Daily archives: August 30, 2016


A Moment of Hope

The apparent end to the power of my old adversary Islam Karimov gives a brief moment of hope for change in Uzbekistan.

It is worth recalling that Karimov was a member of the last Soviet politburo, and was a part of the failed hard line “communist” coup against Gorbachev. His support for Uzbek independence was both a matter of self-preservation and a successful endeavour to sustain the massively corrupt system that enabled a few families to pillage Uzbekistan’s great natural wealth. Tashkent was already famously corrupt in Soviet times; Karimov increased this and concentrated the wealth in an ever smaller circle, while personal freedoms were higher in the Soviet period than now.

There is no telling if Karimov is already dead or not, but a massive stroke has with certainty ended his rule. There is much speculation on what happens next. The one thing we can be quite certain will not happen is a free and fair election of a successor.

The formal process, presided over by the speaker of parliament, is an irrelevance to the power grab that is going on and depends on control of the army, the separate Ministry of the Interior armed forces, the police and the security services. By common consent Rustam Inoyatov is a key kingmaker, and for the last two years Prime Minister Mirzaeyev has been carefully cementing this alliance. Mirzaeyev is probably the most ruthless of all the candidates – he is as cold-blooded a killer as Karimov, and I suspect this quality will bring him through.

Mirzaeyev comes from the same Samarkand power base as Karimov, but he faces a difficult balancing act in ensuring nobody else has any power to challenge him, while at the same time placating powerful Tashkent and Ferghana interests. If Mirzaeyev can gain the support of the Gafur Rakhimov/Alisher Usmanov mafia nexus he will probably be home and dry. But to emphasise how complex and vicious this will be, when the Alisher Usmanov/Mirzaeyev family relationship was due to be cemented in 2013 by a marriage alliance featuring Usmanov’s nephew and heir Babur Usmanov, the groom was killed in a “car crash” at the behest of Inoyatov. This murder was probably just a friendly reminder that Inoyatov cannot be cut out, and one Mirzaeyev seems to have heeded, but underlines the potential for it all to go violently wrong.

So how can this be hopeful? Well, quite simply things can only get better. Whoever takes over is unlikely to want immediately to rush into the arms of one of Uzbekistan’s three suitors, the USA, China and Russia. There is a reasonable chance that they will wish to portray themselves as having a reform agenda, in order to keep the USA and to some extent Russia interested. Putin never viewed Karimov as more than an embarrassment. Indeed, almost every potential President except Mirzaeyev does have an inkling that the deliberate stifling of all economic initiative and the enslavement of the country to a cotton monoculture is not a good policy.

Finally a message to Karimov, my old sparring partner. You won, you kept power and I lost, and got sacked for my pains. But then I am not dead, and when I am I shall not go to Hell. Good luck with that. Craig

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Let’s Rename Housing Benefit more fairly as “Landlord Bonus”.

So-called “Housing benefit” is of zero benefit to tenants. It is a massive flow of taxpayer cash to landlords – an incredible £25 billion per year. It plays a pivotal role in the growth of landlordism and the bubbling of house prices to well beyond the pockets of most young people.

It is argued on the right of politics that rent controls would be an unwarranted interference that would distort the housing market and prevent it operating efficiently. Yet housing benefit is itself a massive distortion, allowing landlords to charge rents far beyond what the market would ordinarily bear. If the state is to pay or top-up rents in this way, the state must also have a right to interfere in the level of rents.

For the sake of clarity of argument, I do not regard “Housing Associations” as anything but part of the landlord class, especially given the high salaries they pay their executives.

Both Jeremy Corbyn and Owen Smith have recently argued for a rent control solution – and in Jeremy Corbyn’s case he believes it. That would certainly be a vast improvement on the present situation. But my own view is that it is illogical to boost rents by a massive transfer of taxpayer cash to landlords by housing benefit, and then seek a second mechanism to control them.

Housing benefit should simply be abolished. The results would be the collapse of the buy to let market and the bankruptcy of some of the least lovely people in the country, a crash in rents, and the pricking of the UK’s property bubble, where homes are priced in much of the UK at 8 to 12 times average salary.

The abolition would need to be accompanied by a one year moratorium on all evictions until the market settles down and rents can be renegotiated. I do not rule out rent controls as part of the new arrangements to govern the market.

It is worth pointing out that as housing benefit is taken from general taxation, and as London accounts for an obscenely disproportionate percentage of housing benefit paid, it represents yet another hidden area where London sucks the wealth from the rest of the country.

Housing benefit is not actually a “benefit” to the needy at all. Have you ever wondered why the Tories make zero concerted efforts to cut this “benefit”, when they are so keen on driving disabled people to suicide and sanctioning the unemployed?

It is because housing “benefit” is the UK’s biggest con, a direct subsidy from the taxpayers to the very wealthy.

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