Globalisation & the Who's Who
of the New Ruling Elite
By SUSAN BRYCE
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In the post cold war era, a New World Order is evolving by economic,
as much as political means. As the aggressive scramble for global
wealth unfolds, international banks and corporations are anxious to
play a direct role in shaping financial structures and 'policing'
economic reforms. The old institutions of ‘shadow government’ -- the
Trilateral Commission, the Bilderberg Group, the Club of Rome and the
CFR, have been usurped by a new economic elite. This article looks at
several of these elite groupings and their effects on the
international political and economic landscape.
With a relentless drive to control the productive assets, labour,
natural resources and institutions of sovereign nations, the new
economic elite no longer cower behind closed doors. Their agendas are
no longer a shadowy secret. Their activities are openly reported.
Their policy papers are embraced by governments. Their members are the
respected ‘leaders’ of transnational corporations (TNCs).
Collaboration between them occurs at the highest level. The new
economic elite use esteemed groupings such as the World Economic Forum
and bodies such as the World Trade Organisation to achieve their
singular goal: profit maximisation through economic globalisation.
THE WORLD ECONOMIC FORUM
The World Economic Forum (WEF) is arguably one of the most influential
elite groupings. It is a membership-organisation which promotes
interaction among leaders from government, business, academia and the
arts with the vague objective of ‘improving the state of the world.’
Membership of the WEF is comprised of over 800 chief executives, some
200 government leaders, numerous high ranking officials from regional
and international organisations, some 300 experts, scientists, artists
and representatives of the media. Major firms from all sectors of
business and industry are represented.
The World Economic Forum organises high-level meetings and summits,
the largest and best-known of which is its Annual Meeting held in the
ski resort of Davos in eastern Switzerland. This week-long meeting,
informally known as the Davos Symposium, brings together the leaders
of transnational corporations to discuss their positions and meet
politicians at the highest level. World Trade Organisation issues
feature often on their agenda and have informally influenced WTO
policy-making through discussions regarding global issues and business
contracts. At the beginning of the eighties, the WEF played a major
role in launching the Uruguay Round.
The World Economic Forum is arguably a world government in waiting. It
not only is a forum for the development of economic policy, but is
also a political arena. In 1988 the prime ministers of Greece and
Turkey, attending the annual meeting, signed the 'Davos Declaration,'
thereby moving their countries back from the brink of conflict, and in
1994, Israeli Foreign Minister Shimon Peres and PLO Chairman Yasser
Arafat reached a draft agreement in Davos on Gaza and Jericho.
The Foundation of the WEF encourages 'the creation of economic regions
as pillars of the world economy.' The Foundation organises and runs
regional and national meetings around the world. Such meetings include
the 1994 Europe/East Asia Economic Summit in Singapore, the 1995
Southern Africa Summit, and the 1994 Middle East/North Africa Summit
held in Casablanca, Morocco, which was convened in partnership with
the Council on Foreign Relations, and which proposed mechanisms to
support the peace process in the Middle East. The World Economic Forum
also organises annual national meetings in a number of countries
including Germany, India, China and the United States.
CORPORATE PARTNERS OF THE NEW WORLD ORDER
It was at the 1999 WEF in Davos, that United Nations Secretary
General, Kofi Annan, announced the UN’s 'compact for the new century'
with transnational corporations.
During his speech to assembled delegates, Annan stated 'at a global
level, corporate control of the political and economic landscape is
being achieved by a new partnership forged with the United Nations
(UN). The business community is fast becoming one of the United
Nations’ most important allies. A fundamental shift has occurred in
the UN-business relationship. The United Nations has developed a
profound appreciation for the role of the private sector: its
expertise, its innovative spirit, its unparalleled ability to create
jobs and wealth. At the same time, business and industry are
recognising the many virtues of the Organisation’s work for political
and social stability and for a predictable, rule-based environment for
trade and investment. In a world of common challenges and common
vulnerabilities, the United Nations and business are finding common
ground.'
'The dialogue between the United Nations and the business community is
based on the conviction that expanding markets and human security and
well-being go hand in hand. That is why the Organization’s doors are
open to you as never before.'
The UN Secretary General then went on to elaborate upon the ways that
a ‘creative partnership’ between the UN and the private sector could
flourish. 'The goals of the United Nations and those of business can,
indeed, be mutually supportive,' he said.
He described human rights abuses, dwindling labour standards and
environmental degradation as 'legitimate concerns…but restrictions on
trade and impediments to investment flows are not the best means to
use when tackling them… instead, we should find ways to achieve our
proclaimed standards by other means.'
Discussing these 'other means', Kofi Annan advised that one way would
be through the international policy arena. 'You (the World Economic
Forum membership) can encourage States to give us the multilateral
institutions, the resources and the authority we need to do our job.'
