TFF Associates & Themes Blog

Archive for the ‘Global economics’ Category

By Richard Falk

What follows are preliminary reactions to both the BREXIT vote and the world according to Trump, but also a commentary on the related alienation of large segments of the public that are being badly served by both the established elites and their demagogic adversaries.

The failures of neoliberalism, the successes of digitization, the scourge of random violence, and more broadly, the dilemmas posed by late modernity are among the root causes of this global crisis of legitimate governance, which is deepened while being mishandled by unprecedented ecological challenges, extremely irresponsible geopolitical leadership, and a variety of ultra-nationalist backlashes against the encroachments of economic globalization.

Imagining the World After the Cold War

After the end of the Cold War there were various projections that tried to anticipate the likely future of the world in broad interpretative strokes. Three of the most influential conjectures by three prominent American authors received attention in the public sphere: those of Francis Fukuyama, Samuel Huntington, and Robert Kaplan.

Fukuyama challenged conventional political imagination with his provocative claim that with the collapse of the Soviet version of state socialism and the triumph of capitalist liberalism the world had reached ‘the end of history.’ It was also somewhat dubious that Fukuyama validated his views by reference to the Hegelian contention that history is made by the march and interplay of ideas rather than through the agency of material forces.

In this respect history came to a supposedly glorious end because there was no grander possible political vision than that of market-based constitutionalism, epitomized by the American political system. Even the most casual observer of the global scene must have noticed the befogged Western optic through which Fukuyama saw the world.

Huntington, no less provocative or biased, although less comforting for the West, anticipated a ‘the clash of civilizations’ as the sequel to the Cold War, especially stressing the confrontation between the liberal West and the non-West or simply ‘the rest.’ His suggestive emphasis was on blood-soaked fault lines between states, civilizations, and peoples associated with Islam and the Western polities descending from the Enlightenment tradition as it unfolded in Europe, taking root in North America and elsewhere.

Kaplan, also punctured the Fukuyama triumphalist tone of geopolitical serenity, by writing Read the rest of this entry »

By Johan Galtung

The background is the two major communist parties in the world. Russia Communist Party-Bolshevik made the November 1917 revolution; from 1922 the Communist Party of the Soviet Union, CPSU(b). CPC, the Communist Party of China, now celebrating its 95th anniversary, made the 1 October 1949 revolution. World-shaking events; in the world’s biggest state in area and in the world’s biggest state in population.

The revolutions cut into the modernity contradictions in the State-Capital-People triangle by conquering State-military and police. Two lasting achievements of CPSU(b): State Planning of the economy – maybe five years at the time, pjatiletka – now found in most countries; and lifting some bottom up to meet basic needs, surprisingly quickly. But CPSU(b) exercised gross structural violence in the countryside. And CPC, imitating CPSU(b), made the same mistake to start with.

Then they became different. Russia got stuck with the Party on top of the State, for some people, but not by the people. CPC, like CPSU, did not – and still does not – permit FAFE, fair and free elections at the national level. But China gave People a voice in the 70,000 People’s Communes, helping them lift themselves up when in misery.

China did not see State and Capital as either-or; like Bolshevik Russia opting for State through expropriation, and neo-liberal USA for Capital through privatization, manipulating and spying on the People. China opened for the neither-nor local level, for the compromise of some welfare state, and for the both-and of their capi-communism.

This intellectual-political flexibility, rooted in daoist holism and an unending force-counter-force dialectic, not in Western faith in a final state, Endzustand, opened for two very different “communisms”.

How are they doing these days, those two communist parties?

The Russian party is out for the time being; and in came capitalism. But over and above that discourse looms the history of a huge Russian Orthodox empire attacked by Vikings, Mongols-Tatars, Turks, Napoleon and Hitler, Catholic Christianity, and Cold Wars with extremist US evangelism, now over Ukraine too.

Yeltsin – hated by Gorbachev (INYT, 3 Jun 2016) – gave the West what they wanted.

Popular Putin tries to build autonomous Russia without Western-capitalist imperialism, probably successful in the longer run. However, in Russia the long run is very long. Read the rest of this entry »

Af Claus Kold

Fra Månen kan man ikke se Danmark, lige meget hvor godt man kigger. Det kan man ikke, fordi Danmark er en kulturlig konstruktion, som er inde i danskernes hoveder, og som derfor ikke kan ses. Man kan heller ikke se Rusland, USA eller Indien.

Disse stater er nemlig også kun inde i hovederne på de mennesker, der tilfældigvis er født og opvokset i det, de har valgt at kalde fx Israel. Danmark er m.a.o. en tilfældighed. Det kunne lige så godt ikke eksistere, eller ligge et andet sted eller danskerne kunne tale et andet sprog, som de godt nok ville kalde dansk, men som ikke lød dansk – for os, de rigtige danskere.

