GROWING THRUST OF CHALLENGES ON THIRD WORLD COUNTRIES AND OUR
INDIVIDUAL AND COLLECTIVE RESPONSE.
PROFESSOR DR SHAHIDA WIZARAT
I. Introduction
It is my great pleasure to be addressing the international conference on Business Strategy and Social Sciences organised by the Asian Economic and Social Society (AESS), here in this great city Kuala Lumpur. I would like to thank the AESS, particularly its President Qazi Adnan Hye for inviting me to deliver the keynote address and for his hospitality here in Malaysia. We feel so proud to see how developed Malaysia is, and has reached where many countries could not, due to their own follies or the machinations of world powers, or both.
Today I am going to deliberate upon the growing thrust of challenges faced by the Less Developed Countries (LDCs) emanating from globalisation and the militarisation that has engulfed the world post 9/11. I will try to draw your attention to the threats these challenges are posing to our countries and how we can face up to them both individually and collectively. What are our responsibilities as individual citizens, students, researchers, governments and regional powers. We all will have to play our roles if we want to save our countries, civilisations, established order and our future generations.
II. Challenges from Globalisation
Starting with the challenges associated with globalisation first.
While some countries have certainly benefitted from globalisation, the most spectacular example is that of China of course. China has used liberalisation very cleverly and effectively to become a global power. There are other examples such as Malaysia, Singapore and Indonesia that have brought development to their countries. Their remarkable development reflects what a difference honest and sincere leadership can make to a country.
But the vast majority of countries in the Third World have not been able to turn things around for the better. This is particularly true about countries that have been borrowing from the international financial institutions for budgetary support. Piasecki and Wolnicki (2004) state that only 20-25 percent of the global population directly benefits from globalisation, while for the remaining the benefits are either marginal or nonexistent. And out of total world population of six billion only 1.8 billion can afford goods and services available on the world market. While de Rivero (2001) states that only half of these have access to the banking system.
Ukpere and Slabbert (2009) state that there is overwhelming evidence for a positive correlation between globalisation, internationalisation and unemployment. They states that global unemployment has increased the rate of global inequality, while Haines (2001) states that the gap between the “global rich” and the “global poor” continues to grow. According to the UNDP Report (1999) income disparities between one fifth of the global population in the richest countries and their counterpart one fifth in the poorest countries was 30:1 in 1960, but increased to 74:1 in 1997. And that 42 percent of the world population which comes to 2.5 billion people are the world’s poorest and have a collective income equal to the wealth of the world’s richest 225 billionaires {see also Karliner, (1999); Ukpere and Slabbert, 2007)}. And the richest 20 per cent of the world population enjoyed 86 per cent of the world GDP, while the poorest 20 per cent had only one per cent. Therborn (2001) cited in Amin (2004) stated that the income of the richest one tenth of the households is more than 80 times the purchasing power of the poorest one tenth of the population as a result of the rich becoming richer and the poor becoming poorer, with the majority of these poor populations living in Sub-Saharan Africa, East and South Asia and Latin America. And this poverty manifests itself in the form of disease, hunger, malnutrition infant and child mortality, prostitution, child labour, violence, breakdown of established order, environmental degradation, conflict and war.
Ukpere and Slabbert stated that as a result of increase in global inequality global poverty has increased. While Salvatore (2004) stated that increases in income inequality and poverty in poorest developing countries can be attributed to globalisation. While the majority of the poor live in South Asia, Sub-Saharan Africa, East Asia also had a large number of the chronically poor people with a large majority of them living in China. Ukpere and Slabbert (2007) stated that :
“Most of the incidents increasing the rate of poverty around the world today cannot be attributed to nature, but to man and the selfish capitalist institutions created by man”.
They state that about “half of the 6 billion people in the world are poor; 8 million people die each year because they are too poor to stay alive, while 1 billion lives are in danger because they lack food, whilst living in a world of abundance. “
Trainer (2002) summarises it well when he says:
“Third World development is increasingly being seen as a process of vast, systematic, institutionalised and legitimised plunder. —– Third World countries have been developed into a condition in which their productive capacity, their land, labour, forests, and fisheries now produce mostly for the benefit of a relatively few rich people elsewhere.”
