THE HANDSTAND

JULY 2002

GLOBAL FREE TRADE.

A STUDY OF GLOBALISATION of TRADE ON PACIFIC ISLANDS CAN ALREADY BE USEFUL TO ASSESS AND COMPARE European Union MEASURES.

 

In so far as “globalisation” of trade, production and investment have already had adverse effects in the Pacific Islands(doc. by Aziz Choudry) it is certain that we should discuss the EU expansion plans (referred to in our April/May edition) very carefully. The EU expansion plan is modelled on the World Bank and the IMF Global-trade plans, and as we pointed out is liable, and has already in some cases,to interfere with the social infrastructure in European countries and elsewhere disastrously.

Jane Kelsey, Professor of Law at the University of Auckland, defines 'good governance' now-a -days as "shorthand for a limited government" whose role is "to facilitate:-Free Markets, "Western"-style rule of Law, individual liberty, private property rights, and passive forms of electoral democracy."

Building upon the World Bank's approach, the ADB(Asian Development Bank) has identified "four basic elements of good governance: ....
1.accountability - of the public sector for delivering specific results;
2.predictability - of legal frameworks for private sector development; 3.transparency
4.participation - of key stakeholders."

These amount to
1.Interference and dictat to local government;
2.Interference in legal niceties regulating indigenous trade and resources, allowing foreign business whatever position in Law it requires;
3.Transparency that allows foreign business make deals to suit itself that will then become obscure;
4.Business invasion of all community held resources.

These basic elements have ensured that governments are accountable to international companies that wish to buy share holdings or take over national facilities: water, electricity, radio and television wavebands and large concerns,
( such as the potential of Aer Lingus, at present in a suspiciously structured freefall, and caused the scandal of a share sale in Telecom that was advertised as a patriot's reward and proved to be only the patriot's loss)Ed.

These developments have already occurred within the EU as "market-friendly policies widely accepted as economically "sensible", "albeit politically difficult to implement."! ! !

In the Pacific area the ADB has achieved"A core good governance agenda,(i.e.the limited government as defined above) of economic policy:...
public sector and governance reform has already been agreed to,"..." The Pacific countries had already agreed in principle to this agenda through the Pacific Islands Forum.The ADB has appropriately fostered and supported this agenda, which forms the basis of most of the reform programmes currently being financed by ADB”….. This supposedly entails across-the-board intervention to promote the "competent management of a country's resources"
BY FOREIGN BUSINESS CONCERNS, in a manner that is..... responsive to people's needs and which enables all people to contribute to and benefit from development.";
 
THESE ARE CALLED NEO-LIBERAL REFORMS. This “promises” to promote "privatisation of state-owned enterprises, private sector participation in infrastructure development, liberalisation of investment and trade regimes, and greater competition."

Pacific peoples still have little or no input into the development of economic policies affecting them. What consultations there have been with communities and NGOs(non-government organisations) about the economic reforms have been little more than cosmetic exercises.
Delegates of public sector trade unions throughout the Pacific said that radical restructuring of the state sector has had disastrous effects.
Restructuring is simply leading to high unemployment and the erosion of labour standards. "It is undermining communities and breaking down social cohesion"

Most said that as a consequence of privatisation, deregulation and globalisation, living standards had lowered, and employment rights had been eroded through individual contracts.
As a result of job losses through restructuring, emigration has soared.

These reports (ZNet Commentary http://www.zmag.org The Asian Development Bank, By Aziz Choudry)should provoke some of the necessary forethought that will precede our signing accord to the Nice Treaty ????????

 In Ireland here, under EU Law, small country markets have disappeared and small business concerns could only retain a foothold in the food market with extraordinary expense, dovetailing grants with personal investment, that left a heavy debt problem.  Another scandal, not widely appreciated by the public, is that with the grant-aid to small business firms,Governments or Grant facilitators expect to receive the allocation of a percentage of company shares.

The European Commission is presently calling for the extention of their powers to regulate economic policy co-ordination, wishing to consolidate its model of economic and social development. This model however has almost paranoid elements that would lead one to conclude that no indigenous models of social convention and financial fair-play, that are the customs developed over hundreds of years, are to be trusted to deliver additional resources to those who “govern”.There is emphasis in these communications that the European Union’s financial interests are the prime movers in every case.


AN INSULT TO GAELIC SPEAKERS:In May last the Maltese language was officially accepted by the European Union.
GAELIC SPEAKERS far outnumber the population of Malta, why is the Irish language unrecognised in the EU ? Over 7,000 homes receive Gaelic television regularly in Ireland alone, and the percentage of Gaelic speakers in Scotland is also high.


Journalists enquiring for public opinion on the EUROPEAN CONVENTION, have repeatedly been told that no one knows anything about it. The CONVENTION is to meet and discuss for one year, how to bring the citizens of the EU and the Commission, Council and Parliament together.

CONVENTION MOMENTUM UNDERMINED BY European Union Commission's ANNOUNCEMENT:

Attached to the discussions at the European Convention there is also a group of Non Governmental Organisations - but at this late stage it is still not clear how they will relate to the Convention.At the same time there is considerable discension in the European Commission, which has directed the Convention "The Commission has the power to initiate and conduct Foreign Policy in the future", and also to "take over day to day crisis management." Chris Patten, the External Relations Commissioner cannot support this and has declared that Foreign Policy is the business of each nation state.

The Convention members are, in the main, nation state parliament members and claim the need for greater power that will reduce the centralisation of the Commission's powers, BUT IN THE NICE TREATY AN ABOLITION OF THE NATIONAL VETO IN NEAR 3O POLICY AREAS IS PLANNED. Therefore voters should realise that matters of consequence OTHER THAN NEUTRALITY "GUARANTEES"are going to alter.... The Commission is fully determined to take the powers of a quasi-Government..The English, aware of this have a Committee to discuss these matters independently and the Chairman announced "It is now particularly important... to strengthen the EUs democratic legitimacy and bridge the gap between citizens and EU Institutions. National Parliaments can do this only if their handling of EU concerns are effective and engage public attention."

The Governments of Germany,France, UK, Poland and IRELAND have proposed that disputes in the EU should be decided in a political committee to ensure the EU does not claim priorities for itself that must be dealt with at National and Regional levels.