Globalization

19
Jan

Keynote Speech by H.E. Xi Jinping

President of the People’s Republic of China

At the Opening Session

Of the World Economic Forum Annual Meeting 2017

Davos, 17 January 2017


President Doris Leuthard and Mr. Roland Hausin,


Heads of State and Government, Deputy Heads of State and Your Spouses,


Heads of International Organizations,


Dr. Klaus Schwab and Mrs. Hilde Schwab,


Ladies and Gentlemen,


Dear Friends,


I’m delighted to come to beautiful Davos. Though just a small town in the Alps, Davos is an important window for taking the pulse of the global economy. People from around the world come here to exchange ideas and insights, which broaden their vision. This makes the WEF annual meeting a cost-effective brainstorming event, which I would call “Schwab economics”.


“It was the best of times, it was the worst of times.” These are the words used by the English writer Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world.


Many people feel bewildered and wonder: What has gone wrong with the world?


To answer this question, one must first track the source of the problem. Some blame economic globalization for the chaos in the world. Economic globalization was once viewed as the treasure cave found by Ali Baba in The Arabian Nights, but it has now become the Pandora’s box in the eyes of many. The international community finds itself in a heated debate on economic globalization.


Today, I wish to address the global economy in the context of economic globalization.


The point I want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refugee waves from the Middle East and North Africa in recent years have become a global concern. Several million people have been displaced, and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking. It is war, conflict and regional turbulence that have created this problem, and its solution lies in making peace, promoting reconciliation and restoring stability. The international financial crisis is another example. It is not an inevitable outcome of economic globalization; rather, it is the consequence of excessive chase of profit by financial capital and grave failure of financial regulation. Just blaming economic globalization for the world’s problems is inconsistent with reality, and it will not help solve the problems.


From the historical perspective, economic globalization resulted from growing social productivity, and is a natural outcome of scientific and technological progress, not something created by any individuals or any countries. Economic globalization has powered global growth and facilitated movement of goods and capital, advances in science, technology and civilization, and interactions among peoples.


But we should also recognize that economic globalization is a double-edged sword. When the global economy is under downward pressure, it is hard to make the cake of global economy bigger. It may even shrink, which will strain the relations between growth and distribution, between capital and labor, and between efficiency and equity. Both developed and developing countries have felt the punch. Voices against globalization have laid bare pitfalls in the process of economic globalization that we need to take seriously.


As a line in an old Chinese poem goes, “Honey melons hang on bitter vines; sweet dates grow on thistles and thorns.” In a philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect because of its merits, or if he views something as useless just because of its defects. It is true that economic globalization has created new problems, but this is no justification to write economic globalization off completely. Rather, we should adapt to and guide economic globalization, cushion its negative impact, and deliver its benefits to all countries and all nations.


There was a time when China also had doubts about economic globalization, and was not sure whether it should join the World Trade Organization. But we came to the conclusion that integration into the global economy is a historical trend. To grow its economy, China must have the courage to swim in the vast ocean of the global market. If one is always afraid of bracing the storm and exploring the new world, he will sooner or later get drowned in the ocean. Therefore, China took a brave step to embrace the global market. We have had our fair share of choking in the water and encountered whirlpools and choppy waves, but we have learned how to swim in this process. It has proved to be a right strategic choice.


Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend.


The history of mankind tells us that problems are not to be feared. What should concern us is refusing to face up to problems and not knowing what to do about them. In the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges and chart the right course for economic globalization.


At the APEC Economic Leaders’ Meeting in late 2016, I spoke about the necessity to make the process of economic globalization more invigorated, more inclusive and more sustainable. We should act pro-actively and manage economic globalization as appropriate so as to release its positive impact and rebalance the process of economic globalization. We should follow the general trend, proceed from our respective national conditions and embark on the right pathway of integrating into economic globalization with the right pace. We should strike a balance between efficiency and equity to ensure that different countries, different social strata and different groups of people all share in the benefits of economic globalization. The people of all countries expect nothing less from us, and this is our unshirkable responsibility as leaders of our times. 


