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World New Economics Foundation
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As a newly-founded organization, we wish to emphasize that our role is not to
argue matters of theoretical, academic, and institutional economics, with its
complex use of mathematics, drawings, and diagrams. WNEF implies the application of
eco-science on economics, including the economic environment and the opportunity
costs involved with it as well as our obligation to the environment, the
citizenry, and the planet. We are
creating and developing different models as an evolution in due course and as a
reaction to actions caused by globalization:
poverty, injustice, recession, depression, lack of strategic planning
and strategic foresight, and capital shortages.
From a general perspective of microeconomics, the world is not at an acceptable
level of equilibrium, but rather is experiencing sharp fluctuation, aggressive
speculation, and controlled monopoly or polygopoly. Statistics and quantitative analysis are
geared for the short term and often yield wrong and unpredictable calculations
and results. Qualitative analysis
might not be as popular, but it is a touch and a sample of reality. It is a useful advantage of accurate
economic intelligence beyond theoretical forecasts and political spin to suit
certain and limited political and economic agendas.
Our new school of thought operates within the boundaries of
macroeconomics, and our models will be built around it.
The current world situation is not sufficiently stable to allow prosperity and
eliminate poverty. Quite the
opposite, the rich are getting richer and the poor are getting poorer. WNEF is
about addressing these issues and the concentration of wealth in a few hands
around the world and especially in the hands of powerful shareholders and
multi-national conglomerates. We
might ask ourselves one question: What
did Globalization achieve? Is it a
force for good, or is it adding more misery to our existing misery and poverty?
Westernization was a step before globalization, but its connotation suggests the
return to colonization. Therefore,
globalization sounded better and more appealing to create one harmonized market
with the same tastes and requirements in a global market segmentation by
customers, habits, demographics, trends, and product segmentation, so
commodities are imposed on consumers by one structure and easy marketing,
creating the generation that craves for everything in the market whether we have
the power to buy it or not.
Non-essential gadgets, the latest “must haves,” are pushing the boundaries to an
extreme. It is total global market domination and
manipulation. Behind this global
market domination are shareholders and greed that is fueling speculation and
eventually global recession and depression because these
globalizers
are competing for the same markets.
Enterprise is not a bad thing, but domination and manipulation call enterprise
into question. Capitalism is not about manipulation and domination and
practicing monopoly. Globalization
did not eradicate world poverty but rather create exploitation, even child
labor, and global warming as a result of expanding industries.
On January 5, 1941, President F. D.
Roosevelt stood before the Congress and spoke of ``a moment unprecedented in the
history of the
(An extract
from The American Almanac, July 14, 1997) President Roosevelt deplored the ugly exploitation of the
poor, especially during the depression era, when big companies raised prices for
no reason but apparent greed and monopoly.
He made reference in his Congressional speech to the need to end special
privileges for the few, meaning greedy companies and ugly capitalists. Now, 67 years after his speech, wealth is
concentrated again in the hands of the privileged few. He was and remains one of the greatest
world leaders in social justice and equality and an architect of economic
reform. We are happy to call it the
“FD Roosevelt Doctrine.” Can globalization reform itself or regulate itself to serve all public
interests? Or is it the new form of
colonization by power and money? What is the alternative to globalization? And how can we empower world communities
and increase their fair-trading? The following is intended to put forward an argument that demonstrates
the structure of globalization and its negative impact on our daily life and
strategy to remedy this situation: |
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From Industrial Revolution to Globalization |
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© 2008, World New Economics Foundation in collaboration with DNEF,
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The Origin of Globalization:
In
our discussion, we might cross several academic disciplines and even intruding
into Political Science territories to understand culture and influences that
led to globalization, but this analysis is needed to expound on catapulting
factors that made globalization a dominant force and to explain the ways in
which its monopoly is observed in our daily lives and is leaving its marks on
humans and eroding local and national cultures in the process.
The limited resources in the countries affected by the
Industrial Revolution meant that
industrialists
had to look elsewhere for raw materials such as cotton, minerals, oil, rubber,
and other vital commodities for manufacturing. The need for these materials and
products led to world partition between WWI
and WWII, affirming
large scale colonization of the super powers of the time, with zones of influence unavoidably followed by
national independence wars.
