'Globalization From Below' Tackles the 'Great Recession'

The economic crisis makes it possible to put proposals on the table that have long been ruled inadmissible.

Can globalization from below really provide an alternative solution to the great recession?

by Jeremy Brecher, Brendan Smith, and Tim Costello, posted on Commondreams.org on January 26, 2009

[As tens of thousands of activists from around the world gather in Belem, Brazil for the World Social Forum, social movements everywhere are debating how to respond to the ever-deepening economic crisis. This article is excerpted from the longer Discussion Paper "GLOBALIZATION FROM BELOW" TACKLES THE "GREAT RECESSION" prepared by Global Labor Strategies.]

At the pit of the Great Depression in 1930, an American country music group named the Carter Family recorded a song called The Worried Man Blues. It began:

"I went down to the river and I lay down to sleep
When I woke up there were shackles on my feet."

Though many subsequent verses describe the horrific outcome, there is no explanation of what had happened or why – just an awakening to a seemingly endless catastrophe. The song immediately became an unprecedented national hit. It's hard to imagine that its success didn't have something to do with capturing the sense of being the helpless victim of incomprehensible disaster that so many felt in the face of the Great Depression.

The seemingly sudden collapse of the global economy in 2008 has similarly left millions, indeed billions of people all over the world a victims of a catastrophe that appears both inexplicable and unending.

But what's now being dubbed the "Great Recession" is neither incomprehensible nor irremediable. On the contrary, it can be understood as an expectable result of a capitalism that has been globalized and at the same time "freed" by neoliberalism of control in the public interest.

The economic globalization that transformed the world at the turn of the century promised, according to its advocates, a glorious vista of prosperity that would provide unprecedented economic growth and raise billions of people out of poverty. In practice it generated personal and national insecurity, growing inequality, and a race to the bottom in which every community, nation, and workgroup had to reduce its social, environmental, and labor conditions to that of its most impoverished competitor.

But economic globalization also gave birth to a new convergence of global social forces that opposed this kind of globalization. People all over the world fought back against this "globalization from above" with their own "globalization from below." They used asymmetrical strategies of linking across the borders of nations and constituencies to become a counter power to the advocates of globalization. They created a movement – variously known as the global justice movement, the anti-globalization movement, global civil society, or as we call it, "globalization from below" -- that some in the media even characterized as "the world's other superpower."

The anti-globalization/global justice/globalization-from-below movement developed in response to the expansive phase of globalization and neoliberalism. Now the global economy has entered the most severe financial crisis since the Great Depression. The financial crisis has turned out to be the start of a cascade of other economic crises that are reshaping the global economy as definitively as an earthquake reshapes a city. Current leaders of the world's nations have utterly failed to develop a solution. The likely impact of their failure on ordinary people around the world is incalculable.

The advocates of globalization from above propounded as an article of faith that markets are self-regulating and that all would be for the best in the best of all possible worlds if only governments, labor unions, citizens organizations, and the unruly mob let them alone to do their thing.

The times they are a-changing. US government officials long known as market fundamentalists seize banks, buy mortgage and insurance companies, and commit $7.7 trillion – half of the US annual product -- to government intervention in financial markets.

The Clintonite "moderates" who once gutted the social safety net and sacrificed commitments to jobs programs in order to build up budget surpluses now propose vast public works programs financed by budget deficits. The IMF, scourge of "irresponsible" countries that didn't balance their budgets, advocates a trillion-plus dollars in global government deficits and claims to have replaced "structural adjustment conditionalities" with condition-free loans.

These programs may well fail in halting the downward spiral of the global economy. But they open the door to new forms of more social and public economy. That's one reason conservatives normally oppose them – and one indicator of how serious the present crisis really is. The economic crisis makes it possible to put proposals on the table that have long been ruled inadmissible.

While economists have asserted with great confidence that one after another trillion dollar "solution" would save the global economy, one after another has failed, raising the specter that it cannot be saved in its present form. Peter Boon and Simon Johnson of the website baselinescenario.com recently raised that possibility in the Wall Street Journal. They note that economists generally believe even the Great Depression of the 1930s could have been stopped by proper monetary policy. But, Boon and Johnson argue, governments may simply not be able to prevent such huge deflationary spirals. "Perhaps the events of 1929 produced an unstoppable whirlwind of deleveraging which no set of policy measures would truly be able to prevent." Their implication seems evident: The same could be true today.