Ladies and Gentlemen, Dear Friends,


At present, the most pressing task before us is to steer the global economy out of difficulty. The global economy has remained sluggish for quite some time. The gap between the poor and the rich and between the South and the North is widening. The root cause is that the three critical issues in the economic sphere have not been effectively addressed.


First, lack of robust driving forces for global growth makes it difficult to sustain the steady growth of the global economy. The growth of the global economy is now at its slowest pace in seven years. Growth of global trade has been slower than global GDP growth. Short-term policy stimuli are ineffective. Fundamental structural reform is just unfolding. The global economy is now in a period of moving toward new growth drivers, and the role of traditional engines to drive growth has weakened. Despite the emergence of new technologies such as artificial intelligence and 3D printing, new sources of growth are yet to emerge. A new path for the global economy remains elusive.


Second, inadequate global economic governance makes it difficult to adapt to new developments in the global economy. Madame Christine Lagarde recently told me that emerging markets and developing countries already contribute to 80% of the growth of the global economy. The global economic landscape has changed profoundly in the past few decades. However, the global governance system has not embraced those new changes and is therefore inadequate in terms of representation and inclusiveness. The global industrial landscape is changing and new industrial chains, value chains and supply chains are taking shape. However, trade and investment rules have not kept pace with these developments, resulting in acute problems such as closed mechanisms and fragmentation of rules. The global financial market needs to be more resilient against risks, but the global financial governance mechanism fails to meet the new requirement and is thus unable to effectively resolve problems such as frequent international financial market volatility and the build-up of asset bubbles.


Third, uneven global development makes it difficult to meet people’s expectations for better lives. Dr. Schwab has observed in his book The Fourth Industrial Revolution that this round of industrial revolution will produce extensive and far-reaching impacts such as growing inequality, particularly the possible widening gap between return on capital and return on labor. The richest one percent of the world’s population own more wealth than the remaining 99 percent. Inequality in income distribution and uneven development space are worrying. Over 700 million people in the world are still living in extreme poverty. For many families, to have warm houses, enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries.


All this shows that there are indeed problems with world economic growth, governance and development models, and they must be resolved. The founder of the Red Cross Henry Dunant once said, “Our real enemy is not the neighboring country; it is hunger, poverty, ignorance, superstition and prejudice.” We need to have the vision to dissect these problems; more importantly, we need to have the courage to take actions to address them.

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Category : Capitalism | China | Globalization | Infrastructure | Socialism | Blog
23
Apr

Editor’s Note: We are quite aware that the author below is no Marxist. But his views on world affairs are always interesting, and have recently been taken seriously by both Obama and Sanders, but not Clinton. So with more than a grain of salt, he’s worth a read.

By Zbigniew Brzezinski

The American Interest

April 17, 2016 – As its era of global dominance ends, the United States needs to take the lead in realigning the global power architecture.

Five basic verities regarding the emerging redistribution of global political power and the violent political awakening in the Middle East are signaling the coming of a new global realignment.

The first of these verities is that the United States is still the world’s politically, economically, and militarily most powerful entity but, given complex geopolitical shifts in regional balances, it is no longer the globally imperial power. But neither is any other major power.

The second verity is that Russia is experiencing the latest convulsive phase of its imperial devolution. A painful process, Russia is not fatally precluded – if it acts wisely – from becoming eventually a leading European nation-state. However, currently it is pointlessly alienating some of its former subjects in the Islamic southwest of its once extensive empire, as well as Ukraine, Belarus, and Georgia, not to mention the Baltic States.

The third verity is that China is rising steadily, if more slowly as of late, as America’s eventual coequal and likely rival; but for the time being it is careful not to pose an outright challenge to America. Militarily, it seems to be seeking a breakthrough in a new generation of weapons while patiently enhancing its still very limited naval power.

