It's time to ask "borderless" corporations: Which side are you on?
Nothing in modern times has symbolized the scourge of racism--and the potential for overcoming it--more than South Africa's recent history.
It should surprise no one that the European revolutionaries are not inspired by the American dream. Nobody, after all, expected the fighters for national liberation in the post-Napoleonic era to cherish the memory of Metternich, and the United States is now a much mightier pillar of the new Holy Alliance for the preservation of the status quo. It intervenes, directly or by proxy, wherever the social order is threatened, from Taiwan to Greece to Guatemala. Whenever they are under attack, profit and privilege can rely on the forces of "freedom." In Vietnam the American bombers spell out for the local population the bloody message "Better dead than red." The Green Berets are ready to jump in order to rescue the ruling oligarchies of the banana and other republics of Latin America (though the profits of US companies are now better insured by training local troops for the struggle against "subversion"). Like a black knight in nuclear armor the United States Navy patrols the seas, proclaiming that no more social revolutions will be allowed, that China's in 1949 was the last to be tolerated, while the Cuban affair was simply a misunderstanding. The Vietnamese resistance aroused enthusiasm far from Hanoi and Saigon because it challenged American presumption and proved that human courage still counted even in the world of nuclear balance. The Tet offensive in 1968 drove Western students to action because it revealed that the enemy was not invincible. Che Guevara, alive or dead, was hailed as a symbol of solidarity, of the international nature of the anti-imperialist struggle.
The salesmen of the American dream, and they are legion in Europe, prefer to bypass this role of international gendarme, or to justify it in terms of domestic achievement. They point to the democratic niceties, to the civil liberties the United States can still afford. They stress even more the economic achievement, the technological lead, the intellectual investment that vast accumulation has rendered possible, the level of research and management, the high productivity--in short, the superior wealth of the nation; and they turn to the young revolutionaries with the rhetorical question: Can you dismiss the American model in spite of all this? The answer is not in spite of it but because of it. The most frightening prospect, the American nightmare, is that with so much wealth man should not be able to build a different kind of society. In fact, the Europeans are merely echoing the indictment of America's New Left which, instead of being dazzled by the moon, points to the dark side of American society; its inequality and racism, its collective poverty and private plenty, its derelict health services, its belated discovery of pollution and urban chaos--and to the system responsible for it all.
To its admirers, the United States has discovered the secret of perpetual motion for capitalism. Advertising, as a new dynamic method of sales promotion, is a way of getting rid of industrial surpluses superior to that of coffee burning in agriculture. Above all, with military expenditures absorbing, even in official figures, about one-tenth of the national product, the state has a powerful lever to direct the rhythm of output. Advanced capitalism differs from its predecessor. The vagaries of the cycle are less pronounced, unemployment is relatively smaller, growth comparatively more regular. This is not the place to discuss whether this post-Keynesian equilibrium, resting on a militarization of the economy unprecedented in peacetime, is stable and lasting. The painful discovery of America's rulers is that even while the going is good, the system runs into new contradictions. American expansion meets resistance at home, as well as abroad. The outsiders rebel. The hitherto passive blacks refuse to continue being pariahs in the alleged land of plenty. The growing movement of protest among students and the radical part of the intelligentsia is a symptom of something deeper--the clash between the direction to which the expansion of productive forces is geared and the social needs of our age.
The "consumer society" is a misnomer suggesting that at least, as regards consumption, the average citizen is the uncrowned King. Though his material conditions have in many ways improved beyond recognition, modern man is still an alienated producer and a highly conditioned buyer of goods, a dissatisfied purchaser of leisure and pleasure with very little control over his environment. A producer society, guided by industrial and commercial profit, would be a much more accurate description. That problems such as pollution and urban decay are tackled only when they become unbearable is in the logic of things. Modern capitalism has changed enough in method and manner to face up to the unprofitable when it is under pressure. But it has preserved its essence. Profit remains its ultimate driving force, and it is intrinsically unable to confront the collective or individual problems of our society from any other angle. Consciously or unconsciously, this is what the protest is really about.
