Posts Tagged ‘globalisation’
All the substantial issues confronting the working class today — the rapid growth of social inequality, a tattered veneer of ‘democracy’ behind which ever more rapacious forms of neo-liberal economics rule over peoples and the environment, the explosion of police violence within countries (as in the USA) and of armed conflict between countries and regions — all these are bound up with the struggle against new forms of dominance.
The dangers of war loom more menacing today than they did in 1914 and in 1939. But for many workers in many countries on this May Day in 2015, war has never gone away. It persists because of the division of the world into what are called competing economies (as if ‘country’ and ‘economy’ are synonymous: they are nothing of the kind). On May Day, the subordination of the productive forces of households, families, communities and villages to the corporate and financial elite is protested and revoked.
The world of work has been reshaped by globalisation. Today, much of global trade involves global buyers and suppliers, which has implications for workers’ welfare. Multinational enterprises source from a network of suppliers, who, in turn, compete with one another to obtain business. The task of providing compensation is therefore left to the supplier of the product or service, who is under considerable pressure with regard to the wages and conditions they can offer workers.
There are no mechanisms within the political system (there are scant differences between political systems installed today, for their methods are so similar) through which any of the grievances of the vast majority of the population can find expression. These democratic demands should be linked to programmes that advances the social rights of the working class. Chief amongst these must be a massive redistribution of wealth, which has been snatched away by what is mockingly called the ‘market’, itself a ghastly amalgam of banks, technocrats, commodity speculators, global finance capital, lobbyists and consultants, the multi-lateral lending organisations (like the World Bank and the Asian Development Bank), and all their cronies and cabals fostered by politicians.
Technological advancements and the expansion of the internet have caused temporal and physical distances to vanish. They have accelerated sweeping and damaging changes in the organisation of production and work. There has been a growth in the number of hours that enterprises operate (24 by 7 has become a household term) and therefore in the times when workers at all levels of service and production must be available to work. If they are not they are summarily sacked, fired, dismissed.
Since the 1980s, but especially in the 2010s, under the pressures of ‘competition’ but in fact as a strategy to create an ever-greater pool of consumers who are otherwise disenfranchised, companies and corporations run by the financial puppeteers have demanded greater flexibility in production and organisation. This has abandoned the traditional employment relationship which, for all its faults, has been one that has survived the Modern Era. It was the basis for labour protection measures. No longer. Non-standard employment arrangements have become common features in what are now cynically called labour markets, no matter where they are – Argentina, Micronesia, Scandinavia, sub-Saharan Africa. Work has become unstable and frighteningly insecure for families. Work has in fact been deliberately caused to become chronically unpredictable.
A concerted assault on the domination of our societies by this putrid but dangerous financial aristocracy is needed. For this enemy is determined to maintain its stranglehold through violence and through the punishment of poverty. This grip over our economic and political lives must be broken, for only when our societies are based on public ownership and democratic control of the forces of production and the means with which to safeguard ecology, natural resources and cultural values can genuine ‘development’ (a grossly abused term) take place.
Pope Francis has issued, a month before Christmas, a blunt and plain message to the political and financial masters of our societies. That message is: the economics of exclusion and inequality must stop.
The message comes early in his ‘exhortation’ (called ‘Evangelii Gaudium’) and which has just been released by the Vatican. You will find it in Chapter 2 which is titled ‘Amid the crisis of communal commitment’. The main body of the exhortation has a lot of the usual evangelical language that such messages from the Vatican typically contain, but this chapter rings stark and true.
Francis has begun this section with: “It is not the task of the Pope to offer a detailed and complete analysis of contemporary reality, but I do exhort all the communities to an ‘ever watchful scrutiny of the signs of the times’. This is in fact a grave responsibility, since certain present realities, unless effectively dealt with, are capable of setting off processes of dehumanisation which would then be hard to reverse.”
He gives a nod to the proponents of technological remedies to many of our contemporary problems: “We can only praise the steps being taken to improve people’s welfare in areas such as health care, education and communications.” And then gets to the root of the issue with “at the same time we have to remember that the majority of our contemporaries are barely living from day to day, with dire consequences. A number of diseases are spreading. The hearts of many people are gripped by fear and desperation, even in the so-called rich countries. The joy of living frequently fades, lack of respect for others and violence are on the rise, and inequality is increasingly evident”.
