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Crisis of Multilateralism and Globalization

The document discusses the crisis of multilateralism and increasing unilateralism of the US. While multilateral institutions were meant to facilitate shared decision making, the US has often acted alone or through these institutions like the IMF and World Bank to advance its own interests, such as during the Asian financial crisis. Events like the rejection of the Kyoto Protocol on climate change highlighted the US preference for unilateral action over multilateral agreements. The growing conflicts between the US and other members of forums like the G8 have further damaged multilateral cooperation.
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0% found this document useful (0 votes)
48 views2 pages

Crisis of Multilateralism and Globalization

The document discusses the crisis of multilateralism and increasing unilateralism of the US. While multilateral institutions were meant to facilitate shared decision making, the US has often acted alone or through these institutions like the IMF and World Bank to advance its own interests, such as during the Asian financial crisis. Events like the rejection of the Kyoto Protocol on climate change highlighted the US preference for unilateral action over multilateral agreements. The growing conflicts between the US and other members of forums like the G8 have further damaged multilateral cooperation.
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Multilateralism in Disarray

SUMMARY
Yet even as the prophets of globalization talked about the increasing obsolescence of the nation-state,
the main beneficiary of the new post-Cold War global order was the United States. When the Asian
financial crisis engulfed countries that had been seen by many in the business community as America's
most formidable competitors, Washington did not try to save the Asian economies by promoting
expansionary policies. Instead, it used the IMF to dismantle the structures of state-assisted Asian
capitalism that had been regarded as formidable barriers to the entry of goods and investments from US
transnationals that had been clamoring vociferously to get their piece of the 'Asian miracle'.

Acting to achieve its interests under multilateral cover was the preferred US strategy for most of the
post-war period, whether it was the Bretton Woods institutions, the United Nations or the Group of
Seven that provided the framework for 'hegemonic leadership'. Yet when these institutions got in the
way of US interests, Washington did not hesitate to act unilaterally. The instrumental use of multilateral
agencies was stark when it came to the UN. While using the United Nations to provide cover for its
policy of isolating Iraq, Washington also refused to pay its dues to the UN owing to the influence of the
Republican right, angry at the world body's not kowtowing wholeheartedly to US policy.

The G-7 - later G-8 with the addition of Russia - emerged in the 1970s to provide a mechanism for more
multilaterally shared decision-making among the advanced capitalist countries, especially in economic
matters. Yet, especially under the administration of George W. Bush, Washington has embarked on a
unilateralist course that has brought it into sharp conflict with other members on the burning issues of
banning land mines, climate change, missile defense and reconciliation between the two Koreas.
Washington's brusque junking of a painstakingly negotiated agreement, the Kyoto Protocol on Climate
Change, marked a new low in unilateralist behavior.

EXPLANATION
As the title stated above, multilateralism was indeed in disarray because of the internal conflict present
between the countries belonging in G-8 as USA is still exercising unilateralist behavior. Considering that
most of its citizens are not in favor in globalization resulting to the Battle of Seattle, as well as the
protest in Genoa that happened during the annual summit, undeniably, the US preferred unilateralism.
Although my opinion will be subjective, seeing how the Washington helped the Asian countries during
the Asian financial crisis by pledging billions using IMF, there is somehow that underlying agenda of
making them indebted so it won't be seen as formidable opponents. US maybe part of the United
Nations but they will act accordingly if some are in the way of their interests.
Porto Alegre and the Future
SUMMARY
In sum, in a little over a decade, global capitalism has passed from triumph to the crisis. September 11,
in retrospect, was a slight reversal of this prolonged crisis, but the widening cracks in the system of
global capitalism - including the liberal democratic political regimes and American military hegemony
that act as its protective canopy - cannot be papered over for long. At this point, the crisis is principally a
crisis of legitimacy. Crises of legitimacy, however, are a necessary prelude to change, since when
legitimacy or consensus goes, it may only be a matter of time before the structures themselves unravel.

Yet the crisis of the system of global capitalism does not necessarily result in its replacement by a more
benign alternative. Here it is important to retain a historical perspective. During the first phase of
globalization, the reaction to capitalism's inexorable commodification of the natural and social world
was a search for community, for a new basis of social solidarity beyond the market. In retrospect,
socialism, communism, social democracy and national liberation movements can all be seen as
expressions of this countervailing thrust. Fascism, which Karl Polanyi defined as 'the reform of the
market economy achieved at the price of the extirpation of democratic institutions', was also part of this
countervailing drive, one that hijacked the search for community in the service of reaction,
counterrevolution, and racism.

