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On August 1, 2000, Philadelphia police rounded up seventy-five activists inside a West Philadelphia warehouse. It was the second day of the Republican National Convention, and the activists had been making papier-mâché puppets, which they planned to use during street demonstrations. The Philadelphia district attorney ultimately charged the activists with a slew of misdemeanors, including conspiracy to obstruct the law and resisting arrest. These self-anointed puppetistas were kept in jail until after the Republicans had dropped the last of their balloons from the First Union Center rafters.

Ultimately, charges against all the puppet makers were dismissed. Last summer more than a third of them sued the city over alleged violations of their civil rights. They assumed their cases would be strong enough to net not only substantial cash payments but significant reform in the police department. Now it looks like they'll be getting neither.

The reason, they say, is the unusually aggressive tactics of the law firm representing the city in these cases. Hangley Aronchick Segal & Pudlin attempted to depose plaintiffs' lawyers, arguing that they encouraged protesters to engage in civil disobedience, get themselves arrested and clog the city's jails. The firm has subpoenaed activists' address books, personal tax records and entire computer hard drives. Its lawyers hired investigators to question former spouses and flew across the country to interrogate witnesses.

About twenty-seven civil suits stemming from puppet warehouse arrests are now being settled out of court. A transcript from a June 18 hearing spells out the details of the agreement for twenty-four of the cases, which have been consolidated under Traci Franks v. the City of Philadelphia. It says that plaintiffs agree to accept $72,000, which will be divvied up between two nonprofit groups: the Spiral Q Puppet Theater and Books Through Bars. The figure was derived by awarding $3,000 to each of the twenty-four plaintiffs. (Separate settlements are being negotiated for the suits filed by warehouse owner Michael Graves and two other activists.)

In July the Traci Franks file was sealed, and a gag order forbids any of the parties involved from discussing details. But whatever the final dollar amount ends up being, the settlement agreement won't drain city coffers of a dime because it's all covered by insurance.

The host committee for the RNC, a group of high-profile Philadelphians, paid $100,000 for an insurance policy seven months prior to the convention. The policy specifically covers up to $3 million for personal injury arising from claims of false arrest and wrongful imprisonment, malicious prosecution and violation of civil rights. The insurer, Lexington Insurance Company in Boston, hired Hangley Aronchick to handle the civil suits. During the June 18 hearing Hangley Aronchick attorney David Wolfsohn implied that the insurance carrier may even be able to claim a tax deduction for contributing the $72,000 settlement to charity.

Many activists agreed to settle because they fear that turning over more e-mails and meeting minutes to city attorneys could compromise future legal protests, should documents wind up in government hands. They also decided to throw in the towel when it became clear the city would not agree to a reform of police procedures. In this post-September 11 world, law enforcement agencies are expanding their scope, not narrowing it.

People embarked on these suits to get injunctive relief, says Kris Hermes, a member of for the R2K Legal Collective. Because that wasn't happening, there was less incentive to carry on.

Plus, plaintiffs are doubtful a jury would be sympathetic to political dissenters, given the current political climate. "There is a deep desire on the part of many Americans to see police officers as the bulwark protecting them, and they don't want to confront anything indicating officers have the power to abuse us," says Pennsylvania ACLU legal director Stefan Presser.

But the biggest obstacle is that the activists' attorneys want out as quickly as possible. They accepted the puppetista cases on contingency fees, and they simply can't keep pace with a major law firm eager to rack up billable hours.

Angus Love, director of the Pennsylvania Institutional Law Project, was subpoenaed and deposed by Hangley Aronchick because he worked as a legal observer during the RNC. He says the city usually does a half-assed job of litigating these cases. "But now we have a private law firm that is used to a higher level of attack," Love says. Wolfsohn is going after political protesters as if they were right-wing terrorists.

Attorneys on both sides of the lawsuits, as well as Philadelphia officials, declined to comment for this story. At the time of the warehouse raid, however, Mayor John Street was vocal on the subject. As hundreds of criminal charges were being processed on August 2, 2000, Street told reporters that he fully expected the city to be sued. "But we expect that we will defend the city.... We will defend our police department to the Supreme Court if necessary," he said.

