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The Nexus between Globalization and Justice

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“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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Economy

The Economy Against the Tide

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The world evidently grappled with the effects of the Covid pandemic in 2020 and continues to wedge forward against the odds to survive and stay afloat. The major economies contracted as the global boards pinned records after records in economic depreciation, monetary devaluation and corporate deterioration. However, whilst the pandemic pushed the metaphorical brake over the developed and developing economies alike, and simultaneously nudged the least developed into desperation, China posted surprisingly positive growth figures as it bid adios to the yesteryear. While anything remotely lucrative seems like a farce nowadays and although the relatively booming Chinese economy seems superficial at the first glance, a detailed analysis dissects the tenets of the trade that have set the People’s Republic apart from the struggling world.

China stands as the figurative ‘Ground Zero’ of the Coronavirus pandemic; reporting the earliest emergence of the virus in the ultimate month of 2019.  China later went on to have a gloomy start to the new year; struggling to deal with the strange occurrences, rising death toll and having no answer to the surging uncertainty. The new year celebrations were cancelled, holidays extended and even corporate giants like Toyota and Apple were resorted to immediate closure across the Mainland. The year expected to be of expansion turned polar as the world started to isolate the country to contain the virus; turning exports to the lowest levels over decades of preceding economic flourish.

However, while many global experts predicted the downfall of China; extrapolated by the dismal figures of the first few months of 2020, China quickly recovered and surpassed expectations in both containing the virus within the country and stabilising the tattering economy. The main contender and outright rival of China, however, faced the music in the most ironic way possible. Whilst the United States pillared on the trade war between the two since before the Covid pandemic, Mr. Trump left no stones unturned in maligning China for spreading the virus around the globe; deliberately and in an attempt to exponentiate its accession to power over US. The US economy faced the brunt of the pandemic rather expectantly since the time was wasted on hurling accusations instead of proactively adopting protective measures beforehand. While US is currently the worst affected country around the globe, its economy is no different than the mounding death toll on charts each day.

The US economy contracted on record levels and even itsworld-renowned indexes like DJI and S&P500 posted negative rallies; first since the Great Depression of 1929. Although the economic damage to the US has been cushioned, now twice, by heavily strategized monitory polices of the FED and colossal fiscal stimulus, the world superpower is showing signs of weakness as it deals with over 250,000 fresh cases each day yet can’t function to facilitate the 14 million and counting Americans facing unemployment for months and seeking benefits, taking the national bill to unprecedented heights.

Even compared to the regional counterparts, China stands out in much more than just the economic stability. Europe currently deals with a detrimental surge of the virus-variants while simultaneously accommodating the challenging deals across the borders in the wake of Brexit. The United Kingdom faces contradictions over new trade policies and procedures; not just with EU but with its very own states like Northern Ireland. The monetary rates now touch zero with a possibility of further plunge into the negative territory as London shivers with fatal blows of the highly infectious variant of Covid and the nation facing the second country-wide lockdown as hospitals run at full capacity.

Meanwhile, EU falters with the economic fiasco even under the improving financial conditions and finally grabbing an agreement on the year-in-year-out negotiations of the Silk Road Initiative. The distinction, however, is clear as while Germany, Europe’s most powerful economy, wrestles with a catastrophic recession, China completely avoided recession throughout the year 2020. While Germany looms into negative growth rates, China posted a steep 6.5% growth in the last quarter (Oct-Dec); a cumulative growth of 2.3% in 2020. A stark opposite of the slump caused by Covid restrictions that initially pulled China’s economy down by 6.8% in the first quarter compared to 2019.

While China has been gauged as “The only major economy to quickly recover from the pandemic and find the normal course of business operation”, the recovery has been uneven over multiple sectors of the domestic industry. The boom in the economy has been celebrated and attributed to the growing optimism of Chinese investors in the relentless recovery of the economy. The Shanghai stock market was recently pulled up by 1% even under the rippling conditions of the global economy. However, while the consumer electronics sector has enjoyed the waves pushed by the ‘stay at home’ mottos under the lockdown, service businesses like hotels and restaurants have faced a crunch which has eventually carried forward to the blue-collar workers in China. While the factories in the Mainland have turned into an overdrive to fill in the boom of exports since many countries face a manufacturing break, the exporters to the poor countries are dealing with the devastation alike to their clients. While magnates like Jack Ma have made a fortune, the recent graduates are struggling to find new jobs.

Now, with the resurgence of the virus, the fear in lacing the country again. The recent tally has jumped up to 769 new cases whilst reporting first death in over six months. However, the health officials have deemed the sporadic spread as ‘very, very small’. Ultimately, China came about to be a tough nut to crack, analytically due to its effective centralised strategies in dealing with the pandemic followed by aggressive policy making; focusing on the advanced manufacturing industries to stay proximate to core competencies whilst simultaneously maintaining a free market structure in other areas of the economy, setting a path for a predicted average 5.7% growth until 2025. Thus, paving China’s way to attain the coveted title of ‘World Superpower’ and surpassing US by 2028.

