COPING WITH GLOBALISATION AND MARKET FORCES

Summary of Discussion at meeting of Sunday 13 January 2001, Ian Dickson’s place.


GLOBALISATION

  • Globalisation has a negative impact on small countries as well as on groups within countries, especially where it leads to urbanisation.
  • Globalisation has some positive impacts (eg greater knowledge worldwide can give publicity to issues and power to the people). It may not be bad per se but how it is happening at the moment is wrong.
  • Government accepts control by large corporations.

    How can we best respond to the globalisation of capital?

  • NWTP should work with opponents of the Multilateral Agreement on Investment (MAI)

    Can a regime of free trade be replaced by policies to promote 'fair trade'?

  • No such thing as free trade (eg. the field is not level), so shouldn't accept the argument that free trade is what we have.
  • Change in R&D tax concessions in Aust is an example of free but not fair (or sensible) trade.
  • There should be a global minimum income - related to the purchasing power of various currencies - and a cultural perspective in the global economy.
  • Need to develop a broad definition of the components of 'fairness' and require statements of who will benefit from various policies/programs.
  • Shareholders should be encouraged to 'take on' companies wrt poor practices by having more information about what companies are doing, although it was recognised that the motivation of most shareholders was economic rather than ethical.
  • Publicity may be more effective in changing corporations policies/practices than shareholders.
  • Laws to limit the power of shareholders should be avoided.
  • Need research to determine what leads to the development of a social conscience.

    Should a tax on international currency transactions (the 'Tobin tax') be supported as a means of controlling international speculation?

  • This was generally supported.
  • There is no one way of changing things; need a coordinated, multi-pronged approach

    How can trade unions and progressive social movements most effectively take advantage of the opportunities opened up by new global technologies?

  • Culture of unions needs to change.

    JOBS

    Is full employment possible?
  • Probably not - but 2% may be enough.
  • Need more accurate accounting of employment/unemployment.

    What are the best policies for job-creation and for the more equitable distribution of work?

  • Profit-sharing
  • Laws to regulate the maximum hours people can work
  • Breaking the power of consumerism/advertising which encourage 'over-working' in order to earn purchasing power.
  • Educating people as to the difference between wants and needs.
  • More security of tenure, so that workers are freer to raise difficult social issues.
  • Free education

    How can trade unions get out of defensive positions into more pro-active roles in shaping the future of work?

    INDUSTRIES

    What industries should be promoted as the basis for Australia's economic development?
  • Those that contribute in ways that are not exclusively economic - ie. need to recognise regional and community needs.
  • Industry should be required to contribute to the community - not just exploit it.
  • Industry needs incentives to develop/use ecologically sustainable practices.

    Are those which have been our traditional strengths, high technology industries, and/or 'environmentally-friendly' industries capable of generating 'green jobs'?

  • Possibly both - but decisions need to be based on a better system of national accounts (ie. re-defining 'production'), life cycle analysis and quality of life criteria. (The Rocky Mountains Institute has done some interesting work in this field.)
  • Governments are often in a better position than the market to make informed decisions about what to do (despite the rhetoric to the contrary).

    Could a new national investment scheme, drawing on workers' savings in superannuation funds, be an effective mechanism for boosting investment in these industries?

    What role should trade unions, environmentalists, consumers and other community groups play in the formulation and implementation of industry plans?

    Ensure that globalization/international competition does not lead to lowest common denominator conditions for workers in Australia.

    ECONOMIC INEQUALITY

    How can we reverse the processes by which income is redistributed from labour to capital? Is a new incomes policy necessary?
  • New incomes policy definitely needed - to tie incomes to living wage.
  • Should be a social safety net.
  • Need to understand why people work (not just dollars) and provide for those needs.

    What can be done - through urban planning, housing policy or local labour market policies, for example - to redress the increasing geographical polarisation of Australian society?

  • Government should create jobs (as it does now - eg Greencorp Program) - even creating those jobs which are not essential (eg.bus conductors, railway porters).
  • Get rid of Economic Zones etc.

    How should wages policy and welfare policies be interrelated in order to produce more equitable results?

  • Get rid of tax havens.
  • Change national system of accounting so that more work is paid for.
  • Expand not-for-profit sector and public sector.
  • Stop cosmetic community consultation and do it properly!

    TAXES

    What forms of tax on wealth and inheritance would be appropriate?
  • No inheritance tax.
  • Highly progressive tax schedule - ie. very high levels of tax on marginal income over, say, $150,000 p.a.
  • Greater equity between company and individual tax rates.
  • People should be able to nominate where their taxes are spent (eg. actual control over 10% of individual tax and preferential but not actual control over 100%)

    How can the tax system be made more consistent with environmental concerns? Could a 'carbon tax' be the solution?

  • Taxes on unsustainable business practices.

    How can tax avoidance and evasion be most effectively reduced?

  • Removal of tax havens, family trusts and other inappropriate tax minimisation schemes.

    What is the political process by which a more progressive reconsideration of tax reform could be generated?