Presser was among the attorneys Hangley Aronchick had hoped to depose. He characterizes the request as extremely unusual, noting only one similar situation during his twenty years of practicing law. Hangley Aronchick has also subpoenaed people ranging from well-known activists to plaintiffs' relatives.

Matthew Hart, the director of the Spiral Q Puppet Theater, was ordered to turn over all his e-mails, date books and phone records. He characterizes his oral deposition as bizarre and perfunctory.

"Attorneys for the city inferred this massive conspiracy that I don't even think the people involved had the capacity to pull off," Hart says. "I think their biggest intention was to move as slowly as possible and bill more hours."

Traci Schlesinger, the lead plaintiff in the consolidated suit, says her deposition brought to mind the McCarthy era.

"It seemed as though he hoped to prove I was an anarchist, and then it would be legitimate for police to arrest me," Schlesinger says.

Mike Dolan, one of the principal organizers of the "Battle of Seattle" three years ago, returned in late August--with Jim Hightower's Rolling Thunder DownHome Democracy Tour--to a changed city. As he juggled cell phones from the stage in Seattle's Petrovisky Park, near the burial site of Jimi Hendrix, Dolan noticed there was no tear gas this time, only sunshine.

There were still dirty tricksters hanging up posters on Broadway, the heart of radical Seattle, warning people to stay home because there was no parking at the event, but 5,000 people turned out, to reflect on the movement they launched at the World Trade Organization conclave in 1999.

The world of BS--"before Seattle"--was a dizzying can-do era of overnight millionaires with fantasies of wiring the planet in a grid of greed. Then came the protests, the greatest civil disobedience of the era, with thousands of people teaching the masters of the universe that they could no longer conduct business as usual, and the fantasy world began to shudder.

With dot.coms bombing and Boeing going, Seattle has lost its artificial luster, returning to the status of a lovely, cultured city instead of the mecca of a global kingdom. Corporate sway over the economy lost its sex appeal when the Nasdaq fell 355 points on a single March day in 2000, Bill Gates lost $10 billion in a week and 25,000 workers were laid off in the software sector. There was the campaign that coerced the public into voting to subsidize the local baseball stadium, and the team's star, Ken Griffey Jr., left anyway. In the same period, Boeing chose the global economy over loyalty to its hometown and announced it was headquartering in Chicago, downsizing production and relocating plants to places like Mexico, China and Malaysia. Even the pump-priming boondoggle of the war on terrorism couldn't save them from the grim morning-after logic of globalization.

Seattle might have salvaged a new identity by taking pride in the rough birth of the movement against corporate globalization on its streets in 1999, rooted in the militant Northwest populist and labor traditions that Hightower's tour echoes today, but the local legacy of that "people's history" remains contested and unclear. Shortly after the confrontations, the police chief resigned. An anti-WTO member of the King County Board of Supervisors was defeated. Mayor Paul Schell never fully recovered from that week, and was defeated for re-election last year under the growing cloud of civic malaise. On the other hand, state representative Velma Veloria who hosted progressive legislators during the WTO protests, is running for re-election this fall, and Nick Licata, who helped house and protect the protestors, remains an energetic force on the City Council. Both Veloria and Licata attended the rally in Petrovisky Park in high spirits. Veloria, in response to Seattle 1999, has formed a legislative oversight committee on the adverse impact of trade agreements on Washington State. (Nation readers who wish to support Velma Veloria should contact her at p_h_leung@yahoo.com.)

One of those returning to interpret the continuing "Battle of Seattle" was Lori Wallach, the indefatigable, street-talking Harvard trade lawyer who coordinates fair-trade lobbying and activism at cyclone speed from her offices at Global Trade Watch in Washington, DC. Wallach has molded herself into one of the more dangerous enemies of the WTO on the planet, able to wipe out corporate lobbyists in television debates, maintain a laser-accurate understanding of thousands of pages of trade regulations, knit together international alliances, forge and hold together aliances on the left and right, and inspire hope for political reform, while scheming, if necessary, to "ratfuck" her enemies, a term she learned somewhere in the underworld of the planet's largest corporations.

