Showing posts with label Globalization. Show all posts
Showing posts with label Globalization. Show all posts

Sunday, March 15, 2009

World Bank trying to do away with the NREGS

http://news.in.msn.com/business/article.aspx?cp-documentid=2061177

NREGA is a barrier to economic development: WB

New Delhi: The World Bank has described the much-acclaimed National Rural Employment Guarantee (NREGA) scheme of the UPA government as a policy barrier hurting economic development and poverty alleviation.

Various schemes of the Indian government like NREGA, watershed programmes and schemes for development of small and medium towns are acting as "policy barriers to internal mobility", the bank said in its 'World Development Report' 2009.

The internal mobility, the report argued, is necessary as "lifting people out of poverty requires shifting populations from villages to cities". The process of migration should be encouraged, the bank said.

"Negative attitudes held by (the) government and ignorance of the benefits of population mobility have caused migration to be overlooked as a force in economic development," it said.

The report said economic benefits of migration are not always recognised by policy makers and, in fact, two forms of policy have been attempted in India to counter migration.

"The first response has been to increase rural employment, in an attempt to stem movement out of rural areas ... These measures include the recently introduced National Rural Employment Guarantee Programme," it said.

The World Bank cited other programmes such as watershed development to improve agricultural productivity and development of small and medium towns, which the Indian government has taken up to reduce migration.

"The second policy response is implicit. Because of the perceived negative effects, local governments remain hostile toward migrants, while employers routinely disregard laws to protect their rights and needs," the report said.

In many cases, welfare policies and social services are designed for a sedentary population, the bank said.

"This is best exemplified by location-specific entitlements to social services, housing subsidies, food rations, and other public amenities especially important to working poor people," it said.

The report, which recommends concentration of production and mobility of people, said, "Current policies do not allow communities to fully capture the benefits of labour mobility."

Source: PTI

Thursday, May 8, 2008

Seeing Globalization From

http://www.countercurrents.org/gl-wise071106.htm

By Bob Wise

07 November, 2006
Countercurrents.org

I’d heard and read all about it, but a cruise to the far east let me see the other side of the global economy at first hand.

In China, Korea and Japan, we docked in vast container ports, amid mountains of containers, shifted by cranes that towered over our 16-deck cruise ship. Beyond each port were forests of high-rise offices and apartments, with construction in progress everywhere. Pusan is the third largest container port in the world and growing. Shanghai has twice as many skyscrapers as New York City, with many more going up.

At sea, off the China coast, it seemed that all the outbound freighters were heavy laden, riding low in the water, decks piled with containers bringing stock for Wal-Mart’s shelves. Inbound ships rode high, exposing broad swaths of red beneath their waterlines. (T-bills don’t weigh much.)

Here was the industry we would have seen in the northeast and around the great lakes half a century ago. It has migrated to the other side of the planet, while the US builds little more than houses and weapons. No point in resenting this- it’s the way of the world. But it’s fascinating to see in detail.

The streets of Shanghai and Beijing are jammed with cars, mostly new, though there are still plenty of bicycles and scooters. Major streets are lined with new high-rise buildings. The old Hutong neighborhoods behind them, already packed with multiple families to a home, are rapidly being torn down to make room for new construction.

Traveling with family, I often talked with my brother-in-law Bill, a die-casting engineer from Wisconsin. He has watched his client firms shrink and disappear all over the Midwest, edged out by cheap labor abroad, mostly from China. A few small shops survive as front offices in partnership with Chinese firms: they do the designs and specifications, order the castings from China, then do quality control on the product. Some of the business remains, but the manufacturing jobs are gone.

Chinese are aware that their wages are low. They joke that the happiest man in the world has an American salary, a Japanese wife, an English house and eats Chinese food. The unhappiest man in the world has an American wife, a Japanese house, eats English food and has a Chinese salary.

Though China has a few Wal-Marts, there are thousands of small shops in the cities. There must still be real wholesalers- wiped out long ago in the US by vertical integration. We noticed a lot of deliveries being made by cargo tricycles, three wheelers with a small pickup-like bed on the back.

On a shopping street in Shanghai, several cargo trikes stood idle along the street, one with a rider apparently waiting for an order. Just-in-time stocking seems to be practiced. Around lunch time, clerks can be seen carrying bowls and nibbling in between customers. We noticed meals being delivered on covered trays from nearby noodle shops.

I tried to ask our Beijing tourguide if the nation had plans for the future energy environment, when its export business would be severely trimmed by the high cost and scarcity of bunker oil. He didn’t seem to understand. After a bit of discussion, he answered that the value of Chinese exports would increase.

The infrastructure is already in place for low-energy transportation, in China, Japan and Korea alike: lots of trains, buses and trams, wide bike paths and sidewalks. Bikes and pedestrians seem to share the sidewalks congenially. We had some close shaves but were never hit by a bike.

But relocalization in China will have to have a vertical dimension. Most of the newer apartment buildings seemed to be twenty stories or higher. What happens when electricity for the elevator becomes prohibitively expensive? I wonder if human-powered elevators would work.

