Posts tagged with: globalization

I’ve been on record more than once regarding my own doubts and criticisms of the precise political pronouncements made by various church groups, especially offices and branches seemingly representing the institutional church. So when I see something sensible and good coming from these same sources, it’s only right and fair that I acknowledge and celebrate them.

Here are two items worthy of notice:

The first is from the newsletter of the Office of Social Justice and Hunger Action (OSJHA) of the Christian Reformed Church, which linked to an article, “Can Violence Ever Lead to Peace?” In this piece Paul Kortenhoven explores how “the use of violence in reaction to an extremely violent attack by an extremely violent rebel force simply stopped them. Along with the British stance in Sierra Leone, this also was a main catalyst for peace.”

I have to say I was pretty surprised to see an explicit acknowledgment of the positive role that military and coercive intervention can play as a backdrop for lasting peace. Kortenhoven’s piece is the diametric opposite of what IRD’s Mark Tooley has called in another context the attitude of “pseudo-pacifist academics and antiwar activists.”

It’s an article that takes seriously the complexities involved in answering such questions as, “How, in a world of such strife, are Christians to build peace? How should we think about war? And how do we talk to one another about these issues with open hearts and minds in patience, love and humility?”

The second item of note comes from the ecumenical world, where at the end of last month leaders of WARC “called for the lifting of the United States’ economic embargo against Cuba in the interest of justice and right relationships.”

Unfortunately, this position shouldn’t be construed as part of a broader agenda pursuing economic liberty and international openness, linked as it is to the overall “covenanting for justice” outlook of the 2004 Accra, Ghana meeting. How can you decry embargoes and at the same time militate against “neoliberal economic globalization”? Your guess is as good as mine, but at least on the issue of the Cuba embargo, WARC leaders are in the neighborhood of a prudent approach.

Beyond this, I do have a word of concern as well as praise. Regardless of the rightness of the positions espoused above, there is the methodological and eccelsiological issue of whether these are the appropriate groups to be campaigning for such things. That is, should the institutional church, which the ecumenical clearly fancies itself as representing, be speaking so clearly and particularly on prudential policy matters?

AGAIN Magazine has published my “Conflicted Hearts: Orthodox Christians and Social Justice in an Age of Globalization.” The magazine is produced by Conciliar Press Ministries, Inc., a department of the self-ruled Antiochian Orthodox Christian Church of North America.

Excerpt:

Just as there is no real understanding of many bioethical issues without a general grasp of underlying medical technology, there is no real understanding of “social justice” without an understanding of basic economic principles. These principles explain how Orthodox Christians work, earn, invest, and give to philanthropic causes in a market-oriented economy. Economic questions are at the root of many of the problems that on their face seem to be more about something else—poverty, immigration, the environment, technology, politics, humanitarian assistance. In the environmental area, for example, the current debate on global warming is just as much focused on how to finance the means of slowing the rising temperatures of the earth as it is on root causes. And the question always is: Who will pay?

What, exactly, is social justice? It is an ambiguous concept, loaded with ideological freight. No politically correct person would dare oppose it. To be against “social justice” would be tantamount to opposing “fairness.” Today, the term is most often employed by liberal-progressive activists and a “social justice movement” that advances an economic agenda which includes such causes as a “living wage,” universal health care and expanded welfare benefits, increased labor union powers, forgiveness of national debts in the developing world, and vastly increased transfers of foreign aid from rich countries to the poor. Because religious conservatives tend toward support for free market economic systems, they have largely shunned the “social justice” agenda and its government-based solutions.

Read the entire article here.

Blog author: jballor
posted by on Thursday, February 7, 2008

In any period of economic transition there are upheavals at various levels, and winners and losers (at least in the short term). We live in just such an age today in North America, as we move from an industrial to a post-industrial information and service economy, from isolationism to increased globalization. There’s no doubt that there have been some industries and regions that have been more directly affected than others (both positively and negatively).

Michigan, for example, has been one of the most manufacturing-rich states in the nation for the last century, and has been running record unemployment numbers for the last decade or so, as manufacturers move to more friendly economic environments, both within the US and without. Not least of these factors contributing to Michigan’s competitive disadvantage is the high labor costs associated with a labor union-laden state.

The perception that manufacturing workers are simply being left behind in the new economy is pervasive, such that popular opinion is shifting away from free trade. As Fortune magazine reports, “A large majority – 68% – of those surveyed in a new Fortune poll says America’s trading partners are benefiting the most from free trade, not the U.S. That sense of victimhood is changing America’s attitude about doing business with the world.”

