Monthly Archives: December 2011

How to halt the expansion of inequality in the U.S.

Former Supreme Court justice Louis D. Brandeis once said, “We may have democracy, or we may have wealth concentrated in the hands of a few, but we cannot have both.”

Professors Ian Ayres and Aaron S. Edlin say we have reached the Brandeis tipping point. Yet even while acknowledging this level of inequality undermines democracy, rather than try to reverse the trend, they propose a mechanism that would simply cap it. I guess this falls under the category, better than nothing.

What we call the Brandeis Ratio — the ratio of the average income of the nation’s richest 1 percent to the median household income — has skyrocketed since Ronald Reagan took office. In 1980 the average 1-percenter made 12.5 times the median income, but in 2006 (the latest year for which data is available) the average income of our richest 1 percent was a whopping 36 times greater than that of the median household.

Brandeis understood that at some point the concentration of economic power could undermine the democratic requisite of dispersed political power. This concern looms large in today’s America, where billionaires are allowed to spend unlimited amounts of money on their own campaigns or expressly advocating the election of others.

We believe that we have reached the Brandeis tipping point. It would be bad for our democracy if 1-percenters started making 40 or 50 times as much as the median American.

Enough is enough. Congress should reform our tax law to put the brakes on further inequality. Specifically, we propose an automatic extra tax on the income of the top 1 percent of earners — a tax that would limit the after-tax incomes of this club to 36 times the median household income.

Importantly, our Brandeis tax does not target excessive income per se; it only caps inequality. Billionaires could double their current income without the tax kicking in — as long as the median income also doubles. The sky is the limit for the rich as long as the “rising tide lifts all boats.” Indeed, the tax gives job creators an extra reason to make sure that corporate wealth does in fact trickle down.

The New York Times reports on the property market for those with ‘infinite money’: Pierre Buljan guided his black Mercedes S.U.V. around the winding roads of the Hillsborough hills and into Atherton, where the mansions of Silicon Valley technology barons hide behind thick stone walls, wrought-iron gates and tall, manicured hedges.

“These people have essentially infinite money,” said Mr. Buljan, who has been a Realtor on the Peninsula for more than 30 years. He pointed at a sloping four-acre property that included a large redwood grove with a private creek.

“If someone falls in love with a property like this,” he said, “the price doesn’t matter.”

Everywhere Mr. Buljan turned, a historic transition was under way. A generation ago, many of these properties were second homes for San Francisco’s elite families. These days, most are being bought, for cash, by international tycoons or the youthful leaders of local technology companies.

While the wider Bay Area has suffered, along with the rest of the country, with falling property values and rising foreclosures, the luxury housing market has remained robust, analysts said. That is especially true in Silicon Valley, where an arms race for talent among emerging social networking companies has raised salaries for executives and engineers, and a resurgent market for initial public stock offerings is creating hundreds of new millionaires.

Some of the sales are eye-popping. In March, the Russian billionaire Yuri Milner, an investor in Facebook, Groupon and Zynga, bought a French-style chateau in Los Altos Hills for a reported $100 million. Some buyers have hidden their identities behind companies.

In September, an Atherton estate formerly owned by the great-grandniece of Levi Strauss sold for $53 million, while the home of Sue Burns, a major investor in the San Francisco Giants, was sold for $20 million by her estate.

“It’s going to take a while for the wider economy to recover, but there are enough people to make a difference at the high end of the housing market,” keeping demand high, said Steve Levy, director of the Center for Continuing Study of the California Economy, a think tank in Palo Alto, where the median single-family home price last week was $1,838,750.

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Secret U.S., Taliban talks reach turning point

Reuters reports: After 10 months of secret dialogue with Afghanistan’s Taliban insurgents, senior U.S. officials say the talks have reached a critical juncture and they will soon know whether a breakthrough is possible, leading to peace talks whose ultimate goal is to end the Afghan war.

As part of the accelerating, high-stakes diplomacy, Reuters has learned, the United States is considering the transfer of an unspecified number of Taliban prisoners from the Guantanamo Bay military prison into Afghan government custody.

It has asked representatives of the Taliban to match that confidence-building measure with some of their own. Those could include a denunciation of international terrorism and a public willingness to enter formal political talks with the government headed by Afghan President Hamid Karzai.

