VOLUME 3 ISSUE 4 - April, 2003 (Printable Version)
     

THE WAR ON IRAQ: THE MONTH LEADING UP
By Latoiya Stout

Last month, the United States, Britain, and Spain introduced their resolution expecting to win U.N. support to defuse Iraq by taking military action. The resolution would have permitted war against Iraq anytime after Monday if Iraq did not disarm by that time. However, after several weeks of diplomacy from the Bush administration, they were unsuccessful in convincing the majority of the council's 15 members that now was the time for war.

On Monday, March 17 the U.S. and its allies ended diplomatic efforts to win U.N. approval for an ultimatum to Iraq. A threatened French veto was to blame for their decision. The way then became clear to open a war on Iraq at any given time without Security Council authority.

Sir Jeremy Greenstock, Britain's U.N. Ambassador stated that the French had made it perfectly clear that any resolution authorizing military action against Iraq would be vetoed. However, French Ambassador Jean-Marc de la Sabliere denied responsibility for the impasses. He stated that it was apparent Washington could not get a majority of nine votes on the Security Council. "The majority of the council is again opposed to a resolution authorizing the use of force, " he said.

As diplomatic efforts failed, the U.S. advised U.N. weapon inspectors and other foreigners to vacate Baghdad in order to escape massive destruction. Warfare could have began within hours of the U.N. inspectors leaving Iraq. President Bush addressed the nation Monday night to explicate his thoughts on why war would be necessary if Saddam Hussein did not leave Iraq immediately. White House spokesman Ari Fleischer stated that, "The United Nations has failed to enforce its own demands that Iraq immediately disarm. As a result, the diplomatic window has been closed."

The early morning hours of Thursday, March 20th brought the first wave of Coalition forces' attacks on Iraq, including a so-called "decapitation attack" aimed directly at Saddam and the Iraqi leadership in Baghdad.



Special Report

U.S. BIGGEST BUYER OF IRAQI OIL AMID WAR PREPARATIONS
By Soozhana Choi

New York, March 14 (Bloomberg) -- As the Bush administration masses troops in the Persian Gulf in preparation for a war to topple Saddam Hussein, U.S. refineries have been the biggest customers for the crude oil Iraq produces.

Shipments to the U.S. more than tripled from September to January, according to the Commerce Department. Iraq supplied 17.1 million barrels in January, 6.4 percent of total U.S. oil imports and up from 5.15 million four months earlier.

The jump in imports came as an illegal surcharge that benefited the Iraqi government was dropped and as refiners sought alternatives for crude from Venezuela, where a strike crippled oil production.

``The U.S. is by far the biggest customer of Iraqi oil,'' said Eric Kreil, an analyst at the Energy Department's Energy Information Administration. ``Iraqi oil is a pretty good substitute for the Venezuelan grades that were cut off.''

Iraq pumps about 3 percent of the world's oil and is the third-largest producer in the Middle East. The prospect of a war in Iraq has helped boost the U.S. benchmark oil price by 25 percent since November.

Iraq is allowed to export oil under an exception to United Nations sanctions imposed after the country's 1990 invasion of Kuwait. The UN must approve Iraq's oil sales, and proceeds are designated to pay for food, medicine and oil-industry equipment.

Global Market

The surcharge, which helped the government skirt UN control of oil revenue, stopped toward the end of last year, said George Beranek, an analyst with Petroleum Finance Co. in Washington. That made Iraqi crude competitive with oil from other sources.

The global oil market doesn't discriminate against a country's oil as long as it's priced competitively, said Youseff Ibrahim, editor-in-chief at Energy Intelligence Group Inc. in New York. ``It's not a deliberate decision by the U.S. or anyone'' that made the U.S. the largest user of Iraqi oil, he said.

About two-thirds of the oil Iraq exported in February was going to the Americas, or 1.12 million barrels, according to an analysis by Energy Intelligence. Half of that was headed to the U.S., matching the pace of imports the Commerce Department reported for January. Other destinations for Iraqi oil in the Americas were Brazil, Mexico and the Caribbean.

U.S. imports of Iraqi oil rose by 64 percent in November from October, after falling to a four-year low in September. They continued to climb in December and January, according to the Commerce Department data, released this week.

Iran, Libya

The U.S. doesn't import oil from Iran and Libya, two other states that the government has identified as supporters of terrorism.
In 1986, the Reagan administration banned U.S. companies from doing business in Libya; UN sanctions against the country were imposed in 1992.