The similarity of some of its manifestations on both sides of the Atlantic is quite natural. The Englishman, the Frenchman or the German traveling in the United States is less struck by contrasts than by resemblances. He has the strange impression of making a journey through his own country's more or less distant future. For the most political among them, however impressed they may be by the technological progress, it is a journey to night's end. They know that this is their inevitable prospect unless Europe can forge a different kind of society. The bitter controversies between "Europeans" and "anti-Europeans" are really irrelevant in this context. The conflict that has begun cuts across continental as well as national frontiers. The European protesters who look ahead are joining hands with America's New Left. In Western Europe the real division is between those who seek socialism and those who opt for the American model. "Et tout le reste est littérature." It was no accident if during the French May crisis the United States authorities trembled for the fate of Gaullism. They sensed, quite rightly, that the forces then launching the assault against Gaullism are the same that are waging the struggle against Europe's American future.
The conflict is now intercontinental, and so is the solidarity. Revolutionary "grouplets" across Western Europe used to look exclusively to the Third World, to the Vietnamese or the Latin American guerrillas fighting against imperialism from without. They are now also looking to America's young radicals, who are beginning to carry on the same struggle from within. By the same token, they have discovered their own independent and intermediate role.
In mood at least, there are some parallels between the present period and the middle of the 19th century in Europe. Then, too, solidarity was the order of the day, and during the so-called "Spring of the People," fighters for national liberation journeyed from country to country battling "for your freedom and ours." Now, whatever policemen may think, direct intervention is still rare. The community of purpose and struggle is nevertheless growing. Europe's young students and workers salute their fellows across the Atlantic with the new message: "Against your present and our future."
West wind, east wind.... There is nothing new in the violent reaction of Europe's radicals against American interventionism nor in their hostile rejection of the American model. The real novelty is that the Soviet Union has practically vanished as a counter-attraction. During the French crisis there were many references to the Bolshevik October, but none, apart from contemptuous dissociation, to the bureaucratic rule of Stalin's heirs. This antagonism or indifference to the Soviet model--revisionist for some, Stalinist for others, irrelevant for most--characteristic of the May movement, was one of the reasons why orthodox Communists viewed it from the start with deep mistrust. Yet even the orthodox in the West are by now highly discreet about citing the Soviet Union as an example. They are particularly reticent about dwelling on the prospects of the Soviet bloc since the invasion of Czechoslovakia.
Spring in 1968 flourished in unison in Paris and Prague, but hopes faded separately. The French crisis was over, at least temporarily, by the time the Russian tanks rolled into Prague on August 21, and their invasion marked the beginning of the end of the unique experiment of Czech students and workers. The epilogue in Prague came after the French act, and thus could not affect it. But it has affected the European horizon. The Czech tragedy throws a new light on the problem of the dismantlement of Stalinism in Eastern Europe. It makes it necessary to reassess the hope of a Socialist revival within the Soviet bloc and, by the same token, the chances that inspiration in Europe may once again come from the East.
Mexico's Zapatista community is protesting the commercial exploitation of the country's ecological riches.
Toward a North American economic community.
In Canada, Maude Barlow gave a stirring speech criticizing the free-trade agenda of the Summit of the Americas.
A campaign to help sick people in need of unaffordable medicines is clashing with forces in the global pharmaceutical industry.
With NAFTA as an ugly precedent, the proposed trade pact is generating serious opposition from a number of social and economic sources.
When NAFTA was adopted in 1993, Chapter 11 in the trade and investment agreement was too obscure to stir controversy. Eight years later, it's the smoking gun in the intensifying argument over whether globalization trumps national sovereignty. Chapter 11 established a new system of private arbitration for foreign investors to bring injury claims against governments. As the business claims and money awards accumulate, the warnings from astute critics are confirmed--NAFTA has enabled multinational corporations to usurp the sovereign powers of government, not to mention the rights of citizens and communities.
The issue has exquisite resonance with the present moment. On April 20 thirty-four heads of state gather in Quebec City to lead cheers for a Free Trade Area for the Americas. The FTAA negotiations are designed to expand NAFTA's rules to cover the entire Western Hemisphere. The Quebec meeting should provide good theater but not much substance. Tony Clarke of the Polaris Institute, in Ottawa, says the meeting is intended to be "a face lift for the whole global agenda, by portraying free trade as democracy." Protesting citizens will be in the streets, challenging 6,000 police and Mounties, with an opposite message: Democracy is threatened by the corporate vision of globalization.