Stater og statssystemer har ikke altid eksisteret, og op gennem tiden har de, der eksisterede, haft meget forskellige form. De har været religiøse, familieeje, enemandsvælder, étpartistater – i dag er det dominerende ideal territorialt afgrænsede demokratiske stater, hvor befolkningerne helt principielt skal inddrages i beslutningsprocesserne. De forskellige demokratiske stater, der udgør hovedparten af det internationale samfund i dag er dog langt fra ens, og det kan derfor være svært for staterne at forstå hinandens motiver og handlinger.

Til det tilfældige system af tilfældige stater hører lige så tilfældigt menneskeskabte systemer som politik, territorie, økonomi, sikkerheds- og forsvarspolitik, konkurrence, etc. Systemer som kunne være anderledes, men som i dag er bundet til sine egne logikker, som de er blinde for og derfor ikke sætter sig ud over. Systemer kan typisk ikke se og tænke ud over sig selv. Blindheden er farlig, for der tegner sig i stigende grad et billede af at disse tilfældige menneskelige systemer står i kviksand og kæmper med hinanden, uden at opdage at de synker dybere og dybere i, ligesom det heller ikke opdages at konflikterne ikke er nødvendige men systemskabte, kulturlige. Der er nok af globaliserede udfordringer: global opvarming, udryddelse af plante- og dyrearter, krige, terror og flygtninge.

Det statslige system, vi lever med i dag, blev til under helt andre befolkningsstørrelser, livs- og forbrugsformer, økonomier og teknologier end dem, der dominerer i dag. Overfor de globale udfordringer er disse stater på samme tid for store til hverdagens små problemer og for små til de globale udfordringer. I deres forsøg på at forholde sig til globale udfordringer, betjener politikere sig således af forældede instrumenter, og forsøgene på at forholde sig til de globale problemer falder tilbage på politikerne, der fremstår som utroværdige, som musikerne på Titanics stadig mere hældende dæk. Read the rest of this entry »

By Johan Galtung

China is changing world geography, or at least trying to do so.

Not in the sense of land and water like the Netherlands, but in the sense of weaving new infrastructures on land, on water, in the air, and on the web. It is not surprising that a country with some Marxist orientation would focus politics on infrastructure–but as means of transportation-communication, not as means of production.

Nor is it surprising that a country with a Daoist worldview focuses politics on totalities, on holons and dialectics, forces and counter-forces, trying to tilt balances in China’s favor. How this will work depends on the background, and its implications.

Two recent books, Valerie Hansen, Silk Road: A New History (Oxford University Press, 2012) and Peter Frankopan, The Silk Roads: A New History of the World (Knopf, 2015) see them as arteries connecting the world, globalization, before that term became a la mode. Not that loads of goods moved all the way in both directions, parts of the way, maybe further. Europe had much less to offer in return; however:

“Viking traders from–Norway–coarse, suspicious men, by Arab account–were moving down the great rivers of Russia–trading honey, amber and slaves–as early as the ninth century–returning home to be buried with the silks of Byzantium and China beside them”. (Frankopan)

The Silk Roads – so named by the German geographer von Richthofen in 1877 – connected China and Europe (Istanbul) over land from -1200; more precisely from Xi’an to Samarkand by a northern and southern road (Hansen for maps). And the Silk Lanes connected East China and East Africa (Somalia) from +500 till +1500 when Portuguese-Spanish and English naval expansion started a Western takeover by colonization.

The modern Silk Road East-West, Yiwu/China to Madrid/Spain. Although the transit time for goods or people to transit the route is 21 days, this is 30 days faster than a ship and is 1/10 the cost of shipping freight. See www.bulwarkreview.com

For long periods run by Buddhists in the East and Muslims in the West; Islam using them to expand, from Casablanca to the Philippines. Frankopan sees the high points in the Han dynasty (-207-220, capital Xi’an for West Han), the Tang dynasty (618-902, capital mainly Xi’an) and under Mongolian, Yuan rule–for goods, ideas, faiths, inventions.

Xi’an, 3,000 years old, served as a starting point, both for Silk Roads and for the Silk Lanes, traveling the Yangzi River, or over land, to the East China Sea coast. Till the military uprising against the Tang emperor in 755 (Hansen, Ch. 5, “The Cosmopolitan Terminus on the Silk Road”); but Xi’an is destined always to play major roles.

China is now reviving the past, adding Silk Railroads from East China to Madrid via Kazakhstan-Russia-Belarus-Poland-Germany-France, to Thailand, from East to West Africa–from the Indian Ocean to the Atlantic–from North to South Africa. Silk Flights. And Silk Web.

A silky cocoon is being woven, by worms in China. Too much?