On the way home, I found I didn’t understand the International Date Line. We spent most of Sunday in Tokyo, flew out that evening, had a couple of hours of Monday over the Pacific and then crossed back into Sunday, this time spending the whole day in aircraft and airports. Happily, it was my wife’s birthday, so she got to celebrate it twice this year.

Bob Wise
(software engineer, MA in Geography)
bobwise32952@bellsouth.net
2215 Capeview St.
Merritt Island, FL 32952
321 449-8673

Migrants: Globalization’s Junk Mail?

http://www.countercurrents.org/gl-carlsen030307.htm

By Laura Carlsen

03 March, 2007


The titles that Immigrations and Customs Enforcement (ICE) attaches to its operations reveal a great deal about the logic behind current U.S. immigration policy.

Among the most suggestively titled is the ongoing Operation “Return to Sender,” one of the largest such operations in U.S. history. The program, supposedly designed to target “fugitive aliens,” has resulted in the indiscriminate round up of over 13,000 undocumented migrants in cities throughout the United States.

The cynical name given to this even more cynical operation implies a sender, a receiver -- and an object. The object, or rather objects, are migrant workers and their families.

Operation Return to Sender is an instrumentalist policy that ignores the humanity of migrant workers. It refuses to recognize that migrants have hopes and dreams, that they have a legitimate need to eat and think and act. It denies family ties and affective relationships. It also ignores the central role that undocumented workers play in the U.S. economy and the factors that brought them to the country in the first place.

In short, Operation Return to Sender acts on the premise that the millions of undocumented workers in the United States today are little more than globalization’s junk mail.

Who’s the Sender?

A large proportion of the detentions in Operation Return to Sender have been Mexicans, which is logical given that most undocumented migrants are Mexican. According to immigration expert Raúl Delgado Wise of the University of Zacatecas, Mexico is now the world champion in exporting its own people, with 11 million Mexicans currently residing in the United States. The migratory drain on Mexico’s population shows up in demographic statistics, where 800 townships now register negative growth.

The reason for this massive out-migration is clear. Mexico is not producing enough decent jobs for its people -- and the United States is hiring. Between 2000 and 2005, Mexico lost 900,000 rural jobs and 700,000 in industry. President Felipe Calderon got off to a bad start in his attempt to reverse this trend. Government statistics for the first two months of his administration showed a loss of 178,370 jobs in the formal sector. The future doesn’t look any rosier. A recent Bank of Mexico business survey projected 615,000 new jobs this year, representing a drop of 300,000 compared to last year and far short of the estimated one-million-plus jobs needed to absorb the number of Mexicans who enter the labor market every year.

Growing unemployment and massive labor outflow are the results of the lopsided way Mexico has integrated into the global economy. Raúl Delgado Wise puts it bluntly: “The strategy that Mexico followed through the North American Free Trade Agreement (NAFTA) and indiscriminate trade liberalization detonated an explosive growth in migration.”

The National Campesino Front estimates that two million farmers have been displaced since NAFTA, in many cases related to the increase in U.S. imports. In 1994, the first year of the agreement, the United States exported $4.59 billion of agricultural products to Mexico, according to the Department of Agriculture. By 2006 the figure had risen to $9.85 billion -- an increase of 114%. U.S. exports of corn, Mexico’s staple crop and largest source of rural employment, alone doubled to over $2.5 billion in 2006.

This combination of unemployment in Mexico, the huge gap between salaries in the United States and Mexico, and U.S. demand for cheap labor to compete on global markets has created the current situation. In other words, it’s the international labor market that writes the addresses and stamps the envelopes.

The Mexican government didn’t explicitly decide to send off these human missives to the United States. Despite the central place in the economy that remittances have gained over the years, no national policy aimed to export able-bodied citizens abroad. In fact, NAFTA was supposed to solve immigration problems and decrease the pressure to seek jobs in the United States.

The Mexican economy has, however, benefited from the predicament. Guillermo Ortiz, head of the central Bank of Mexico reported recently that 2006 remittances rose to an all-time high of $23.54 billion -- 20% over the previous year.

As the second source of foreign income after oil revenues, remittances have been a main factor in reducing extreme poverty in the countryside. While the World Bank, among others, cites NAFTA and the Mexican government’s poverty assistance programs for achieving that end, a 2005 report from the Bank of Mexico gives credit where credit’s due—poor families receive more assistance from remittances than from all government programs combined.

This contradiction has led critics to blame the Mexican government for fomenting out-migration because of its economic dependency on foreign income from migrants. Few Mexican politicians explicitly tout the role of remittances in countering severe imbalances in the national economy. Nevertheless, this reliance on remittances substitutes for any national development policies specifically aimed at generating employment and stimulating rural production.

Who Receives?

According to recent studies, most migrants to the United States already have a job offer before they get there, or at least strong connections to sources of employment. The average time between arrival and employment is very low, usually not more than a few weeks.

