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Democratizing the Global Economy the Role of Civil Society

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Democratizing the Global Economy the Role of Civil Society DEMOCRATIZING THE GLOBAL ECONOMY THE ROLE OF CIVIL SOCIETY 1 Issued June 2004 by the Centre for the Study of Globalisation and Regionalisation University of Warwick Coventry CV4 7AL, UK Tel. ++44-24-7657 2533 Fax ++44-24-7657 2548 [email protected] ISBN 0 902683 56 X (English original) ISBN 0 902683 58 6 (Arabic translation by Ola Abou Zeid) ISBN 0 902683 59 4 (French translation by Marc Mousli) ISBN 0 902683 60 8 (Portuguese translation by Sergio Flaksmana and Renato Aguiar) ISBN 0 902683 61 6 (Russian translation by Liliana Proskuryakova) ISBN 0 902683 62 4 (Spanish translation by Rosalba Icaza Garza with Marcelo Saguier) ISBN 0 902683 63 2 (Thai translation by Suntaree Kiatiprajuk) This report was prepared by Jan Aart Scholte of CSGR ([email protected]), with extensive and much-appreciated collaboration from: Ola Abou Zeid, Cairo University ([email protected]) Flávia Braga, Federal University of Rio de Janeiro ([email protected]) Christian Chavagneux, Alternatives Economiques, Paris ([email protected]) Zie Gariyo, Uganda Debt Network, Kampala ([email protected]) Elena Kochkina, Open Society Institute-Russia, Moscow ([email protected]) Kanokrat Lertchoosakul, Chulalongkorn University, Bangkok ([email protected]) Liliana Proskuryakova, Europe and Central Asia Region NGO Working Group on the World Bank, St Petersburg ([email protected]) Gauri Sreenivasan, Canadian Council for International Co-operation, Ottawa ([email protected]) Naruemon Thabchumpon, Chulalongkorn University, Bangkok ([email protected] or [email protected]) Carlos Vainer, Federal University of Rio de Janeiro ([email protected]) Sincere thanks also go to the several hundred civil society practitioners (listed in Appendix 3) who have contributed a wealth of ideas and experiences to this project. These individuals bear no responsibility for the views presented here, but the report could not have been made without their extensive inputs. Generous funding for the project has come from the Governance and Civil Society Program at the Ford Foundation. 2 DEMOCRATIZING THE GLOBAL ECONOMY THE ROLE OF CIVIL SOCIETY Contents Summary 4 Methodology 7 1. Definitions 9 2. Democratic Deficits in the Contemporary Global Economy 18 3. Civil Society Contributions to a More Democratic Global Economy 38 4. Realizing the Potentials: Environmental Influences 51 5. Realizing the Potentials: Internal Practices 67 6. Critical Issues for Future Action 100 Appendix 1: List of Abbreviations 103 Appendix 2: Further Reading 104 Appendix 3: Contributing Individuals and Associations 105 3 Summary How can economic globalization be Economic globalization is a process, especially democracy should be practiced in the global democratized? Global communications, global pronounced in recent decades, whereby much economy, but the principle is a cornerstone of finance, global investment, global migration and production, exchange and consumption of human dignity and social justice. global trade are becoming ever more important in resources comes to transpire in a transworld contemporary society. Yet the rules and context. This is not to say that local, national and Democracy is plainly lacking in present regulations that govern these transworld regional economies have become irrelevant; governance of the global economy. The problems activities currently have precarious democratic however, an additional, global arena of relate to ignorance, institutional arrangements credentials at best. How can civil society communications, finance, investment, migration and deeper social structures. Regarding improve this situation? and trade has also become significant. Hence the ignorance, most people today are at best only policy choices that we make about economic vaguely aware of economic globalization and the This report addresses this question in six steps. globalization have major repercussions for the ways that it is governed. Regarding institutions, Part 1 defines the key concepts involved: shape of future society. none of the various types of agencies that ‘economic globalization’, ‘governance’, currently regulate economic globalization – ‘democracy’, and ‘civil society’. Part 2 explores The expanding global economy is governed, states, suprastate bodies, substate organizations, the nature of democratic deficits in today’s albeit in quite complex ways. Rules and and private mechanisms – has had anything global economy. Part 3 indicates the principal procedures to regulate global trade, migration, approaching a good democratic record. ways that civil society associations can counter investment, finance and communications come Regarding social structures, deeply entrenched these