The U.S. has imported little Iranian oil since 1979, according to Lowell Feld, an international oil-markets analyst at the Energy Department.

``U.S. sanctions have waxed and waned since then,'' he said. ``The last time the U.S. imported Iranian oil was in 1991,'' when the government allowed limited shipments.

Bush said in April that he would only support lifting U.S. sanctions against Libya and Iran if they acknowledged past acts of state-sponsored terrorism.

U.S. refiners have been buying Iraqi oil as an alternative to supplies from Venezuela, which were cut off when workers went on strike in early December. Venezuela met 10 percent of U.S. oil needs before the strike began. Iraq's Basrah and Kirkuk grades are reasonable substitutes for the crude produced in Venezuela, which is a high-sulfur or ``sour'' grade.

``Iraq got an additional boost from Venezuela,'' said Beranek. ``U.S. refiners took any bit of crude they could get, particularly sour crudes.''
Stigma'

``There was a certain stigma associated with taking Iraqi crude because it was assumed that you paid a surcharge'' that benefited Hussein, Beranek said. The UN forced Iraq to end the practice through a pricing policy that made any oil that carried the extra cost more expensive than the market would bear, Beranek said.

Some refiners may have started shunning supplies from Iraq as war in the country looms.

``Buyers are cautious about planning for Iraqi shipments with the war coming,'' said James Ritterbusch, a senior analyst for Prudential Securities Inc. in Galena, Illinois. ``Imports from Iraq have probably already fallen.''

ChevronTexaco Corp. hasn't loaded any cargoes of Iraqi crude oil since early this year, said Chris Gidez, a spokesman for San Ramon, California-based company.

``Last year we imported a total of 44 million barrels of Iraqi oil,'' Gidez said. ``We could resume purchases under the UN program or under some other circumstances if the situation is right. There's no policy of not using Iraqi oil.''

Valero Energy Corp., the third-largest U.S. refiner, has cut back on loading Iraqi oil since the beginning of the year, the Wall Street Journal reported this week, without citing anyone. The company didn't return phone calls from Bloomberg News.

ChevronTexaco and Valero were the top two U.S. importers of Iraqi crude oil in November, according to the latest figures available from the American Petroleum Institute.

[In accordance with Title 17 U.S.C. Section 107, this article is reprinted and distributed without profit to those who have expressed a prior interest in receiving this information for research and educational purposes.]



DOES AMERICA NEED A NATIONAL ENERGY POLICY?
By Stuart Pigler

Our country needs a national energy policy enacted as soon as possible. If Congress fails to act on a policy, energy prices will continue to rise. For two decades, the share of the average family budget spent on energy steadily declined. But since 1998, it as skyrocketed by 25 percent and that's a hardship for every family.

If Congress fails to act, our country will become more reliant on foreign crude oil currently pegged at 56 percent, putting our national energy security into the hands of foreign nations, some of who do not share our interests. Our environment will suffer, as government officials struggle to prevent blackouts that could happen this summer by calling on more polluting emergency backup generators and by running less efficient power plants.

I am pleased that United States Secretary of Energy, Spencer Abraham has developed a plan for President Bush to move our country into a sound energy strategy that will benefit us well into the 21st century. The plan addresses all three key aspects of the energy equation: demand, supply, and the means to match them. First, it reduces demand by promoting innovation and technology to make us the world leader in efficiency and conservation. Second, it expands and diversifies America's supply of all sources of energy-oil and gas, clean coal, solar, wind, biomass, hydropower, and other renewables, as well as safe and clean nuclear power. Lastly, the plan outlines ways to bring producers and consumers together by modernizing the networks of pipes and wires that link the power plant to the outlet on the wall.

Hopefully another aspect of energy can be explored as a part of an energy plan-- drilling in the Alaska Arctic National Wildlife Refuge (ANWR). The federal government should allow drilling in the coastal plain on the northern edge of the ANWR. The refuge itself, which got special protection in the late 1970's, is enormous--19.6 million acres to be exact. Thanks to advances in technology, fewer than 2,000 acres would be affected by oil development and that is less than one-tenth of 1 percent of the ANWR.

America must put into place a long-term national energy policy that includes finding and producing more of its own resources. It's not in the national interests of this country to continue to depend on unreliable energy sources-some of which are actually our enemies. At the time of this writing, we import about 750,000 barrels of oil a day from Iraq.