The demand for undocumented labor in the U.S. economy is structural. It’s not just a few companies seeking to cut corners. These are not just jobs that “U.S. workers won’t take.” Migrants work in nearly all low-paying occupations and have become essential to the U.S. economy in the age of global competition.

The meatpacking industry provides a good example. Eric Schlosser's excellent exposé of the U.S. meat industry as it went global shows a fast slide in working conditions over the past decades as a result of de-unionization, erosion of wages and benefits, and increasing safety and health hazards. Part and parcel of that slide has been the replacement of unionized U.S. workers with migrants.

The “blame the victim” logic accuses undocumented workers of crossing the border and stealing these jobs. But the order of events is demonstrably the opposite. The industry developed cost-cutting strategies to break up unions and seek out the cheapest, most vulnerable labor force possible. This created the demand for undocumented workers.

The example becomes relevant since the ICE just carried out one of its more spectacular (and controversial) raids on Swift meat-packing plants in six states, resulting in the arrest of 1,282 workers. Swift claims the action temporarily shut down 100% of its beef production and 77% of its pork production.

As David Bacon has pointed out, it’s no accident that the actions came against the Swift plants. Five of the six plants have unions. The company has complained bitterly that it was in negotiations and fully cooperating with the federal government when the raids took place.

Aside from traditional employment in agriculture, another major source of the use of migrant labor has been the advent of sub-contracting. This practice, well in place since the early 1980s, has contributed to the de-unionization of the workforce. It conveniently releases employees from direct responsibility for the legal status and treatment of workers in their employment.

The ICE reports that even the U.S. military employs illegal migrant labor. Last September the ICE arrested 122 Mexican and Central American workers hired by a sub-contractor to build military housing for the Buckley Air Force Base in Colorado. The ICE used the arrests to once again make the spurious link between immigration and terrorism. The press release on the operation notes, “ICE works closely with industries, such as airports, power plants, oil refineries, and military bases, to secure them from the risk of terrorist attacks posed by unauthorized workers employed in secure areas of our nation's critical infrastructure facilities.”

In the end, these selective crackdowns on workers will do nothing to eliminate underground hiring. Any attempt to more systematically eliminate undocumented workers from the workforce, rather than sending a clear signal to migrants as proponents claim, would have the even more disastrous effect of terrorizing entire communities and creating labor shortages in vital sectors of the economy.

Likewise, the guest worker programs supported by President Bush and the Mexican government fail to solve the root problem of a dual labor market. Divided between legal and illegal workers, this market takes advantage of the vulnerable status of undocumented workers. Under these systems, migrant workers still do not enjoy full labor and civil rights and are often subject to blacklisting if they exercise even their more limited rights--as seen in the experience under the existing temporary work visa programs now in existence in certain parts of the United States.

A More Rational Response

The ICE claims that Operation “Return to Sender” seeks to weed out those who have committed a crime. But its own records show that for the majority of detainees, the “crime” is working for low wages in U.S. factories, meat-packing plants, gardens, and homes without the papers that have been denied them.

In a weeklong series of raids in the Los Angeles area last January, the ICE detained 750 migrants. According to its own figures, less than 20% belonged to the target group of individuals with previous deportation orders. In raids across the country, ICE reports show that most of those captured have no previous criminal record.

Immigrant rights organizations have noted that the crackdown has led to serious human rights violations. Families are separated. Hearings are slow, and often families do not know for long periods of time where their loved ones are being held. A January 16 report from the Homeland Security Department’s Inspector General of conditions at five detention centers identified frequent violation of federal standards, overcrowding, and health and safety violations.

All this has provoked a response from pro-immigrant groups. Following the official “progress” report on Operation Return to Sender on Jan. 23, pro-immigrant groups denounced the raids, saying that the 13,000 arrests since May 2006 had led to separation of families, cost the United States an untold fortune in economic losses, and gets us no closer to reasonable and viable policies.

In the Los Angeles area the January detentions galvanized local groups and communities into concerted action, with strategy meetings to stop the raids. A nationwide mobilization for May Day 2007 is also in the works.

The revived efforts are good news. The movement had entered into a soul-searching period following the May 2006 mobilizations. The unprecedented force of the nationwide demonstrations had a centrifugal effect on mobilization organizers. Faced with an anti-immigrant backlash, they could not agree on next steps.

Slowly, however, local, regional, and national organizations are trying to pull together and develop new strategies. Local actions to defend immigrant rights, protest detentions, and counter racist vigilante groups are growing throughout the country, alongside Latino voter registration drives and for a new effort to reform immigration law.

The Security Illusion

In a visit to Mexico on February 16, Secretary of Homeland Security Michael Chertoff stated firmly that there could be no consideration of immigration reform until “the border is secured.” By so doing, he merely reiterated the formula that has deepened the crisis on the border and eroded binational relations.

This persistent refusal to take a more integrated and realistic approach has led to a policy dead-end that poses risks for communities on both sides of the border. Creating new immigration policies that rationally integrate the nation’s security, economic, social, and political realities is a huge challenge. But approaching that challenge by focusing exclusively on security exacerbates problems in the other areas and will ultimately fail to resolve the security issues.

