'The United Nations is still becoming, still imperfect, but it is all we have'
Guyana and the Wider World
Stabroek News
January 5, 2003

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Last week I advanced the view that globalisation is facing its first major test and that, in the process, to quote former President Carter: "the world is now, in many ways, a more dangerous place." The precipitating factor behind this development has been the terrorist attacks in the USA on September 11, 2001, and the aftermath in which the Bush administration openly declared "war on terrorism." The seeds of the al Qaeda attacks on the USA were sown well before they were executed on 9/11. So too were the two other events which have converged with it adding substantially to the sense of crisis and insecurity worldwide. As pointed out last week these are the prolonged global economic slowdown and the recurrence of yet another major financial crisis, this time in several Latin American states. Economic fluctuations and repeated financial crisis have characterised the deepening and widening of globalisation. Last week I offered evidence in support of the former assertion.

The financial crisis in Latin America follows hot on the heels of the stock market crash in the USA, Europe and Asia (mainly Japan). Following the liberalisation of foreign exchange and financial markets worldwide since the 1980s, investors have suckered millions of persons and trillions of dollars into an enormous Ponzi scheme. The dramatic collapse of the US stock market and the revelations of corruption and fraud by mega-firms like Enron and WorldCom signify the bursting of the biggest financial bubble in the history of the world. These effects are still reverberating around global markets heightening risk and generating enormous uncertainty and investment unease. The Caribbean's financial bubble has not yet fully burst, but one must wonder for how long when, for example, Jamaica with its persistent negative economic growth and depreciating exchange rate in the 1990s can still be reporting unprecedented profit making and buoyant returns on its capital and stock markets. Several profitable firms seem to owe their profitability less to their 'core activities,' and more to unrelated financial transactions in which they are engaged. In many ways this is reminiscent of the flawed corporate governance revealed in such scandals as Enron and WorldCom.

National Security Strategy
At this juncture, to my mind, the deadliest policy development has been the release by the Bush administration of its National Security Strategy on September 26, 2002, followed by the recent announcement on December 10, 2002, of what would be the US response to the threat of chemical, biological, or nuclear attacks on US soil or against US troops or its overseas allies. In the latter document the US has embraced the doctrine of pre-emptive strike as part of its national strategy. For the first time it has openly and publicly committed to the preemptive use of military and covert force, although it has practised that in the Americas before. Alongside this it has made the further declaration to use unlimited retaliation to any such attack, including the use of nuclear weapons. Tellingly the Washington Post has reported that a top secret Appendix to the latter document refers specifically to Iran, Syria, North Korea and Libya!

This policy stance follows the Bush administration's disengagement and/or retreat from a number of major international undertakings, which are directed at limiting weapons of mass destruction, preserving the environmental stability of the globe, and controlling global crime. The first includes agreements to ban nuclear testing and the International Convention Against Biological Weapons. While the second and third respectively, refer to the global programme to reduce global warming and the formation of an International Criminal Court. Of note these pronouncements were followed within a few days by the announcement that the USA had commenced to build its Star Wars Defense Programme, initially proposed by President Reagan at the peak of the Cold War.

Two options
As I stressed last week, the evidence is unmistakable that globalisation is now confronted with two stark choices, both of which cannot be advanced in a sustainable manner simultaneously, as each is the direct antithesis of the other. One is for the international community to move in the direction of a multi-polar interdependent world, which sets peace with justice and the abolition of poverty as its overriding objective. In this instance US power and wealth are used to advance this agenda. The other option is for the US to use its might to coerce the world into its grand design for it. As the undisputed superpower of our times, the US' hegemony in all the important areas of social existence is frightening in its totality. The temptation, therefore, to seek to make the world after its own image, is backed by an enormous capacity to make a real effort at it. While the temptation to try is enormous in truth, however, history has taught us one unchallengeable lesson, that is, no empire and for that matter no hegemonic state, can maintain its 'rulership' for all time and all ages. The mortality of humans and the constancy of change will always ensure this outcome.

Having said that, however, throughout history we find that a great deal of human effort and lives have been wasted because ruling groups delude themselves into believing in their own invincibility and eternity. It was for me extremely timely that only last week (published in last Sunday's SN) former President Bill Clinton found it necessary to remind the world-at-large, including the Bush administration and fellow Americans that within three decades the Chinese economy could well become as large as the USA. And, for that matter, so too could the Indian economy (if resources are not directed to the struggle with Pakistan), and the European Union (if it forged a political unity). This reminder was no doubt a prod aimed at deflecting the US administration away from its present course of action, which could bring incalculable harm not only to itself, but also to common humanity.

Multilateralism and the United Nations
The first option is in my view beyond a doubt the desired option. As we face a New Year we should bear in mind that its prospects for acceptance and success depend on the spread of genuine multilateralism at the global level in order to combat the unilateralism all hegemonic states are tempted to pursue. With increased poles of economic might (Russia, China, the European Union, and Brazil) this would be easier, but it would take decades for these counterweights to US dominance to rise into the required prominence. The immediate goal therefore must be the more modest pursuit of limited forms of intergovernmental governance. This however has to be democratically structured. In our present globalised world the IMF, World Bank, and WTO form the dominant umbrella arrangement through which the global economy is regulated. These institutions as we have seen in our previous review of them, while progressively narrowing the scope of national autonomy in economic decision-making, are doing so unevenly among countries, with the poor countries disproportionately constrained. The reciprocating influence of the poor countries over these regulatory authorities remains very restricted in comparison with that of the rich countries, resulting in serious global inequities.

In the end, however, it is the United Nations along with its specialised agencies that remain in my view the critical institution of our age. This is not widely admitted, and even less so by the innumerable critics of the UN system who dismiss such hopes as fanciful. I am heartened, however, by the fact that no less a practitioner than former President Clinton has sought to remind us: "The United Nations is still becoming, still imperfect. We have not always done our part in it, but it is all we have, and now that we live in an interdependent world, it must have our full support in building an integrated global community."

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