On the progressive side of the spectrum, diverse responses globally are coming together under the
canopy of the 'Porto Alegre process'. The site of the World Social Forum (WSF) in 2001 and again in
2002, Porto Alegre, a medium-sized city in Brazil, has become the byword for the spirit of the
burgeoning movement against corporate-driven globalization. In symbolic terms, while Seattle was the
site of the first major victory of the struggle against corporate-driven globalization, Porto Alegre
represents the transfer to the South of the center of gravity of what is now a surging global movement.

Now an annual affair, one might say that Porto Alegre performs three functions for this movement. First,
it represents a space - both physical and temporal - for this diverse global movement to meet, to
network and, quite simply, to feel and affirm itself. Second, it is a retreat during which the movement
gathers its energies and charts the directions of its continuing drive to confront and roll back the
processes, institutions, and structures of global capitalism. Third, Porto Alegre provides a site and space
for the movement to paint, elaborate and debate the vision, values, and institutions of an alternative
world order.

EXPLANATION
Porto Alegre had significant role to dismantling the corporate-driven globalization because it proved
that although the globalization is beneficial to some, it is a much more threat to most. Instances where
people had sought refuge to this medium-sized city in Brazil shows that tragedy is present during the
globalization. Naomi Klein stated that Porto Alegre moment is needed so that an alternative world is
possible without the corporate-driven globalization which breeds fascist, racist, fanatical and
authoritarian populist forces.

Common questions

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During the first phase of globalization, different ideological movements arose in response to the commodification of the natural and social world. While socialism, communism, social democracy, and national liberation movements sought to establish communities and social solidarity beyond market forces, fascism emerged as a regressive force, misappropriating the search for community to advance reactionary and racist agendas. These opposing movements illustrate the diverse responses generated by the pressures of globalization .

Washington's actions during the G-7 meetings illustrated its unilateral approach through its rejection or deviation from multilateral agreements and its emphasis on national interests above consensus. This was evident in its rejection of banning land mines, the Kyoto Protocol on climate change, and in its policies on missile defense, which often led to conflicts with other G-7 members .

The United States strategically employed multilateralism to legitimize and cover its global actions, aligning with international bodies like the UN and IMF when beneficial. However, when institutional frameworks conflicted with US interests, Washington acted unilaterally, evident in its abandonment of the Kyoto Protocol and other agreements. This dual approach illustrates a pragmatic use of multilateralism to bolster US hegemony while preserving the option for unilateral initiatives when necessary .

The crisis of global capitalism is described as a crisis of legitimacy because it undermines the foundational consensus that sustained global economic and political structures. With legitimacy eroding, the document suggests that the structures of global capitalism might unravel unless refreshed or reformed. The crisis opens the door for significant structural changes, possibly leading to social, economic, and political transformations worldwide, reminiscent of earlier reactions against capitalism like communism and social democracy .

The World Social Forum, as exemplified by its gatherings in Porto Alegre, served as a crucial meeting place for global activists opposed to corporate-driven globalization. It helped in networking, exchanging ideas, and forming a collective identity for the movement. The forum provided a strategic retreat to energize and strategize, as well as a platform to articulate and debate an alternative vision for the world order .

Porto Alegre and the World Social Forum provided a platform for global movements to convene, fostering a collective reimagining of global order that opposed corporate-driven globalization. It allowed activists to exchange ideas, devise strategies, and articulate a world vision centered on social justice, equality, and sustainable development. These gatherings cultivated a shared narrative that challenged the prevailing capitalist structures, proposing alternative social, economic, and political systems .

Porto Alegre symbolized a shift in the center of gravity for the global movement against corporate-driven globalization from the North to the South. It was not only a physical and temporal space for global activists to convene, network, and consolidate their efforts, but also a center for developing and debating visions for an alternative world order. It represented a strategic retreat and transformation of the movement's focus and was instrumental in challenging corporate hegemony .

The United States used multilateral institutions like the IMF, United Nations, and G-7 as instruments to achieve its interests, often using them as cover to legitimize its actions on the global stage. For example, during the Asian financial crisis, the US leveraged the IMF to dismantle state-assisted Asian capitalism, removing barriers to entry for US transnationals. While these institutions could provide a framework for hegemonic leadership, the US acted unilaterally when these did not align with its interests, such as when it rejected the Kyoto Protocol .

The Global Financial Crisis highlighted the cracks in global capitalism's legitimacy, showing the failure of liberal democratic regimes and American military hegemony to sustain a stable global order. The crisis represented a fraying consensus, paving the way for potential structural change. Historical parallels are drawn with earlier countervailing movements like socialism and communism, suggesting a historical inevitability to such crises leading to change, though not necessarily a more benign alternative .

During the Asian financial crisis, the US utilized the IMF to advance its own interests by dismantling state-assisted capitalism in Asia, thereby reducing them as formidable economic competitors. Instead of promoting expansionary policies to aid recovery, the US ensured that these countries opened up their markets for US transnational corporations, securing economic advantage and strategic leverage .

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