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The Nexus between Globalization and Justice

Emanuel L. Paparella, Ph.D.



“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us…”- Opening paragraph from “A Tale of Two Cities”

In 1973, E.F. Schumacher wrote a book entitled Small Is Beautiful. The book was well reviewed and was read by many people concerned with the global ecological disaster, but perhaps it was a bit ahead of its time.

That was after all the time of agribusiness and the widely held idea that “big is always better.” That in turn was integral part of a positivist approach which believes that progress is inevitable, it is always scientific and what comes at the end and is most modern is always the best of all possible worlds.

Now we are more likely to be persuaded by those who insist, as Schumacher did, that a more localized decentralized approach to economics may be the more sensible and humane approach.

The question arises: why is that? Quite simply because economic globalization has taken center stage while global warming is often derided and ignored, more often than not by those who are supposed to be our leaders. Some say that globalization actually began with the era of Western colonialism and imperialism and it is unstoppable like the idea of progress. Closer to us, in modern times, while welcomed and seen as a panacea at its inception in the last quarter of the 20thcentury, it has by now transmuted into a great debate on whether globalization is capitalism at its most pernicious or a promising way to reduce poverty world-wide. The sad truth is that while wealth has been increased it has mostly gone to the one per cent on top of the economic pyramid while the poor and middle class have seen no economic process.

Laissez-faire liberal capitalists of various stripes and assorted entrepreneurs searching for world-wide market opportunities a la Trump naturally support globalization and argue that becoming part of the world economy is the only chance for developing countries and those living in abject poverty at grasping economic opportunities and lift themselves out of poverty. They see absolutely nothing wrong with globalization per se; at best they suggest some reforms in its methods and its side effects on regional cultures. They may pay lip service to regional cultures and even religious heritages and tradition while at the same time deriding them as retrograde but necessary superstitions to keep the people docile and exploitable (hence Marx critique of religion as the opium of the people), but essentially they have reduced human beings to mere consumers within the global market place.

As William James used to quip: do not pay attention to what people say, pay attention to what they do and you will know what they really believe in. People willing to ruin reputations and impugn the professional integrity and career of their critics for an ideology reveal with their ad hominem attacks better than with their scholarly treatises the extreme measure to which they are willing to resort to in defense of their pet unexamined ideology.

And that may indeed be the reason why, on the other hand, the protesters believe that globalization is merely an excuse for big business to run roughshod over the developing world. For them “free trade,” so called, simply enables multinationals to dominate developing markets and push out local enterprise. They call for alternative ways of reducing poverty that prioritize environmental and human rights. They argue that by reducing ancient heritages and cultures to their lowest common denominator one dissolves most conflicts and distinctions among them and trivializes them.

The protesters, who have been at it for the last twenty years or so are convinced that Global capitalization is all about getting the rich to be even richer. They cite examples such as this: ten years ago a US company director got 40 times the wages of an average blue collar worker – their wages are now over 400 times as much. Just 400 families have more than half the world’s theoretical wealth. Yet calling this insanity is sneered at. Capitalism requires expansion, there has to be year on year growth, and that’s simple math: if you must expand your economy by an average of 3% a year, in a hundred years you need to consume in a day what we currently consume in a year.

In the world of culture a dichotomy seems to exist between the world of science and that of the liberal arts and the humanities, something I have written at length in previous articles. Indeed, a novel by a great novelist such as Dostoyevsky or Joyce, or a poem by Dante or Shakespeare represents a world rooted in numerous particularities where people from different backgrounds encounter one another and are trying to connect and influence each other; a world complicated by memories and ambitions and multiple connections and displacements. It’s a world wherein its unique rounded characters refuse simplifications.

On the other hand, what Globalization with its reductionistic tendencies seems to produce is the disembowelment of the complexity of world cultures, forcing their differences into the blender of consumerism and accumulation of wealth, to then regurgitate shallow formulaic platitudes, reducing the narrative of those cultures and their heritage of millenarian religious traditions, to a singular outcome; that of universal consumerism and happiness, Disney or McDonald or soccer games style, where business need not be responsive to the people or to truly democratic institutions but to the happiness of its shareholders. This is achieved by moving factories and businesses to the cheapest labor markets and keeping pays low.

