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Anti Capitalist FAQ




Who are the Anti-capitalist protestors?

A difficult question because ‘they’ are not a single group of people at all. They come from all walks of life; all ages, genders, races and social classes and come from many counties. It is convenient for the mainstream media and commentators to lump them into a single group but this is far from the truth. The only unifying factor that could reasonably be applied to the protestors is that they are people who are unhappy with the present global, political and financial system. Beyond this, the origin, motivation and aims of the individuals and groups who make up the protesters is so diverse as to make any expert or press speculation about what the Anti-capitalist/Anti-globalization should or should not be doing/thinking meaningless. Their Anti-capitalist/Anti-globalization ‘label’ comes from the fact that the disparate groups of people involved will often pick important global political/financial meetings (e.g. G8, IMF, World Bank etc..) to make their presence known.

So what groups compose the Anti-capitalist/Anti-globalisation protestors?

It varies with the country currently hosing the political/financial meeting. In general it’s possible to say that the groups represented tend to be one of the following: NGOs (Non-Governmental Organisations), Left Wing Groups, Anarchists, Environmentalists and Human Rights Activists. Each of these groups has their own aims, ideology and tactics. Some groups encompass several of these grouping whereas other barely touch on one area. As you can see it’s potential a huge area of discussion and it would be almost impossible to cover them all so the FAQ will focus on general ideas and some examples. Before reading any further I'll give the perspective of the author - this article has been written by an anarchist so be aware of my bias.

Who or what are NGOs?

NGOs or Non-Governmental Organisations are groups set-up by people with the aim progressing on a cause or issue. Their beliefs come from the issue they are focused on. Often they are international with groups in many countries. They only answer to themselves on matters of policy and tend to be hierarchically structured. Examples include Greenpeace (who focus on nuclear and environmental issues), Amnesty International (who focus on human rights issues) and the Red Cross (who care for victims of conflicts). Not many NGOs could be considered ‘anti-capitalist’ as they tend to be interested in reforming or influencing the current system rather than advocating a new system. Some NGOs are actually funded by governments such as ATTAC or Oxfam. Others masquerade as what the popular image of an NGO is while representing a very different, for example the ‘Global Climate Coalition’ who sound like an environmental group, but are funded by oil companies to oppose climate change laws. The Red Cross recently attracted criticism after accepting money from the controversial multi-National Nestle as well as oil companies.

However, that’s not to say all NGOs are only wearing the ‘mask’ of caring, just that they only represent themselves. This can be positive and negative, take for example Greenpeace who only accept money from members and so don't have their interests diluted and so their actions are often focus and effective such as StopESSO.com the campaign to boycott one of the world's nastiest oil companies. It's positive in that it attacks ESSO, but does that mean we can ignore other companies such as BP who are involved in other nasty practices?


Who or what are Left Wing Groups & Anarchists


'Left Wing' is phrase used to describe people who's ideology is that of placing social equality foremost. Within this area there are sub-beliefs such as Socialism, Maoism, Trotskyism, Marxist-Leninist Theory, Anarchism, Trade Unionism, Anarcho-syndicalism and so on. This FAQ will not attempt to cover all these branches, instead it will focus of what unites and divides these ideologies. Broadly speaking all left Wing ideologies (should) oppose anything that attempts to create inequality - racism, sexism, homophobia, capital and so on. Where the ideologies split into two branches is that some believe in taking over the functions of the state (Maoism, Marxist-Leninist Theory, etc.) and make the state work for the benefit of the people. Some have called this the 'dictatorship of the masses'. Others (Anarchism, Anarcho-syndicalism, etc.) believe that the state is the creator of inequality and so freedom is gained by abolishing the state and allowing people to form their grass-roots democracy so everyone takes authority for their own existence.