The ICE reports it returned 190,000 migrants to sending nations in 2006. The massive expenditures, economic losses, and human tragedy produced no demonstrative progress on any front.

Migrant workers are central to cross-border economic integration. A political system that ignores them -- or worse, treats them as junk mail -- is not only hypocritical but severely out of touch with reality.

FPIF columnist Laura Carlsen is director of the IRC Americas Program in Mexico City, where she has worked as a writer and political analyst for the past two decades. The Americas Program is online at http://americas.irc-online.org/.

Sunday, January 20, 2008

The Economists' Dirty Little Secret

http://www.huffingtonpost.com/amitai-etzioni/the-economists-dirty-lit_b_81459.html

By Amitai Etzioni

Posted January 14, 2008 | 04:38 PM (EST)


My colleagues in economics (and many others, including quite a few liberal ones) tend to scoff at the majority of the public that is troubled by globalization. Never mind the false medications, poisoned toys, and pirated goods, you just don't understand -- these economists say -- free trade is good for you, me, and the man behind the tree. Economists are quick to argue that free trade reduces the costs to consumers and thus ensures an ever higher standard of living. Citizens of nations like the United States that are losing jobs to India and China (and scores of other nations) are told to not fret, that these are menial jobs, that off-shoring allows more Americans to specialize in high tech, well-paying, "clean" work. Often disregarded is that neither God nor anyone else set aside these choice jobs for Americans, and that Indians, Chinese, Finns, and Israelis -- among others -- can do these jobs too, and often for a fraction of what Americans charge. (One economist, Alan Blinder, suggests that hence Americans should specialize in those jobs that are hard to ship overseas -- cutting hair, policing the streets, and flipping hamburgers. How many such service jobs there are, and how well they pay, remains to be determined).

There is a dirty secret that economists carefully keep to themselves, especially when testifying before Congress, writing op-eds, or teaching economics to hundreds of thousands of impressionable college students year after year: namely -- that free trade has never been achieved by any nation, in any market, any time, any place! It exists only in the dreamland of economists, in their mathematical models. Furthermore, all the goodies promised by free trade (trade without any barriers) are often simply not available when one moves merely from more to less managed trade, which is all that one can do. (For a short and relatively accessible early discussion of this point, see R. G. Lipsey and Kelvin Lancaster's "The General Theory of Second Best").

True free trade is as elusive as the horizon for numerous reasons. Most important are the moral and social values that we cherish. Thus, no one in his right mind (and even many who are not) would bring back trade in people (i.e. slavery), a limitation that hampers the free market. Civilized societies will not and should not tolerate child labor nor the rape of the environment, should provide basic safety for workers and consumers, and so on. Security requires that we limit the trade in nuclear reactors, uranium, missiles and several kinds of computers.

Some economists would do away with the protection of copyrights, to allow for free trade in intellectual properties. However, those who understand that large investments must be made to come up with a new drug or a new communication technology (and numerous other innovations), understand that those who make these investments must be rewarded for the risks they undertake and cannot be allowed to be robbed in the name of free trade. The same business people who vote for politicians who promote free trade are the first to object to what they call "unfair" or "cut-throat" competition-- for instance, when someone opens a shop nearby which peddles the same goods as theirs.

All these limits on free trade have one common element: they hinder the "efficient" allocation of resources that true free trade requires.

True, there are some silly, unnecessary regulations. The French slowed down (for a while) the importation of video players by insisting that they all must be examined by a single customs office, located somewhere on top of a mountain along the Spanish border. American economists love to point to a particular couple of regulations: one requires machines that overheat to sound a bell; the other, that those who work with the same machine must wear heavy duty ear mufflers to block out noise.

We need an honest debate about trade which disregards the illusion of free trade. Instead we should ask: which regulations make sense? Should trade be a bit less or a bit more managed? Such a debate would best be conducted regarding one area at a time: stronger regulation of imported drugs? You bet. More scrutiny of imported toys? For sure. Penalties for those who pirate our products? Essential. But limiting imports to protect managements who refuse to adjust to changing technologies and economic needs (our car makers)? Probably not. Nor should we block fair competition from nations that abide by the environmental and labor standards of a decent society, say European airlines. But, we should reject the calls to choose between free and managed trade, because in effect these are calls to give up the benefits some regulation of trade provides -- in the name of a promised land that does not exist and can not be brought about.

Some of the presidential candidates have raised this issue. One does not necessarily have to vote for these candidates, as they may fall short on other fronts. But they should not be dumped upon because they refuse to worship at the altar of a false god: the economists' free trade illusion.

****

Micro-blog: The libertarian Economist is upset because Texas is introducing a "pole" tax on the customers of strip clubs. The Economist fears that some people will not be able or willing to "pony up the five measly dollars," a possibility which the magazine finds "depressing." Some of us find this problem rather low on the totem pole of depressing developments.

Amitai Etzioni is a University Professor at George Washington University and the author of The Moral Dimension: Toward a New Economics.