The multi-trillion dollar rescues and bail-outs so far just attempt – possibly futilely -- to save the status quo. But what can we do if the status quo can't be saved? Can globalization from below really provide an alternative solution to the great recession?

It has already started to do so. A landmark was the meeting of a group of social movements and NGOs in October, 2008 on the occasion of the Asia-Europe People's Forum in Beijing that developed a sketch for a "transitional program for radical economic transformation." The "Beijing Declaration" laid out alternatives that are "practical and immediately feasible" that put the "well-being of people and the planet at their center." This requires "democratic control over financial and economic institutions." It includes proposals for finance, taxation, public spending and investment, international trade and finance, environment, and agriculture and industry. It provides a brilliant first expression of a globalization-from-below alternative to the failures of globalization from above.

The basic vision of the Declaration is summed up in its title: "The global economic crisis: An historic opportunity for transformation." Its goal, in other words, is not to shore up the status quo and return to the destructive form of globalization that preceded the crisis. Its objective is almost the opposite of the eight-trillion-dollars-and-counting of bail-outs, rescues, and subsidies provided to business in recent months by the world's governments. It aims instead to provide "a transitional program for radical economic transformation" to a "different kind of political and economic order."

"Transitional program" may sound like antiquated socialist rhetoric – a call to take state power and nationalize industry. But both the goals and the methods are very different. Indeed, the Declaration points a path between merely reestablishing the status quo and assuming that actions must be "revolutionary or nothing."

No "maximalism" here. "To capture people's attention and support" the Declaration argues, proposals must be "practical and immediately feasible." That is possible because, even under the domination of globalization from above, people have been developing alternatives within the world's nooks and crannies. The unfolding economic crisis provides the opportunity "to put into the public domain some of the inspiring and feasible alternatives many of us have been working on for decades."

The goal linking these alternatives is "the well-being of people and the planet." And that requires a focus not primarily on restoring the financial system, but first and foremost on the great human and environmental crisis the world is facing in relation to food, climate, and energy.

Such common human interests are not the principal concerns of the people and institutions that now call the shots in national governments or the global economy. The "well-being of people and the planet" will not be achieved by economic jiggering. Instead, "democratic control over financial and economic institutions are required."

The vision of such democratic control, however, is not of either a centralized national or a centralized global economy. It is closer to what Walden Bello elsewhere described as the "co-existence" of a variety of "international organizations, agreements and regional groupings" that would allow "a more fluid, less structured, more pluralistic world with multiple checks and balances" in which nations and communities can "carve out the space to develop based on their values, their rhythms, and the strategies of their choice."

The current economic crisis creates opportunity for transformation, the Declaration argues, because it severely weakens the power of the US, the EU, and the IMF, World Bank, and WTO. It undermines the legitimacy of the neo-liberal paradigm. And, where global pseudo-consensus once asserted that "there is no alternative" to liberal capitalism, the future of capitalism is now becoming an open question.

Of course, this moment can also be seized by "fascist, right wing populist, xenophobic groups" who will try to "take advantage of people's fear and anger for reactionary ends."

What is the agency for pursuing constructive alternatives and resisting destructive ones? It starts with the "powerful movements against neo-liberalism" that have been built over past decades. These will grow along with public anger at the abuse of public funds for private subsidy, the crises of food, energy, and the environment, and the deepening recession.

As social movements from around the world converge in Belem, Brazil at the end of January for the World Social Forum, they will be in a position to take the next step toward realizing their potential as the world's "other superpower." Indeed, it is the convergence of the already existing networks and understandings of globalization from below with the new outrage at what neo-liberalism has done to the world that provides the opportunity to show that another world is indeed possible.

Tim Costello, Jeremy Brecher and Brendan Smith are the co-founders of Global Labor Strategies, a resource center providing research and analysis on globalization, trade and labor issues. GLS staff have published many previous reports on a variety of labor-related issues, including Outsource This! American Workers, the Jobs Deficit, and the Fair Globalization Solution, Contingent Workers Fight For Fairness, and Fight Where You Stand!: Why Globalization Matters in Your Community and Workplace. They have also written and produced the Emmy-nominated PBS documentary Global Village or Global Pillage? GLS has offices in New York, Boston, and Montevideo, Uruguay. For more on GLS visit: www.laborstrategies.blogs.com or email smithb28@gmail.com.