The officials acknowledged that the Afghanistan diplomacy, which has reached a delicate stage in recent weeks, remains a long shot. Among the complications: U.S. troops are drawing down and will be mostly gone by the end of 2014, potentially reducing the incentive for the Taliban to negotiate.

Still, the senior officials, all of whom insisted on anonymity to share new details of the mostly secret effort, suggested it has been a much larger piece of President Barack Obama’s Afghanistan policy than is publicly known.

U.S. officials have held about half a dozen meetings with their insurgent contacts, mostly in Germany and Doha with representatives of Mullah Omar, leader of the Taliban’s Quetta Shura, the officials said.

The stakes in the diplomatic effort could not be higher. Failure would likely condemn Afghanistan to continued conflict, perhaps even civil war, after NATO troops finish turning security over to Karzai’s weak government by the end of 2014.

Success would mean a political end to the war and the possibility that parts of the Taliban – some hardliners seem likely to reject the talks – could be reconciled.

The effort is now at a pivot point.

“We imagine that we’re on the edge of passing into the next phase. Which is actually deciding that we’ve got a viable channel and being in a position to deliver” on mutual confidence-building measures, said a senior U.S. official.

While some U.S.-Taliban contacts have been previously reported, the extent of the underlying diplomacy and the possible prisoner transfer have not been made public until now.

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Hamas moves away from violence in deal with Palestinian Authority

The Guardian reports: Hamas has confirmed that it will shift tactics away from violent attacks on Israel as part of a rapprochement with the Palestinian Authority.

A spokesman for the Hamas prime minister, Ismail Haniya, told the Guardian that the Islamic party, which has controlled Gaza for the past five years, was shifting its emphasis from armed struggle to non-violent resistance.

“Violence is no longer the primary option but if Israel pushes us, we reserve the right to defend ourselves with force,” said the spokesman, Taher al-Nounu. On this understanding, he said, all Palestinian factions operating in the Gaza Strip have agreed to halt the firing of rockets and mortars into Israel.

The announcement on Sunday does not qualify as a full repudiation of violence, but marks a step away from violent extremism by the Hamas leadership towards the more progressive Islamism espoused by groups such as the Muslim Brotherhood in Cairo.

The Associated Press reports: Bans on women smoking water pipes in public and male coiffeurs styling women’s hair are no longer being strictly enforced in the Hamas-controlled Gaza Strip, apparent signs of greater tolerance as the Islamic militant group acknowledges mistakes in seeking to impose a religious lifestyle.

In explaining the change, several senior members said Hamas has matured in five years in power and learned lessons from the Arab Spring. Islamic groups that have scored election victories in the wake of pro-democracy uprisings in the region now find themselves trying to allay fears they seek Islamic rule.

Since seizing Gaza, Hamas had largely silenced opponents and tried to impose stricter religious rules on an already conservative society. Modesty squads asked young couples seen in public to show proof of marriage, told beachgoers to put on more clothes and ordered shopowners to cover up mannequins. High school girls came under pressure from teachers to wear headscarves.

In recent months, there’s been a change in atmosphere, say rights activists and even political rivals of Hamas.

“Things are freer than before,” said Nasser Radwan, whose family restaurant is one of the places where women again come to smoke water pipes.

Hamas spokesman Fawzi Barhoum said “some mistakes were made” under Hamas rule, though he blamed individual security commanders and overzealous activists, not the government, for heavy-handed tactics.

“They don’t represent the ideology and policy of the Hamas movement,” Barhoum said. “Our policy is that we are not going to dictate anything to anyone.”

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The U.S. is blind to the price of war that is still being borne by the Iraqi people

Gary Younge writes: According to Christopher Gelpi, a political science professor at Duke University who specialises in public attitudes to foreign policy, the most important single factor shaping Americans’ opinions about any war is whether they think America will win. This solipsistic worldview is hardly conducive to the kind of introspection that might translate remorse into redemption.

It’s a mindset that understands the war in Vietnam as being wrong not because an independent country was invaded, flattened, millions murdered and thousands tortured. It was wrong because the US lost.