Trainer says as a result, Transnational Corporations (TNCs), instead of Third World governments are dictating Third World development, with the latter unable to direct foreign investment towards the needs of their citizens and prevent actions that hurt their national interest. An example of this is the tremendous increase in Genetically Modified crops acreage in the LDCs which according to the FAO has surpassed their acreage in the DCs. According to Wizarat (2013a) most of the food retailers in Karachi reported that they import lentils and fruits from Australia, Canada, India, etc., where there is widespread use of GM seeds. What is even more disturbing, is that many DCs such as Canada have given large tracts of land to their farmers to grow GM crops for export and aid to LDCs only. These crops are not allowed to be sold in the domestic market till such time that their effects on health in LDCs have been studied. On the contrary, many western NGOs such as the WWF have got vast tracts of land in Pakistan where they are growing organic foods for western consumers whose health matters!
Developed countries exporting GM food to developing counties have very strict laws about the consumption of these food products in their own countries. In most of these countries their consumption is strictly forbidden. They export these to countries like Pakistan where it is not mandatory to declare whether these are GM, and consumers are therefore totally unaware of the hazards from the foods they are consuming. In Pakistan GM seeds are used by corn and cotton growers, with 85 percent of cotton textile industry consuming Bt cotton (GM), while the vast majority of crops are still using natural seeds. TNCs producing GM seeds have kept up their pressure on federal and provincial governments in Pakistan to bring about amendments in the Seed Act and pass the Plant Breeders Protection bill. Previous Prime Minister Shaukat Aziz and the present Khyber Pukhtoonkhwa (KPK) parliament recently tried to pass these Acts, but their efforts were thwarted by the vigilance of civil society.
French scientists at the University of Caen in Normandy have reported a tremendous increase in cancer in rats that were fed with NK603 (GM corn variety) . While the World Health Organisation has reported that increase in cancer has has been of an epidemic nature all over the world. The same is corroborated by available data on the increase in the incidence of the disease in Pakistan. Cancer wards of leading Pakistani hospitals have witnessed a tremendous increase in the number of patients in recent years. Thus, greedy TNCs, DC governments and callous and corrupt LDC governments are turning their citizens into guinea pigs! Citizens in countries like Malaysia, Indonesia, Singapore, etc are better off, as retailers identify which foods are organic and consumers therefore have the knowledge to choose between GM and organic foods.
III. Challenges from Militarisation and Conflict
The second major challenge facing LDCs is the widespread and endemic conflict which has enveloped these countries. Countries across Asia, Africa, Middle East, etc are engaged in sectarian, ethnic and ideological conflicts. A common feature of these conflicts is that populations are polarised systematically into ethnic, sectarian and ideological groups with intensities varying in different countries. Some countries are in the fore front, others are somewhere in the middle, where conflict is brewing up, but has yet to result in open warfare. And some are on the back burner where seeds for polarisation are now being sown. For countries that are front runners these divisions have led to clashes and wars, leading to fragmentations, civil strife, instability and break down of established order as has happened in Afghanistan, Iraq, Libya, Sudan, Somalia, etc. Wizarat (2014a) found that one percent increase in world conflict increases DC GDP by 7.7 per percent, while resulting in decline in LDC GDP by 3.8 percent. The diverse impacts of conflicts on growth in the two groups of countries is understandable as post World War II all the conflicts have been exported to the LDCs. This results in instability, flight of capital, death and destruction in these countries, with negative impact on investment, employment and growth. While the peace and harmony in the DCs is conducive to growth, which gets a further boost due to export of armaments from the armaments producing countries in this group.
Wizarat (2013b) stated that an important factor triggering conflicts are the mineral and fuel resources in the LDCs, which can be gauged from their large and highly significant coefficients estimated at 1.258376 and 1.418989 respectively. These empirical findings are corroborated from information coming from countries under occupation like Afghanistan and Iraq. In Afghanistan, behind the smookscreen of finding Al Quaida and making the world a safe place, the US is looting lithium which is abundantly found in that country and can be used in the manufacture of hydrogen bombs in addition to other uses. Moreover, US has stored oil reservoirs along the sea shore from San Francisco to Los Angeles that it has looted from Iraq. So the pursuit of Al Quaida and other radical muslims is really a smoke screen that is taking NATO and rich western countries every where where there is fuel, coal, gas and minerals owned by people who do not have the brute force to defend their natural resources. The DCs are thus the major beneficiaries of conflict that is enveloping the world today on account of increase in the output of the industrial military complex and enabling the DCs to take control of natural resources from natural resource rich LDCs that do not have the means to protect these.
