Globalization and the Washington Consensus Gladys Lechini [editor] Globalization and the Washington Consensus : its influence on democracy and development in the south / compilado por Gladys Lechini. - 1a ed. - Buenos Aires : Consejo Latinoamericano de Ciencias Sociales - CLACSO, 2008. 224 p. ; 23x16 cm. (Programa Sur-Sur) ISBN 978-987-1183-91-3 1. Globalización. 2. Democracia. I. Lechini, Gladys, comp. CDD 327.1 Others indexing terms (descriptors) assigned by the Virtual Library of CLACSO: Globalization / Washington Consensus / Democracy / Economic and Social Development / International Financial Institutions / South-South Cooperation / Poverty / Africa / Asia / Latin America Otros descriptores asignados por la Biblioteca virtual de CLACSO: Globalización / Consenso de Washington / Democracia / Desarrollo Económico y Social / Instituciones Financieras Internacionales / Cooperación Sur-Sur / Pobreza / África / Asia / América Latina South/South Collection Globalization and the Washington Consensus Its Influence on Democracy and Development in the South Gladys Lechini [editor] Marco Gandásegui Alicia Girón Arturo Anguiano Helmy Sharawy Patrick Bond Mammo Muchie Beluce Bellucci Walden Bello Virginia Miralao Utsa Patnaik Romer Cornejo Secretario Ejecutivo de CLACSO Emir Sader Secretario Ejecutivo Adjunto Pablo Gentili Colección Sur/Sur Coordinador del Área de Relaciones Internacionales de CLACSO Alberto Cimadamore Equipo del Programa Sur/Sur Jacques d´Adesky, Victoria Mutti, Gladys Lechini y Silvia Tordoni Coordinador Área de difusión y Producción Editorial de CLACSO Jorge Fraga Arte de Tapa Miguel A. Santángelo Revisión técnica de textos Lucas Sablich Producción Fluxus Estudio Impresión Buenosaires print Primera Edición Globalization and the Washington Consensus. Its influence on Democracy and Development in the South (Buenos Aires: CLACSO, junio de 2008) ISBN 978-987-1183-91-3 © Consejo Latinoamericano de Ciencias Sociales Queda hecho el depósito que establece la Ley 11.723 CLACSO Consejo Latinoamericano de Ciencias Sociales - Conselho Latino-americano de Ciências Sociais Av. Callao 875 | piso 5º | C1023AAB Ciudad de Buenos Aires | Argentina Tel [54 11] 4811 6588 | Fax [54 11] 4812 8459 | e-mail <[email protected]> | web <www.clacso.org> Patrocinado por la Agencia Sueca de Desarrollo Internacional No se permite la reproducción total o parcial de este libro, ni su almacenamiento en un sistema informático, ni su transmisión en cualquier forma o por cualquier medio electrónico, mecánico, fotocopia u otros métodos, sin el permiso previo del editor. La responsabilidad por las opiniones expresadas en los libros, artículos, estudios y otras colaboraciones incumbe exclusivamente a los autores firmantes, y su publicación no necesariamente refleja los puntos de vista de la Secretaría Ejecutiva de CLACSO. Índice Introduction Gladys Lechini 9 Global Processes and their effects on Latin America. Polycentric v. perturbed words. Marco Gandásegui 25 International Monetary Fund: From the stability to the instability of the Washington consensus and the reforms in Latin America Alicia Girón 43 Mexico: contradictions and uncertainties of an incomplete democratic process Arturo Anguiano 57 The American led Globalization as the Main Obstacle to the Development of Democracy in the Arab World and Africa Helmy Sharawy 71 The looting of Africa Patrick Bond 83 The Impact of the Washington Consensus on Democratic Stability: The case of Ethiopia Mammo Muchie 115 Everything and nothing. The Challenge of Capital in Mozambique Beluce Bellucci 121 The Global Crisis of Legitimacy of Liberal Democracy Walden Bello 133 Globalization, Democracy, and Development: Some Asian Patterns and the Philippines’ Experience Virginia Miralao 147 Theorizing Poverty and Food Security in the era of Economic Reforms Utsa Patnaik 161 Political Participation and Culture: The Cases of China and Taiwan Romer Cornejo 201 Introduction Gladys Lechini THIS BOOK IS the result of a Workshop organized in Caracas in 2006. It is one of the byproducts of the first phase of a three year academic South/South collaboration project carried out by CLACSO, CODESRIA and APISA during the period 2005-2007, thanks to the generous support of the Swedish International Development Agency. The project is many sided and quite comprehensive, and it was designed to set up and, in some cases restore, the culture of structured scholarly networking among regional and sub-regional social science research institutions in Latin America, Africa and Asia. The objective is to improve the reciprocal understanding of these regions and, at the same time, to contribute to the production and dis- semination of relevant knowledge in the South, useful to understand and solve regional challenges and encourage the adoption of new poli- cy directions. Through the organization of workshops and Summer Institutes in the three continents the project fosters the circulation of ideas and research findings in the academic media as well as in the public space of the concerned regions. The project also tries to make an * PhD in Sociology from Sao Paulo University. Researcher at the CONICET. Regular Professor of Internationalss Relations at the National University of Rosario, Argen- tina. Academic Consultor of CLACSO´s South-South Program. 