The fourth verity is that Europe is not now and is not likely to become a global power. But it can play a constructive role in taking the lead in regard to transnational threats to global wellbeing and even human survival. Additionally, Europe is politically and culturally aligned with and supportive of core U.S. interests in the Middle East, and European steadfastness within NATO is essential to an eventually constructive resolution of the Russia-Ukraine crisis.

The fifth verity is that the currently violent political awakening among post-colonial Muslims is, in part, a belated reaction to their occasionally brutal suppression mostly by European powers. It fuses a delayed but deeply felt sense of injustice with a religious motivation that is unifying large numbers of Muslims against the outside world; but at the same time, because of historic sectarian schisms within Islam that have nothing to do with the West, the recent welling up of historical grievances is also divisive within Islam.

Taken together as a unified framework, these five verities tell us that the United States must take the lead in realigning the global power architecture in such a way that the violence erupting within and occasionally projected beyond the Muslim world—and in the future possibly from other parts of what used to be called the Third World—can be contained without destroying the global order. We can sketch this new architecture by elaborating briefly each of the five foregoing verities.

First, America can only be effective in dealing with the current Middle Eastern violence if it forges a coalition that involves, in varying degrees, also Russia and China. To enable such a coalition to take shape, Russia must first be discouraged from its reliance on the unilateral use of force against its own neighbors—notably Ukraine, Georgia, the Baltic States—and China should be disabused of the idea that selfish passivity in the face of the rising regional crisis in the Middle East will prove to be politically and economically rewarding to its ambitions in the global arena. These shortsighted policy impulses need to be channeled into a more farsighted vision.

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Category : China | Globalization | Hegemony | Middle East | Russia | Blog
3
Jan

Rising tide

 

By William I. Robinson,

Truthout | News Analysis

Jan 1, 2016 – We are nearing 2016, the year when the richest 1 percent of humanity will own more than the rest of the world, according to projections made by the nongovernmental organization Oxfam.

This is up from the 1 percent owning 44 percent of the world’s wealth in 2010 and 48 percent in 2014. If current trends continue, the 1 percent will own 54 percent by 2020.

The top 80 billionaires were worth $1.9 trillion in 2014, an amount equal to the bottom 50 percent. These 80 billionaires saw a 50 percent rise in their wealth in just four years, from 2010 to 2014, during which time the poorest 50 percent saw a drop in their wealth. In other words, there has been a huge transfer of wealth in a very short period of time from the poorest half of humanity to the richest 80 individuals on the planet.

Capitalism produces social inequalities as a consequence of its own internal workings.

What should we do in the face of these escalating worldwide inequalities? In his worldwide bestseller, Capital in the Twenty-First Century, French economist Thomas Piketty argued for a global tax on capital and redistribution through progressive tax reform. The book has gained traction globally perhaps because its prescriptions converge with the reformist agenda of a rising number of transnational elites and intelligentsia, who have become concerned that the turmoil sparked by such egregious inequalities may destabilize global capitalism and threaten their control. Like Piketty, they have been calling for mildly redistributive measures, such as increased taxes on corporations and the rich, a more progressive income tax, the reintroduction of social welfare programs and a "green capitalism."

This reformist approach to global inequality, however, is entirely inadequate because it bypasses the questions of power and of corporate control over the planet’s productive resources that are at the very heart of global capitalism and its crisis. Any resolution to this crisis requires a radical redistribution of wealth and power downward to the poor majority of humanity. Social justice requires a measure of transnational social governance over the global production and financial system as a necessary first step in this radical redistribution, which in turn must be linked to the transformation of class and property relations.

Seen in this perspective, the elites’ reformist approach has more to do with averting such a transformation than with resolving the plight of the poor majority. The power relations that are at stake become clear by exploring what accounts for social inequalities under capitalism.