Who or what are Environmentalists or Human Rights Activists


Environmentalists are those who believe in equal or greater focus of time and resources being given over to nature. They espouse the belief humans cannot live without (or separate from) nature so we must learn to respect it and preserve it. Environmental groups can range from 'establishment' groups such as Friends of the Earth to direct action groups such as Earth First! Human Rights Activists are those to campaign to ensure that those who would trample of fellow human beings in their quest for power/money are stopped, that all humans deserve basic fundamental rights (such as the right to life, the right to food, free speech, to water etc..) that cannot be violated by anyone. These types of groups can vary from local community groups concerned with issues within their neighbourhood to international groups such as Human Rights Watch. Within this arena you can also find Animal Rights Activists. These groups and individuals take this same idea of basic fundamental human rights and extend it to animals, so animals have the right to habitat, to live free from cruelty and so on. They also have a range of groups from PETA who campaign against the fur trade to Hut Saboteurs who actively disrupt fox and stag hunting at great personal risk.


Are all the Anti-capitalist/Anti-globalization movements totally separate groups?


No way! The strength of the movement comes from mixing-up ideas and aims, for example 'Earth First!' are a radical environmental group that mixes anarchist ideas with environmental ideas. Global Exchange is a group that welcomes all ideas and opinions, believing that all aspects of the struggle are connected. Human Rights Activists can get involved with Environmentalists when issues of contaminated land where people live arise. The bottom line is that in the complex world we live in, everything is connected. More and more individual groups and people are waking up to this fact. The struggle for environmental justice is the struggle for human justice. The struggle for true democracy is the struggle for equality. As the charismatic Zapatista commander remarked on the issues he and his people were struggling for, "We are all Zapatista."


So what do Anti-capitalist/Anti-globalization protestors want?


The groups will want different things. An environmental group may want protection for a patch of woodland or a change in the law to protect a species. A human rights group may want to see a dictatorship put under pressure to respect it's people or to free it's prisoners of conscience. A socialist group may want to take over the state, while the an anarchist group may be seeking to dismantle that state. But, one thing all are united on is that the present system is not doing the right thing and that people need to get involved to change things for the better, because nobody else is going to do it for us!


What is their problem with the media coverage?


Within this movement, the media are often referred to as the 'corporate media' to reflect that the majority of news outlets in the world are owned by just 6 companies. Media is a reflection of the problems we face - it is hierarchicly organised, ruthlessly controlled by a few rich people and primarily interested in representing corporate views rather than reflecting the reality of our world. For example in the United Kingdom; BskyB, one third of UK Newspapers including ‘The Sun’ and ‘The Times’ are all owned by the same man - Rupert Murdoch. He also owns ‘20th Century Fox’ in the US, ‘Star TV’ in Asia, the LA Dodgers, the National Rugby League and Fox Interactive and most of the newspapers in Australia to name but a few. His empire is worth and estimated $5.3 billion. In the 'democracies' of the world this man is courted by politicians because he often hold the power to elect or topple governments. They call this 'freedom of speech' just watch what you say...'

Where can I find out more?

Books

-A good non-ideological introduction to the ideas covered is Naomi Klien's 'No Logo'
-To help in building an anlyitic understanding of the status-quo try Noam Chomsky's 'New Military Humanism' which is about the Kosovo War, Plan Columbia and Palestine.
-Also highly recommended are 'Propaganda and the Public Mind' by Noam Chomsky and David Barsamian.
-I'd also recommend the easily accessible and very readable 'Death Blossoms' by the radical writer, former black panther and death-row inmate
Mumia Abu-Jamal.
-Being an anarchist, I can't help but also recommend Colin Ward's 'Anarchy In Action'.


Websites

-For news you can't beat www.indymedia.org its a news site that allows anyone to both comment on other news articles and post their own stories. Also of note for news is Ainfos at www.ainfos.ca which is an anarchist news site.
-For analysis try Zmag at
www.zmag.org and the anarchist site www.infoshop.org
-Finally for MP3 and spoken word try http://www.radio4all.net which in an anarchist site hosting radio shops, talks and discussions by various people from cyber culture to third world debt.

