Globalisation as a challenge to attempts to produce a just society.
What is globalisation?
The term used neutrally describes the process by which societies, and cultures around the world have become closely integrated, perhaps through associations, telecommunications or IT.
Most people are in favour of this concept, if I want to phone my friend in USA for example no one would say that this is a bad thing. Many clubs, associations and Unions have international affiliations so in this respect they too are global institutions, with this sort of globalisation no one would deny that they are positive asset to people all around the world.
However the word ‘globalisation’ also has another meaning; it has to a large extent been appropriated by super powerful commercial interests that exploit the innocuous, neutral concept of globalism and use it as a weapon with which deflect criticism of their own behaviour by portraying the opponents of globalisation as backward looking luddites.
Some people enjoy unimaginable wealth, at the same time two hundred million children under the age of five are under weight because of lack of sufficient food supply. Some fourteen million children die each year because of hunger related illnesses. (Unicef 2006)
This type of deprivation is not only confined to the third world; even in wealthy countries like the US some 6M adults and 3.5M children experience outright hunger.
According to the US Department of Agriculture some 10% of US households do not have enough food to meet their basic needs.
Human activity particularly fossil fuel consumption is estimated to have increased the atmospheric concentrations of carbon dioxide to the highest levels for 20 M years, according to The World watch Institute; an environmental think tank, global disasters from weather related events and natural disasters like the ones seen in New Orleans, Haiti and Japan have affected some two billion people.
We have all been made aware of recent events through the prism of a global media.
In this atmosphere one would have thought it would be ever more imperative to rethink human priorities and restructure institutions by the day.
However the Global Capitalists are in total denial about the situation, they repeat their mantra that time and patience will create the wealth necessary to resolve global poverty and looming environmental disaster.
However many observers and thinkers dispute this assumption and maintain that corporate globalisation and their’ winner takes all’ mentality will only widen the gap between the rich and poor. They reject completely the argument that exploiting the poor and raping the planets resources can generate the necessary funding available to solve huge global issues.
The defining political struggles of the 20th C were capitalism and Socialism, both concentrated power in institutions that were not accountable, in socialism it was the state and capitalism it was the corporations. Both systems work against a system of localised markets in which communities organise themselves within a framework of democratically determined rules.
We now have a crazy situation in the UK where prawns caught in the North Sea are frozen in the UK and then shipped to Asia to be peeled refrozen and sent back to the UK to be sold in high street shops.
The globalist economic model is based on continual growth through free trade, accompanied by deregulation of international activity. The four basic freedoms of the EU are; free movement of people, Goods, services and finance, with punitive measures in place for breaches of rules. The idea is to remove as many impediments to global free trade as possible and to expand corporate activity.
However the philosophy of continual growth is completely unsustainable because of finite resources.
The advocates of this free trade like to claim that the beneficiaries of all this trade will be the poor as they benefit from the trickle down of wealth. However in reality the benefit of this growth mainly trickles up.
This new globalisation of trade is not restricted to products and services of multinational companies like Microsoft and MacDonald’s, or out sourcing of domestic services to other parts of the world like call centres. Even elements that were until now considered to be a non commoditised form such as the genetic structures of our bodies are now becoming part of the commodity trading system through biotechnology with the process greatly assisted by WTO rules on intellectual property rights.
Similarly indigenous crop seeds freely shared and exchanged for hundreds of years are now subject to long term monopoly ownership by global corporations through patenting.
There are similar pressures to privatise fresh water, rivers and lakes once considered free and the basic elements of sustenance. These too are being converted into commodities as part of the global trade system. These have all become mere raw materials to be invested, and traded in. Note that the majority of British water is now owned by French, German and Australian companies
Even local public services are being out sourced to huge multinational companies, as well as areas previously reserves for local government such as public health and hospitals, police, prisons, broadcasting and entertainment are all being commoditised, and opened to foreign investment and domination, eventually we may end up in a situation where multinational companies like Mitsubishi are running our social security and Disney are running our Broadcasting, whilst Deutschbank are running our jails and parks! This may sound farfetched but it is already happening.
There is also the comodification of Money itself, made available for speculation and investment; right now the overwhelming majority of global transactions under free trade are not in goods but in finance.
Through IT is possible to transfer unimaginably large amounts of funds across borders anywhere in the world almost instantaneously without any controls on the transaction by the authorities. In fact such transactions are readily facilitated by organisations such as the EU, World Bank. This had a disastrous effect of destabilising many countries and was one of the causes of the 97/98 financial crisis that began in Asia.
There is now the tenet of a new Globalisation project that we are now seeing immerging; a single centralised super system, counties with economies and traditions as varied as those in India, Asia, South America, and Africa all meant to adopt similar tastes, values and lifestyles. They are meant to buy the same objects, drive the same cars, watch the same films, listen to the same music, eat the same food and of course be served by the same few multinational companies; global cultural diversity is going the way of bio-diversity.
Note China is now moving to a more Capitalist society and on current trends is expected to become the world’s richest nation by 2016. Furthermore if the developing nations of the world were to continue to develop until comparative to European levels then we would need approximately six planets in order to sustain the world’s population.
Bush, Brown, and Blair all spoke of creating a NWO, such as homogeneous model serves only the needs of the largest corporations, who act on a global level duplicating their production and marketing strategies on borderless terrain.
Corporate globalisation favours orienting all barriers to foreign investment and removing the restraints on speculative money across borders. These preferences encourage production for sale to other countries rather than the domestic consumption. These activities favour the multi-national corporations but leave people everywhere dependant on the actions of absentee owners on whom they have no influence.
The underlying rationale for this export orientated production centres on the theory of ‘comparative advantage’. According to the theory every country should only produce only those products over which it has a relative advantage, thus some countries should produce only single crops like coffee, sugarcane, forest products or high tech assembly. Theoretically they can meet their other needs by using the earning from these specialised exports to buy goods and services over which others have an advantage.
‘Comparative advantage’ is a crucial component in the theory of globalisation. It facilitates the replacement of diverse local or regional economic trading systems and instead replaces it with a large scale mono-cultural export system. Around the world this is a reversal of the 20th C model of economics which focused on diversifying their industry and agriculture in order to recover from the colonial model in which pineapple plantations, coffee plantations, banana plantations or more recently assembly works was imposed on them.
Once independent the governments of these countries decided that this kind of specialised production left them extremely vulnerable to political decisions taken abroad and to the shocks and whims of the market and commodity pricing systems. This self reliance was intended to help countries regains some degree of control over their domestic economies.
The assumption that hyper growth can continue forever is clearly false, how can exponential growth possibly sustained given the limited resources on a finite planet? Where will all the resources come from, the wood, the water, the land, come from to feed the hyper expansion without killing the planet and ourselves? How many cars and refrigerators can be built, how many fish can be vacuumed from the sea before species disappear and the ecosystem fails.
So who actually benefits the most from globalisation? It is not the farmers who are forced to mass produce crops at a minimum profit, it’s not the workers caught in a downward wage spiral. It is not the indigenous peoples facing hordes of corporate invaders seeking their decreasing resources and it is surely not nature. The beneficiaries are multinational companies and their directors some of whom rake in hundreds of millions of dollars while the wages of ordinary workers barely rose and in some case fallen in the last 25 years
