Walden Bello: Dismantling corporations and their proxies

From: Per I. Mathisen (Per.Inge.Mathisen@idi.ntnu.no)
Date: Tue Feb 27 2001 - 14:48:02 MET

  • Next message: Trond Andresen: ""Nasjonalisme", Per?"

    Walden Bello igjen. Denne gangen med positivt svar på hva vi skal gjøre
    med verden: Deglobaliser den!

    Jeg har dessverre liten tiltro til hans svar. Jeg tror at utviklingen har
    gått så langt i retning av globalisering (av borgerskapets makt) at vi
    ikke lengre kan gå tilbake til situasjonen i verden slik den var
    tidligere. Vi må finne en ny type løsning, og da vil ikke nasjonalisme
    være en del av løsningen, men en blindgate. Men jeg kan ta feil.
    Artikkelen er i alle fall verd å lese.

    Mvh,
    Per

    ---------- Forwarded message ----------
    <http://www.policyalternatives.ca/>

    Should corporate-led institutions be reformed or disempowered?
    It's not off the wall to think of dismantling corporations
    [Part II of The most crucial task facing the world's NGOs]

    by Waldon Bello
    The CCPA Monitor, February 2001, pp 14-16

    The battle against the global corporate agenda will be largely decided by the
    tactics adopted by the world's non-government organizations (NGOs). And these
    tactics in turn depend not only on the balance of forces, but will turn even
    more fundamentally on our answer to the key question: Should we seek to
    transform or to disable the main institutions of corporate-led globalization?

    Institutions should be saved and reformed they're functioning, while defective,
    but nevertheless can be reoriented to promote the interests of society and the
    environment. They should be abolished if they have become fundamentally
    dysfunctional.

    Can we really say that the International Monetary Fund can be reformed to bring
    about global financial stability, the World Bank to reduce poverty, and the WTO
    to bring about fair trade? Are they not, in fact, imprisoned within paradigms
    and structures that create outcomes that contradict these objectives? Can we
    truly say that these institutions can be re-engineered to handle the multiple
    problems that have been thrown up by the process of corporate-led globalization?

    The answer to all these questions, realistically, is NO. So, instead of trying
    to reform these institutions, would it in fact be more realistic--and
    "cost-effective," to use a horrid neoliberal term--to abolish or at least
    disempower them, and create totally new institutions that do not have the
    baggage of illegitimacy, institutional failure, and Jurassic mindsets that
    attach to the IMF, the World Bank, and the WTO?

    Disabling the corporation

    Indeed, I would contend that the focus of our efforts these days is not to try
    to reform the multilateral agencies, but to deepen the crisis of legitimacy of
    the whole system. Gramsci once described the bureaucracy as but an "outer trench
    behind which lay a powerful system of fortresses and earthworks." We must no
    longer think simply in terms of neutralizing the multilateral agencies that form
    the outer trenches of the system, but of disabling the transnational
    corporations that are the fortresses and earthworks that constitute the core of
    the global economic system.

    I am talking about disabling not just the WTO, the IMF, and the World Bank, but
    the transnational corporation itself. And I am not talking about a process of
    "reregulating" the TNCs but of eventually dismantling them as fundamental
    hazards to people, society, the environment, to everything we hold dear.

    Is this off the wall? Only if we think that the shocking irresponsibility and
    secrecy with which the Monsantos and Novartises have foisted biotechnology on
    us is a departure from the corporate norm. Only if we also see as deviations
    from the norm Shell's systematic devastation of Ogoniland in Nigeria, the Seven
    Sisters' conspiracy to prevent the development of renewable energy sources in
    order to keep us slaves to a petroleum civilization, Rio Tinto's and the mining
    giants' practice of poisoning rivers and communities, and Mitsubishi's recently
    exposed 20-year cover-up of a myriad of product-safety violations to prevent a
    recall that would cut into profitability. Only if we think that it is acceptable
    business practice to pull up stakes, lay off people, and destroy
    long-established communities in order to pursue ever-cheaper labour around the
    globe--a process that most TNCs now engage in.