Causes of Rising Inequality

What accounts for escalating worldwide inequalities that have so alarmed transnational elites? As Marx analyzed in Capital, there is something going on in the capitalist system itself beyond sets of government policies that generates inequalities. Simply put, capitalists own the means of producing wealth, and therefore appropriate as profits as much as possible of the wealth that society collectively produces. Capitalism produces social inequalities as a consequence of its own internal workings.

The global market has not been able to absorb the output of the global economy.

But such inequalities end up undermining the stability of the system, since the mass of working people cannot purchase the wealth that pours out of the capitalist economy to the extent that capitalists and the well-off retain more and more of total income relative to that which goes to labor. If capitalists cannot actually sell (or "unload") the products of their plantations, factories and offices, then they cannot make a profit.

This is what in critical political economy constitutes the underlying internal contradiction of capitalism, or the overaccumulation problem. Left unchecked, expanding social polarization results in crisis – in recessions and depressions, such as the 1930s Great Depression or the 2008 Great Recession. Worse still, it engenders great social upheavals, political conflicts, wars and even revolutions – precisely the kinds of conflicts and chaos we are witnessing in the world today.

In the view of the reformers, however, it is not the capitalist system itself, but its particular institutional organization that is to blame for inequalities. They believe it can be offset by increased taxes, social welfare programs and other reformist measures.

The Class Warfare of the Transnational Capitalist Class

The sharp escalation in inequalities coincides with capitalist globalization from the 1970s and on. The high rates of inequality registered in the wake of the Industrial Revolution, and that reached a peak in the late 19th and early 20th centuries, had diminished somewhat in the heartlands of world capitalism in the wake of two world wars and the Great Depression. Inequalities in the rich countries were diminished in part thanks to colonialism and imperialism, which resulted in the transfer of surplus wealth from the periphery to the metropolitan centers of world capitalism and made possible the rise of a "labor aristocracy" in these centers.

What became known as the "Fordist-Keynesian" social order that took shape in the 30 years following World War II involved high growth rates, a rise in living standards for substantial sectors of the working class and a decrease in inequalities in the developed core of world capitalism.

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Category : Capitalism | Globalization | Militarism | Neoliberalism | Blog
15
Apr

Coming to Terms With the American Empire

[Editor’s note: The following interesting piece is from an ‘independent’ group of private US intelligence analysts, and reflects the views of ruling elites. We should note, however, that there is nothing accidental or new in the US empire, embodied from the early days of the Republic in the widely embraced notion of ‘Manifest Destiny.’]

By George Friedman
Stratfor’s Geopolitical Weekly

April 14, 12015 – "Empire" is a dirty word. Considering the behavior of many empires, that is not unreasonable. But empire is also simply a description of a condition, many times unplanned and rarely intended. It is a condition that arises from a massive imbalance of power. Indeed, the empires created on purpose, such as Napoleonic France and Nazi Germany, have rarely lasted. Most empires do not plan to become one. They become one and then realize what they are. Sometimes they do not realize what they are for a long time, and that failure to see reality can have massive consequences.
World War II and the Birth of an Empire

The United States became an empire in 1945. It is true that in the Spanish-American War, the United States intentionally took control of the Philippines and Cuba. It is also true that it began thinking of itself as an empire, but it really was not. Cuba and the Philippines were the fantasy of empire, and this illusion dissolved during World War I, the subsequent period of isolationism and the Great Depression.

The genuine American empire that emerged thereafter was a byproduct of other events. There was no great conspiracy. In some ways, the circumstances of its creation made it more powerful. The dynamic of World War II led to the collapse of the European Peninsula and its occupation by the Soviets and the Americans. The same dynamic led to the occupation of Japan and its direct governance by the United States as a de facto colony, with Gen. Douglas MacArthur as viceroy.