And it pervades the political spectrum. Even when the war’s critics slam the blood and treasure squandered, they usually refer only to American lives and American money. This is also the way pollsters frame it. A recent CBS poll asked: “Do you think removing Saddam Hussein from power was worth the loss of American life and other costs of attacking Iraq, or not?” (50% no, 41% yes), and “Do you think the result of the war with Iraq was worth the loss of American lives and other costs of attacking Iraq, or not?” (67% no, 24% yes). The cost to Iraqis simply does not feature.

“It is the end for the Americans only,” wrote Emad Risn, argued an Iraqi columnist in a government-funded newspaper. “Nobody knows if the war will end for Iraqis too.” And few Americans seem to care. It’s been some time since Iraq featured at all on the nation’s priorities, let alone high. Rightly Americans fret about the fate of veterans returning to a depressed economy with a range of both physical and mental disabilities. But Iraqi civilians barely get a look-in.

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How the U.S. is helping crush Bahrain’s pro-democracy movement

Nicholas Kristof writes: When President Obama decides soon whether to approve a $53 million arms sale to our close but despotic ally Bahrain, he must weigh the fact that America has a major naval base here and that Bahrain is a moderate, modernizing bulwark against Iran.

Yet he should also understand the systematic, violent repression here, the kind that apparently killed a 14-year-old boy, Ali al-Sheikh, and continues to torment his family.

Ali grew up here in Sitra, a collection of poor villages far from the gleaming bank towers of Bahrain’s skyline. Almost every day pro-democracy protests still bubble up in Sitra, and even when they are completely peaceful they are crushed with a barrage of American-made tear gas.

People here admire much about America and welcomed me into their homes, but there is also anger that the tear gas shells that they sweep off the streets each morning are made by a Pennsylvania company, NonLethal Technologies. It is a private company that declined to comment, but the American government grants it a license for these exports — and every shell fired undermines our image.

In August, Ali joined one of the protests. A policeman fired a shell at Ali from less than 15 feet away, according to the account of the family and human-rights groups. The shell apparently hit the boy in the back of the neck, and he died almost immediately, a couple of minutes’ walk from his home.


NonLethal Technologies, Inc., Homer City, Pennsylvania

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Political crisis in Iraq as U.S. withdraws

Al Jazeera reports: The last US troops withdrew from Iraq this morning, but the story has barely merited a mention on Iraqi television; local media are instead focused on a deepening political crisis, which includes – among other issues – an arrest warrant for the vice-president.

The latest development came on Saturday night, when Nouri al-Maliki, the Iraqi prime minister, called for a no-confidence vote on his deputy, Salah al-Mutlaq, state media reported.

Meanwhile, the Iraqi interior ministry has reportedly issued an arrest warrant for Vice-President Tariq al-Hashimi. Several of his security guards have been under investigation over a bombing last month in the green zone, the heavily-fortified district in central Baghdad that houses senior politicians and foreign embassies.

The bomb was assembled inside the green zone, according to Iraqi security officials, but went off prematurely. Both Maliki and Osama al-Nujaifi, the parliament speaker, have claimed to be the intended target.

The interior ministry was supposed to release details of its investigation in a press conference on Saturday night; the ministry said it would announce that Iraqi politicians, presumably referring to Hashimi, were linked to the bombing.

But officials from the ministry announced late on Saturday that they were postponing the press conference because of a request from the judiciary.

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Egyptian soldiers shoot, chase, and beat unarmed protesters in Cairo

The New York Times reports: Egypt’s military rulers escalated a bloody crackdown on street protesters on Saturday, chasing down and beating unarmed civilians, even while the prime minister was denying in a televised news conference that security forces were using any force.

In one of the most incendiary developments, video cameras captured soldiers stripping the clothes off women they were beating on the pavement of Tahrir Square.

The contradiction in the military-led government’s statements and actions appeared to represent a shift in strategy by the military council. After trying for months to preserve some credibility and collaboration with the Egyptian political elite, the ruling generals on Saturday scarcely acknowledged the demands made by their newly appointed civilian advisory council the night before that the military cease its violence and apologize to demonstrators.