“It is a struggle to live and, often, to live with precious little dignity. This epochal change has been set in motion by the enormous qualitative, quantitative, rapid and cumulative advances occurring in the sciences and in technology, and by their instant application in different areas of nature and of life. We are in an age of knowledge and information, which has led to new and often anonymous kinds of power.” This is a complaint as plain as any we have seen from those suffering from the effects of climate change, from the forced economics of austerity, from the land grabs and the perversions of democracy. It is possible that in the last sentence, Francis has also warned against the global spying (by the USA and its feckless allies) which included the Vatican too.
In the sub-section titled ‘No to an economy of exclusion’ Francis has made plain his opposition [get the English pdf here] to the current systems of power and control:
“Just as the commandment ‘Thou shalt not kill’ sets a clear limit in order to safeguard the value of human life, today we also have to say ‘thou shalt not’ to an economy of exclusion and inequality. Such an economy kills.”
“How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion. Can we continue to stand by when food is thrown away while people are starving? This is a case of inequality. Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalised: without work, without possibilities, without any means of escape.”
“Human beings are themselves considered consumer goods to be used and then discarded. We have created a ‘throw away’ culture which is now spreading. It is no longer simply about exploitation and oppression, but something new. Exclusion ultimately has to do with what it means to be a part of the society in which we live; those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the ‘exploited’ but the outcast, the ‘leftovers’.”
And in one angry paragraph, Francis effectively sends packing the army of macro-economists and financial manipulators who continue to claim that constant growth (GDP, economy, consuming, and so on) brings people out of poverty thanks to the ‘free market’.
“In this context, some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralised workings of the prevailing economic system. Meanwhile, the excluded are still waiting.”
“To sustain a lifestyle which excludes others, or to sustain enthusiasm for that selfish ideal, a globalisation of indifference has developed. Almost without being aware of it, we end up being incapable of feeling compassion at the outcry of the poor, weeping for other people’s pain, and feeling a need to help them, as though all this were someone else’s responsibility and not our own. The culture of prosperity deadens us; we are thrilled if the market offers us something new to purchase. In the meantime all those lives stunted for lack of opportunity seem a mere spectacle; they fail to move us.”
This is indeed revolutionary material from the Vatican. Now let’s see what effect it has on the suits in the G20, the banking parasites, the stock marketeers, the land grabbers, the ecological criminals in all our countries.
How much damage do the financial and ruling elites of the western power blocs think they can get away with? A great deal, it is clear, judging from the stoutness of the defences raised to protect the UNCTAD (United Nations Conference on Trade and Development) and its analytical mandate.
One of the less conspicuous UN agencies, UNCTAD was set up in 1964 to support developing countries to strengthen their weak position in international economic structures, and to design national development strategies. As Martin Khor, Executive Director of the South Centre, explained, it became a kind of secretariat on behalf of developing countries, providing a small pro-development balance to the huge organisations dominated by the developed countries, such as the OECD, the IMF and World Bank.
In the past 20 years, the developed countries (OECD) have tried to curb the pro-South orientation of the UNCTAD secretariat and its many reports. The inter-governmental discussions became less significant, while UNCTAD’s pro-development mission was increasingly challenged by the developed countries.
What is this mission? UNCTAD says it promotes the development-friendly integration of developing countries into the world economy, that it has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.
Note the stress on development, and not market, not trade and not finance. This is the problem for those who would seek to scuttle UNCTAD. It is a trend that seemed to have subsided in the past decade, but in the past two months, the meetings in Geneva to prepare for UNCTAD XIII, some developed countries have reportedly attempted to dilute the areas of future work of UNCTAD, to the frustration of the G77 and China.
Hence the statement, which is now widely available on the internet, by civil society organisations which have gathered in Doha, Qatar, for UNCTAD XIII meeting (21-26 April), which has said:
“The importance of UNCTAD’s work has been highlighted by the global financial and economic crisis and its continuing catastrophic effects on peoples and economies. Over the years while the Bretton Woods twins led the cheerleading for unbridled liberalisation and deregulation of markets and finances which produced the crisis, UNCTAD’s analysis consistently pointed out the dangers of these policies. The economic turmoil provoked by the crisis makes UNCTAD’s mandate and work even more relevant.”