    NO, these are not departures from normal corporate behaviour. They are normal
    corporate behaviour. And corporate crime against people and the environment
    has, like the Mafia, become a way of life because, as the British philosopher
    John Gray tells us, "Global market competition and technological innovation have
    interacted to give us an anarchic world economy."

     To such a world of anarchy, scarcity, and conflict created by global
    laissez-faire, Gray continues, "Thomas Hobbes and Thomas Malthus are better
    guides than Adam Smith or Friedrich von Hayek, with their Utopian vision of a
    humanity united by "the benevolent harmonies of competition." Smith's world of
    peacefully competing enterprises has, in the age of the TNC, degenerated into
    Hobbes' "war of all against all."

    Gray goes on to say that, "As it is presently organized, global capitalism is
    supremely ill-suited to cope with the risks of geo-political conflict that are
    endemic in a world of worsening scarcities. Yet a regulatory framework for
    coexistence and cooperation among the world's diverse economies figures in no
    historical or political agenda."

    Recent events underline his point. When the ice cap on the North Pole is
    melting at an unprecedented rate and the ozone layer above the South Pole has
    declined by 30%, owing precisely to the dynamics of this corporate
    civilization's insatiable desire for growth and profits, the need for
    cooperation among peoples and societies is more stark than ever. We must do
    better than entrust production and exchange to entities that systematically and
    fundamentally work to erode solidarity, discourage cooperation, oppose
    regulation except profit-enhancing and monopoly-creating regulation, all in the
    name of "the market" and "efficiency.'

    It is said that, in the age of globalization, nation states have become obsolete
    forms of social organization. I disagree. It is the corporation that has become
    obsolete. It is the corporation that serves as a fetter to humanity's movement
    to new and necessary social arrangements to achieve the most quintessential
    human values of justice, equity and democracy, and to achieve a new equilibrium
    between our species and the rest of the planet.

    Disabling, disempowering, or dismantling the transnational corporation should be
    high on our agenda as a strategic end. And when we say this, we do not equate
    the TNC with private enterprise, for there are benevolent and malevolent
    expressions of private enterprise. We must seek to disable or eliminate the
    malevolent ones, like the Mafia and the TNC.

    Deglobalization

    It is often said that we must not only know what we are against, but also what
    we are for. I agree, though it is very important to know very clearly what we
    want to terminate so that we do not end up unwittingly fortifying it, so that,
    like a WTO fortified with social and environmental clauses, it is given a new
    lease on life.

    Let me end, therefore, by giving you my idea of an alternative. It is, however,
    one that has been formulated for a Third World, and specifically Southeast
    Asian, context. Let me call this alternative route to the future
    "deglobalization."

    I am not talking about withdrawing from the international economy. I am speaking
    about--

    reorienting our economies from production for export to production for the local
    market;
    drawing most of our financial resources for development from within rather than
    becoming dependent on foreign investment and foreign financial markets;
    carrying out the long-postponed measures of income redistribution and land
    redistribution to create a vibrant internal market that would be the anchor of
    the economy;
    de-emphasizing growth and maximizing equity in order to radically reduce
    environmental disequilibrium;
    not leaving strategic economic decisions to the market, but making them subject
    to democratic choice;
    subjecting the private sector and the state to constant monitoring by civil
    society;
    creating a new production and exchange complex that includes community
    cooperatives, private enterprises, and state enterprises, and excludes TNCs; and
    enshrining the principle of subsidiarity in economic life by encouraging the
    production of goods to take place at the community and national level if it
    can be done so at reasonable cost in order to preserve community.
    We are talking, moreover, about a strategy that consciously subordinates the
    logic of the market and the pursuit of cost efficiency to the values of
    security, equity, and social solidarity. We are speaking, in short, about
    re-embedding the economy in society, rather than having society driven by the
    economy.
    A plural world

    Deglobalization, or the re-empowerment of the local and national, however, can
    only succeed if it takes place within an alternative system of global economic
    governance. What are the contours of such a world economic order? The answer to
    this is contained in our critique of the Bretton Woods-cum-WTO system as a
    monolithic system of universal rules imposed by highly centralized institutions
    to further the interests of corporations and, in particular, U.S. corporations.
    To try to supplant this with another centralized global system of rules and
    institutions, though these may be premised on different principles, is likely to
    reproduce the same Jurassic trap that ensnared organizations as different as
    IBM, the IMF, and the Soviet state--and this is the inability to tolerate and
    profit from diversity.

