Archive for the ‘Global economics’ Category
By Jonathan Power
The result of the first round of the French presidential election has given the Euro-pessimists a knock over the head. About time too.
The European Union is not going to face break up. Big crises come but they also go. The Euro currency crisis was not dealt with as well as it should have been – austerity was the policy of the long way round – but it passed.
The great immigration crisis has been contained and the number of would-be refugees has fallen sharply.
The British say they are leaving, but how the biggest political paradox of my lifetime will be squared remains to be seen – a parliament with a majority of its members in favour of staying in Europe but with a government trying to get out as fast as it can with the support of most MPs of the two largest parties.
Moreover, there is another quite counterproductive consequence of Brexit – pushing Scotland to break from the United Kingdom. Leaving big, grand, Europe to become a truncated little England makes no sense at all. When the penny finally drops I expect the UK to reverse course on Brexit – or to disintegrate.
With or without Britain the EU will remain the world’s best example of political unity. Peoples who have fought each other for thousands of years no longer do. No other part of the planet is so Read the rest of this entry »
By Jonathan Power
March 23rd, 2017
The Asian economies are picking up speed again. After the big hit from Wall Street when the bank, Lehman Brothers, collapsed in a heap in 2008, sending shock waves everywhere, a recovery is now in the works.
How many child deaths in the Third World did these bankers cause?
Another question is will future growth be like the past- fast but severely inequitable? The same growth before 2008 that reduced absolute poverty created a widening gulf between the haves and have-nots.
But isn’t that sufficient for the day, many ask? Absolute poverty must be the key mark of progress- raising incomes, giving people more money to seek education for their children or medical care or filling the coffers for the state so that it can fund bore holes in the countryside and sewers in the urban slums.
After all in the period of rapid growth from 1990 to 2008 the number of people living in extreme poverty was almost halved, from more than 1.5 billion to 850 million.
China’s poverty fell dramatically from when 85% of the population lived on less than $1.25 a day to when only 13% lived in poverty. India has also reduced poverty rapidly, particularly under the last Congress government of Manmohan Singh and Sonia Gandhi, but the voters still fell for the opportunistic populism of the BJP and voted Congress out.
Of course there are good arguments why the progress made has not been seen as enough, not just because of rising inequality but because India and China between them have two-thirds of the world’s poor.
Escaping poverty is not enough. Read the rest of this entry »
Originally published in The New Statesman, London, 15 March 2017
28 March 2017
Three former UN insiders on the future of the world’s most ambitious organisation.
By Hans von Sponeck, Richard Falk – both TFF Associates – and Denis Halliday.
US President Donald Trump is ardently embracing a toxic form of messianic nationalism, while demeaning those who oppose him as corrupt, and dishonest enemies. His “America First” chant is creating severe international tension, promoting extremism – within and outside the US – and undermining the homeland security that he has so insistently pledged to enhance.
Trump seems determined to implement policies and practices that could signal the weakening of democracy, and possibly even herald the onset of fascism. His programme to deport undocumented immigrants and to exclude all visitors from six designated Muslim majority countries is illustrative of a regressive and Islamophobic outlook.
The groundswell of popular dissent is vibrant and worldwide, from Romania to South Korea, Gambia to Brazil, from the UK to the Ukraine.
Trump is dangerously exploiting the frustration of citizens with the political establishment, which is unprecedented in its depth and breadth. The umbilical cord that connects those governing with those governed is becoming dangerously stressed. The digital revolution is endowing governments with horrifying capabilities for oppression and control but it is also enhancing the ability of the citizenry to mount resistance and mobilize opposition forces.
UN charter law and power politics
As UN veterans, we recall and affirm the preamble to the UN Charter that reads “we the peoples” – not we the governments! The trust of people in their governments to work for social and economic progress and to prevent war has dramatically weakened, if not disappeared.
The prediction made by the Mexican delegate at the founding of the UN in 1945 that “we have created an institution which controls the mice but the tigers will roam around freely” seems truer today than at the moment of its utterance. The UN Security Council’s permanent members – China, France, Russia, the UK and the US – indeed “roam around freely” lacking respect for international law or the authority of the UN, once more pursuing their respective nationalist agendas without any pretence of accountability. These countries are also the major consumers and exporters of military hardware, facilitating both militarism and “merchants of death”.