Chapter 11 of NAFTA should become a defining issue for FTAA negotiations. Many, including Clarke, vice chairman of the Council of Canadians, believe corporate governance was and is the FTAA's intent. "There is a conquering spirit at the heart of all this," he says, adding that the corporations' attitude is: "We have to get into every nook and cranny of the world and make it ours."
Chapter 11 provides a model of how this might be accomplished. The operative principle is that foreign capital investing in Canada, Mexico and the United States may demand compensation if the profit-making potential of their ventures has been injured by government decisions--"tantamount to expropriation." Thus, foreign-based companies are given more rights than domestic businesses operating in their home country. For example:
§ California banned a methanol-based gasoline additive, MTBE, after the EPA reported potential cancer risks and at least 10,000 groundwater sites were found polluted by the substance. Methanex of Vancouver, British Columbia, the world's largest methanol producer, filed a $970 million claim against the United States. If the NAFTA panel rules for the company, many similar complaints are expected, since at least ten other states followed California's lead. The federal government would have to pay the awards. California State Senator Sheila Kuehl and others have asked the US Trade Representative to explain how this squares with a state's sovereign right to protect health and the environment.
§ In Mexico, a US waste-disposal company, Metalclad, was awarded $16.7 million in damages after the state of San Luis Potosí blocked its waste site in the village of Guadalcazar. Local residents complained that the Mexican government was not enforcing environmental standards and that the project threatened their water supply. Metalclad's victory established that NAFTA's dispute mechanism reaches to subnational governments, including municipalities.
§ In Canada, the government banned another gasoline additive, MMT, as a suspected health hazard and one that damages catalytic converters, according to auto makers. The Ethyl Corporation of Virginia, producer of MMT, filed a $250 million claim but settled for $13 million after Canada agreed to withdraw its ban and apologize.
§ The Loewen Group Inc., a Canadian operator of far-flung funeral homes, lodged a $750 million complaint against the United States, claiming that a Biloxi, Mississippi, jury made an excessive award of $500 million when it found Loewen liable for contract fraud against a small local competitor.
§ Sunbelt Water Inc. of California has filed the largest and most audacious claim--seeking $10.5 billion from Canada for revoking its license to export water by supertanker from British Columbia to water-scarce areas of the United States.
§ Canada's Mondev International is claiming $50 million from the United States because the City of Boston canceled a sales contract for an office building with a shopping mall. Boston invoked sovereign immunity against such lawsuits and was upheld by a local judge and the Massachusetts Supreme Court. The US Supreme Court declined to hear the appeal. So the company turned to NAFTA for relief.
"When just the threat of a Chapter 11 action may suffice to wrest a financial settlement from a government, investors have unprecedented leverage against states," Lydia Lazar, a Chicago attorney who has worked in global commerce, wrote in Global Financial Markets magazine. Mexico, Canada and the United States effectively waived the doctrine of sovereign immunity, she explained, when they signed NAFTA.
As many as fifteen cases have been launched to date, but no one can be sure of the number, since there's no requirement to inform the public. The contesting parties choose the judges who will arbitrate, choose which issues and legal principles are to apply and also decide whether the public has any access to the proceedings. The design follows the format for private arbitration cases between contesting business interests. With the same arrogance that designed the WTO and other international trade forums, it is assumed that these disputes are none of the public's business--even though public laws are under attack and taxpayers' money will pay the fines. The core legal issue is described as damage to an investor's property--property in the form of anticipated profits. The NAFTA logic thus establishes the "regulatory takings" doctrine the right has promoted unsuccessfully for two decades--a retrograde version of property rights designed to cripple or even dismantle the administrative state's regulatory powers. "NAFTA is really an end run around the Constitution," says Lazar.
The fundamental difference in Chapter 11, unlike other trade agreements, is that the global corporations are free to litigate on their own without having to ask national governments to act on their behalf in global forums. Clearly, some of the business complaints so far are more exotic than anyone probably anticipated. These initial cases will set precedents, however, that major global firms can apply later. If nobody stops this process, the national identity of multinationals will become even weaker and less relevant, Lazar points out, since they have status to challenge government as "an open class of 'legal equals.'"
In Canada a private lawsuit was filed recently challenging the constitutionality of Chapter 11, since Canada's Constitution states that the government cannot delegate justice to other bodies. The Canadian government, itself embarrassed by the cases against it, expressed doubt that Chapter 11 should be included in the hemispheric agreement, though it appears to be backing away from outright opposition. In US localities, the cases are beginning to stir questions, but lawmakers and jurists are only beginning to learn the implications.
