NoNonsense globalization buying and selling the world, 4 edition

About the author Wayne Ellwood established the North American office of New Internationalist and worked as a coeditor of the magazine until 2010 He has also worked as an associate producer with the groundbreaking BBC television series Global Report and edited the reference book The A-Z of World Development He is also the author of The NoNonsense Guide to Degrowth and Sustainability (2013) He has travelled widely in Asia, Africa and Latin America He lives in Toronto, Canada, where he is an editorial consultant and writer About the New Internationalist New Internationalist is an award-winning, independent media co-operative Our aim is to inform, inspire and empower people to build a fairer, more sustainable planet We publish a global justice magazine and a range of books, both distributed worldwide We have a vibrant online presence and run ethical online shops for our customers and other organizations – Independent media: we’re free to tell it like it is – our only obligation is to our readers and the subjects we cover – Fresh perspectives: our in-depth reporting and analysis provide keen insights, alternative perspectives and positive solutions for today’s critical global justice issues – Global grassroots voices: we actively seek out and work with grassroots writers, bloggers and activists across the globe, enabling unreported (and under-reported) stories to be heard Globalization Buying and selling the world Published in 2015 by New Internationalist Publications Ltd The Old Music Hall 106-108 Cowley Road Oxford OX4 1JE, UK newint.org Fourth edition – completely revised in 2015 Previous editions 2001, 2006, 2010 © Wayne Ellwood The right of Wayne Ellwood to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1998 All rights reserved No part of this book may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without prior permission in writing of the Publisher Cover design: Andrew Smith, asmithcompany.co.uk Series editor: Chris Brazier Series design by Juha Sorsa Printed and bound in Great Britain by Bell & Bain Ltd, Glasgow who hold environmantal accreditation ISO 14001 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog for this book is available from the Library of Congress (ISBN ebook 978-1-78026-238-3) Contents Foreword by John McMurtry Introduction Globalization then and now The colonial roots of globalization Expanding international trade The inefficient magic of the marketplace Enter the free-market fundamentalists The East Asian financial crisis The Bretton Woods trio Learning the lessons of the Great Depression Keynesian economics The International Monetary Fund (IMF) The World Bank GATT and the World Trade Organization Debt and structural adjustment The idea of a new international economic order The origins of the debt crisis Dictator kickbacks and ‘odious debt’ Structural adjustment The limited scope of debt relief The corporate century This KFC world: corporations and culture Corporate merger mania Pushing privatization The problem with foreign direct investment Impacts of NAFTA The dangers of overproduction Global casino The explosion of foreign-exchange transactions Financial crises proliferate The Asian meltdown Why capital controls offer protection Latin American responses Poverty, the environment and the market The price of ignoring the environment How boosting exports can backfire Spiralling inequality The tyranny of tax havens and the super-rich How globalization can derail development Redesigning the global economy The cost of growth in China and India Another world is possible Abolish the Bretton Woods institutions Support a tax on financial speculation Control capital for the public good Index Foreword This is a wide-lensed and well-documented analysis of ‘globalization’ that lives up to its title The years since its first publication in 2001 have confirmed and strengthened the original rich evidence of a totalizing depredation of the lives of the majority of the world’s people and their life-support systems What readers find in this fully updated mini-classic is a rich spectrum of documented facts showing trends of degeneration of societies and life conditions that media and states fail to recognize and respond to While their stories and policies remain as systemically disconnected from collective human needs as 15 years ago, this work provides a valuable record of the life-blind system’s march through the world Beginning with Cristóbal Colón’s search for new riches turning to genocides, through the USdominated Bretton Woods and IMF financial framework to the borderless corporate takeover of the world economy as a global casino, and beyond that to the life-and-death issues of poverty and the environment that the ruling economic paradigm blinkers out, the basic