The United States found itself with an extraordinary empire, which it also intended to abandon. This was a genuine wish and not mere propaganda. First, the United States was the first anti-imperial project in modernity. It opposed empire in principle. More important, this empire was a drain on American resources and not a source of wealth. World War II had shattered both Japan and Western Europe. The United States gained little or no economic advantage in holding on to these countries. Finally, the United States ended World War II largely untouched by war and as perhaps one of the few countries that profited from it. The money was to be made in the United States, not in the empire. The troops and the generals wanted to go home.

But unlike after World War I, the Americans couldn’t let go. That earlier war ruined nearly all of the participants. No one had the energy to attempt hegemony. The United States was content to leave Europe to its own dynamics. World War II ended differently. The Soviet Union had been wrecked but nevertheless it remained powerful. It was a hegemon in the east, and absent the United States, it conceivably could dominate all of Europe. This represented a problem for Washington, since a genuinely united Europe — whether a voluntary and effective federation or dominated by a single country — had sufficient resources to challenge U.S. power.

The United States could not leave. It did not think of itself as overseeing an empire, and it certainly permitted more internal political autonomy than the Soviets did in their region. Yet, in addition to maintaining a military presence, the United States organized the European economy and created and participated in the European defense system. If the essence of sovereignty is the ability to decide whether or not to go to war, that power was not in London, Paris or Warsaw. It was in Moscow and Washington.

The organizing principle of American strategy was the idea of containment. Unable to invade the Soviet Union, Washington’s default strategy was to check it. U.S. influence spread through Europe to Iran. The Soviet strategy was to flank the containment system by supporting insurgencies and allied movements as far to the rear of the U.S. line as possible. The European empires were collapsing and fragmenting. The Soviets sought to create an alliance structure out of the remnants, and the Americans sought to counter them.

The Economics of Empire

One of the advantages of alliance with the Soviets, particularly for insurgent groups, was a generous supply of weapons. The advantage of alignment with the United States was belonging to a dynamic trade zone and having access to investment capital and technology. Some nations, such as South Korea, benefited extraordinarily from this. Others didn’t. Leaders in countries like Nicaragua felt they had more to gain from Soviet political and military support than in trade with the United States. (Continued)

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Category : Capitalism | Globalization | Hegemony | US History | Blog
7
Jul

 

By Harry Targ

Committees of Correspondence for Democracy and Socialism (CCDS)

For presentation at the  upcoming “Moving Beyond Capitalism” Conference, Center for Global Justice, San Miguel de Allende, Mexico July 29-August 5, 2014

Introduction

The deepening 21st century crises of capitalism-from growing economic impoverishment to neo-fascism to literal destruction of planet earth-demand movements and visions of change unparalleled in quantities and qualities of response. Anti-capitalist responses to these crises range from helplessness to spontaneous activism. Often political reactions ignore the history and context of the crises and the movements that have come before that have planted the seeds of fundamental social change. This paper will survey movements of social change in the era of neoliberal globalization suggesting both the breadth of such movements and the historical context from which they came. The tasks for today still require an analysis of the nature of existing systems and responses, visions of desirable alternatives, and contextualized discussions of moving from here to there. “Moving Beyond Capitalism” requires such a grounding of the future in the past and the present.

21st Century Imperialism: Post-Cold War Perspectives on Global Political Economy

The collapse of the Soviet Union transformed world affairs, scholarly analyses of international relations, punditry, and rationales for imperial foreign policies. A new buzzword became part of political discourse to describe the international system: “globalization.” Almost immediately a large literature was generated suggesting that the world had changed. Globalization was replacing the system of often hostile nation-states that had characterized the world since the sixteenth century.[1]

While interpretations of globalization varied, the common conception of the term suggested that a process of relations was occurring in which interactions between nations, business and financial organizations, groups, and peoples had become so frequent and intense that they were creating one global society.[2] Major globalizing institutions included multinational corporations, especially the 200 largest global corporations with production, distribution, and decision-making facilities in many countries, and international financial institutions engaged in speculative activities all across the globe. At the cultural level a handful of media conglomerates produced a large percentage of the cultural products, images, artistic endeavors, and print and electronic information that the world consumed. Finally, international institutions such as the World Bank, the International Monetary Fund, and the newly created World Trade Organization brought international influence to bear on states that resisted the globalization process.