IV. Challenges on Account of Limits to Growth Theory
We live in a world order designed and implemented by major world powers, which post 9/11 means a sole super power, aided and abetted by its surrogates in the European Union. In order to understand the present world situation it is important to have information about concerns and problems to these powers. In these countries there are strong network s between academics, think tanks and policy makers. Policy recommendations derived from studies are used to formulate policies not only for the countries, but since these countries happen to formulate international world order, they are used for that purpose as well.
Jeffry Sachs (2007) is a leading US economist with links to policy makers in Washington. Sachs explores whether global development is sustainable if the developed countries continue to grow at their long-term per capita rate of 1.6% per year, while countries in Asia and other other parts of the world grow at their spectacular rates resulting in four to six- fold increase in world GNP. He says as world energy supplies are already stressed out with very alarming consequences on climates and the environment. Sachs says that the world will run out of oil and gas and might have to switch to coal. He says Australia, United States, China, India, etc have enough coal reserves and energy is not likely to limit growth in the present century at least. But such large scale consumption of coal will destroy the climate and the ecosystems. He therefore concludes that DCs and countries in Asia and other parts of the world cannot continue to grow at their present rates.
Extending the limits to growth theory further Trainer (2007) says that it would not be sustainable for people all over the world to emulate the living standards of rich countries like Australia. He says:
“We can only live like this because we are taking and using up most of the scarce resources, and preventing most of the world’s people from having anything like a fair share. “
Trainer says world population is expected to grow to 10 billion people in 2025, if these 10 billion people follow the rich countries food consumption pattern, which takes about .5 ha of cropland to produce, we will need 5 billion ha of land for food production. While at present we only have 1.4 billion ha of cropland in use and which is expected to decline further. Trainer goes on to say that the Intergovernmental Panel on Climate Change has recommended that in order to prevent carbon content of the atmosphere from rising we must reduce the use of fossil fuels by 60-80%. He says if we reduce it by 60% and share it among 10 billion people, each would get only 1/18 of the amount consumed per capita in Australia at present. The limits to growth argument led Trainer to suggest adoption of an alternative development model which is simpler and more accommodative to the needs of all, where growth in one part of the world does not have to be sacrificed to increase growth in other parts.
I think limits to growth model is the biggest challenge to globalisation. The limits to growth analysis has given rise to the policy recommendation that the trade off between the rates of growth of rich western countries and the emerging Asian countries has to be settled at the cost of sacrificing Asian rates of growth. And the best way to achieve this would be through engaging not only Asia, but the entire developing world in conflicts. This is further corroborated by the advise the Rand Corporation gave to the US government to resolve the Great Recession in 2008 by starting a global war. At that time the US was engaged in Afghanistan and Iraq and the Rand Corporation recommended that US engagements in these two countries alone will not be enough to get the global economy out of the deep recession. For if there is a trade off between the present rates of growth of the advanced western economies and emerging economies in Asia and elsewhere, the best way to stampede the rates of growth of the emerging economies is to engage them in conflicts. And as the empirical evidence in Wizarat cited earlier shows that conflict reduces the rate of growth of developing countries. In another study Wizarat (2014b) states that the high performing countries during the last three decades were not afflicted by the ‘resource curse’, till such time that they got involved in conflict, as is borne out by the experiences of Congo, Indonesia, Iraq, etc.
Thus we conclude that the positive effects of conflict on rich western economies are on three accounts. First, expansion of GDP in armament producing western economies. Second, facilitating the loot and plunder of resource rich developing countries that do not have the capability to protect their natural resources. Third, the best way to break the trade off between the rate of growth of western countries with those of the emerging markets in Asia is to engage the latter in conflicts.
While western economies are the major beneficiaries of global conflict, ground realities point the finger at their covert involvements in acts of terror in LDCs. Columbia University Law School’s Human Rights Watch stated that the FBI created terrorists out of law abiding citizens by encouraging people to commit acts of terror. Andrea Prasow, the rights group deputy director for Washington stated “———– many of these people would never have committed a crime if not for law enforcement encouraging, pressurising and sometimes paying them to commit terrorist acts.”
Several CIA and FBI operatives arrested in Pakistan had links with militants engaged in terrorist acts. Raymond Davis, a CIA operative was arrested in Pakistan in January 2011 for killing two Pakistanis. When he was arrested it was discovered that his laptop had links with 119 militants. An FBI operative was arrested in Karachi in May 2014 from Quaid-e-Azam International airport. A British national James Alexander Mclintock was first arrested in Pakistan in 2001 and handed over to the British authorities. He returned to Pakistan again in 2004. One fails to understand how some one charged with terrorism could get out of Britain and return to Pakistan to start his activities without the knowledge of the British government. In India an American by the name of Kenneth Haywood, was arrested in connection with the Ahmadabad blasts as his laptop had links to the blasts, but was allowed to leave India in spite of the fact that Indian IB was investigating the matter.