facts are held intact through the pressures of an era without a collective memory of its past The last 35 years of the great depredation of human and natural life systems on Earth have brought no significant policies to prevent the runaway transnational money machine driving the devastation Even the overdue adaptations recommended in the final chapter remain closed out of international policy discussion An accessibly impartial study like this is essential for a minimally informed understanding of these degenerate trends We cannot sustain humanity or life on Earth by a ceaseless repetition of slogans of ‘growth’, ‘market reforms’, and ‘we must compete harder’ as solutions to collapsing lives and life conditions of the rising majority of the world The equivalent of a price of a cup coffee in increase of per-capita income is not being ‘lifted out of poverty’ The master ideal of a ‘selfregulating global free market’ is absurd when tens of thousands of new corporate trade rules backed by financial embargo and armed force covertly institute the private demands of global money monoliths – with elected legislatures made subordinate Governments now compete to enact the prescribed agenda, or they disappear Deregulated global capital floods elsewhere in nanoseconds Dissenting politicians, parties and policies are ignored or pilloried in the press This second-order reality of ‘buying and selling the world’ remains unspeakable to name, but this book reports basic life consequences tracked over a generation which are generally the opposite of ‘a rising tide lifting all boats’ and ‘new freedom and prosperity for people across the world’ Paradigm shift can only be achieved by re-grounding in the collective life capital of societies and ecosystems Yet both continue to be stripped and despoiled by a runaway, private, money-sequence system multiplying itself as the final goal of humanity and the Earth This system now spans all borders Globalization: Buying and Selling the World tracks how the most powerful empire in history yields ever more riches to the richest – while hollowing out human and natural life systems John McMurtry FRSC, Professor Emeritus University of Guelph, Ontario, Canada Introduction When the first edition of this book was published 15 years ago, I described globalization as ‘the most talked-about and perhaps the least understood concept of the new millennium’ Much has changed in the intervening years Globalization was a new buzzword back then Today, libraries groan with thousands of books on the subject and a simple internet search will produce millions of ‘hits’ Everyone has their own idea of what globalization means, even though the more closely we examine the concept the more ephemeral it gets Here’s one thing we know: the world we live in feels smaller There is no doubt the digital age has brought us all closer together Yet the new wired world is also more dangerous and divided The fallout is nowhere more evident than in the devastating collapse of the global economy that began in 2008 and whose repercussions are still with us It is paradoxical that, as national and regional economies become more intertwined, the idea of a global community with shared goals and values appears to be fading Before the economic crisis came the murderous attacks in New York and Washington on September 11, 2001 – a day that changed the course of world history and underlined the increasing contradictions of a globalized world In response to those events, the US and its allies launched a protracted ‘war on terror’ which flouted both domestic and international law This conflict has ebbed and flowed over the intervening years But it has not abated Attacks by deluded jihadists and freelance terrorists in France, Britain, Denmark and other Western countries have inflated the fear factor, paving the way for anti-terror legislation that both threatens civil liberties and erodes democratic freedoms As a consequence, attempts to address the root causes of violence – poverty, political exclusion, alienation, anomie and growing inequality – have been largely shelved Since 2008 the wars in Iraq, Afghanistan, Pakistan, and more recently in Syria, plus the simmering conflict in Israel/Palestine, have been fought against a backdrop of global economic collapse Despite thousands of dead, millions of refugees and billions of dollars wasted on weaponry, the situation in the Middle East remains unresolved After more than a decade of fighting in Afghanistan, warlords still rule most of the country The isolated regime in Kabul is hobbled by corruption and survives only with the help of Western arms and aid money In Iraq and Syria the extremist Sunni group, Islamic State, is determined to carve an independent Islamist caliphate out of those war-ravaged nations We are now living through the most