Films

-'This is What Democracy Looks Like' is a good start, it's a documentary about the Seattle protests.
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'Land and Freedom' directed by Ken Loach is a good watch. It's loosely based on the book 'Homage to Catalonia' by George Orwell (author of 'Animal Farm' and '1984') of the Spanish Civil War - which was a defining moment in history for those of us who believe a better world is possible.
-
'Manufacturing Consent: Noam Chomsky And The Media' is another documentary - it's long and involved by very powerful and in-depth.

version 1.1: anti-copyright: http://anarchist606.blogspot.com





Issues for the movement-


Theories of conflict

How does the anti-capitalist movement face up to the challenges of war and state repression? Luca Casarini and Alex Callinicos discuss the issues

Alex Callinicos It became clear in Prague, and in a very different way in Genoa, that the Tute Bianche and socialists in the IS Tendency have two things in common. First, a recognition that we are entering a new period of struggle and a new period of resistance, and secondly, a desire to organise in ways that are different from those of the traditional left. The war now makes things even more serious, although even before that Genoa was producing a discussion about strategy right throughout the world. I think we need to explore what we have in common, what we disagree about and what we can learn from each other.

Luca Casarini Tute Bianche does not exist now as it did before. It is important not to confuse the objective that we have with the means. The means for us was to create a network that came from the autonomists, but went further than the autonomists because we came to the conclusion that the political experience of the 1970s and 1980s had come to an end.

The experience of Tute Bianche has been important in trying to change paradigms, trying to change language, and trying to change how you relate to other political forces as well as the method of struggle.

In Genoa Tute Bianche reached their objective but it was only a partial objective. The main objective for us was to bring into civil society the idea that there was conflict and there will always be conflict. It wasn't just raising the issue of conflict-it was also raising the issue of creating greater consensus amongst people. We have learnt a lot from the Zapatistas, the idea of spreading yourself out and increasing the range of consensus you obtain. So one of the things that we developed is the concept of civil disobedience-bringing together and raising the idea of conflict, but also trying to get a degree of consensus at the same time.

The important thing is the practice of this disobedience. It is not one in which we are the specialised army, or the vanguard in which people just follow us. It is a principle that can be reproduced and adopted by others. We have tried to do things differently from the old left by entering into these networks and trying to develop them from within, without the old fashioned way of trying to be hegemonic within the network and trying to become the vanguard force. The way we want to set about convincing people is through practice, by intervention and arguing with people.

Now after Genoa the Tute Bianche are in a new phase. In fact the Tute Bianche doesn't really exist anymore. For us Genoa was an important turning point to no longer put Tute Bianche (white overalls) on. Even without wearing the white overalls it was clear that everybody accepted the slogans, the vision and the ideas. Now within the umbrella groupings of the social forums in Italy we are trying to create a new area within it which we are calling 'disobedience'. We haven't called it civil disobedience, but social disobedience. One of the things that we are trying to bring to people's attention is the issue of illegality, which any mass movement has to face at certain points.

Alex Callinicos We continue to believe that there are crucial elements of the Marxist tradition which are relevant to the situation today. There is a very sharp distinction between what we see as the corrupted Stalinist distortions of Marxism and for what for us is the heart of Marx's own politics which is the notion of working class self emancipation. For us when we are involved in any struggle the crucial element is self activity, encouraging people to fight for themselves. There I think we can see an obvious overlap between our approach and yours.

But there are certain classical questions that have not gone away. Let me mention two-one is the state and the other is leadership. Genoa showed very clearly the military face of the state, and the extent to which, however globalised and decentralised capital may have become, it still relies, ultimately, on centralised concentrations of power. I notice in your speeches and your literature you often refer to ideas that come from Antonio Negri's and Michael Hardt's recent work, Empire, about multitude, decentralisation and difference. But the decentralised network character of resistance can make us forget that one of the things that we are going to have to do is to take on that centralised power. There are solutions that are ruled out, like terrorism. The whole history of the Red Brigades just underlined how formidable the power of the state is-how if you try military solutions you get smashed. But the problem of how to take on the state is still there as it was for Lenin and Rosa Luxemburg.

