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Oleh/By  	:	DATO SERI DR MAHATHIR BIN MOHAMAD
Tempat/Venue	:	GENEVA, SWITZERLAND
Tarikh/Date	:	11-06-2002
Tajuk/Title 	:	THE 90TH SESSION OF THE 
			INTERNATIONAL LABOUR CONFERENCE
Versi 		:	ENGLISH
Penyampai	:  	PM 
		    

   "SOCIAL DIMENSION OF GLOBALISATION"
   
   
   
        Globalisation  is  on  everyone's  mind  nowadays.
   This  concept of a world without borders, of  a  global
   nation  in  all but name, promises a future so  changed
   that the social, political and economic order of things
   as  we  know  them  will  be  radically  different  and
   probably threatening in many ways.  Certainly  it  will
   have  a  tremendous impact on the life that we lead  as
   workers and as employers, and also as Governments.
   
   2.   Not so very long ago, in the years following World
   War  II, the peoples of the world were busy dismantling
   empires and creating new independent nations out of the
   colonies  of   the Europeans.  That was the  time  when
   much value was placed on freedom; freedom that is, from
   the  imperialists,  from being the  colonies  of  other
   nations.   It was felt that the subjection of a  people
   by  another people was unjust and shameful and it  must
   be  ended as soon as possible.  The subject people must
   be  free, be allowed self-rule, be independent.  Uhuru,
   Merdeka  -  these were the cry from the  heart  of  the
   "natives", the black, brown and yellow people  who  had
   been colonised by the white people.
   
   3.     There  was  resistance,  much  resistance.   The
   imperial  colonial powers fought hard to  retain  their
   colonies.   The subject people who rose  to  fight  for
   their   freedom  were  labelled  terrorists  and   were
   attacked   by  the  vastly  superior  forces   of   the
   imperialists.   Many were the so-called terrorists  who
   were  incarcerated, usually without  trial;  many  were
   killed, were tortured even and executed.
   
   4.   But the cry for independence could not be silenced
   and  gradually  but with growing momentum  the  freedom
   fighters  gained ground and liberated their  countries.
   More  and  more  of  the  so-called  terrorists  became
   respectable, became honourable freedom fighters, became
   leaders of independent nations.
   
   5.     What  was  the  meaning  of  independence  then?
   Independence  meant  freedom from interference  in  the
   affairs  of  the newly-independent nations, freedom  to
   associate  or  be allied to any nation or  power  bloc,
   freedom   to   accept  and  practise  any   system   of
   Government.   Non-interference was  the  key-word.   To
   interfere  with  an  independent country  was  to  deny
   independence  for  that country.  The newly-independent
   countries  and their leaders gloried in their  freedom.
   This  was what they had fought for, this was what  many
   of  them died for and they were not going to let it  be
   diminished in any way.
   
   6.    But they were wrong.  Their independence was  not
   full.  It was President Soekarno of Indonesia who first
   realised it.  He called it "neo-colonialism", a form of
   colonial  rule that required no physical occupation  of
   the  land.   The economic weaknesses of all the  newly-
   independent  countries forced them  to  submit  to  the
   influence   and  even  hegemony  of  the   economically
   powerful former colonial masters. The newly-independent
   countries had to seek aid and to borrow from  the  rich
   countries  and  these  were not given  without  strings
   attached.
   
   7.    Every  day  the strings became more numerous  and
   stronger.  But still much lip-service was paid to  non-
   interference  in the affairs of independent  countries.
   For the rich ex-colonial masters even this need for lip-
   service  was  frustrating.  A way had to  be  found  to
   dominate the former colonies more directly once again.
   
   8.    International agencies were used.  Then came  the
   idea  of the Non-Government Organisations.  Governments
   may  not interfere but Non-Government Organisations are
   not  subject to this dictum.  And so the NGOs moved in,
   financing  and  setting  up  local  counterparts  which
   effectively  promoted the interest of  the  rich.   The
   NGOs  gained legitimacy and power by citing corruption,
   abuses of power, abuses of human rights, degradation of
   the  environment, logging, hydro-electric projects, gas
   pipe lines, industrialisation, anything and everything,
   so  as  to  keep  the  Government  of  the  independent
   countries   feeling   guilty   and   submissive.     No
   Government, however well intentioned, can be free  from
   all  that  can  be thought up as misdemeanours  by  the
   NGOs.    It was considered not unfair for the  NGOs  to
   deny   the   poor  people  of  a  poor  country   cheap
   electricity or jobs or water supply in the interest  of
   any  one  of their many so-called "causes".   The  poor
   countries  must preserve the environment and  become  a
   "carbon  sink"  for the rich polluting nations  of  the
   world at whatever cost to their own people.
   