serious economic crisis since the Great Depression of the 1930s The link to globalization, specifically to the worldwide deregulation of the finance and banking sectors, is visible to all (The history of this shift to a ‘global casino’ built on lax government regulation of these industries is outlined in Chapter 5.) Facing catastrophe, governments stepped into the breach with billions in taxpayer funds to bail out the banks and keep the credit system solvent They also ploughed billions into classic Keynesian stimulus packages to fend off economic collapse Even once-powerful symbols of the industrial era like General Motors (GM) queued up for government handouts (GM received $50 billion from Washington in return for part-ownership of the company) AIG, the largest insurance company in the US, swallowed more than $180 billion in public services But, in the words of Keynes, we should ‘minimize’ rather than ‘maximize economic entanglement among nations.’ Co-operation must be the watchword of any new regional institutions A single-minded, inflexible approach based on market fundamentalism will exacerbate the instability and inequality of the global market By scrapping the Bretton Woods trio – the IMF, the World Bank and the WTO – we can start afresh to build new institutions with a moral purpose and a democratic mandate which will work to the benefit of the majority of the world’s citizens Support a tax on financial speculation Unregulated investment has turned the global economy into a casino where speculators search for instant profits, ignoring the human consequences of their actions Nowhere was this more evident than in the world-shaking financial crisis which erupted in 2008 The combination of sub-prime mortgages, speculation and greed by banks, insurance companies and investment firms triggered the most severe economic downturn since the Great Depression By March 2009 more than $50 trillion of assets were wiped out, including $7 trillion in US stock-market wealth and $6 trillion in US housing wealth.8 Currency markets can be useful – taking the worry out of international buying and selling by figuring out today what a future purchase will cost But it’s estimated that just 2-4 per cent of currency trading has to with real market exchanges The rest is pure speculation, making money off money A tax on speculative dealings in foreign currencies, shares and other securities would put people ahead of profits In 1978, the Nobel Prize-winning economist James Tobin proposed that a small worldwide tariff (less than half of one per cent) be levied by all major countries on foreign-exchange transactions in order to ‘throw some sand in the wheels’ of speculative flows The tax would have no effect on serious long-term investors A tax of 05 per cent would dampen speculation while stabilizing global markets and capturing much-needed funds for global development According to UNCTAD, daily foreign-exchange trading now tops $4 trillion, while only one per cent of foreign exchange trading is actually related to merchandise trade Even if the trade fell by 25 per cent after a transaction tax was imposed, it would still yield billions in revenues for the public purse There is a significant movement to back such a tax France and Germany have signalled support and in early 2010 more than 350 economists urged the G20 governments to adopt the so-called ‘Robin Hood’ tax as ‘a matter of urgency’ The tax has won widespread support from charities, environmental groups, trade unions, celebrities, financiers, religious leaders and even a few politicians Columbia University economist Jeffrey Sachs says: ‘The transaction tax is technically feasible and morally essential to repair the mess made by the banks.’ The goal is to dampen speculation and to raise funds to support global development – a rare opportunity to capture the enormous wealth of an untaxed sector and redirect it towards the public good At this point the main barrier is not technical, it’s political The tax is seen as a threat by the financial community and has met with stiff resistance by a sector with massive political clout The very idea of putting people ahead of markets challenges the foundations of the current global economic model and those who control it Control capital for the public good The world was a heartbeat away from complete economic collapse in 2008 Only a multi-billiondollar bailout by national governments helped stave off disaster Globalization – the freewheeling era of unregulated capital flows and free markets – brought us to the brink And we will bear the social and psychological scars for years to come The costs of the crisis have been huge: industries have been shuttered while trade has plummeted and unemployment has spiked Social services have been slashed in the wake of government budget cuts while