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Maude Barlow on the global water crisis

Recently named to the new post of senior adviser to the United Nations on water issues, Maude Barlow discusses the water crisis with Canadian journalist Erin Anderssen. First posted October 25 at the Toronto Globe and Mail

"What does it take to frighten people?" Maude Barlow wonders.

She rattles off a grim list of worries, barely pausing for breath: water supplies in Africa guarded by dogs and chain-link fences while families go thirsty, the vital Murray-Darling Basin in southeast Australia crumbling into desert, the mighty Colorado River in the United States drying up to a trickle.

"The water crisis is deepening everywhere," sighs the 61-year-old activist and head of the Council of Canadians, who has tasted tear gas and faced down stun guns in defense of universal access to clean water. What scares her most is that the problem will not get fixed for her grandchildren.

This week, Ms. Barlow was named senior adviser to the United Nations on water issues - a new position created by General Assembly president Miguel d'Escoto, who raised the subject of water as a human right in his first UN speech in September. Ms. Barlow, who has been meeting with Mr. d'Escoto unofficially since August, agreed to take the position without pay.

"With my heart and soul, I believe it is the single most important environmental and human-rights threat of our time, and it's the one hitting now," she says on the telephone from Winnipeg, where she was attending a conference. "There is nothing 'in the future' about this [issue]."

Raised in Digby, N.S., where her father was the town's first social worker, Ms. Barlow has become a prominent opponent of the privatization of water - a June article in the Australian newspaper The Age said she was "to H2O what Al Gore is to CO2" - but she first made her name in Canada as an outspoken activist fighting the North American free trade agreement. She received more than her share of criticism, and her more dire predictions have not come true, but on that subject she has a practised answer: "My mother used to tell me, 'Serious people make serious enemies.' "

And Ms. Barlow is nothing if not serious. She has written 15 books - her most recent, Blue Covenant, on the global water crisis, was published last year. She travels continually and not, as one colleague pointed out, on luxury junkets. While her calendar is swamped with speaking engagements, she is not one to linger at conference centres.

"She is just tireless," says Wenonah Hauter, the executive director of Food & Water Watch, an organization Ms. Barlow chairs.

In India, Ms. Hauter recalls, Ms. Barlow sat for two days in a small village with mothers who were holding a silent vigil to protest against a Coca-Cola plant that was siphoning off their water to bottle it. She was tear-gassed during an anti-globalization rally at the World Trade Organization meeting in Hong Kong in 2005.

In Johannesburg, water services have been privatized, prepaid meters have been installed by the French company Suez, and the supply cut off to those who can't afford to pay. When local townships formed a protest march, Ms. Barlow and her staff moved to the front of the line, hoping to deter the police from using stun guns. A few days later in the Orange Farm township, she confronted some visiting Suez executives, who eventually hopped back on their bus and left without taking their tour.

This is the same doggedness that Ms. Barlow now vows to bring to her new post at the United Nations, where her main focus will be developing a new convention that sees water not as "a commodity to be sold on the open market like running shoes," but as a public resource held in trust by the government and provided as a human right to its citizens.

She says issues around water cover all the areas she feels most passionately about: gender, poverty, the environment, social justice. She describes returning from a trip in which she visited Nairobi's huge Kibera slum, where people use "flying toilets" (you defecate into a plastic bag and throw it in the street), and counting up her faucets and water lines in her Ottawa home. "I could turn them all on and run them for days, and nobody would say a word. We just take it for granted."

When she began studying the politics of water, she had to unlearn much of what she had been taught about the resource - beginning with the idea that it is infinitely renewable and that Canada is overflowing with it.

"We are a planet running out of clean water," she says. "We all learned that couldn't happen back in Grade 6. But it is happening."

And she notes that many Canadians still believe that their country has 20 per cent of the world's water supply and is therefore safe from shortages. (In fact, scientists now say Canada holds closer to 7 per cent of the planet's fresh water, and much of that is too far north to be accessible.)

