The Global Economy, GE, is rapidly expanding, like a malignant cancer on the human and natural ecosystem. Investments by wealthy First World, FW, nations in the DEveloping Nations, DENs has been on going for centuries, but has steeply increased in the 1990s.

Spurs to this accelerating growth are many: Advancing technologies of transportation and communication make shipping cheaper. Advancing manufacturing technology makes it easier to move an entire factory anywhere in the world. As Thomas *Friedman declares, "We didn't start it and we can's stop it. We have to adjust to it".[ From Mr. Friedman's PBS TV interview with Charley Rose 4/16/99 discussing his book on GE, *THE LEXUS AND THE OLIVE TREE. See also review in the May 1999 NEW YORKER.] He notes the common view of GE's leader, US, as Capital Of Global Arrogance, COGA. With slight embarrassment he declares himself a "Social Democrat ...y[we must] bring the know-nots and the have-nots into it. But his GEE whiz MOMmy position is inadequate to save the day. Like *Soros and *Wolfensohn, Friedman favors more wealth for the human majority living on less than two dollars per day, but these ICErs have no idea how it can be done, no grasp of culture design.

The rapid Accumulation Of Wealth, AOW, by the MUltiNational Corporations, MUNCs, drives investing institutions to put the money somewhere. The growing AOW tends to lower interest rates and can sometimes lead to inflation, such as the bubble in Japan's real estate prices. But usually these growing technical and financial factors lower prices. Update information is widely available, including *MULTINATIONAL MONITOR, a monthly founded by Ralph *Nader.[ *MULTINATIONAL MONITOR $25/yr from POB 19405, Washington, DC 20036. 202-234-5176, E-mail at monitor@essential.org On line at www.essential.org/monitor/monitor.html ]

In order to attract investments from the wealthy nations, the DNs compete by offering cheaper labor, laxer laws, lower taxes and an assortment of subsidies. The rich elite of these poor nations crave MUNCs money and bid against each other by offering these ENhancements to inVEstment, ENVEs (pronounced `envies', p.298). This growing elite class pursues a COosMopolitan identification with the GLObal COMmunity. They becoming GLOCOMs who travel in luxury and send their children to fancy First World schools.

In order to stabilize DN investments, the FWs lend and spend billions of federal and corporate funds for military and intelligence assistance. These investments are often free `foreign aid', federal loans which are not expect to be repaid, or corporate loans often backed by taxpayer guarantees. Accumulating DN debts increasingly entangle borrowing nations, who can endlessly role-over the debts with more borrowing. The $50b Mexican bail-out of 1990 saved the multinational investors and the wealthy Mexicans, but lowered living standards of the majority for years to come. The Mexican government paid back the loan with a lower interest Japanese loan, benefiting also from the yen/dollar currency rate increase.

Be aware that instability, the 1998 South East Asia financial crisis, can enhance the wealth of those with the cash. Commodities, labor, land, resources, and firms become cheaper. The wealthy take advantage to increase their holdings. Consumers in the first world benefit by lower prices and low inflation while the poor must accept less.[ See PANIC RULES, What is to be Done. on the economy of the World Trade Organization,etc. by Robin Drivel. 1-800-444-1977]

Interest on these debts often exceeds and displaces spending on public health, education, welfare and infrastructure not needed by the investing MUNCs. "Undoubtedly, the flow of funds from the South to the North causes poverty, malnourishment, ill health, and lack of educational opportunity. These consequences make a compelling case for debt relief. But such aid is not a panacea for environmental degradation." The GLOCOMs get richer from this arrangement, but the entire nation bears the debt.

One further contributing to the GE's AOW is the demise of the Soviet Union with its Cold War opposition to what they called "Capitalist IMPerialism", CIMP".