cynical politicians stir up anti-immigrant bigotry Renewed recession is still a looming threat In countries like Iceland and Ireland the bailouts of the banks cost more than two-and-a-half times the national income And governments everywhere are faced with massive deficits which may haunt them for decades Memories are short: the deficit hawks warn that we will all have to tighten our belts to pay for the malfeasance of the financial community But we must not forget what caused the crisis in the first place: a globalized financial system which was unaccountable, unregulated and driven by greed Now is the time for a clean start We have the greatest opportunity since the Great Depression of the 1930s to restructure global economic relations in a more democratic and sustainable way Here are some brief notes on alternative strategies to economic globalization that could take us in a new direction Regulate the financial system Capital needs to be used as an instrument of development, not as a tool for turning a quick profit at the expense of people and the Earth Democratic control of capital means strict regulation of banks and investment firms They should not be in the business of gambling Close tax havens They serve no useful purpose except to help corporations hide their profits and to make rich individuals even richer They should be closed immediately and international rules should be put in place to allow tax officials in all countries to exchange financial information and to end banking secrecy Break up the big banks If they’re too big to fail, they’re too big Period After the meltdown of 2008, governments in Britain, the US and elsewhere became part-owners of some of the biggest banks and insurance companies But the crash also spawned even larger banks as ‘winners’ swallowed ‘losers’ The big banks should be broken into smaller units so that if they fail they don’t threaten the entire system At the moment their gambling is risk-free; if they lose, taxpayers pick up the tab Fix foreign investment Foreign investment should be welcome only if social obligations are met; governments should be able to restrict the repatriation of profits Governments should also have the right to require corporations, both foreign and domestic, to meet basic social obligations and development priorities such as labor standards, job quotas, environmental safeguards and social-security contributions Free trade should not override the democratic will of the electorate Promote public enterprise Governments have a responsibility to use tax revenues for protecting the ‘commons’ through public investments These could include: exercising public ownership over key sectors of the economy; establishing social programs and public services; safeguarding ecologically sensitive areas; and protecting cultural heritage People before profits A foreign corporation should not be able to demand compensation for an environmental law that placed a quota on the export of a nonrenewable resource or a health ban on the sale of toxic substances Nor should a foreign company claim compensation for loss of future profits because government actions prevent a planned investment from going ahead Go local The export-oriented model needs to be jettisoned and free trade corralled The United States cannot continue as ‘consumer of last resort’ for global exports Countries need to redirect production towards domestic needs Trade policy, including tariffs and quotas, should be used to protect the local economy and to boost domestic manufacturing This will both strengthen community bonds and benefit the environment Support fair trade ‘Max Havelaar’, the first fair-trade initiative, was launched in Holland in 1988 The name was taken from a fictional character who had opposed the exploitation of coffee pickers in Dutch colonies In 1997, the Fairtrade Labelling Organizations International (FLO) brought Max Havelaar together with counterparts in other countries Now known as Fairtrade International, the organization includes three producer networks, an independent certification body and 25 fair-trade organizations in Europe, Japan, North America, Mexico, Australia and New Zealand/Aotearoa Meanwhile the World Fair Trade Organization gathers together organizations all over the world that demonstrate 100-per-cent commitment to fair trade in all their business activities and subscribe to a set of key principles It’s a stunning achievement that producer networks in Africa, Latin America and Asia now represent nearly two million farmers in more than 70 countries Compared with conventional trading structures, these Alternative Trade Organizations offer higher returns to producers in the developing world through direct trade and fair prices The fairtrade movement is a response to a global trading system that is both unjust and exploitative – global trading rules are rigged to benefit the rich and marginalize the poor Fixing the global system will take major institutional changes and a determined campaign Unregulated trade allows corporations to pit workers against each another, to reduce the bargaining strength of trade unions, to strip away benefits, to ignore dangerous working conditions and to reduce wages Instead, trade agreements must bolster the rights of working people by promoting labor rights – including the freedom to form trade unions and bargain collectively Free trade is a social issue as well as an economic one To attract investors, countries compete to lower costs That can trigger a ‘race to the bottom’ where job-hungry nations offer cheap labor, weak environmental laws, lax health-and-safety standards or reduced social services Governments must have the right to regulate foreign investment to protect their citizens and to link investment to national development priorities Nations should have the power to establish and defend intellectual property rules that protect the interests of their citizens Trade agreements must guarantee access to essential drugs, prohibit the erosion of traditional cultures and protect indigenous knowledge and biodiversity If democracy is to have meaning, citizens must help to formulate global trade rules These agreements must promote civil and political rights as well as the social, cultural, economic and environmental rights of peoples and communities In the meantime, the fair-trade movement provides a chance to learn about the blatant unfairness of the global trading system And to set standards that could redefine global trade to include social and environmental considerations State of the World 2006, Worldwatch Institute, WW Norton, New York, 2006 Edward Wong, ‘Survey in China Shows a Wide Gap in Income’, New York Times , 19 Jul 2013 Dexter Roberts, ‘Workers Continue to Strike at Nike and Adidas Supplier in Southern China’, businessweek.com, 17 Apr 2014 ‘Downside up’, New Internationalist, No 430, Mar 2010 Branko Milanovic, ‘Winners of globalization: The rich and the Chinese middle class Losers: the American middle class’, The World Post, 21 Jan 2014 Michael Hiltzik, ‘US income inequality is bad, but wealth inequality is a bigger problem’, Los Angeles Times, 24 Oct 2014 Walden Bello, ‘Reflections of a Filipino MP’, New Internationalist, No 430, Mar 2010 John Bellamy Foster, ‘The Age of Monopoly-Finance Capital’, Monthly Review, Vol 61, No 9, Feb 2010 Index Page numbers in bold refer to main subjects of boxed text Adidas 146 Afghanistan 10, 39 Africa, sub-Saharan 146 African Development Fund 61 aid, foreign 48, 50, 78 AIG 10 Airbus 22 Algeria 48, 49 America Online 71 American Airlines 71 Americas Indian populations 19 Angola 63 APEC see Asia Pacific Economic Cooperation Arcelor SA 71 Argentina 45, 51, 55, 60, 65, 99, 112-15, 116, 125, 150, 151 arms trade 54 Aruba 99 Asia Pacific Economic Cooperation (APEC) 152 Asian Development Bank 108, 146 Asian financial crisis 26-9, 99, 101-8 austerity 58, 65, 142 Australia 17, 30, 33, 77, 82, 88, 128, 157 Austria 24, 72 Ayres, Robert 121 Bahamas 15, 135 Baker, James 58 Baker Plan 58 Ban Ki-moon 128 Bangkok International Banking Facility (BIBF) 102-3 Bangladesh 23, 70, 140 bank downsizing 157 Bank of America 70 Bank for International Settlements (BIS) 94, 97, 107 bankruptcies 27, 61, 105, 106 Barber, Benjamin 70 Barlow, Maude 45, 88 Barshefsky, Charlene 151 BBC 127 Belarus 60 Belgium 17 Bello, Walden 97, 102, 150 Benin 44 Berkshire Hathaway 70, 71, 73 Bermuda 135 Bhagwati, Jagdish 96 Bhutan 39 BIBF see Bangkok International Banking Facility biocapacity 120, 122 BIS see Bank for International Settlements Blair, Tony 83 Blumenthal, Irwin 55, 56 Bolivia 19, 65, 142, 150 Bombardier 83 BP 72 Brazil 27, 41, 51, 60, 65, 73, 82, 99, 111, 124-5, 131, 148, 149, 151 Bretton Woods Conference 24, 33-4, 53 Britain 9, 10, 17, 18, 20, 24, 25, 30, 31, 40, 75, 82, 83, 95, 129, 130, 132, 134, 136 British Rail 75 Buffet, Warren 71 Burger King 83 bushmeat crisis 126 Business Week 146 Calderón, Felipe 86 Cambodia 125 Cameroon 126 Canada 17, 19, 29, 30, 33, 42, 44, 45, 77, 82, 83, 87, 88, 128, 131, 136 Canadians for Tax Fairness 136 capital controls 37, 48, 108-10, 155 Capital in the 21st Century 149 capital reversals 26-7, 28, 57, 103 capitalism 20, 30, 34, 70 Cardoso, Fernando 111 Carlyle, Thomas 33, 69 Castro, Fidel 49 Cayman Islands 99, 135 CETA see Comprehensive Economic and Trade Agreement change, possibilities for 147-59 Charter of Economic Rights and Duties of States 48 Chartism 69 Chile 72, 85, 111, 150, 151 China 15, 34, 41, 68, 69, 82, 83, 90, 91, 92, 108, 109, 110, 120-1, 130, 131, 135, 142, 144-6 China Labour Bulletin 146 Chiquita 43 Chossudovsky, Michel 92 Cisco 139 citizens’ movements 56, 60, 62, 89, 139-40, 150, 