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Open letter: "The Paradox of Anti-Globalisation"
Category: Press Releases by the Belgian EU Presidency
Description: - Open letter -
The Paradox of Anti-globalisation
By Guy Verhofstadt, Prime Minister of Belgium and the current President of the European Union, in which capacity he attended the recent G7/G8 summit in Genoa. This open letter gives his view of the events that took place in Genoa. It includes a personal proposal for reviewing the way in which G8 meetings are organised. An international meeting to discuss the contents of this open letter will be held in the auditorium of the University of Ghent (Belgium) on 30 October 2001.
A message to the anti-globalisation protesters,
In Seattle, Gothenburg and Genoa tens of thousands of people took to the streets to express their views. A real breath of fresh air in this post-ideological age. If only there had not been all that meaningless violence we could almost have applauded them. Anti- globalisation protests are a welcome crosscurrent at a time when political life has become rather dull, sterile and technocratic. Indeed, this crosscurrent is good for democracy. But what is your actual message? Do you espouse the views of the 'Black Block', which violently opposes any form of private property? Or perhaps your views are better represented by the 'Slow Food' campaign, a mundane club that spreads chic pamphlets invariably stressing the importance of eating correct food in the better restaurants?
What is suddenly so wrong with globalisation? Until recently even progressive intellectuals were singing the praises of a worldwide market, which, they said, would bring prosperity and well-being to countries where before there was only poverty and decline. And they were right. Experience has shown that the per capita income of a country's population rises by 1% for every 1% that it opens up its economy. This explains the wealth of Singapore, which contrasts so sharply with the poverty of a closed economy such as Myanmar. In short, prior to Seattle, globalisation was not a sin but a blessing for mankind. This was in stark contrast to the dissenting voices on the far right that bemoaned the loss of identity in a globalised world. But ever since Seattle, you have been shunning globalism as if it were a modern-day form of bubonic plague, sowing poverty and ruin.
Of course, globalisation, as a movement that disregards national borders, can easily deteriorate into a form of “selfishness without frontiers”. For the rich West, free trade is naturally something that should be embraced wholeheartedly... as long as it is not in products that can harm Western economies. No sugar from Third World countries. No textiles or manufactured garments from North Africa. In this regard, then, your anti-globalisation protests are well founded. The much vaunted free world trade moves largely in one direction: from the rich Northern countries to the poor South.
But I would also like to point out a number of contradictions in your way of thinking. You oppose American hamburger chains, reject soya that has been genetically modified by multinational corporations, and condemn worldwide brand names that influence buying habits. Many of you feel that everything must return to a small, local scale. We must go back to the local market, to the local community. And yet not when it comes to migration... Then, globalisation suddenly becomes an aim. Large numbers of homeless people drift along the borders of Europe and North America, staring wide-eyed into the shop window of a prosperous society. Millions of illegal immigrants live as homeless pariahs, in pitiful conditions, hoping against hope that somehow they can tap into Western riches. But it is precisely the absence of free trade and investment that drives them to the West in the first place.
Another contradiction resides in the fact that, while opposing globalisation, you strongly urge tolerance towards lifestyle diversity. Surely, we owe the fact that we live in a multicultural and tolerant society to the process of globalisation? I thought that nostalgia for the narrow-minded societies of our forefathers was the sole domain of conservatives who glorify the past, of extreme right- wingers who believe in the superiority of their own race, and of religious fanatics who live and die by the Bible or the Koran. In this way, anti-globalisation protests unwittingly veer dangerously towards extremist, 'populist' right-wing views. The only difference is that you oppose multinationals because of the alleged harm they cause to the South, whereas the extreme right, such as Le Pen in France, condemns multinationals because he wants to retain control over his own economy.
You are asking many of the right questions. But do you have the right answers? Nobody now denies the existence of climate change and global warming. But such issues can only be dealt with through global commitments. Everybody recognises the importance of free world trade for the poorest countries. But this also requires global social and ecological standards. Look at the immoral speculation that preyed on weak currencies such as the Mexican peso and the Malaysian ringit a few years ago. The most effective way of combating this kind of speculation is through the creation of larger monetary zones (another form of globalisation). The prospect of coming up against the dollar or the euro will scare off speculators more than any tax.
