[asia-apec 554] Expert: Globalisation will lead to instability

[PAN Asia Pacific]

The Sun
August 10, 1998
p. A7

EXPERT: GLOBALISATION WILL LEAD TO INSTABILITY

(Petaling Jaya, Malaysia)  Globalisation may be the springboard of
economic success, but this free market system may lead to
political and economic instability.

Even industrialised nations tend to suffer if they are not
regulated properly, said Hans Koechler, professor of political
philosophy at University of Innsbruch, Austria.

Eventually, industrialised states will disintegrate and
eradication of poverty become obsolete, he said.

Statistics indicate that the disparity between the rich and poor in
Europe is increasing, he said in a public lecture here on
"Globalisation: Its impacts upon politics and the economy."  

In the wake of globalisation, developing economies too may suffer
serious repercussions if not protected from the powerful nations.

He cautioned that economic colonisation will be the result of the
globalisation theory which is propogated by the west.

"A system where there is no boundary or limit to economic
activity, no moral, legal or political restriction which will lead
to instability among states."

The thawing of the Cold War led to the emergence of a new market
concept called globalisation, which preaches free market democracy
and borderless societies.

But its long-term effect on domestic economies and politics can be
devastating, according to Koechler.

The concept impinges on the independence of smaller nations as
there are no proper checks and balances.  Ultimately these nations
lose their bargaining capacity and fall prey to the hegemony of
industrialised countries, stated Koechler.

In some countries, multinationals are much stronger thatn local
politicians in influencing political decisions, to the extent they
even challenge the sovereignty of the state.

Hence, economic and social freedom is totally lost, he added.  The
economic arena is no exception.

"Human labour is treated like raw materials and production centres
shift according to profitability which leads to unemployment.

Trade unions are slowly phased out and workers lose their rights."

The dynamics of unrestricted free market has led to severe
unemployment as companies tend to base their manufacturing outfits
where labour is cheap.

He mentioned that responsibility or commitment towards a common
economic goal is absent.  Unaccountability towards free flow of
capital, exploitation of currency and anti-foreign sentiments are
the outcome of globalisation. 

This political structure is narrowed to support only a special
group of people, pointed out Koechler.

On the issue of Asian currency, Koechler strongly criticised
currency trading.

"Currency trading should be strictly regulated.  Otherwise it
makes currency very volatile."