-Caveat Lector-

radman pull quote:
" What caused this sudden change of attitude? The success of the
      street protests in Seattle, Washington, Prague and Melbourne,
      confirmed by the demonstrations in Nice."
====================================================
Le Monde diplomatique
January 2001

                    GLOBALISATION, TURNING BACK THE TIDE ?

                       Frightening the free marketeers

                              by BERNARD CASSEN

      Globalisation is irreversible, inevitable and, according to
      political commentator Alain Minc, necessarily "beneficial" (1). Or
      so free-market pundits of all kinds have been telling us for over
      10 years now. The message has been repeated ad nauseam by economic
      journalists, leader-writers, essayists, international institutions
      and governments of all shades. And the credo is still being
      proclaimed in its most naive form. "For my part," European
      commissioner Frederik Bolkestein wrote recently, "I shall remain
      firm in my objections to the Tobin tax, in my advocacy of healthy
      tax competition, and above all in my belief in the virtues of
      globalisation" (2).

      Yet Bolkestein would probably have been thought unnecessarily crude
      by his usual mentors, the World Bank, the International Monetary
      Fund (IMF) and the World Trade Organisation (WTO). Without of
      course changing their practice, they have at least stopped shooting
      a line that people are no longer prepared to swallow. In its latest
      World Development Report the bank admits that, in terms of its
      "attack" on poverty, its structural adjustment programmes are a
      failure. At the annual economic symposium of the Federal Reserve
      Bank of Kansas City last August, former IMF deputy managing
      director Stanley Fischer acknowledged the validity of many
      anti-globalisation attacks on governments, corporations and
      international institutions (3). And Michael Kinsley, leader writer
      for Time magazine, who is one of the WTO's most ardent defenders,
      recently regretted that the organisation "is despised across the
      entire political spectrum" (4). So much for Bolkestein's "virtues"
      and Alain Minc's "benefits".

      More serious for the credibility of these two "experts" is the
      pessimistic assessment of the future of globalisation in the
      British and American financial press which has made no bones about
      criticising those self-proclaimed global leaders who have no time
      for well-meaning amateurs (5). On 11 September the Financial Times
      warned that "as long as the demands of the public and the capital
      markets are in conflict, politicians will conclude that
      anti-business populism promises electoral dividends. The message
      for big business is hardly reassuring." On 6 November Business Week
      observed that "unless multinational companies shoulder more of the
      social costs themselves in countries where governments are weak,
      street protesters will probably set the rules for them". But it was
      The Economist that really sounded the alarm bells. On 23 September
      it admitted that "the protesters are right that the most pressing
      moral, political and economic issue of our time is third-world
      poverty. And they are right that the tide of globalisation,
      powerful as the engines driving it may be, can be turned back. The
      fact that both these things are true is what makes the protesters -
      and, crucially, the strand of popular opinion that sympathises with
      them - so terribly dangerous."

      What caused this sudden change of attitude? The success of the
      street protests in Seattle, Washington, Prague and Melbourne,
      confirmed by the demonstrations in Nice. It is no mean admission to
      warn that globalisation is reversible and that political leaders,
      responding to voters' "populism", can perfectly well undo what they
      have done or allowed to be done in their name. Tactical
      considerations certainly play a part in this. By raising the
      spectre of a mass anti-globalisation movement, the critics aim to
      provoke governments into taking the measures needed to banish it.
      Unlike the prophecies of international financiers, these are not
      intended to be self-fulfilling.

      But although deliberate manipulation may play only a small part in
      the current change of attitude, it is not free of risk. It
      considerably strengthens the hand of the opponents of free-market
      globalisation, who see that their struggle is paying dividends.
      Apart from the growing impact of the opposition movements, there is
      another, very straightforward explanation for the change of
      attitude. It is the still unarticulated feeling that
      anti-globalisation is gaining ground because it has adopted the
      same top-down strategy as globalisation itself.

      In the interests of American finance

      Neo-liberal ideology was fabricated entirely in response to the
      interests of American finance, concerned to remove all obstacles to
      the worldwide free movement of capital. A systematic drive to raise
      funds and infiltrate the universities and media was required in
      order for it to win intellectual hegemony - first in the United
      States and then in the rest of the world. By means of the
      intellectual straitjacket known as the Washington consensus, it was
      subsequently imposed on the large number of countries "benefiting"
      from loans from the Bretton Woods institutions. In Europe - driven
      in the early 1980s by a Thatcherite philosophy enthusiastically
      espoused by a series of governments across the Channel - it gave
      rise to the "strong franc" policy, the decision to liberalise
      capital movements in 1988, the Maastricht treaty of 1992 and the
      budgetary stability pact of 1997. It is responsible for the
      structural adjustment plans imposed on EU applicants in the form of
      acceptance of the Community "acquis" and, more generally, for all
      the economic liberalisation measures proposed or implemented by the
      European Commission.