“CSOs in Doha demand that UNCTAD’s crucial research and analytical work especially on 1) the global financial crisis, and 2) other development challenges including those arising from globalisation be maintained. UNCTAD serves as an important countervailing forum where the interests of developing countries can be paramount when trade, development and interrelated issues are being discussed. This value and its proven track record is why the attack on UNCTAD’s mandate has to be resisted.”
The CSOs in Doha are concerned that group of countries which includes Japan, USA, Switzerland, Canada, South Korea, Australia, New Zealand and which also includes the European Union (EU) are so opposed to UNCTAD’s vital analytical and advisory work on finance and responses to the crisis that they are refusing to even reaffirm UNCTAD’s mandate as agreed in Accra.
What is clear is that this group now sees UNCTAD’s work as a global defence against the effects of new economic policies, which in their many mutations have since the early 1980s heaped unspeakable misery on hundreds of millions around the world, in the South. These policies, as UNCTAD has also helped show, have led directly and indirectly to pervasive and chronic economic inequality, insecurity, unemployment and under-employment, casualisation, informalisation, a heightened level of labour exploitation, the emasculation of protective factory acts and labour laws.
That is why the civil society organisations present in Doha for UNCTAD XIII contrasted the interest the major powers have shown in strengthening the IMF and World Bank (and in using bodies of questionable accountability such as the G20 to block truly multilateral responses to the crisis of neoliberalism) with their negative attitude to UNCTAD. They noted that the IMF and World Bank continue to peddle policies which caused and have been discredited by the crisis. And they have demanded that the OECD-oriented group of would-be UNCTAD wreckers keep their hands off the organisation.
The mantra of urbanisation has been at the forefront of the exploitative and socially destructive economics of the last 20 years.
In recent years it has been chanted loudest by the global consulting firms – the same ones which audit the books of the banks that collapse, taking small savers’ money with them, and the books of the Wall Street firms, which destroy jobs and abet the plunder of resources the world over.
Why are they saying this? Let’s look at what one of these firms, McKinsey, has been saying about urbanisation (this firm has concentrated heavily on pushing urban finance, and is lobbying hard with Asian governments to do as it recommends).
“Asia’s growing economic power manifests itself in many ways,” McKinsey has said. “Back in 2007, for example, only 8 of the top 50 urban areas (by GDP) were located there. Half of global GDP came from the developed world’s top 380 cities, with 20-plus percent from just 190 North American ones.”
Over the next 15 years, McKinsey has said, the urban centre of gravity will move south and east. In the geography of globalisation, South means South Asia and India, East means China.
By 2025, this forecast posits that Asia will have upward of 20 of the top 50 cities, and Shanghai and Beijing will have GDPs higher than those of Los Angeles and London, according to this city-obsessed firm.
Why are they saying this? Pushing urbanisation means getting into one administrative unit more workers and more consumers at once. It means markets for goods and services (think finance, insurance, health, education) that are easier to reach and easier to shoehorn into uniform regulations.
It also means creating nuclei for rural migrants, who will be gradually but inexorably pushed out of their villages as the costs and burdens of smallholder farming become more unbearable, and as the levels of rural food and fuel inflation become more unendurable.
The success of the urbanisation that McKinsey and its peers and the collaborators in government want depends on the steady depopulating of the rural districts of our countries, the abandoning of land that will then be taken over by corporate and industrial agriculture which will then supply crop monocultures to the food processing industries and retail systems designed to feed the miserable millions in crammed, unlivable cities.
Not a week goes by nowadays without one high-profile institution or high-powered interest group directing us all to be part of the ‘new, green economy’. That’s where the next jobs are, where innovation is, where the next wave of financing is headed, where the best social entrepreneurship lies. There are the big inter-governmental organisations telling us this: United Nations Environment Program, UNCTAD, OECD, International Energy Agency, the big international lending agencies like the World Bank and Asian Development Bank. There are big think-tanks telling us the same thing – backed up by hefty new reports that are boring to read but whose plethora of whiz-bang charts are colourful. There are big companies, multinationals and those amongst the Fortune 500, also evangelising the new green economy and patting themselves on the back for being clean and green and so very responsible.