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Indian Farmers Protest Against the Parliament’s Encroaching Bills

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The new agricultural reforms in India aim to permit farmers to offer their produce to private purchasers beyond a state-run discount or wholesale markets, where farmers are guaranteed a minimum cost for their yields.

However, the farmers state that the laws would undermine their livelihoods and will solely be profitable to large companies, leaving producers helpless under the heel of a free market. Such patters can be gauged from the Modi government’s corporation-oriented policies. For instance, the current corporate tax rate – 30 percent – has been considerably reduced: 22 percent for existing companies and 15 percent for those established after 1st October, 2019. 

Farmers regard these bills with suspicion, for they feel threatened by the corporatization of their agricultural domain and the dismissal of the MSP regime. Introduced in 1966-67, the MSP regime promises the sale of specific crops at a fixed price thus assuring the farmers of a regular income in spite of escalating input costs and unstable prices.

Primary leaders of farmers’ associations have called for protests, even willing to observe fasts during the protest in order to challenge the new farmer laws. With almost 250 million protesters, to protest is being called the largest protest in human history

This is the second time in the previous two weeks that the farmers have called for country-wide protests, requesting all the people to organize sit-ins outside the district organizations across the state. The protests are being led by a large number of farmers sitting outside the capital, New Delhi, obstructing main highways heading towards the city.

Chief Minister of Delhi, Arvind Kejriwal, and his party ‘Aam Aadmi Party’ have supported the sit-ins by fasting with them. Kejriwal encouraged his party workers and members to join the campaign and asked Modi’s Bharatiya Janta Party to set aside arrogance and fulfill the demands of the farmers.

The agriculture sector contributes almost fifteen percent to India’s $2.9 trillion economy and enrolls the greater part of the nation’s 1.4 billion individuals. In recent years, this sector has been facing setbacks and driving a huge number of indebted farmers to take their lives.

Modi said the enactment was required to support the agricultural sector, and that the new laws would profit the farmers and “free” them from the oppression of middlemen. Farmers, generally from Haryana and Punjab and considered the “grain bowl” of India, have denounced the laws as “hostile to farmers”.

The farmers have demanded revocation of the new laws and assurance of the Minimum Support Price for their yields.“It’s been months now since the farmers began protesting. We have sent a few written messages to the Prime Minister, Agricultural Minister is demonstrating our hatred to the hostile laws but the BJP government is careless on this issue,” said the farmers’ leader.

One elderly woman, aged 75, said that “unless and until Narendra Modi withdraws these laws, we will not go back. This government should know about the strength and determination of the Punjabi people.”

The Indian Supreme Court has received many petitions regarding a ban on the protest, but the top court has declined such calls and ordered the government and unions to form a committee in which the experts would mediate between the concerned parties.

On the birth anniversary of Sikh leader, Guru Nanak, Canadian Prime Minister Justin Trudeau said in a Zoom meeting that Canada would always defend the right of peaceful protest.

Federal Minister Fawad Chaudhry termed Indian behavior with farmers as “shameful”. He stated that the Indian government’s policies were the biggest threat to regional peace. United Nations Secretary-General António Guterres called on the Indian government to allow protests, asserting the right to raise a voice and show opposition to the government.

The vociferous calls have certainly proven to be a feather in the farmers’ cap, as India’s Supreme Court has recently ordered for the suspension of these farming bills.

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U.S. Trade Deficits Increase from Covid

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America’s trade deficit (excess of imports minus exports) reached its minimum in February 2020, and since then has increased 84% from February’s -3708, up to November’s -6812. America has one of the world’s highest rates of coronavirus-19, or Covid-19, infection, and therefore is less productive and more needy than most countries are, during the coronavirus crisis, and is consequently importing more and producing less. The reverse has generally been the case for the countries that have had good policy-responses to the virus — those countries’ economies have either been virtually unharmed by, or else have actually boomed from, this pandemic.

China’s mere month-long trade deficit from coronavirus was an enormous -62.05 in February, but by March China popped back up to+19.93 and has remained above +36 since that time, and it reached its high of +75.43 in November. China has one of the world’s lowest rates of coronavirus-19 infection, and is therefore exporting more as it fulfills the needs of countries (such as America) that are producing less because of the coronavirus crisis. 

A major study by Jungle Scout, “Global Imports Report 2020”, says that:

Those countries that were able to recover from the impact of early 2020 economic events are the countries faring better later in 2020. For example, China had the most drastic year-over-year reduction in U.S. imports among the top 20 countries in February and March, second only to Hong Kong. But in April, China bounced back significantly, achieving approximately 40% year-over-year growth in U.S. imports. The countries that were able to recover early are the countries faring better later in 2020.

