Earlier
this year, Larry Summers wondered in print about why nations around
the world are revolting against globalization of their economies and,
especially, citizens of the U.S. against the TransPacific Partnership
(TPP).
Summers
is considered by some to be a primary “architect” of the
modern U.S. economic system, which collapsed in 2008, destroying some
$13 trillion in wealth, by U.S. General Accounting Office
calculations.
During
the Bill Clinton Administration, he served in the U.S. Treasury
Department, when Robert Rubin was Treasury Secretary. At the end of
the 1990s, he served as secretary of the department. During his time
in setting up the financial system, he supported repeal of the
Glass-Steagall Act, which allowed creation of banks that were too big
to fail, and he opposed regulation of derivatives. Later, he served
as president of Harvard University, during which tenure Harvard’s
endowment fund lost $2 billion. Investments in that case involved
derivatives.
Summers
was well positioned and well educated to understand broad-spectrum
finance, economics, and the functioning (or non-functioning) of
economies around the world, yet, earlier this summer, he seemed to be
just beginning to understand why there is such opposition to the
attempts by the rich nations and their corporations to rule the world
completely. They are doing a pretty good job of ruling much of the
world, right now.
That’s
why it was a bit of surprise that, in a Washington Post op-ed during
the summer, he noted the “revolt” against globalizaton
and declared that the lawmakers and corporations must listen to the
people who are in revolt. If he had been paying attention for the
past few decades, he would have noticed that the people have been in
opposition to globalization for many years. They may not know the
details of their exploitation, but they surely know when they are
being exploited.
Problems
with globalization, for the U.S., at least, started big-time with the
signing of the North American Free Trade Agreement (NAFTA) by
President Bill Clinton. It was supposed to make trade among the
three nations, Canada, Mexico, and the U.S., much easier. An
immediate problem that sprang up in the first year was that Canada
lost 500,000 jobs to the lower-wage country to its south. If the
U.S. had lost jobs in the same ratio, it would have lost 5 million
jobs. What happened to Mexican workers, small farmers, and
mom-and-pop businesses was economic devastation and the immigration
of Mexicans and others from the south has become grist for right-wing
politicians who rail against “illegal immigrants.” What
did they expect? Faced with hunger and starvation, people would
travel many miles to find work to feed their families and they have.
To
a great extent, the same story could be told around the world, in
nations that are considered “developing,” which means
that they are often unstable, corrupt, and weak, although they have
natural resources that are sought by the rich (or “developed”)
nations. Those rich nations have enough power to have their way with
the majority of the approximately 200 nations in the world. For a
long time, even if their leaders do not care about the direction of
their countries under globalization, the people have learned the hard
lessons of it.
They
have seen their natural resources taken, their lands taken, and the
economies of their countries devastated. They have benefited little
from the “development” that is offered by the rich
nations that have declared they have come to “help them.”
Summers declared in his Post op-ed that the people must be “listened
to.” What he doesn’t seem to understand is that the
people of the various nations have come to realize that they are
victims, not the recipients of a hand up in their development. Thus,
the revolt against globalization. He seems now to understand, at
least to a small extent, that the people of each country want to
control their own fate. Right now, they have little or no control.
In
this way, people of developing nations, through a kind of organic
process, have come to reject the false help that rich nations have
offered, too often at the end of a gun. Summers uses as an example
the exit of Great Britain from the European Union (EU) and the
current presidential election season in the U.S. The Brits have
expressed the desire to retain their sovereignty from the EU is how
he sees the Brexit vote. In the U.S., the presidential candidates of
the two major parties are two of the least favored and least
respected in memory, but that’s what has happened in the
declining stage of American democracy. The American people have seen
what “free trade” and globalization of the world economy
have done to their lives and they want it to come to an end.