151 civil unrest 61, 146 see also protests, anti-globalization Clarke, Tony 88 climate change 118-19 Clinton, Bill 115 Coalition of Services Industries 77 Colombia 69, 72 colonialism 7, 16-18, 19, 20, 47, 49, 64, 123, 157 Columbus, Christopher 7, 15-16 Comcast 74 commodities, core 50 commodity supercycle 123 Comoros 39 comparative advantage 18 competitive advantage 41 Comprehensive Economic and Trade Agreement (CETA) 89 contagion effect 103, 110 corporations see transnational corporations corruption 54-6, 79-80, 112, 141 Costco 70 Côte d’Ivoire 126 Cotonou Agreement 44 Crédit Lyonnais 109 Credit Suisse 130 Crothall, Geoffrey 146 Cuba 49, 90 cultural diversity 69, 158 currency devaluation 41, 53, 57, 100, 104, 111 and gold standard 40-1 and US dollar 34, 53, 55, 109, 112 see also foreign exchange Czech Republic 29, 128 debt 52-4, 91, 102-3, 111 cancellation 56, 61, 62, 63, 150 clearance 113 servicing 57, 59-64, 113, 123 and structural adjustment 56-61 deflation 91 Dell 74 democracy 64, 70, 145, 148, 158 Denmark 9, 48, 72, 99 derivatives 106-7 development, impact on 65, 138-43 Development Gap 63 Dimasy, Dimanche 127 Dispute Resolution Body (DRB) 42, 44 Dole 43 Dornbusch, Rudi 109 DRB see Dispute Resolution Body Dunkin Donuts 68 Earth Institute 128 East India Company 71 Ebola crisis 138 ecological footprint 119-22, 122 Economic Policy Institute 85 economic reforms 144-59 The Economist 90, 135 Ecuador 63-4, 65, 150 EDGE see Engaged Donors for Global Equity education 27, 39, 62, 63, 64, 107, 139, 140, 141 Egypt 61, 72 El Salvador 65, 90, 140, 150 Embraer 82 encaje policy 110 Engaged Donors for Global Equity (EDGE) 149 Enron 80, 136 environment, impact on 23, 117-27 Equatorial Guinea 39 equities 107 Ethiopia 39 European Central Bank 65 European Monetary Fund 152 European network on Debt and Development 66 European Union 43, 44, 45, 136, 152 exchange rates see foreign exchange exports, boosting 92, 124-7 extinction crisis 119 Exxon 70, 72 fair trade 157-8 Fairtrade International (FLO) 157 Falklands/Malvinas War 55 Fanon, Frantz 49 FAO see Food and Agriculture Organization FDI see foreign investment: direct financial crises 97-100, 100, 128 1929-30s Great Depression 30, 31, 40, 41, 91, 97 1997-98 East Asian crisis 26-9, 99, 101-8 2007-8 global crisis 18, 25, 57, 61, 65, 73, 86, 92, 99-101, 122, 153, 155 financial markets deregulation 24-5, 94-116, 129 glossary 106-7 stabilization 155-6 Financial Times 128 Finland 72 FLO see Fairtrade International Fonseca, Gustavo 125 Food and Agriculture Organization (FAO) 125 Forbes magazine 70 Ford 90 Ford, Henry 90 Ford Foundation 150 foreign exchange fixed rates 24, 34, 35, 37, 41, 47, 52, 53, 106, 112 floating rates 34, 53, 106 market 107 trading 98 see also currency and speculation foreign investment 66, 80, 94, 156 direct (FDI) 80-4, 97 portfolio (FPI) 98-9 see also Multilateral Agreement on Investment Fox, Vicente 85 FPI see foreign investment: portfolio France 9, 13, 17, 30, 71, 82, 83, 88, 108, 154 free-market fundamentalism 23-5, 65 Free Trade Area of the Americas (FTAA) 151 free trade zones (FTZs) 90 Friedman, Milton 24 Friends of the Earth 126 FTAA see Free Trade Area of the Americas FTZs see free trade zones futures 106 G8 29, 66, 128 G20 128, 154 G77 39 Gandhi, Mohandas K 49 Gates, Bill 82 General Agreement on Tariffs and Trade (GATT) 38-9 General Agreement on Trade in Services (GATS) 39, 77 General Electric 70 General Motors 10 The General Theory of Employment, Interest and Money 32, 95 George, Susan 64, 76 Germany 17, 82, 90, 100, 132, 133, 136, 139, 152, 154 Ghana 49, 58, 62-3, 131 Ghosh, Jayati 147 global arbitrage 97 Global Wealth Report 130 Globalization and its Discontents 129 gold standard 40-1 Goldman Sachs 145 governments see national governments Gramsci, Antonio 84 The Great Transformation 31 Greece 11, 70, 83, 100, 152 Griesa, Thomas 115 Group of 77 49 Guardian 129 Guatemala 19 Guernsey 99 Guess? Inc 85 Guinea 138 Gurría, José Angel 131 Guyana 126 Hanlon, Joseph 55, 56 Hayek, Friedrich 24 healthcare 39, 60, 62, 63, 64, 77-80, 138-9, 140 Heavily Indebted Poor Countries (HIPC) Initiative 61, 62, 63, 78 hedge funds 106, 114, 132 history of globalization 15-29 HJ Heinz 71, 73, 74 Honduras 78, 123 Hong Kong 115, 147 Hu Jintao 147 Hudson Bay Company 70-1 Human Development Report 92, 101, 130 Hungary 140 IBRD see World Bank ICAO see International Civil Aviation Organization Iceland 155 IDA see International Development Association ILO see International Labour Organization IMF see International Monetary Fund IMF: Selling the Environment Short 126 ‘immiserating trade’ 123 import substitution 51 India 41, 49, 66, 80, 82, 83, 120-1, 130, 131, 139, 145-7, 148, 149 indigenous peoples 16, 19, 69, 159 Indonesia 27, 28, 49, 69, 82, 102, 103, 104, 106, 107, 108, 125, 131 inequality, income 130-4, 134, 145-7, 150-1 