Coping with Globalisation and Market Forces

The paper dealt with five major issues: globalisation, jobs, industries, economic inequality and taxes.

In the available time, it was only possible to discuss the first two, the remaining three were discussed at the meeting on March 12. The responses to the questions were recorded from a number of individuals present and not all points represent a consensus view of the Northside Greens, although most do.

1. Globalisation
It was noted that more and more organisations are being driven by economic rationalism, which always puts profits before other factors such as social justice, safety, the environment etc. Privatisation is pursued as a way by which governments can abrogate their service-providing responsibilities and also obtain large one-off windfall injections into their budgets at the cost of giving up future income.

National policies are being decided more and more by unelected global corporate bodies such as the IMF and the WTO; by multinational corporations and by market forces. The democratic rights of citizens, workers and indigenous peoples are being downtrodden in a tidal wave of global economic rationalism. The two major political parties are both controlled by global business. Inequalities of wealth are increasing; both between people in each country and between countries.

How can we best respond to the globalisation of capital?
Internationalise the unions, NGOs and those community organisations dedicated to the rights of peoples and the environment - globalisation can only be fought by international solidarity.

We need more regulation, not less. We should protest against international companies that violate human rights and mount moral pressure against any large pension funds that invest in them. We should counter the doctrine, frequently enunciated by John Howard, that globalisation is “inevitable”; it is not and countries can survive perfectly well with national policies that counter it. We have to change the way people worship “growth” - growth is not necessarily desirable.

Can a regime of free trade be replaced by policies to promote ‘fair trade’?
Yes - Australia must have greater control over its finances by using tariffs and quotas - free trade is not necessarily fair trade. The effects of retaliatory action by other countries will be offset by the benefits obtained by the tariffs (more local industry, fewer imports and therefore healthier balance of trade and national debt).

Should a tax on international currency transactions (the ‘Tobin Tax’) be supported as a means of controlling international speculation?
Yes - a 0.01% tax on speculative amounts would produce a huge income given the colossal amounts speculated (on average $40 billion is speculated on the Australian dollar every day). We should unfloat the A$ and give the power to set exchange rates for the A$ back to the government.

How can trade unions and progressive social movements most effectively take advantage of the opportunities opened up by new global technologies?
Use the internet etc to communicate internationally with like-minded organisations and to mobilise protests on an international scale. Broadcast facts and figures that shame and embarras companies and governments that trample on human rights or the environment.

2. Jobs
It was noted that government employment statistics are misleading because anyone who spends as little as an hour a week working is not considered unemployed. The real unemployment is about 10% in Australia. Unemployment and casualisation are causing a social security financial burden and unfair social stigma is attached to the victim.

Less dependency on primary industry and imported products; encouragement of environmentally-friendly forms of agriculture and energy production, industries such as eco-tourism, IT and other technologies similarly ecologically sound, that labour-intensive and create work in rural areas.

Workers’ manufacturing base and processing of raw materials once again in Australia. Re-emergence of co-operatives and mutualities.

Other more socially-informative measuring instruments than GDP. Public ownership of essentials such as health, utilities etc. Guaranteed adequate income.

Is full employment possible?
With policy changes it should be possible to provide full employment for all those able and willing to work (and to relocate within reason).

What are the best policies for job creation and for the more equitable distribution of work?
Taxes should be introduced that tax overtime and not jobs. Restructure the current payroll tax so as to encourage a reduction of average working hours and encourage employers to take on more staff rather than pay more overtime. Average working hours were reduced to 40 hours per week by 1945; no further reduction has been achieved since then despite much higher productivity per worker. Reverse the trend over the last decade for net executive incomes to increase at a higher rate than net income of lower paid workers by more progressive income tax policies and more aggressive fringe benefits taxes.

How can trade unions get out of defensive positions into more pro-active roles in shaping the future of work?
Unions must become more pro-active (a better word than ‘militant’). Solidarity of workers within unions and between unions is increasingly important. Unions should disaffiliate from political parties from which they receive no benefit. There should be greater grassroots democracy. Unions should be reshaped somewhat (modernised); possibly corporatised (needs investigation).

3. Industries
National Investment Scheme, drawing on super - YES! Publicly run with profits ploughed in. Philosophy of management critical re social and environmental impact.

Could be used to reduce disparity of income.

Industry Plans - Community education; how to affect planning, as citizens and consumers. More openness, in cabinet and boardroom.

Public ownership.

4. Economic Inequality
New incomes policy - Yes! (Assuming one exists now …) Revitalise award system. Community education as to the damage to society of disparity and the benefits of egality; challenging the “culture of greed” that impels economic vocational choice.

Shared responsibility within workplaces for more equity - internal redistribution. Law limiting earnings. Relate minimum to maximum. Tax overtime, to reverse process where fewer and fewer people work longer and longer hours.

Replace GST with more intelligent sales tax.

Geographical polarisation

Urban planning and housing policies - YES.

Local labour markets - YES.

Better public transport. Guaranteed minimum income.

Taxes
Need to change public perception as taxation = theft, to taxation = provider of social wages. We get it back.

Increase tax revenue base to fund infrastructure. Thus, wealth tax, capital gains, family trusts, Tobin, death duties, dividend imputations and so on.

Benefits / penalties relating to ecological impact. Carbon tax - YES, in tandem with rising ecological standards.

Global corporations must be curbed, to return more of their profits to the government.