Globalization is big word.
You hear it a lot, but few take the time to understand it. So bear down.
Read closely (this second of four posts), and I bet you get it.
At the heart of economic globalization is the freedom of
foreign investment from regulation, a freedom worked out by bilateral and
multilateral national agreements. So
goods, services and capital (think money), that is, trade and investment, flow
ever more easily across international borders.
But in order to ease that flow increasingly democracy – that is, the
informed will and action of the people –
gives way to unaccountable economic power.
More and more significant decisions about life are removed from public
discussion and influence and left to an elite few. A growing portion of the global economy is
now planned and directed in ways that are unaccountable to the public as a
whole. People elect governments, but not
corporations. So decisions made in a
boardroom in New York or London
may affect the people of, say, Bangladesh
a whole lot more than those made by the elected government of Bangladesh .
And increasingly goods and services needed by everyone (such
as water, electricity and education) are privatized; that is, they are owned by
corporations and individuals usually not accountable to the people most
impacted. For instance, a foreign
corporation can purchase the water supply of some impoverished South American
country and export it at whatever price the market will bear to California . Meanwhile, more and more life forms (for
example, genetic materials or seed strains developed over centuries by
indigenous people) and life experiences (experiences related to spiritual
growth and happiness) are being commodified and marketed. Western consumer-oriented ways of life spread
around the world. And money is
increasingly commodified; that is, more and more wealth is created by
speculative trade in money for short-term gain rather than by trade in goods
and services and rather than by investment in long-term production of goods and
services. So sudden shifts in capital
may dramatically affect the well-being of millions.
O.K. that was the hard part.
We can ease up just a bit. But
just a bit because perhaps you have detected that there may be some real
problems associated with globalization.
And there are. Local and regional
systems of agriculture and other production may be crippled. Transnational corporations that grow beans,
beef and bananas for North American tables may dislocate many Central American
farmers from their family plots. And who
knows where the dislocated may show up.
Then there’s the issue of accountability as democratic
political power gives way to unaccountable economic power in the hands of
relatively few economic players. There
are also issues of sustainability as short-sighted economic interests assault the
Earth’s life-support system. And there
is the matter of the richer nations dictating inequitable terms of trade to
poorer nations.
Having said all this, I am still optimistic. More to the point, because I am Christian, I
am hopeful. But do I have reason to be?