Wallach is not entirely heartened by developments since Seattle 1999, citing the rise of internal disputes over "sectarianism" and "egoism" since the movement reached prime time. The emphasis on localism, and its philosophical corollary of anarchism, limits her role as a prime mover and shaker, while critiques of the whiteness of the movement makes alliance-building both essential and difficult. The alienation of many activists from electoral politics robs political victories, like the recent campaign finance reforms, of their potential energizing potency. The fallout from Ralph Nader's presidential campaign, combined with the failure of most Democrats to break cleanly from the corporate agenda, suggests a treacherous electoral future.

Nevertheless, Wallach is in fine form on this fine day, telling the audience that "Seattle" has become an international code word for the progressive spirit of the American people. When American diplomats and apologists argue with overseas audiences that globalization is good, she says, they are often rebuffed by foreign nationals who simply reply, "Seattle," as evidence that Americans themselves do not agree with the policies their government is trying to impose on other countries.

But, she notes, "the empire has struck back," through strenuous US attempts to cast the Seattle protests as "a fluke." The corporatists will try to make globalization seem as "inevitable as the moon's pull on the tides," but Wallach claims that it is "totally doable to take back what's ours" and that the corporate lobbyists "know what we need to know, that it's all a house of cards."

As evidence, she tells the story, hardly described in the mainstream media, of the Bush Administration's extraordinary efforts to squeeze out a three-vote-margin victory for its "fast track" trade authority in the House of Representatives on July 17. Trumpeted by Bush and the corporate media as an empowering victory for the free trade agenda, Wallach says that "what it took to get 'fast track' through was such an amazing flouting of Congressional rules that it showed our power." The fair trade movement had succeeded, by normal Washington standards, in stifling the Administration's "fast track" campaign until the President himself came to Capitol Hill trolling for votes, knocking on doors and making political horse-trades.

That wasn't enough, however. The House leadership held a closed nocturnal hearing to approve a "conceptual" 300-page bill, employing a rule reserved for occasions of martial law. There were no public hearings and no printing of the bill. Instead, it was e-mailed to House members with a link and set for a vote within twenty-four hours, effectively demobilizing the opposition and flaunting any pretense of an open, democratic process. When the House vote took place, and the Administration's forces still fell short, the leadership declared the clock irrelevent and continued making secret deals with holdout representatives until the three-vote margin was achieved. "It just shows how fragile they are," said Wallach, reminding the crowd to "spank" Washington State Democrats like Adam Smith and Rick Larsen, and "thank" representatives who kept their word to oppose fast track.

Undaunted, Wallach told the crowd to gear up for "Nafta on steroids," the Administration's plan to create a thirty-one-country "free trade" zone in the Americas and expand the WTO, culminating in the September 2003 WTO trade round in Cancun, Mexico. The corporate agenda there will aim to eliminate labor, environmental and public interest regulations across Central and Latin America as well as to privatize services like education, healthcare and water access. These so-called nontariff trade barriers represent protections of the public interest that have been created through years of struggle, thus widening the potential anti-WTO coalition to include, for example, schoolteachers, city officials, municipal water systems and other utilities, and construction workers worried about prevailing wage laws.

Recent events in Latin America along with corporate scandals in this country, Wallach thinks, "show that our analysis has been right." For example, Argentina was "the poster child, the model" of the corporate globalizers, but it now lies in ruins, the victim of International Monetary Fund policies which included demands that Argentina repeal its curbs on bankers who funnel money out of the country on the grounds "that the law chilled the investment climate there." The crisis is spawning new resistance movements as well, like the successful Bolivian "water war," which has blocked a government plan to sell its water rights to the Bechtel corporation. The spread of sweatshops and maquiladoras has peasant organizers conspiring and resistance mounting from southern Mexico to Central America.