    Today's need is not another centralized global institution, but the
    de-concentration and de-centralization of institutional power and the creation
    of a pluralistic system of institutions and organizations interacting with one
    another, guided by broad and flexible agreements and understandings.

    We are not talking about something completely new. For it was under such a more
    pluralistic system of global economic governance, where hegemonic power was
    still far from institutionalized in a set of all-encompassing and powerful
    multilateral organizations and institutions, that a number of Latin American and
    Asian countries were able to achieve a modicum of industrial development in the
    period from 1950 to 1970.

    It was under such a pluralistic system, under a General Agreement on Tariffs and
    Trade (GATT) that was limited in its power, flexible, and more sympathetic to
    the special status of developing countries, that the East and Southeast Asian
    countries were able to become newly industrializing countries through activist
    state trade and industrial policies that departed significantly from the
    free-market biases enshrined in the WTO.

    Of course, economic relations among countries prior to the attempt to
    institutionalize one global free market system beginning in the early 1980s were
    not ideal, nor were the Third World economies that resulted ideal. But these
    conditions and structures underline the fact that the alternative to an economic
    Pax Romana built around the World Bank-IMF-WTO system is not a Hobbesian state
    of nature. The reality of international relations in a world marked by a
    multiplicity of international and regional institutions that check one another
    is a far cry from the propaganda image of a "nasty" and "brutish" world.

    Admittedly, the threat of unilateral action by the powerful is ever present in
    such a system, but it is one that even the most powerful hesitate to take for
    fear of its consequences on their legitimacy, as well as the reaction it would
    provoke in the form of opposing coalitions.

    In other words, what developing countries and international civil society should
    aim at is not to reform the TNC-driven WTO and Bretton Woods institutions, but,
    through a combination of passive and active measures, to radically reduce their
    powers and to turn them into just another set of actors coexisting with and
    being checked by other international organizations, agreements, and regional
    groupings. These would include such diverse actors and institutions as UNCTAD,
    multilateral environmental agreements, the International Labour Organization,
    the European Union, and evolving trade blocs such as Mercosur in Latin America,
    SAARC in South Asia, SADCC in Southern Africa, and a revitalized ASEAN in
    Southeast Asia.

    More space, more flexibility, more compromise: these should be the goals of the
    civil society effort to build a new system of global economic governance. It is
    in such a more fluid, less structured, more pluralistic world, with multiple
    checks and balances, that the nations and communities of both the South and the
    North will be able to carve out the space to develop based on their values,
    their rhythms, and the strategies of their choice.

    Let me quote John Gray one last time: "It is legitimate and indeed imperative,"
    he says, "that we seek a form of rootedness which is sheltered from overthrow by
    technologies and market processes, which, in achieving a global reach that is
    disembedded from any community or culture, cannot avoid desolating the Earth's
    human settlements and its non-human environments.

    "The role of international arrangements in a world where toleration of
    diversity is a central principle of economic organization would be to express
    and protect local and national cultures by embodying and sheltering their
    distinctive practices."

    Let us put an end to this arrogant globalist project of making the world a
    synthetic unity of individual atoms shorn of culture and community. Let us
    herald, instead, an internationalism that is built on, tolerates, respects, and
    enhances the diversity of human communities and the diversity of life.

    (During the 1970s, Waldon Bello earned a doctorate in political sociology from
    Princeton University, taught at the University of California and worked as a
    lobbyist in Washington DC for democratic rights in the Philippines. He is
    currently co-director of Focus on the Global South, a project of Chulalongkorn
    University's Social Research Institute in Bangkok. He is also Professor of
    Public Administration and Sociology at the University of the Philippines. He has
    served on the International Board of Greenpeace and currently serves on the
    Board of Oxfam and on the Program Board of the International Centre for Trade
    and SustainabIe Development (ICTSD) in Geneva, which supplies information to
    NGOs on the operations of the World Trade Organization.)



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