Institute for Policy Studies 70 Intel 139 Intergovernmental Panel on Climate Change (IPCC) 118 International Bank for Reconstruction and Development (IBRD) see World Bank International Chamber of Commerce 87 International Civil Aviation Organization (ICAO) 21 International Clearing Union 35 International Development Association (IDA) 38, 61 International Finance Corporation 38, 78 International Labour Organization (ILO) 108, 134 International Monetary Fund (IMF) 34-7, 41, 55, 78, 79, 91, 96, 99, 102, 112, 113-4, 115 and Asian financial crisis 26-8, 102, 105-6, 128 and debt 57, 61-4, 113 loan conditionality 56-61, 63, 64, 78, 105, 111, 123, 138, 150 protests against 29, 65, 127-8 replacement proposals 152 International Union for Conservation of Nature 119 Investor Group 74 investor-state dispute settlement (ISDS) 89 investment see foreign investment IPCC see Intergovernmental Panel on Climate Change Iran 47 Iraq 10, 13, 47, 66 Ireland 82, 100, 155 ISDS see investor-state dispute settlement Isle of Man 99 Israel 10 Italy 29, 128, 132, 134 Japan 25, 90, 107, 134, 136, 139, 157 job losses see unemployment Joint Action Forum of Indian People 140 Jubilee 2000/Debt Campaign 56, 60, 62, 150 junk bonds 107 Kantor, Mickey 108 Kazakhstan 100 Kenya 123 Keynes, John Maynard 31-4, 95, 115, 117, 153 KFC 68 Kirchner, Nestor 113, 114 Klebnikov, Paul 79-80 Korten, David 21 Kuwait 47 labor costs 136 Laeven, Luc 99 The Lancet 138 Laos 125 Liberia 39, 138 Liberty Global 74 Libya 142 life expectancy 142 Life Technologies 74 loans 35, 37, 38, 52, 54-6, 113 conditionality 36, 56, 138, 152-3 Loblaw Companies 74 localization 158 Lomé Convention 43 Long Term Capital Management 106 Luxembourg 48, 70, 71, 99, 135 Madagascar 126-7 Maharashtra State Electricity Board 79 Mahathir Mohamad 108 MAI see Multilateral Agreement on Investment Make Poverty History 151 Malaysia 26, 27, 28, 69, 72, 90, 101, 102, 103, 108, 109-10, 115, 126 Malta 99 Malvinas/Falklands War 55 Marcos, Ferdinand 54-5 Marshall, George 37 Marshall Plan 37 Max Havelaar 157 McDonalds 68 McKinsey Global Institute 139 McMurtry, John McNamara, Robert 52 MDRI see Multilateral Debt Relief Initiative Menem, Carlos 55, 112 Merck 71 mergers and acquisitions 70-4, 74, 81, 91, 97 Merkel, Angela 152 Mexico 58, 60, 82, 83, 85, 86, 91, 99, 111, 130, 135, 136, 140-1, 142, 151, 157 MFA see Multi Fibre Arrangement Microsoft 82, 139 Milanovic, Branko 147 Mittal 71 Mobutu, Joseph 55, 56 Monaco 135 Mongolia 100 Morocco 40 mortality 19, 79, 131, 139, 140, 142 Multi Fibre Arrangement (MFA) 40 Multilateral Agreement on Investment (MAI) 87-9 Multilateral Debt Relief Initiative (MDRI) 61, 62 Multilateral Insurance Guarantee Agency 38 Multinational Monitor 79 multinationals see transnational corporations mutual funds 107 NAFTA see North American Free Trade Agreement narcotics trade 136 National Alliance of Peoples’ Movements 139 national governments disempowerment 7, 43, 44, 61, 64, 70, 74-7, 85, 87-9, 96, 109 economic role 32-3, 51, 156-7 financial bailouts by 100, 155 see also public services NBC/Universal 74 neo-liberalism 117 Nepal 147 Netherlands 17, 48, 120, 157 New Deal 33 new international economic order (NIEO) 47, 48, 49, 50 New Zealand/Aotearoa 17, 30, 151, 157 Nicaragua 65, 126, 150 Nigeria 72, 100 Nike 146 Nissan 90 Nixon, Richard 41, 53 Nkrumah, Krame 49 NML Capital 114-5 Non-Aligned Movement 49 Norberg-Hodge, Helena 69 North American Free Trade Agreement (NAFTA) 45, 85-7, 89, 141 Norway 48, 135 Nyerere, Julius 49, 50 Obama, Barack 11, 77, 83, 115 Occupy Wall Street (OWS) 149 odious debt 54-6 OECD 41, 83, 87, 130-1, 132, 135, 136 oil 47, 52, 53, 54, 118 OiSA 74 Omnicom 74 OPEC see Organization of Petroleum Exporting Countries options 107 Organization for Economic Cooperation and Development see OECD Organization of Petroleum Exporting Countries (OPEC) 47, 48, 52-53, 54 overproduction 90-3, 133 OWS see Occupy Wall Street Oxfam 78, 108, 150 Pakistan 10, 66, 69 Palestine 10 Paraguay 65 Peru 60, 61, 85, 151 Petro China 72 Pfizer 71 Philippines 27, 28, 54-5, 60, 72, 90, 102, 103, 104, 125, 150 Piketty, Thomas 149 Pizza Hut 68 Polanyi, Karl 31, 33 Portugal 17 Portugal Telecom 74 poverty 27, 30, 60, 64, 70, 86, 93, 107, 111, 123, 126, 127, 130, 134, 139, 141, 146 Principles of Political Economy and Taxation 18 prisons 77 privatization see public services producer cartels 49 protests, anti-globalization 29, 65-6, 127-30, 140, 148 Public Citizen 84 public services 32, 45, 76, 110, 157-8 funding cuts 58, 60, 61, 101, 137-8 privatization 55, 75-80, 85, 111, 112 see also education; healthcare; prisons and water Publicis Groupe SA 74 Qatar 29 racial scapegoating 108 rainforest destruction 124-7 Reagan, Ronald 24, 132 Rees, William 119 regionally based agencies 152, 153 research and development 82 Rhodes, Cecil 16 Ricardo, David 18 Ricupero, Rubens 