Secondly, let me say something about the question of leadership. When you say you want to avoid being a vanguard it depends what you mean. If by vanguardism you mean the Communist Party approach of using the working class movement as raw material usually for its electoral projects, or as different far left groups do who proclaim themselves the vanguard of the working class when the working class is completely unaware of their existence, of course these are models that have to be rejected. But there is a sense in which the Tute Bianche has functioned as a vanguard. You said people look towards you and follow the initiatives that you took.

In any movement there are going to be disagreements, and there are going to be forces which are more or less influenced by the mass media and the dominant class, and that means there is a struggle inside the movement. We in the SWP do not call ourselves a vanguardist movement because of the associations, but we do not reject the idea of political leadership. What we mean by leadership is advancing a political argument within the movement about the direction it has to take. This involves, not telling people what to do, but discussing with them and trying to take them with us. I think it is better to be open about these things because when you come to play the sort of role which, for example, Tute Bianche have within the movement, you have a responsibility, and people look to you and expect things from you.

Luca Casarini Let's start with leadership and vanguard. One of things that we don't do which, according to the classical Marxist tradition you should, is make use of contradictions to destabilise things. The current phase has gone beyond that. We are inside these movements but the role that we have is to bring our own ideas to bear. Also we are very aware and conscious that there are things that we are going to learn from the movement.

But if we are going to talk about leadership what we face is a new situation. If we are going to talk about leadership in terms of a party leadership then we are talking about something very precise. But if we are talking about leadership in terms of a network, a new form of organisation that we are experimenting with, then this is a very different thing.

I don't think a network has a centre because it is made up of many centres. A network can have a temporary centre which can influence the rest of the network and can attract the best of the network towards it. Therefore any expression or act of leadership is only temporary. Above all, even if it is only temporary it must have the capacity to attract people towards it. As an organisation we cannot be self sufficient. We must build and maintain the network, and we have to show a kind of leadership which is able to work within the network but which doesn't destroy it.

We also have to express the complexity, such as the complexity of bringing together the multitudes rather than the masses with all the obviously clear and open problems that there are. So if we are saying we've overcome vanguardism and the masses it is like taking medicine. For example the Black Bloc in Genoa have expressed a kind of vanguardism and treated everyone else as the masses. We think if you behave like that you destroy the movement.

What is important about this is the concept of cultural hegemony. We have to behave in such a way within this network that we bring forward the whole issue of conflict with the state, or with power.

In recent years another view has arisen which is called weak thought-the separation from power, from the system, the end therefore of any hypothesis of conflict. This has been the reformist answer to the defeat of the 1970s. We think we have to find an answer to the defeats of the 1970s. This revolutionary response has to be that without conflict there is no hope of a different world. We think that the movement that began in Seattle has posed this question on a planetary scale, because it hasn't only displaced a whole series of issues, but it has placed the issue of democracy above all other issues.

This great planetary change that globalisation has brought about means we have had to deal with huge modifications within our own country-for example that between our own national state and the global system. What we saw in Genoa was not the action of the military state, or the Italian state, and its 17 national police forces-we didn't actually see them in action. In Genoa the Italian state was an appendage of a global system, just as in Gothenburg. The police don't normally shoot demonstrators in Sweden as a matter of course. We don't think that the police in Genoa would have done what they did without the permission of Blair and Bush. We believe that Blair and Bush showed the way, and dictated to Berlusconi what should be done. This is a symbol of what is happening throughout the world. There are some supranational structures that, even within the rich First World, impose certain policies on national states, and these policies are such that there are no longer any economic borders or trade borders.

There is a tendency to resist this mechanism of the global market, such as continental groupings, like the euro and so on. We talk about three continents-the American continent with Nafta, the European continent, and the Asian continent. This way of looking at things should be taken to its logical conclusion. We now need to view globalisation not purely as a phenomenon of the market and not either as the great return of the imperialist multinational states, but we have to view it as a new method of capitalist exploitation which is global. This creates a great problem for us.

