Globalisation's positive power

Nobel Prize winner and former Clinton economic advisor Joseph Stiglitz believes in the positive powe

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Many Americans are counting down the hours until George W. Bush leaves the Oval Office. Joseph Stiglitz, though, has gone further than most. He keeps a special clock at home just so he can see precisely how long there is to go.

The Nobel Prize winner has never been afraid of controversy, but he's not exactly alone when he says in his view things can only get better the second the countdown reaches zero and Bush moves out of the White House.

With his lack of pretensions and easy-going style Stiglitz seems more like a favourite uncle than a world-renowned economist, academic, and former presidential advisor as he chats over a cup of coffee.

His ability to put complicated concepts into easy-to-digest nuggets has endeared him greatly to the media, but also explains why his books on globalisation and economics have a far greater reach than most economists could dream of.

As he whisks around the globe, stopping in Korea and London, before heading back to Columbia University, Stiglitz has plenty to say about what the US needs to do to improve its relationship with the rest of the world and where it has taken wrong turnings. "At the end Americans will look back at a failed presidency that turned its back on the international community."

But Stiglitz is interested in more than critiquing the Bush presidency; he is campaigning for a new type of globalisation, one that puts a more equal and fair global society at its heart, and for less pressure from the US-influenced global development institutions to impose a one-size-fits-all free market, pro-privatisation model.

“The US has pushed a particular model on the rest of the world. It might work for America, but is totally not acceptable in many other parts of the world where a sense of social solidarity is important or need to be important for those societies to function.”

Where developing powers India and China have resisted US-led pressure to move towards instant privatisation of state functions, and refused to swing open their doors to multi-nationals without qualification, they have created much stronger societies, Stiglitz argues.

“These countries managed globalisation: it was their ability to take advantage of globalisation, without being taken advantage of by globalisation, that accounts for much of their success."

More transparency, easier to access information, and stronger civil societies are wearing away some of the power in the relationship between the developing and developed countries, he argues.

"Using the internet … they can see what is going on in a way that we might not like," he says relating a story about the recent US-Korea bi-lateral talks where, after the US negotiators had finished a deal they told the Koreans was good and fair, the write-up on the US government website told a different story. "Basically it said: 'we managed to screw the Koreans'.” Korean access to that information is likely to have a powerful influence on future negotiations.

With the US presidential primaries in full swing, the timing may be right for this man with global stature, and the ear of influential Democrats, to be heard by policy makers back home.

Knowledge of foreign policy and the continuing role of the US in Iraq have both emerged as part of the cut and thrust of debates between Barack Obama and Hillary Clinton as they tussle for votes. And Stiglitz has a lot of knowledge and experience to offer. He acknowledges that he has regular conversations with the three Democratic front runners, and you can imagine he is likely to be snapped up as an advisor by the Democratic candidate next year.

A long-time critic of the IMF, even in his World Bank days, Stiglitz can help build a wide base of support. He can find common ground with anti-globalisation lobbyists who cluster around Naomi Klein when he speaks of the damage Bush and his acolytes have done to the UN and other multilateral institutions, but the Nobel Laureate has far more than journalistic railing and emotion in his armoury.

Klein would no doubt agree with Stiglitz that: “The damage that has been done by Bush has been huge… the damage to the World Bank is huge, the damage to the UN is huge.”

But Stiglitz is not an anti-globalisation campaigner; just someone who believes it can be done better and to the benefit of the many, not the few. He is busy spreading his message that globalisation is not yet benefiting the world's poorest and then setting out his prescription for how to make it work.

Narrowing the gap between the richest and poorest with a strong state at the core is the only way for globalisation to work in his view. The poorest suffer the most insecurity in a global economy, but if it is to work they too must benefit from opening trade doors and jobs to international competition. In the past, he says, “when people have talked about globalisation they have talked about the impact it has had on GDP but they don’t talk about the impact it has on disparities. The way globalisation has been managed has meant increasing disparities in many parts of the world, both in developed and developing countries.”

Not only does he argue for safety nets of various kinds – medical and educational among them – as essential in creating a more secure and stable society in developing countries, but he applies these principles to the US as well.

These principles – including a centralised national health care system – have always been considered surprisingly radical in the US, but he is not alone when he says the pendulum is swinging towards significant reform.

“All the candidates have been forced to address the questions of what are they going to do about the health care crisis in the US?”

Stiglitz believes that high levels of inequality in the US have started to change people’s views about the role of the state. Inequality has grown under Bush and has even started to undermine that greatest of national myths – the American dream.

He argues plausibly for greater emphasis on equality in development theory and practise. This, he believes, will help create greater stability and security internationally.

“The argument has always been that [if] the country is a whole lot better off…those that have gained could compensate the losers, but the problem is under Bush that hasn’t happened. Rather than trickledown it has been trickle up.”