Two features stand out in this approach to geopolitics. Read the rest of this entry »

Review of John Avery’s book by Dorothy Guyot

A Scientist Presses for Action on Many Fronts: A review of the book

The Need for a New Economic System
By John Scales Avery
Selected Works Volume 1, 291 pages
Irene Publishing
Sparsnäs, Sweden 2015

The Need for a New Economic System by John Scales Avery is an important book for everyone concerned over the future of humanity. The urgent voice of the book stems from Dr. Avery’s seeing the discontinuity between the loving care that people bestow on their children and their failure to reduce the harm to their children from a destructive economic system, climate change, resource depletion, and war.

This book of advocacy demonstrates the need for solutions to problems created under the present economic system. Political-economic analyses of the causes of the problems and of solutions are outside of the scope of the book. Scattered through the book are a few general policy suggestions. At the center is Avery’s assessment sector by sector of the critical problems that must be solved to avert disasters.

The book first demonstrates the impossibility of sustaining growth economies on our finite planet. The central three chapters analyze the damage from climate change and war. Globalization, population growth, and the food crisis are the last problems Avery analyzes.

He builds toward his conclusions by sketching the nineteenth century cooperative movement and Gandhian economics. The concluding chapter revisits the problems to advocate change.

The premise of the book is that when people face up to the extent and nature of world problems, people can act creatively and effectively.

John Avery is thinker and writer. Read the rest of this entry »

By Jonathan Power

April 12th, 2016

If worst comes to worst and Brazil’s President Dilma Rousseff is deposed and her widely beloved predecessor, Luiz “Lula” da Silva, is discredited they will long be remembered for the “Bolsa Familia”. This is a government program that has cut Brazil’s once appalling poverty rate by half and reduced the number of poor very sharply to 3% of the population. It reaches 55 million people and 36 million have been lifted out of poverty. It has been such a winner that around sixty countries have sent their experts to study it. Indeed, it has been so successful politically that we shouldn’t be surprised that if Rousseff is felled by the shenanigans of Congress masses will go out on the street and riot.

Before the Bolsa Familia program was put into effect by Lula, Brazil had many welfare and food subsidy programs. Like in most developing countries the benefits didn’t reach the poor in the way that was intended. Middle men, black marketeers, corrupt officials and politicians skimmed and diverted much of them.

Bolsa Familia absorbed these into one direct cash payment. If you were a poor mother of a family- women were more trusted than men- you received an electronic card which you could slip into a bank cash dispenser and immediately get your monthly allowance, often doubling your cash income. There would be no intermediaries and no skims and no scams.

There were some conditions. Her children had to go to school, be immunized and have regular health check ups. She herself, if pregnant again, had to go to the maternity clinic. So not only were incomes being raised above the poverty line but infant and maternal mortality rates fell fast.

The income of the poorest 20% of Brazilians rose by 6.2% between 2002 and 2013, while that of the country’s richest 20% rose by only 2.6%. (In the US in the same time period the income of the richest 10% rose by 2.6% and that of the poorest 10% shrank by 8.6%.)

Innoculations reached 99% of the population. Deaths from malnutrition fell by 58%. Longevity steadily increased. Literacy became almost universal and education gave young people a better chance in life. The number of children forced to work instead of attending school dropped by 14%.

I’ve been out to the villages in the North East and seen with my own eyes the visible and dramatic improvements. I’ve been visiting Read the rest of this entry »

By Johan Galtung

Washington, DC

The Big View is the West doing badly, euro and pound down with miserable growth rates; US $-growth rate better but erratic; China, India, Islam growing, Latin America (CELAC) getting its act together and probably growing. This matters for essentially bankrupt USA: China, India, Islam, CELAC are huge powers with huge minorities inside the USA: they could move in, take over. Last week’s prediction about Trump’s foreign policy came true the next day (Washington Post 22 Mar 2016): less wars, not affordable, less NATO, let Europe do it, no nation-building, building our own. He was then branded “isolationist” with US incapacity for a third option: foreign policy by peacefare.

Diagnosis
Any economy has two key faultlines: high vs low class, with inequality by exploitation; real vs finance economy, with crises by speculation. LEAP Press Review (noreply@leap2020.net 17 Feb 2016) traces “something Big was about to happen” to February 2006: no more M3 published (money printing); Iran’ stock market based on the euro, Iraq following (invasion). Before that, the Rest manufacturing, beating the West. Slow in coming, but then quickly; leaving the USA with agriculture and speculation, maybe to be followed by a Brexit UK.

Martin Wolf (Financial Times, english@other-news.info 24 Feb 2016) points to the world exhausting “monetary policy 1,2”-lower interest, printing money-and calls for nº 3: more spending, less saving to beat the “chronic demand crisis”. A non-starter: given the inequalities and crises, people will save for worse to come and for their children, not spend unnecessarily, and not accumulate debts to their children.