Consider the ready examples that belie our myth of abundance, she says: The Great Lakes are becoming increasingly polluted as their water levels fall, many aboriginal communities have limited access to drinking water and the oil-sands expansion continues to damage the ecosystem of northern Alberta.

Meanwhile, Canadians rank among the biggest per-capita users of water in the world. "We treat our water badly," Ms. Barlow sighs.

But while the battle for a UN convention declaring water access a human right, similar to freedom of assembly and speech, will probably be long, she has reason to be hopeful.

After four years of silent vigil, the women in India managed to get their case against Coca-Cola to court and its plant was closed. As quickly as bottled water became a fad in the West, it is now becoming a faux pas; for instance, cities such as London have banned its use at municipal functions and many schools in Canada have stopped stocking it.

Blue Covenent opens with a disaster scenario: a future world where the poor continue to die from dirty water, corporations have made water a luxury of the rich and climate change is ravaging the land. Asked whether she is optimistic that the world can act in time, Ms. Barlow offers the only answer, perhaps, that a woman with four grandchildren can give: "We have to have the courage to see the crisis as it is. But anyone who knows me will tell you, I was born with a smile on my face."

In deep water: Statistics on the global water crisis from Blue Covenant

1.1 billion people have no access to clean drinking water.

The World Health Organization has found that contaminated water contributes to 80 per cent of all sickness and disease worldwide. Half of the world's hospital beds are occupied by people with an easily preventable waterborne disease.

In China, 80 per cent of major rivers are so polluted that they no longer support aquatic life.

By 2050, based on a population growth of three billion people, humans will need an 80-per-cent increase in water supplies to feed themselves.

In 2006, 200 billion litres of bottled water were consumed globally - a 200-per-cent increase since the 1970s.

For the price of one bottle of Evian, the average North American could buy roughly 4,000 litres of tap water.

Less than 5 per cent of plastic bottles around the world are recycled.

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Digby Neck, Nova Scotia vs Mega-Quarry, SPP and Atlantica:

Struggling to Maintain a Small Scale Sustainable ecnomy in Face of Imposed Extractive Economy

By Janet M Eaton, PhD.
Justice Rising - Fall 2007, Vol 3, #2
Moving from Corporate Extraction to the Grassroots Restoration Economy
October 1, 2007

The Sierra Club’s Corporate Accountability Committee joined a dozen environmental groups, several local organizations and hundreds of individuals to highlight Digby Neck, Nova Scotia to stop the incursion of US Cement Company Clayton Concrete, that obtained a permit to extract basalt for aggregate from the mountain range that runs through this peaceful tourism paradise.

In the Sierra Club’s PowerPoint entitled "Basalt Assault" two kinds of economies are contrasted—the existing small-scale, sustainable, localized economy and a mega-quarry extractive economy linked to a large-scale, industrial, unsustainable globalized economy. (see www.sierraclub.org/CAC). The present economy is characterized by:

• Community development
• Sustainability
• Small—scale and local
• Participatory
• Eco-tourism
• Retirement area
• Small-scale fishing
• Marine research
• Learning, discovery
• Intermediate technology emphasis

The kind of economy exemplified by a large scale mega–quarry stands in stark contrast :

• Globalized economy
• Industrialization of unique bio-region
• Undemocratic imposition on local community by foreign corporations and governments
• Derailing of local sustainable development by introduction of large-scale, unsustainable industry
• Cumulative impacts as more industries are attracted by deep sea port

The Sierra Club is concerned because Clayton Concrete would contribute to suburban sprawl and is an extension of the unsustainable fossil fuel economy. It is also concerned because of corporate abuse of power which interferes with the ability of communities and nations to protect the environment. Finally it is concerned because Clayton Concrete derails the transition to a sustainable economy and furthers corporate economic globalization. This model of the extraction economy assumes that economic growth is an end in itself; that a natural area is "wasted" if not developed for profit; and that all environmental costs are externalities— all of which are major causes of global environmental destruction.