There are some environmental activists who oppose oil development in the ANWR. The fact is Alaska's North Slope is a great place to look for oil. It has supplied 20 percent of America's domestic oil for the past 20 years. The largest oil fields in America are found there, including our largest and second largest, Prudhoe Bay and Kuparuk. Our most promising prospects for oil is along that northern edge of ANWR. These environmental activists are opposed because they believe oil development might harm the caribou herd and other wildlife. They have based their case on 99 percent fact-free rhetoric. I believe in the judgment of those who have spent their lives studying and finding oil fields.

I hope Congress will open up the ANWR for the benefit to Alaskans who support it, and most importantly, for the nation that needs it.

Stuart Pigler is a member of the National Advisory Council of the African-American leadership network Project 21 and a former television commentator in Grand Rapids, Michigan.



PUBLIC SCHOOLS AND BUSINESSES: WHAT IS THE VALUE OF EDUCATION?
By Chris Bazuaye

Louis Gerstner, the super turnaround chairman of IBM, said it best, "Public schools are measured by what society spends on them, not by what they give back. Until society measures the Value of Education, it is impossible to make informed judgements about how much we should spend on education." Better yet, until we reinvent the environment in which public school systems have to exist, we can't expect much in terms of result or reform.

Public schools suffer from the same issues as most public organizations. They are expected to produce the results of private enterprises (efficiency, performance, etc.) without the variables of the latter, namely incentives, purpose expertise and a competitive environment.

The financial crisis in our public schools is well documented. For example, one school system brings in approximately $20 million per month, but spends $21.4 million per month. The imbalance between revenue and expenses creates an obvious problem. The public has shown a willingness to support education. Citizens deserve credit for their support of public schools. A recent poll in Alabama showed almost fifty-two percent of respondents said they believe our schools need funding. And over sixty percent said they are willing to pay more in "education taxes."

As a matter of fact, the public has always funded public schools. The issue seems to be more about resource allocation. How is the revenue allocated so it yields the most value to the system?

Policy, finance and curriculum all combine to influence makeup and functionality of our public schools. Why not create an enabling environment where policy makers (government), fiscal resources (business community) and curriculum specialists (the public school administrators) can bring their expertise together for the betterment of education?

Education is one of the pillars of any community and a major element to improving our quality of life. Through education we increase workforce capacity, research and information, average income, economic dynamism and numerous social intangibles. Everyone has a stake in its outcome: public officials, the business community, educators and the public. All stakeholders must be at the table in order to deal with the education crisis. But more importantly we need an environment that will enable our public schools to keep being the engine of success and leadership development. Take an independent count of how many of our businesses and public officials are alumni of our public schools and the value becomes apparent.

In order to reinvent our educational system, we must first agree that the value of education is extremely high. Then we must create the environment in which our public schools can operate on an elevated level. More critically, let's bring all available resources to support our public schools and our communities. Businesses need public schools, and public schools can't get better without the help of businesses.



CONGRESSMAN ARTUR DAVIS FIGHTING FOR "THE OTHER AMERICA"

Alabama District 7 Congressman Artur Davis may want to take a breather. Not three months into his first term as the newly elected representative for Central and West Alabama, he has developed a blistering pace that has constituents showering accolades of support from across the region. His high visibility and accessibility keeps awareness of his work in the forefront of people's minds.

"I never want people to wonder about what they're congressman is doing," Davis said from his Birmingham office recently. "People have a greater appreciation for what you're doing as long as they know you're doing it. We want people to know about our work and our accomplishments in Washington and in the district on their behalf."

Davis began making an impact in both places from day one with sounding sessions in the district and purposeful legislative action in Washington.

Since being sworn-in in January, Davis received appointments to the House Financial Services Committee and the House Budget Committee. Both positions are viewed as highly valuable and superb slots for a freshman congressman. They give Davis an opportunity to participate in the discussion of the nation's priorities.

"We are living in a critical time in this country's history, and decisions we make now will have a great impact on us for many years to come. Therefore we have to carefully consider the ramifications of everything we are doing, from the proposed tax cuts in the face of ballooning deficits cuts to critical programs to the threat of an impending war," Davis said. "There are a few moments in history when very critical decisions will have long-term ramifications, and this is one of those times."

On the budget offered by President George W. Bush, Davis has characterized it as "devastating" to the people in his district. Davis has been actively engaged in the budget debate by fighting to reinstate critical programs and reform the operation of others. Programs critical to economic development and rural healthcare are high on Davis' list.