Inequality, he argues, produces social unrest. “I believe that it is important for countries to focus on equity, on ensuring that the fruits of growth are widely shared,” he says.

"The people at the bottom keep paying the price. We could compensate them, we could help them share more the fruits…by improving education, and having more progressive taxation. Under Bush we have done just the opposite and I think that is part of the social tension in America.”

And who can find fault with his campaign to bring the same kind of democracy and transparency to international development organisations such as the World Bank and IMF? It seems only fair that these international organisations should have a clearer voting structure, and the public should know how they come to decisions, as they would with their own governments.

He argues idealistically for a fairer world built not on the single pillar of the market, but on three more — government, individuals and community. As someone who has worked in the highest levels of both academia and politics, he offers more than just analysis; he provides a set of potential policy solutions - and that is his advantage over other critics of US foreign policy and development theory.

It may be stating the obvious to say that free trade will not bring equal benefits while everyone has different levels of skills, but sometimes the obvious needs to be stated and re-stated, until the time is right to hear it. And Stiglitz isn't giving up.

A version of this article was first published in the Fabian Review. Check out the society's website for details of the Fabian Society Change the World conference on 19 January in association with the New Statesman

title="Link to posting">In conversation with Joseph Stiglitz

Rachael Jolley talks to Bill Clinton’s ex-economic adviser about the positive power of globalisation and other issues ahead of the Fabian foreign affairs conference on 19 January in association with the New Statesman

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The French millennials marching behind Marine Le Pen

A Front National rally attracts former socialists with manicured beards, and a lesbian couple. 

“In 85 days, Marine will be President of the French Republic!” The 150-strong crowd cheered at the sound of the words. On stage, the speaker, the vice-president of the far-right Front National (FN), Florian Philippot, continued: “We will be told that it’s the apocalypse, by the same banks, media, politicians, who were telling the British that Brexit would be an immediate catastrophe.

"Well, they voted, and it’s not! The British are much better off than we are!” The applause grew louder and louder. 

I was in the medieval city of Metz, in a municipal hall near the banks of the Moselle River, a tributary of the Rhine from which the region takes its name. The German border lies 49km east; Luxembourg City is less than an hour’s drive away. This is the "Country of the Three Borders", equidistant from Strasbourg and Frankfurt, and French, German and French again after various wars. Yet for all that local history is deeply rooted in the wider European history, votes for the Front National rank among the highest nationally, and continue to rise at every poll. 

In rural Moselle, “Marine”, as the Front National leader Marine Le Pen is known, has an envoy. In 2014, the well-spoken, elite-educated Philippot, 35, ran for mayor in Forbach, a former miner’s town near the border. He lost to the Socialist candidate but has visited regularly since. Enough for the locals to call him “Florian".

I grew up in a small town, Saint-Avold, halfway between Metz and Forbach. When my grandfather was working in the then-prosperous coal mines, the Moselle region attracted many foreign workers. Many of my fellow schoolmates bore Italian and Polish surnames. But the last mine closed in 2004, and now, some of the immigrants’ grandchildren are voting for the National Front.

Returning, I can't help but wonder: How did my generation, born with the Maastricht treaty, end up turning to the Eurosceptic, hard right FN?

“We’ve seen what the other political parties do – it’s always the same. We must try something else," said Candice Bertrand, 23, She might not be part of the group asking Philippot for selfies, but she had voted FN at every election, and her family agreed. “My mum was a Communist, then voted for [Nicolas] Sarkozy, and now she votes FN. She’s come a long way.”  The way, it seemed, was political distrust.

Minutes earlier, Philippot had pleaded with the audience to talk to their relatives and neighbours. Bertrand had brought her girlfriend, Lola, whom she was trying to convince to vote FN.  Lola wouldn’t give her surname – her strongly left-wing family would “certainly not” like to know she was there. She herself had never voted.

This infuriated Bertrand. “Women have fought for the right to vote!” she declared. Daily chats with Bertrand and her family had warmed up Lola to voting Le Pen in the first round, although not yet in the second. “I’m scared of a major change,” she confided, looking lost. “It’s a bit too extreme.” Both were too young to remember 2002, when a presidential victory for the then-Front National leader Jean-Marie Le Pen, was only a few percentage points away.

Since then, under the leadership of his daughter, Marine, the FN has broken every record. But in this region, the FN’s success isn’t new. In 2002, when liberal France was shocked to see Le Pen reach the second round of the presidential election, the FN was already sailing in Moselle. Le Pen grabbed 23.7 per cent of the Moselle vote in the first round and 21.9 per cent in the second, compared to 16.9 per cent and 17.8 per cent nationally. 

The far-right vote in Moselle remained higher than the national average before skyrocketing in 2012. By then, the younger, softer-looking Marine had taken over the party. In that year, the FN won an astonishing 24.7 per cent of the Moselle vote, and 17.8 per cent nationwide.