Evidence of this new corporate alliance within the UN is growing
steadily. The United Nations Development Program, with a mission of
serving the world’s poor, has solicited funds from global corporations
who are paying $50 000 each for UNDP patronage privileges. In return,
the corporations receive special UNDP sanctioned logos. Their
financial contributions are held by the UNDP sponsored Global
Sustainable Development Facility, an entity which the contributors
themselves manage. Sponsors benefit from the advice and support of the
UNDP through a special relationship which affords corporations
unprecedented access to the UNDP’s network of offices, high level
governmental contracts and reputation. Some of the transnationals
which have contributed to the GSDF include:
Dow Chemical (USA)
Rio Tinto PLC (Britain)
Novartis (Switzerland)
Ericsson (Sweden)
Owens Corning (USA)
Oracle Corporation (USA)
Asea (Sweden/Switrzerland)
Citibank (USA)
ABB Group (Sweden/Switzerland)
AT&T (USA)
Cultor Coproration (Finland)
ESKOM (South Africa)
Hennes and Mauritz (Sweden)
IKEA International (Sweden)
RWE (Germany)
Statoil (Norway)
Swedbank (Sweden)
Telia AB (Sweden)
The UN’s corporate agenda is continuing to gain momentum with the
recent announcement that the UN High Commissioner on Refugees is
co-chairing a new organisation -- the Business Humanitarian Forum --
with UNOCAL, a company with one of the worst human rights and
environment records in the world. Sitting together on the Board of
this new organisation, which has been endorsed by Kofi Annan, are both
UNICEF -- an advocate for children’s rights -- and Nestle, a company
which continues to violate a UN code of conduct on infant formula
designed to protect children.
WORLD TRADE ORGANISATION
The World Trade Organisation (WTO) is itself another elite grouping of
economic powerbrokers. The WTO covers a wide range of sectors with
implications for most aspects of life. These include intellectual
property rights (including bio-technology), agriculture (food), the
services industry (transport) and telecommunications.
The interests of Transnational Corporations play a crucial role in WTO
negotiations. While it is the 132 member countries who are responsible
for decision-making across the WTO’s organisational bodies, it is the
private sector that increasingly influences the policy positions of
member countries. For the very large transnational corporations the
WTO is an important domain of trade jurisdiction and a crucial
determinant of the extent to which they are able to operate
unhindered.
As feared, in every case brought before it to date, the WTO has ruled
in favour of corporate interest, striking down national and
sub-national legislation protecting the environment and public health
at every turn. When an industry-backed governmental challenge to a
‘disadvantageous’ national or local law is brought before the WTO, the
contending parties present their case in a secret hearing before a
panel of three totally unaccountable trade experts -- generally
lawyers who have made careers of representing corporate clients on
trade issues.
There is no provision for the presentation of alternative perspectives
from non-governmental organisations, and documents presented to the
panel, and the identification of the panelists who supported a
position or conclusion, remain secret. If the offending government
fails to persuade the panel of the offending law’s validity, it is
legally and automatically bound to bring its law into line with the
lower international standard, or be subjected to perpetual fines or
trade sanctions. Theoretically, there is a process of appeal, but this
is only possible if all member countries vote to stop the decision
within 90 days. A procedure designed to ensure that appeals are
unlikely to succeed.
BUSINESS AND INDUSTRY ADVISORY COMMITTEE
There are also organisations within organisations that are driving the
forces of globalisation. One example is the influential Business and
Industry Advisory Committee (BIAC) of the Organisation for Economic
Cooperation and Development (OECD), which often influences the
position that the richer countries adopt in the WTO. The International
Chamber of Commerce (ICC) and TNCs plays an important role in BIAC.
INTERNATIONAL CHAMBER OF COMMERCE
The International Chamber of Commerce (ICC) calls itself the World
Business Organisation for promoting international trade, investment
and the global market economy system, and rules governing the conduct
of business across borders. The ICC covers 7000 member companies and
associations from over 130 countries and ensures that business
concerns are brought to the attention of governments in a coordinated
way via its international presence. Through its Secretariat in Paris,
it has access to the highest decision-makers and staff from the World
Trade Organisation, the Organisation for Economic Cooperation and
Development and the UN. Many ICC members are TNCs whose views
predominate in the ICC’s policy positions.
The ICC has privileged access to the United Nations. In 1997, a
delegation of ICC members, including industry captains from Coca Cola,
Unilever, McDonalds, Goldman Sachs, and Rio Tinto Zinc made a joint
statement with UN Secretary General, Kofi Annan describing the 'broad
political and economic changes that have opened up new opportunities
for dialogue and cooperation between the UN and the private sector.'
The two sides committed themselves to forge a 'close global
partnership to ensure greater business input into the world’s economic
decision making and boost the private sector in the least developed
countries.'
THE INSTITUTE FOR INTERNATIONAL FINANCE
The Institute of International Finance (IIF) is a mouthpiece for the
world’s largest banks and investment houses. In April 1998, it
proposed the creation of a ‘Financial Watchdog’ -- a so-called
'Private Sector Advisory Council' -- with a view to routinely
supervising the activities of the International Monetary Fund (IMF).
In the wake of the Asian economic meltdown, the IMF was quick to
response to the IIF. The Fund called for concrete 'steps to strengthen
private sector involvement' in crisis management in what might be
interpreted as a 'power sharing arrangement' between the IMF and the
global banks.
