As I explained at the beginning of my previous post I am spending all my free time on doing research for my paper. It came to me that if I wrote something on that, I would be able to maintain focus and keep you readers well-supplied for the next couple of days. What follows is a slimmed down summary of what I've been reading the past few months. It accounts of the exploitation of the South, its environment and the evil ways of capitalism. Enjoy!
In the West we still are under the impression that we ought to learn people in the South how to live in a sustainable way. This is evident from our leader's attitudes at international conferences and the various 'plant a three in the South'-like campaigns that are put forth as a solution to ecological crisis. As if environmental degradation in the South is the result of ignorance rather than poverty. As if we are setting a good example...
This is exactly the attitude that needs tackling: the whole idea that the North has the most progressive environmental policies is misleading. Sure, such statement holds when we are talking about quality standards of rivers and the like. But what about international trade? "Now what has trade got to do with it", you ask? Economic policy is not isolated from environmental concerns, just like the world economy is not isolated from the global ecosystem. The North consumes a majority of the natural resources that are extracted from this planet, yet most degradation that accompanies this extraction is experienced in the South. Rich countries use their purchasing power to shift the burden to the South. We cut down African rain forests in stead of American temperate woods. Now isn't it strange that third world countries suffer from deforestation while we don't see that many IKEA-closets in Kinshasa?
We can maintain both our welfare and natural richness by externalizing the environmental costs associated with production processes. We are still exploiting the South when enjoying our Starbucks coffee or blogging from our HP laptop. Not that we should be surprised at such a conclusion. Exploitation is the very mechanism that makes money go round. From its very start, the capitalist mode of production was grounded in keeping certain costs external to the one who was producing for the market. The market value in other words should not reflect the full cost of production upon society. An example: Starbucks doesn't make you pay for the biodiversity that got lost while clearing tropical forest for a coffee plantation.
"But doesn't the market tend to evolve toward some kind of balance, a correct price?" If only economists would use a little more of their time researching why the optimum is so hard to achieve, you wouldn't need to ask that question. (Economists tend to chatter along about an optimum hardly ever achieved...). If prices where to reflect the real social and environmental costs inflicted, there wouldn't be any surplus gain. The notion that under perfect competition no surplus profits are made is central to economic theory. Yet a lot of free market champions don't seem to understand that you can't get anything for free.
This is why a fair and sustainable society can never be achieved under capitalism. In a system based on the exploitation of both labor and nature, wealth can only be generated for a few at the expense of the many. If we would force our firms to internalize the full cost, the system would start to sputter. Our mode of production is one of production for sale; market value prevails over use value. Change needs to occur at the most fundamental level. Capitalism, with its insatiable hunger for more, functions as a treadmill of destruction. It must be stopped before it collapses under the gravity of its own consequences.
