Soc Chg: Globalization

Overview
Globalization as a concept means today something much different from its typically assigned meaning.  Originally, it was a pie-in-the-sky idea to integrate the countries of the world into some economic cooperative whole.  You still find that mode of thought in such books as In Defense of Globalization by Jaedish Bhagwati (2004).  However the term has taken on a different meaning as underdeveloped nations have come to recognize that such a vision was clouded by the exploitive actions of multinational companies bent upon dictating international trade policies to effectively benefit only the wealthy and powerful nations in which their corporate headquarters reside.  The poor countries, usually carrying much debt to the international financiers who align themselves with large corporations and cartels, sought to alter the rules and regulations of international commerce and trade so as to take into consideration their own interests only.  Through collective effort, i.e., by banning together to form a block, the underdeveloped have become an ever-present force to resist yielding to the demands and dictates of the magnate corporations.

Acting as a united front against the powerful corporate structures spanning the globe, any one of which has access to wealth far in excess to that of any particular poor country, they altogether have protected each from the onslaught of pressures being forced upon them in such areas as managing their own resources.  The Internet and other communication networks are being used in the binding process.       

Parenthetically, I became aware of the new globalization thrust, when I involved myself in the design phase of Russia's current constitution, while I was visiting Russia in the late '80s.  Russia, which owned the industries within its borders and those of its satellites, had operated as a unified Soviet Union Empire, a single vast corporate conglomerate, as it were.  To my way of thinking, the several provinces were the same as underdeveloped nations.  Lithuania, Estonia, and Latvia broke away from this and went their own way.  I perceived in the effort to establish a new constitution there was a way to retain the positive aspects of the Empire while permitting an autonomy to each member state heretofore unheard of.  A founding document emerged for what is now called the Federation of Independent States (FIS).  Under it there will be no czars, e.g., Nicholas I, ever again--if the Constitution remains in tact--but there will be a unity of political will and purpose among the member states, including Russia herself.

Be that as it may, I think globalization, signifying the emerging economic picture worldwide, points to a continuing successful effort to maintain the balance of power between corporate multinationals and poor but resource-rich countries, upon which business must rely.  I traveled a lot in Central and South America during the late '80s and through my many encounters I  became convinced that if the poor people of the underdeveloped countries did not substantially improve their lot, their lands would become areas of foment and revolution expressing hatred toward the wealthy and dominant great powers.  They would engage in civil strife not unlike what we have seen occur in Rwanda and Southern Sudan.  I think it encouraging that the Tunisian politicians in power are turning to technocrats to solve their long-standing financial and social problems rather than to going off ro lead the desparate and discontented into social upheaval.

In sum, the globalization system is working!

Discussion
Let's develop the current vision of a world globalized within the facts of history.

Actually, ever since the Middle Ages trade worldwide has been achieved through the establishment of East-West trade land and sea routes.  It was further advanced by international companies sponsoring trade such as the Dutch East India Company and the tea trading companies of England.  And in Central and South America the United Fruit Company started sending agricultural products to the US over a century ago.  In these several instances, one notes the involvement of these trading companies in the internal affairs of the foreign countries they did business at, for the sake of maintaining a stable political and social environment in which to operate.  The CIA, no doubt acting on behalf of the US companies with foreign investments abroad, also endeavored to maintain law and order, e.g., throughout Central and South America.

What's new about the current effort toward globalization is the insinuation of governments, native and foreign, to regulate and oversee commercial ventures.  Just as in centuries past, the companies from prosperous and powerful nations invest capital to develop resources in the poor countries.  But what you're seeing today is that companies in the poorer countries are co-joined with those making the investments under government supervision,  e.g., through joint-venture agreements.  There's many more partnership-relationships occurring, in order to control outside influence upon internal industrial policies--as established and enforced by the native government.  No longer will foreign countries permit outside dictation of the rules and regulations of business transactions by the multinationals.  Corruption, such as bribing a politicl official, has not been eliminated; but governmental oversight, even intervention into the commercial arena, has been added; that importantly, tyranny of the rich nations and smart corporations be placed into check.


Helping these foreign lands to stand up for their own self-interests are the many, many NGOs (Non-Governmental Organizations).  Some of these assume the fight to protect the environment and the land of the poor countries from pollution and unsafe use.  They act as a support network to assure that the rights of these countries are properly respected.  NGOs make wide use of e-mail and the Internet to conduct campaigns for human rights and social justice.  It is unconscienable but true that Big Business tends to look the other way when instances of child labor and poor working conditions are brought to their attention; yet to their credit, NGOs take up the cudgel--providing information and offering remediation

To be sure, trade barriers are being eliminated  where it makes sense to do so; and international trade is being facilitated by actions taken from the multinationals and the governments and the industries in the underdeveloped countries.  Financial institutions such as the IMF (International Monetary Fund) and the World Bank offer financial carrots to the developing nations to improve the climate of trade and commerce worldwide.  There's also a plethora of bilateral aid organizations to add encouragement for countries to engage in sound fiscal policies that lead to greater dependability of international trade.

However, the multinationals are posturing a political climate of laissez faire or free trade with no interference by government and no imposition of regulations inhibiting Big Business worldwide.  Yet, some tariff barriers enable a developing country to make a substantial amount of money.  If, for example, a country's major export is fish and the product is in great demand worldwide, it's crazy to demand of that country to make less money by offering the item for less than what the industry and its government could otherwide realize in profit.  Tariffs have been used effectively not simply in instances of protecting native industries but for gaining much needed revenue--as in cases of Canada and Argentina, reported by Bhagwati.

I sympathize with what President Chavez must endure. as in his country there is being waged a viscious media campaign to get his government out of trade and commerce.  In the US, we're experiencing much the same from the Radio Talk Shows, who daily implore the removal of government interference in affairs of business.  Corporate America, no different than the multinationals of any country, want a free hand in their business activities, no matter how such activities,including those nefarious and fraudulent, impact society as a whole.

Regardless of certain issues raised because of government enforced trade and business policies existing in one or another underdeveloped country, many have realized a per annum growth rate of over !0%!  Remarkable.

Meta-Elements of Globalization
1.  The promise.  Through the use of computerized communication networks, the poor countries have formed a formidable block to withstand the pressures of certain multinationals dedicated to policies of laissez faire, placed upon one or another country to foresake or simply ignore doing what is in its own self-interest.

2.  An Acceptance.  Surprisingly, even the governments of nations where multinational headquarters are located have frequently helped in bringing about an acceptance of the the underdeveloped countries' positions on export-import trade .  I, for one, was certainly taken back that Russia seemed to appreciate the need for its satellites to maintain their own independent points of view and ways by adopting the FIS constitution!

3.  Areas of development.  With help from the NGOs, including the creditable Bill Gates Foundation, even the poorest of countries have been enabled to pressure the multinationals to stay out of its internal affairs and to place into the fore of international trade discussions the concerns such nations have in promoting their own self-interest.  The idea here is to enable each participant in a commercial enterprise to promote the goodwill of the venture for others: each for all.

4.  Provisions for its breakdown.   If the globalization effort were to disintegrate, be prepared for widespread social upheaval.  Order in the society would be maintained through the use of the bayonet.

5.  A vision of things to come.  Even the poorest of countries would slowly but surely mature, such that each country of the world would deserve the respect of the others as an equal trading partner.  Thereupon,  the stage would be set, I believe, for the drama to shatter the barriers maintaining national and religious exclusivism, i.e., exclusivity, the current bugaboo of international commerce among the peoples of the world.