Globalism Post 9/11

September 11 is transforming our notions about a raft of subjects, from economics to technology. Thanks to our myopic and narcissistic media and opportunistic, short-sighted politicians, we are only beginning to grasp the ways in which computer networks are changing, even radicalizing much of the world, sometimes in great, sometimes horrific ways. Six months ago, most Americans were stunned to discover how differently others in the world regard us from the way we see ourselves. Globalism is a major reason. Invasive American culture -- from movies, music, fast-food -- have highlighted political and religious differences, from Europe to the Middle East and South Asia. So have networked, hi-tech economies based on information and tech, argues a new book by George Soros.

We seem to be running away from the world, and much of the world hates us for it. Such forces make America not only the world's leading superpower, but probably its most feared and hated nation. As the U.S. evolved rapidly from an industrial to a data-based economy, much of the world hasn't come along, or doesn't want to.

Our technology is running away from the rest of the planet, from genomics to supercomputing to bio-tech research to weaponry. Globalism, arguably the single most significant political issue on the planet even before 9/11, is even more critical now, even though there is little consensus on what it is or how we should feel about it or even define it. Deep-thinking billionaire philanthropist Soros jumps in with a significant new book -- George Soros on Globalization -- in which he advances some exciting and startling ideas about the future.

Anti-globalization protests have become a staple of international summit meetings, Soros points out, a sort of "fragmented potpourri of laments about life in the modern world." A ferocious advocate of open societies, he takes on what's good and bad about globalism, and how we might put it to better use. We'll take up that discussion here.

As Soros points out, 'Globalization' is a much overused term with a wide variety of meanings and contexts. Soros uses it to mean the development of global financial markets and the growth of trans-national corporations, along with their increasing power over national economies. "I believe that most of the problems that people associate with globalism," writes Soros, "including the penetration of market values into areas where they do not traditionally belong, can be attributed to these phenomena."

One could also blame the globalization of information and culture; the spread of television, Internet and other forms of communication; and the increased mobility and commercialization of ideas.

But Soros understandably concentrates on economic issues. Globalization as he defines it, is new. At the end of World War II, most countries strictly controlled international capital transactions. International capital movement accelerated in the early 1980s under Ronald Reagan and Margaret Thatcher, and financial markets became truly global only in the early 1990s, Soros says, after the collapse of the Soviet empire.

That period also happens to coincide with the most explosive growth of the Net and the Web, perfect engines for the new data-driven economies and systems for the rapid movement -- literally -- of capital.

By contrast, as we can see on the evening news most nights, while governments may not be able to restrict the flow of capital, they're still fairly effective at controlling the movement of people. (Although even there, the Net ultimately makes that more difficult, at least in terms of intellectual property and ideas. This kind of content is liquid, no longer confinable within territorial boundaries.

Since capital is the essential ingredient of contemporary production and economies, countries compete to attract it. It's no accident that nations who can't or won't are also incubators for political discontent and terrorism. Globalism has transformed our historic economic and social arrangements. Since capital can move anywhere in seconds, any nation-state's ability to exercise control over an economy has been radically undermined. This was a huge club the British held over the Chinese government during negotiations over the transfer of Hong Kong. The Chinese were forced to be somewhat more democratic when, with the stroke of a key, billions of dollars in capital could have fled Hong Kong in a micro-second, even if its people couldn't.

"The globalization of financial markets," argues Soros," has rendered the welfare state that came into existence after World War II obsolete, because the people who require a social safety net cannot leave the country, but the capital the welfare state used to tax can."

This was no accident, he explains, even if few Americans had any idea it was happening. The Reagan administration (along with Thatcher) was determined to reduce the state's ability to interfere in the economy and, helped enormously by globalization's rise, it succeeded.

So, exuberantly costumed demonstrations aside, globalism is not about to evaporate or even weaken, not any time soon. Quite the opposite: nation-states and their constituents now have to choose between globalism (and its attendant prosperity) or religious fanaticism. This leaves us with the central question:

Next: Is Globalism good or evil?

Comments

Re:running away from the world

[4of12]

I was going to say that most Americans are not actively running away from the world. [What stands for "news" in many Arabic language daily papers would leave many of us open-mouthed and incredulous.]

Rather, we ignore the rest of the world and consider America to be our world.

That's why most Americans were aghast and surprised by the 9/11 attack, because most of them didn't have any clue about the ideas that circulating in the rest of the world.

Our own media bears much responsibility in this regard, because it, too, has largely become part of an apparatus of market-based forces - infotainment used to embed valuable advertisements. George Soros makes a good point there.

I think the scariest part of globalism is that with free movement of corporations between nations, there will be a tendency for those corporations to be attracted to nations with a vacuum of regulations, enabling them to operate in what they find to be the friendliest environment from a pure market perspective. Zero corporate taxes, little corporate liability or responsibility apart from "returning shareholder value".