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Category : Capitalism | Democracy | Globalization | Marxism | Socialism | Blog
27
Jun

 

Farsi News Service Interviews Professor William I. Robinson

Prof. William I. Robinson: Global Capitalism Is In the Midst of Its Most Severe Crisis

Interview by Kourosh Ziabari

June 24, 2014 – TEHRAN (FNA)- Prominent American sociologist Prof. William I. Robinson believes that the United States government is the biggest perpetrator of terror in the world and its military adventures across the globe have claimed the lives of millions of innocent citizens.

According to Prof. William I. Robinson, “if we define terrorism as the use of violence against civilians for political objectives, then the US state is the world’s leading terrorist.”

“US intervention abroad in the 20th century – the forging of a US empire – claimed tens of millions of victims, inflicted untold suffering, and set back the aspirations of freedom and democracy in dozens of countries,” said Prof. Robinson in an exclusive interview with Fars News Agency.

Prof. Robinson also went on to say that capitalism, which is the predominant economic and political worldview of the United States and other imperial powers is in the midst of its most severe crisis in close to a century, even worse than the crisis in the 1930s, “because we are on the precipice of an ecological holocaust that threatens the very earth system and the ability to sustain life, ours included, because the means of violence and social control have never before been so concentrated within a single powerful state, and because the global means of communication is also extraordinarily concentrated in the hands of transnational capital and a few powerful states.”

William I. Robinson is a professor of sociology, global and international studies, and Latin American studies at the University of California at Santa Barbara. His latest book entitled “Global Capitalism and the Crisis of Humanity” was just published in 2014. In the early 1980s, he worked as a journalist in the war-torn Nicaragua. From 1984 to 1990 he was a member of the Union of Nicaraguan Journalists. His articles and writings have appeared on such news websites as Al-Jazeera, Huffington Post and Truth Out.

Prof. Robinson took part in an exclusive, comprehensive interview with FNA and responded to our questions about the demise of capitalism, the future of globalization, the setbacks and failures of the US foreign policy and the human consequences of Washington’s military adventures. What follows is the text of the interview.

Q: What’s your viewpoint regarding the consequences of the US military expeditions across the world, including the devastation of the natural resources of the countries that are attacked, the killing of the unarmed civilians, the forced migration and displacement of the war-hit population, the pollution of the air, the infliction of irretrievable damages on the environment and the erosion of democratic institutions in these countries? Who is going to compensate for these losses?

A: The US state is acting as the gendarme for global capitalism at a time when global capitalism is in deep crisis. It is the core institution in what I have referred to as the transnational state, and in my view it represents at this time the interests of transnational capital, of a transnational capitalist class.

The United States has committed successive war crimes and crimes against humanity in recent years. However, let us recall that this is the continuation of a long historical pattern, what we used to call imperialism, and some still do refer to as imperialism. The United States as a country was born on the basis of the slavery of Africans and other peoples and genocide against the native populations of North America.

Expansion from the original East Coast colonies began from the very inception of the Republic. Texas was annexed from Mexico in 1836 by white Southern slavers who were seeking to expand cotton plantation based on the slavery of Africans. This expansion continued in 1848 as the United States annexed one half of Mexican territory in a war of aggression justified by “Manifest Destiny”. US rulers then launched extra-territorial expansion, starting with the invasion, occupation, and colonization of Puerto Rico, the Philippines, and Cuba in 1898, and followed by literally hundreds – perhaps thousands – of interventions in the 20th century, including convert operation, the orchestration of coup d’etats, counter-insurgencies, military invasions, occupations, and so forth – throughout Latin America, Africa, the Middle East, and Asia, but also in Southern and Eastern Europe. US intervention abroad in the 20th century – the forging of a US empire – claimed tens of millions of victims, inflicted untold suffering, and set back the aspirations of freedom and democracy in dozens of countries – yet US rulers had the arrogance and cynicism to claim that its aggression against the world’s people was in the name of freedom and democracy.