As an aside, this is a perception that doesn’t quite match up with the typical caricature of globalization. After all, how can both America (as the “imperial” dominator) and the developing world (as the exploited poor) both be made worse off by international trade?

If it were truly the case that global trade weren’t mutually beneficial, that would be one thing. What’s visible on news reports everyday are the layoffs, buyouts, and unemployment levels in the US. What isn’t always so visible is the extent to which Americans depend on the low prices associated with many imported goods. One group you might think should know better than the average American about such complexities are professional economists. (more…)

Last month the World Bank published a report titled, “Where is the Wealth of Nations?” (HT: From the Heartland). The report

describes estimates of wealth and its components for nearly 120 countries. The book has four sections. The first part introduces the wealth estimates and highlights the level and composition of wealth across countries. The second part analyzes changes in wealth and their implications for economic policy. The third part deepens the analysis by considering the importance of human and institutional capital, and by linking wealth to production. The fourth part reviews existing applications of resource and environmental accounting in developed and developing countries.

Also out recently is an index of the most globalized nations by Foreign Policy (HT: International Civic Engagement). The top ten, based on 2005 data, which claims to “measure countries on their economic, personal, technological, and political integration”:

  1. Singapore (252,607)
  2. Hong Kong (NR)
  3. Netherlands (421,389)
  4. Switzerland (648,241)
  5. Ireland (330,490)
  6. Denmark (575,138)
  7. United States (512,612)
  8. Canada (324,979)
  9. Jordan (31,546)
  10. Estonia (66,769)

In parenthesis after the name of the country in the top ten, I’ve placed the total wealth estimate for the year 2000 from the World Bank report (appendix 2 PDF).

Look at Estonia, for example. Even though its total wealth score is much smaller relative to other nations on the globalization list, the majority of its wealth score (41,802) in the World Bank report is garnered from “intangible capital,” which refers to, as the From the Heartland blogger put it, “the value of the nation’s economic and political institutions,” such as the rule of law. And now compare Estonia with the Republic of Congo, which has almost the same ratings in terms of tangible capital as Estonia, but whose -12,158 intangible capital rating keeps its total wealth score disturbingly low (3,516).

Clearly it isn’t the case that countries that only have rich natural resources have something to offer the international marketplace. Strong and responsible economic and political institutions can foster intellectual creativity, technological innovation, and social capital that more than makes up for deficits in natural resources.

Related to Sam Gregg’s Acton Commentary today, “Free Trade: Latin America’s Last Hope?” I pass along this ENI news item: “Growing rich-poor gap is new ‘slavery’, say Protestant leaders.”

Globalization and free trade are the causes of a new class of worldwide slavery, say the ecumenical officials. Citing the foundational 2004 Accra Confession, Rev. Clifton Kirkpatrick, the president of the World Alliance of Reformed Churches, says that “an even more pernicious form of human enslavement is being wrought on millions through the process of neoliberal globalisation that is driving a dramatic and growing wedge between the rich and the poor.”

These statements come at a critical time in the history of the Reformed ecumenical movement. The Reformed Ecumenical Council and the World Alliance of Reformed Churches have joined this week to become one organization:

Reformed church groupings agree to create new global body

Port of Spain (ENI). The World Alliance of Reformed Churches has agreed to unite with the Reformed Ecumenical Council to create a new “global entity” that will group 80 million Reformed Christians. “This is a truly, truly important moment,” said WARC president the Rev. Clifton Kirkpatrick after the alliance’s executive committee, meeting in Trinidad, voted unanimously on 22 October to unite with the REC, whose executive committee had agreed to the proposal in March. The Geneva-based WARC has 75 million members in 214 churches in 107 countries, while the Grand Rapids, Michigan-headquartered REC has 12 million members belonging to 39 churches in 25 countries. Of the REC’s member churches, 27 also belong to WARC. [ENI-07-0815]

It’s not clear at this time if the conditions laid out in 2005 are those under which the union has taken place. This merger is significant in many ways, not least of which is the requirement of the Church Order of the Christian Reformed Church that its Synod “shall send delegates to Reformed ecumenical synods in which the Christian Reformed Church cooperates with other denominations which confess and maintain the Reformed faith” (Article 50). Citing Calvin once in awhile and promulgating platitudes about the sovereignty of God doesn’t mean you are Reformed.