Unfortunately, I don't think a good, rational consensus can yet be built at the international level as to a proper corporate regulatory environment. There are too many special interests that would burden things in all kinds of contorted ways, pretty much as many nation states have done. There simply has to be a way of achieving some balanced policy that combines both perspectives, where returned shareholder value is everything, and where cost is no object to achieving a global optimum of human happiness.

As a consequence, you'll see more and more nations gravitating towards being run for corporate interests, which have only the small inertial forces of ethics among their chief executives preventing them from abandoning even more traditional human values and morals in order to achieve a better return on shareholder value.

It will probably be some years before this evolution of nation/corporate states comes to a head, but inevitably it will.

While I strongly believe that free, unfettered flow of accurate information and individual empowerment (such as democracy) are vital to finding a good solution, these two particular ideals may not necessarily be included in either the solutions that provide maximum shareholder value, or in some of the proposed solutions that supposedly provide optimum global human happiness.

The Problem Isn't Globalization, But Our Hypocrisy

[enkidu]

The parts of the world that hate us, (even those that do hate us seem to love other parts of the U.S.), don't hate us because we have so much power, or because we export so much of our "decadent" culture, or because they "hate our freedom", or even because we are turning our back" on the rest of the world. They hate the U.S. because they view us as hypocrites. And so we are.

We talk of free trade and then enact tariffs to protect our industries from "unfair" trading. We talk of democracy and we support repressive, undemocratic regimes. We talk of justice and refuse it to innocent victims of our bombings. We talk of international rules but ignore them when it doesn't suit us. We talk of equality but treat all others as inferiors. We talk of freedom but want our "partner" nations to do what we tell them to do. What do you expect?

And who is to blame? We all are to blame. The media is to blame for ignoring their public responsibility, printing and broadcasting spineless mush (like this piece) that serve the interests of corporations and stability. The government is to blame for supporting coroporate profits to the exclusion of higher social and diplomatic goals. And we the public are to blame, for electing these bozos, for giving them high approval ratings when they do not deserve them, for not demanding better coverage of the foreign press and international affairs, for being content with our computers, our SUV's, our anime cartoons and our prosperity with no thought as to how these things are produced. We are to blame because we allow our government to continue to act hypocritically and we say nothing.

So don't give me that bullshit about "abandoning" the global arena. Globalization isn't the problem. It's our hypocrisy that is pissing people off. And it's pissing me off too.

Re:Running Away?

[Kibo]

I think that's why they say they hate us, but in reality the people who do hate the US are just stupid and poor.

They see us making trade demands from everyone, our fingers in too many pies, and think it greedy or maybe arrogant. But it's just that we're the largest trading partner of most countries. Our national interests are simply more distributed, and unsurprisingly, our foreign policy follows our interests. But there's a strange sort of dichotomy. I think it might come from the value placed on individuality, where by and large people take care of their own crap. Perhaps other cultures see national agreements more holistically. And perhaps expect something more than free trade for any concessions made, and we've left the building. We're watching Access Hollywood for an update on the personal dramas of Britney and Justin, or something equally mundane. A baby who inexplicably fell down a well, whatever. And the populace of other countries feels that the US is too conceited for it power, or too powerful for its conceit. But the truth is much less interesting. It's simply a matter of my goods for your money or my money for your goods, and if you expect me to even entertain the prospect of this process, there are going to be a few things we need to agree on first.

Then you have people, such as the palestinians, who expect to just be happy because some book I've never read says they deserve it. They picked a fight, they lost. And now they're really loosing. (Good.) They expect the US to wave a magic wand and just solve all their problems for them, without any effort on their part. Even if the world did work that way, and history has consistantly shown us it doesn't, why on Earth would we possibly intervene on behalf of the palestinians, given the past years events, and the occasions they choose for celebration?

If it wasn't in such a tragic context, even Arafat's recent statments would be funny. According to him the US is directly responsible for palestinian deaths because the Isralies use some american hardware, and the palestinians are not directly responsible Isralie civilian casualties because they are short on saritonin re-uptake inhibitors, or something. They really feel entitled to everything, and it's somehow our obligation to just give it to them, and they shouldn't even have to stop killing innocent people to get it. It's pretty obvious I've got no pity left for the palestinians. But I do think they have an excuse of sorts.

Some of the data I've read suggests the the majority of the people in the muslim world, which is vastly poorer than the west on a per capita average, are illiterate. Being illiterate and raised in enviroments that even in their mildest forms I would consider reactionary and fundementalist, and having few sources of information, they grow up without bullshit detectors. This and the fact they grow up with a religion that extols, in some instances, the murder of civilians and suicide, and a culture where people think nothing of using people for political ends, well it's to be expected. But we can't make them rich, we can't make them smart, we can't grow bullshit detectors in vasts and have missionaries and peace corps volunteers insert them using a novel out-patient procedure. They've got to help themselves, too bad for them they don't see it that way. Too bad for us too.

Well, at least I get to see some stuff blow up on CNN. There's the steel lining I guess.