Noam Chomsky - Globalization

Summary

The speaker discusses the concept of globalization, emphasizing its dual nature. While it traditionally signifies international integration, its modern interpretation often favors investor rights, leading to a skewed version of global unity. The speaker critiques this narrow perspective, highlighting the decline in international economic integration and the negative impacts on labor and trade, particularly in the context of NAFTA.

Takeaways

• 🌐 Globalization, in its neutral sense, refers to international integration, which is generally favored by people.
• 🏷️ The term 'globalization' has been appropriated by a specific sector of power and privilege to represent their version, often leading to misconceptions about opposition to it.
• 📉 Technical measures of globalization, such as economic convergence towards a single market, have been declining in the last 25 years.
• 📈 Capital flow across borders has increased significantly, which some economists attribute to poorer international economic performance.
• 🚶 Adam Smith's concept of free trade includes the free circulation of labor, which has seen a decline compared to a century ago.
• 🛂 The militarization of the U.S.-Mexico border in 1994 was aimed at restricting the movement of people, which contradicts the idea of increased integration.
• 📊 The North American Free Trade Agreement (NAFTA) was expected to bring economic benefits, but it has led to negative outcomes for the majority of the Mexican population.
• 💼 The investor rights version of globalization is predicted to lead to less globalization in the technical sense but more control by the wealthy and powerful.
• 🤝 International economic integration has seen a decrease in the ability of people to move freely, which is a form of disintegration by Adam Smith's measure.
• 🔄 The increase in capital flows and speculative activities has led to financial volatility, which is considered detrimental to economic growth.
• 🛃 The period of globalization has been marked by a decline in various economic indicators compared to the preceding period, which was characterized by controlled capital movements and regulated currencies.

Q & A

What does the term 'globalization' mean in its neutral sense?

In its neutral sense, globalization refers to international integration, which is a concept that everyone generally favors.

How has the term 'globalization' been appropriated and misused according to the speaker?

The term 'globalization' has been appropriated by a narrow sector of power and privilege to refer to their version of international integration, which is focused on investor rights, leading to a misconception that opposition to this version equates to being 'anti-globalization'.

What does the speaker argue is a mistake for critics to accept the label 'anti-globalization'?

The speaker argues that critics should not accept the label 'anti-globalization' because it incorrectly implies a desire to revert to primitive conditions, whereas they are actually in favor of a different, more people-centric form of globalization.

What has been the trend in international economic integration over the past 25 years according to the script?

According to the script, international economic integration, measured by convergence towards a single price and wage market, has been declining over the past 25 years and is predicted to decline further.

What does the speaker believe is the core principle of free trade according to Adam Smith?

The speaker believes that the core principle of free trade according to Adam Smith is the free circulation of labor, meaning people should be able to move wherever they want.

How has the ability of people to move across borders changed in the past century?

The ability of people to move across borders was higher over a century ago relative to population than it has been since, due to factors such as the horrors of the industrial revolution and the opportunity to move to the United States.

What has increased significantly in the past 25 years that some economists attribute to a decline in economic performance?

The movement of capital across borders has increased astronomically in the past 25 years, which some mainstream international economists believe has contributed to a decline in the performance of the international economy.

What was the impact of the breakdown of capital controls and the Britain wood system on globalization?

The breakdown of capital controls and the Britain wood system led to a period of increased financial volatility and speculative capital flow across borders, which is considered by some as a factor in the decline of economic growth and investment.

What does the speaker claim about the militarization of the US-Mexico border in 1994?

The speaker claims that the militarization of the US-Mexico border in 1994 was to prevent the movement of people across the border, which was a response to the initiation of NAFTA and the predicted negative economic impact on Mexico.

What does the speaker suggest about the actual trade between Mexico and the United States post-NAFTA?

The speaker suggests that while there has been an increase in the movement of commodities across the border post-NAFTA, much of it is internal to firms and not actual trade in the classical economic sense, and it is unclear if the meaningful trade has increased.

What is the speaker's view on the future of globalization?

The speaker believes that the future of globalization cannot be predicted and depends on human will and choice, emphasizing that it will look different when viewed from the perspective of people's interests versus investors' interests.