According to this severe critical view, history has taught us that globalization means only one thing: the rich get richer, the poor get poorer. Corporate globalization and financial globalization without a buttressing ethical value system which sees the unity of humanity and its nexus to the earth, inevitably becomes dominated by greed and the profit motive. The critics also point out that those societies with the highest standard of living are those which allow some degree of capitalism, but combine it with a strong sense of social justice as exemplified by their social programs designed to help the less privileged and the least fortunate. The richest country in the world may not necessarily be the country with the highest standard of living. It appears that the element of distributive justice, whether it is taken seriously or it is simply ignored and considered unimportant, makes all the difference

Obviously there are two contrasting ways of looking at Globalization and the question arises: are the two views irreconcilable or is a synthesis of sort possible? While the developing world needs help from the developed world, does such help have to come at the price of pollution and unsustainable technologies under the title globalization? Does globalization have to imply that transporting goods and foodstuffs thousands of miles using valuable fossil fuels and creating massive pollution is a good thing? It appears that Globalization as envisaged by the visionless current world leaders and economic pundits measuring wealth and ignoring justice is likely to damage the developing world more than help it.

What the developing and the developed world need are initiatives that allow countries to be self-supporting and less dependent on the vagaries of world exchange rates, transport costs and international sanctions. However those promoting world trade and entrepreneurial capitalism do not want this, they want to the developing world be dependent on to their technologies and trade tie-ins. The problem is not free trade as such, but the unfair way with which it is implemented. It is apparent to any dispassionate observer that far from upholding the principles of democracy, the exigencies of commerce has served often to thwart them. All one has to do is recall that Britain’s colonial adventures in India, China and the East Indies were perpetuated by what was felt to be an inalienable right to force nations half way across the world to trade with them on their own terms.

Some have suggest that socialism is the solution, but socialism is often seen historically tied to the ideology of communism, adhered to by China’s ruling party, and this despite the fact that it is practiced in genuinely democratic countries in Scandinavia as well as in most industrialized democratic countries of the world which have social services that can only be characterized as socialistic, including the US which has social programs such as Social Security, Welfare benefits, Unemployment benefits, Medicare, Medicaid etc.

The Chinese are out to prove that democracy is not necessary for material prosperity; it is mere frosting on the cake, never mind Marx’s injunction that power ought to always proceed from the people, that is to say, from the bottom up and not from the top down. Hence ideological cultural battles invariably and regularly ensue and as it can be expected they become not part of the solutions but part of the social problems of our global village.

In point of fact, the battle between capitalism and anti-globalization, socialism, communism and all the other -ism’s one can think of is quite pointless – none of these ideologies stand up in extremis. A harmonious balance between regulation and freedom in the markets seems to be the only way forward to benefit all with at least a minimum of egalitarianism and distributive justice while preserving and enhancing freedom and democracy.

There is one glaring example that can be brought to bear to better illustrate the unfair business practices of the developed world toward the developing one. Both Britain and the US make strenuous efforts to sell cigarettes to poor countries. They give no health warnings against smoking as they do by law in their own countries. One can easily imagine how the precarious health services of these developing countries are going to cope in 20 year time with all the smoking related diseases we in the West are imposing upon them. I suppose that at that point in time the rapacious entrepreneurs of our brave new world will get busy selling them expensive medicines manufactured and developed in the West.

The major issue with globalization seems to be that corporate chairmen have power without representation. One of them is all set to become the next US Secretary of State. If we were to think of consumerism as a new political idea, corporate chairmen are the politicians, advertisements are the party broadcasts or propaganda, and the products are the manifesto. The result as advertised is happiness, fulfillment and wealth for everyone concerned. Donald Trump has promised as much to the ignorant and gullible and many are now waiting for the check in the mail. Good luck!

This analysis points to the fact that in effect we live in a semblance of democracy but in reality we live in a deterministic universe wherein we have been reduced to consuming automatons and our personhood and our very humanity has been robbed. It is now impossible to vote a corporation out of power. There is something fundamentally wrong in this situation. Branding globalization protesters as “anarchists” playing at revolution, as the media tends to do, will not lead to any solution either. Schumacher made similar points in the above mentioned book.