What on earth are they all talking about? Does it have to do with us average, salaried, harassed, commuting, tax-paying types who are struggling with food inflation and fuel cost hikes and mortgages and loans that break our backs? Are they talking to our governments and our municipalities, who are worried about their budgets and their projects and their jobs too?
Here are a few answers from working class Asia. Let’s start with restating a couple of trendlines. One, the era of growth in the West is over. Growth is Asia is what is keeping the MNCs and their investors and bankers and consultants interested, and this means China and India (also Brazil, Russia, South Africa, Indonesia). Two, the environmental consciousness which began in the 1970s to spread quickly in the West led to many good laws being framed and passed. These were responses to the industrial and services growth in the Western economies. As globalisation took hold, people in less industrialised countries – ordinary citizens – saw what had happened in the West and learnt from their experiences with industrialisation. Green movements took root all over Asia and South America, protests were common, confrontations just as much, and global capital found itself being questioned again, even more fiercely.
These are the two major trends. The forces of production want to move much further into what used to be the ‘developing’ world, but want to meet much less resistance. That’s why they appeal to the consumer minds of China, India and the other target countries – you need jobs, homes, nice cars, big TVs, cool vacations, credit, aspirations, and lifestyle is what the messages say, whether they’re from telecom companies or condominium salesmen. But it’s hard to market all this stuff – real stuff, virtual stuff – to people who are still struggling to make ends meet.
That’s where the ‘new, green economy’ tagline and its earnest-sounding philosophy comes in. “The main challenges to jump-starting the shift to a green economy lie in how to further improve these techniques, adapt them to specific local and sectoral needs, scale up the applications so as to bring down significantly their costs, and provide incentives and mechanisms that will facilitate their diffusion and knowledge-sharing,” said one of these recent reports. Look at the text which contains all the right buzzwords – ‘scale up’, ‘jump-start’, ‘applications’ (that’s a favourite), ‘knowledge-sharing’, ‘local’.
This makes the ‘old economy’ sound good but changes nothing substantial on the ground, or on the factory shopfloor or for the tens of thousands of little manufacturing units that do small piecework jobs for the bigger corporations up the chain. The world’s business philosophy has changed drastically even without the impact of environment and energy. To drive home this point, it has been a long time since we heard anything like ‘industrial relations’, and that alone should tell us how far the dominance of capital has reached, when labour, whose organisation gave the West its stellar growth rates in the 1960s and 1970s, has now become all but ignored. This is because the dominant interests associated with capital have insisted, successfully for investors and for pliant governments, that the manufacturing firms break loose from the industrial relations moorings they had established. The restructuring of firms to emphasise leaner and meaner forms of competition – as the ruthless management gurus and greedy consulting agencies instructed – was in line with market pressures that are viewed by the powers-that-be as crucial to the revitalisation of the economy.
Read their greenwash carefully and the control levers are revealed. “Further innovation and scaling up are also needed to drive down unit costs. Technologies will need to be ‘transferred’ and made accessible, since most innovation takes place in the developed countries and private corporations in those countries are the main owners of the intellectual property rights covering most green technologies.” So says ‘World Economic and Social Survey 2011: The Great Green Technological Transformation’ (UNESCO, Department of Economic and Social Affairs). Rights and access are built in from the start, as you can see.
And yet it is this very system of production, of the arrangement of capital and of the effort to weaken working regulations that is now talking about the ‘green economy’. Why do they even imagine we should believe them? They are the ones who have remained locked into the fossil fuel economy and who have partnered the enormous influence of the finance markets, who have followed every micro-second of the way the dictates of capital flows and what the market investors want in their endless quest for greater profits in ever-shorter cycles of production. For the major business of the world, ‘green economy’ is yet another route to super-profits and the consolidation of both forces of production and masses of consumers. The difference between now and the 1970s is that today they are able to successfully enlist the apparently authoritative inter-governmental organisations with their armies of economists and social scientists and engineers, to support this new profiteering. Only now, the cost is planetary.