"This trade stuff didn't get handed down by God like they think. If it doesn't work, it's time to throw it out and take back what is ours. The only way they can win is by our remaining calm," Wallach finishes. The crowd in Petrovisky Park gets the message, deeply and clearly. The spirit of Seattle is alive, carried in Wallach's words and, more important, in the confidence and memory of the crowd, in their commitment to vote, march, organize, campaign. As she spoke and they responded, it seemed to me that Seattle deserves a monument to the 1999 protests to reflect its progressive heart alongside the empty glory of the Space Needle, the Boeing hangars and the stadium that Junior left behind.

After all, I recalled, King County was persuaded to change its name to Martin Luther King Jr. County. Why not a monument to the Battle of Seattle in this city of the failed dotcom and defense contractor dreams? Someday perhaps, but for now the living monument of its creative, committed activist community will have to do.

In 1998 the World Bank notified the Bolivian government that it would
refuse to guarantee a $25 million loan to refinance water services in
the Bolivian city of Cochabamba unless the local government sold its
public water utility to the private sector and passed on the costs to
consumers. Bolivian authorities gave the contract to a holding company
for US construction giant Bechtel, which immediately doubled the price
of water. For most Bolivians, this meant that water would now cost more
than food. Led by Oscar Olivera, a former machinist turned union
activist, a broad-based movement of workers, peasants, farmers and
others created La Coordinadora de Defensa del Agua y de la Vida (the
Coalition in Defense of Water and Life) to deprivatize the local water
system.

In early 2000 thousands of Bolivians marched to Cochabamba in a showdown
with the government, and a general strike and transportation stoppage
brought the city to a standstill. In spite of mass arrests, violence and
several deaths, the people held firm; in the spring of that year, the
company abandoned Bolivia and the government revoked its hated
privatization legislation. With no one to run the local water company,
leaders of the uprising set up a new public company, whose first act was
to deliver water to the poorest communities in the city. Bechtel,
meanwhile, is suing the government of Bolivia for $25 million at the
World Bank's International Centre for the Settlement of Investment
Disputes.

British folk-rocker Billy Bragg has to be the only popular musician who
could score some airtime with a song about the global justice movement.
The first single from Bragg's England, Half English (Elektra),
"NPWA" (No Power Without Accountability), is destined to become an
enduring anthem for anticorporate organizers everywhere. Just before leaving England to tour the United States in April, Bragg took a few minutes to talk with
Nation assistant literary editor Hillary Frey about
globalization, Woody Guthrie, the duty of a political songwriter and,
perhaps most important, why the AFL-CIO should be sponsoring free rock
concerts. A longer version of this interview appears on The
Nation
's website (www.thenation.com).

HF: I've read that you were politicized during the Thatcher years
in England. How did that happen, and how did your politics find their
way into your music?

BB: When Margaret Thatcher was first elected, in 1979, I didn't
vote. Perhaps that was the arrogance of youth.... It was at the height
of punk, and I was titularly an anarchist. Although, frankly, that was
more of a T-shirt than a developed idea. Her second term, between 1983
and 1987, really brought my political education. By then, Thatcher had
started to chip away at the idea of the welfare state and what that
stands for--free healthcare, free education, decent affordable housing
for ordinary people.

Then, the 1984 Miners' Strike [which protested pit closures and paltry
pay increases for workers] was the real politicization for me. I started
doing gigs outside of London in the coal fields and found that I was
able to articulate what I believed in so that these people who we were
doing benefits for--the miners--didn't think I was just some pop star
from London trying to enhance my career by doing a few fashionable
benefits. I began to define myself by something other than the standard
"Blowin' in the Wind" sort of politics, which aren't that hard to
articulate.

HF: You were in New York City when the World Economic Forum [WEF]
met, and I heard you speak about the groups organizing demonstrations. I
recall a comment to the effect of, "If you really want to be doing
something active and participatory you would organize your local
McDonald's." What are your opinions on the tactics of the global justice
movement?