China, still guided by its Communist Party, takes advantage of GE by gradually adjusting with its "market socialism". However, China resists further economic opening by controlling foreign capital keeping its currency unconvertible. The wealthy KMT[ KMT, the Kuo Min Tang is the Chinese Nationalist Party that ruled China since Sun Yat Sen's 1912 revolution, then fled to Taiwan in the 1940's with vast wealth from the mainland and huge subsidies from US. See Ross *Koen's *CHINA LOBBY IN AMERICAN ] Chinese of Hong Kong and Taiwan manage most of the foreign investments on the mainland and also have their traditional influence as the "China Lobby".[ See Ross *Koen's CHINA LOBBY IN AMERICAN POLITICS, censured in the 1960s but now available in the US.] China is less vulnerable to military and intelligence domination because of it has `deterrence'.

One wag mentioned "Capitalism works better under the guidance of the Communist Party." China tries to keep human values over market values, but seems to be failing. The *Hinton's and others explain how dirty economic growth for the rich in cities does not necessarily advance human values. They even tried to put a ceiling on US pharmaceuticals.[ "Chinese State Development Planning Commission is expected to announce price caps on pharmaceutical that will probably drive some multinationals out of the $12b market...." ECONOMIST, 11/7/98.] The Los Angeles Times is quoted in Winter '99 US-CHINA REVIEW as tightening its currency restrictions to reduce the outflow of Chinese capital, estimated at $17 billion. This outflow plus the $17 billion hard currency hoarded in China by the wealthy weakens China's insulation from the speculative attacks that contributed to the Asian financial crisis.

Citing the increasing disorder, secrecy and corruption in the Chinese economy, Thomas L. *Friedman suggests "GLOBULATION" as a nation's internalization of international norms as a solution.[ From *GLOBULATION WILL HELP CHINA, in the 4/21/99 SF Chronicle, from NY Times Service.] He does not notice that this another mode of transfer of power from quantitatively democratic national governments to the CE of the international financial community. GLOBULATION surely increases concentrations of wealth and ecological degradation.

Except for China, only a few small nations still struggle to avoid digestion by GEE: Libya, North Korea, and Cuba. These hapless nations suffer under siege as "rogue nations".[ See *SEA CHANGES, THE NEW CUBAN ECONOMY by Pedro *Monreal in *NACLA Report on Americas March 1999.]

The future bodes well for continued growth and dynamism of GE, promoted by the continuing increase and concentration of wealth and protected by increasing technological, military and intelligence forces. `Competition' compels the poor to work for less, to cede their personal and collective resources to the more advantaged DNs and GLOCOMS. Reversing this trend of concentrating wealth and power seem less likely because of increasing investments in modern military and police facilities. Therefore we can expect the poor to become poorer.

SCENARIOS

The future of humankind's supporting ecosystem looks bad, as it degrades under the onslaught of present GE policies. In spite of the potential for a luxurious life and culture for all humanity in a sustainable ecosystem, the domination of GE brings mostly a gradual depletion of resources, breakdown of ecosystems, destruction of supporting cultural systems. The wealthy need not suffer because technology offers clean air, water, and luxury to all who can buy. The middle economic levels can hang with stressful competitive comfort if the continue to support production and protection. The poorer majority will suffer increasingly in a Malthusian decay.[ From David *Pearce et al. Scientific American, June 1995.]

Futures other than this triumph of the wealthy at the expense of the poor can barely be imagined. Perhaps the GE elite will re-humanize, expand its responsibility, and accept stewardship of humankind and the supporting ecosystem.[ See Aaron *Lynch, *THOUGHT CONTAGION, on how ideas catch on.] Perhaps some subtle change in global corporate law will enable those humans who rule the world to broaden and deepen their responsibility and still keep their jobs. In *Eatwell and Taylors BANKERS WITHOUT BORDERS they modestly suggest the internalization of the external costs of financial disruption and crisis, perhaps by the World Bank, or the IMF, or the Bank for International Settlements, BIS in Basel, or World Economic Forum offshoots. If it gets really bad, the Pentagon can handle it.