Does George W. Bush understand what he is proposing for the Americas? Did Bill Clinton and Bush the elder understand the fundamental shift in legal foundations buried in NAFTA's fine print? They knew this is what business and finance wanted. As the public learns more, the smoking gun should become a focal point in this year's trade debate, confronting politicians with embarrassing questions about global governance. Who voted to shoot down national sovereignty? Who crowned the corporate investors the new monarchs of public values?
Many compared it to marching through a dream.
After seven years under siege by 70,000 Mexican Army troops in the
jungles and highlands of Chiapas, the Zapatista National Liberation
Army (EZLN) sent twenty-four delegates, including its pipe-smoking
writer-spokesman Subcomandante Marcos, on a triumphant two-week
motorcade that landed in Mexico City on March 11.
believe that in any place, in any space in this world--and I have the
memory of my own revolution twenty-six years ago--I don't remember a
more moving moment than I lived yesterday," declared the
septuagenarian Portuguese Nobel Prize-winning author José
Saramago the next morning.
The US press coverage of the
march, limited though it was, hinted at such an apotheosis: the
cheering multitudes that greeted the Zapatistas from the roadsides
and at mass rallies in twelve states along the route, the flowery
words of peace and civil rights coming to Mexico's mythical newfound
democracy. But for the Zapatistas and Mexico's indigenous movement,
the struggle now turns into a battle to codify the movement's
progress into law.
The caravan came to demand
constitutional recognition for Mexico's 10 million indigenous
citizens, subjected to generations of repression, poverty, racism and
exploitation of their lands and labor. As Mexico's President Vicente
Fox passed his hundredth day in office, he reiterated calls to the
Zapatistas to negotiate a peace. Not until the government fulfills
the promises it has already made, answered the rebels: release of
Zapatista political prisoners, closure of seven of the 259 military
bases in Chiapas, and congressional passage of the law that would
ratify the 1996 San Andrés peace agreements signed by the
government [see Jerry W. Sanders, "Two Mexicos and Fox's Quandary,"
The geographical advance was accompanied by a
steady rise in the popularity of Marcos and the Zapatistas in opinion
polls, an average gain of two percentage points per day, with over 50
percent in support. The implementation of the San Andrés
Accords is now the sticking point. Marcos and the Zapatistas, with
more than 1,000 delegates from the Indigenous National Congress,
encamped at the base of Mexico City's Cuicuilco pyramid--a circular,
370-foot-diameter stone monument that has survived at least 2,600
years of lava flows, earthquakes and urban
Underscoring their credo, "We will not sign a false
peace," the Zapatistas caused a fierce uproar when, as the caravan
was launched from San Cristóbal, Chiapas, they named architect
Fernando Yáñez Muñoz as their representative to
the federal Congress. Mexican police agencies have long claimed that
Yáñez is Comandante Germán, the feared national
guerrilla leader of the 1970s and '80s who, they say, helped found
the Zapatista army in the jungle in 1983, a charge that
Yáñez has denied. The Zapatistas have also, for the
first time, called upon other guerrilla movements to protect their
journey and remain alert, implying that if the state doesn't keep its
word, an armed guerrilla response could explode
María Luisa Tomasini, 78, a Chiapas
native designated by Marcos as the "grandmother of all the
Zapatistas," analyzed his call to the other insurgent groupsas she
was returning from the March 7 Zapatista rally in Iguala, Guerrero, a
state with at least sixteen armed clandestine guerrilla
organizations. "Clearly," she said, "it was a threat to the
government that it had better comply."
The powerful sectors
that have always gotten their way in Mexico--bankers, chambers of
commerce chiefs, right-wing clergy, the TV networks and key
legislators--are working furiously to sabotage the road to a genuine
peace. Fox's party, the PAN, teamed up with the former ruling party,
the PRI, against the left-wing PRD party to propose that the
Zapatistas meet with twenty congressional leaders instead of the
entire Congress. Marcos, noting that the indigenous of Mexico have
always been hidden "in the kitchen, on the back porch," rejected the
offer, arguing that the Zapatistas and the Indigenous National
Congress deserve to address the whole Congress. Hard-liners continue
to seek any roadblock to passage of the full indigenous rights bill
with hysterical claims that autonomy would fracture the nation, and
they vow radical surgery to the initiative.
