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Globalization of Economy or Globalization of Poverty?
This article contains valuable information on the disastrous consequencesof the free market economy as represented by WTO, TRIM and TRIP, WBand IMF, while further clarifying Prout policy on globalisation and the Proutalternative economy to replace globalisation. The author condemns thefree-market ideology embraced around the world as being equivalent to afundamentalist religion with money and profit the Gods of humanexistence. We need to get away from this ideological indoctrination thatcapitalism is the single available economic model, and help the peoplemove towards a Zeitgeist wherein the well-being of the collective society isparamount, and where not a single person is economically left behind!
by Ac. Krtashivananda Avt.In the quest for economic growth, free-market ideology has been embracedaround the world with the fervor of a fundamentalist religious faith. Money is itssole measure of value, and its practice is advancing policies that are deepeningsocial and environmental disintegration everywhere.The economic profession serves as its priesthood. It champions values thatdemean the human spirit. It assumes an imaginary world divorced from reality,and it is restructuring our institutions of governance in ways that make our mostfundamental problems more difficult to resolve. It has reduced economics to anideological shield against intelligent introspection and civic responsibility, andinfused the study of economics with a strong element of ideologicalindoctrination.
The Sanctification of Greed
The beliefs espoused by free-market ideologues are familiar to anyone who isconversant with the language of contemporary economic discourse:Sustained 'economic growth', as measured by gross national product, is thecriteria of progress.'Free markets,' unrestrained by government, generally result in the most efficientand socially optimal allocation of resources.'Economic globalization', achieved by removing barriers to the free flow of goodsand money everywhere in the world, spurs competition, increases economicefficiency, creates jobs, lowers consumer prices, increases consumer choice,increased economic growth, and is generally beneficial to almost everyone.'Privatization', which moves functions and assets from government to the privatesector, improves efficiency.
 
The primary responsibility of government is to provide the infrastructurenecessary to advance commerce and enforce the rule of law with respect toproperty rights and contracts. These free-market ideological doctrines assumethat:People are by nature motivated primarily by greed.The drive to acquire is the highest expression of what it means to be human.The relentless pursuit of greed and acquisition leads to socially optimaloutcomes.It is in the best interest of human societies to encourage, honor and reward theabove values.The economic rationalists, market liberals and members of the corporate classare working hard to impose the above economic doctrines on the whole world.What is the result?
Global Income Distribution
World population distribution of arranged by income:[Source: UNDP, Human Development Report, 1999, Oxford University Press,New York 2000]*Top 200 corporations combined sales is equal to 18 times combined income of 1.2 billion people(24% of the world population) living in severe poverty.*1983-1999 top corporations profits grew by 362.4% while employment grew byonly 14.4%.* In India, government (both BJP and UPA) shows big figures of foreigninvestments, but they forget about the generation of employment:We can roughly say that investment increased by 425% in 5 years. This is onlythe foreign investment.[Source: Statistical Outline of India 2002-2003; Tata Services Limited, BombayHouse, Mumbai]
Background:
On April 15, 1994, 115 countries of the world concluded the final treaty of theGeneral Agreement on Trade and Tariff (GATT), and thus laid the ground rules of the World Trade Organization (WTO). The basic rules are:
 
Trade Related Investment Measures (TRIM).Trade Related Intellectual Property rights (TRIP).General Agreement on Trade in Services (GATS).
TRIM
This regulation abolished:1. The requirement for national treatment.2. The prohibition on Quantitative restriction.The first point means identical treatment has to be extended to domesticproducts and to imports. With this clause, the difference between nationalenterprise and foreign enterprise is dissolved.The second point means that the quantitative restrictions involving importlicenses and quotas on imports and exports should be abolished.NB: The Indian government recently abolished quota restrictions on 1423 items,against which a BJP M.P. protested and was consequently marginalized by theruling party - BJP.These two provisions will effectively allow full freedom for MNCs inundevelopedcountries, and will drain the foreign exchange and also ruin the small-scalesector of those countries.
TRIP
According to the provision of TRIP, the Indian Patent Law of 1970 has to beamended, which the present government did with the help of opposition parties,and thus befooled the masses.The Indian Patent Law of 1970 demands that separate patents have to beobtained for the process or the formula and for the product. Patents on essentialitems like agricultural products, human and veterinary medicines, surgicalinstruments, pesticides as well as defense and atomic energy-related items wereprohibited. In some cases, the patent on a process was allowed even though thepatent on the ensuing product was prohibited. This enabled the researchscholars to invent new processes for the same product.The new patent law in WTO extends the scope of patentability, thus restrictingthe scope to produce using modified processes. India was supposed to amendits patent law by 1999, which they did this year. For certain items such as food,chemicals, medicine and herbs, it has been extended for another five years. By2004 all national patent laws was supposed to be superseded by internationallaw. This year they are going to pass law accordingly.
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