BB: I feel very strongly that the movement is a positive thing.
The fact that it hasn't yet defined itself in a clear ideological way
doesn't mean that it won't eventually. I feel very much on the
activists' side. However, I don't believe you can change the world by
smashing up fast-food joints.

My approach is perhaps a little more traditional left; I believe that if
you want to change the world, as I said, you should be organizing
fast-food joints. To me, that is a positive way of changing the world.
It's a lot slower, and it won't get you on CNN. But the sort of
campaigns that I've worked with in the USA--Justice for Janitors,
living-wage initiatives in LA and cities like that--have all been rooted
in labor organizing.

HF: How did your relationship with the labor movement evolve?

BB: I made a very strong bond with the labor movement in England
during the Thatcher years, particularly during the Miners' Strike. And
those bonds have stood me in good stead when coming to a country like
the United States, where not only are the politics very different from
the ideological politics of my own country, but I'm a foreigner. As an
internationalist I support UNITE, who are trying to end sweatshop labor
in the clothing industry; we're doing that in the UK as well. That is
the sort of internationalist angle prevalent in the global justice
movement too, and it's something that I can support across borders.

HF: I was surprised to see that your tours are actually sponsored
by a union.

BB: I've just come off a tour actually, that was sponsored by the
GMB, which is one of our general unions.

HF: I can't imagine a union being involved in a concert here in
the United States.

BB: I know! In 1992 I participated in a concert in Central Park
marking the eightieth birthday of Woody Guthrie that was sponsored by
one of the big soft-drink companies. Now why could it not have been
sponsored by the AFL-CIO? Why couldn't the AFL-CIO say, "This is what we
do, we put on free gigs." This is what unions do--bring people together.
The unions have been doing this in the UK for a while, and certainly all
over continental Europe. I've been doing gigs in Italy and France
organized by the big unions there for the last two decades.

How do you explain to young people what unions are for--do you wait
until they're in trouble? Do you wait till they're in a dead-end job?
Wait till they're fired? Or do you get in before with some positive
ideas of what a union is?

HF: Speaking of Woody Guthrie... A few years back you recorded,
with the band Wilco, Mermaid Avenue Vols. I and II--two records
comprising songs written around unrecorded Woody Guthrie lyrics. How did
you get to be the lucky one rooting around in the Guthrie archives and
recording his words?

BB: Woody Guthrie is the father of my tradition--the political
singer/songwriter tradition. I've tried to answer the question of why
[Woody's daughter] Nora chose to give me the great honor of being the
first one in her father's archives.... I guess Nora saw something in my
experience that she thought chimed in with Woody's. Who writes about
unions in the United States and the song gets on the charts? All of the
postwar singer/songwriters have grown up in a nonideological atmosphere.
Their influences have been single issues like the civil rights movement,
Vietnam, campaigning for the environment. There's not been that whole
ideological struggle really going on in the USA.

HF: Is it harder to write political music now than it was when
you started?

BB: It's much more difficult to do this now, without Margaret
Thatcher and Ronald Reagan and the Berlin wall and apartheid--these
things were shorthand for struggles that went on across the world. Now I
don't miss any of those things; I have absolutely no nostalgia for the
1980s whatsoever, and I never want to see any of those things again. But
the job of the political singer/songwriter is perhaps more challenging
because, with a subject like identity, which I deal with on England,
Half English
, it's personal--it means different things to different
people.

HF: But it's clear there is plenty happening now to respond to.
The single from your new record, "NPWA" (No Power Without
Accountability), strikes me as a paean to the global justice movement.

BB: The job of the singer/songwriter is to try to reflect the
world around him, and obviously the global justice movement has been the
big cause célèbre since Seattle. When I was in New York in
February, there was stuff I saw going on the like of nothing I've ever
seen on the left before.