The international war supposedly being waged against political extremism and terrorism has predictably deteriorated into a series of horrific wildfires and slaughter. Wars that should never have happened, neither the overt ones in Afghanistan, Iraq, Libya and Syria nor the partially covert ones in Yemen, Somalia, and a range of other countries in Africa and Asia have brought peace or stability, but a series of unspeakable ordeals of human suffering. Old struggles have been magnified while new ones have been created.
The US tiger, aged as it is, displays the most serious signs of political amnesia. Unilateralism and exceptionalism have just been reaffirmed as cornerstones Read the rest of this entry »
By Johan Galtung
The Cold War ended by an agreement that the USSR leaves Eastern Europe and the USA does not enter the area. What the USA did is treason, like Sykes-Picot. NATO expanded from 16 to 28: Bill Clinton added Poland, Czech Republic and Hungary; George W. Bush the Baltic Slovakia, Slovenia, Romania and Bulgaria; Obama attached Croatia and Albania. In 1999, 2004 and 2009, respectively. However, did those countries want it? They could have made their own pacts with neither USSR nor USA. The Soviet empire, and the Soviet Union itself, had collapsed.
With NATO at the border, Russia took back its 1954 Crimea gift to Ukraine within the Soviet Union. Kiev with US help fought in Eastern Ukraine to make ethnic Russians escape to Russia. Maybe 60% did.
Enters world history: The Pope and the Patriarch declare their Christianities one and the same (Havana Airport, VIP Lounge, 14 Feb 2016). EU will no longer fight US wars (Bratislava, 6 Nov 2016). Protestant-Evangelical Christianity is marginalized. So is the USA.
Denmark and Norway were with Anglo-America fighting US wars in Libya; and with prime ministers as NATO’s secretary general. “Cold War jitters…
By Johan Galtung
Two important words enriching each other. “Nonviolent” easily becomes bla-bla, and “economy” is too general. But, does “nonviolent” make a difference for the better to the economy? And vice versa, can “economy” make “nonviolent” more positive, beyond resistance to evil?
Let us start with “economy”, here conceived of as a cycle with three poles: Nature, Production, Consumption. And three processes: Extraction from Nature, Distribution from Production to Consumption, and Pollution from Production-Consumption back to Nature. The cycle flow is in that order: Nature → Production → Consumption → Nature.
A simple summary of the economy: humans extract resources from nature, produce-process for (end) consumption, and sends what they cannot consume back to nature (but economists, like book-keepers, left out the Nature part). And we want it all to be nonviolent!
“Do no harm!”, nonviolent, is insufficient. “Peace”, “peaceful” include positive peace–Peace Economics, A Theory of Development are my books (TRANSCEND University Press, 2012, 2010)–with “do good!”.
And: Nature can evolve better without us, not we without Nature. Read the rest of this entry »
By Johan Galtung
Two closely related points, as a starter.
This column has argued Lifting the Bottom Up as economic approach in all weathers, bad, fair, good, to mitigate any suffering, and for them to enter the economy as producers and consumers, not as “cases”.
This column has also argued judging Trump not by his poisoning words, nor by commentators’ words, but by his deeds. White-male-workers-no college is not the US bottom, but they were heading down. Now lifted up the Trump way, by keeping/bringing back industry to the “Rust Belt”. Ford Motor Company just did that, GM may be next.
If outsourcing to Mexico – under the euphemism “trade” served poor Mexican workers, maybe–but it serves rich elites in both countries.
45 percent tariff on Chinese goods: a non-starter. US homes are filled with affordable “Made in China”. To de-industrialize was US stupidity; to re-industrialize will take time. Keep what is, bring back what was. Other countries may learn from Trump and not trade themselves away.
The general 2017 world economic outlook is bad. Key problem for the West: industry is now also in the hands of other countries to meet their demands and for exports (Chindia). How could that happen? Because:
Economists have a Theory I of diachronic stages, from primary via secondary to tertiary sectors, agriculture->industry->services. Time for services has come, domestically, and as export to import food and manufactures. TI promotes trade; but makes societies vulnerable if trade fails, and may cause huge primary-secondary sector unemployment.