Under the presidency of France, the G20 called a meeting of its member countries’ agriculture ministers to consider the food production and food price problems. They have releaed a “ministerial declaration”. This declaration is being called a “renewed commitment” to tackling hunger by part of the financial media, or is being called “weak” and a mere restating of positions by the more critical, or is being called an empty document full of vague promises and no reform by some activists.
In fact, it is a strong statement alright. It supports the current model of agri-business, of international investment in arable land, it supports the operations of the global agriculture commodity markets and trading systems, and it ensures that the flows of finance and capital between the world’s financial markets and the commodity markets will continue with less restrictions rather than more control.
All this is done in the name of small farmers and poor consumers. They have talked about a new global agriculture market information system (Amis) so that governments can share better data about the state of food stocks and global production. This is nonsense – it is the bankers, food traders, commodity funds, retail food industry and foodgrain exporters who will use this new knowledge and data. They imply that the Food and Agriculture Organisation (FAO) will run the Amis and they will exploit the new data. Private sector players, such as the large grain traders for whom knowledge of stocks and harvests represent a key competitive advantage, are simply ‘urged’ to participate – they will, at a profit which further loots the urban and rural poor.
There are five main objectives the G20 ministers made commitments to. However, like earlier inter-governmental statements over the last few years concerning agricultural production and access to food, it’s always safer I find to consider what is being meant here.
If we look at the five objectives and take the first:
“i. improve agricultural production and productivity both in the short and long term in order to respond to a growing demand for agricultural commodities”
There is a growing demand for “agricultural commodities”. So investment and research and trade arrangements and enabling policy are to be deployed to help fulfil this kind of demand?
“ii. increase market information and transparency in order to better anchor expectations from governments and economic operators”
Do governments and “economic operators” (what are these? food traders? commodity funds? integrated retailers?) have the same kinds of expectations? Is better “market information and transparency” to benefit only government and “operators” or do food producers and consumers also require them?
“iii. strengthen international policy coordination in order to enhance confidence in international markets and to prevent and respond to food market crises more efficiently”
Confidence in international markets may be a concern for governments and economic operators, but in what way are they essential for food producers and consumers, who have since late 2007 suffered through price spikes amplified by these same international markets? The implication here is that responses to “food market crises” can be provided by – among other measures such as policy direction – these markets, which I find troublesome especially given the evidence since 2007.
“iv. improve and develop risk management tools for governments, firms and farmers in order to build capacity to manage and mitigate the risks associated with food price volatility, in particular in the poorest countries”
What are these risk management tools? Are they commodity hedge funds? Are they trading agreement? Are they bilateral agreements and FTAs? Are they commodities exchanges? Who will wield these tools? In poor and the poorest countries farmers have little or no capacity to manage and mitigate existing risk – they surely cannot bear the additional risks brought about by price volatility, but in what way will these tools help and function?
“v. improve the functioning of agricultural commodities’ derivatives markets.”
To what end? Agricultural commodities derivatives markets tie up crop production and food-in-stock, but for whom do they do this? If the functioning of these markets is to be “improved”, who will benefit from this improvement? Will it be the smallholder farmer and if so in what way? How many farmers of the South are directly connected to the agricultural commodities derivatives markets as beneficiaries? Are consumer coops connected?
These are some questions that come to mind when reading these five objectives. I see that Sarkozy has stated, “”We all know that agricultural production is insufficient to meet demand”. This may be so, for certain crops in certain regions, but against the background of these five objectives, I have to question: demand from whom or what and to what end?
Here are a few sentences from paras 18 and 19 of the ‘ministerial declaration':
“18. We commit to creating an enabling environment to encourage and increase public and private investment in agriculture. In particular, we stress the need to support public-private partnership on investments, based on a value-chain approach, for services (such as access to financial services, agricultural education and extension services), and for infrastructure and equipment for production (such as irrigation), for agroprocessing, for access to markets (such as transport, storage, communication) and for reducing pre and post-harvest losses.”