The unwinnable war

http://www.eurozine.com/articles/article_2006-12-13-bauman-en.html


ByLukasz Galecki


An interview with Zygmunt Bauman

Instead of meeting the state's obligation to protect its citizens, governments throughout the West are calling for more flexibility in areas of life regulated by market forces. One consequence of the retreat of the state is a crisis of legitimacy, which states seek to regain through their response to terrorism. In the Middle East, meanwhile, a gulf has developed between an elite that has profited from Westernization and the impoverished masses. It is the latter who, in the name of religion, are lured into anti-Western extremism, thus perpetuating the vicious circle of insecurity.

Lukasz Galecki: How do you define the borders of globalization?

Zygmunt Bauman: Globalization is not a process taking place somewhere far away in some exotic place. Globalization is taking place in Leeds as well as in Warsaw, in New York, and any small town in Poland. It is just outside your window, but inside as well. It is enough to walk down the street to see it. Global and local spaces can be separated only as an abstraction, in reality they are intertwined. The main trouble is that the globalization we are dealing with today is strictly negative. It is based on the breaking down of barriers, allowing for the globalization of capital, the movement of goods, information, crime, and terrorism, but not of the political and judicial institutions whose basis is national sovereignty. This negative aspect of globalization has not been followed by the positive aspect, and the instruments of regulation over economic and social processes are not established enough to deal with the reach and consequences of globalization.

LG: Are there any historical precedents for this situation?

ZB: Two hundred years ago our ancestors were frightened by the naked chaos which could not be tamed by the modest powers of the local communities such as village, parish, and small town. The big spaces of action that, in those days, were about to build nations must have seemed as frightening and open to ambush as the forces of globalization are to today's nation-states. Our ancestors were capable of building the instruments of political representation and the legislative and judicial means to manage chaos, to coordinate rules and procedures in order to tame this chaos, to make it relatively transparent and more or less predictable. The pioneers of the modern world were hoping that societies, ruled by reason and moved by its technical means, would prove to be more predictable and manageable than a world subject merely to the whims of, say, natural disaster. This dream turned out to be illusion, and now in a post-modern world we are facing the situation we once faced in the early nineteenth century in England, where local communities lost control over the forces of economic development at a time when only local communities had the means, though meagre, to govern such forces. This industrializing world, spiralling out of local control, found itself in a no-man's land very similar to today's global space where success is determined by naked power, cleverness, and unscrupulousness, and where the forces attempting to reign in these developments are clearly insufficient.

LG: How much time passed before these forces were tamed?

ZB: It took the whole nineteenth century and a good part of the twentieth century before the modern state could manage this new reality. The modern state would have to establish rules and regulations dealing with issues that previous authorities did not have to face, such as child labour laws, banning the slave trade, regulating the work week, providing potable water and adequate sanitation, and basic medical care. Generally speaking, it was about repairing the damage created by the unleashed forces of chaos. A hundred years were needed so that the negative aspects of this earlier globalization could be balanced by the positive, at least in the context of a single nation. In today's world, the possibilities for collective action run far behind what is required, although almost everyone agrees that at least something needs to be done. Globalization has been going on for a long time, but recent events, in a spectacular and shocking fashion, have made us keenly aware of the things that, previously, were latent and easily overlooked. The means at our disposal to protect the rule of law and defend citizens are clearly insufficient to tame these global forces, which in their essence are extra-territorial. The events of 9/11 and the more recent attacks in Madrid and London have made clear that the traditional means of securing and maintaining respect for law and order, crudely stated, are worthless. It surprised us. All of us.

LG: Don't you think, in view of events in Iraq, that in treating a patient with a light flu, we have instead decided for a major operation cutting out the liver, a kidney, and half the brain?

ZB: Yes. However, we must consider why it is happening. Misfortunes produced by people in the course of negative globalization still happen like natural catastrophes; nobody knows when they are coming, and where they come from. As if we were walking through a minefield. It is known that an explosion will occur, although nobody knows when and where. There is a strong temptation to just bomb this minefield, to destroy the mines before they can go off. It is particularly tempting if you possess an unlimited amount of bombs and hardly any other means to handle the problem. It is so basically different from the picture of the future world designed at the beginning of the modern era. Enlightenment philosophers dreamed of an orderly world obedient to human will, mild and hospitable. And humans were to realize these dreams on their own, not being forced to rely on the wisdom of divine creation. They had just experienced the shock of the Lisbon earthquake (1755) and subsequent fire and tsunami, which came so suddenly and wreaked such havoc on both the righteous and unrighteous. Jean-Jacques Rousseau blamed civilization for this natural catastrophe. He said if people lived in accordance with nature, if they were not living in over-crowded cities, were not building the tallest buildings and, rather than trying to save their personal possessions, were saving themselves from fire and flood, then there would not have been so many victims. On the other hand, Voltaire disregarded the "natural state"; he had more faith in the intentions and actions of people. If people acted reasonably enough, they would create a civilized society in which people could feel safe. Both thinkers, though on most issues in constant opposition, trusted humans. In this sense, both miscalculated.

