Globalisation...A Big @$Ho!_e

This statement was not made by a leader of the Communist Party of India (Marxist) or, for that matter, any other political party. Nor was it made by a Left-leaning liberal, sporting a jhola (cloth sling bag).

No, this pronouncement did not come from an academic from the Capital's Jawaharlal Nehru University who wears his concern for the underprivileged on the sleeve of his trendy kurta, while he sips his Scotch whisky.

Sorry to disappoint you, but these words were also not uttered by a representative of a non-government organisation whose heart bleeds for the wretched of the earth, one of those individuals who are derogatorily described as 'aid queens' or 'poverty pimps.'

To end the suspense, let me inform you that the sentence quoted at the beginning of this article came from the mouth of the man who heads the operations of the largest multinational corporation in India. During his speech, the HLL chairman added that poverty is the biggest enemy of peace and democracy and many of his colleagues have for long argued that their company's interests coincide with bigger social goals.

He is, of course, M S (Vindi) Banga, Ex Chairman, Hindustan Lever Limited.

In December 1945, IMF came into existence saying HEY…. I am here To foster global monetary cooperation, secure financial stability, facilitates international trade, promote high employment and sustainable economic growth, and reduce poverty".

But the fact lies underneath IMF is STILL THE RICH WORLD’S VICEROY

How successful is the IMF in helping countries reform their economies and achieve self-sustaining growth? Numerous independent studies have found that the IMF creates long-term aid dependency, that its credit slows the process of reform and that it has a bureaucratic incentive to lend.

The fund is controlled by seven countries that together with Russia promised to save the world at G 8. But the fact is each dollar buys a vote. So the bigger the country’s financial quota the more say it has over the running of IMF.

And as a result it began to micromanage their economies without reference to the people and even their governments. Since then, no rich country has ever acquired its services and very few poor countries have been able to shake it off.

Out of world population of 600 crores nearly half the population are 'poor' people. The estimated very poor people in world are above 120 crores. The policies adopted by the World Bank and the IMF are only swelling the ranks of very poor people in the World by making these figures more worse.

SUBSIDY REDUCTION ADDS TO POVERTY

One of the key objective of the World Bank is to eliminate, subsidies in the developing countries. In India the curtailment of subsidy on foodgrains, fertilizer, power etc. has put additional burden on the poor people. The World Bank is imposing conditionalities that public utilities must run on commercial lines and earn profits. The rise in power tariff price of rationed articles and public transport are indications of the reduced standard of life of the poor people. Only 30 per cent of the people in India have access to electricity. The policy of the Government of India to stop subsidizing coal production has resulted in pushing up its prices and increased that cost of power generation. The World Bank pressure to reduce drastically custom duty on coal has practically introduced subsidy for the imported coal in the country.

While developing countries are forced to stop subsidies the advanced capitalist countries are giving huge subsidies in the same section. In OECD countries the total energy subsidies are about 71 billion and coal subsidies are 8 billion a year. The GATT was highly favourable to advanced capitalist countries which permitted several concealed subsidies which are being given for export promotion. This enabled these countries to dump their products on developing countries resulting closure of large number of undertakings in developing countries. This has been partly responsible for slowdown in economic growth of the developing countries which has further resulted in growing poverty in these countries.

EXTERNAL DEBT AND GLOBAL POVERTY

The swelling external debt of the developing countries is putting hurdled in search for further economic growth. Some of these countries have almost been entering the debt trap. The total external debt of the low and middle income countries has now exceeded 2,356 billion U.S. dollars. Brazil, for example the largest indebted country with a burden of $238 billion has experienced the worst economic crisis and expressed the resentment in most powerful terms by electing a new President Lula over 60 per cent votes. This is a clear case of revolt against imposition of poverty by the process of globalisation. Recent developments in Argentina, with a burden of external debt of $ 146 billion which ruined national economy and imposed poverty conditions on the people, have shown a strong popular upsurge against the World Bank - IMF package of “economic reforms!”

BLOOD TRASFUSION IN REVERSE

The share of the developing countries in the world trade is declining while that of advanced capitalist countries is increasing every year. 75 per cent of the World Trade is controlled by the advanced capitalist countries. Moreover, the terms of trade are becoming more and more unfavorable to the developing countries due to WTO regime. Due to formation of trade blocks the advanced capitalist countries are in a position to take advantage of the situation and get a better price for their products while the developing countries are competing with each other to sell their products cheaper to the advanced capitalist countries.

This process results in transferring of values from the developing countries to the developed countries. One African delegate in UNCTAD meeting rightly characterized this process as blood transfusion in reverse i.e. instead of giving blood from a healthy person to a sick patient; blood is extracted from a sick person and given to a

healthy person. This process continues endlessly in a capitalist system. Hence it is futile to expect elimination of poverty within a capitalist system.

The unity of the developing countries is not emerging in the world to-day since some of the leading developing countries like India are toeing the dictates of the World Bank and the IMF. This only results in imposing poverty conditions on the vast masses of poor people in the developing countries while the net beneficiaries become the worldwide cartels who appropriate the maximum profits.

INSTIGATION TO SOCIAL CONFLICTS

Imperialist countries particularly USA and its agency CIA have played a dubious role in engineering social conflicts with a view to establish political control over them. Religious fundamentalism, ethnic differences, traditional conflicts and every form of tension is being utilized by imperialist agencies to suit the global design of imperialism. During 1990s 46 countries were involved in civil conflicts behind which hidden hand of agencies like CIA played a prominent role. 17 out of 33 poorest countries were involved in such conflicts which paid heavy price in them immensely damaging their economic development. The net result had been the growth of poverty in these countries.

INFLATION

FLAT SCREENS ARE CHEAPER, VEGETABLES COSTLIER….. ARE PRICES RISING LIKE SKYSCRAPERS

Spring has been postponed b’coz freaky weather has prolonged a ‘cold wave’ that grips Lutyen’s Delhi like an unwanted mistress. At 5-7, Race Course Road, not many are bothered about doomsay predictions related to global warming and climate change. The amiable and apolitical ManMohan Singh, now prime minister huddles with his predictable choice as finance Minister Pranab Mukherjee. Both men are worried about how these issues threatens to open the flood gates of tears for them.

"FOOD security is not food in the godowns, but dollars in the pocket."

The price paid for wheat import following the export in the year 1987-88, 1991-92, 1995-96 and 1996-97 exceeded the international prices by about 80, 138, 15 and 10 per cent respectively.

FOOD PRICES ARE GOING BALLISTIC

As prices gallop like wild horses, Sonia Gandhi’s aam aadmi plank is beginning to face a serious threat. It’s proving to be a sick joke .The government face the brutal reality that of India. “Inflation and rising prices affect the poor and the lower middle class”

So when it is said that one should think globally and act locally or become a new 'glocal' individual, remember what you were taught in school. Do not grab from the needy to give to the greedy - all in the name of bhumandalikaran or globalisation.