A
massive number of independent states and countries emerged, which were
instigated and admitted to the ranks of the newly formed United Nations at the
end of WWII. Most of these independent countries
kept certain ties with their ex-colonizers. The colonizers had established
industries in need of new markets and raw materials to fuel their manufacturing
industries, which led to the concept of Westernization/
Internationalization. Today the
word has developed a bad connotation that suggests large scale
marketing and the new face of colonialism.
In order to eliminate the evils of all
colonialism, a psychological face-lift and transformation were needed to make
Westernization more appealing and accepted by the wider audience/ customers,
ex-colonies’ citizens. Hence, the
birthplace and era of globalization
occurred, with help from the
“Internet
Revolution, the super cyber highway,” in spite of its bust
and boom. Globalization is strong and well, thanks to the first club of
billionaires in human history with super multi-national companies and
corporations.
Globalization also helped the migration of
jobs to developing countries, where labor is cheap
and raw materials are in abundance, which explains the speed at which these
powerful corporations became suddenly strong with massive financial power. The rapid change in world economics meant one
thing that these corporations and their shareholders have one thing in common:
maximizing profits at all costs, regardless of corporate governance or social
and moral responsibility.
The accumulation of wealth in the hands of
a few with privileges, speculation, the mentality of spin, and bad management
of super banks led to a deep financial crisis that started in the US and is now felt across Europe and the Asian
markets. The weakening of the most
desired currency; the American dollar prompted investors to shift their
investments to the Euro and
It is
becoming normal and acceptable that governments come to the rescue of fledgling
corporations and institutions, which cast shadows of doubt on the fundamental
questions: Is globalization a successful
formula or a disaster in the making? How
many chunks of the economy are in the hands of global economy? Is globalization a monopoly, pure and simple
because it seeks to control natural resources and attempts to reduce government
regulations to suit their ends?
Governments are bouncing back by muscling in their huge reserve to stem
early bankruptcies that are responsible for global recession. We all know how
the auto industry in the
There is and
will be a heavier price to pay if we don’t find a formula to stabilize world
economies, social justice, and sustainable economic growth. Stock markets are losing shares worldwide,
but at the same time massive bonuses in the billions are paid to traders, equal
to the losses or more through sheer speculation. Have we asked ourselves are these bonuses
well earned or is the money simply evaporated to land in traders’ bank accounts?
The world needs a new economic order and new financial
mechanism with social justice and completely fair trading, economic sustainability/
stability, economic growth in science, technology, and increased research and
development that triggers an environmental revolution with great
emphasis on vital inventions and innovations in alternative energy and automotive
technology. To conclude our paper,
globalization is not a solution for the entire world because it is erasing
world cultures and replacing them with standardized businesses, products, and
services. After all, why must we all
have the same gadgets, eat the same food, drink the same drinks?
Regionalization, not Globalization is the Answer
The
previous analogy is evidence that we must challenge globalization by the
introduction of an alternative, which we have named “REGIONALIZATION“:
“A Region or Cluster of Regions in
any Country working together on one continent and cooperating collectively with
a counterpart in a different country from a different continent, using
Cooperatives of Fair Trading instead of companies with Shareholders. This model is similar to sister cities
projects, but here we mean collaboration between a state in
This model is not widespread, but
its importance is to bypass big players intent on
monopolizing behavior to enrich their shareholders. Regionalization, in contrast, will bring
mutual benefit, fair trading, cultural ties, exchange
of ideas and know-how, and technology transfer.
Globalization
is no less than another form of economic colonization. The only difference is that there are no big
armies to control distant territories and lands but rather massive financial
powers, shareholders, and the “globalizers,” the most
powerful corporations on earth.
Old-fashioned colonization was based on the idea that “They are not like
us, they cannot rule themselves, so they deserve to be
ruled.” Brute force and oppression were
the general rules of engagement to effect such changes.
The world new economic order is better off
with regionalization rather than globalization.
Indeed it is similar to the domino effect for the following factors: |
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Globalization =
Shareholders = Massive Profits
Globalization
= Capital Shortage = Recession
Advantage Of
Regionalization
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Regionalization Model |
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© 2008, World New Economics Foundation in collaboration with DNEF,
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