We had the phase of Thatcherism, of the untamed free market and the end of all forms of Keynesianism. We then had the next phase where it was necessary for capital to provide a political government and political control because we have never witnessed a market without government. This began with Seattle in 1999. The big leaders became the possible actors of this global change. We said even before Genoa that this phase was going to end at Genoa, because obviously a big movement had been born on the wave of these big summits, and the summits could not take place because of this movement. The movement was not born in Calcutta or Kabul but was born in Seattle, and this led the system to think twice and to think quite deeply. It is worth thinking about Karl Marx at this point when he said the revolution is going to be born either in Britain or America. This phase has come to an end, because from about 1995-96 we have seen the end of liberalism.

But then you had the attack on the World Trade Centre in New York. And this has thrown us into a completely new phase. It would never have occurred before this phase began that the US would be attacked. We think that in this third phase we can see quite clearly why the world's leaders needed to create a world political leadership. It is very clear in this phase that they no longer need to get political control over the world, and they no longer need a government that is strongest and richest but they also need control which is the most just. They now want to put themselves forward as the just civilisation-and this is an ethical concept. The big effort that they are making now is to create this new anti-terrorist club which would also include Palestine. This is a tremendously ethical construction. And so it is a real political attack and manoeuvre that is being done. This indicates more of an imperial rather than an imperialist approach.

Alex Callinicos There is more continuity with the past than you suggest. It is absolutely true that the major capitalist powers politically coordinate their interventions much more than they did in the past. And it's absolutely true also that there have been a whole series of cases recently in which we see a specific national state acting on behalf of the kind of cartel of leading capitalist states. In Genoa the cabarinieri were shooting on behalf of global capitalism, not just the Italian wing.

It is further true that great power interventions are justified more and more in terms of appeals to notions of justice and human rights. But I think on this last point this started before the 11 September. It was Kosovo that was the first humanitarian war, and Blair is particularly clear in articulating the idea that economic globalisation requires a political globalisation where the leading states act in the name of what he calls universal values. So Kosovo was a war for values as he puts it. Many other sad countries are going to be destroyed in the name of universal values.

Where I have a problem with Hardt's and Negri's analysis in Empire is that it is important not to underestimate the extent of the national conflicts that still exist among the leading capitalist powers. So for example you talk about the three regional blocs. The interesting thing is the US regards itself as the leader of all three blocs-it's deeply involved in the process of European integration, and its also very involved in apec, the Asian-Pacific economic forum. That reflects the fact that the US sees these different international institutions critically as instruments for the assertion of the interests of US capital. The US hasn't disappeared into an impersonal decentred empire. It is still the greatest centre of capitalist power in the world. The present crisis is interesting from that point of view because of course our leaders appeal to universal values-'infinite justice' and 'enduring freedom'-but it is clear that one of the US's major preoccupations that, whatever military operations take place will be assertions of US national power. This is partly because they don't want to be confined by multilateral structures. Moreover, after the humiliation of Manhattan and the bombing of the Pentagon itself they have to assert US power as brutally and ruthlessly as possible.

That just highlights what I think is still an endemic feature of contemporary capitalism-the conflicts internal to the capitalist class and the way in which the different segments of the capitalist class continue to rely on the power of their own nation state. This is reinforced if we look beyond just western capitalism, and look at the geopolitical rivalries between the US, Russia and China. It is clear that a big segment of the US establishment sees China as the big potential economic and strategic threat and is preparing all sorts of strategies to contain and control China. Now this is not the world of imperialism of 1914 or 1945, but a crucial element of the classic theory of imperialism which is the division of the world into rival centres of economic and political power. To the extent that Hardt and Negri say we have moved beyond that I think they can mislead us.

Just to come back to the other important question which is that of organisation and leadership, I am not sure how much we are using different words to say the same thing.