democratic deficits. Part 4 identifies from many places: state organs at the national hierarchies in world politics between states, conditions in wider society that help or hinder level; suprastate institutions at regional and classes, cultures, sexes, races and more have civil society efforts to promote a more global levels; substate bodies at local and meant that governance of the global economy has democratic course of economic globalization. provincial levels; various mechanisms in the usually involved ‘rule by some people’ rather Part 5 considers the main problems of internal private sector; and dense networks that interlink than by the public as a whole. So, whereas organization and practice of civil society these levels and sectors. So efforts to democracy is supposed to entail majority rule associations that can advance or limit their democratize the global economy have to address with minority rights, in today’s global economy capacities to democratize the global economy. a multi-layered and widely scattered apparatus of the situation is usually one of minority rule Part 6 highlights critical issues for future civil governance. without majority rights. society strategies to democratize the global It is important that the global economy is economy. The rest of this summary reviews the governed democratically. People affected by the Is civil society an answer to these troubles of main argument made through these six parts of various policy choices should take decisions democracy? ‘Civil society’ is taken here to be a the report. collectively, openly, equally, freely and political space, or arena, where voluntary responsibly. It may not be clear how, precisely, associations seek to shape the rules that govern 4 one or the other aspect of social life (in this case given less priority to this objective than subordinated social spheres like underclasses, the global economy). Civil society bodies bring organizations that focus on marginalized people. women and rural areas. Effective democracy together people who share concerns about a requires that all people involved have adequate particular policy area or problem. These groups Nevertheless, civil society actors can in principle means to exercise their right of participation. As vary enormously in size, organizational form, make six main (and at various points Part 3 of this report extensively illustrates, civil geographical scope, cultural context, resource overlapping) types of contributions to democratic society activities have already provided many levels, constituencies, ideologies, strategies and governance of the global economy. For one democratic benefits of all six kinds in respect of tactics. Yet all civil society activities are thing, civil society associations can undertake contemporary economic globalization. voluntary (that is, they do not pursue financial public education. Effective democracy rests on profit or public office), and they are actively informed citizens, and civil society organizations That said, the overall scale of these contributions political (that is, they aim to affect the way that can help to make people more knowledgeable has remained fairly modest to date. Civil society social power is acquired, distributed and about economic globalization and how it is groups could – and should – do far more to exercised). regulated. Second, civil society activities can advance public awareness, public involvement promote public debate. Effective democracy and public control in the global economy. To To be sure, civil society activity (through social depends on open deliberation of diverse views promote a fuller realization of these movements, philanthropic foundations, faith- and options. Civil society groups can help to democratizing potentials it is necessary to based organizations, NGOs, labour unions, prevent any single policy framework from identify the conditions that can either enhance or business forums, etc.) is not the only way to gaining an authoritarian monopoly over obstruct the possibilities. bring greater democracy to the global economy. governance of the global economy. Third, civil There is also a lot that governments, parliaments, society initiatives can enable public participation. Some of the reasons why civil society political parties, the mass media and educational Effective democracy requires an engaged associations have not yet done more to establishments could do in this regard. citizenry, and civil society bodies can help to democratize governance of the global economy Institutional reform of multilateral agencies and a give people channels of political involvement. relate to circumstances in the wider society in reversal of the privatization of governance could Fourth, civil society organizations can increase which these groups operate. Even the most also improve matters.
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