Hence, alternative Theory II: synchronic co-existence of sectors, at state-provincial-local levels. Each sector is a way of life that appeals to different persons or to the same person at different stages. TII promotes self-reliance–not self-sufficiency, filling gaps with trade–high employment if automation is controlled and not seen as a law of nature, personal enrichment, and protection of nature. Read the rest of this entry »
By Johan Galtung
To understand something we often compare it with something else.
A recent Harvard study found 26.7% of world car production in China and 13.3% in USA; US economy bigger but China leading in export with 8 of the 12 biggest harbors; USA end 2016 fighting 7 wars with bases all over and China with no wars or bases, investing, building the New Silk Road-Lane, the Economic Belt. How successfully, it is to be seen.
But these are global power relations. That the West is going down, the Rest is coming up, the USA is a major part of the West and China of the Rest, are decades-old truths. And the EU is also part of the West.
What does domestic China remind us of, historically, structurally? Not USA, a state since 1776, 1812. Let us compare China with present border and context to Europe from the Atlantic to–whatever the border.
One conclusion can be foretold: only recently are both of them becoming cohesive, as super-states and as super-nations. Why, and how? Read the rest of this entry »
By Jonathan Power
December 6th 2016
President-elect Donald Trump is about to make the American rich even richer with his plan to cut their taxes. A cause for shame. Nevertheless, the history of America is that poorer people have done better than is commonly thought over the last two centuries.
Today they have indoor plumbing, heating, electricity, smallpox and tuberculosis-free lives, adequate nutrition, much lower child and maternal mortality, doubled life expectancy, increasingly sophisticated medical attention, the availability of contraception, secondary level schooling for their children and a shot at university, buses, trains and bicycles, much less racial prejudice, longer retirement, a rising quality of the goods they buy, better working conditions and the vote.
Once these were luxuries that only the richer could experience. It has been shown by many studies that happiness increases fast as poorer people get better off but that beyond a certain point – an income of $15,000 per person per year- extra happiness increases very slowly. Read the rest of this entry »
By Johan Galtung
“View” meaning not only a glimpse from above, but a position taken on the world on which the US electorate is now dumping Donald Trump.
That world is today basically multi-polar, maybe with 8 poles: 1) Anglo-America, 2) Latin America-Caribbean, 3) African Unity, 4) Islam-OIC from Casablanca to Mindanao, 5) European Union, 6) Russia more region than state, 7) SAARC from Nepal to Sri Lanka, 8. ASEAN, Australia-New Zealand. [See list of abbreviations with links to the mentioned organisations under the article]
And thre is the multi-regional Shanghai Cooperation Organization, SCO, with China and Russia, Islamic countries, India and Pakistan.
There is a waning state reality, smaller states being increasingly absorbed into regions.
There is a waxing region reality with the above eight; adding West Asian, Central Asian and Northeast Asian regions, maybe eleven.
There is a global reality based on IGOs, inter-governmental organizations, with the United Nations on top; TNCs, the transnational corporations, with the US-based on top so far; and INGOs, international non-governmental organizations, with religions on top.
Now, insert into all of that something concrete from William Blum’s Anti-Empire Report #146 and his Rogue State.
From WWII, the USA has: Read the rest of this entry »
By Jonathan Power
Donald Trump is changing the right wing’s economic spots. He is doing what Franklin Roosevelt did at the time of the Great Depression by increasing government spending – although it was the rearmament brought on by entering World War 2 that was an even more important factor in lifting America out of the doldrums.
He is following what Hitler did so successfully before World War 2 when he rebuilt Germany’s economic strength with autobahns and industrial subsidies (not rearmament in the beginning, as is often said). He is walking in the footsteps of President Richard Nixon who when he changed course with a new economic policy said, “We are all Keynesians now”.
John Maynard Keynes was the greatest economist who ever lived.
For reasons that were shameful, politicians have not listened to his advice as often as they should. The Germans, with their urge to austerity, have gone the other way, carrying (or pushing) nearly every European state with them, apart from Poland and Sweden which did not follow the herd and now have the best economic growth record of the last few years.
But Obama has certainly been Keynesian. Read the rest of this entry »