A blunt overview of neoliberal globalization and polyarchy--as well as US militarism
Founded in the aftermath of World War II, as institutions to regulate international monetary policy and trade, the International Monetary Fund and the World Trade Organization (formerly the General Agreement on Tariffs and Trade) now assume radical new positions in the current world-system, as purveyors of neoliberal globalization.
Globalization can manifest itself in many waysâthrough social media and the internet; or by global mass movements, such as the Occupy movement, to name a fewâwhile the IMF and WTO seek to advance global interdependence and interconnectedness through neoliberal reform and economic intervention. Their goal: to create a global capitalist marketplace that favors Now Developed Countries, as Ha-Joon Chang would refer to them, over their Still Developing counterparts, by opening all borders to free trade and, most imperatively, free investment.
Neoliberalism is rooted in the pretext that economic development is best attained through open borders, free markets, and advocacy of the private sector. For example, an IMF Structural Adjustment Programâconditions that a country must fulfill to be granted an IMF loanâincludes demands such as privatization of public services; deregulation of banking and finance; devaluation of currencies; lifting all trade restrictions; and overall cutting of government spending. These policies, Ha-Joon Chang (amongst others) argues, effectively âkick the ladder awayâ of development away from Still Developing Countries. Reductions in public investment in critical sectors of the economy, such as education, healthcare, and infrastructure greatly impede paths to development; as well as removing all trade restrictionsâsomething the US and Britain certainly did not do in their protectionist periods of industrial development. These policies, while not only impeding SDCâs development, further the interests of Now Developed Countries; such as the United States, which benefits especially from open borders to foreign investmentâadvancing the hegemonic project the US undertook in the wake of WWII to control the global marketplace. Also, by impeding development, NDCâs can now effectively undermine potential SDC disruptions to the world market through non-violent economic intervention, akin to conditions brought about only by defeat in warâthink Germany post-WWI.
The World Trade Organization also furthers subordination of SDCâs development and trading rights in favor of NDCâs. Take for example the structure of the WTO as indicative of this, being controlled primarily by the governance of the âQuadâ, or, the US, EU, Japan, and Canada. In fact, SDCâs including Brazil, India, and China walked out of a 2003 meeting in Cancun in protest of subsidies to the worldâs wealthiest farmers opposed to farmers in the global Southâhalting further ministerials since.
The policies of the WTO aim to erase all barriers to trade and free up capital mobility; as well as set regulations that inhibit economic independence of SDCâs, and favor not only NDCâs, but multinational corporations as well. For example, the WTO Operative Principles allow for the commodification of all public services, life forms, and indigenous knowledgeâin other wordsâeverything can be patented, even folklore; the General Agreement on Trade in Services (GATS) allows for universal privatization of all public services; the Trade Related Aspects of International Property Rights (TRIMS) agreement states that foreign investors must be treated with the same privileges as domestic investorsâall this in favor of multinational corporations, who are also represented by their home governments in WTO disputes; governments as public defenders of corporations? Lastly, and perhaps of paramount importance to developing nationsâas evident by the 2003 walkout in Cancunâare the Agreements on Agriculture (AoA), which reduces all tariffs on foods; reduces subsidies given to producers in SDCâs; and allows for NDCâs âdumpingâ of food, or, selling surplus in markets abroad at lower pricesâdamaging those local markets.
To sum up the effects neoliberal globalization has on SDCâs, annual GDP growth can be assessed: from 1980-2000, when neoliberal institutions largely emerged, developing countries experienced 3.3% growth in annual GDP; while from 1960-1980, they experienced 4.9% annual growth (World Bank: World Development Indicators 2003).
The WTO has very serious implications for democratic governance abroad as well. Inherent in its very nature, as mentioned earlier, the WTO is non-transparent, as little is known about the inner-workings of its unelected leaders, and lacks any sort of public participation. It may be described as an institution that was designed to make rules that elected leaders may ânot be able to make.â This being said, the WTO furthers the notion of polyarchyâfaux-democracy, only in name, that is ran from above, disregarding the grassroots. The WTO emphasizes the post-Cold War shift from straight power concepts to âconsensual controlâ, as it formally exists to help developing countries. It also, as William Robinson suggests, aims to achieve a single world political system that is synonymous with a single world economyâfurther subordinating the political will of weaker countries, as a functioning civil society has no place in the workings of the WTO. Structurally, the WTO, along with the IMF, aim to institutionalize their policies for all developing countries to follow; to set a standard upon which alternatives are deemed unacceptable, and to further subordinate developing countries hand in the processâall promoting polyarchy, or, governance from above, with the NDCâs and multinational corporations calling the shots.
US militarism, which manifests abroad most prominently in the form of our 800+ foreign bases, is a peculiar form of intervention that has serious consequences overseas; and, while not typically recognized, has serious consequences at home as well. Our ever expanding swath of military bases spans across the globe, and pose as significant breaches of sovereignty to the nations we set foot in, as those nations donât have any choice but to say yes to the worldâs most powerful military. Bases, literally planted on foreign soil, act as a type of US extraterritoriality. For example, their inhabitants are not subject to local jurisdictionâStatus of forces agreements (SOFAs) prevent host governments from prosecuting any laws broken; so if say, a US soldier raped a foreign civilian, they may be shipped back home to avoid prosecution. Bases also act as a type of economic intervention; though they may not always be heavily armed, they act as a proxy defender of multinational corporationsâfor example, a host nation may think twice about nationalizing a certain industry to compete with a multinational if the US has a presence there, or threatens to withdraw support. They also act as epicenters of consumer culture, typically set up as mini (or, not so mini) towns that include everything from McDonaldâs, car dealerships, and mobile homesâacting as beacons for capitalism, consumerism, and corporatism alike abroad where these ideals may want to be stressed.
The USâs omnipresence overseas arguably tarnishes our image abroad and may act as a force for blowback: see, the September 11th attacks as a prime exampleâOsama Bin Laden was publically vocal about his dissatisfaction with US military involvement in the Middle East. Domestically, US militarism manifests itself in numerous ways: it acts as an omnipresent military culture; take for example our students constantly being recruited to join an ever expanding standing army; militarized TV shows and video games; and even as simple as buying your child a BB-gun for Christmas. But, most importantly, US militarism affects every institution of the government. The military-industrial complex drives policy making, as it is our biggest expenditure at ~4% of GDP. To emphasize the omnipresence of the complex, virtually every congressional district is involved in some sort of defense contract, tying down legislatures to its needs. Taxpayer dollars are used to protect multinational corporations and drive profit overseas, while destroying our reputation abroad; as well asâand arguably most importantlyâdeeming basic social expenditures and public investment; such as infrastructure projects, education, and healthcare, as unattainableâthe groundworks for a functioning, healthy society.Â










