Beyond conventional economic wisdom

My column today is an attempt to focus our attention on a few less spoken or untold developments that may have a profound influence on how we carve our way through in creating a desirable social, economic and political future for mankind on this only planet of ours.

While I will not specifically touch on the nature of ownership of global media, its dominant corporate interest driven agenda and the nature of the ‘truth’ it presents, I leave that as a backdrop thought in the reader’s mind.

It also serves to remind ourselves of some fundamental values and virtues that were observed in the breach in the post-World War II era, which have come to haunt us now making economies, once touted as being most productive and vibrant, to be quite sick. The ‘Occupy Movements’ that have been spreading across the continents seemingly articulate the negative impact such breaches have had on human development at large.



Power of one



We must recognise that the past few decades of our existence have also been the most vibrant in terms of innovation and in unfolding breakthrough technology. The info-communications revolution has enabled the laying of a level playfield with information flows, facilitating exchange of ideas and ease of decision making like never seen before.

It has also given a new tool which I shall venture to cite as the ‘Power of One’ where empowerment of the individual citizen sometimes overrides interests that were once the domain of the nation state.

What prompted me to look at such issues with a critical eye was a search I made on some topics of interest to me. These are topics less traversed by those who feed us with news and information of the ‘all is well in our midst’ scenarios.

During my search, I stumbled upon a book released last year, ‘The Global-Warming Deception: How a Secret Elite Plans to Bankrupt America and Steal Your Freedom’ by Grant R. Jeffrey. Jeffrey, fundamentally an evangelist (judging from his earlier work), makes the proposition that “Global warming has a hidden agenda to create a global socialist government”.

He says that the “worldwide effort to combat manmade global warming is history’s most far-reaching hoax,” labelling it “an orchestrated campaign of political pressure, flawed science, and falsified data — all designed to sell an environmental lie and bring the West to its knees”.

He adds that “the United Nations agencies use the threat of rising ocean levels, crop failure, expanding deserts, and the extinction of species to convince western nations to surrender their sovereignty. As these developments play out, we see the globalists consolidating their power.”

He claimed that his book showed how “laws and regulations to reduce carbon emissions are designed to destroy the free-enterprise system and drain wealth from western nations and how the religion of eco-fundamentalism denies the existence of God and substitutes in His place the worship of the earth and how the coming economic collapse, hastened by global-warming laws, will lead to international chaos.”

He adds that “a one-world government will be presented as the solution, followed by the arrival of the Antichrist”.

He warns US citizens that their liberty is at stake and calls on them “to learn all you can about the socialist-Marxist elite that is advancing the false threat of global warming —the most deadly deception in history”.



Trade before aid



Leaving that topic with you for your own examination and judgment without further comment from me, permit me to take your mind back to the 1960s when we saw the birth of what we know today as the ‘United Nations Conference on Trade & Development’ or UNCTAD.

Initiated with the goals of “maximising trade, investment and development opportunities of developing countries, assisting them in their efforts to integrate into the world economy on an equitable basis,” the creation of the conference was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations.  

Led by the likes of Argentinean economist late Dr. Raúl Prebisch, who served as the first Secretary General of UNCTAD, it promoted the doctrine of unequal exchange instituting that there should be ‘Trade before Aid’ to end power and dominance based dependence within the global economy.

Our own economist, civil servant and diplomat late Dr. Gamani Corea who served in that position for a decade beginning 1974 had been an early proponent of the ‘North-South Dialogue’ that later took effect as the ‘UN Declaration for the Establishment of a New International Economic Order’ (NIEO).

Two of the greatest achievements of that era of UNCTAD were the institution of the Common Fund for Commodities and the Generalised System of Preferences or GPS to counter the Most Favoured Nation (MFN) status which was used by the developed countries as a tool to control trade options of developing countries under the GATT (General Agreement on Tariffs and Trade) framework that later became the World Trade Organisation or WTO.

While the concept of a New International Economic Order was limited to matters of trade, there was little done to seek and explore its merits as a mechanism for the utilisation and distribution of all of the world’s resources and wealth. The main tenets of NIEO were:

1 Developing countries must be entitled to regulate and control the activities of multinational corporations operating within their territory.

2 They must be free to nationalise or expropriate foreign property on conditions favourable to them.

3 They must be free to set up associations of primary commodities producers similar to the OPEC; all other States must recognise this right and refrain from taking economic, military, or political measures calculated to restrict it.

