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News by Tom Babin Changes to the global economy over the past few years have allowed trans-national corporations to grow more powerful than governments, according to the founder of a Vancouver-based education organization. During a workshop on globalization last weekend, Jessie Smith of the Real Alternatives Action Network (RAIN) told a group of about 30 participants that the power of international organizations like the World Trade Organization (WTO), the International Monetary Fund (IMF) and the World Bank to create and enforce economic laws has created a global system where corporations amass unheard of wealth for a handful of players, while developing nations struggle to stay afloat. "The market system has gotten to the point where we think it's natural, not something we created... yet, no country has ever developed a strong economy using this model," Smith says. The Understanding Globalization workshop, presented by the Arusha Centre, was the first of three to be held this fall in an effort to give people a better understanding of the global economic changes that have occurred over the past few years. The first session was a primer, during which Smith encouraged people to think about globalization in individual terms as a way to better understand the issue worldwide. She pointed to seven recent trends that have led to globalization, the consequences of which she has seen while conducting research in more than 50 countries: the economies of the world are integrated into a world economy; the economic market is liberalized; growth is a must for all companies; export is strongly promoted, even among countries that aren't meeting their own needs; public enterprises are privatized; countries are opened to foreign investment; and government spending is strictly controlled. While all of these trends have managed to create some of the biggest corporations and personal fortunes the world has ever seen, Smith says they have harsh consequences for almost everyone else in the world. She adds that developing countries have no hope of improving conditions under this model because corporations can exploit labour and resources in the name of the market without putting any real investment into countries. Smith, who has an MA in political economy, says the Japanese economic model that effectively pulled that country, and much of Asia, out of the Second World War would be impossible to operate in today's world because they would be forced to open their borders. Even in Canada, while the economy booms, the model has created a system where part-time, low-paying and temporary jobs are the fastest growing, and the majority of people still struggle, earning less than $30,000 a year. Smith presented some jaw-dropping statistics about the effects of globalization, and how the gap between rich and poor has exploded the past few years under the system. For example, in 1973 the richest 10 per cent of people in Canada made 21 times more than the poorest 10 per cent. By 1996, that difference had reached 314 times. She says under old treaties like the GATT (General Agreement on Tariffs and Trade), agreements were hammered out and agreed upon, but there were no real enforcement capabilities. Today, under the WTO, she says laws that liberalize the market can be strictly enforced and any impediments to that market – even social, economic or environmental concerns by government – can be punished. "I don't know why this isn't front-page news everyday," Smith says at one point during her lecture. "Why isn't this the first thing we learn in school?" Though she made a clear differentiation between small and mid-sized business and harmful trans-national corporations, she points out that in North America, these trends are becoming so ingrained that it’s difficult to think of economics in different ways. "I'm not saying there was ever total equality. I'm trying to be realistic about these things, and... there's not a whole lot of incentive for these corporations to act responsibly," Smith says. The interactive workshop focused on giving people a better understanding of globalization, a term which has become one of the most misunderstood and connotation-laced terms in our vocabulary. The next two workshops, planned for October 21 and November 18, will delve deeper into the issue. For more information, contact the Arusha Centre at 270-3200.

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