GLOBALIZATION PRESSURES AND THE STATE: THE WORLDWIDE SPREAD OF CENTRAL BANK INDEPENDENCE [pdf]

"We predict that countries boost the independence of their central bank from the political power as their exposure to foreign trade, investment, and multilateral lending increases. We also model the cross-national dynamic process of diffusion of central bank independence by examining the impact of cohesive and role-equivalent trade relationships between countries. We test our hypotheses with information on 71 countries between 1990 and 2000, using both event-history modeling and fixed-effects panel-corrected regression. Controlling for domestic variables of a macroeconomic and political nature, we find empirical support for each our predictions. We conclude that globalization pressures have the effect of strengthening certain parts of the state at the expense of others, and raise concerns about the degree of democratic oversight of technocratic institutions."

...in its current form, economic liberalism is perpetuating an inherently undemocratic hegemonic structure through an institutional and coercive manner that not even an authoritarian government could duplicate...

More-info: MADRE INDÍGENA HABLA AL PRESIDENTE ALAN GARCIA PEREZ MASACRE EN BAGUA TRADUCCION SUBTITULADA
A native mother who is in pain for the lost of her people talks in her language and she has the right to be listened and understood around the world: " Listen please president Alan Garcia, you are responsible because you have exterminated us, you are killing us, you are selling us. You are the terrorist. We defend our territory from armament Our only weapon of defense is just arrows and sticks, that aren't long range and they aren´t meant to kill like you did with us. You exterminated us using armament, bullets, helicopters and killed our brothers, sisters, students, teachers, sons... Alan we ask you to come over here to our territory to pay the debts you have to us. Alan, you sell our country, you sell our people, you sell our natural resources, gold, oil, water, air You pollute our environment and so you will leave us even poorer as you can see us now.. this is how we are and how we are left. We, the awajón-wampis people haven´t elected you to exterminate us, but to help us, to provide us with education for the kids you killed now. We aren´t taking your private property, we haven´t killed your kids or family, you already exterminated us and now we have NOTHING!".

The background: Trade Agreement Kills Amazon Indians
The jungle massacre: Peru's tribal chief flees country
A first hand account: Massacre in Peru: A trip into the Amazon brings answers and more questions
Families of Dead Native Protesters Tell Their Stories

But all of this was not in vain: Victory in the Amazon

Dan Hind on the obvious (pdf)

"...we should try to establish exactly what caused the crisis, who is responsible, and how. And that does require a certain amount of finger‐pointing. Not because it is fun, although it is, but because we can’t afford to be magnanimous to the policy‐makers and opinion‐formers who steered us into this. If we do we’ll leave them in place to manage the crisis as confidently and ineptly as its prelude. They will seek to reconstruct a system on the same disastrous lines, they will fail, and they will, with every appearance of regret, resort to ever more desperate measures. You probably found this article online, so I shall say no more."

From the Crisis of Distribution to the Distribution of the Costs of the Crisis:
What Can We Learn from Previous Crises about the Effects of the Financial Crisis on Labor Share?
by Özlem Onaran

"The paper analyzes the possible distributional consequences of the global crisis based on the lessons of the past crises experiences. The decline in the labor share across the globe has been a major factor that led to the current global crisis. What we are going through is a crisis of distribution, and similarly the policy reactions to the crisis are part of a distributional struggle. The paper presents the effects of the former crises in the developing countries and in Japan on income distribution, wages, and unemployment. This comparison is important not only because it compares developing vs. developed country cases, but also because it highlights the differences of the currency crises vs. domestic financial crises regarding the distributional consequences. However, despite differences, the cumulative effect is in both cases a dramatic pro-capital redistribution. Building on these lessons, the paper discusses the possible different effects of the current global crisis in the developed countries, Eastern Europe, and developing countries, and concludes with policy alternatives to avoid the socialization of the costs of the crisis."



Selected excerpt from policy alternatives:

In order to fundamentally solve the problems of this crisis, economic policy must most of all solve the distributional crisis. A new socio-economic and political paradigm is required focusing on full-employment, productivity led wage growth, and a shortening of work-time. This process should also decide on critical sectors for the society, in which the ownership rights cannot be left to the private sector and private profit motive. The crisis has indicated that the finance and the housing sectors are clear candidates for public ownership enhanced with democratic and transparent control mechanisms of all the stakeholders. The energy crisis is indicating that the energy sector and alternative energy investments also require public ownership. The problems with the private pension funds as well as private supplies of education, health, and infrastructure are showing that social services are also too critical to be ruled by private profit motives. A creative and participatory public discussion should question, in which other sectors public ownership would produce more egalitarian as well as more efficient outcomes. This does not mean to praise the public sector as such, but calls for the participation and control of the stakeholders (the workers, consumers, regional representatives etc.) in the decision making mechanisms within a public and transparent economic model. Such a shift in decision making also facilitates economy wide coordination of important decisions for a sustainable and planned development based on solidarity.

Shawn Hattingh on Cholera in South Africa:

Cholera outbreaks in South Africa are due to the ANC-led state's failure to address the inequalities of apartheid. In fact, both national and local governments in South Africa have promoted the idea that water should be sold as a commodity. Consequently, millions of people, even where the infrastructure exists, don't have access to clean water because they can't afford the high prices charged for it. Over 40% of South Africans are unemployed and simply don't have the money to pay for clean water. Unfortunately, there is little hope that free water for all will be rolled out across the country. All of the parties involved in the upcoming election, including the ANC,26 COPE,27 and the DA,28 remain committed to neo-liberalism and the commercialization of services -- in other words, committed to selling water as a commodity and cutting off people's water if they don't pay for it. This, in turn, is going to force people to reuse the water they do manage to get or access water from other sources such as streams. Therefore, cholera is set to break out again and again in South Africa. Only by organizing themselves and winning free water for all through their own actions can people put an end to this disease of privatization. Water is essential for life -- it mustn't be turned into a commodity to be sold and bought.

The European Project: Dismantling Social Democracy, Globalising Neoliberalism, by Andy Storey: "Leaving aside for now obvious questions of how exclusively European are the citizenship and social models discussed above, to what extent does European regionalism in the form of the EU currently promote these models? We may conclude with little argument that it does promote a certain version of post-national citizenship (though increasingly restrictive asylum and immigration policies render that rather less inclusive than its adherents might claim - Beatty, 2004). However, does it promote the social model? In the view of some observers, including Anthony McGrew (see above), it most certainly does not.

Van Appeldoorn (2001) provides some useful historical perspective on these questions. He identifies three different visions of European order: neoliberalism; neo-mercantilism; and social democracy. The neo-mercantilist vision, it is argued, underpinned the initial drive towards the creation of the European single market and Economic and Monetary Union (EMU). For neo-mercantilists, a European competitiveness gap vis-a-vis the rest of the world was attributed to fragmented markets, a related inability to fully exploit economies of scale in production, and insufficient investment in research and technology. (For neoliberals, the problems were - and still are - more likely to be attributed to factors such as inflexible labour markets, and unsustainable and work-discouraging welfare states)."