The involvement of a hidden hand has been found in other countries also. In Mandalay, Myanmar the alleged rape of a Buddhist woman by two muslim men that triggered large scale rioting leaving 280 dead and 140,000 homeless was later found to be fabricated. The woman confessed that she was paid $1 million for making the false claim.
The intensity of the crises and the causes vary in different countries. In Afghanistan it was Al Qaida, in Iraq it was Weapons of Mass Destruction (WMDs) which were never found. In many Arab countries the emphasis is on removal of cruel dictators, but only if they are not acceptable to Western powers. In many African countries the divisions are on ideological grounds, while efforts are now on to divide Iran along the conservative versus liberal lines. While in Afghanistan, Iraq, Syria, Egypt, Sudan and Somalia the crises have peaked, in some others they are being taken towards a climax. In the past efforts have concentrated on bringing to climax the standoff between the State of Pakistan and Al Qaida and Taleban. I would be inclined to place Pakistan in the category where efforts are now under way to take us towards a peak in 2015. This is in line with Global Trends 2015 prediction that by 2015 KPK and Baluchistan will not be under the control of the federal government. And not just in Pakistan, but in the entire developing world, societies are being polarised on ethnic, sectarian, religious versus liberal, democratic versus dictatorial, etc, basis. The basis of the division doesn’t matter as long as it leads to conflict.
All indications are and as pointed out by Kaplan in his book “Asia’s Cauldron: The South China Sea and the End of a Stable Pacific” that the region is “a vital fulcrum between the ongoing political struggle for supremacy between the United States and China.” Kaplan points out that this region contains the world’s largest reserves of oil and natural gas after Saudi Arabia. He says: “. —— America’s historic, colonial control over the Philippines, and its recurrent modern involvement in Taiwanese politics have led to the South China Sea becoming a future war zone, with the welfare of many countries being at stake.” The same is corroborated by recent happenings in the region like the loss of two Malaysian Airlines planes in quick succession and the combing of the area by several world powers, notably the US and Australia searching for the plane, point the finger towards the eyeing of this area by major world powers. And the recent defence agreement between the US and Australia reflects that preparations have already started towards that end.
V. Responding To These Enormous Challenges
Without sounding alarmist, the dangers that lie ahead have to be recognised and policies formulated to respond to these to preempt them in countries where they are still in a nascent stage. The response will vary from country to country depending on the extent to which the crises have affected them. We have to respond to these enormous challenges both individually and collectively. The question we need to ask ourselves is: how can we prevent the free fall of our countries into chaos and disorder. There are some general recommendations to the challenges and some specific to the type of challenge we face. Moreover, some responses are of an individual nature, while others are collective.
First, one observation that I have made with reference to the growing crises in Pakistan is that greater exposure to western countries is being used to create a constituency which helps in polarising the society. I would suggest a more prudent approach to a close embrace, whether the embrace is in the form of relaxation in visa restrictions, partnerships between educational institutions, exchange of students and academics.
Second, as citizens we must be ready to sacrifice private benefits for the larger collective benefits of the society in which we live.
Third, as students, civil society members, media, intelligencia, intelligence agencies and other state institutions we have to ensure that we preempt the polarisation of our countries into sectarian, ethnic, ideological and political groups. Each one of us will have to play our role to preempt the polarisation, which will be nurtured and fanned by outsiders who benefit from conflict.
Fourth, in order to prevent governments from adopting socially detrimental policies like borrowing from the IMF, coming under pressure from companies that manufacture GM seeds we have to form pressure groups and become socially and politically active. We also have to devise strategies aimed at bypassing the GM food market by growing our fruits and vegetables in our kitchen gardens and exchanging them with our neighbours. Moreover, political activism aimed at bridging the disconnect between the government and the citizens is being recommended.
Fifth, as researchers we should do more relevant research rather than just rigorous research aimed at increasing our publications in academic journals or paid research just to earn more money.
Sixth, governments in LDCs should establish research centres to do relevant research, especially on the challenges confronting us and formulating our response. Network between academics and research centres in LDCs should be promoted.