The agenda is to transform the IMF -- from its present status as an
inter-governmental body -- into a full fledged bureaucracy which more
effectively serves the interests of the global banks. More
importantly, the banks and speculators want access to the details of
IMF negotiations with member governments which will enable them to
carefully position their assaults in financial markets both prior and
in the wake of an IMF bailout agreement.
The international banking community has also set up its own high level
'Steering Committee on Emerging Markets Finance', integrated by some
of the world’s most powerful financiers including William Rhodes, Vice
Chairman of Citibank and Sir David Walker, Chairman of Morgan Stanley.
The global banks (pointing to the need for 'transparency') have called
upon 'the IMF to provide valuable insights [on its dealings with
national governments].'
EUROPEAN ROUND TABLE
Since its creation in 1983, the European Round Table (ERT) has
fostered top level cooperation between transnational corporations and
governments, at both national and European levels. It consists
exclusively of the Chief Executives (CEOs) of a number of TNCs based
in Europe such as Philips, Bayer, Unilever and Nestle. The ERT’s
powerful constituency gives it informal as well as formal access to
the highest ranking decision-makers including prime ministers and the
German Chancellor.
It makes its views well heard at the national and European levels by
means of short and authoritative reports, position papers and
face-to-face discussions. The ERT claims to have contact with the EC,
the Council of Ministers and the European Parliament, as well as many
international organisations such as the WTO. Every six months, the ERT
meets Ministers of the government holding EU presidency. At the
national level, each Member keeps in personal contact with
decision-makers, parliament, business colleagues, industry
organisations and the press. It also works with the ICC, and the
Transatlantic Business Dialogue (TABD). Research into the ERT
demonstrates the considerable influence on European policy and
decision-making, and further, that its adopted position on the WTO is
reflected in EU trade policy.
TRANSATLANTIC BUSINESS DIALOGUE
The TABD, the Transatlantic Business Dialogue, describes its function
as an informal process whereby European and American companies and
business associations develop joint EU-US trade policy
recommendations. Working together with the European Commission and US
Administration, they help shape US-EU trade policy including in the
WTO. It is a unique process, driven by business leaders, because of
the personal involvement of CEOs working closely with the highest
levels of government from the EU and US. It is not an organisation,
but a framework drawing on the resources of existing companies and
organisations, to deliver joint industry messages. The results are
considered much more efficient than the traditional structures for
government-business consultation.
The United States and EU businesses form working groups and produce
reports which are then used to inform policy-makers. The Working Group
on Global Issues addresses matters arising in the WTO such as,
services negotiations, the Information Technology Agreement (ITA),
government procurement, intellectual property, investment and
competition. ITA meetings are chaired by representatives from Olivetti
and Compaq.
Further consultation and lobbying occurs at a yearly conference which
bring together CEOs and senior-level government representatives,
including the highest level decision-makers such as the WTO
Director-General and the EC Commissioner for Trade. This combination
of CEOs and senior government representatives have proved to provide
an unprecedented opportunity to achieve breakthroughs on challenging
issues. The US and EU co-chairs of the TABD participated in the EU-US
Summit in The Hague in May 1997 with US President Clinton, European
Commission President Santer and Dutch Prime Minister Kok. The TABD
representatives formally presented the 1997 TABD Priorities Paper
which the political leaders regarded as useful building blocks and
inspiration to explore further possibilities of liberalising trade and
investment flows.
UNITED STATES COUNCIL FOR INTERNATIONAL BUSINESS
The United States Council for International Business (USCIB) has a
membership of over 300 multinationals, law firms and business
associations. It constitutes a special pressure group that promotes
the interests of US TNCs to intergovernmental organisations including
the OECD, the WTO, and different UN bodies, with which its
international affiliates have official consultative status. It is the
American affiliate of the International Chamber of Commerce (ICC) and
the Business and Industry Advisory Committee (BIAC) to the OECD. The
USCIB formulates its positions in over forty committees and other
working bodies composed of corporate and other experts drawn from its
membership.
THE GLOBALIST AGENDA
The groupings discussed in this paper are collective policy arms of
transnational corporations. As governments increasingly fear the
response of world markets to their policies, they look towards the new
economic elite, not their own constituents, to provide direction. This
‘direction’ -- so far -- has resulted in massive economic breakdown in
some nations, insecurity in all nations, unprecedented hardships for
millions of people, growing unemployment and dislocation in all
regions, direct assaults on environmental and labor conditions, loss
of wilderness and biodiversity, massive population shifts, increased
ethnic and racial tensions, and other disastrous results.
Through elite economic forums, companies are finding new ways of
limiting the power of states. Instead of alienating governments,
important actors, and institutions -- transnational corporations have
co-opted them. Just as a series of regional trade groupings gave way
to the World Trade Organisation, the 21st century will no doubt see a
further consolidation in the power of elite economic policy and
advisory groups as the corporate partners of the New World Order are
unmasked.
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"Opinions are like assholes, everybody has one,some bigger than others"
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