In this article I have simply outlined the problematic of Globalization as presented by those on opposite sides of its analysis. Those readers who may wish to further deepen their knowledge and even attempt a solution to the conundrum would be well advised to peruse a seminal and influential article by Steven Weber, Naazneer Barma, Mathew Kroenig and Ely Ratner titled “How Globalization Went Bad” which appeared in Foreign Policy of Jan/Feb 2007.

In conclusion let me say this on the present perplexing and ambiguous age of globalization, the era of the so called interrelated “global village” with its Facebook and Twitter and the Internet: it is both the best of times and the worst of times. The outcome, I suppose, will depend on how well we can hold together in our mind those two contrasting notions and wrap them around our minds as a paradox. I sincerely doubt that logical positivists and assorted entrepreneurs will be of much help here, but I would suggest that the novels of a Dickens or a Dostoyevsky, not to speak of sages and philosophers, may provide some hints on how best to bridge the chasm.

Professor Paparella has earned a Ph.D. in Italian Humanism, with a dissertation on the philosopher of history Giambattista Vico, from Yale University. He is a scholar interested in current relevant philosophical, political and cultural issues; the author of numerous essays and books on the EU cultural identity among which A New Europe in search of its Soul, and Europa: An Idea and a Journey. Presently he teaches philosophy and humanities at Barry University, Miami, Florida. He is a prolific writer and has written hundreds of essays for both traditional academic and on-line magazines among which Metanexus and Ovi. One of his current works in progress is a book dealing with the issue of cultural identity within the phenomenon of “the neo-immigrant” exhibited by an international global economy strong on positivism and utilitarianism and weak on humanism and ideals.

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Report: CPEC offers enormous potential to Boost Pakistan Economy

MD Staff



With investments in road, railways and ports, the $60 billion China Pakistan Economic Corridor (CPEC) offers enormous potential for Pakistan to boost its economy, reduce poverty, spread benefits widely and help those likely to be affected by the new trade route, a new report says.

The report, entitled “The Web of Transport Corridors in South Asia”, published by the Asian Development Bank, the United Kingdom’s Department for International Development, the Japan International Cooperation Agency, and the World Bank, discusses several economic corridors including CPEC

“The largest economic gains from investing in transport corridors may arise from urbanization and job creation around this new infrastructure, rather than from many more vehicles using it”, said one of the report’s authors, World Bank economist Martin Melecky, who added: “not all corridor investments are equally successful in creating large economic surpluses that spread fairly throughout society.”

The report notes that the many transport corridors proposed across Asia would cost trillions of dollars to implement, far exceeding the financing resources available. Hence, countries need to prioritize the most promising corridors that will deliver the expected transformative impacts for their economies and people. Engineering designs and geopolitical considerations could be important, but sound economic analysis is the key to designing truly successful corridors, the report argues.

The ability of large-scale transport investments to generate wider economic benefits depends on the population density in the areas they cross. Their capacity to spur structural transformation along the way depends on complementary factors around the transport corridors, such as the skills of the local population or restrictions on local land use. The new transport infrastructure must come with the means for people to take advantage of the improved connectivity right from the start.

“The upcoming Khyber Pass Economic Corridor project is a positive example, where trade facilitation and the development of local economic activities are explicitly integrated in the design of the project”, said Illango Patchamuthu, World Bank Country Director for Pakistan.

The report reviews the international experience with economic corridors, from the Pacific Ocean Belt in Japan in the 1960s to high-speed train networks in Europe more recently. It also analyzes the impacts of the Golden Quadrilateral highway system in India and finds positive effects, including higher economic activity and better (non-farm) jobs for women. However, air pollution rose in parallel and gains in household consumption were not equally shared across connected districts.  Appraisal simulations for CPEC and the Kolkata-Dhaka corridor suggest that complementary measures are needed to improve local conditions that in turn will create formal jobs and generate tax revenues that could pay for corridor investments.

In light of the international evidence and specific analyses for South Asia, the report advocates for a more comprehensive design of corridor programs that actively manages tradeoffs and closes potential financing gaps in a sustainable manner.