We have learnt enormously from the movement that has developed since Seattle. In lots of ways how we work today is radically different from how we did four or five years ago. The movement has changed us, and any political current that doesn't learn from the movement is dead. Of course it is true that you earn the right to lead and it is something that has to be continually won. Any organisation or current that simply asserts its right to lead, or bases its claims on its past performance, can't be part of the living movement. So these are points on which we are agreed.

Luca Casarini I think it is important for me to be a leader, but not to say it. It's important that others say you lead and not to say it yourself. For us it is not important just to say it, but also to do it.

This discussion about empire and imperialism is very interesting. All the things you were saying are true, but this doesn't contradict the concept of empire, as empire contains imperialism within it. It is not necessarily a reality but it is a tendency. This helps to understand that nothing is obvious any more. For example it was impossible to predict that there would have been a Keynesian reaction after the World Trade Centre. And it wasn't obvious that they were going at first to form this international anti-terrorist club before bombing Afghanistan. This debate helps us to understand that the capitalist revolution is always driving forward, and we have to keep up with it.

To turn now to the issue of daily political activity-we found that it is very useful to talk about empire when we're talking about globalisation because those people who stand in the classic tradition of analysing American imperialism are those who believe in vanguards and the masses. They are also the same people who believe these movements, the anti-capitalist movements, are reformist movements, and so it's very useful to us to introduce new categorisations.

We also need to show there are great contradictions within all the processes we are talking about. We need to find not only a universal idea of the movement, but also a universal idea of the system. For example we need to go beyond the idea of the First, Second and Third World, and this conceptualisation will be very useful when we have to deal with the issue of permanent global war which is another important issue in terms of the whole discussion about globalisation. This movement up to now had not discussed war-in reality it talked about the market, the political government of the market, about finance and money. It lacked a very basic discussion about the army.

The other thing is this issue of permanent global war. Without war all of this process cannot be held together. On this subject it is important to go to the Zapatista leader Marcos when he was talking about the fourth war-that is, low intensity war as a permanent condition of war. This theorisation has been very useful to us in trying to understand this current move towards war and how to deal with the issue of peace-all this changes the very concept of peace. Because if we have permanent global war the very issue of peace needs to be completely rethought, because peace no longer means the absence of war. It will be very interesting to see what you think of this in terms of low intensity warfare.

Alex Callinicos Whether or not we accept any more the distinction between the First, Second and Third Worlds, it is certainly true that the period of peace since 1989 has been one in which maybe there is peace in the rich countries but in large parts of the rest of the world there are terrible wars. Just one example-in the Democratic Republic of the Congo there has been a war essentially over resources, over the country's enormous wealth, in which two and half million people have died since 1998. No three-minute silence for them. Of course what happened in Manhattan is a great atrocity but there is a very real sense in which it was a moment in which the wars in the rest of the world suddenly spilled over into the very heart of the system. So of course the US ruling class have to drive it back to where it really belongs, so it doesn't threaten the core of the system.

So it is true that the idea that we live in a pacified world is an obscenity. This raises very important questions about the relationship between all these wars and the very structure of the system. It is a very important test of the movement against capitalist globalisation because Seattle came after the Kosovo war, and the movement as it began didn't have to take a position about war and imperial power. The real test now is, can the movement understand that to be an effective anti-capitalist movement it also has to be an anti-imperialist movement. I think the signs so far are very positive. If this thing had happened immediately after Seattle I don't know what would have happened. Because of the cumulative experience, and in particular the experience of Gothenburg and Genoa, people were already learning that capitalism isn't just about money but also comes with guns. So I think there is a good prospect that if we respond well to this crisis this movement can emerge stronger not just in terms of support but also have a deeper political understanding.

Luca Casarini is an Italian activist prominent in the Tute Bianchi (white overalls) movement. Alex Callinicos is a leading member of the SWP and professor of politics at York University.