Instead, as the crackdown entered its second day, the military council appeared to be playing to those Egyptians impatient with the continuing protests and eager for a return to stability. Crowds of supporters turned out downtown on Saturday morning to cheer on the military police, hand them drinks of water and help them close off Tahrir Square from demonstrators massing to get in.

Protesters, for their part, charged that the military rulers were provoking the clashes to derail or discredit the continuing election of a new Parliament that could challenge their power. “The military council is responsible for everything that happens,” Ziad el-Elaimy, a newly elected member of Parliament who was beaten Friday by the military police, said in a television interview.

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Israel has never been so ugly

Ari Shavit writes: We have never been so ugly. Prime Minister Benjamin Netanayhu seeks to silence the call to prayer over the loudspeakers of the country’s mosques, and to shut down Channel 10 television. Foreign Minister Avigdor Lieberman expresses support for the Russian “democtator” who has just rigged elections. Defense Minister Ehud Barak stands by while Jewish settlers victimize Palestinians and ultra-Orthodox religious nationalists victimize female soldiers.

Justice Minister Yaakov Neeman is trying to turn the Supreme Court into other one of his subsidiaries. Attorney General Yehuda Weinstein is working to prevent the media from reporting on investigations against public figures. Deputy Health Minister Yaakov Litzman excludes women from participation in an official award ceremony.

Coalition chairman Zeev Elkin undermines and neuters civil society. Religious fanatics exclude women, tyrannize secular citizens and spit at priests. Jewish terrorists burn Muslim houses of worship, invade Israel Defense Force bases and attack soldiers.

We see what we would never believe with our own eyes. Darkness at noon, a dark Israel snuffing out an enlightened Israel. There have been dark moments in the past. The 1956 killing of Israeli Arabs at Kafr Qasem, the 1982 massacres by Israeli allies in Lebanon at Sabra and Chatila, the 1994 Hebron massacre by Baruch Goldstein. There have also been prior attempts at silencing the press, publications such as Kol Ha’am, Haolam Hazeh and Hadashot.

There have been assaults on the judicial system. Former Justice Minister Daniel Friedmann, and Daniel Friedmann and Daniel Friedmann. Time after time there have been assaults by the secular right and the religious right on the principles of liberalism and on liberal institutions, but there has never been an all-out, multi-pronged and multi-dimensional attack on the core values of the Jewish democratic state.

There has never been such a comprehensive attempt to remake the face of Israel and to replace it with something else. Under Netanyahu and Lieberman’s leadership, Israel been turned into a country with the values of Newt Gingrich and the look of Vladimir Putin. What’s happening here? And why now exactly? Why are anti-democratic forces at work now to run roughshod over human rights and human dignity and freedom? Why are the Jewish nationalists and ultra-Orthodox fanatics, along with Russian statism, bursting forth now all at the same time?

The answer is Netanyahu. In the past he was conservative, cautious and democratic. With American Jewish leader Ron Lauder at his side and popular historian Paul Johnson in his hand, Netanyahu sought to turn Israel into a strong free-market country sharing the values of Republican America.

As a result, the first time around as prime minister he governed like a democrat and lost like a democrat. And when the left wing tripped him up and got him out of office, he was subdued and a gentleman about it. Just as the Republican Party has changed over the past decade, so too has Netanyahu. The follower of Ronald Reagan has become a Tea Partier. With Sheldon Adelson at his side and Avigdor Lieberman tying his hands, the second iteration of Netanyahu is an aggressive ruler.

He is not guided by the rules of the game, but by the desire to gain a position of strength. It is not protecting democracy that is uppermost in his mind but retaining power. He is therefore not interested or capable of demonstrating moral leadership. Netanyahu is letting his Rottweilers devour liberal democracy while he himself stands by watching. He is not fulfilling his role as the guardian of the Israeli Declaration of Independence.

Netanyahu’s weak leadership and moral laxity are what unleashed this frenzy. The fact that he has not put a stop to the dark forces that have always oozed from our depths is what brought us to this situation, but it is not yet too late. Netanyahu can put a stop to this insanity in an instant. All he has to do is halt the totalitarian legislation and to deliver one major address extolling enlightened democracy and human rights.