For some people of my generation, the FN has already provided opportunities. With his manicured beard and chic suit, Emilien Noé still looks like the Young Socialist he was between 16 and 18 years old. But looks can be deceiving. “I have been disgusted by the internal politics at the Socialist Party, the lack of respect for the low-ranked campaigners," he told me. So instead, he stood as the FN’s youngest national candidate to become mayor in his village, Gosselming, in 2014. “I entered directly into action," he said. (He lost). Now, at just 21, Noé is the FN’s youth coordinator for Eastern France.

Metz, Creative Commons licence credit Morgaine

Next to him stood Kevin Pfeiffer, 27. He told me he used to believe in the Socialist ideal, too - in 2007, as a 17-year-old, he backed Ségolène Royal against Sarkozy. But he is now a FN local councillor and acts as the party's general co-ordinator in the region. Both Noé and Pfeiffer radiated a quiet self-confidence, the sort that such swift rises induces. They shared a deep respect for the young-achiever-in-chief: Philippot. “We’re young and we know we can have perspectives in this party without being a graduate of l’ENA,” said another activist, Olivier Musci, 24. (The elite school Ecole Nationale d’Administration, or ENA, is considered something of a mandatory finishing school for politicians. It counts Francois Hollande and Jacques Chirac among its alumni. Ironically, Philippot is one, too.)

“Florian” likes to say that the FN scores the highest among the young. “Today’s youth have not grown up in a left-right divide”, he told me when I asked why. “The big topics, for them, were Maastricht, 9/11, the Chinese competition, and now Brexit. They have grown up in a political world structured around two poles: globalism versus patriotism.” Notably, half his speech was dedicated to ridiculing the FN's most probably rival, the maverick centrist Emmanuel Macron. “It is a time of the nations. Macron is the opposite of that," Philippot declared. 

At the rally, the blue, red and white flame, the FN’s historic logo, was nowhere to be seen. Even the words “Front National” had deserted the posters, which were instead plastered with “in the name of the people” slogans beneath Marine’s name and large smile. But everyone wears a blue rose at the buttonhole. “It’s the synthesis between the left’s rose and the right’s blue colour”, Pfeiffer said. “The symbol of the impossible becoming possible.” So, neither left nor right? I ask, echoing Macron’s campaign appeal. “Or both left and right”, Pfeiffer answered with a grin.

This nationwide rebranding follows years of efforts to polish the party’s jackass image, forged by decades of xenophobic, racist and anti-Semitic declarations by Le Pen Sr. His daughter evicted him from the party in 2015.

Still, Le Pen’s main pledges revolve around the same issue her father obsessed over - immigration. The resources spent on "dealing with migrants" will, Le Pen promises, be redirected to address the concerns of "the French people". Unemployment, which has been hovering at 10 per cent for years, is very much one of them. Moselle's damaged job market is a booster for the FN - between 10 and 12 per cent of young people are unemployed.

Yet the two phenomena cannot always rationally be linked. The female FN supporters I met candidly admitted they drove from France to Luxembourg every day for work and, like many locals, often went shopping in Germany. Yet they hoped to see the candidate of “Frexit” enter the Elysee palace in May. “We've never had problems to work in Luxembourg. Why would that change?” asked Bertrand. (Le Pen's “144 campaign pledges” promise frontier workers “special measures” to cross the border once out of the Schengen area, which sounds very much like the concept of the Schengen area itself.)

Grégoire Laloux, 21, studied history at the University of Metz. He didn't believe in the European Union. “Countries have their own interests. There are people, but no European people,” he said. “Marine is different because she defends patriotism, sovereignty, French greatness and French history.” He compared Le Pen to Richelieu, the cardinal who made Louis XIV's absolute monarchy possible:  “She, too, wants to build a modern state.”

French populists are quick to link the country's current problems to immigration, and these FN supporters were no exception. “With 7m poor and unemployed, we can't accept all the world's misery,” Olivier Musci, 24, a grandchild of Polish and Italian immigrants, told me. “Those we welcome must serve the country and be proud to be here.”

Lola echoed this call for more assimilation. “At our shopping centre, everyone speaks Arabic now," she said. "People have spat on us, thrown pebbles at us because we're lesbians. But I'm in my country and I have the right to do what I want.” When I asked if the people who attacked them were migrants, she was not so sure. “Let's say, they weren't white.”

Trump promised to “Make America Great Again”. To where would Le Pen's France return? Would it be sovereign again? White again? French again? Ruled by absolutism again? She has blurred enough lines to seduce voters her father never could – the young, the gay, the left-wingers. At the end of his speech, under the rebranded banners, Philippot invited the audience to sing La Marseillaise with him. And in one voice they did: “To arms citizens! Form your battalions! March, march, let impure blood, water our furrows...” The song is the same as the one I knew growing up. But it seemed to me, this time, a more sinister tune.