Of course the United States does not hold a monopoly on such expansionism and interventionism in the modern era of capitalism. Over the past two centuries, and even earlier, England, France, Spain and other European powers were carving out their own colonial empires, unleashing unfathomable brutality and suffering. The culprit here, beyond a particular nation-state, is an outwardly expanding capitalism involving imperialism and colonialism. The United States stands out because it became the dominant world power in the wake of World War II and set about to construct a truly global empire, the likes of which the world had not previously seen.

However, and this is the key point I wish to highlight here, US intervention around the world clearly entered a qualitatively new period after September 11, 2001. This new period should be seen in the context of emergent 21st century global capitalism. Global capitalism is in the midst of its most severe crisis in close to a century, and in many ways the current crisis is much worse than that of the 1930s because we are on the precipice of an ecological holocaust that threatens the very earth system and the ability to sustain life, ours included, because the means of violence and social control have never before been so concentrated within a single powerful state, and because the global means of communication is also extraordinarily concentrated in the hands of transnational capital and a few powerful states. On the other hand, global inequalities have never been as acute and grotesque as they are today. So, in simplified terms, we need to see the escalation of US interventionism and the untold suffering it brings about, including what you mention – the killing of unarmed civilians, the destruction of the environment, forced migration and displacement, undermining democracy – as a response by the US-led transnational state and the transnational capitalist class to contain the explosive contradictions of a global capitalist system that is out of control and in deep crisis.

You ask me who is going to compensate for these losses. That will depend on how the world’s people respond. There is currently a global revolt from below underway, but it is spread unevenly across countries and has not taken any clear form or direction. Can the popular majority of humanity force the transnational capitalist class and the US/transnational state to be accountable for its crimes? Mao Zedong once said that “power flows through the barrel of a gun.” What he meant by this, in a more abstract than literal way, I believe, is that in the end it is the correlation of real forces that will determine outcomes. Because the United States has overwhelming and “full spectrum” military dominance, it can capture, execute, or bring to trial people anywhere around the world… it has “free license”, so to speak, to act as an international outlaw. We don’t even have to take the more recent examples. In December 1989 the United States undertook an illegal and criminal invasion of Panama, kidnapped Manuel Noriega – whether or not he was a dictator is not the point, as the United States puts in power and defends dictators that defend US and transnational elite interests, and brought him back to US territory for trial. What country in the world now has the naked power “flowing through the barrel of a gun” to invade the United States, capture George Bush, Dick Chaney, Donald Rumsfeld, and other war criminals, and bring them somewhere to stand trial for war crimes and crimes against humanity?

Q: In your writings, you’ve warned against the growing gap between the rich and the poor, the slant accumulation of the global wealth in the hands of an affluent few and the impoverishment of the suppressed majority. What do you think are the reasons for this stark inequality and the disturbing dispossession of millions of people in the capitalist societies? You wrote that the participants of the 2011 World Economic Forum in Davos were worried that the current situation raises the specter of worldwide instability and civil wars. Is it really so?

A: We have never in the history of humanity seen such a sharp social polarization between the haves and the have-nots, such grotesque levels of inequality, within and among countries. There have been countless studies in recent years documenting the escalation of inequalities, among them, the current bestseller by Thomas Piketty, “Capital in the Twenty-First Century.” The pattern we see is that the notorious “1 percent” monopolizes a huge portion of the wealth that humanity produces and transnational corporations and banks are registering record profits, but as well that some 20 percent of the population in each countries has integrated into the global economy as middle class and affluent consumers while the remaining 80 percent has experienced rising levels of insecurity, impoverishment, and precariousness, increasingly inhabiting what some have called a “planet of slums.”

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Category : Capitalism | Globalization | Hegemony | Marxism | Blog