Glossary of Definitions: Economic Terms and Assumptions


A list of definitions should be prefaced by an explanation of the some of the different Schools of Thought within Economics. The Chicago School economists (Deepak Lal, Friedman, Bauer etc.) believe in the invisible hand, that everything should b e left up to market forces and that all government intervention is subject to failure, so they argue for globalisation, privatisation, corporatisation and investment in human capital. Theorists such as Bauer also believe that the 3rd world debt crisis is a misnomer that it is a rational response by debtors to reluctance of creditors to press for payments. Keynesian economics argue for the use of both market forces and government intervention to improve economic status. Within this group are Institutionalists, such as Todaro, who advocate only government intervention in changing societal institutions. Then there are the Counter-counter Revolutionaries in development theory such as Krugman, Toye, Joseph Stiglitz, who analyse both government and market failure and specifically, corruption in governments.

Perfect Competition is the ultimate objective of global capitalists and economic rationalists alike on both a global and local level. But this flawed objective is both unrealistic and destructive. This can be proven by mere reference to the necessary assumptions that are required to adopt to achieve this goal:

Assumption of Perfect Competition: Price = Marginal Cost
Constant Returns to Scale: You can get positive, negative and constant returns to scale. Constant is when you invest £12 for example and make a profit of £12, which implies no risk or uncertainty.
Not technological Progress: This is an assumption, simply because it would alter the ratio of labour to capital.
No transport Costs: Another simplification to fit an unrealistic economic model!
Factor mobility within organisations, but not between different individual organisations.

NIC's: These were the Newly Industrialised Countries: ie: The Asian Tigers: China, Singapore etc.

ROG: Rate of growth. This can be defined as Gross Domestic Product growth or growths in savings, depending on the theoretical background you are coming from.

Trade Liberalisation: Removal of obstacles to free trade, such as quotas, nominal and effective rates of protections and exchange controls.

LDC's: Less Developed Countries, such as the nations of Africa and Asia. The definition fails to include parts of otherwise developed countries, where the people are living in 3rd world conditions of poverty, such as in Australia within many Aboriginal Communities.

G, S, Y, L, K, I, R, r: Economic symbols for: Government Spending, Saving, Income, Labour, Capital, Investment, Exchange rate and Interest rate respectively. These symbols are often applied to practical and mathematical economic models.

Economies of Scale: Reductions in the cost of producing a unit of a product that occurs as the output increases.

Tariff Protection: This is where a tariff or an extra cost is placed on imported goods coming into the country, the objective being to protect produces of products within the exporting country against a forced downward price spiral, making it difficult for them to compete against big, rich foreign companies who can afford lower prices. The effect of the tariff is dependent on the type of tariff.

Opportunity Cost: The best foregone alternative. For example, there is a high opportunity cost of a subsistence farmer in Ghana to change to exporting manufactured goods, because they would not have either the capacity or resources to do so.

Comparative Advantage: This is very important in the discussion of trade theory. This is when a country has an advantage if it can produce a product at a lower opportunity cost than any other country. The Neoclassicists argue that LDC's with a comparative advantage should be subject to free trade.

Debt for Nature Swaps: The exchange of foreign debt held by an organisation for a larger quantity of domestic debt that is used to finance the preservation of a natural resource or environment in the debtor country.

Dependence: A corollary of dominance: A situation in which the LDC's have to rely on developed-country domestic and international economic policy to stimulate their own economic growth. Dependence can also mean that the LDC's adopt developed (Western) education systems, technology, economic and political systems, attitudes, consumption patterns and dress etc.

GATT: General Agreement on Tariffs and Trade. This was a dodgy international body set in 1947, to probe into the ways and means of reducing tariffs on internationally traded goods and services. Tariffs on primary products were drastically slashed in 1964. Member countries signed the Uraguay Round Agreement in 1994 and became the World Trade Organisation.

