A summary of an article from the Global Futures Bulletin #97,
"Globalisation, Protectionism and 3rd World Development"
Richard Douthwaite pointed out in his article "Sustainable economies and
globalisation" that " net" outflows of capital from mature economies
result in greater income and wealth inequity in those economies. He
suggested that it is difficult to claw back equity standards once they
have been eroded. The authors believe that equity standards must be
agreed on and the least painful strategies implemented following
Principle 5, of the Rio Declaration, Agenda 21, "to decrease
disparitries in standards of living"
One strategy to increase equity might be to impose a progressive Elected
Social Development Tax where taxpayers may choose amongst a wide range
of jprograms and charities they wish to support. Another strategy is to
increase resource taxes particularly those with high environmental
impact such as fossil fuels, pesiticides, non-recyclables. If these
taxes are used for social servies and fund zero tax for low wage earners
dispartiy can be reduced. The aim being over the next 5 to 10 decades to
ultimately shift focus toward community based development and focus on
quality of life indicators.
What is essential in the short term is to establish an appropriate
global regulatory framework to ensure that corporate driven development
is ecologically sustainable and socially just. Corporate driven
development and transfer of capital must be recognized as expedient for
increased living standard of least developed countries.
While some critics argue that corporate driven development and social
justice are an anathma, another argument says that given a strong global
regulatory framework capital will conform since it has no where else to
go. The creation of capital is dependent on conditions for growth.
The answer must lie in regulation which is:
--global with provision for variation and flexibility as the situation
may warrent
-- enforceable at minimum cost
--smart, working with private enterprise using global instuments
Proponents of environmentally sustainable and socially just development
must get together with proponents of globalisation to hammer out a
regulatory framework that works for all. The framework must include
strategies and incentives for direct investment to least developed
countries. The WTO thus far has functioned as a closed shop. This needs
to change. Ultimately over the next few decades we must work towards an
optimum mix of government (reinvented), corporate interests (tempered)
and local community driven interests (just recently rising in
influence).
Much of the anti-WTO movement in Seattle is in fact lobbying for a
different sort of cautious, controlled and regulated globalisation that
deals with environment, labour, social, intellectual property, cultural
and development issues. Transnationals themselves are seeking
regulations--a global regulated environment which provides more
consistent investment environment, reducing bureacratic procedures, ad
hoc fluctuations, and investment risk.
How to balance the question for protection of jobs in developed
countries with the transfer of capital to the least developed?
The increase of transfer of capital to developing countries must
happen in a controlled fashion (with taxes and incentives). Since there
are already problems of unemployment partly attibutable to the flight of
captial to countries where labour is cheaper, strategies for dealing
with unemployment need to be improved with such strategies as:
---reducing inequitiy (taxes mentioned above)
--shorter work week
--deter automation where only marginal cost-benefits are acheived
--resource taxes to be used to fund sustainable development creating
jobs
(The only problem I see with this is there is no global body to
implement anything--Melanie's comment)