LG: So, the beginning of modernity is a fear of the unknown?

ZB: The very project of modernity is born out of the desire for a world without surprises, a safe world, a world without fear. The crowning of this two-hundred-year effort, and the achievement of the project-ambition-dream, was the social state, which has always been falsely named the welfare state. The whole project was not about welfare so much as it was about a society taking responsibility for each citizen, offering him or her a life free of fear and full of dignity and meaning. It was a concept of a collective insurance policy against the consequences of individual misfortune. If an individual experienced misfortune, society would be there to help him or her, and the redistribution of resources was a means, not an end. The whole concept is based on an idea that only citizens who feel secure can stand on their own two feet. William Beveridge, who designed the British version of the social state, was a Liberal and not a socialist, and considered the concept of the social state as the realization of the liberal idea.

LG: Does that mean that the social state, after so many decades, managed to achieve the liberal goal of self-determination?

ZB: That was how it was intended to be. There is no individual self-determination without social solidarity. Freedom does not suffice unless there is a guarantee that everyone has means and equal opportunity to utilize them. If the individual has to walk a tightrope, there must a safety net to catch him or her when they fall. The people were told, we will give you security against overwhelming risk, we will protect you against the consequences of unemployment, against being an invalid, against sickness, against poverty in old age. So have no fear, people. Be brave. Exert yourself. And so the negative globalization has made it almost impossible to find a reasonable balance for human obligations within the framework of the nation-state. It strikes a blow at this concept of human coexistence. If you look around the world – perhaps with the exception of the Scandinavian states – this concept of the social state is in retreat, we are told we cannot afford it. So instead of securing this obligation made by the state about the protection against insecurity and the fear resulting from it, governments are calling for more flexibility in the labour market and in all other areas of life regulated by market forces. And this means even more insecurity. What they are calling for is not a decrease of risk, but an increase. One of the consequences of the retreat of state obligations is a crisis in legitimacy of state authority. This authority required obedience, discipline, and respect for the law, promising citizens security and a dignified life. But these promises are being dropped one by one, including free education, basic medical care, old-age pensions, and basic unemployment benefits. The state has its hands tied; it itself is being delivered into the hands of market forces. If it dares to oppose market forces, then capital will flow to a place where it can easily and comfortably grow. And then a nation will face a plague of unemployment and poverty. Capital can be moved with the push of a button. The question is: what can replace the earlier, traditional foundations of state legitimacy? What is to be the source of citizen trust? It is sad, but the most terrible consequences of this negative globalization (e.g., 9/11) have helped state authorities find a new foundation for their own legitimacy.

LG: Does it have anything to do with the question of individual security?

ZB: One can remove the notion of security from the existential domain – which is your trust in the future, trust in your own means and assets, in your social position, certainty of your family's and your own well-being – down to the sphere of individual safety: your body and your possessions and your home and neighbourhood.

LG: Is the traditional nation-state fighting a losing battle against globalization?

ZB: In this battle we are dealing with two processes taking place simultaneously. On the one hand, we are trying to tame this new element called globalization, whose powers are beyond what any state can control. The instruments we have at our disposal are too weak to resist the forces opposing it. On the other hand, there is the desperate search for an ersatz political formula, an ersatz legitimacy, which could be used despite the fact that state powers have been reduced. It is about finding a sphere in which the state can show it is able to do something, to show its citizens that it is not just sitting on its hands. More and more often we can see very spectacular scenes on our TV screens, such as: An invasion of Special Forces, tanks sitting at airports, police cordoning off train stations and subways. This is the lesson the state is trying to teach us: we are on top of the matter. And now try to think – says the state – how things would be if we were not. Of course, things are bad, but they could be worse were we not doing our job.

LG: Beyond the global perspective and the perspective of the nation-state, there is still a perspective of the individual human psyche. How, within this framework, does the tension between freedom and security manifest itself?

ZB: In today's world people have many reasons to fear. On the one hand, we can easily create a catalogue of risks which a young person faces today. But on the other hand, it is impossible to complete this catalogue because the real causes of fear are dispersed and unclear and very difficult to define, which makes them even more threatening. A young person who has spent many years getting an education and building professional skills could become worthless on the market because the job he or she was hoping to get when starting his or her studies was transferred to Cambodia. Also, his or her private life is torn to pieces because his or her life partner has found greener pastures. We could list thousands and thousands of these liquid elements in today's reality which threaten to sink you. They all cause some kind of general angst, all the more so because the map of this fear is faded and unclear. The more unclear and indefinite this fear, the more desperate is the search for concrete objects or persons who can be blamed for your diffuse fears. The goal of personal safety is perfectly suitable as one object. It is known who is guilty, what to do, and most importantly – that there is, in fact, something one can do.

LG: That means it quickly becomes clear what a citizen has to do...