He must make it clear that violence will not be tolerated, that women are equal. Arabs are equal and every human being is created in God’s image. If the super-leader of the right wing would order the lunatic fringe on the right to stop, they would. If the leader of the State of Israel would say that liberty and equality and law and freedom of expression are the beating heart of the state, so it would be.

Not a single party would quit the government coalition. Not a single minister would quit the cabinet. But the young people who are called upon to defend this place would know what they are protecting. And the older generation who built this place would know what they built. The face in the mirror would again be our face.

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Scores of unintended civilian casualties in NATO bombing of Libya

The New York Times reports: NATO’s seven-month air campaign in Libya, hailed by the alliance and many Libyans for blunting a lethal crackdown by Col. Muammar el-Qaddafi and helping to push him from power, came with an unrecognized toll: scores of civilian casualties the alliance has long refused to acknowledge or investigate.

By NATO’s telling during the war, and in statements since sorties ended on Oct. 31, the alliance-led operation was nearly flawless — a model air war that used high technology, meticulous planning and restraint to protect civilians from Colonel Qaddafi’s troops, which was the alliance’s mandate.

“We have carried out this operation very carefully, without confirmed civilian casualties,” the secretary general of NATO, Anders Fogh Rasmussen, said in November.

But an on-the-ground examination by The New York Times of airstrike sites across Libya — including interviews with survivors, doctors and witnesses, and the collection of munitions remnants, medical reports, death certificates and photographs — found credible accounts of dozens of civilians killed by NATO in many distinct attacks. The victims, including at least 29 women or children, often had been asleep in homes when the ordnance hit.

In all, at least 40 civilians, and perhaps more than 70, were killed by NATO at these sites, available evidence suggests. While that total is not high compared with other conflicts in which Western powers have relied heavily on air power, and less than the exaggerated accounts circulated by the Qaddafi government, it is also not a complete accounting. Survivors and doctors working for the anti-Qaddafi interim authorities point to dozens more civilians wounded in these and other strikes, and they referred reporters to other sites where civilian casualties were suspected.

Two weeks after being provided a 27-page memorandum from The Times containing extensive details of nine separate attacks in which evidence indicated that allied planes had killed or wounded unintended victims, NATO modified its stance.

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The Arab Awakening is here to stay

Christopher Dickey writes: Westerners have long felt the need to lecture Arabs about Arab history. “We know the civilization of Egypt better than we know the civilization of any other country,” Lord Balfour told the British Parliament in 1910. “We know it further back; we know it more intimately; we know more about it.” Indeed, the unmistakable message of this quintessential colonialist was that “we” know the Arab world better than the Arabs do, which is why “we” have every right to rule in their lands, whether directly or indirectly. As the late historian Edward Said observed, this “orientalism” became a sort of justification for colonialism “in advance.”

More than 100 years after Balfour, and after the demise of so many erstwhile empires, it’s amazing the extent to which Western pundits (even some from Muslim backgrounds) still echo his sentiments. Having utterly failed to predict the revolutionary movements that erupted in Tunisia and Egypt a year ago, they continue prognosticating with shameless confidence about the eventual triumph of “counterrevolutionary” forces of dictatorship and demagoguery.

“There are many possible outcomes—from restoration of the old order to military takeover, from unruly fragmentation and civil war to creeping Islamization,” the usually-smarter-than-this Robert Malley and Hussein Agha wrote in The New York Review of Books in September. “But the result that many outsiders had hoped for—a victory by the original protesters—is almost certainly foreclosed.” In other words, the ineluctable forces of the Arab world’s sorry history will decide the Arabs’ sorry future.

Yet the most striking thing about these revolutionary movements has been the extent to which they put history aside, both their own and that invented for them by foreigners. How else to explain the resilience of the Tahrir Square protesters, many of whom vented their violent rage against elections they feared were rigged, then voted anyway—and enthusiastically! How to fathom the sheer endurance of the locked-down population of Syria’s embattled city of Homs week after week, month after month? Where would you find the precedent?