On March 19 the
Zapatistas announced they will return to the jungle, citing the
"close minded" attitude of "cavemen politicians," saying, "Nothing
will be able to stop the popular mobilization" that stems from the
Congress's failure to act. "We will return with everyone who we are."
Immediately, thirteen national peasant-farmer groups pledged
nationwide marches, students plotted direct action and five major
indigenous groups in Oaxaca vowed to close the Pan American Highway
until Congress passes the accords. Congressional leaders begged the
Zapatistas to stay, Fox urged the Congress to meet with the rebels
and the drama now moves in unpredictable directions.
guiding principle of the San Andrés Accords is autonomy. The
word has galvanized many beyond Mexico's indigenous populations. The
battered Mexican left--peasant farmers, urban workers and especially
the nation's youth--view themselves, too, under the banner of
autonomy. Indeed, the popularity of the Zapatista struggle around the
world derives at least in part from the coherent language of
opposition to globalized and savage capitalism that they have
constructed. French sociologist Alain Torraine, who accompanied the
caravan, praised the Zapatistas during a March 12 discussion with
Marcos and the comandantes in Mexico City, marveling, "The entire
world, and we are speaking of the left, is looking for a new
language." Comandante David, a Tzotzil delegate who was a chief
negotiator and architect of the San Andrés Accords,
acknowledges that the demand for autonomy goes far beyond indigenous
rights. "We are going to explain directly to the indigenous and
nonindigenous brothers of the country that indigenous rights are for
the good of all the peoples," he said while preparing to leave on the
Autonomy--what might be called "home rule" in
other parts of the world--includes local control of land use, a sore
point for big business in Mexico, its eyes on natural
Beyond Mexico, US investors and corporate
interests, with expectations that Fox will be the most effective
deliveryman yet of Mexican resources under NAFTA, are stoking the
subterfuge. Former US Ambassador to Mexico James Jones, now a
railroad baron and rainmaker for the Manat, Phelps and Phillips law
and lobbying firm in Washington, is on the board of directors of TV
Azteca, the most notorious manipulator of public opinion among all
the Mexican media. TV Azteca joined the other broadcasting giant,
Televisa, to present a March 3 Concert for Peace live from Aztec
Stadium, featuring a laser light show, a Woodstock-style logo and the
usual condescension toward "our indigenous brothers." The prepackaged
video aired with the concert didn't mention autonomy, or indigenous
political prisoners, or 500 years of conquest--certainly not justice
in connection with the 1997 massacre of unarmed indigenous peasants
at Acteal. The only proposed solution was to send aid to the poor,
barefoot indigenous communities, an approach known in Mexican
politics as "clientism." Many analysts saw Fox's fingerprints on the
TV peace show, as both stations rely on state permission to broadcast
in Mexico. Indeed, one of the demands of the San Andrés
Accords is the right of indigenous peoples to break that control by
forming their own media, including the use of radio and television
The question of indigenous autonomy also has
consequences for the US-imposed "war on drugs." The San Andrés
Accords would restore indigenous rights to the use of currently
illicit sacred plants and codify the pre-eminence of ancient forms of
community justice. Luciano, a spokesman for the Zapatista community
of Polho, explained to me in 1998 how the autonomous system works
without constructing a single prison cell: "If a young man grows
marijuana, he goes before a municipal judge to be disciplined and
oriented so that he won't ever do it again. If the youth does it
again, there is no response whatsoever: He cannot be pardoned a
second time. He would then be expelled from the
That the Zapatista communities have had far
more success in driving out the narcotraffickers and preventing drug
and alcohol abuse than any other region of the Americas is of little
concern to the big talkers of law and order. Opponents charge that
autonomy in matters of criminal justice would "balkanize" the country
and subvert the "rule of law."
Indigenous and social
movements across Latin America--in Ecuador, Colombia, Bolivia, Peru,
Panama, Brazil and other nations--had representatives quietly
observing the caravan. In spite of the powers stacked against them,
the Zapatistas, newly strengthened, their national support deepened,
have many cards yet to play in forcing legislative victory. In the
latest of the ironies under NAFTA, autonomy may thus, and soon,
become Mexico's leading export product.