ZB: The big advantage of transferring this general level of existential uncertainty to the more concrete level of personal safety is that, then, one finally recognizes what to do. I can put better locks on my doors, or a monitoring system around my house, sensors that recognize every stranger who approaches. After every assassination, every bomb, every act of terror, new tasks emerge. People find some goals and a concrete occupation on which they can focus. It gives them a sense of participation in an important and useful endeavour. I cannot prevent my company, who gave me my occupation and my family the means of existence, from moving to Bangalore, but when I see a suspicious person overdressed in a thick coat or carrying a suspicious package, I can go to the next policeman, or at least point that suspicious person out. When I get on a bus and see someone with olive skin digging in his bag, I can go and alarm the bus driver. I am no longer helpless. The costs of this are quite high, because the civil liberties that citizens have enjoyed ever since the Magna Carta have been suspended. Step by step the landscape of freedoms and liberties is being dismantled, which has been the source of so much pride for the British people. Recent research shows that 73 per cent of British respondents think this is a price worth paying in this dark game.

LG: So, limiting civil liberties is not so unpopular. Maybe the queen's subjects are not looking for protection against state powers, but rather expect to be protected by the state.

ZB: Every coin has two sides. The fact that you can communicate via the Internet with someone based in New Zealand and discuss the details of some sort of project also has its dark side. Not only terrorist activities, but virtually every criminal activity could be based on this global net. In this context, a monopoly on the use of force, which according to Max Weber formed the basis of the modern state, ceased to exist long ago. It has become very clear that this monopoly, which the nation-state has long claimed for itself, was designed to fit into the framework of territorial battles and wars. It was about gaining certain territory, and installing your military forces there, subjecting that gained territory to your own administration and preventing others from taking it away. In the past, sovereignty and authority were defined territorially. And the state-run military force was a sort of guarantee for this order. Today's terrorism, being a phenomenon of the era of globalization, is by definition extra-territorial, and it thus eludes such a definition. The most powerful armed forces of all time, using the most sophisticated technical equipment and having at its disposal the greatest budget in history, is helpless against the individual using pocket weapons weighing a pound. This is a very peculiar military force, which has no headquarters, no military base, no barracks to be bombed. This military force appears from nowhere and then disappears into thin air. Its organizational structures are of only theoretical importance. You could easily use the metaphor of a swarm of bees. There is no commander, there are no orders, there are no sergeants or corporals, and for some reason so many separate individuals are following the same path, even moving in a similar way. In the Middle Ages there was an image of the enemy as a mirror copy of ourselves. The Antichrist also had its apostles, though perhaps thirteen instead of twelve, and its hierarchy of devils were seen as anti-angels... If Al-Qaeda really exists, it is as a global, extremely Manichean conception of the world with a wide array of potential disciples. The Manichean vision – consisting of two separate worlds in which the "other" half is ruled by Satan and "our" half is the one where good and truth reign – is by no means an invention of Islamic fundamentalism.

LG: The war against the West has been going on in the name of the Russian soul, the Germanic race, Communism, and now in the name of Islam. But Occidentalism, as an ideology of hate against the West – and when based on religious grounds – turns into a holy war against an absolute evil. In this holy war, true believers must destroy the false god of Western materialism with all the powers and means they have at their disposal. Can such a war be won?

ZB: Which came first, the chicken or the egg? Much more than a politicizing of religion (regardless if it is Muslim or any other), we are facing the "religionizing" of politics, in which the normal conflict of group interests is regarded as an eschatological matter, and the confrontation of these interests is given an apocalyptic character. It is a longing for certain things in an unstable world. It is an escape from extremely complicated problems we cannot even name. It is a longing for the "great simplification". It is nostalgia for a lost, simple world and the simple array of tasks within this world. In this general cacophony – in which serious debate about the state of affairs almost never takes place, and in which television shows have actors in front of the footlights shouting slogans at one another and using "word-bites" against one another – one needs some kind of certainty. One needs a simple division between good and evil, in which our hearts are immaculate, and the evildoers are condemned, with no hope of redemption. Let's remember that Islam has no monopoly on this vision. If we look at Palestinian and Israeli radicals, they both, amazingly, use the same sort of vocabulary. Both the Palestinian and Israeli sides present the conflict as a final clash between Jehovah and Mohammed and not between Palestinians and Israeli settlers. We see a quite similar kind of vocabulary when we analyze the news coverage of the last American elections, although the gods being worshiped had different names. But one must admit that in this vast current of today's Manichaeism, Islam has occupied a very important position, and this is for geopolitical reasons.

LG: Is geopolitics a servant of religion, or is it the other way around?