In response to concerns from member churches from the global North that the Accra Confession is not sufficiently doctrinal, Rev. Setri Nyomi responds, “The Reformed family recognises the sovereignty of God … We do not separate whether God is sovereign in the mundane and in the spiritual realm. Therefore our stance on social issues is consistent with the doctrinal claim of sovereignty.”

Quite frankly the WARC leaderships rhetoric about income and wealth disparity as a “more pernicious form of human enslavement” is offensive on a number of levels besides its doctrinal spuriousness. It’s offensive to those who actually are slaves today (sex trafficking is a huge global issue). And it’s insulting to those whose historical legacy involves victimization by the practice of chattel slavery.

WARC is more than happy to talk about “slavery” in material terms, identifying anything other than complete egalitarianism with injustice and bondage. But the one kind of slavery you won’t hear WARC discuss is the sense in which it is put forward most prominently in the Scriptures: bondage to corruption and sin in a personally and individually relevant way.

When Christ said, “if the Son sets you free, you will be free indeed,” he didn’t have globalization in mind.

Blog author: jballor
posted by on Wednesday, October 17, 2007

In answer to the query in the headline of this week’s Acton Commentary, “Who’s Afraid of Free Trade?”, I submit the following: the ecumenical movement. Note the following news item from Ecumenical News International:

Church groups mount week of action to transform global trade

Geneva (ENI). Faith groups have joined activists around the globe in calling for fair, equitable and just trade policies while urging churches to join a Trade Week of Action that seeks to promote alternatives to the global system of commerce. “During this week, the churches and other organizations will tell the world that enforced free trade is causing poverty and that there are viable alternatives,” said Linda Hartke, coordinator of the Geneva-based Ecumenical Advocacy Alliance, which has organized the 14-21 October Trade Week of Action. “When the systems we have created to buy, sell and share goods cause hunger and suffering then these systems are wrong. Every voice counts, and every action makes a difference,” Hartke told Ecumenical News International. [ENI-07-0798]

A recent NBER paper, “Distributional Effects of Globalization in Developing Countries,” by Pinelopi Koujianou Goldberg and Nina Pavcnik examines some effects of trade liberalization on low-skill workers.

Les Picker summarizes the findings, “Not surprisingly, the entry of many developing countries into the world market in the last three decades coincides with changes in various measures of inequality in these countries. What is more surprising is that the distributional changes went in the opposite direction from what the conventional wisdom suggests: while trade liberalization was expected to help the less skilled, who are presumed to be the relatively abundant factor in developing countries, there is overwhelming evidence that they are generally not made better off relative to workers with higher skill or education levels.”

There’s a lot more here to digest and the article has some predictably necessary nuances and caveats, not least of which concerns the problematic elements of trying to find a causal link between temporally related phenomena: “The authors’ findings suggest a contemporaneous increase in various measures of globalization and inequality in most developing countries, although establishing a causal link between these two trends has proven more challenging. However, the evidence has provided little support for the conventional wisdom that trade openness in developing countries would favor the less fortunate.”

It’s one thing to say that globalization proportionally rewards more highly educated and skilled workers relative to less educated and skilled workers. This by itself is not obviously unjust, and indeed, it seems to pass a basic sense of justice that jobs that require more skills and training ought to command a higher wage. Maybe a system that distributes more unevenly according to a measure of merit such as education or skill-level is more just than another system which is more equitable in purely distributive terms.

That said, it’s quite another thing to say that low-skilled workers are not made better off in absolute terms by globalization. I’m inclined to think that we shouldn’t be so concerned about relative disparities as we are by comparing in absolute terms the state of the working poor under systems of liberal versus illiberal trade.

If the working poor are better off under a liberal trade regime than an illiberal one, and higher educated workers are paid relatively more, there is a simultaneous increase in the poor’s immediate economic prospects as well as a relative increase in the economic incentive to improve their skills.

But his latter point only is effective in a situation where labor mobility is a real option, and as the NBER paper points out, “the strict labor market regulation that many developing countries had in place prior to the recent reforms is a potential source of labor market rigidities.”

So, for the promise of globalization to be realized, trade not only needs to be liberalized, but so does labor. Workers need to be free to move between sectors, both within and without national boundaries. As I’ve argued before in another context, we need both free trade and free labor.

For more on international labor mobility among low-skill workers, see this NYT piece, “Short on Labor, Farmers in U.S. Shift to Mexico.” See also, “New UN Report Underscores Ties between Poverty and Productivity.”

An op-ed in today’s NYT by James E. McWilliams, “Food That Travels Well,” articulates some of the suspicions I’ve had about the whole “eat local” phenomenon.