I do not think it makes any sense to be unreservedly for or against globalisation. The question is rather how everybody, including the poor, can benefit from the manifest advantages of globalisation without suffering from any of its disadvantages. When can we be sure that globalisation will benefit not only the happy few but also the massed ranks of the Third World's poor?
Again, your concerns as anti-globalists are extremely valid. But to find the right solutions to these valid questions we need more globalisation, not less. That was exactly the point of James Tobin. That is the paradox of anti-globalisation. Globalisation can, after all, serve the cause of good just as much as it can serve the cause of evil. What we need is a global ethical approach to the environment, labour relations and monetary policy. In other words, the challenge that we are faced with today is not how to thwart globalisation but instead how to give it an ethical foundation. I would call this 'ethical globalisation', a triangle consisting free trade, knowledge and democracy; alternatively, trade, aid and conflict prevention.
Democracy and respect for human rights are the only sustainable ways of avoiding violence and war and of achieving trade and prosperity. The international community has still not managed to impose a worldwide ban on small arms or to set up a permanent international criminal court.
Moreover, increased aid is needed from the rich West. It is shameful that more than 1.2 billion people still do not have access to medical care or a decent education. Trade alone will not be enough to solve the problems of the least developed nations. Even with more trade there is still a need for increased development cooperation to build harbours and roads, schools and hospitals, and to construct a stable legal system.
Finally, world trade needs to be further liberalised. If all world markets were fully opened up to competition then the total income of developing countries would be boosted by $700 billion per year, or 14 times the total development aid that they currently receive. No more dumping of Western agricultural surpluses on Third World markets. No more exceptions for bananas, rice or sugar. The only trade ban would be on weapons. 'Everything but arms' must be the motto of all future negotiating rounds of the World Trade Organisation.
More free trade, more democracy, greater respect for human rights and more development aid: is that enough to make ethical globalisation a reality? Certainly not! What is missing is a powerful instrument to enforce it. We need a global political body that is as powerful as the globalised market in which we already live. The G8 of the rich countries must be replaced by a G8 of existing regional partnerships. A G8 where the South is given an important and deserved place at the table to ensure that the globalisation of the economy is headed in the right direction. In other words, we need to create a forum where the leading continental partnerships can all speak on an equal footing: the European Union, the African Union, Mercosur, ASEAN, the North American Free Trade Agreement, etc.
This new G8 can and must be a place where binding agreements on global ethical standards on working conditions, intellectual property and good governance can be entered into. At the same time, this renewed G8 could lay down the guidelines and give the necessary encouragement to the major international organisations and negotiating bodies such as the WTO, the World Bank and Kyoto. This G8 would no longer be dominated exclusively by the big wealthy countries; instead, everyone in our world community would be represented. In this way it could provide a forceful answer to global problems such as international trafficking in human beings.
We saw such a process emerge in an embryonic stage at the Kyoto Protocol negotiations in Bonn, where finally a breakthrough was made as a result of agreements between the Umbrella Group, the European Union and the group of less developed countries, against the wishes of the greatest power on earth, the United States of America.
But of course we do not need to wait for the first meeting of the new G8 to begin the process of ethical globalism. We could start in our own European backyard. Why shouldn’t we systematically test every decision made in the European Union for its impact on the weakest societies on earth? Does it widen or narrow the gulf between the rich Northern countries and the poor South? What is the result of this decision - or of the lack of a decision - on worldwide ecological problems? And why shouldn’t we call for an opinion from a high-level non-European body? Because in this respect you are absolutely right. Even when we are driven by the very best intentions, it is only natural for us to be more concerned with the interests of a multinational oil company or of the European sugar beet farmers than with the fate of the Ogoni people in the Niger Delta or the meagre incomes of workers on sugar cane plantations in Costa Rica.
Guy VERHOFSTADT globalisation@premier.fed.be Date: 26/09/2001