And finally, the role of regional players in stabilising societies and adopting a collective response is being recommended. Closer economic, political and strategic integration of countries in the region will give countries strength to face up to these challenges. BRICS countries vary in size, are geographically far apart and consist of countries that are rivals rather than allies. I am proposing the formation of another such block composed of countries in South and East Asia, except India which is already member of BRICS. We could initially start off with Pakistan, Afghanistan (after occupation), SriLanka, Nepal, Bangladesh, Iran, Turkey, Malaysia, Indonesia, Thailand and Singapore. This group can be extended later with a view towards ensuring that it is self sufficient in food, fuel and armaments. Countries from Central Asia and Latin America can be added, to make the group self sufficient in oil and gas. The group should aim for Collective Self Defence under Article 51 of the UN Charter, which can be ensured by Pakistan providing a nuclear umbrella to the group.
Successful integration of BRICS countries will help to make the world bipolar. While the BRICS are open to other countries joining them, they have stated that the original BRICS countries will continue to have 55 percent voting rights. Other countries joining this block, will therefore, not be from a position of strength. So the integration of countries I have suggested will change the world order from bi polar to multi polar. Moreover, if at some stage, this group wants to merge with BRICS it will be at liberty to do so, but only on the basis of equality.
References
Amin, A. (2004), “Regulating economic globalization”, paper presented at ESRC-SSRC Workshop, St Hugh’s College, Oxford University, Oxford.
Chossudovsky, M. (1997) The Globalisation of Poverty, London, Zed Books. Daly, H. and J. Cobb (1989) For the Common Good, London, Green Print.
Daily Dawn, Karachi, 21 and 22 July 2014.
Goldsmith, E. (1997) “Development as colonialism,” in J. Mander and E. Goldsmith, The Case Against the Global Economy, San Francisco, Sierra.
Haines, W.W. (2001), “Poverty: a worldwide form of injustice”, International Journal of Social Economics, Vol. 28 Nos 10/11/12, pp. 861-78.
Kaplan, Robert D, (2014), Asia’s Cauldron: The South China Sea and the End of a Stable Pacific, Random House, USA.
Karliner, J. (1999), “Co-opting the UN”, The Ecologist, Vol. 29 No. 5, p. 320.
Piasecki, Ryszard and Miron Wolnicki, (2004), The evolution of development economics and globalization, International Journal of Social Economics, Vol. 31 No. 3, pp. 300-314
Emerald Group Publishing Limited.
Rist, G. (1997), The History of Development, London, Zed Books.
Sachs, Jeffrey D, (2005), Challenges of sustainable development under globalisation, International Journal of Development Issues Vol. 4, No. 2 1-20, Emerald Group Publishing Limited.
Salvatore, D. (2004), “Growth and poverty in a globalizing world”, Journal of Policy Modeling, Vol. 26, pp. 543-51.
Trainer, T. (1995) The Conserver Society: Alternatives for Sustainability, London, Zed Books.
Trainer, T. H. (2000) “Two common mistakes about globalisation”, International Journal of Sociology and Social Policy, Vol. 20, no 11/12, pp.46 – 58, Emerald Group Publishing Limited
Ukpere, W.I. and Slabbert, A.D. (2007), “Is socialism actually dead and buried?”, World Journal of Organisational Dynamics, Vol. 1 No. 1, pp. 3-7.
UNCTAD (1999), Report of the Secretary General of UNCTAD to UNCTAD X, TD/380, United Nations, Geneva, July.
Wilfred I. Ukpere, Andre D. Slabbert, (2009) “A relationship between current globalisation, unemployment, inequality and poverty”, International Journal of Social Economics, Vol. 36: no 1/2, pp.37 – 46, Emerald Group Publishing Limited.
Wizarat, Shahida (2013a), Meeting Food Security – GM or Organic Way? Centre for Research and Statistics, www.crestat.org
Wizarat, Shahida, (2013b), Natural Resources, Conflict and Growth Nexus, Asian Economic and Financial Review (AEFR), Asian Economic and Social Society (AESS), Vol 3, No 8, August.
Wizarat, Shahida, (2014a), Natural Resources, Conflict and Growth: Uncovering the Transmission Mechanism, Asian Economic and Financial Review (AEFR), Asian Economic and Social Society (AESS), Vol. 4, No 8.
Wizarat, Shahida, (2014b), Are Resource Abundant Countries Afflicted by the Resource Curse, International Journal of Development and Conflict, 4, Australia.
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