It seems to me that duplicating the kind of infrastructure necessary to sustain a great variety of food production every hundred miles or so is grossly inefficient. Now some researchers in New Zealand have crunched some numbers that seem to support that analysis:

Incorporating these measurements into their assessments, scientists reached surprising conclusions. Most notably, they found that lamb raised on New Zealand’s clover-choked pastures and shipped 11,000 miles by boat to Britain produced 1,520 pounds of carbon dioxide emissions per ton while British lamb produced 6,280 pounds of carbon dioxide per ton, in part because poorer British pastures force farmers to use feed. In other words, it is four times more energy-efficient for Londoners to buy lamb imported from the other side of the world than to buy it from a producer in their backyard. Similar figures were found for dairy products and fruit.

McWilliams closes with some compelling questions about stewardship of the environment, food production, and trade:

Given these problems, wouldn’t it make more sense to stop obsessing over food miles and work to strengthen comparative geographical advantages? And what if we did this while streamlining transportation services according to fuel-efficient standards? Shouldn’t we create development incentives for regional nodes of food production that can provide sustainable produce for the less sustainable parts of the nation and the world as a whole? Might it be more logical to conceptualize a hub-and-spoke system of food production and distribution, with the hubs in a food system’s naturally fertile hot spots and the spokes, which travel through the arid zones, connecting them while using hybrid engines and alternative sources of energy?

Read the whole thing, as they say.

On today’s Diane Rehm Show, a panel of experts discussed the pending energy policy legislation in the US Congress. Karen Wayland, legislative director of the Natural Resources Defense Counsel talked about the need to join the concepts of national security and climate change when discussing energy policy (RealAudio).

From her perspective, these two concerns are tied up together and shouldn’t be separated, in part because if you take energy independence and national security alone, you might think that reliance on coal would be the best option.

“If you go down the path of energy independence separate from considering global warming what you get is the possibility that some of the solutions to energy independence, like coal-to-liquids, actually leads you to higher global warming emissions,” says Wayland.

Wayland and the NRDC don’t want to see “is this jumpstarting of a whole new industry for coal, which is the greatest emitter of carbon dioxide.”

The linkage of concerns about climate change to international security policy is a critical part of an emerging narrative of international relations. For instance, new UN Secretary General Ban Ki-moon has said of the genocide in Sudan, “The Darfur conflict began as an ecological crisis, arising at least in part from climate change.” This is the latest in a long series of attributions of blame for global crises coming from leading international figures. Following the tsunami in the Indian Ocean in 2004, ecumenical faith leaders blamed the extent of the damage on man-made global warming.

Then, as now, I think that using tragedies and conflicts like the tsunami or the Darfur genocide to advance an ideological agenda, like the fight against global warming, is irresponsible. Ban Ki-moon may indeed be right to point out the ecological roots of the Darfur situation. When necessary commodities are scarce, it is not surprising that conflict often arises.

But to connect that particular situation, directly or indirectly, to man-made climate change (driven in large part by Western economies, most especially America) smacks more of opportunism than legitimate and responsible commentary. And if this kind of narrative becomes the dominant one politically, you can expect there to be talk of environmental economic reparations from the industrialized world to the developing world.

Last week, the Southern Baptist Convention issued a statement about global warming that acknowledges the intimate linkages between global concerns about the environment, peace, and prosperity. According to MSNBC, “The SBC statement frames the global warming debate as a moral issue with profound implications for the poor — but does so through a different lens.”

“Our concern is for the vulnerable communities as well,” said Barrett Duke, vice president for public policy and research with the SBC’s Ethics and Religious Liberty Commission. “But we think if the data is being misinterpreted, and policies are being implemented to reduce the human contributions, those policies are bound to drive up the costs of goods and services for poor and underdeveloped parts of the world.”

Increased and growing poverty and environmental devastation do indeed have profound implications for geo-political relations, and particularly so when the blame flows only one way. But against the narratives of Western oppression and victimization of the developing world, we need to better understand and articulate the positive aspects of a globalized, interdependent, and interconnected political and social economy.

Economic globalization has lifted millions out of dire poverty and is an unparalelled engine of wealth creation. But, like other economic systems, it needs the moral framework that the Church provides to guide it as a humane force for good. Brian Griffiths, vice chairman of Goldman Sachs International, examines the role of faith in a rapidly globalizing world in this excerpt from his new Acton monograph.

Read the full commentary here.