Joseph Stiglitz (above) puts it this way: “Banks choose financial speculation over lending /for/ economic growth”. The money supply “stimulated sharp increases in-financial-sector profitability”.

Rune Skarstein, the leading Norwegian global economist, focuses on the slipping locomotive effect from the Chinese economy; Read the rest of this entry »

By Jan Oberg

Article 1/4

Article 2/4

But why?

One can point to many reasons for such a tragic development in an otherwise decent, wealthy and hitherto well-respected country.

• It’s become too easy to go to war. The generation of politicians who might have a sense of war are long gone. If you take property owned by people who have fled thousands of kilometres because their life opportunities have been smashed and who carry just what they could grab in a hurry and carry – you simply have no idea of what life is like in a war zone. Neither do you see any need for advisers.

• Only a small percentage of Danish politicians have any international experience, no special competence, in international affairs – in sharp contrast to the 1970s-80s.

• Knowledge, broad civic education and cultured manners have been replaced by marketing consultants, styling experts, and fast politics salesmanship.

• Politics nowadays attracts a different kind of people than before. They fight more for their power positions than for an ideology, values, norms or a vision of a better world – all of which is totally outdated in today’s politics.

• Politics is a job or profession, not a calling based on deepy held individual values and visions about a better society for all.

• Anyone mentioning ethics or existential responsibilities would be ridiculed. And neither do media people raise such dimensions. An expert in ethics is hardly ever invited to the TV debates.

• Since the end of the Cold War, there has been no international balancing factor to take into account – the US/NATO and EU could do virtually what they pleased, riskfree violations of all good norms and international law – and implicit, if not intended, humiliation of Russia.

• The social democratic party developed from a working class solidarity movement to a middle class power elite losing on the way all ideals, ideology and solidarity with disadvantaged classes domestically and internationally. It lost its narrative and party identity as a social transformation agent for the better sometime in the 1980s. Read the rest of this entry »

By Johan Galtung

From very high up three major countries-states stand out clearly: China, the most populous; Russia, the largest; USA, the most military. With three leaders, Xi, Putin, Obama, with much power on their hands.

And here is the key hypothesis, presumably more right than wrong: China-Xi: positive peace; Russia-Putin: negative peace; USA-Obama: war.

We have in mind China – also a region – building relations for reasonably mutual and equal benefit with China all over the world, spinning Asia-Europe-Africa together in a road-rail-ship-air Silk network available to all (with major mistakes in the South China Sea).

We have in mind Russia – itself also a region – calling to Russia leaders in violent conflict from all over the world, seeking cease-fires and accommodation (making itself a major mistake in Syria).

And we have in mind USA – more than a state, less than a region – since WWII ended killing more than 20 million people in 37 countries:

Afghanistan, Angola, Argentina, Bangladesh, Bolivia, Brazil, Cambodia, Chad, Chile, China, Colombia, Cuba, Democratic Republic of Congo, Dominican Republic, East Timor, El Salvador, Grenada, Guatemala, Haiti, Honduras, Hungary, Indonesia, Iran, Iraq, Israel-Palestine, Korea North-South, Laos, Nepal, Nicaragua, Pakistan, Panama, Paraguay, Sudan, Vietnam, Yugoslavia Not included: daily USA mass shootings.

And weaving the world together with the incredible internet (making a major mistake, using it for spying, betraying us all). Read the rest of this entry »

By Jonathan Power

Monday’s news was that China’s annual growth rate has dropped below the red line of 7%. It is 6.9% and probably falling.

These figures were published shortly after the IMF said that sub-Saharan Africa is experiencing “solid growth”. Last week the World Bank released its new average annual growth estimates for black Africa. It was 4.5% last year but this year it is going up to 4.6% and by 2017 it will be 5.1%. This is less than the 5.3% before the great recession (precipitated by American banks), but considering all its recent knocks, not least China buying less raw materials, Africa is holding up pretty well.

In fact what we used to call the “Third World” is a mixed bag of good and bad news. Which would you like to read about first?

More bad news? Here it is:

Emerging markets for the sixth consecutive year face falling growth rates. Currencies have hit 15-year lows. Stocks, once soaring ahead of developed countries, have been flat for the last 6 years. Private sector debt has been increasing fast. The outflow of funds has accelerated and in the last year was over one trillion US dollars. Stock market and currency turbulence have raised questions about where China is going. The late president of France, Charles de Gaulle, once quipped about Brazil, “Brazil has a great future, and always will”. Maybe he should have said that about China.

In Brazil a big corruption scandal, including allegations that the government has illegally manipulated its fiscal accounts, has helped stall the economy.

In India, despite many campaign promises, Prime Minister Narendra Modi has not succeeded in opening the economic spigot. In fact the present day rise in growth owes itself largely to measures put in place by the previous government of Prime Minister Manmohan Singh.

In Indonesia, the economy Read the rest of this entry »