9 Globalization and the Washington Consensus impact in the scholarly discussion going on in the North, usually very poorly informed about realities and theoretical and methodological ap- proaches being used in the South. The outcome of these collaborative activities is published in the form of books and occasional papers. During the above-mentioned seminar in Caracas, scholars coming from different regions of the South shared ideas and experiences on common realities and problems, learning about similarities and differ- ences, compatibilities and contradictions on issues concerning mainly with themes related to the international financial architecture and its influence on democratic stability and the prospects of development in the South. As it was stated during the discussions, the policies of structural adjustment were introduced in the early 1980s as an all-embracing framework for “reform” (“market-friendly” reforms) within which the countries of the South would surely overcome their traditional problems of development. But, rather than helping to solve them the orthodox recipes of stabilization and structural adjustment became major factors in the dynamic of crises and decline experienced, with few exceptions, in most countries of the South, reinforcing existing difficulties and producing new ones of their own. In this adjustment process a key instrumental role was played by the International Financial Institutions (IFIs). In fact, agencies like the International Monetary Fund (IMF), the World Bank (WB), and the World Trade Organization (WTO) and, in our regions, the Inter-American Development Bank, the Asian Development Bank and the African Development Bank all played a dual role of paramount influence in domestic political processes. On the one hand, an economic role, forcefully promoting and implementing –sometimes even contributing with their own staff to the state bureaucracies in charge– the neoliberal policies in a whole range of markets and economic institutions; and on the other hand, a political role, helping to “discipline and align” resistant national governments within the narrow limits established by the Washington Consensus. Within this context, these financial institutions became critical avenues for the advancement of an international hegemonic structure –led by global dominant economic and political forces– into the policy-making and the domestic agenda of supposedly sovereign states, determining new forms of subordination and control. This asymmetrical network of social, political and cultural relations has prevented the countries of the periphery from implementing sovereign decisions in crucial areas of governance, with the consequent erosion of their democratic legitimacy. One of the most important consequences 10 Introduction of the policies of the Washington Consensus has been the undermining of the state, an institution that was relentlessly demonized and attacked, and multiple efforts were made to de-legitimise it as a player in the development process. But perhaps even more disturbing were the systematic erosion of effective policy making and policy capacities and the relocation of key macro-economic decision- making levers in the markets and in the hands of foreign international financial institutions, jeopardizing both democratic consolidation and development in the South. In this regard, a relevant research question from the point of view of our countries relates to the conditions under which the long expected democratization could produce a fairer distribution of resources and promote the dissolution of entrenched dependency structures. Another pertinent issue confronted by the countries of the South and very hard to deal with is the challenge posed by the need to guarantee the state-building process against the background of a generalized, although highly unequal, erosion of sovereignty. A clear understanding of this complex background is absolutely essential to realize the enormous difficulties facing democratic policy making in Third World countries. That is the reason why the good performance and legitimacy of democratic governments in Africa, Asia and Latin America requires a new thinking and a new theoretical framework. Consequently, if coun- tries are cannot