In
globalization, there is an attempt to “harmonize”
economies, societies, and nations of the world. Carried to its
logical conclusion, its aim generally is to tend toward ending
economic, social, and political diversity. In human societies,
diminishing diversity will tend to diminish the richness of those
societies and the Earth, itself. That’s what globalization is
about and the “revolt” against it, as observed by Larry
Summers, is something that is deeply understood by people around the
world (an organic process, if you will), even if they don’t
understand the “free trade” deals in detail. Rather,
their understanding is more profound and whole than Summers can
understand, even though he acknowledges and warns that governments
need to start listening to their people. Globalization can be
likened to the mass extinction that the Earth is now experiencing,
the greatest mass extinction since the demise of the dinosaurs and
the giant mammalian life that existed in those eras. The same effort
to “globalize” the world’s economies into
one-size-fits-all is doomed to fail because the transnational
corporations that have pushed globalization, facilitated by their
minions in the rich nations’ congresses and parliaments, are
essentially creating the climate for the same kind of mass extinction
that killed the dinosaurs and other creatures of an earlier time.
Today,
the human species, which can think ahead and reason, so we are led
to believe, is in the same kind of situation as those ancient giant
creatures. The Earth is in the same condition as it was so long ago.
The current mass extinction has raised no alarms among the
powers-that-be. Again, it is left to the people to begin to make the
needed changes, difficult to do without money and power. But, in
recent years, they have shown that, when the people stick together,
they can accomplish much to mitigate the damage done by rampant
industry and business.
If
there is one thing that can make the changes needed, it is
biodiversity, understood to mean the variety and abundance of
millions of species of life, plant and animal, which allow all to
live somewhat in harmony. Biodiversity allows the human species to
live without too much effort or suffering. But humans, being the
“thinking” creatures that they are, have set the balances
awry and do not as a whole intend to do much about it, as long as
there is profit to be made in upsetting the balances that give us
life. Biodiversity must be maintained or Earth does not function
well and the result is sickness, drought, famines, starvation,
floods, and fire, to mention a few.
So
it is with globalization. Diversity is what makes the human world
most interesting and it is one thing that can save it from collapse
or destruction. Humans and their societies must be seen in their
contexts, which include their local environment and its place in the
world’s environment. We’re losing that diversity, day by
day, as transnational corporations and foreign governments take more
and more of a poor nation’s resources, turn indigenous and
peasant peoples from their lands, disrupt social and economic
structures of whole nations, and, in the end, even destroy human
cultures. When they are destroyed, they are not likely to be seen
again, but for most of the exploiters, these people and their
cultures mean nothing, It’s profits that count.
“Big
corporations and Wall Street are enthusiastic about the TPP
(TransPacific Partnership), a deal that includes countries
responsible for 40 percent of the global economy. The TPP would give
giant corporations even more patent protection overseas.”
Robert Reich, U.S. secretary of labor in the Bill Clinton
Administration, wrote in an August e-mail sent out to urge massive
citizen opposition to the TPP. It is through trade deals like the
TPP that allow the rich nations to control the rest of the world.
Considering that the rich nations have control or very heavy
influence over much of the rest of the world, controlling another 40
percent of the global economy through the TPP is music to the ears of
the powerful. But more power and more consolidation means
diminishing diversity in all things, and means extreme danger.
It’s
hard to know what was in Summers’ mind when he warned about
globalization, but he clearly is viewing the current state of affairs
with some alarm, and rightly so. For someone like him, though, it’s
a little late, because he was in a position to slow down the loss of
diversity or lead the U.S. in another direction years ago. He didn’t
do it when he might have had influence in helping to prevent the
sorry condition of the U.S. and the world.
The
people are telling their governments everywhere how to mitigate the
damage that is being visited by globalization and the loss of
diversity among nations and peoples. Unfortunately, the bulk of
today’s politicians and economists and corporations who are
where Summers was two decades ago are not listening. They have yet
to have their epiphany, if they are capable of reaching that level of
consciousness. Humankind and the planet do not have any time to
wait.
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