media: challenge pro-Israel narratives, and you’ll be praised for your courage. Question anti-Israel falsehoods, and you’ll be forced to apologize. Ta-Nehisi Coates has been elevated as an intellectual authority, yet his writings expose a limited grasp of both history and modern geopolitics.

Sadly, the erosion of journalistic integrity in the United States means that anyone daring to point out uncomfortable truths is treated as a pariah. Dokoupil’s questioning exposed the media’s weakness, and they couldn’t tolerate it.

Liked this article? Follow HonestReporting on Twitter, Facebook, Instagram and TikTok to see even more posts and videos debunking news bias and smears, as well as other content explaining what’s really going on in Israel and the region.

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Business

a false dawn for pensions

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This week was a landmark for UK pensions, with the launch of a new collective pension arrangement offering the potential of better retirement outcomes for millions of people.

On Monday, Royal Mail became the UK’s first employer to offer a collective defined contribution (CDC) pension to staff — six years after it was originally announced. 

The government also published plans to boost the take-up of CDC by allowing multiple employers to join a single plan, in contrast to Royal Mail’s single employer plan.

CDC seems to offer a higher and less risky pension than individual DC, as well as boosting investment in UK private assets. But can it really do what it says on the tin?

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Private sector defined benefit (DB) pensions, guaranteed by an employer, are all but extinct, replaced by defined contribution (DC), with people saving into individual pots and taking their own investment and longevity risk.

CDC sets an annual “target pension”, based on the value of assets from employee and employer contributions, plus investment returns. Target pensions are not guaranteed, but can move up or down each year — including for pensions already being paid — depending on asset values.

To fund its ambitious growth plans, the government is trying to push pensions into UK “productive assets”, and it hopes CDC is another pool of money to be invested in infrastructure, start-ups and private equity.

In 2023 major pension providers signed the Mansion House Compact to allocate 5 per cent of assets in the DC “default” funds to private assets, and the government hopes about £50bn will be invested by 2030.

By how much CDC could increase this target depends on CDC take-up, and the allocation to private assets.

Since Royal Mail’s announcement six years ago, no other companies have signed up to CDC, and no pension provider has said it will set-up a multi-employer CDC.

Suppose 10 per cent of DC assets move into CDC, and that CDC holds 10 per cent in private assets, double the Mansion House DC target. Overall DC and CDC private assets would only increase to 5.5 per cent, barely moving the dial versus DC alone.

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But CDC fans claim it can hold a much higher chunk of higher-risk assets than DC, because of “intergenerational risk sharing”, when members of different ages pool investment risk and longevity.

This claim gets to the heart of the CDC fallacy. For any asset allocation, CDC investment risk is exactly the same as DC.

Intergenerational risk-sharing is a myth, because legislation prohibits “buffers” to “smooth” outcomes. CDC plans are not allowed to hold assets in a buffer, to be released when returns are worse than expected, or added to when returns are better than expected, as with discredited “with-profits” policies.

If CDC assets fall by, say, 20 per cent, target pensions also fall by 20 per cent for all members — an 80-year-old pensioner, or a 30-year-old employee.

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This is exactly the same as a DC saver with their own pot. If assets fall by 20 per cent, their “target pension” falls by the same amount.

Identical contributions and identical asset allocation produce identical CDC and DC returns, but, of course, CDC comes with higher management costs. The government should not expect CDC to hold any more private assets than DC.

CDC also imposes the same asset allocation on all members, regardless of their age or risk preference. DC gives everyone the flexibility to choose their own level of investment risk, which may change as they approach retirement. 

What about Royal Mail’s CDC? It has 6 per cent member and 13.5 per cent employer contributions, giving an inflation-linked target pension of 1/80th of salary, plus 3/80ths cash, from age 67. Over 40 years, members could earn a target pension of half average salary, plus a cash lump sum of three-times pension. 

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But this looks unexciting — at today’s inflation-adjusted long-term gilt rates it’s an average return of only gilts plus 1 per cent. A DC saver could achieve the same “target pension” by holding low risk-gilts and corporate bonds, with just a smattering of higher-risk equities.

CDC was really only ever attractive to the few private sector companies still offering DB, not the overwhelming majority with DC. But now the annual cost of DB pension promises has been slashed, thanks to much higher long-term interest rates, these companies have no incentive to close their DB pensions and make the leap into the CDC-unknown.

Although there are no “magic beans” in Royal Mail’s CDC, what sets it apart from “normal” DC is the generous 13.5 per cent employer contribution, higher than most blue-chip companies, and much higher than the 3 per cent legal minimum. 

And total contributions of almost 20 per cent of salary are enough for Royal Mail staff to build-up a decent DC pension pot, and a decent pension.

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We shouldn’t fall for the false promise of better retirement outcomes by shifting to complex, opaque and costly CDC pensions. The only real way to improve pensions is with simple, transparent and cheap DC pots, and higher contributions.

John Ralfe is an independent pensions consultant. X: @johnralfe1

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