Globaleyes

Opposition or Political Engagement? A Christian Response to Globalization

By Robin White

This is the eighth in a series of articles on economic globalization sponsored by the Peace Ministries Program of Mennonite Central Committee Canada. The writers are young adult Canadians who are studying and thinking about globalization and who are seeking to make a difference.

 

 

 

 

Is globalization really undesirable?

Critics accuse economic globalization – with its focus on greater trade integration - as being the source of a host of problems, including increased poverty, human rights violations and environmental degradation. The process of globalization may be deeply flawed, but does this mean that globalization is inherently undesirable?

Economic globalization, involving the removal of barriers to trade and investment, was motivated by the failure of heavy trade protection to help countries develop in previous decades. Economies stagnated, industries became inefficient and corrupt governments siphoned off money from large state marketing boards at the expense of the poor. A return to trade protectionism would neither help developing country economies nor provide a solution to environmental and social ills, which can equally occur under closed economies.

From my three years experience working in rural Burkina Faso, I observed that poverty was a result, not of too much global trade integration, but not enough. In such a poor country there is so much untapped potential. The country should have a competitive advantage in producing many goods it now imports for domestic consumption. Why is there no garment manufacturing in one of the largest cotton producers in West Africa? Why is there no large-scale harvesting of cashew nuts or mangoes for export? Why is there no solar panel production despite access to some of the world’s highest quality silica? If Burkina Faso had more developed industries providing alternative livelihoods, perhaps the highly degrading subsistence agriculture that I saw would not be so prevalent.

The benefits of globalization

Globalization – at least truly global trade liberalization – can be beneficial. Trade barriers, particularly on agricultural goods and more value-added processed goods, prevent many developing countries from attaining their export potential. Elimination of these barriers is widely recognized among development experts as one of the single most effective ways to fight poverty. The World Bank estimates that developing countries would gain more than $140 billion – an amount exceeding foreign economic assistance - by the elimination of subsidies and trade barriers to developing country agricultural imports.

Leveraging trade as a means to fight poverty has many advantages over relying on foreign aid. A trade rather than aid approach reduces dependency on fickle donors and motivates self-sufficiency. Moreover, more open trading regimes would allow many least-developed countries to acquire capital and training in the agricultural sector that could subsequently be used to shift to a more diverse industrialized economy.

Global free trade also enables optimal natural resource use through shifts in production of goods to regions where they can be produced most efficiently. For example, removal of subsidies for sugar beet and sugar cane production in the US would allow sugar cane production to expand in the Caribbean, where sugar can be produced much cheaper and more efficiently than in the US. Caribbean producers and American consumers would benefit economically. Furthermore, the environment would benefit overall as production shifted away from ecologically sensitive areas surrounding the Florida Everglade Wetlands to Caribbean nations much more suited climatically to sugar cane production.

How should globalization proceed?

While globalization should proceed, it is critical that the process be changed so that it is fair and equitable.

1. Removal of trade barriers in developing countries needs to be matched by removal of trade barriers in developed countries. Although structural adjustment programs and foreign donor pressure have forced most developing countries to substantially liberalize trade, many developed countries have resisted calls made at the World Trade Organization (WTO) to remove trade barriers to agricultural imports from developing countries. As a result, losses in the manufacturing sector have not been compensated by gains in the agricultural sector in many developing countries.
2. Globalization also needs to put people and God’s creation before economic interests. Trade barriers need to be lowered, but only at rates where laid-off workers can be re-trained to participate in emerging sectors of the economy. Structural adjustment programs (SAPs) need to leave space for developed countries to retain social safety nets to handle temporary unemployment and poverty resulting from re-structuring of the economy. SAPs also need to promote economic activities that are environmentally sustainable and in the best long-term interests of the country. Environmental degradation, compromised labor standards and violations of human rights need to be addressed by incorporating more stringent environmental and social standards under the WTO.

The Critical Role of Christians

Globalization, involving the liberalization of global trade, needs to proceed, albeit in a manner that cares for both the poor and the environment. Yet how is this possible? Profit-seeking companies lack sufficient motivation to look out for the long-term interests of developing countries, and developed country governments lack the political will to institute just trade policies or regulate corporate behaviour.

Yet democratic governments in developed countries will take action on these issues if their people demand it. Unaffected (or in some cases profiting) by unjust trade and investment policies, the general public in developed countries will likely continue to be complacent about globalization.

Only Christians have a compelling reason to care that globalization does not adversely affect the poor or the environment. As such it is Christians who must become informed about globalization and it is the church which should take the lead in lobbying elected officials. It is important that the church take the lead in society in advocating for a just globalization process. As Jesus said, "In the same way, let your light shine before others, so that they might see your good deeds and give glory to your father in heaven (Matthew 5:16)."

 

Robin White recently completed his MA in international affairs at the Fletcher School of Law and Diplomacy at Tufts University in Boston. He previously worked as the supervisor of a water development program with MCC Burkina Faso.