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Globalization of trade hurts the worldës poor
Tuesday, 30 January 2007 14:25
Mark West
Globalization is the enemy of the people.

No doubt, there are ways to express that idea that arenët so straightforward, or so at odds with the current orthodoxy.

At its heart, however, globalization is the idea that money ÇƒÓ capital ÇƒÓ should be able to go where it wants and do as it pleases. Money is visualized as some sort of force of nature, like the wind, which blows where it will. Of course, money is no such thing; capital is unnatural, a creation, the tool of the wealthy, and it goes not wherever it wants but where it is commanded to go by its wealthy masters. And the suffering that globalization causes isnët a natural phenomenon, either; it is the result of the greed of the very wealthy.


Globalization is the force that brings Wal-Mart to communities, with a long-term loss of jobs. Itës the force that leads American firms to move jobs to places where the pay is low, without regard for the economic outcomes for the United States, the environmental outcomes for the less-developed nations, or the social outcomes for anyone.

Some liberal commentators, people who have spent their whole lives trying to better the state of the poor, have suggested that despite its increasingly disastrous effects upon the American population, globalization might be a good thing, because it would lead to a net transfer of wealth from America to other countries.

If globalization worked to benefit those in the Third World, it might be that it would be a burden worth the bearing for those of us in the wealthier nations. But a recent interview with Vandana Shiva in The Sun magazine suggested that globalization is no better for the people of less-developed countries than it is for the rest of us.


Under the protective covering of the world ideological shift toward the celebration of the brutality of the free market, businesses have moved into the less-developed world, persuading the World Trade Organization and other trans-governmental agencies to remove the protectionist legislation that defended the poor and the weak.


As a result, there are still food surpluses in India, as there have been at many times in the past; but now the government no longer provides subsidies to make that food affordable, and, according to Shiva, the grain is being sold to American concerns at substantially less than the price which the peasants would have paid for it.


Genetically engineered cotton crops have had substantially lower yields in India than the crops that were previously used; but American firms have patented seeds and the genetic material, going so far in some cases as to make it illegal to save or to sell seed. And pressures from international purchases have meant that onion prices in India have gone from three rupees to a hundred rupees per kilogram in the last five years.


The gleaming Microsoft factories that corporate shills like Thomas Friedman celebrate are few and far between; but the daily transfer of wealth from rich to poor, from the peasantry to the elite, continues apace in India and throughout the world. But, as usual, it is only those who benefit from the ǃÚnew world orderë who get a voice in the world press.


Global trade and agreements reducing "barriers to trade" have fundamentally harmed the poor by dismantling the framework of legal barriers that protected them from the rapacities of laissez-faire. We can only hope that with the change of power in Washington will come some insight into the devastation free trade brings to communities, both here and in developing nations ÇƒÓ and some compassion for the suffering of those who are not wealthy and powerful.

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Mark West is a professor of mass communications at UNC Asheville.
 



 


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