39-40 Robin Hood tax see Tobin tax Roosevelt, Franklin D 33 Roy, Arundhati 80 Royal Dutch Shell 72 Russian Federation 27, 79-80, 99, 128, 130 Rwanda 12, 61 Sachs, Jeffrey 61, 128, 154 Saez, Emmanuel 149 São Tomé & Príncipe 39 SAPRI see Structural Adjustment Participatory Review Initiative Saudi Arabia 47, 69 Sauvy, Alfred 24 Schering Plough 71 SDRs see Special Drawing Rights Senegal 131, 140 Shell 72 Shifts and Shocks 129 Shoppers Drug Mart 74 Siemens 82 Sierra Leone 138 Silva, Luis Inácio ‘Lula’ da 150 Sinclair, Scott 89 Singapore 26, 72 Singer, Paul 114-5 slave labor 19 Smith, Adam 20-1 Soros, George 20 Southeast Asian financial crisis see Asian financial crisis South Africa 70, 72 South Korea 26, 27, 28, 90, 99, 103, 104, 105, 108-9, 136 Soviet Union, former 24, 30 see also Russian Federation soy production 124-5 Spain 11, 15, 17, 19, 82, 100 Special Drawing Rights (SDRs) 36 speculation 25, 95-7 taxation 98, 153-5 stages of growth theory 38 stagflation 53 Stiglitz, Joseph 26, 28, 64, 129, 130 stock market indices 107 structural adjustment 56-61, 152-3 Structural Adjustment Participatory Review Initiative (SAPRI) 140 Subway 68 Sudan 39 Summers, Lawrence 115 Summit of the Americas 150 Summit of Non-Aligned Nations 48 swaps 106 Sweden 33, 48, 135 Switzerland 133, 148 Syria 10 Taiwan 26 Tanzania 49, 50, 140 tax havens 99, 135-7, 156 taxes corporate 83-4, 132, 136 personal 132 on speculation 98, 153-5 technology revolution 21, 96 and capital flows 25, 97 tequila effect 111 Thailand 26-7, 28, 60, 72, 99, 101, 102, 103, 104, 106, 108, 125, 126 Thatcher, Margaret 24, 75 Thermo Fisher Scientific 74 Third World 17, 24, 37, 38, 47, 49-51, 53, 56, 58 Thomson Reuters 73 3G Capital 73 Tim Hortons 83 Time-Warner 71 Tobin, James 155 Tobin tax 98, 155-7 Togo 43 Total 82 TPP see Trans-Pacific Partnership trade, international dispute settlement 42-6, 89 expansion 18-20, 22, 69 tariffs 38-9, 41 Trade Justice Campaign 151 trade unions 85, 86, 158 Transatlantic Trade and Investment Partnership (TTIP) 89 transnational corporations 157 empowerment 7, 68-70, 72, 74, 86, 87-9 mergers and acquisitions 70-4, 74, 81, 91, 97 and privatization 75-80 Trans-Pacific Partnership (TPP) 89, 152 transportation of goods 21-3 TTIP see Transatlantic Trade and Investment Partnership Tunisia 148 Turkey 60, 99 Tuvalu 36 Ukraine 100 unemployment 27, 30, 31, 32, 65, 73, 75, 81, 85, 86, 91, 100, 105, 107, 111, 113, 124, 140, 142 unit trusts 107 United Arab Emirates 72 United Kingdom see Britain United Nations 25, 48, 71, 92, 128 Children’s Fund (UNICEF) 108, 150 Conference on Trade and Development (UNCTAD) 39, 49, 81, 89, 99, 122, 123, 154 Development Programme (UNDP) 41, 42, 92, 130, 146 Food and Agriculture Organization (FAO) 125 International Civil Aviation Organization (ICAO) 21 United Parcel Service 45 United States 9, 10, 11, 13, 24, 29, 30, 33, 34, 35, 36, 37, 40, 41, 42, 43, 45, 49, 51, 52, 53, 58, 73, 77, 79, 82, 83, 84, 88, 89, 90, 91, 96, 99, 101, 106, 107, 108, 111, 115, 120, 127, 128, 130, 132, 136, 142, 145, 148, 149, 153, 157 Uruguay 65, 150 ‘Uruguay Round’ 39 US Airways 71 Valencia, Fabián 99 Vanuatu 99 Venezuela 47, 65, 72, 142, 150, 151 Verizon 71, 74 Vietnam War 52, 54 Virgin Media 74 Vodafone 71, 82 Volkswagen 72 vulture funds 114-5 Wackernagel, Mathis 119 Wal-Mart 72 Wall Street Journal 85, 97 Washington Consensus 65, 102, 129 water 39, 78 wealth 134, 135-8 The Wealth of Nations 20 Welch, Carol 126 Westfield 74 White, Harry Dexter 35, 36 Why Globalization Works 129 Windward Islands 43 Wolf, Martin 129 Wolfensohn, James 140 women 141 World Bank (IBRD) 37-8, 52, 55, 58, 59, 61, 62, 63, 64, 70, 78, 85, 87, 96, 102, 123, 140, 147 protests against 29, 65, 127-8 replacement proposals 152 World Economic Forum 148 World Fair Trade Organization 157 World Health Organization 13 World Investment Report 81, 99 World Shipping Council 22 World Social Forum 148-9 World Trade Organization (WTO) 18, 20, 77, 92, 110 and GATT 38-9 protests against 29, 66, 127, 140, 148 replacement proposals 152 trade dispute settlement 42-6 World War Two 24, 30, 31, 53, 76, 91 Worldwatch Institute 120, 145 Wright, Charlie 73 WTO see World Trade Organization Wyeth 71 Yugoslavia, former 12 Zaire, former 55-6 Zambia 63, 123 Zimbabwe 141 ... up with fresh water and unusual foodstuffs And they were befriended by the island’s indigenous population, the Taíno ‘They are the best people in the world and above all the gentlest,’ Columbus... But the process has accelerated over the past 30 years with the explosion of computer technology, the dismantling of barriers to the movement of goods and capital, and the expanding political and. .. expanded into Australia, New Zealand/Aotearoa and North America In some places (the Americas, Australia, New Zealand and southern Africa) they did so with the intent of establishing new lands