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"GLOBALIZATION"

The "Globalization" Homepage

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THE WORLD WAITS FOR A RE-VISIONING OF A NEW PERIOD

Seymour M. Hersh. "The World of Business: The Price of Oil." What was Mobil up to in Kazakhstan and Russia? The New Yorker, 9 July 2001: 48-65.

A messy oil deal helps frame the question: Whither globalization from here?

AN ESSAY

15 July 2001 Copyright © 2001 Richard P. Richter .............................................

 

 

 

 

 

 

 

 

 

 

 

 

 

 

waits

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THE WORLD WAITS FOR A RE-VISIONING OF A NEW PERIOD

Seymour M. Hersh. "The World of Business: The Price of Oil." What was Mobil up to in Kazakhstan and Russia? The New Yorker, 9 July 2001: 48-65.

A messy oil deal helps frame the question: Whither globalization from here?

AN ESSAY

START>>>>1. Looking for a vision and a vocabulary

2. Dealing in the globalized space

3. Correcting globalization's logical fault

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looking

 

THE WORLD WAITS FOR A RE-VISIONING OF A NEW PERIOD A messy oil deal helps frame the question: Whither globalization from here?

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1. Looking for a vision and a vocabulary

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Seymour Hersh in 1970 won a Pulitzer Prize for the reports he filed on the massacre of Vietnamese civilians by an American military unit at My Lai. His reporting on My Lai showed the ugliness of America's military involvement in global politics. Similarly, Hersh's report in The New Yorker article cited here shows the ugliness of American business involvement in the global economic system emerging since the end of the Cold War.

The American aim of containing the Communist system took us to Vietnam and My Lai. When the Cold War ended in 1990, the East-West division of the world collapsed, opening a global arena for a new period of economic enterprise. Thomas Friedman and others have labeled this "the globalization system." Felix Guattari calls the same phenomenon "integrated world capitalism."

Economic globalization depends heavily on the old capitalistic assumptions of laissez-faire. The freer the markets of the world become, the more efficiently globalization will proceed. The more robust the process of global economic development becomes, the greater will be the human benefits around the globe.

A corollary to this neat idea is that the exercise of geo-political power by nation states has (or should be) minimized with the end of the threat of mutual East-West annihilation. In practice, of course, the exercise of geo-political power by the US, now the modern-day Rome on a global stage, has persisted. The old aim of defending and advancing democracy and human rights remains in place. (Critics of America translate this into defending and advancing the hegemony of American power.) Nations and international terrorists that resist democratic process and human rights (or pose a threat to American interests) remain in our diplomatic and military cross-hairs.

Another corollary is that the command economies of the former Soviet bloc and the undeveloped economies of the former Third World have the capacity to evolve as mature components of the Western style of business and banking. They have the capacity for making their economic infrastructures transparent and predictable through a rule of law. In doing so, the notion goes, they will attract international investment; the economic potential of their natural and human resources will then transform into new wealth, raising standards of living compatible with those in the West. Along the way, the style of personal freedom and consumerism that characterizes the West will spread throughout the world, propelled by the media and the global use of English.

This new globalizing idea for the way power and people deploy has come into the consciousness of people under the pressure of rapid technological transformation. By shrinking time and space around the globe through electronic communication, humankind has created a novel set of circumstances that demands rationalization. This set of circumstances is altering the way individual subjects imagine their very identities, for it is altering the terms of their social and environmental existence. These alterations are also squeezing nation states and ethnic cultures into new relations with new refrains of meaning.

There is thus an inevitability to the dialogue about the emergence of a globalization system. Faced with unprecedented conditions, people all over the earth are looking for a vision and a vocabulary to describe what they are feeling about these conditions. They are looking for ways to deal with it. Out of that felt need for a new vision and better understanding has come the idea of globalization as a period of human history and a system of interconnectedness at every human level.