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Good Tourism Practices to Advance Sustainable Development in the Americas

MD Staff



Concrete examples of how to advance sustainable development through tourism take centre stage in the first joint publication between the World Tourism Organization (UNWTO) and the Organization of American States (OAS). ‘Tourism and the Sustainable Development Goals: Good Practices in the Americas’ provides 14 case studies from across the region on why tourism ranks high among the economic sectors better positioned to enable the Agenda 2030 for Sustainable Development and its 17 Sustainable Development Goals.

Ranging from tourism projects to strengthen the peace process in Colombia to initiatives in the heart of the Peruvian Amazon, addressing climate change in Mexico or providing insight into management and sustainability systems in Honduras or Panama. A total of 14 case studies portray the contribution of tourism to advance the Sustainable Development Goals in the Americas.

Tourism and the Sustainable Development Goals: Good Practices in the Americas’ recommends to pay critical attention to tourism management as well as to strengthening partnerships between national and international public and private stakeholders, as well as local communities. The report also addresses the emergence of a more responsible traveler and how destinations in the region should integrate resource efficiency and multi-stakeholder involvement in their policies, actions and initiatives.

“With more than 200 million international tourists who traveled to the Americas in 2017, tourism can and must play a significant role in delivering solutions for sustainable development in the region”, said UNWTO Secretary-General, Zurab Pololikashvili. “I am grateful for the partnership with the Organization of American States and am confident that together we will support tourism’s role in the sustainable development agenda of the region up to and beyond 2030”, he added.

According to the Executive Secretary for Integral Development of the OAS, Kim Osborne, this joint effort “provides greater awareness on how tourism can help address poverty alleviation, protect biodiversity and cultural heritage, and support community development in the Americas”.

Authorities at all levels in the Americas have identified tourism as a priority sector to promote economic development and diversification and countries across the region are adopting new legislation and policies in this direction. Against this backdrop, ‘Tourism and the Sustainable Development Goals: Good Practices in the Americas’ provides insight into how a common approach – including policy makers, private sector, tourists and the development community – can catalyze sustainable development through tourism.

The report was presented during the 2018 Inter-American Congress of Ministers and High-level Authorities of Tourism, under the theme ‘Connecting the Americas through sustainable tourism’.

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Azerbaijan’s geo-economic expansion prospects: Conventional or emerging markets?



In the background of global geo-economic shifting, nation states confront significant challenges in terms of appropriate positioning. In case of Azerbaijan, these challenges are also related to regional geopolitical imbalances as well as structural problems existing in the national economy.

Throughout its independence, Azerbaijan has pursued the way to formulate its foreign economic relations through maximizing its economic benefits in the context of achieving relevance to its national interests. Indeed, country’s geographical location and economic strength gained thanks to oil boom gave birth to the possibility of formulation of Azerbaijan as a regional geo-economic pivot.

Azerbaijan iscurrently conducting multi-vectorial geo-economic development strategy in order to maximize its geographic advantages as well as maintaining better positioning in the framework of massive realignments observing in global economic architecture.Looking through of the policy frameworks which encapsulate country’s medium and long-term economic vision, it becomes obvious that Azerbaijan will continue to adjust these strategies to the “new game rules” of geo-economic shifting.

However, it should also be mentioned that in some cases, Azerbaijan’s geographic location takes part as an impediment rather than advantage.Referring to conventional understanding of the concept of “space”, Azerbaijan has only limited number of spaces in which geo-economic sustainability can be realized. However, shifting from geopoliticsrelying on the dominance over geographic basins to the geo-economics which relying on controlling financial and trade flows creates an excellent opportunity for Azerbaijan to tackle with this problem. In this regard, it should be emphasized that successful realization of trade-logistics and energy transport projects in recent years have created a sound ground to continue geo-economic expansion in the new stage of economic development. But the question currently standing in front of this expansion strategy is that which markets or “geo-economic spaces” should be main target?

Assessment of trans-regional projects initiated or supported by Azerbaijan during last two decades indicate that these initiatives are mainly directed to mitigate EU’s dependence on several routes or building an appropriate infrastructure to bolster these countries’ trade relations with Central Asian countries. This factor was strategically and economically beneficial for Azerbaijan in terms of getting better access to European markets and eliminating infrastructural backwardness inherited from Soviets. However, as aforementioned, current realignments in geo-economic landscape make it necessity to add new directions and quality features to the geo-economic expansion strategy of the country.

