Development is not dead the coordinates have changed.
Despite the promise for prosperity with free markets, material benefits are largely controlled by
one third of the world’s population.
The remainder toil in extremely exploitative work settings.
Markets are neither natural nor free but are institutional constructs that are controlled by elite
Economic nationalism led to inefficiency, disabled the mobility of goods, money and firms in the
service of efficient. Therefore there has been a move to more privatized institutions that lead to
higher levels of competition and decide the allocation of resources.
With economic nationalism in decline, the development mantle has been assumed by powerful
corporate players in the world market
Representing them are institutions such as the WTO
There are many factors that must be dealt with. A broad array of policies and issues.
(environmental, developmental, health, labor)
Orders must come from the top to ensure the success of this system.
A quote from the Founding Director General “Without the WTO, we will go back to a world of
national barriers, protectionism, economic nationalism, and conflict.
The Director General articulated the vision of Globalization project: the implementation of
“market rule” via the restructuring of policies and standards across the nation state system.
Trade was to be privileged as the vehicle of development.
Internationalist ideas stems that trade is suppose to bring peace. However war destruction and
despair have been seen as a product of trade as well.
The Globalization project signifies a new way of thinking about development. Global
management of capitalism emerged in the 1970’s, and in the 1980’s when the Bretton wood
institutions made explicit claims about managing a global economy, as global managers
implemented a debt regime.
The globalization project rests on unstable foundations,
What are the elements of the Globalization Project?
A consensus among global managers/policy makers favoring market based rather than
state managed development strategies,
Centralized management of Global Markets ruled by the G-7 states.
Implementation of these rules through multilateral agencies(world bank, IMF,WTO)
Concentration of market power in the hands of TNC’s and financial power in TNB’s.
Subjection of all states to economic disciplines , varying by geopolitical position, global
currency hierarchy, debt load , resource endowments and so forth,
Realization of global development via new class, gender, race, and ethnic inequalities;
Resistance at all levels, from marginalized communities to state managers to factions
even within multilateral institutions, contesting unbridled market rule. The Globalization project:
Globalization in World Bank terms means successful participation in global
Liberalization: Freeing of markets for labor, money, goods and services.
Meanwhile, the United States led a parallel attempt to build a free market
Global consensus --focusing on breaking down the resistance of the Soviet
Empire to market capitalism. This was central to the emerging Globalization
As governments privilege markets, they are likely to disadvantage citizens who
are vulnerable to or unable to participate or compete in markets.
The global market has a selective criteria favoring mobile corporations over
relatively immobile populations.
Governments face a constant dilemma of balancing the quite the quite unequal
needs of their citizens with the competitive volatility of investment and trade
Freeing the market has an elegant ring to it until it threatens public systems of
social reproduction, rendering large segments of the national populations
vulnerable to shrinking social securities and insecure employment.
If competing in world markets requires policies reducing public expenditure
that may reduce safe guards and standards of employment, health care and
education then globalization is a decision not an inevitability.
The choices implicit in the globalization project call forth different
interpretations of the purpose of development—whether it is governed by
economic efficiency or social justice, corporate or social welfare, resource
exploitation or ecological sustainability, centralized political economic power
or participatory economic democracy, or market versus human values.
We are witnessing a massive tug of war across the world between proponents
of these various positions.
The tug of war between two camps. The World Social Forum (against dominant
corporations) and the World Economic Forum (Representing the corporate
The key source of tension concerns the relatively new concept of governance,
which overrides and reformulates government.
Global institutions have gained a more powerful governing role.
It is not absolute. Requires compliance from the state itself. There are two ways of guaranteeing compliance
1. Consensus works where governments and citizens accept legitimacy of neo classical economic
theory: that market rule is neutral and efficient.
2. Coercion is necessary where liberalization is questioned or resisted.
Most effective way or institutionalizing compliance is market rule.
Here individual governmental functions are enforced through multilateral protocols.
The founder Director General was quoted
“Writing the constitution of a single global economy.”
Here it becomes clear that global governance has evolved.
World bank President Clausen remarked “The Fundamental Philosophy of our institution is
to help countries diversify their exports…. To have an export orientation.”
The priority had shifted to stabilizing global financial relations and opening up southern
economies to accelerated resource extraction, rather than funding national Projects
“What is abundantly clear is that the north has used the plight of developing countries to
strengthen its dominance and its influence over the development paths of the south. While
adjustment is pressed on them, countries in the north with massive payments imbalances
are immune from any pressure to adjust, and free follow policies that deepen the South’s
difficulties. The most powerful countries in the north have become a de facto board of
management for the world economy, protecting their interests and imposing their will on
the south. The governments of the south are then left to face the wrath, even the violence
of their own people, whose standard s of living have been depressed for preserving the
present patterns of operation of the world economy.” (The newly formed south
The South Commission’s declaration draws attention to a new dimension in the
development discourse: the priority given to managing the world economy as a single entity.
The bank and IMF partnership is structurally adjusting particular states is a method of
governing and an attempt to resolve the instability in a deregulated global money market.
What is it about the Globalization project that makes it value foreign investment over
Global circuits of debt, money, investment, and pension funds are so embedded in national
economies that stabilizing these destabilizing financial relations now dominates national
policy making. In this way, the new forms of global governance seek simultaneously, to
ensure open economies and the institutional mechanisms to m