End of 1. Looking for a vision and a vocabulary

Go to 2. Dealing in the globalized space

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dealing

 

THE WORLD WAITS FOR A RE-VISIONING OF A NEW PERIOD A messy oil deal helps frame the question: Whither globalization from here?

 

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2. Dealing in the globalized space

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"The Price of Oil" by Seymour Hersh in the 9 July 2001 issue of The New Yorker helps us reflect on the state of globalization in its formative stage. What Hersh shows us is not as ugly as his My Lai report of thirty years ago; but it is not pretty.

Hersh tries to sort out the machinations in the newly globalized space of a post-Soviet state (Kazakhstan) and a global corporation (Mobil before it became ExxonMobil). Those machinations surrounded the search for the Holy Grail of our time--oil, specifically in the "seemingly bottomless" field at Tengiz on Kazakhstan's Caspian coast.

The cast of players in this messy deal included (a) money-driven American operators with personal influence on Kazakhstan's governmental leaders; (b) those leaders themselves, who had all the appearance of thieves; (c) the US government, zealous to enforce its legal sanctions against trade with Iran; (d) other individual deal makers out to gain millions by connecting sellers and buyers in the complex quest for oil; (e) Mobil Corporation, desirous of staying within US law while grasping for as much oil as possible from the Tengiz field.

Hersh's story centers on a deal to swap Kazakhstan oil for Iranian oil. Landlocked Kazakhstan oil could not efficiently reach world markets, with their promise of big profit. Iranian oil, with its open avenue to the seas through the Persian Gulf, could. Kazakhstan oil from Tengiz delivered easily to Iran and consumed there could be swapped for equivalent amounts of Iranian oil shipped to the global market. This would give Kazakhstan (more accurately, its thieving leaders and their opportunistic operators) maximum return. Mobil's ambiguous role in this swap, according to Hersh, probably arose from its longer term strategic goal of gaining rights to the rich Tengiz oil field. If its operatives could assist Kazakhstan to reach the global market through the swap with Iran, they could gain favor with the Kazakhstan leaders and win more rights to oil in the Tengiz field.

From the perspective of the emerging globalization system, there were two problems with this deal.

(1) Since US sanctions made it illegal for American corporations to trade with Iran, Mobil and others had to take elaborate steps to avoid the appearance that the company was doing business with Iran. This led to transactions uncharacteristic of the free and above-board business envisioned in a fully functioning globalization system.

(2) The business and legal structures of Kazakhstan were opaque. A mafia-esque climate of threatened violence toward uncooperative business people added an ominous gloss to this opacity. In these circumstances, millions of dollars intended for the Kazakhstan state treasury disappeared into rat holes, presumably occupied by greedy operatives and Kazakhstan leaders.

Optimists might say that these were merely predictable conditions on the road to a fully developed globalization system.

US sanctions, they might say, hang on from an older notion of the way to exercise state power. As the new system emerges, the US and other Western nations will meld their geo-politics more effectively with the open market system girdling the world.

From this optimistic viewpoint, Kazakhstan, like other nations formed in the aftermath of the USSR, might be characterized as a work in progress. As such developing nations see the power of operating in a free market economy, they will develop the business and legal sophistication required to make it work.

Moreover, optimists might add, international trade since Marco Polo has never been a scene for saints. Globalization does not promise a rose garden; it just promises an order for the playing out of powerful forces on a scale never possible or even imaginable before.

End of 2. Dealing in the globalized space

Go to 3. Correcting globalization's logical fault

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

correcting

 

THE WORLD WAITS FOR A RE-VISIONING OF A NEW PERIOD A messy oil deal helps frame the question: Whither globalization from here?

 

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3. Correcting globalization's logical fault

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A less optimistic view is that problems such as those in the Tengiz affair symptomize a complexity that never will yield to the allurements of a theory of globalization. From this point of view, the laissez-faire foundation of globalization is inadequate, and so far there is no complementary thought to make up for its shortcomings. The opposition of grass-roots and labor movements against free trade and against the power of transnational corporations to alter national priorities represents a common-sense reaction to globalization's logical fault.

