Be assured I'm not planning to carpet-bomb Thaxlotls on a daily basis.
Just seeing which thought-pieces excite interest ... and which don't.
Gutsy effort here by erstwhile conservative, currently interestingly
confused John Gray.

Cheers,
Rob.


The New Statesman
24 September 2001

The era of globalisation is over

By John Gray

Communism failed, but market liberalism then tried to impose
its own utopia. The atrocities should mark the end of that
crusade.

The dozen years between the fall of the Wall and the assault
on the Twin Towers will be remembered as an era of delusion.
The west greeted the collapse of communism - though it was
itself a western utopian ideology - as the triumph of
western values. The end of the most catastrophic utopian
experiment in history was welcomed as a historic opportunity
to launch yet another vast utopian project - a global free
market. The world was to be made over in an image of western
modernity - an image deformed by a market ideology that was
as far removed from any human reality as Marxism had been.
Now, after the attacks on New York and Washington, the
conventional view of globalisation as an irresistible
historical trend has been shattered. We are back on the
classical terrain of history, where war is waged not over
ideologies, but over religion, ethnicity, territory and the
control of natural resources.

We are in for a long period - not months but years, perhaps
decades - of acutely dangerous conflict, from which it will
be impossible, as well as wholly wrong, for Britain to stand
aside. It will be a type of conflict with which many regions
of the world are all too familiar, but which overturns many
of our preconceptions about war and peace. Its protagonists
are not the agents of states, but organisations whose
relationships with governments are oblique, ambiguous and
sometimes indecipherable. The men who struck the Pentagon
and the World Trade Center, using penknives and passenger
jets as weapons, were soldiers in a new kind of war.

A monopoly of organised violence is one of the defining
powers of the modern state, achieved slowly and with
difficulty. Now war, like so much else in the age of
globalisation, has slipped out from the control of
governments - and it has done so, moreover, with astonishing
speed over the past decade. The world is littered with
collapsed states. In much of Africa, in Afghanistan, in the
Balkans and a good deal of Russia, there is nothing that
resembles a modern state. In these zones of anarchy, wars
are fought by irregular armies commanded by political and
religious organisations, often clan-based, and prone to
savage internecine conflicts. No power is strong enough to
enforce peace.

The results expose the weaknesses and contradictions of the
global free market constructed after the cold war. Rich
societies cannot be insulated from the collapsed states and
new forms of war. Asylum-seekers and economic refugees press
on the borders of every advanced country. But while trade
and capital move freely across the globe, the movement of
labour is strictly limited - a very different state of
affairs from the late 19th century, a period of comparable
globalisation in which barriers to immigration hardly
existed. This is a contradiction rarely noted by
tub-thumpers for the global market, but it will become more
acute as travel is monitored and controlled ever more
stringently by governments.

With the assaults on New York and Washington, the anarchy
that has been one of the by-products of globalisation in
much of the world can no longer be ignored. The ragged,
irregular armies of the world's most collapsed zones have
proved that they can reach to the heart of its richest and
most powerful state. Their brutal coup is an example of what
military analysts call "asymmetric threat" - in other words,
the power of the weak against the strong. What it has shown
is that the strong are weaker than anyone imagined.

The powerlessness of the strong is not new. It has long been
revealed in the futile "war" on drugs. The trade in illegal
drugs is, along with oil and armaments, one of the three
largest components of world trade. Like other branches of
organised crime, it has thrived in the free-for-all created
by financial deregulation. The world's richest states have
squandered billions on a vain crusade against a highly
globalised and fabulously well-funded industry. Rooting out
terrorism will be even more difficult. After all, most of
the worst effects of the drug trade can be eradicated simply
by legalising it. There is no parallel remedy for terrorism.