   9.    But as if the independence of the new nations was
   not  eroded  enough, the Governments  of  the  powerful
   countries  invented  reasons for  moving  in  directly.
   They  claim that they have responsibility for the well-
   being of all the people in the world, even if they  are
   citizens  of  other countries.  All the people  in  the
   world  must  be freed of their Government's corruption,
   abuses  of  power,  lack  of  transparency  etc,  their
   independence  notwithstanding.  After the  end  of  the
   Cold War the freedom to choose forms of Governments was
   removed  and  only  one choice was  allowed  -  Liberal
   Democracy.  That the removal of the freedom  of  choice
   is against the very principle of democracy was ignored.
   Be  democratic  or  all the people  and  not  just  the
   Government  will  be  punished, deprived  of  food  and
   medicine, impoverished through economic actions.
   
   10.   Is  it really concern for the well-being  of  the
   poor oppressed people of these newly-independent former
   colonies or is it frustration at not being able to  get
   at  the wealth these countries have, not being able  to
   exploit  the  potentials these  countries  posses?   It
   would  seem that the latter is more likely  to  be  the
   objective.
   
   11.   Democracy, transparency, the rule of law, freedom
   from   corruption  and  from  cronyism  are   good   in
   themselves.   But  is it necessary to make  the  people
   suffer,  to impoverish whole countries for the sins  of
   their Governments.  Is it necessary to destroy thriving
   economies  in order to bring about democracy,  and  all
   the  good  things, that was supposed to  accompany  it?
   What  happens when these democracies fail to work, when
   anarchy reigns instead; when they become so emasculated
   that they have to depend completely on foreign help and
   accept  foreign  directives  for  their  domestic   and
   foreign policies?
   
   12.   Should  the new (relatively speaking) independent
   countries   object   to   effectively   losing    their
   independence?   Battered by the  NGO's,  made  to  feel
   guilty  over their record on human rights and allegedly
   incompetent administrations and obliged to the powerful
   because of aid and their unrepayable debt, they were in
   no  position  to reject globalisation or even  question
   it.   And  so  all  and everyone welcome  globalisation
   without   knowing   really  what  they   were   letting
   themselves in for.
   
   13.   The  first  danger sign came  when  the  currency
   traders  devalued the currencies of the  Asian  tigers.
   Suddenly   these  so-called  economic   miracles   were
   impoverished  and  found  themselves  spluttering   and
   breathless  as  their countries collapsed economically.
   The  media  and an assortment of international  experts
   and agencies told them that they had been naughty, that
   their  growth  and economic miracles were all  fiction,
   that  all the time they were mismanaging their economy,
   stealing money from their treasuries, and feeding their
   cronies.    That  the  peoples of these  countries  had
   obviously prospered, that physically and infrastructure
   wise  they  had  grown  and developed,  that  they  had
   managed  to industrialise their agro-based countries  -
   all  these proved nothing, all these did not prove that
   they  were  governing their countries well.   If  their
   currencies were devalued and their economy and finances
   were in shambles, it was all their fault.  The currency
   traders  and  the  stock market investors  were  merely
   pulling out in order to save their precious capital.
   
   14.   But even if some of these allegations were  true,
   it  cannot be denied that the growth and development of
   these  countries  were  real.  They  are  not  free  of
   corruption  of course but which country,  developed  or
   developing  is free from corruption?  But  the  reality
   was  that  corruption,  lack of transparency,  cronyism
   were  not the cause of the currency depreciation.  What
   caused  the  currencies to devalue was the speculation,
   or  more  accurately the manipulation by  the  currency
   traders.  They did not need to have a single cent of  a
   country's currency in order to sell it.  They are adept
   at  short  selling.  A few zeros more on the  computer,
   ownership  transfers and they become richer  by  a  few
   hundred million dollars.
   
   15.   But  were  they  concerned about  the  effect  of
   devaluing  a currency?  No.  They admit now  that  they
   saw  only those figures on a computer screen.  They did
   not see, or if they saw, they casually blame Government
   incompetence  and  indiscipline for the  social  misery
   that their avaricious currency trading had caused.   In
   one  country  20 million people lost their jobs  almost
   overnight.  There were riots, shops were ransacked  and
   burnt, women raped and people killed.  Governments fall
   and  anarchy  sets in.  And the international  agencies
   which  were  supposed to help merely saw an opportunity
   to  impose their rules for opening markets etc. instead
   of  bringing relief to the people. Loans were  withheld
   in  order to gain compliance.  And with compliance  the
   whole  country and all its businesses and banks had  to
   be  sold at fire-sales prices.  If the loans cannot  be
   repaid  then  the  country  will  become  debt  slaves,
   indefinitely.
   