John R. MacArthur, writing in the Providence Journal (12 May 2001), articulated this logical fault when he reported on the free trade summit at Quebec City:

No respectable economist would call NAFTA or FTAA a free-trade agreement because free trade assumes not only duty-free movement of goods and capital, but free movement of labor across borders, which neither the United States nor Canada can tolerate. Pure free trade is a utopian madhouse, even crazier in concept than communism. Just imagine the damage to the social structure--not to mention wage rates--if unlimited Mexican immigration were permitted in either country. (My underline)

A reasonable working opinion at this date is that world leaders and thinking citizens have to address the conceptual limitation of the globalization system. If globalization rests on the assumption that world markets can operate freely and if complex reality cannot support this assumption, then globalization as a system will operate inefficiently and, in the process, damage precious human values around the world.

Where does that leave us? A start may be to acknowledge the following.

(1) Since 1990, with the end of the Cold War, the world indeed entered a new period of history. Its keynote is global electronic connectedness. From this connectedness radiates a whole range of changes in the way persons and societies think and behave within themselves and one to another. Short of a Luddite reaction that destroys the World Wide Web (some activists doubtless think about it), this worldwide convergence is inescapable and is setting the agenda of globalization. We will have globalization, however we define it and however much we approve or disapprove of it.

(2) The idea of globalization to some extent rationalizes what has happened to the world since 1990; but so far it has done so inadequately. Globalization is a target of opposition for the world's underdogs as much as it is a rallying cry for free and open economic development of the globe's human and natural resources. Opponents see globalization as an enemy of workers, of social values, and of the physical environment. No one has yet expressed the ends of globalization in such a way as to satisfy these opposing voices.

(3) Therefore, it is imperative that we find a better way to define and practice globalization. We are ripe for a fresh perspective that goes beyond the old Enlightenment ideas on which globalization, as presently understood, rests. This better way needs to be as expansive and inclusive as the globe itself. One starting point could be the comprehensive notion of ecology found in the late work of the late Felix Guattari. Here are two quotes from his The Three Ecologies, first published in France in 1989. Such insights might provoke the kind of re-framing and re-visioning that globalization begs for:

The Earth is undergoing a period of intense techno-scientific transformations. If no remedy is found, the ecological disequilibrium this has generated will ultimately threaten the continuation of life on the planet's surface. (27)

The only true response to the ecological crisis is on a global scale, provided that it brings about an authentic political, social and cultural revolution, reshaping the objectives of the production of both material and immaterial assets. (28)

More current is the popular discourse occurring around Empire, by Michael Hardt and Antonio Negri. Fredric Jameson, the master of postmodernism, quoted in the New York Times (7 July 2001), called it "the first great new theoretical synthesis of the new millennium." (This almost sounds like a baton-passing ritual from one academic star to another.) Hardt and Negri reportedly see in globalization the beginnings of a new distribution of political power that will overcome the boundaries traditionally set up by nation states and regional economies. Their "empire" is apparently a self-organizing, all-encompassing system beyond a single point of authority or control (similar, perhaps, to the autopoiesis defined by Maturana). This sounds like a logical extension of the kind of decoding through lines of flight and reterritorialization that we find in the postmodern writings of Guattari in partnership with Gilles Deleuze. (The buzz around Empire is such at this writing that I've been unable to buy it and have to wait for my bookseller's order to come in.)

I am thinking that out of discussion at the degree of inclusiveness found in Guattari and in Hardt and Negri, a formulation of globalization might emerge that would provide an operative new myth. It would link rhizomatically to key ideas from the postmodern project. It would aim to influence the course of global development in creative and so-far unimagined ways.

And it might provide the foundation for above-board deals in Kazakhstan oil that would benefit the many rather than a few unscrupulous thieves in positions of power.

End of 3. Correcting globalization's logical fault

End of essay

 

 

15 July 2001 Copyright © 2001 Richard P. Richter