In this regard, Strategic Road Map for the perspectives of the national economy which approved by President Ilham Aliyev in late 2016 can be accepted as a reliable guide to find answer to the question put above. It is not secret that in recent years, we are observing geo-economic shifting from Euro-Atlantic region to the Asia-Pasific. This shifting is gradual and time-consuming process and cannot be constrained only by Chinese economic expansion or South Korean success story.

According to the World Bank, over the next three years the $75 trillion global economy will expand by more than $6.5 trillion in size. It is also estimated that China and India will be among Top 3 contributors to real GDP growth predicted for 2018-2020 while Turkey, Indonesia, South Korea and Japan will be also among major contributors.Furthermore, emerging and developing Asia seems will be achieved to quadruple its share in global GDP based on PPP during 1980-2020.

In the light of these figures, it can be put forward that Azerbaijan can take more benefits through getting better access to these emerging Asian markets. Furthermore, taking into consideration country’s medium and long-term economic vision in which acceleration of joining to global value chains has been mentioned as one of the strategic targets,integration to these markets promise more economic gains. The scale of these gains will not be constrained only in the framework of monetary or financial units. Particularly, significant progress achieved in realization of North-South and East-West transport corridors in recent years, additionally much brighter prospective transport projects which are expected to be realizedin the near future will lead to increase Azerbaijan’s geo-economic importance. This achievement can be accepted as a result of continuous efforts made by Azerbaijan during last two decades. As mentioned by President Aliyev, situated between Europe and Asia, Azerbaijan will continue to use wisely its geographical location to become one of the leading transportation hubs in Eurasia. Pursuant to his opinions, it is highly predictable that Azerbaijan geo-economic expansion will continue in accordance with regional and global economic landscape movements.

Getting efficient positioning in regional integration movements which dominantly shaping under priority of national interests is one of the key directions of Azerbaijan’s geo-economic expansion strategy.In this regard, preserving independence in integration processes is one of the significant imperatives in Azerbaijan’s foreign economic and trade relations.It is worth to mention that Azerbaijan, unlike to some of other region countries, still preserves independence in making choices regarding with integration movements. Therefore, Azerbaijan’s current stance lets us put forward the idea that consistence of joining to such type of integration movements with the country’s strategic foreign and domestic economic targets is more deterministic imperative rather than nominal participation.This hypothesisalso involves some insights regarding with the issue that in which direction geo-economic expansion ought to be continued in the following years.

On the macroeconomic and foreign trade perspective, it is worth to emphasize that Azerbaijan has achieved significant growth rates during 2004-2014. After some adverse effects of oil price crunch after 2014 Azerbaijan economy is currently in the process of adjusting new equilibrium points.This process is conducting not only through improving macroeconomic indicators, but also through making changes in geographic orientation of the country’s foreign trade relations. According to the official figures, the share of Asian markets is averagely 38% in exports and 39% in imports. However, analyzing of commodity structure of this trade turnover exhibits that in exports low value-added commodities dominate while in imports particularly medium and high value added ones take the lion share. This structure of trade relations with Asian countries brings forth some challenges in terms of diversifying commodity structure of exports as well as increasing turnover with these emerging economies. Therefore, in the context of geo-economic expansion, it would be more reasonable for Azerbaijan to pay much attention to join global value chains appearing in these markets. Additionally, thanks to already finished and prospective  trade-logistics and transportation projects, Azerbaijan’s opportunities to benefit from new trade reality which involves geographical fragmentation of production is increasing. This new reality offers to accelerate diversification of economy with limited resources avoiding from conventional barriers existing in small economies such as Azerbaijan.

Finally, Azerbaijan seems very determined to become a geo-economic pivot in its region relying on its comprehensive and continuous development strategies and rising international economic competitiveness which achieved during recent years. This deterministic stance will continue through shifting beyond a new quality stage of geo-economic expansion in the era of formulation multipolar global economic order. This shifting additionally requires revision of geographic expansion postulates of the country’s geo-economic development strategies. The characteristics of this revisionwill be determined by systemic realignments in the global economy.

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