   16.   No more independence.  Everything will be decided
   by  foreigners whose only interest is to  open  markets
   and to collect repayments on their loans.  No subsidies
   for  food or fuel for the poor people.  No restrictions
   on foreign ownership.  No national agenda.
   
   17.   And  so  not  only  will  there  be  poverty  and
   unemployment but also prolonged riots, instability  and
   finally  anarchy.  But not to worry.   The  country  is
   democratic,   practises  market  economy  and   accepts
   globalisation in toto.
   
   18.   Well, after all these should we in the developing
   countries be convinced that globalisation is the remedy
   for  the  social  ills of the world?   Frankly  I  have
   doubts.   What  we  are seeing is the  erosion  of  the
   independence    of   countries   and   their    further
   impoverishment.   What we are seeing  is  the  feverish
   acquisition  and mergers of the banks and  corporations
   in  the  powerful economies so as to become  even  more
   powerful.   Already most of the banks and  corporations
   are  bigger than most of the developing nations of  the
   world.  Despite frequent exhortation to establish level
   playing fields it is obvious that they believe size  is
   the   determining  factor.   Big  is  beautiful.    Big
   certainly  guarantees  success.  But  big  corporations
   being  powerful  must  suffer from  the  corruption  of
   power.   And  we are already seeing this  happening  as
   auditors are told to cheat or lose their contracts.  In
   a  world  dominated by the big corporations  and  banks
   will  there be social justice or will there be  massive
   corruption?
   
   19.   Globalisation is presently interpreted simply and
   exclusively as the freedom of capital to go anywhere to
   cross  and recross borders at will.  The poor countries
   are  told that the inflows of capital will be good  for
   them.   There  will be growth and jobs and more  wealth
   for  everyone.  But they are not told what would happen
   when  capital is pulled out, pulled out suddenly.  They
   will  not know it until it happens.  And then it  would
   be  too  late  as  they find themselves suddenly  poor,
   suddenly  full of jobless people.  But still  the  free
   flow  of  capital  is  touted as the  sole  essence  of
   globalisation.
   
   20.   We  need to look at this gift horse in the mouth.
   What  would  happen if the giant banks and corporations
   move into a country?  How will the small domestic banks
   and companies fare?  Obviously they are not going to be
   able  to  compete  with the giant  non-nationals.   The
   giants  can afford to lose in the country as they  will
   be  making profits elsewhere.  The locals cannot afford
   to  lose, at least not year in and year out.  They will
   go  bust  or  they will have to accept being  acquired.
   Either  way they lose out, becoming at most a  minority
   shareholder but most probably selling out and living on
   the  proceeds.  There won't be too many businesses they
   can go into as most would be non-viable as other giants
   pose  threats to their survival.  And so in  the  whole
   world there will be a limited number of giants in  each
   business,  an oligopolic situation which  will  not  be
   healthy.  And everyone who wishes to work will have  to
   work  for  these giants, to be one of the  hundreds  of
   thousands  of  the  minions of these  globe  straddling
   giants.   Perhaps there will be one giant multinational
   union  to represent all the workers of the corporations
   around  the  globe - but I doubt it.  It would  be  too
   powerful and too dangerous to be allowed.
   
   21.   We  have  heard of the Banana Republics.   It  is
   ridiculous   to  suggest  that  banana  growers   could
   manipulate Governments but when a Government depends so
   much  on one source of fund and of bribes, then  Banana
   Republics  become entirely possible.  What will  happen
   when  foreign banks and corporations, each  many  times
   bigger  and  richer than the host country, decide  that
   the  Government is not doing the right thing  by  them.
   The urge to exert pressure on the Government by foreign
   giants  would be irresistible.  Of course  these  great
   corporations and banks will not resort to  bribery  and
   pressure  but  can  we  be  certain?   Either  way  the
   independence  of  nations will become  non-sustainable.
   The foreign corporations will take over.
   
