Sunday Journal, Washington DC
October 3, 1999
"On the Left"
Robert Naiman, Preamble Center

IMF, WTO: "I Can Change, I Can Change!" 

"People say that I am evil -- they may be right. But 
it's not as if I don't try -- I just screw up, try as 
I might. But I can change, I can change!" So says the 
"Saddam Hussein" character in the movie "South Park." 

This sounds a lot like the rhetoric coming from Washington 
about globalization. Activists have called for a halt 
to plans for expanding the World Trade Organization, 
which has consistently ruled in favor of corporate 
interests at the expense of developing countries. WTO 
and Clinton Administration officials respond by 
saying the new round will be a "development round," 
which will in some unexplained way redress the 
devastation caused by forced trade liberalization. 

Now, in a brazen display of "doublespeak," we are 
being told that the International Monetary Fund, an 
institution whose economic policies kill thousands of 
poor children in the developing world each day, has 
suddenly been transformed into an anti-poverty 
organization. The IMF's "Enhanced Structural 
Adjustment Facility," infamous for imposing brutal 
economic austerity policies on the poorest countries 
in the world, is being renamed the "Poverty Reduction 
and Growth Facility." Last week IMF Deputy Managing 
Director Stanley Fischer, in what may have been a 
Freudian slip, referred to the new program as the 
"Poverty and Growth Reduction Facility." And with a 
number of "advocacy groups" cheering them on, the 
Administration and Congress are poised to pass a bill 
sponsored by Representative Leach which would give 
the IMF more US tax dollars and expand its power, 
under the guise of "debt relief for the poorest 
countries."

Of course we should all support reforming unjust 
institutions, unless they're incapable of being 
reformed. What we have to be on our guard against, 
though, is attempts to put "old wine in new bottles" 
by dressing up the same old unjust policies in fancy 
new rhetoric. There's never a shortage of policy 
wonks to spin proposals about "new global financial 
architecture," "civil society" and other globaloney. 
Indeed, this is the sort of thing that foundations 
love to give money for, because they can claim 
they're doing something about an issue without 
actually challenging the privileges of the powerful. 

And the word "reform" itself has become more than a 
little debased. When the IMF and the World Bank force 
a country to cut wages, lay off workers, produce for 
export instead of the needs of their own people, and 
sell off public property to cronies for less than its 
value, that's called "economic reform."

We need a reality check. What's the likelihood that 
policymakers who pursue policies that hurt workers 
and poor people at home are going to pursue policies 
that help workers and poor people abroad? Clinton 
abolished the New Deal guarantee that poor families 
would have income and called it "welfare reform," 
thus exacerbating poverty in the United States. Yet 
we're supposed to believe that Clinton's IMF is going 
to encourage other countries to pursue policies to 
reduce poverty.

You don't have to leave the United States to see that 
our government's efforts to "reform" globalization 
are a cruel joke. The Commonwealth of the Northern 
Mariana Islands (CNMI), a U.S. protectorate in the 
Pacific (closer to the Philippines than to Hawaii), 
is allowed to set its own minimum wage and 
immigration policies. As a result of the lack of 
federal government oversight, garment manufacturers 
have been able to set up sweatshops there in which 
indentured workers from China toil all day behind 
barbed wire. ABC News found that pregnant garment 
workers there are "forced to have abortions to keep 
their jobs." Yet garment manufacturers are allowed to 
sew "Made in the USA" labels into clothes produced by 
this slave labor. You might think that if you 
purchased a garment with a "Made in USA" label, you'd 
could assume that workers who produced it got paid 
the federal minimum wage and had their rights 
respected. You’d be wrong. Why should the same 
federal officials who won't enforce our own laws to 
protect workers who live under the American flag be 
trusted to protect the rights of workers overseas 
through the corporate-controlled WTO?

The next time you hear someone go on about "reforming 
globalization," "greening" the WTO, or turning the 
IMF into an anti-poverty organization, hang onto your 
wallet. Expanding the power of organizations 
controlled by multinational corporations isn't going 
to help workers in poor countries -- and it isn't 
going to help workers here, either.

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Robert Naiman <[EMAIL PROTECTED]>
Preamble Center
1737 21st NW
Washington, DC 20009
phone: 202-265-3263 x277
fax:   202-265-3647
http://www.preamble.org/
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