      In each case, peoples have been summoned to comply with measures
      legitimised by international institutions that are supposedly above
      partisan politics and, by reason of their technical "expertise",
      alone able to decide on the "only possible policies". Governments
      actively involved in formulating those measures have subsequently
      been able to apply them by invoking, as required, the "conditions"
      imposed by the IMF and the World Bank or the "constraints" of EU
      membership. This top-down strategy has served both to absolve
      governments from responsibility and to legitimise their actions.
      Now the anti-globalisation opposition has taken the top-down route
      from the international to the national, and it is applying the
      strategy to great effect.

      In France, for example, the scathing critics of "inward-looking
      nationalism", "the French ideology" and "national republicanism" -
      from Bernard-Henri Lévy to Philippe Sollers, via Daniel Cohn-Bendit
      and a few of their journalist friends - have failed to squeeze the
      anti-globalisation movement into the straitjacket of preconceived
      ideas they employ to defend and demonstrate their free-market
      orthodoxy (6). The fact that José Bové's bail was paid by American
      farmers, for example, or that a movement like Attac (7) has spread
      spontaneously to a score of countries, makes nonsense of
      allegations of nationalism. The mass protests in Seattle and Nice
      brought together demonstrators from many different countries. All
      came with demands specific to their own countries or professions,
      but all those demands were set in a global context.

      It is becoming clear to everybody that since national policies are
      over-determined by strategies decided at international level,
      protest and the formulation of alternatives must also take place at
      that level. In sharp contrast to free-market globalisation, which
      is purely a product of the North, the new alternatives must
      incorporate the aspirations of both North and South. The main task
      of the World Social Forum to be held from 25 to 30 January in Porto
      Alegre (see Ignacio Ramonet's leading article) will be to formulate
      the first global alternatives. It will then be up to the movements,
      unions and elected representatives attending the forum to translate
      them into actions suited to each country, bearing in mind local
      power relations. A new internationalism is emerging - very slowly,
      of course, because issues such as social and environmental
      standards can divide as well as unite. It will gradually bring
      together isolated struggles and legitimise them by reference to a
      common set of proposals associated with symbolic venues.

      For citizens' movements, Seattle or Porto Alegre may soon acquire
      the status which the Washington consensus or the budgetary
      stability pact have for their national governments. The piercing
      anxiety of the free-marketeers can now be more easily understood.
      They see looming before them a structure built on a model of their
      own making. They are only too aware of its efficiency and know that
      the outcome of their policies can only be to strengthen it. And
      they are unlikely to be reassured by an excellent recent report by
      the Canadian Security Intelligence Service (CSIS) entitled
      "Anti-globalisation - a spreading phenomenon" (8).
        ______________________________________________________________

      (1) The reference is to the unforgettable French title of Minc's
      book, La mondialisation heureuse (Editions Plon, Paris, 1997),
      which may be rendered in English as "The Benefits of
      Globalisation".

      (2) "To the Enemies of Globalization", The Wall Street Journal
      Europe, 25 September 2000.

      (3) Financial Times, 28 August 2000.

      (4) Michael Kinsley, "The Mystical Power of Free Trade", Time,
      December 13, 1999.

      (5) French pro-globalisation journalists, however, appear to lag
      behind in this respect. Jean-François Revel's article in Le Point
      on 15 December is itself suggestive of the famous "retard français"
      which the magazine is always lambasting. His delusions include
      references to "the Seattle, Davos and Biarritz hordes", "a few
      thousand terrorists", "assault troops" who "call, like Hitler, for
      the closure of frontiers" and, at the same time, "look back fondly
      to the Soviet model".

      (6) Some use devious methods to attempt to discredit the
      anti-globalisation movement. An example is the use of the French
      adjective "anti-mondialiste", deliberately borrowed from the
      vocabulary of the Front National, to suggest kinship with that
      party. This trick was used by Alexandre Adler, for example, in an
      article entitled "La mondialisation malheureuse" (Le Monde, 23
      November 2000), in which he attacked, for good measure, the
      "agitational violence of communitarian cranks in Seattle and
      Prague". Under the headline "Le vrai fiasco de la présidence
      française" (Le Monde, 13 December 2000), Alain Lipiez, a Green
      Party member of the European parliament, went so far as to claim
      that the term was used by the anti-globalists themselves.

      (7) Association for the Taxation of financial Transactions for the
      Aid of Citizens, currently chaired by the author of this article.

      (8) http://www.csis-scrs.gc.ca/eng/miscdocs/200008_e.html

                                               Translated by Barry Smerin
        ______________________________________________________________

             ALL RIGHTS RESERVED © 1997-2001 Le Monde diplomatique

<http://www.monde-diplomatique.fr/en/2001/01/09globalisation>

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