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Written by The Informed Aussie
Published on Monday, January 30th, 2012
The promise that globalism will bring forth peace and prosperity to the world is one of the biggest fallacies we have been told. The Globalists and those who support the concept of globalism are seeking a world that is united and borderless. Many would refer to this philosophy as the New World Order. We all desire a world that is united and without war, but a world without borders is something that we must all avoid as the globalists, elite, multinational corporations and land owning families will be the only ones who will benefit. Ordinary people will lose and suffer the most.
In Australia, the concept of globalism and global government has been around almost since federation. Up until 1983, protectionism was rife and almost all public policy was centred on ensuring Australian industry, agriculture and financial sectors were protected. This all changed when the Hawke government was voted-in and economic reform was on the agenda. The Hawke government’s economic reforms consisted of the floating of the Australian dollar, removal of tariffs, deregulation of the financial system, ending subsidies of loss-making industries and the sale of the Commonwealth Bank of Australia.
Since Australia’s economy has opened, trade between Asia and North America and grown exponentially. In 2012, it is expected that Australia will receive $115 billion in infrastructure spending as international and Australian mining companies build ports and railways to supply China and India’s high demand for iron ore and coal. On the surface, it would appear globalism is benefiting the Australian economy. However, this is not true and as a result of globalism, Australia has developed into a two-speed economy. While the mining and resources sectors are booming, the rest of the Australian economy is not experiencing a boom and the supposed benefits globalism is meant to offer.
The ideology that open markets of which are free from tariffs and other restrictions benefit all countries and related parties is false and misleading. It’s misleading because this is something that can never be achieved politically. Think about it, image how difficult it would be for a government to lift tariffs on a product or service that would result in job losses of 80%+. In France, the agricultural sector received almost €11 billion from EU subsidies (3). Even though French agriculture products are considered to be world-class, subsidies are still required to ensure they price their products at competitive levels. If all tariffs on French agriculture products were removed, then the industry would collapse and the skills the agriculture industry uses would be impossible to transfer to other industries. The fact is, the globalists don’t want the government to open markets and always lobby governments to impose restrictions such as subsidies and tariffs to make it almost impossible for other countries to complete with them.
With all of this in mind, Australia is faced with a number of issues that globalization will only exacerbate. At present (1):
The fundamental problem that globalism cannot resolve for Australia is the fact that Australia has little to no capacity to manufacture and process its own natural resources and commodities. Over time, due to cheap labour overseas, almost all of Australia’s natural resources are now exported overseas and processed. They are then returned and sold. This in effect means that the globalists have orchestrated Australia’s economy to be dependent on other markets to process its natural resources and commodities so that basic goods and services can be produced.
The good news is that Australia can benefit from open markets if its direct and indirect competitors behave in the same way. In almost all circumstances, this is never the case. In fact, when markets are opened, it is usually selective and only done so to benefit one very small group of people. The American’s are facing the same problem. In a recent study about Chinese market access barriers of U.S. oilseeds and grains, it was concluded that the exchange rate of the Yuan to the dollar is a major factor affecting China’s imports of U.S corn and soybean (2). Australia faces the same issues with China. Due to China’s currency being fixed, fluctuations in the Australian dollar give China an unfair competitive advantage on Australian exports and imports. The true value of the Yuan is unknown and never will be known until it becomes fully floated.
In Africa, globalism is viewed differently. On the one hand, globalism has given the African continent unprecedented access to other markets. On the other hand, ever since the colonisation of Africa by western globalists, progress has been very slow. In a recent study about the effects of globalization on education in Africa commissioned by the University of Port Harcourt, it was concluded that globalisation as a phenomenon does promote education and economic growth but its pulls and pressures have created Injustice, inequality and inequities that reduce human dignity to the barest minimum.
So what do we expect the globalists and globalism to achieve for Australia in the long-term? Well, it would be fair to say again that if all of Australia’s direct and indirect competitors played by the same rules, then globalism would be beneficial to Australia. The sad truth is that this will never be the case. Even if the globalists achieve a global government and a new world order, inter-country and inter-continental economies will never be fully transparent and free.