Economic Globalization

An Introduction to 2001 UUA Study/Action Issue . . . . . . . . . . .  by Art Peracchio

 

ISSUE

 

How can Unitarian Universalists respond to the unprecedented opportunities and potentially dangerous environmental, political, and quality-of-life challenges accompanying economic globalization?

 

BACKGROUND and REASONS for STUDY 

 

“The new globalized economy brings with it a growing disconnect between those who enjoy the benefits of globalization and those who pay the costs, which include increased pollution, exploitation of workers, destruction of natural resources, widening income disparities, and decline in small business and family farms.  While some focus on the economic opportunities they believe will lead to improved living conditions worldwide, others worry that the current trade agreements and organizations do not adequately respond to some of the consequent negative effects, and remove the center of economic power ever further from the individuals and families that must live with the consequences.”

 

The above was taken verbatim from the resume of the STUDY/ACTION ISSUES made available to me by Adele McCollum, who was our representative at the UUA General Assembly.  I have been volunteered by Irene Keim to undertake the project of researching the issue.  It is my intention to write a series of articles that, I hope, will be augmented by your inputs and participation in study and discussion groups.  The subject is too big and far-reaching for a one-man show.

 

What is Economic Globalization?  Why has it become an issue?

 

To answer those overarching questions, let us identify the principal players and the overt contentions.  On the one side are the many corporation and companies whose activities and entities have reached beyond national boundaries.  These entities are supported by the governments of industrial nations, who have established global trade and finance organizations in the interest of encouraging and developing “free trade.”

 

Global Trade Organizations

 

GATT  (General Agreement of Trade and Tariffs)  was established 53 years ago with the mission to reduce and eventually completely eliminate duty taxes and other artificial impediments on imported goods.  It experienced early success in establishing cuts in its first few rounds when the U.S. influence was at its peak, but it has met with more resistance as U.S. predominance in world trade has waned.

 

NAFTA  (North America Free Trade Agreement)  came into effect  on 01/01/1994 as an agreement between the United States, Canada and Mexico to establish a trade area designed to:

1 – Eliminate barriers to trade and facilitate the cross-border movement of goods and services.

2 – Promote fair competition.

3 – Increase investment opportunities.

4 – Provide effective protection for intellectual property rights.

5 – Establish a framework for further trilateral, regional and multilateral expansion.

 

FTTA  (Free Trade Area of the Americas)  was initiated in the 1994 Summit of the Americas to integrate the economies of the Western Hemisphere into a single free trade agreement.

 

IMF  (International Monetary Fund)  and the WORLD BANK  were established after World War II as per agreement at the Bretton Woods Conference on July 22, 1944.  The purposes were to finance the reconstruction of Europe’s tattered economies and infrastructures and to help in the development of the poorer countries of the world.

 

WTO  (World Trade Organization) came into existence in 1995 as the successor of GATT to implement the agreements reached during the Uruguay rounds of trade negotiations in 1986-1994.  The agreements liberalized and facilitated trans-border banking, insurance, securities and telecommunications.  WTO also became the final arbiter of disputes between the member nations.  This is a much-criticized power which we will be discussing in later articles.

 

Non-Governmental Organizations

 

Objecting to and opposing some of the powers and practices of the above supra-national organizations are a long list of non-governmental organizations (NGO’s).  Some of the principal players are:

 

PUBLIC CITIZEN is a consumer’s rights group headed by Ralph Nader.  Public Citizen has been a relentless critic of the supra-national organizations mentioned above, objecting to their power to override national health and safety regulations in the name of free trade.  Through the use of a Web site, Public Citizen was instrumental in organizing the disparate groups of NGO’s that descended on Seattle and disrupted the WTO’s 1999 meeting.  Well over 1,000 NGO’s signed onto an anti-WTO protest declaration.

 

THE SIERRA CLUB, THE WORLDWIDE FUND FOR NATURE, GREENPEACE, and LABOR UNIONS are some of the other principal NGO players.  We will expound on theirs and other’s objections to the ‘globalization of economics’ in subsequent articles. 

 

Stay tuned!