Guns Beat Green: The Market Has Spoken

Anyone tired of lousy news from the markets should talk to Douglas Lloyd, director of Venture Business Research, a company that tracks trends in venture capitalism. "I expect investment activity in this sector to remain buoyant," he said recently. His bouncy mood was inspired by the money gushing into private security and defense companies. He added, "I also see this as a more attractive sector, as many do, than clean energy."

Got that? If you are looking for a sure bet in a new growth market, sell solar, buy surveillance; forget wind, buy weapons.

This observation--coming from an executive trusted by such clients as Goldman Sachs and Marsh & McLennan--deserves particular attention in the run-up to the United Nations Climate Change Conference in Bali at the beginning of December. There, world environment ministers are supposed to come up with the global pact that will replace Kyoto.

The Bush Administration, still roadblocking firm caps on emissions, wants to let the market solve the crisis. "We're on the threshold of dramatic technological breakthroughs," Bush assured the world last January, adding, "We'll leave it to the market to decide the mix of fuels that most effectively and efficiently meet this goal."

The idea that capitalism can save us from climate catastrophe has powerful appeal. It gives politicians an excuse to subsidize corporations rather than regulate them, and it neatly avoids a discussion about how the core market logic of endless growth landed us here in the first place.

The market, however, appears to have other ideas about how to meet the challenges of an increasingly disaster-prone world. According to Lloyd, despite all the government incentives, the really big money is turning away from clean energy technologies and banking instead on gadgets promising to seal wealthy countries and individuals into high-tech fortresses. Key growth areas in venture capitalism are private security firms selling surveillance gear and privatized emergency response. Put simply, in the world of venture capitalism, there has been a race going on between greens on the one hand and guns and garrisons on the other--and the guns are winning.

According to Venture Business Research, in 2006 North American and European companies developing green technology and those focused on "homeland security" and weaponry were neck and neck in the contest for new investment: green tech received $3.5 billion, and so did the guns and garrisons sector. But this year garrisons have suddenly leapt ahead. The greens have received $4.2 billion, while the garrisons have nearly doubled their money, collecting $6 billion in new investment funds. And 2007 isn't over yet.

This trend has nothing to do with real supply and demand, since the demand for clean energy technology could not be higher. With oil reaching $100 a barrel, it is clear that we badly need green alternatives, both as consumers and as a species. The latest report from the Nobel Prize-winning UN Intergovernmental Panel on Climate Change was characterized by Time magazine as "a final warning to humanity," while a new Oxfam report makes it clear that the recent wave of natural disasters is no fluke: over the past two decades, the number of extreme weather events has quadrupled. Conversely, 2007 has seen no major terrorist events in North America or Europe, there are hints of a US troop drawdown in Iraq and, despite the relentless propaganda, there is no imminent threat from Iran.

So why is "homeland security," not green energy, the hot new sector? Perhaps because there are two distinct business models that can respond to our climate and energy crisis. We can develop policies and technologies to get us off this disastrous course. Or we can develop policies and technologies to protect us from those we have enraged through resource wars and displaced through climate change, while simultaneously shielding ourselves from the worst of both war and weather. (The ultimate expression of this second option is Hummer's new TV ads: the gas-guzzler is seen carrying its cargo to safety in various disaster zones, followed by the slogan "HOPE: Hummer Owners Prepared for Emergencies." It's a bit like the Marlboro man doing grief counseling in a cancer ward.) In short, we can choose to fix, or we can choose to fortress. Environmental activists and scientists have been yelling for the fix. The homeland security sector, on the other hand, believes the future lies in fortresses.

Though 9/11 launched this new economy, many of the original counterterrorism technologies are being retrofitted as privatized emergency response during natural disasters--Blackwater pitching itself as the new Red Cross, firefighters working for insurance giants (see my last column, "Rapture Rescue 911"). By far the biggest market is the fortressing of Europe and North America--Halliburton's contract to build detention centers for an unspecified immigration influx, Boeing's "virtual" border fence, biometric ID cards. The primary target for these technologies is not terrorists but immigrants, an increasing number of whom have been displaced by extreme weather events like the recent floods in Tabasco, Mexico, or the cyclone in Bangladesh. As climate change creates more landlessness, the market in fortresses will increase dramatically.