ZB: Let's start from the very beginning. The Islamic world is sitting on oil. It is quite obvious that energy resources will play a key role in shaping the new geopolitical order of the twenty-first century. And the resources available in the Middle East are the only ones that could be operational by the middle of this century. I will not be able to witness it, but you will be able to see it with your own two eyes, and then you will find that, unfortunately, I was right. The economies of the great powers of the world, and particularly the largest economy, are based on cheap fuel. The situation becomes more serious when we consider that China as well as India are both about to motorize their billions of inhabitants. Imagine a world in which every Chinese and Indian family decides to buy a car and fill it up with fuel. Whoever has control of the world's oil resources will be able to dictate global conditions. The world of big business is perfectly aware of this fact. But obviously, people living in the oil producing regions whose fate is dependent on these resources are also fully aware of this. So, there's nothing amazing about the fact that America is trying to gain a major influence over that region. The story starts just after the Second World War, from the CIA plot against Mossadegh, who was brave enough to nationalize Iranian oil resources. After that, quite nasty authoritarian regimes obedient to the Americans were installed in the region, and often they used religious fundamentalism to legitimize their authority. There was not the slightest chance for any civil liberties and, even less, for democracy. The most prominent examples of this are Saudi Arabia and Kuwait. The Arab elites are perfectly aware of the fact that sitting on oil allows them to control the West, and although the West has this enormous economic and military advantage, they can always think up new ways to raise the stakes. We face, on the one hand, this elite, who is gradually gaining self confidence or even becoming insolent, and on the other hand the impoverished masses, who have not profited from this distorted process of Westernization, and who have already lost their sense of security. All these factors put together are a truly explosive mixture. Well, let's try to remember our own prophets of terror, for example Bakunin and [Siergiej] Nieczajew and the devils invented by Dostoevsky. They shared the same fertile ground, where the frustrated and disillusioned intelligentsia meets the impoverished and humiliated masses. Such people – who in fact have no chance for a life of dignity – are easily convinced they also have a chance to make a mark on the world. The American-Israeli Satan will not allow you to have this life of dignity, but you can die in dignity and make your mark in this world by wounding Satan. It is a very cynical concept to misuse a religion for the realization of goals which, in fact, have nothing in common with religion whatsoever.

LG: Is this just yet another example of religious propaganda, or is it a concept for political action?

ZB: It is just an ideology. But the crucial difference from the political ideology produced in intellectual salons is that its aim is not to inspire the masses to think, but to take action – the murdering of the unfaithful through a suicide of the faithful. As with every ideology, it channels the emotions. It also simplifies the vision of the world and narrows choices, and in any case the recipients of this ideology are candidates for a suicidal death. I am not quite sure if Bin Laden uses exactly the same phrasing with his closest collaborators, or applies the same vulgarized schema of conflict, but the world is full of this sort of thing. The teachers of future suicide bombers are intellectuals. They are people who, according to our own criteria, are well-educated and have earned degrees, frequently magna cum laude and quite often from the most elite Western institutions. In our disorganized world, the struggle currently taking place is not about the shape of the future world order, but rather about who is going to decide this shape. And each side of this dispute is using all the resources at its disposal. America is using all its military power and economic might. Islam has its own trump card, which is going to be decisive in this dispute. It is the fact that in more or less thirty years – maybe even sooner considering stock exchange madness – it will become evident that there is nothing more precious, and at the same time essential, for the maintenance of civilization than oil.

LG: Do you think that terrorism counts on Western weakness?

ZB: If terrorists' goal is to sow the seeds of doubt in Western societies about their own power, or to spread panic, or to incapacitate Western societies, the terrorists can count on help from big television broadcasters, who tirelessly spread the pictures of horror. They also know that the state's prevention measures create an atmosphere of constant oppressiveness and propagate the notion of a besieged fortress, of the enemy being at the gates. We are facing a situation where every person with a rucksack or any driver of a minivan could be a murderer in disguise. Secondly we discover that the monitoring powers of the state are growing. Two or three people with very primitive devices can produce an amazingly paralyzing effect. The world is full of such explosive material. On the other hand, the military powers of the West find themselves in quite the opposite situation; even billions of dollars and countless victims cannot wreak such havoc. One can say that while the anti-terrorist coalition will have to use an axe for shaving, the terrorists can use a razor blade to chop down a forest. This war is unwinnable.

LG: The range of activities the state can undertake in the name of security actually has no limits. Can this escalation of arms be stopped?

ZB: This is a process with its own momentum which will not stop without intervention by us. Both sides are inflaming the atmosphere of confrontation. We have to become reasonable, and understand that typhus cannot be treated with a rash cream. Without getting at the root causes, nothing can be done.

LG: So how were they able to end the terrorism in Northern Ireland?

ZB: The end of the terrorism in Northern Ireland was an effect of the economic miracle in the neighbouring republic. It was partly a matter of utter exhaustion. A life of constant danger – under the threat of gunfire and the thunder of bombs – became, in the end, unbearable. When the people of Northern Ireland crossed the border down to the Irish Republic, they saw people enjoying life, enriching themselves, drinking in pubs and thinking more about their next dinner than about oiling their gun barrels. They looked around, became jealous, and the message spread. One cannot exclude the possibility that, in the long run, the epic of terrorism we are now going through will end in this way. It will not happen, however, through the desperate and irregular – and thus ineffective – application of military and police methods. Agreements on debt relief and sustainable development for the poorest have contributed more to the cause of fighting terrorism than the American invasion of Iraq.