4 International trade should be based on the need to ensure stable, equitable, and remunerative prices for raw materials, generalised non-reciprocal and non-discriminatory tariff preferences, as well as transfer of technology to developing countries; and should provide economic and technical assistance without any strings attached.



Level playfield



Once again we observe how much of these tenets are observed in the breach by powerful nations through the imposition of other different deterrents. During the past few decades, the Asian ‘Tiger’ and ‘Dragon’ economies demonstrated how the pragmatic use of some once shut ‘windows’ when opened, could bring about changes to deliver hundreds of millions of people out of the poverty trap.

Coupled with a hard work ethic, prudent fiscal and socio-political management, ease of access to information and an somewhat fair environment for trade, these countries were able to demonstrate that they had what it took, to take on efforts to develop their own resources for the benefit of their people. China and India are sound examples of such effort.

It is here that we must acknowledge and recognise the farsightedness of these and many other pioneers in UNCTAD and the trade facilitation movement of GATT and WTO in their attempt to create a ‘level playfield’ for economic activity. It was certainly not an easy road they traversed.

Backed by just principles and sound moral justification they were able to show the world that cooperation was a better option than pure competition. The idea of providing opportunities for developing nations to have ease of access to trade instead of providing mere aid and sharing of resources and technology to establish facilities for production goods and services without being restricted by national boarders took firm root. New terminology i.e. Coopetition (Cooperation + Competition) evolved to give expression to that doctrine.

Occupy Movements



While this scenario emerged, we also witness the advent of a less desirable situation in the developed world, being hit by what some called ‘an economic and financial crisis deeper than the one faced during the great depression of 1929’.

Caused as a result of imprudent management of financial and other resources, we saw the failing of several large financial institutions, real estate markets, corporate houses and even nations due to their inability to meet their debt commitments. We saw bailouts of corporate entities and nations amounting to billions of dollars and the impact these had on the day to day lives of the people in these countries.

The birth of the ‘Occupy Movement’ in 2010 that further grew in its influence during 2011 is an expression of the discontent that was created as a result of this scenario. This mass movement without any defined leadership or offer of specific solutions is an expression of dissent, where its mobilisation for action was achieved through means of info-communications.

No matter what criticism is levelled against the movement, the fact that it is still alive and active within the domains of the various social media on the Internet, warrants that attention is paid to what the ‘99 percent’ has to say of how the ‘1 percent’ goes about doing business and managing national economies.  

When in search for solutions I came across a website also of an evangelist nature much different to the thought process as outlined by Jeffrey in his book. At the address http://www.iawwai.com/ProblemsOfThisWorld.htm it states that: “We face today an unprecedented set of problems relating to The Environment, The Coming One World Order and the ongoing process of Spiritual Decline” and goes on to discuss solutions much different to what we hear in the conventional domain of thought.

“But there exists a lasting solution to these issues facing humankind. It derives from the notion of the power of ideas and an idea so powerful that its effect upon the world will be most profound,” it says.



Sufficiency Economy



In the same vein I came across the statement delivered by the current Secretary General of the UNCTAD, Dr. Supachai Panitchpakdi at the ‘International Conference on the Sufficiency Economy’ held in Bangkok, Thailand in February this year, on the topic ‘Sufficiency Economy and the Direction of Sustainable Development,’ the full text of which can be found at the web link: http://www.unctad.org/templates/webflyer.asp?docid=16427&intItemID=3549&lang=1.

As the UNCTAD pioneers did in the ’60s and the ’70s with their far-reaching thought processes Dr. Panitchpakdi is making the statement that “the philosophy of the Sufficiency economy is in some ways ahead of conventional economic wisdom” and that “it can be developed further and inform a new development thinking that has learnt the lessons of past failures. The Sufficiency Economy reminds us that optimisation does not always equal maximisation, but, in many cases, moderation” adding in conclusion “I hope that this time around, we will learn this lesson.”

I leave you to further explore his and thoughts of wisdom of others.





(Renton de Alwis began his professional career as a lecturer in development economics at the Keleniya University during the 1970s. A former Chairman of Sri Lanka Tourism he served two terms during 2000-2002 and again from 2007-2008. He had earlier served as Head of the Asia Division of the Pacific Asia Travel Association (PATA) based in Singapore from 1990-96 and as CEO of the National Association of Travel Agents Singapore from 1997-99. He also served as a Chief Technical Advisor and consultant with the ADB, UNDP, UNWTO, ESCAP, UNICEF and the ILO. Now in retirement, Renton lives away from Colombo in the Deep South of Sri Lanka and is involved in writing and social activism. He can be contacted at [email protected].)