The atrocities in Washington and New York did more than
reveal the laxity of America's airport security and the
limitations of its intelligence agencies. It inflicted a
grievous blow to the beliefs that underpin the global
market. In the past, it was taken for granted that the world
will always be a dangerous place. Investors knew that war
and revolution could wipe out their profits at any time.
Over the past decade, under the influence of ludicrous
theories about new paradigms and the end of history, they
came to believe that the worldwide advance of commercial
liberalism was irresistible. Financial markets came to price
assets accordingly. The effect of the attack on the World
Trade Center may be to do what none of the crises of the
past few years - the Asian crisis, the Russian default of
1998 and the collapse of Long Term Capital Management, an
over-leveraged hedge fund - was able to do. It may shatter
the markets' own faith in globalisation.

Some people say that this was the purpose of the attack, and
that we would be craven to give in to it. Instead, we are
told, we must reassert the verities of the global free
market and seek to rebuild it. And, with luck, it may not be
too late to stave off worldwide recession. But the name of
the game has changed for ever. The entire view of the world
that supported the markets' faith in globalisation has
melted down. Whatever anyone tells you, it cannot be
reconstituted. The wiser course is to ask what was wrong
with it.

It is worth reminding ourselves how grandiose were the
dreams of the globalisers. The entire world was to be remade
as a universal free market. No matter how different their
histories and values, however deep their differences or
bitter their conflicts, all cultures everywhere were to be
corralled into a universal civilisation.

What is striking is how closely the market liberal
philosophy that underpins globalisation resembles Marxism.
Both are essentially secular religions, in which the
eschatological hopes and fantasies of Christianity are given
an Enlightenment twist. In both, history is understood as
the progress of the species, powered by growing knowledge
and wealth, and culminating in a universal civilisation.
Human beings are viewed primarily in economic terms, as
producers or consumers, with - at bottom - the same values
and needs. Religion of the old-fashioned sort is seen as
peripheral, destined soon to disappear, or to shrink into
the private sphere, where it can no longer convulse politics
or inflame war.

History's crimes and tragedies are not thought to have their
roots in human nature: they are errors, mistakes that can be
corrected by more education, better political institutions,
higher living standards. Marxists and market liberals may
differ as to what is the best economic system - but, for
both, vested interests and human irrationality alone stand
between humankind and a radiant future. In holding to this
primitive Enlightenment creed, they are at one.

And both have their dogmatic, missionary side. For market
liberals, there is only one way to become modern. All
societies must adopt free markets. If their religious
beliefs or their patterns of family life make this difficult
for them, too bad - that is their problem. If the
individualist values that free markets require and propagate
go with high levels of inequality and crime, and if some
sections of society go to the wall, tough - that is the
price of progress. If entire countries are ruined, as
happened in Russia during the time of neoliberal shock
therapy, well - as an earlier generation of radicals
nonchalantly put it - you can't make an omelette without
breaking eggs.

During the 1990s, this crudely rationalistic philosophy was
hugely influential. It had a stronghold in the International
Monetary Fund, as it blundered and bungled its way across
the world exercising its power to impose identical policies
on countries with vastly different histories, problems and
circumstances. There was only one route to modernity - and
the seers who ruled the IMF were resolved that it be
followed everywhere.

In fact, there are many ways of being modern, and many of
failing to be so. It is simply not true that liberal
capitalism is the only way of organising a modern economy.
Bismarck's Prussia embodied a different model, as did
tsarist Russia, and each of them might well have been with
us still in some form had the First World War ended
differently. The Japanese and German forms of capitalism
have never conformed to the free market model and - despite
orthodox opinion everywhere telling us the contrary - it is
a safe bet that they never will. We cannot know in advance
what modernity means for any given society, or what it takes
to achieve it. All we know for sure is that different
countries have modernised successfully in a variety of ways.

The atrocities of 11 September have planted a question mark
over the very idea of modernity. Is it really the case that
all societies are bound, sooner or later, to converge on the
same values and views of the world? Not only in America but
also, to some degree, in most western countries, the belief
that modernisation is a historical imperative that no
society can ignore for long made it harder to perceive the
growing risk of an anti-western backlash. Led by the US, the
world's richest states have acted on the assumption that
people everywhere want to live as they do. As a result, they
failed to recognise the deadly mixture of emotions -
cultural resentment, the sense of injustice and a genuine
rejection of western modernity - that lies behind the
attacks on New York and Washington.

