3071-The political economy of new slavery

196 The Global Framework for Development
Perhaps even more significant is the emergence of the power of
corporations, large and small, that make up the global economy. This
aspect of globalization – the globalization of production – is often seen
as globalization itself and is precisely what makes it a bad thing! But
an attitude of total rejection is unwise; we need to find ways in which
the process of economic globalization can be humanized from within
(Scholte, 2000).
First, the development of the global economy does not have to be based
on neo-liberal values of the free market with minimum regulation.
Global capitalism could be more regulated by rules safeguarding labour
conditions – including, in particular, conditions of economic slavery and
exploitation – or the environment, and could be subject to more or new
taxation (such as the proposed Tobin tax on international money transactions),
and still be capitalism (see Chapter 11 in this volume). This is
exactly what we have within some economically advanced countries.
Second, precisely because of the great global power of corporations
operating somewhat independently of the international system of states,
there is an increasing recognition, even within such organizations, of a
framework of ethical accountability. It is no accident that with increased
power, the whole idea of the ‘stakeholder’ as opposed to the shareholder
has gained significance. This idea is important because it recognizes a
wide constituency of groups of people who may be affected negatively
by the activities of a company. How wide the constituency is, is a key
contested issue. Furthermore, there is an immense increase in interest
in what is known as ‘corporate social responsibility’ and even ‘corporate
global citizenship’. In saying this I am not overlooking the fact that
there is a long way to go; in the meantime, the general impact of the
corporate world on the poor of the South is, on balance, either bad
or much worse than it could be if only more responsible attitudes were
adopted. But there are growth points within the corporate world for
ethical critique and these need to be fostered and built upon. Some
development ethicists may actually feel it is right to consort with the
enemy camp. For the global economy to work more humanely for the
benefit of the poor, a transformation is needed from within – aided of
course by those outside willing to engage in constructive dialogue with
those within who are interested in it.
Third, there is a great danger that we objectify the global economy as
though it has little to do with ordinary people. In fact it has everything
to do with them, especially in their role as global consumers and
investors. Almost all who are well-off are part of this vast economic
process, as are the very poor; but the well-off are beneficiaries of it in