Of course, there is still money to be made from going green; but there is much more green--at least in the short term--to be made from selling escape and protection. As Lloyd explains, "The failure rate of security businesses is much lower than clean-tech ones and, as important, the capital investment required to build a successful security business is also much lower." In other words, solving real problems is hard, but turning a profit from those problems is easy.

Bush wants to leave our climate crisis to the ingenuity of the market. Well, the market has spoken: it will not take us off this disastrous course. In fact, the smart money is betting that we will stay on it.

This column was first published in The Nation.

Town Hall's Writers Bloc presents Naomi Klein (The Shock Doctrine) in conversation with Robert Greenwald (bravenewfilms.com). Thursday, December 6, 7:30 pm, Temple Emanuel of Beverly Hills, 300 N. Clark Drive, Beverly Hills

Comments

[dragn1]

Just My 2 cents but anyone who does not prepare themselves for an up to 8 week breakdown of services is fooling themselves and that means food water medicines and yes guns and ammo. Anything you would need for your family for that time.

[rabun666]

Naomi Kline's book and two other books spell out what's happening and how for implementing a soviet-fascist government for the USA. First the disaster, created, allowed, or natural which removes the vestiges of an unwanted government, democracy. Naomi Wolf's book, 10 Step to Fascism, is the how to overthrow an existing order for the purpose of establishing an authoritarian militarist government. These steps are being implemented now. Finally the reason for an authoritarian government from a book Command Partners, a book about George Marshall and President Eisenhower. An authoritarian government is required to create the discipline necessary for a military that will unquestionably follow orders even to commit atrocities and acts of terrorism. Also, indeterminate deployment of troops in combat areas, also happening now in Iraq with U.S. troops there.Marshall and Ike point to the Nazi's armies as an example of a disciplined army created by an authoritarian government. It seems that the Nazi's came closer to victory than is generally thought. The Nazi's fought a coalition of the armed forces from 57 countries plus the USA,UK, AND USSR to a virtual standstill and almost prevailed according to Marshall and Ike.The army of North Vietnam is another example of a well disciplined army which can only be forged with an authoritarian government.We know what they did.

[PA]

Green should not be a political stand, it has to be about all of us. All of us are going to suffer the consequences unless ALL OF US do something about being a little more green.

What is your energy footprint? How many times did you water your lawn last week? Plastic or paper bags…or did you bring your own cotton shopping bag? Did you use cypress mulch? Who do you carpool with this week? Is your thermostat set a few degrees cooler this winter? How much of your garbage could you have recycled? How much would your carbon offsets cost YOU?

Like Kermit (the frog) said, “It is not easy being green.” It takes some effort and thought, and well, heck, guys, somebody actually has to care about it.

[DenverCurmudgeon]

SD61 posts:
...fear itself has become one of American capitalism's main engines...

In 1956, when Karl Rove was six years old, Eugene Burdick (The Ugly American, 1958 and Fail-Safe, 1960) created the character Mike Freesmith for his novel The Ninth Wave. Freesmith was a political consultant whose mantra was: “Fear plus Hate equals Power.” The character realizes early in his career that everybody is scared and consequently probes out the fear in blocs of voters in order to control them.

Rove has used the “Freesmith Strategy” to mold the modern Republican Party into a coalition of very strange bedfellows. The misogynists, racists, homophobes, and religious fundamentalists that are the voting core of the GOP constituency were easy marks for Republican manipulation.

My favorite "fear" quote:

"Fear is the mind killer." Frank Herbert- Dune

[lamarguerite]

The market economy has always been short term profit driven. Climate change is a long term problem, that requires heavy investments with the promise of profits in much longer term than other easier sectors, such as the security market you mention.

It is the same logic that causes companies to boost promotional efforts at the expense of long term brand building advertising driven campaigns. Greed and impatience are the two engines for that kind of attitude.

One of the reasons this trend is likely to continue, is because environmental costs are still external, and companies do not have yet to bear the costs of their irresponsible actions.

Second, climate change solutions need to be viewed as infrastructure decisions, the same as building roads, bridges or railroads. As such, they should be policy decisions, not market driven initiatives.