I went to a Methodist Church where activists were speaking about how
they were going to organize the demonstrations [around the WEF] two days
later. They asked me to sing a couple of songs so I sang "NPWA"--and
then they wanted me to sing the "Internationale," and that really
touched me, because we do have a strong tradition on the left, and one
of the things we have to gain from the demise of the Stalinism of the
Soviet Union and the Berlin wall is that we have an opportunity to
create a leftist idea outside the shadow of totalitarianism. And there,
in New York, among very radical young people, I thought, "OK--this isn't
really so different from what I know. It's just a different approach to
get to the same place." And the fact that I've been doing this for
twenty years and people are still interested--I feel fortunate. I figure
I must be hitting some bases.

England, Half English is available now from Elektra Records.

A report from Porto Alegre on the "antiglobalization" movement.

As January turned into February, the most important people in the world gathered themselves together in midtown Manhattan for the annual World Economic Forum. Normally held in Davos--the Swiss ski resort previously famous for being the site of Thomas Mann's The Magic Mountain--the meeting was shifted to New York this year as an act of solidarity with a city wounded on September 11.

Healing, though, wasn't much in evidence. To protect the 3,000 delegates--businesspeople, academics, journalists and random celebrities--the area around the Waldorf-Astoria was sealed off with metal fences, dump trucks filled with sand and 4,000 members of the NYPD. Of course, the intention was to keep out the thousands of activists who'd come to protest them, not to mention terrorists who might dream of taking out a good chunk of the global elite in one deadly action.

Thankfully, no mad bombers showed up. And though the protesters were kept well away from what was dubbed the Walled-Off-Astoria, their influence was nonetheless clearly felt. One attendee, Bill Gates, the richest person on earth, actually welcomed them, saying: "It's a healthy thing there are demonstrators in the streets. We need a discussion about whether the rich world is giving back what it should in the developing world. I think there is a legitimate question whether we are."

That Gates said something like that--leaving aside for a moment just what it means--is one sign of how the political environment has changed over the past few years. Another is the evolution of the WEF itself. The forum was founded in 1971 by Klaus Schwab, a Swiss professor of business, policy entrepreneur and social climber. At first it was a quiet and mostly European affair, with executives and a few intellectuals discussing the challenges of what was not yet called "globalization." But it grew over time, gaining visitors from North America and Asia, and by the 1990s had emerged as a de rigueur gathering of a global elite. In fact, it's been one of the ways by which that elite has constituted itself, learning to think, feel and act in common.

Corporate and financial bigwigs--who pay some $25,000 to come--dominate the guest list, but they also invite people who think for them, entertain them and publicize them, for whom the entrance fee is waived. Star academic economists were also on the list of invitees (bizarrely marked "confidential," so I had to swipe a copy), alongside some unexpected names: cultural theorist Homi Bhabha, columnist Arianna Huffington and model Naomi Campbell. And lots of religious figures, NGO officials and union leaders--who, to judge from their press conferences, didn't feel very well listened to. It seems not much communication goes on across the vocational lines; Berkeley economist Brad DeLong, a first-timer, theorized that "one reason that the princes of the corporate and political worlds are where they are is that they are very good at staying quiet when baited by intellectuals."

And DeLong was in the same room with them. Most journalists covering the event weren't so lucky. The WEF designated a handful of clubbable correspondents from places like the New York Times and CNBC as "participating press" and allowed them to mingle with the delegates at the Waldorf. But several hundred others, dubbed "the reporting press," were penned up in a couple of cramped "media centres" in a neighboring hotel. The terms are fascinating. Clearly the participating press participates in the inner workings of power and helps create its mystique. But the reporting press couldn't really report at all: We got to watch some of the sessions on closed-circuit TV (only the big, more formal ones--the intimate brainstorming sessions were strictly private), to read sanitized summaries distributed by the WEF staff and to view a few dignitaries at press conferences, which were generally too short to allow more than a few perfunctory questions.

Not only were we barred from newsworthy events--we weren't even told they were happening. In one of them, Treasury Secretary Paul O'Neill explained bluntly that the Bush Administration let Argentina sink into total crisis rather than engineer a bailout because "they just didn't reform," apparently forgetting that the country was once praised as a model of economic orthodoxy. In another, Colin Powell asserted the right of the United States to go after "evil regimes" as it sees fit--harsh language from the Administration's resident dove. Neither speech went down well with a good bit of the audience; anxiety at Washington's unilateralism was one of the recurrent themes among non-US delegates.