International Monetary Fund: (IMF): An autonomous international financial institution that originated at the Bretton Woods Conference of 1994. It's main purpose is to regulate the international monetary exchange system, control fluctuations in exchange rates, in a bid to supposedly alleviate sever balance of payment problems. It does this by using a "one size fits all" kind of process, in the mind set that the economic situation: ie: poverty has to get really worse, before it can get better. The four components of a typical stabilisation program are:

1. Removing tariff protections and increasing exports, to try and devalue the official foreign exchange rate.
2. Reduction in the exchange rate: ie: The value of the pound would not be as strong in comparison to the value of other currencies. This would be so as to reduce demand for foreign imports, because they would be more expensive comparatively.
3. A stringent domestic anti-inflation program, consisting of:

a) Less bank credit, raising interest rates, to control for inflation and attract foreign investment. This would increase the likelihood of bankruptcy, corruption and a worsening of the economic situation. (Stiglitz).
b) Control of budget deficit, often through drastic reduction in Government spending, which proves to hit the lower to middle income people particularly: Ie: Less government spending on education, health etc.
c) Either Control of wage increases or wage reduction;
d) Dismantling various price controls and ensuring a freer market so big business can go to town exploiting the poor even further.
4. Encouragements of foreign investment, opening up the economy to international trade so Multi-National Corporations can crush them and developed country Governments.

To receive loans, or negotiate additional credit, countries were required to adopt some or all of the enumerated stabilisation polices. More than 10 countries did this in the early 1980's and there were anti-IMF riots in Venezuela and Nigeria in the early 1990's. "They strike at the heart of development efforts by disproportionately hurting the lower and middle income groups. Third World leaders often also consider these measures a double standard; Harsh adjustment policies for LDC debtors and no adjustment of the huge budget or trade deficits for the world's greatest debtors: The United States" (Todaro, 2000; 516). IMF is merely an arm of the rich industrialised nations; stabilisation policies are measures designed primarily to maintain the poverty and dependence of the Third World nations, while preserving the free trade globalisation market structure for the rich industrialised nations.

Market-friendly Approach: World Bank notion that successful development policy requires Governments to create an environment in which markets can operate efficiently and to intervene selectively in the economy in areas where the market is inefficient.

Invisible Hand: A concept originating from Adam Smith (an old, boring, dead economist) in 1776 that suggests that: The unbridled pursuit of individual self-interest automatically contributes to the maximisation of the social interests. So, essentially, if we all pursuit profit and consume as we please, supposedly the resulting economic growth will benefit everyone.

Tied Aid: Foreign aid in the form of bilateral loans or grants that require the recipient country to use the funds to purchase goods or services from the donor country. This is another manipulation of the rich industrialised (G7) countries in maintaining their dominance over the Third World.

Third World: This represents 145 developing countries of Asia, Africa and the Middle East. It is characterised by low levels of living, low-income per capita, low education provisions, poverty and starvation. This is real people, with real problems, who don't deserve to be wealth reserves for cheap labour or economic experiments for rich countries!

World Bank: The WB is an international financial institution, owned by 181 member countries and based in Washington D.C. Voting power depends on financial contributions, proportional to economic size of the country. So essentially, the G8: Japan, Italy, Germany, US, UK, France, Canada, Russia countries hold over 50% of the power within the World Bank.

It's main objective is supposedly to provide development funds to the Third World nations in the form of interest bearing loans and technical assistance. The World Bank has developed Structural Adjustment programs such as that implemented in Argentina. Unlike the IMF, such programs actually encourage an increase in Government spending and reforming institutional arrangements to support the adjustment process. Otherwise, the program involves reducing tariffs, liberalising trade and encouraging foreign investment.

Washington Consensus: This was originally the development framework of liberalising, privatising and globalising, advocated by the IMF, World Bank, WTO, and Thatcherites. For a summary for the types of policies advocated, refer the IMF policies, but include the mass privatisation of state owned enterprises.

World Trade Organisation (WTO): Geneva based watchdog and enforcer of the 1995 agreement on free trade.

References: Todaro, M.P. (2000) Economic Development, Reading, Mass: Addison and Wesley



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