We challenged the permitting of this quarry for both local and global reasons. Local reasons included environmental, cultural/ spiritual, political and economic. Global reasons included the failures of corporate globalization as evidenced in many reports, studies and books, and the unsustainable nature of the existing global economy as evidenced by so many collapse scenarios—peak oil; collapse of the US economy; collapse of the American Empire; collapse of the climate system(global warming); collapse of ecosystems; and numerous studies which provide dire warnings of the collapse of civilization. James Howard Kunstler, peak oil writer, in an interview with the author of this article, further reinforced our claims that Digby Neck is a model, small-scale economy for a post-peak oil future and should not be subjected to a mega–quarry with the potential to destroy this pristine small-scale fishing and tourism model.

SPP vs Local Economies
It became obvious that the NAFTA Plus Security and Prosperity Partnership of North America (SPP) and its north eastern Atlantic cross-border geographic area, Atlantica, threaten small-scale community economies like Digby Neck. First of all the SPP, like NAFTA before it, manifests the hallmarks of corporate globalization: privatization; de-regulation; trade liberalization and assault on the public sector; putting corporate rights above those of citizens and sovereign governments at all levels. Secondly, NAFTA has failed the environment and weakened our capacity to protect it under existing legislation. NAFTA Plus, as the SPP is known, is much worse. Under the SPP the extractive economy is continued and furthered by a natural resource pact where energy and natural resources are becoming more deeply integrated across the three North American nations, Canada, the US and Mexico. This is leading to: a) added exploitation of the tar sands of Alberta from one million barrels per day up to two million barrels per day for US national energy securiy, with projections as high as 5 million barrels per day; b) higher levels of uranium mining and exports from Saskatchewan; and c) high rates of mineral, ggregate and coal extraction on both sides of the border. There is a continuing emphasis in the SPP on xtraction of fossil fuel resources and other unsustainble coal, tar sands, and uranium—all sources of unsustainable energy.

The SPP is part of a global economic system fosering global economic relations with China with all ts negative implications for food and product safety, global greenhouse gas emissions, outsourcing and loss of manufacturing jobs. This model has led to a global hyper-growth economy with super-container ships built in China, carrying large numbers of containers nto super ports built in all three countries to connect with super corridors along which super trucks will arry goods to the hinterland. Research shows that oastal super quarries and mega quarries are a solution or low-cost aggregate for infrastructure demand in ime of rapid global economic integration.

According to Mander and Cavanaugh writing in Alternatives to Economic Globalization, "Global transportation infrastructure built to service the global economy brings a multitude of negative consequences." This past June the Environmental Assessment Panel for the Digby Neck Mega Quarry held its final hearings and the author made a presentation examining the impact of the quarry on the Bay of Fundy, the issues around NAFTA and implications around the SPP and Atlantica for further quarries. We also noted the vulnerability of the entire North Mountain Range if this quarry goes ahead. Concerned citizens fear that quarry creep will be inevitable as demand for aggregate will increase given the emphasis on SPP and Atlantica super-corridors documented in a recent CCPA report on Atlantica and other US and Canadian sources.

The panel is expected to bring down its verdict soon. The evidence is so overwhelming that this quarry was wrongly permitted and it was so highly opposed by local residents and the coalition of environment NGOs, which have lobbied strongly against it, that most people in opposition feel it would be difficult for the panel to rule in favor of going ahead with the quarry. But then again, we have an environmental assessment system in place largely for purposes of mitigation of impacts—not for stopping proposals for extractive industries. And the federal and provincial governments involved do not have to listen to the panel if they choose to dig in their heels. Both the ‘conservative’ provincial government and the current federal so-called ‘New Conservative Government of Canada’ have been doing this a lot of lately. It is therefore imperative that we bring to light the environmental consequences of NAFTA and the more severe impacts of the SPP.

When it comes to small-scale sustainable versus large scale industrial extractive models for rural areas it is obvious that, just as in Digby Neck where the rallying call became Preserve Digby Neck Stop the Quarry, that globally the time has come to foster smaller-scale restorative economies and "Stop the globalized extractive economy!"

Janet M Eaton, PhD, is Sierra Club of Canada’s International Liaison to the Sierra Club’s Corporate Accountability Committee

Powerpoint urls: www.sierraclub.org/CAC Basalt Assault links for a power point presentation and the resolution pased by US and Canada Sierra Club Board of Directors

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