“19. We encourage countries, international organizations and the private sector to increase investment in developing countries agriculture, and in activities strongly linked to agricultural productivity growth, food security and generation of income in rural areas, such as agricultural institutions, extension services, cooperatives, research, roads, ports, cold chain, power, storage, irrigation systems, information and communication technology, climate change mitigation and adaptation. We also encourage them to enhance public-private partnerships in this field, in particular to improve market and value-chain operators’ cooperation and procurement from smallholders.”
This is a direct and unambiguous call for greater industrialisation of agriculture, for the strengthening of the tools of globalisation that have given rise to the agri commodity markets and products like derivatives, for the intensification of corporate R&D in agbiotech and with the support of national agricultural reseach systems in various countries – and at the likely cost of traditional knowledge and ecological approaches to cultivation. This sounds to me like an unambiguous statement of support for the food trading and food retail industries and their vast ‘verticals’ (as they call the integrative links these days), and finally for the systems of finance and banking that undergird the globalisation of food.
The OECD (Organisation for Economic Cooperation and Development) has just released its Survey of India, and has said that “India now has the opportunity to move towards sustained and socially inclusive double-digit growth if the right policies are put in place”. The OCED survey said India’s economy has ranked among the best performers over the past decade, and poverty has been falling faster than in many other emerging economies. Pending a detailed reading of the report I can’t see how “best performer” and “falling poverty” can be applied to India, but the social and environmental dimensions of India’s so-called eocnomic growth may not be within the OECD’s scope in such a survey.
OECD Secretary-General Angel Gurría presented the Economic Survey of India in New Delhi and there said: “Policymakers are to be commended on the remarkable catch-up achieved in recent years, making India one of main driving forces of the global economy. The priority given to more socially inclusive economic growth is appropriate and further reforms are needed to achieve it.” There are more such conceptual conundrums here – catch up with who? And for what? What “socially inclusive” growth is Gurria talking about – India has the world’s largest population of malnourished children and the world’s largest population of hungry people. This has been so for the entire period that the OCED said India was “catching up”.
To ensure strong growth continues and is sufficiently inclusive, the government needs to target public expenditure better on the poor, the OECD has said. “Although high growth has reduced poverty, progress could have been faster. Hundreds of millions of people still live below the official poverty line. Malnutrition and poor health are still widespread.” Evidently the OECD India Survey 2011 team saw no contradiction between what they have praised and what exists. Against this backdrop, the report advocates a strengthened welfare system and improved access to health care. “Government spending on health is only around 1% of GDP – among the lowest rates in the world. Private health care provision is increasing but quality is highly variable. Better regulation and oversight is needed.” This is true, but the Survey’s objectives lead all solutions away from more and better public healthcare.
The report said that around 9% of GDP is spent on energy and other subsidies, most of which fails to reach the poor, and that diesel subsidies should be phased out. For other energy products, such as kerosene and LPG, susbidies should be transformed into cash payments targeted to the poorest people in society. The government needs to ensure that its plan to shift kerosene and fertiliser subsidies into direct cash transfers is implemented quickly. Here the roll-out of a Universal Identity Number will help ensure payments go to the right people.
The recommendations in this para are full of threat. A quick look at the full Survey itself shows that there is special mention made of the fuel subsidy and the targeted public distribution of foodgrain. If the free marketeer reformists were to have their way, these would both be scrapped overnight, to be replaced by a weekly or monthly dole, transferred electronically and validated by a new national identification number which is in theory supposed to prevent fraud and exclusion. This is dangerous for the poor, because it makes them directly vulnerable to the worst symptoms of profiteering and corruption – already rampant despite safeguards – and because it removes the responsibility from the state for providing good quality and cheap social services and provisions of daily living. In this, the OECD Survey sounds exactly like the IMF.
The OCED report has otherwise welcomed the planned introduction of a nationwide goods and services tax and suggested that in order to keep the overall rate low, the base should be as wide as possible (there go more paisas from the cash transfer to the poor). “Further fiscal consolidation is also called for, making more funds available for private investment” – which means more cutting of the health, education and rural development programmes. “Cutting red tape for businesses and further lowering barriers to trade and investment will help both companies and households. The report also notes that while progress has been made to improve infrastructure, even greater investment in this area is necessary to boost growth.”
