Sunday, July 19, 2009

Stiglitz on Russia, WTO and NWO

Many people disdain the term New World Order - but like it or not - one is coming: a world order which is not dictated by the hegemons of the USA banking/corporate moguls. See What does the NWO really mean?

Yes, there will be a new world in which the 'profit before people' dogma is not the 'invisible hand' that rules the world.
Russia, China and the developing world has had enough of USA militarism for profit, and calling the shots for the rest of the world.

Whether or not one understands the earth shaking importance of the dollar being replaced as reserve currency, this change will rock the world. Perhaps not as fast as the bombs the US showers on its unfortunate imperialistic resource targets. But things are going to change big time. It may take a few years but the change cannot be stopped now.

If there is going to be hope for all, global governance must not be in the hands of the superlatively greedy. A balance of powers which must cooperate for the mutual benefit of all is much preferable. This battle will be fought not with bombs and high tech weapons; but with global trade. The new world order will have to do with how to divide the remaining resources of the planet among nations and their peoples in a fairer way for all. And the World Trade Organization (WTO)is center stage.

Members of WTO

I recall attending an upper division business class in which my fellow students had to give a presentation and overview of the WTO. At the end, I asked a question: If the WTO is so wonderful, why are so many nations protesting its meetings? My bizhead classmates stood frozen like deer in the headlights. They apparently had no answer because they had no real understanding of the topic they were assigned to discuss.

The World Trade Organisation is the power broker in today’s global economy of international trade which is the driver of world economic growth. Although WTO rules assure all countries will get a fair deal regardless of their size or bargaining position, this is sometimes forgotten when superpowers begin feuding in the global arena about cotton and corn. And as in the boxing ring, there are heavyweights and lightweights. Big fish eat little fish. Being the world's economic superpower for decades, the US has eaten a lot of little fish and intends to consume all it can. But the little fish are fighting back now, supporting the plans of China and Russia for a fairer distribution of earth's resources.

The critical drivers of this change are 1) a change in the reserve currency and 2) a fairer shake for all nations in the WTO. When China and Russia are both members of the WTO, the USA will no longer be able to dominate its mechanisms with the hubris of its hegemonic world domination plan.

Joseph Stiglitz is a world renowned maverick economist whose advice has largely been ignored by the governments who represent the interest of multi-national banking/corporate moguls. The article below concerns the entrance requirements of Russia to the WTO imposed by USUK (United States and United Kingdom). Of course USUK does not want Russia to join the WTO as it would dilute their power (and perhaps bring about a new world order not envisioned by the current Masters of the Universe).

Make no mistake: the future depends on a fairer system of international trade, whether or not one finds this boring.

Joseph Stiglitz calls Russia's WTO
entry terms 'outrageous'


Prominent U.S. economist Joseph Stiglitz on Thursday called the terms demanded of Russia to join the World Trade Organization "outrageous" and praised Russia for standing up to the global trade body.
"The WTO should be an international agreement where, if you agree to go along with the provisions, any country can join," said Stiglitz, winner of the Nobel Memorial Prize in Economic Sciences (2001) and former senior vice president and chief economist of the World Bank.

"That's not the way it's done. The way it is done is what one group called 'extortion at the gate,'" he said during a Moscow-Manchester video conference. "The United States and some other countries have tried to say, 'if you want to join our club, you just don't have to agree with the terms everybody else does, but you have to pay us something extra, you have to go beyond the terms of the agreement and give concessions that other countries don't have to agree to,'" he said. "I think this is outrageous.

And I think it was important for Russia to say 'we won't do that, we will go along with the agreement signed by other countries but we won't be subjected to this kind of extortion,'" Stiglitz said.
"Unfortunately poor countries, developing countries, often aren't in that position of strength to say that to the WTO.

And I think it was actually a positive contribution for the sake of the whole global community that Russia did that," the professor at Britain's University of Manchester said.
He also said Russia had much less to gain from joining than other countries because its export base depends so much on natural resources and raw materials, which are not subject to trade restrictions. "Meanwhile your market could be flooded with imported goods from other countries that would make it more difficult for you to recreate the industrial base that would be necessary for a strong economy," he said.

Russia has been involved in talks to join the WTO for 16 years, Kazakhstan for 13 years. Belarus recently has shown no desire to join the global trade body. Russia, Belarus and Kazakhstan plan to join the global trade body in the form of a united customs territory. They made the decision on June 9 after talks between the three countries' prime ministers.


Why the dollar is dying
When China awakes, it will shake the world. - Napoleon Bonaparte
NWO = New reserve currency
Patrick Bond: Will economists Stiglitz and Yunus add to debate on crisis?
Stiglitz slams inflation-targeting
Stiglitz: The UN Takes Charge (Update: and The Economic Lessons of the Iraq War)

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