The gathering's mood was clearly troubled. Back in the 1990s, when the US economy was booming, trade barriers were falling and the New Economy was still new, the temper of the gatherings was reportedly pretty giddy. Now, the headlines are full of bad news--Enron, Argentina, recession, terrorism, protest. And the conference reflected it.

Businesspeople and academics mused on how to deal with new risks--you can't hedge against bioterrorism in the futures markets. Economists debated which letter would best describe the US economy--a V (sharp fall followed by a quick recovery), a U with a saggy right tail (long stagnation, weak recovery) or, most appropriate, a W (false recovery followed by a fresh downdraft). The consensus leaned away from the V toward the saggy U, with the W not to be ruled out.

But there were things more profound than the business cycle to worry about. As the Washington Post noted with apparent surprise, "The titles of workshops read like headlines in The Nation: 'Understanding Global Anger,' 'Bridging the Digital Divide' and 'The Politics of Apology.'" Most prominent among those concerned with poverty were the duo of Gates and his new friend Bono, the lead singer of U2. Bono--who identified himself on opening day as a "spoiled-rotten rock star" who loves cake, champagne and the world's poor--hammered at the need for debt relief. (It's easy to make fun of him, but activists are quick to point out that his influence is much to the good.) Gates kept reminding everyone that about 2 billion people live in miserable poverty. Of course, no one was rude enough to point out that Gates's personal fortune alone could retire the debts of about ten African countries.

It's hard to believe this is much more than talk, however. Addressing poverty and exclusion would require WEF attendees to surrender some of their wealth and power, and they're hardly prepared to do that. Stanley Fischer, formerly the second in command at the IMF and now a vice chairman of Citigroup, expressed "profound sympathy" for the people of Argentina but then worried about "political contagion"--the risk that other countries, seeing the crisis there, might reject economic orthodoxy.

Further insight into the WEF mindset was provided by Fischer's panelmate, South African Finance Minister Trevor Manuel. According to Manuel, during the (private) WEF discussions, "poverty was defined...as the absence of access to information," which would be news for anyone struggling to pay the rent. More urgently, he pointed out that "uprisings occur because ordinary people don't feel that they have voice and representation." To ward off that danger, policy-makers must worry about "equity"--which he carefully distinguished from "equality." When I asked him to expand on this distinction, Manuel said, "There are different conceptions of equality to start with. There's equality of opportunity and equality of outcome. But equity is about creating stakeholders. For example, both employers and employees have a stake in good labor practices." When I said that that sounded like it was more about changing perceptions rather than material reality, he said, "It's all those things. It's all those things." Manuel also revealed that the participants had "interesting, interesting debates on whether we should ask business, in the conduct of business, to act ethically or whether it's OK for business to be unethical in the conduct of business and then have some spare cash to do good with." No wonder people pay $25,000 to play this game.

And it's no wonder that on the closing day, a panel of union leaders--five out of some forty who were there, including AFL-CIO president John Sweeney--gave a very downbeat assessment of the forum's dedication to a real adjustment of policy. Sweeney, the most moderate of the group, said that the world economy doesn't have an image problem--its problems are structural. Others spoke of CEOs being "in denial," of hearing but not listening.

Unfortunately, though, there were very few union people--leaders or rank-and-filers--demonstrating in the streets that weekend. That would have made quite an impression on the great and good. But Gates's appreciation of the protesters points to what was doubtless the best thing about this year's forum: The 12,000 who marched through midtown Manhattan on February 2 proved that the so-called antiglobalization movement, a global movement if there ever was one, was not put out of business by September 11. It's alive and well--so alive and well that it set much of the WEF's agenda.

On Saturday, February 2, approximately 12,000 demonstrators gathered in New York City to protest the meeting of the World Economic Forum.

The movement can seize the moral high ground and win support for change.

The challenge to global capitalism is more relevant now than before September 11.

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