On December 17th, Matthew C. Klein at Barrons headlined “China’s Pandemic Recovery Accelerates While the U.S. Economy Rolls Over” and he reported that, “Soaring consumer spending, rapid manufacturing growth, and robust exports are pushing up the speed of China’s recovery from the pandemic even as the third wave of the viral outbreak and the withdrawal of federal government income support are causing the U.S. economy to turn over.”

One of the very few countries that were hit about as little as China by this pandemic is Vietnam, whose northern border is China. Vietnam has perhaps the world’s most vigorous and well-planned policies to restrain this virus. The country’s only two months of trade deficit were during April, at -12.20, and popped back up to +12.33 in May, then peaked at +49.86 in August, and declined sharply down to +6.00 in November, and then down to -10.00 in December. Although Vietnam’s worst month of the infection was August, after which the numbers of new daily cases returned quickly to the extraordinarily low numbers of the preceding months, Vietnam was hit hard by retaliation (such as complaints and investigations) from the U.S. regime in October, which caused an especially hard drop from 29.39 in October down to November’s +6.00, and then December’s -10.00. China wasn’t hit so hard by the U.S., mainly because Trump had already turned the screws against them earlier, and China had thus already reoriented its exports toward other countries. Yet, still, China has, steadily, each year, during the past five years, produced almost exactly 40% of all imports by the U.S. The impact of America’s policies against China has been much bigger in boosting America’s imports from China’s competitors than it has been in reducing America’s imports from China. America has been increasing its imports mainly from Vietnam, Germany, and Taiwan. So, those have been the chief beneficiaries of Trump’s anti-Chinese policies.

Another of the very few countries that have been hit by this coronavirus even less hard than China has been is Taiwan, which is almost unique in its enjoying a positive balance of trade throughout the year, and so Taiwan has produced record-breaking trade surpluses ever since May. This is largely because Taiwan is selling more to all of the desperate countries, such as the United States (which regime is especially happy to increase its purchases from Taiwan so as to decrease its purchases from China and from Vietnam). Taiwan is perhaps the world’s top gainer as a consequence of this pandemic.

Unlike China, Vietnam, and Taiwan, Germany has been somewhat poor in its coronavirus policies, and has 24,493 cases per million inhabitants, versus 16 in Vietnam, 36 in Taiwan, and 61 in China. America, by comparison, has 73,795. So, whereas America is over 3 times worse than Germany, it’s 4,612 times worse than Vietnam, 2,950 times worse than Taiwan, and 1,210 times worse than China. Germany is benefitting not because its coronavirus policies have been good but because the American regime wants to crush China and for some products this means buying from Germany instead.

The people who were saying that the aggressive types of measures that countries such as China, Vietnam, and Taiwan, were imposing against this virus would hurt instead of help those nations’ economies were not only wrong but they had their understanding exactly upside-down. They were exactly and precisely and extremely wrong. And if the United States (and perhaps some of its allies) had not been retaliating against the countries (other than Taiwan) that are the most successful against this virus, then the countries that have been doing an outstanding job of protecting their populations from this virus would be economically benefitting even more than they have been economically benefitting from their success against this virus. The result for the well-performing countries is not only lower rates of disease and lower rates of deaths, but higher rates of economic production and GDP. 

Coronavirus has thus been redirecting global leadership away from the United States. One might anticipate that America will respond by relying increasingly upon its military in order to impose its will — no longer as any sort of role-model to inspire its ‘allies’. For example, on Christmas Day, December 25th of 2020, at the very same time that the nation’s austerity hawks were blocking passage of a covid-19 relief bill in the U.S. Congress, and millions of Americans were terrified at the resulting prospects of soon becoming made homeless, CNN headlined “US Army prototype cannon blasts target from 43 miles away”, and presented video of a successful test of a tank’s cannon firing a small guided missile against a military vehicle that was located 43 miles away, which video CNN accompanied with martial music in celebration of the huge explosion and fireball-annihilation of that targeted vehicle. America would then be selling its threats more, and its benefits less, and CNN was already a liberal cheerleader for this change to a more ‘assertive’ style of propaganda. But if this is liberal propaganda, then what is conservative propaganda; or: How will CNN now distinguish itself from, say, Fox?

Trump’s replacement, Biden, has appointed, to his Administration’s international affairs posts, individuals who are just as intensely neoconservative (or “hawkish” or “war-loving”) as Trump did; and, therefore, the incentive for America’s trading-partners to become less economically dependent upon America is likely to decrease little, if at all, and America’s balance-of-trade numbers will probably improve little, if at all, during his Presidency. America seems set on being an aggressive declining power, economically, no matter how much it will be spending militarily in order to prop-up its power. America’s billionaires have been thriving while America has been spending around half of the entire world’s military expenditures, and, so, this type of U.S. Government is unlikely to change in the near future.

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