The Survey has said that strengthening the financial system and promoting access to financial services is essential for strong and inclusive growth. (We’re quite sick and tired of hearing about ‘inclusive growth’ when the Indian government and its foreign advisers do all they can every single day to prevent it.) The report noted that many Indians still lack access to bank accounts although microfinance is improving opportunities in many communities. “The financial sector proved resilient during the global downturn but there remains scope for greater competition.” Hear, hear.
The Survey has said that education has been given high priority by India’s central and state governments and enrolment continues to grow fast – we call them degree factories for the globalisation mill. The report recommends more effective government regulation and funding. Incentives and professional development opportunities for teachers need to be strengthened while student loans for higher education should be more widely available.
Now I expect the usual round of endorsement, referencing and studious quoting to begin. Within a few months, the recommendations of the OCED India Survey 2011 will assume an oracular hue, never mind the reactionary and anti-poor real nature of its advice. The multilateral lending institutions – the World Bank, the IMF and the Asian Development Bank – will cite the Survey repeatedly. So will state governments in India and the central government. The armoury of those who assault the poor and the marginalised of India has been strengthened by a new weapon – this is the OECD contribution to the people of India.
This is a light little article, written for the Khaleej Times, on India and its people.
In the early years of Asian globalisation, the cry amongst the investors and business punters was “You can’t do business in Asia without India in your plans”. (They were already putting up factories in China.) Being, as punters usually are, somewhat dim but enthusiastic, these blokes – cunning bankers, makers of third-rate motor cars, purveyors of skin whitening creams, assemblers of consumer trinkets – decided that India was The Next Big Thing and ran thither.
It has been about a decade since all that began. In these 10 years, India has become richer – at least that’s what its government tells Indians, the poor and rich alike – and India is a superpower, at least according to cricketers and Bollywood film producers. It’s also a superpower for manufacturers of disposable nappies, but I don’t want to be impolite.
At some point, quite a few Indians who lived in the USA (and other, stranger, parts) decided that it might be a good idea to go home and see what all the fuss was about. Some of them packed up their Dodge minivans and Hoovers, gave the dog away, stopped at duty free on the way in, and looked around for Opportunity. Silicon Valley meanwhile returned to farming turnips and beetroots or whatever it is that happened there before the IT boys took over. Once at home, in the towns and cities of Gujarat and Andhra Pradesh and the online territory of Bangalore, they looked around. And saw dusty roads, grimy health clinics, piles of garbage, lazy policemen, burst water pipes, and lots of poor people. Not much had changed had it?
But it had. And so had their neighbours and their fathers-in-law and so had India’s chambers of commerce and its per capita income. Sure, there was heat and dust and stray dogs, but there was opportunity too. Looking around, they found that some of the world’s biggest and fastest growing IT companies were right where they had last seen a couple of coconut groves. Looking still closer, they found that state government officials had stopped sitting around drinking tea and pretending to push files and actually got some work done. This was remarkable. Rather as remarkable as imagining India could win a cricket world cup. But that too has happened.
There were flies and mosquitoes, insane political riots and infuriating power cuts. But they found that their cousins and friends and the tea stall owner down the road weren’t used to putting up with it all any more. No, the Indians at home had organised themselves (noisily, chaotically and with great garglings of sweet tea) and Got Things Done. Others put up hospitals, set up education foundations and inspired migrants in slums to start little recycling businesses. Lots of people talked about micro-credit and mobile phone apps, even if they didn’t know what these were all about anyway.
It all started coming together, despite the serial cheats, the bejeweled scamsters, the mustachioed mobsters and the unauctioned cricketers. They built highways, agitated against nuclear power plants, threw old sandals at politicians and invented the Chinese-Jain pizza. Somehow, it held together. A few of the original punters stayed on, having become employees now in Indian-owned and managed companies. People read books written by Indian authors about utterly loony Indian plots a Rushdie would die for. Others turned them into films, or mobile apps, as if there’s a difference.
Sometimes, they thought about the Raj and the chicken tikka revolution. But not often. There was far too much to do.
– Rahul Goswami (is otherwise an agricultural and rural economics researcher – makanaka [at] pobox.com)