Third, America is still very much caught into the psychological climate of the Old West. This is the main reason for George Bush's lasting popularity despite his many blunders. Americans love cowboys who act and talk tough, with big guns to prove it. This is why national security, antiterrorism, guns, are such popular issues with the masses, and also the investment elite. The old guys are still ruling us. And the feminine dimension that we so badly need right now, is cruelly absent from the political and business powers in charge.

http://lamarguerite.wordpress.com
'It's All About Green Psychology'

[arvo]

We find ourselves at the crossroads--with the slavering wolves of climate change, peak oil, and overpopulation jockeying one another for the opportunity of destroying our civilisation. No wonder then, that the money at the top chooses to armor itself in unmarked enclaves, guarded by mercenaries, atop our remaining aquifers. Tick tock, tick tock, said Malthus' clock. Tick Tock.

[avicenna]

The "market", like evolution, supposedly has no goal. Ironicly, the interplay of the two will see us extinct before our time. The Market is a reflection of the personality of the society it represents with a magnification of the gluttonous aspect of the character - the uncontrolled ID, if you will. Whether we want important future-shaping decisions to be mandated by such an immature and self-deleterious will, is something the Ego will have to contemplate.
One way we can balance it out is to have all investments in progressive, problems-solving products and companies be income-tax free - and up the ante on taxing of the polluters. Being Canadian, arms are not a big part of our infrastructure - and I will admit that my "ethical investment options" have done amazingly well.

[samuraijack]

Naomi Klein was great the other night on Countdown. I am going to pick up the book. Too bad Redneck Bob and Joe Shit the Ragman wont understand the concepts and realize what a bunch of scheming little shit bags are running our government right now. Jack Out.

[SeaBlood]

It's true. The Market can solve any problem! The problem is that the Market doesn't care exactly how it solves the problem. If the Market feels that it can solve a problem by having us all murdered and dumped in unmarked graves, and no cheaper solution is available, then it will do exactly that. Douglas Lloyd is not the Market; he is just one of its "cat's paws". The actual market is an unfeeling entity------sort of like The Matrix, only scarier.

[tomsfork]

This is a bit off topic, but here's an environmental piece you may find interesting. Bush has been inserting politics into science. Gasp! I never would have guessed (snicker).

http://www.cnn.com/2007/TECH/science/11/28/endangered.species.ap/index.html

More evidence Bush runs the government on the orders of Wall Street, as if you needed any more.

[DenverCurmudgeon]

Naomi-
In Shock Doctrine you told the story about a group of mormons paid $425,000,000.00 to supervise elections in Iraq. I'm concerned that 425 mil is just the tip of the iceberg of public funds funneled to relgious organizations.

Last week the NY Times published an article exposing mega-churchs that have started venture capital and real estate investment companies. Could they be the funds that prefer Guns to Green?

[SD61]

You are exactly correct with your observations here, Naomi Klein. If the only thing to fear is indeed fear itself, our current administration -- and most politicians, corporate captains, and power-mongers in our nation -- have utterly failed us.

No, fear itself has become one of American capitalism's main engines, as you so eloquently pointed out. Although I do also believe technology, particularly that focused on the alternative energy sector, will eventually eliminate our fossil fuel dependence, no technology will ever change the fearful, self-serving character of our "leaders".

This change will occur through rational voices like yours. Thank you for your courage.

[godlessclif]

Democratic leaders like Pelosi and Dingel will abandon attempts to repeal nearly $16 billion in tax breaks to the oil industry as had been approved by the House earlier this year.

No energy policy yet from our Democratic Congress.

[Driver125]

Exclusivity--one of the major perks of being rich; or at least that's how they think.
When contact with the 'masses' gets to be a little too close for comfort (or security) there will always be someplace else... someplace further out or higher up or better protected. And when the livable spaces on the planet are dwindling down to a precious few these too will be reserved for those with the most gold... as it always has been. And even in their failure to prevent or even mitigate the disaster they will take solace in the fact that they will be the last to go. A pathetic end to what turned out to be a pathetic species. They knew, but they were too greedy to even save themselves.

[darcy]

Ms. Klein,

You are my hero, for sure, and I agree with your comments as far as they go. But what about human population control? There can't be any 'green solution' without population control, no matter how much money is invested. I think that many people instinctively realize that, even if they don't admit it even to themselves; therefore, they look for ways to protect themselves and their families in the horrible world that is rushing upon us.