A better world is possible - Global Commons Institute

Copyright Bruce Nixon 2010. All rights reserved. This electronic copy is provided free for personal, non-commercial use only.
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value the current system in which poor people earn a living by reclaiming waste and those who want to use
incineration which, amongst other toxins, produces harmful dioxins.
Instead of reducing worldwide poverty, rapid economic development in developing and wealthier nations
makes a growing elite of super rich people vastly richer. Of course relatively small numbers are rising out of
poverty to become middle class. We see this most graphically in Mumbai where, despite rapidly growing
prosperity, 62% of the population live in slums. This pattern of economic development creates problems
everywhere, most of all in poor countries and poor areas of rich ones. Certainly some countries, like
Singapore, have been lifted out of poverty, but in many cases, not through free trade. Like us, they enjoyed
protection whilst developing their economies. Adam Smith (1776), misquoted by advocates of unrestrained
free-market capitalism, had a much more complex view.
International efforts to eradicate poverty, over the years, have failed. They create huge debt; destroy
livelihoods and local food production, further undermine self-reliance and pride and create dependency. The
conditions of aid, restructuring meaning privatising public services and reducing expenditure on education
and health services, have been very damaging. Livelihoods of local farmers and peasants are being ruined in
many poor countries by land grabbing and the incursions of large national and global corporations. The rush
to produce bio-fuels is a disaster for people and the environment.
The fundamental obstacle to overcoming poverty is a global trade system. The following figure summarises
the policies that do most harm. These are enforced by unrepresentative bodies pursuing the interests of big
business and wealthy countries, General Agreement on Tariffs and Trade (GATT), World Trade Organisation
(WTO), World Bank, International Monetary Fund (IMF) and European Union (EU).
Trade policies
Rich Countries’ Unfair Trade System
International organisations (WTO), World Bank, International Monetary Fund (IMF) and
European Union (EU) and negotiations are dominated by the countries with the highest GDP set
the agenda
Imposition, by such institutions together with big corporations, of Western ways of doing things,
which are frequently inappropriate, shows disrespect for local populations and dis-empowers
them – the reverse of what is needed
Loans and aid are conditional on "Structural Adjustment Programs" (SAPs) that privatise or
reduce public spending on health, education and social services, falling hardest on the poor
Privatisation enables rich countries to take over public services, like water, often at much higher
cost to poor people
Loans instead of aid create enormous debt and interest burden
Many poor countries have to allocate the majority of revenues to debt repayment instead of
healthcare and education
Western countries Impose free trade and do not allow the protection needed for local enterprise
to grow
Removal of tariff barriers to imports from rich countries is not reciprocated
Heavily subsidised western products are dumped on poor countries, thus undermining or
destroying the capacity of local producers and traders and the capacity of poor countries to build
their own economies
Food aid frequently has the same effect
Basically these policies exploit poor nations’ resources without proper benefit to them
Irresponsible corporate practices
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