Conflict between Democracy and the Free Market

From: Lee Corbin (lcorbin@tsoft.com)
Date: Tue Apr 15 2003 - 01:22:10 MDT

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    There is a new book that I hope some people on this list
    read, or are reading, that sheds a tremendous amount of
    light on the paradoxes of the current world political
    situation. The book is "World on Fire", by Amy Chua.
    The author, if anything, appears slightly more liberal
    than conservative, but certainly is not following any
    ideology. Probably not coincidentally, if I'm right
    about this book: because new paradigms of course don't
    fit prior preconceptions.

    The book's subtitle is "How Exporting Free Market
    Democracy Breeds Ethnic Hatred and Global Instability".
    The author is a professor at Yale Law School, has
    traveled extensively, and "lectures frequently on the
    effects of globalization to government, business, and
    academic groups around the world". She's also a native
    (of Chinese descent) of the Philippines, and in my opinion
    speaks much more freely about many topics than most of
    us in the West permit ourselves to. From her accounts,
    it's obvious that she's held innumerable discussions with
    people living in all these different developing nations.

    The first four chapters are fascinating alone for their
    descriptions of the conditions and politics in many
    countries around the world, from Southeast Asia to
    Latin America and Africa. She definitely has the
    touch of an anthropologist! I think that she does
    an outstanding job getting inside both the undeveloped
    countries, and the minds of their peoples around
    the world.

    The second four chapters concern "The Political
    Consequences of Globalization", and include the
    backlash and the counter-backlash to globalization's
    effects; together the first eight chapters lay the
    groundwork for the following introduction to the
    last four chapters of the book:

       The global spread of free market democracy has thus
       been a principal, aggravating cause of ethnic
       instability and violence throughout the non-Western
       world. In country after country outside the
       West---from Mandalay to Moscow, from Jakarta to
       Nairobi---laissez-fair markets have magnified the
       often astounding wealth and economic prominence of
       an "outsider" minority, generating great reservoirs
       of ethnic envy and resentment among the impoverished
       "indigenous" majority. In absolute terms the
       majority may actually be marginally better off as a
       result of markets---this was true, for example, of
       Indonesia and most of the Sounteast Asian countries
       in the 1980s and 1990s---but these small
       improvements are overwhelmed by the majority's
       continuing poverty and the hated minority's
       extraordinary economic success, invariably including
       their control of the "crown jewels" of the economy.

       Democracy, sadly, does not quell this resentment.
       On the contrary, democratization, by increasing the
       political voice and power of the "indigenous"
       majority, has fostered the emergence of demagogues
       ---like Zimbabwe's Mugabe, Serbia's Milosevic,
       Russia's Zyuganov, Bolivia's Great Condor, and
       Rwanda's Hutu Power leaders---who opportunistically
       whip up mass hatred against the resented minority,
       demanding that the country's wealth be returned to
       the "true owners of the nation." As a result, in
       its raw, for-export form, the pursuit of free market
       democracy outside the West has repeatedly led not to
       widespread peace and prosperity, but to ethnic
       confiscation, authoritarian backlash, and mass killing.

       What does al this have to do with the West? Is the
       non-Western world perhaps just hopeless---too
       divided, backward, and violent to sustain free
       market democracy? Perhaps the United States and the
       other Western nations should simply wash their hands
       of underdeveloped societies and their intractable,
       horrendous problems. In the end, what do
       market-dominant minorities and ethnonationalism have
       to do with us?

       Actually, they have everything to do with us. Or so
       this final part of the book will argue.

       The next four chapters will show that the explosive
       confrontation between a market-dominant minority and
       an aroused ethno-nationalist majority is by no means
       limited to the non-Western world. On the contrary,
       this confrontation lurks beneath some of the most
       violent, abominable episodes of Western history.
       Moreover, even today this explosive dynamic is not
       confined to individual developing countries. It is
       being played out at regional and global levels in
       ways that directly affect the Western nations,
       particularly the United States.

    I very much want to see this viewpoint criticized; also,
    even if she's exactly right, it's hardly clear what
    consequently the best course of action would be. (I've
    not gotten to what, if any recommendations she has yet.)

    Lee



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