As Al Jazeera analyst Marwan Bishara writes in his forthcoming book, The Invisible Arab: “Never has the power of the people appeared so humane, so inspiring, so personal, so determined as in Tunisia, so daring as in Syria, so diverse as in Yemen, so humble as in Bahrain, so courageous as in Libya, or so humorous as in Egypt. If, as one keen observer noted, every joke is a tiny revolution, the Arabs, and most notably the Egyptians, are revolutionaries par excellence.” And the biggest joke is the received wisdom that in the Arab world the past always determines the future. [Continue reading…]

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Capitalism is the enemy of democracy

David Kristjanson-Gural writes: The most significant accomplishment for Occupy Wall Street (OWS) to date is that the Occupiers have managed to poke a hole in the legitimacy of neoliberal capitalism and its central claim that unregulated markets provide opportunity and freedom.

The Occupiers have accomplished this feat in a surprising way, peacefully, with home-made signs, signs that say things like, “If I had a lobbyist, I wouldn’t need this sign.”

OWS has punctured the neoliberal façade simply by having the audacity to gather in public, in bold defiance of the police and to bear witness, by their solidarity and cooperation, to the idea that the Washington Consensus has long denied – that a different world is possible.

Phil Rockstroh puts it this way: “the walls of the neoliberal prison are cracking … We are no longer isolated, enclosed in our alienation, imprisoned by a concretized sense of powerlessness; daylight is beginning to pierce the darkness of our desolate cells.”

At the core of this neoliberal ideology is a simple assertion – economic exchanges promote freedom because they are voluntary and, thus, they only occur if both parties believe they will benefit. Unregulated market exchanges thus allow individuals to engage with others in complex social arrangements without coercion, without impinging on individual liberty. Government is needed, but only to define and enforce property rights and to create and regulate the currency individuals need to undertake market exchanges.

Liberal Keynesians, who argue for expanding government in order to regulate or oversee individual exchange, are denigrated because they seek to interrupt these free and voluntary agreements and they, therefore, undermine individual liberty. Reagan, who ushered in the neoliberal era, said it this way: “Government is not the solution to the problem; Government is the problem.” In this extreme libertarian view, capitalism is the champion of democracy, the champion of freedom.

The flaw in this neoliberal reasoning is not hard to see. Ownership of wealth obviously confers power; it gives some individuals an upper hand in the “voluntary” exchanges they make with others. Lacking the means otherwise to support ourselves, most of us must hire out our ability to do work in exchange for wages. We might do quite well if we are educated and talented, lucky or white, but even so, we ultimately produce more value than we are paid – that is, after all, the reason we are hired.

Wealth ownership, thus, gives an upper hand to employers in these voluntary exchanges with working people. The extra value we create flows steadily into the hands of wealth holders and we don’t have a say over what it is used for. [Continue reading…]

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The desperate defiance that sparked the Arab Spring

Larbi Sadiki writes: It was an act of self-immolation that would change the course of Arab political history. That is the significance of Mohamed Bouazizi one year on. It will be years before December 17, 2010 and the subsequent chain of events his act set off in Tunisia – and later on across the Arab world – are profoundly grasped by historians and social scientists.

The man and the act spawned a hugely unprecedented movement, forever altering the Arab political landscape, delivering the much-vaunted ‘breakthrough’ in the fight against autocracy.

That breakthrough was akin to an inexplicable ‘big bang’ which created its own chain reaction, irreversibly converting singularity into plurality across an emerging Arab Spring geography.

Theoretically, Bouazizi lacked the kind of pedigree that qualifies one entry into history books. He had no wider horizon beyond being a street vendor. He was not elite – his family was modest in every sense – and his town was on the margins of Tunisia both politically and economically. In fact, Tunisians living in the coastal areas and the north knew very little of the central and southern regions.

This ‘south’ was treated as if it were an empty space. It never was. Tunisians read the country’s luminary Abu al Qasim al Chabbi, the poet whose verse about ‘popular will’ Bouazizi translated into an astonishingly practical act.

Partly, this was what motivated me to visit his place of burial in my first trip back to Tunisia back in January 2011 after Bin Ali’s ouster. Bouazizi – not Ghannushi in London, not Merzouki in Paris – and not the rest of us polyglots, university-educated and bi-national Tunisians in the Diaspora – precipitated that ouster with his indomitable will when he chose to protest against humiliation and marginalisation.

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