In my view, it is reasonable to regard the struggle against
the groups that mounted those attacks as a defence of
civilised values. As their destruction of ancient Buddhist
relics demonstrated, the Taliban are hostile to the very
ideas of toleration and pluralism. But these ideas are not
the property of any one civilisation - and they are not even
peculiarly modern. In western countries, the practice of
toleration owes much to the Reformation and, indeed, to the
Enlightenment, which has always contained a sceptical
tradition alongside its more dogmatic schools. Beyond
Europe, toleration flourished long before the modern era in
the Muslim kingdoms of Moorish Spain and Buddhist India, to
name only two examples. It would be a fatal error to
interpret the conflict that is now under way in terms of
poisonous theories about clashing civilisations.

Effective action against terrorism must have the support of
a broad coalition of states, of which Britain should
certainly be part. Crucially, these must include Muslim
countries (which is one reason why American military action
must entail new attempts to seek peace in Israel). Not only
Russia and China - each of which has serious problems with
Islamic fundamentalism - but even Iran could conceivably
join in a US-led coalition.

Constructing such a far-reaching alliance will be an
exercise in realpolitik in which ideas of global governance
of the kind that have lately been fashionable on the left
become largely irrelevant. The US will find itself supping
with former enemies and courting states that are in no sense
committed to liberal values. In waging war against the
Taliban, it will do battle against a force it backed only a
few years ago to resist the Soviet invasion. Such ironies
can no more be conjured away by international courts than by
global markets. They are built into an intractably
disordered world. Bodies such as the United Nations can play
a useful role in the labyrinthine diplomacy that will
inevitably surround military action. But anyone who thinks
that this crisis is an opportunity to rebuild world order on
a liberal universalist model has not understood it. The
ideal of a universal civilisation is a recipe for unending
conflict, and it is time it was given up. What is urgently
needed is an attempt to work out terms of civilised
coexistence among cultures and regimes that will always
remain different.

Over the coming years, the transnational institutions that
have built the global free market will have to accept a more
modest role, or else they will find themselves among the
casualties of this great upheaval. The notion that trade and
wealth creation require global laissez-faire has no basis in
history. The cold war - a time of controls on capital and
extensive intervention in the economy by national
governments - was, in western countries, a time of
unprecedented prosperity. Contrary to the cranky orthodoxies
of market liberals, capitalism does not need a worldwide
free market to thrive. It needs a reasonably secure
environment, safe from the threat of major war, and reliable
rules about the conduct of business. These things cannot be
provided by the brittle structures of the global free
market.

On the contrary, the attempt to force life everywhere into a
single mould is bound to fuel conflict and insecurity. As
far as possible, rules on trade and the movement of capital
should be left to multilateral agreements between sovereign
states. If countries opt to stay out of global markets, they
should be left in peace. They should be free to find their
own version of modernity, or not to modernise at all. So
long as they pose no threat to others, even intolerable
regimes should be tolerated. A looser, more fragmented,
partly de-globalised world would be a less tidy world. It
would also be a safer world.

It will be objected that de-globalisation defies the
dominant trend of the age. But while it is true that
technology will continue to shrink time and distance, and in
that sense link the world more closely, it is only a
bankrupt philosophy of history that leads people to think
that it will produce convergence on values, let alone a
worldwide civilisation.

New weapons of mass destruction can - and quite possibly
will - be used to prosecute old-style wars of religion. The
Enlightenment thinking that found expression in the era of
globalisation will not be much use in its dangerous
aftermath. Even Hobbes cannot tell us how to deal with
fundamentalist warriors who choose certain death in order to
humble their enemies. The lesson of 11 September is that the
go-go years of globalisation were an interregnum, a time of
transition between two epochs of conflict. The task in front
of us is to forge terms of peace among peoples separated by
unalterably divergent histories, beliefs and values. In the
perilous years to come, this more-than-Hobbesian labour will
be quite enough to keep us occupied.

John Gray, professor of European thought at the London
School of Economics, is the author of False Dawn: the
delusions of global capitalism (Granta)



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