Sunday, March 30, 2014

A Global Economy with Local Labor: A Problem for Christians to Consider


It’s a rather common misconception these days that “globalization” entails the dissolving of borders and the institution of a “new world order.”  Nevertheless, the events of this past half century certainly do exude signs of a coming globalized world order.  But, in what way will globalization ultimately take shape?  I’ll make the argument below that globalization is, more or less, of an economic nature—not nationalistic.  In other words, well-defined national borders are not going anywhere[1]; however, the movement of currency will likely continue to flow unimpeded.  

Globalization is Economic—Not Nationalistic

“The accelerated worldwide economic and cultural universalization that has marked the move to post-Fordist types of production since the early 1970s is said to be trampling the borders of the nation-sate and making sovereignty increasingly irrelevant.  In some ways this is true, but it is important to see that the nation-state has been one of the primary promoters of this process.  Globalization is, in part, the hyperextension of the triumph of the universal over the local, on which the nation-state is founded” (Cavanaugh, 39; emphasis added).

                In many respects, William T. Cavanaugh (whom I quote above) has the nature of globalization, and the nature of how many of us today perceive globalization, nailed down.  We, today, see the current state of the global economy, with its freedom from the impediment of nationalized divisions, and we assume that this trend is indicative of the collapse of well-defined borders.  This assumption is wrong, however—at least in part.  The economy is indeed globalizing, and the nation-state can do little to stop this process.  However, far from this scenario being a problem for the nation-state, the opposite is true.  In fact, the nation-state often supports the freedom of cash flow, and it willingly sacrifices portions of its sovereignty for the sake international globalization (Cavanaugh, 40). 

                What we see going on today is nothing more than the continuation and inevitable result of the co-development of capitalism with nationalism.  Both the nation-state and the capitalist economy have co-existed, and mutually benefited from their conjoined support for each other, ever since their simultaneous emergence in the 16th-17th centuries.  It is in the spirit of this mutualism that the nation-state now supports the globalized economy, and vice versa.  But how is this so?

“Capital is now more mobile than ever, and nation-states have very little power to contain the flow of money and information across their borders.  Corporations have become increasingly transnational, discarding loyalties to any particular locations or communities and moving to wherever cheap labor and unrestrictive environmental laws can be found” (Cavanaugh, 40.)

Don't worry.  I'm no conspiracy theorist.
It seems as though corporations and economic elites are the true benefactors of globalization.  Nevertheless, the nation-state yet remains in full support of globalizing efforts.  Why?  The reason is simple:  “Capital is free to move where it wants, but labor is not” (Cavanaugh, 40; emphasis added).   Corporations fully support the nation-state and its borders because these borders, though they do not restrict the flow of money, restrict the flow of workers.  “[N]ational legal systems remain as the major, or crucial, instantiation through which guarantees of contract and property rights are enforced” (Saskia Sassen qtd. in Cavanaugh, 41).  To this end, the nation-state, with its labor laws, citizens’ rights, etc., makes the global economy more profitable for corporations.  Think about it this way:  Why would a major corporation shut down its factories in the US and set up shop in Mexico or in China?  The answer is fairly straightforward.  Labor laws in the US are far less conducive to maximum profits than the labor laws elsewhere.  Therefore, in order to make more money, transnational corporations seek out and exploit sources of labor where worker's rights are few and far between.  
The continued existence of the nation-state makes the globalization of the economy more profitable.  Because money is unimpeded by borders, yet labor and labor rights remain constrained by borders, transnational corporations can easily take advantage of workers who live in countries where few, if any, civil and human rights exist.  Herein, therefore, lies the real danger of globalization:  not that some new tyrannical globalized international political power is arising, but that a self-interested and non-ethically restrained globalized international economy is arising, and has already arisen.  In continuation with the past trend of nationalism and capitalism being co-supportive, in the wake of this globalized capitalist economy, the nation-state, by its very nature, has done, does, and will do little to stop the free flow of money[2]—not that the political apparatus could do much to control the globalization of the economy anyway; especially at the present time, since nation-states have already given up so much of their sovereignty to international corporate interests.

What This Means for Us Christians

                All of this information could understandably seem completely trivial and academic to some readers, but I would argue that this information has very real and tangible implications for Christians.  First and foremost, I think, in light of globalization being economic, and not so much political, we ought to spend more time paying attention to the economic interests of transnational corporations than we do to the nationalist interests of states[3].  As things currently stand, many of these transnational corporations are the biggest drivers of slave labor and unjust labor practices.  Many might argue that the globalization of the economy, since it is not mirrored in its globalization by nationalistic political powers, serves as the leading cause of oppression in the world today.  If such is truly the case, Cavanaugh warns us that "looking to the nation-state to defend the common good against the often-brutal consequences of globalization does not appear promising” (41).  The nation-state is simply too self-interested[4].  The church catholic, I think, is the one institution that has the greatest ability to fight the oppressive forces of this non-restricted globalized economy[5].  The church itself is a transnational body, and, thus, that which is most capable of reaching out to and saving those taken advantage of by globalization.  Such is the case primarily because the church is, unlike the nation-state, not self-interested, but self-giving[6].

Practical Implications

                While I did not expect to go this route with my argument, perhaps what I’m about to propose is not that far off from a practical example of how we as American Christians might, at least in a rather small and superficial way, fight the globalized economy’s abuse of foreign labor.  I propose that we could consider only buying products or goods which have been fairly traded[7].  What I’m merely suggesting is that we start paying attention to what we buy, who we buy from, and whether injustice was in any way, shape, or form a part of the process by which product “X” got from point A to point B.  As Christians, it is our calling to look beyond our national interests toward the transnational mission for which God has set us apart.  Isn’t it ironic that we expend so much energy worrying about minor quibbles between Republicans and Democrats that we neglect to worry about the impact Nike has on child laborers in China?  If indeed what I suggest about the nature of globalization is true, then Nike, and other such corporate entities, are the real world powers with which we ought to demonstrate our greatest concern.

Source:
  • Cavanaugh, William T.  Migrations of the Holy:  God, State, and the Political Meaning of the Church.  Grand Rapids:  William B. Eerdmans Publishing Company, 2011.  Print.


[1] Though the nation-state will likely remain in place for quite some time to come, it may be that with the passage of time, and with the increasing influence of globalization on the market economy and our day-to-day lives, that a reshaping of the international political sphere may yet occur sometime in the future.

[2] Please be aware that I’m not trying to assert that a free-market economy is somehow intrinsically bad.  I think capitalism has great potential to do good in this world, but only if it can be restrained and guided by Christian ethics.

[3] We should, of course, not ignore nationalist interests.  Nation-states still play a very prominent role in international goings-on.  Take, for instance, the current state of affairs, as of this writing, between Russia and Ukraine.  This situation obviously has serious implications that highlight the prominence of nation-states in world events.

[4] It’s commonly asserted that the state exists to serve and protect the interests of the individual, a la John Locke and Thomas Hobbes.  Unlike the Lockian and Hobbesian models for whence the state derives its authority—that  being from the consent of the governed vis-à-vis a “social contract”—the reality is more complex and nuanced.  It’s safe to say, however, that the state derived its authority, both by force and by competition, prior to the a posteriori philosophical construct of the social compact between governments and governed as imagined by Hobbes and Locke.

[5] I don’t mean to refer here to Roman Catholicism, but to the universal church in general, sans denominational divisions.

[6] I would highly recommend reading Suffering by Arthur C. McGill, if you would like to learn more about what self-giving may actually entail for the Christian.

[7] Obviously we should do more than only buy fairly traded goods.  I’m only offering this as one, rather small example of what we can do.

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