Perhaps some `democratic' input will elect leaders who will soften "brutal capitalism"[ This powerfully descriptive term was used in 1998 by Pope John Paul II, and many others.] from corporate imperatives toward more human values. This seems unlikely since if the majority did rule, they might well continue to glory in their victory, to enjoy an occasional bombing, to luxuriate in their conspicuous consumption, to deny or ignore any interests beyond what they consider their own.

In another scenario, the DW leaders might somehow evade the pressures of GE's intelligence and financial guidance to advance the welfare of their own people at the expense of the wealthy. A "debt cartel" in Latin America might lessen their burden and free them to create a second world economy.

In Africa, leaders such as Mandela and Kabila might unify to increase their take on the vast wealth of their regions. In response to such actions, the Free World would be hard put to fight them all. The US trained Tutsi army centered in Uganda controls much of central Africa with US operative Jonas Savimbi occupying much of the southern central Africa. The French and Belgiums compete with the Americans and British for favors, contracts and controls in this complex of neo-colonial conflicts. In 1999, the British and French operatives met to cooperate and coordinate against increasing US domination. Throughout this caldron of competition, thousands are killed, millions suffer poverty and chaos while the MUNCs continue their expansion in these Developing Nations.[ *TRIUMPH OF EVIL by Steve *Bradshaw, depicts the genocide in Uganda in 1998, hinting at French-Belgian instigation and US-British complicity. PBS TV FRONTLINE, 1999.]

The military is increasing deterred on many levels by its own advancing technology. Nuking Nairobi or Mexico City seems an inappropriate tactic. Even simple operations such as the SIEGE OF MOGADISHU seem ineffective.[ See *AMBUSH IN MOGADISHU, by William *Cran on PBS TV's FRONTLINE.] Continual bombing of Iraq does seem to degrade slow the down and inhibit action and imagination of the world's people.

History suggests that the major war or catastrophe is the only way wealth can be redistributed. Yet, because the modern world has shrunk to a Global community, it seems unlikely that any war could erupt between matched opponents. Wars can continue as the support for the political, diplomatic and intelligence controls of the poorer peoples, as long as none of them gets the bomb.

Russia seems stably unstable. However, anything can happen. Some new government might emerge to deal with the current chaos. The flight of hundreds of billions of dollars from rich Russians into Swiss banks and FN equities might be stopped. With some stress the billions might even be brought back to finance reconstruction. If guilty Russians are actually punished, the prison population will approach that of the United States. But wealthy Russians will fight to protect their freedom and much bloodshed and destruction will surely ensue. As in the 1920's when US sent twenty thousand troops into Russia, aid from the FNs may well be repeated, but in more complicated and elaborate modes. The United Nations and NATO might resist military action but succumb to the opportunity to protect freedom. Russia might also increase the integrity of the present CIS until it resembles the former Soviet Union in scope and power.

Given the rapid evolution of GE, each crisis effects every other and minute fluctuations can produce major changes, systems phenomenon illustrated in LANGUAGE, p.181. In these scenarios, any healthy or sick action can trigger or encourages the others. As the GE increases the stresses of rich against poor and man against nature, the stresses increase. Technology enables increasing control, but can it keep up with increasing tension? Something is apt to break, anything is apt to happen.

Like Nero playing the fiddle while Rome burned, these intelligent, capable, gifted and well financed people spend their time and effort on the destructive nonsense of the Global Economy. The world cornucopia offers resources adequate to provide a good life and high culture for all humanity. Human ingenuity and skill is ample to design, create and manage the Global Good Life. Yet we see incompetence, nonsense, insanity and impending omnicide.

< WORK, D-A Analysis of Jobs and Work

Chapters   Essays

PROGRESSIVE STAGNATION, Best of All Possible Worlds, or Worst >

Copyright © 2024 Earl Williamson. All rights reserved.

Feedback

Last updated Monday, April 9, 2018 05:43 UTC