Globalization

Globalization is the spreading of corporate capitalism around the world.

Globalization provides jobs. Countries, with a population that will work for low wages, attract multinational corporations. If a country builds the corporation a factory, allows them to pollute, and keeps the workers from any work stoppages, then the corporation will move to that country. The country must set up the necessary infrastructure that a multinational corporation needs, like warehouses, roads, and cargo docks with all the machinery for international shipping. The country will also need to have a well-equipped military, in order to insure that workers stay in line. All of the huge costs of the infrastructure, as well as all the expensive military equipment, are paid for with billion dollar loans from the World Bank, at a high interest rate. All it takes to get the rulers to sign for the high interest rate is a bribe or the knowledge that nobody will check on how the money is spent. On television and in the newspapers, everyone talks about how wonderful an arrangement this is. People are working, products are being produced at a low cost, and capitalism is a success. And, for a few years, it does seem that way.

The problem is that low wages produce little money for the workers, and they start to become unhappy working 12-hour days under terrible conditions. Since the workers make so little, the government gets little in taxes, so they have trouble paying the huge interest on the loan and the cost of their well-equipped military. The World Bank comes in, and tells the rulers that they need to have more austerity measures (collect more taxes, spend less for services). This makes the people angry, so the rulers start to use their well-equipped military to control and oppress the people. On television and in the newspapers, reporters tell how communist dissidents are causing problems (see Neo-cons, Propaganda).

As the people become more frustrated and angry, the military may have to be increased. Of course, this means $20 million in loans: $15 million in more military equipment and $5 million for the ruler to stash. The military is now even more oppressive. Protestors are arrested, beaten up or shot. Perhaps the workers burn down some buildings or blow up some cars. On television and in the newspapers, everyone talks about how these communist, or Al Qaeda terrorists, are wreaking the country.

This is a pattern that has repeated itself so often that it would be difficult to find exceptions. The reason that it happens so often is that the World Bank knows the pattern, and so they plan on it. Most of South America and Indonesia are examples of this pattern.

But why would the World Bank have this practice? Because it is the multinational corporations who will build the factories, warehouses, roads, and shipping docks, making hundreds of millions. It is the multinational military/industrial complex that will sell the expensive military equipment, making hundreds of millions. It is the multinational corporation in the country who will only have to pay workers fifty cents an hour, so they will be making tens of millions on the products they sell. It is the multinational financial market that will make hundreds of millions on the interest for the loans. A country with cheap labor is like a gold mine for all the multinational corporations. To keep it working, all they have to do is make sure they can continue doing it. That is what the World Trade Organization and the World Bank do. They make sure it keeps happening.

Many think that this corporate capitalism model worked in Japan, so it should work in other countries. Japan was different in many ways. The most important was that all of the investments went into industry because Japan wasn’t allowed to have a military. That meant 100% went in to rebuilding the infrastructure, since all of the money was monitored. Japan built factories more modern than other countries, so they were able to make new products. They created products that were cheaper, but gradually became as good or better than their competitors. They were able to sell everything they could manufacture since there weren’t as many countries with competing products. Also, Japan is a model that capitalists want to hold up to the world, so the U.S. has helped Japan in ways that protected that image (see Capitalism).

Capitalism does produce a nice lifestyle for first world countries. Most of the third world wants to be like the U.S., but they don’t realize that when they try to become a capitalistic country, they are likely to experience greater oppression in the future. To prop up the capitalistic standard of living, first world countries exploit and manipulate third world nations, often at the expense of tens of thousands of its citizens. We need to try to wean ourselves from that habit. Getting rid of greed may help (see Greed).

Since the U.S. has only 5% of the world’s population but consumes 30% of the world’s resources, clearly our lifestyle cannot be repeated throughout the world. As all the other countries modernize, they will need a larger portion of the global energy pie. The Kyoto Accord was to reduce and restrict greenhouse gases in order slow global warming. Because the U.S., the largest producer of greenhouse gases, refuses to sign, global warming effects will be even more severe (see Ecology). The U.S. must realize that it also must change, looking at a more sustainable way of living, wasting less, conserving more, and recycling everything (see Conservation, Recycling, and Energy). America needs to become a better global citizen.