   22.    Governments,  at  least  those   of   democratic
   countries,  are  elected by the people  and  owe  their
   legitimacy  to the support of the people.   The  people
   through  the  constitution and the legal processes  can
   discipline them, can dismiss them even.  But banks  and
   corporations  are not so democratic nor will  they  owe
   allegiance  to the people of a country.  They  are  not
   elected  by the people and they cannot be dismissed  or
   voted out. Only the people who hold shares in them  can
   remove  the  directors but we have seen  how  difficult
   this  is.   Besides  powerful  shareholders  who  wield
   strong   influence  over  the  Governments   of   their
   countries  of origin will protect them against  actions
   by locals.
   
   23.    The   free   market  can  certainly   discipline
   Governments  but not necessarily for the  good  of  the
   people.   The  market players are the  most  likely  to
   benefit  when markets discipline Governments,  probably
   at  the expense of the people.  The main concern of the
   free  marketers  will  be profits for  themselves,  not
   social  justice.   Paradoxically they will  claim  that
   social   justice   is  the  concern   of   Governments,
   Governments which they have emasculated.
   
   24.   After  all  that I have said I am sure  you  will
   conclude  that I am against globalisation.   But  I  am
   not.    Globalistion  is  a  great   idea.    Correctly
   interpreted  it  can  be  a  means  of  correcting  the
   inequities in human society worldwide.
   
   25.   Today some countries are filthy rich and some are
   church-mouse poor.  One sixth of the world's population
   is  living from hand to mouth, unsure of having food on
   their table the next day.  A substantial number earn  1
   U.S.  Dollar a day.  Yet there are countries  with  per
   capita  income of  30,000 U.S. Dollar or 82 U.S. Dollar
   a day.
   
   26.   Why  is this so?  Why is there such disparity  in
   incomes?   In  most countries those who make  money  in
   business  or  through wages are required to  give  back
   some through taxes.  Yet the MNCs who make huge profits
   operating  throughout the world and are going  to  make
   even  more  with  globalisation contribute  nothing  to
   alleviate the poverty of the world's poor.  Yes they do
   sometimes  pay  taxes to the countries  in  which  they
   operate, although many don't.  But what about the  very
   poor  in  the  poor countries where the  MNCs  have  no
   business?  If in a country the poor gets some share  of
   Government  revenue irrespective of which part  of  the
   country  they live in, why cannot the poor in the  poor
   countries  unattractive to business be also given  some
   benefit?
   
   27.  Yes, aid and loan have been given but we have seen
   how  ineffective these have been.  If on the other hand
   the  rich  countries  by universal convention  were  to
   allocate a fraction of their revenue to actually  build
   needed infrastructure in the poor countries, then  much
   will  accrue to the poor people, the workers, the small
   contractors of these countries.
   
   28.    Experience   have   shown  when   infrastructure
   constructions  are undertaken no matter by  whom,  jobs
   and  contracts are generated for the locals and foreign
   funds would flow in to enrich the country.  In addition
   the building of infrastructure serves as a catalyst for
   development.   All along the roads and  railway  lines,
   near ports and airports, new settlements and towns  and
   businesses will grow.  Electric power plants and  water
   supply projects also built by infrastructure funds will
   provide basic necessities.
   
   29.  Globalisation would then be more meaningful for  a
   greater  number  of people.  In addition  globalisation
   should  be  regulated  so  as  to  prevent  monopolies,
   oligopolies  and the exploitation of the  poor  by  the
   rich.  Rules and regulations are not incompatible  with
   globalisation  as  long as they are designed  with  the
   protection  of  the  poor countries  from  unscrupulous
   manipulations by those with capital and influence.
   
   30.  Most importantly the globalised world must not  be
   for  the  capitalists only.  The social  needs  of  the
   citizens and the workers in the poor countries must  be
   given equal consideration.  Not only must the people be
   fairly compensated but their pride must not be injured.
   
   31.   Globalisation  must  be  for  all.   Capitalists,
   workers and Government must benefit from globalisation.
   If  capital  is  to be allowed to cross borders  freely
   then workers too should be allowed to do the same.   If
   this  cannot be accepted then free capital flows cannot
   be  accepted as well.  If free flows of workers have to
   be  regulated in a world without borders, a  globalised
   world, then capital flows must be regulated also.
   
   32.    Globalisation  must  be  planned   and   planned
   carefully.   The  planning must involve  everyone  from
   every  part of the globe.  It must be for the  good  of
   everyone and it must be proven to be good for everyone.
   It  must be implemented slowly, with the biggest effort
   directed at benefiting the least developed parts of the
   world.  Globalisation should not be about business only
   but  it  should be about the well being of everyone  in
   human  society  worldwide.  Then  and  then  only  will
   globalisation be meaningful to the world at large.

   Sumber : Pejabat Perdana Menteri
    




    
    

             
 


 
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