The Written Word
for July 14, 1999

One of the more unfortunate, nay devastating effects of globalization is the threat to world peace. With globalization, capital moves freely subject to virtually no governmental constraints. The difficulty is that governments cannot really act - the silicon chip bringing with it communications of money and decisions in nano seconds has made the control of money transfer virtually impossible.

Governments are not entirely without their resources but without massive international cooperation where is not much they can do. Just look what George Soros did to the British pound a few years ago. The John Major government reckoned they could keep the pound within the European monetary exchange mechanism but Soros bet they could not. Soros won and made a billion dollars for his troubles. Look at the sinking value of the euro dollar - the market forces outweigh the economic weight of the European Community.

But how the danger to world peace?

Globalization brings with it many benefits to many countries. It is an uncertain pleasure giver because it can withdraw its affections as quickly as it can bestow them. But in the main, countries which benefit will do so very quickly.

On the other hand there are poor third world countries upon whom no self respecting capitalist looking for the biggest bang for the buck will touch. And some of these countries have developed or are developing the ability to make big bombs and the ability to deliver them. Two places which come readily to mind are Iraq and North Korea. The United States thinks it has Iraq under its nose but it doesn't. Tools of mass destruction can be built much more easily nowadays. North Korea is truly a frightening place - its people are starving and its government mad. It has nuclear weapons and because its obvious targets are so close, the ability to deliver them.

There are other dangerous ramifications. Places, like Brazil, have huge poverty which can only be slightly ameliorated by desecrating the environment. Unless the electronic herd comes and stays in places like Brazil, the economy will take a battering. Since the herd is not into social issues - unless they make heaps of money - these countries are out of luck.

It is in these areas that governments - especially developed countries - must develop strategies. It is silly to simply list the complaints one has about the way the world operates and offer solutions which will try to undo decisions which cannot be undone.

MAI was defeated, largely because of the left - though many non left people were concerned - and probably it should have been. But something like it must be put in place so that where individual countries may have trouble dealing with globalization, collectively nations can exercise influence.

The problem is not that heads of nations don't understand what is happening so much as their peoples may not be up to speed often because those same politicians have not dealt with the problems openly.

The main problem with the electronic herd is not when they invest so much as when they dis-invest in order to move elsewhere. This is where the individual nation is helpless where collectively nations can act.

It's a scary new world out there. The old truths have become passe. Unpleasant and uncomfortable though it may be to face globalization realistically rather than shout shop worn slogans at it, this is what Canada must do if it is not only going to survive globalization but prosper in it.

It is what we all must do if we are to avoid unpleasantness unto war.