"Revision of the Medicare reimbursement formula is critical for poor states like Alabama that have such a wealth distribution levels between urban and rural communities," he said. "The current conditions are choking the life out of healthcare in West Alabama where people suffer from higher rates of chronic illness than anywhere else in the state. Federal and state authorities must work together to find a solution to this critical problem that is having such a grave impact on my district."

In February, Davis introduced the SEED Act - The Southern Empowerment and Economic Development Act. The bill calls for the expansion of the Delta Regional Authority (DRA), a federal commission charged with funding economic development and infrastructure, to include the nation's traditional Black Belt region.

The new authority, the Delta Black Belt Regional Authority (DBBRA), will cover 552 counties in 14 states and would dramatically increase the quality of life for people in the region just as the Appalachian Regional Commission affected the Appalachian hill country nearly 40 years ago.

"We applaud the work done by the DRA, but there is more to be done. The Black Belt is the poorest region in the nation with most indices for issues such as unemployment, high school dropout rates, teenage pregnancy and other quality of life indicators in double digits," Davis said.

"Our state and this country now exist as two Americas: one with hope and prosperity linked directly to opportunity and the other directly associated no hope of prosperity because of the lack of opportunity," Davis continued. "We must adjust our mindset so that we see that these are people, not just statistics, who need our help."

In addition to his critical work in Washington, Davis is showing up in places all across his district listening to and learning from the people he is set to represent.

He held to his commitment to conduct a town hall meeting in every county with the first two sessions scheduled in Greene and Perry thus far. Davis is also having open houses for his five district congressional offices with the events drawing capacity crowds. People who never knew they had a congressman are accessing the offices and thanking him for his service.

"It's good to see the number of people who are attending these events all over the district. They are hungry for service and the type of attention they have needed for so long, and we are working hard to provide that," Davis said. "It is very gratifying to meet with people, and I find these sessions the most gratifying part of the job."

As we approach the possible war with Iraq, Davis is encouraging others to support the troops fighting on behalf of this country.

"We have to lend our strong support for the troops half way around the world and their families waiting for them here at home," Davis said. "Our fighting men and women are putting their lives on the line, and they deserve our fullest respect and appreciation."

There are no plans for Davis to slow down anytime soon with critical votes approaching in Washington and a long in-district work period scheduled in April.
"Our main purpose is to continue to do the work and to directly impact the lives of people in this community," he said. "We will continue our outreach and building relationships in order to be as effective as we possibly can."



TRANSIT FUNDING FOR JEFFERSON COUNTY
By William Parker

The Transportation Alternatives Plan will provide public transportation in all the major corridors, establish park and ride lanes, offer local inner city shuttles, and connect communities. Everyone likes the plan, however, the problem appears to be that we are afraid to make the decision to adequately fund it. How many times have you looked back and wished we had taken advantage of that opportunity.

We look back on lost business and economic development. "What happens to an investment in Public Transportation? It sparks an economic chain reaction that generates business activity, creates jobs, boosts property values and tax earnings, maximizes transportation spending, and gets more people to work." At a time when competition for resources is fierce, funding for public transportation is an investment in Jefferson County's business and economic growth.

Jefferson County's local and state officials are at a crossroads. Citizens are waiting to see what the verdict will be on funding for mass transit. For the first time in decades, people are realizing the value of having a viable public transportation system and the relationship to economic growth and the quality of life.




DONALD V. WATKINS' STATEMENT CONCERNING HIS PURSUIT
OF A MAJOR LEAGUE BASEBALL FRANCHISE


Birmingham, AL -- Last year, I have had several very positive discussions with individuals involved in Major League Baseball. They have shown me that my ambition to become an owner of a Major League Baseball team is a concept, which they look upon with favor as they continue to process my application. As we continue through that process, we will of course continue to assess with care the impact of the intense economic uncertainty confronting Major League Baseball over the next several months as the owners and players strive to reach an agreement on a satisfactory contract. I am most grateful for the support and advice I have received from Major League Baseball as I continue to seek the franchise which is right for me.

I have narrowed my options, and I am undertaking the requisite due-diligence with all deliberate speed. However, that speed is likely to be governed by overall developments in Major League Baseball economics over which I have no control. I am under several confidentiality agreements, which make any further public comment on my pursuit of a team inappropriate and impossible. For that reason, I would like to take this opportunity to thank all of the fans and others in the baseball community who have so earnestly supported me. When we finally complete the application process in the coming months, you will be the first to hear about it right here on the Voter News Network website.

     
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