In preparation of People's Health Assembly II - part 18
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ONE-LINERS (almost)
ON GLOBALIZATION: USE THEM
The following bits and pieces, for you to use in your debating
opponents on the issue of Globalization, come -- of all parts...
believe it or not -- from the IMF quarterly publication "Finance
and Development", Vol.38, No.4, December 2001. (also found in
http://www.imf.org/fandd). I have just excerpted them for you.
They are almost all verbatim although I may have somewhat
changed the context when editing.
Claudio Schuftan
mailto:claudio@hcmc.netnam.vn
--
1. Globalization began gaining momentum in the 1960s when busi-
nesses in search of larger markets expanded their reach beyond
national borders. (Moderator: As such, it is nothing new, but
just another name for the latest stage of Capitalism). But now,
foreign capital flows into poor countries contingent on inves-
tors being granted monopoly rights and protection from competi-
tion.
2. Globalization has heightened the risks of instability and
marginalization the world over. The structural reforms that come
with Globalization have negatively affected the most vulnerable
segments of society.
3. GDP growth is now slow in almost all regions of the globe ac-
companied by a sharp decline in trade growth. Also, income dis-
tribution has become much more unequal and skewed.
4. Further, Globalization has exacerbated unsustainable external
debt at a time that affected countries have received mostly un-
fulfilled promises of development assistance (ODA).
5. Unavoidable difficulties accompany Globalization. For exam-
ple, income disparities have increased within and between coun-
tries and the ratio of capital flight to GNP has increased dra-
matically (often to over 100%); another example is that Global-
ization has brought with it an additional sizeable brain drain.
6. At present, the playing field in international trade brought
about by Globalization is NOT level.
7. For example: Africa's non-oil exports in 2000 came to about
$69 billion. If Africa had retained its share of non-oil world
exports at 1980 levels, exports in 2000 would have been $161
billion, or $92 billion more than their actual level. Let's be
clear: without substantial improvement in its trade performance
and its terms of trade with rich countries, Africa will be un-
able to reverse its weak growth performance.
8. Industrial countries' current agricultural trade policies act
as disincentives to poor countries. The rich countries' protec-
tionism in agriculture is particularly, but not only, harmful to
Africa. (Protection in textiles also remains significant).
9. Import tariffs in the EU and the US are low or zero for agri-
cultural products that they do not produce and are much higher
on imports that compete with their domestic products. The tariff
structure also discourages import of higher-value-added proc-
essed products from the poor countries. These countries have ad-
ditionally erected non-tariff barriers that keep out agricul-
tural products from the Third World. It is middle-income coun-
tries that have reaped most of the benefits of the few prefer-
ences given by the rich countries.
10. If we are to go anywhere, developing countries just have to
play a more active role in demanding concessions in trade nego-
tiations.
11. The abolition of trade barriers for developing countries
could yield income flows that are 3x the amount of external aid!
12. Moreover, to reduce extreme poverty (people earning less
than $1 a day) by one half by 2015, poor countries will have to
raise their real GDP growth rate by 7-8%/yr sustainably. (Mod-
erator:...and that is simply not happening).
13. ...and poverty is more than inadequate income or human de-
velopment -- it is also vulnerability and lack of voice, power
and representation (World Bank).
14. Solutions in the right direction will have to include: Giv-
ing poor countries free access to industrial country markets;
providing them deeper and faster debt relief and; substantially
increasing ODA. (Moderator:...and that is not happening).