Who is to Blame for the Decline of Ladakh? The World Bank, IMF, GATT, WTO The Negative Effects of the WTO Structural Adjustment Policies Effects of the Structural Adjustment Policies  Project - A Song on Globalization
 Ladakh, a beautiful village
in northern India, borders the Tibetan plateau. Up
until a few years ago, Ladakh was one of the few places in the world that had not been
influenced by Western culture. In 1975, life in the villages was the same as it had
been for 800 years.
Located in the high altitudes
of the Himalayas, the environment is a harsh
one. The Ladakhis have developed traditions that enable them to live with the natural
environment. Villages are mostly self sufficient. Every member of the family worked on
the family farm. Every family member worked in the fields harvesting grain and
stockpiling it for the winter. The work sessions were not laborious or tedious, but
they turned into a sort of party, where everyone enjoyed themselves and sang.
Everyone shared in the work. When a house needed to be built, everyone of all ages
took part, because they all knew how. The people made bricks out of mud and baked them
in the sun. Then they erected massive houses, which look impressive even by today's
standards! All this without any kind of power tools. The only kind of power they had
was human and animal power. Their most advanced technology was a water powered mill
for grinding grain. A water system was even set up through the villages. Water came in
by a stream, and they built dams and channels to divert the water where they wanted
it. Each village had its own rotation system set up, so that each family knew when it
was their turn to divert the water into their streams. After a long day of work in the
hot sun, the whole village relaxes. There were parties going on all the time,
especially after the harvest season. Parties involved the whole community, with
singing and dancing, and the local beer made from the excess grain of the harvest.
Perhaps the most amazing
thing about the Ladakhis is how happy they all are.
They don't consider themselves poor in any way. In fact, when asked where the poor
people live, where the slums of the village were, one man thought for a moment, then
replied, "There are no poor people." All members of the society cooperate. There is
little distinction between old and young or male and female. Jobs are interchangeable
and rigid distinctions are rare. No one takes one job and does it their whole life.
Everyone can spin, plant, build houses, make music. This contrasts the Western culture
where someone can get stuck in a "dead-end" job.
The whole culture is based on
co-operation. Co-operation can be seen in all
aspects of life; from the sharing of the farming among family members, to the growth
of children. Children are brought up not in day-care centers, but raised around people
of all ages.
The belief that everything in the
world is interdependent is the key to the
Ladakhi's success. When everything depends on everything else, it becomes obvious that
dumping waste in the river is harmful, or driving cars that chug out their smog
pollutes the air. It becomes obvious that it is important to take care of the
environment and the land so that it can support you and your family for many years to
come.
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Until 1962, Ladakh was a totally self-sufficient community.
They had no connection to the outside world, and they took care of all their needs and more within themselves. No
one was poor, everyone had food to eat and a place to live, and everyone was happy. Despite their almost stone age
tools, they were able to develop a rich culture. But in 1962, with the conflict in Tibet, the Indian government built
a road to Ladakh to connect it with the rest of India. Through this road came new ideas of the modern world. just
13 years later, the roads were opened up for tourists. It was a combination of all these forces and more that led
to the decline of the culture.
Who is to blame for what happened to the Ladakhis? There is
no one group of people or one organization that can be blamed. The first place to start, however, would be with the
Indian government for building the roads to Ladakh. But it is not a valid argument to say that if they hadn't built
the roads, Ladakh would still be the way it was 1000 years ago. Even if the Indian government hadn't built the roads
then, either someone else would have, or they would have later.
Once the roads were in place, this allowed images of the Western
culture to find their way into Ladakh. As soon as tourism opened up in 1975, the people of Ladakh were given a shock
of the modern world. Money was introduced, stores were opened; this was all new to the Ladakhi people. The tourists
spent $100 each day, considerably more than a Ladakhi would make. The tourists gave a false impression of the people
of the Western world. Tourists in Ladakh spending $100 was equivalent to tourists in the US spending $50,000 each day.
Along with the tourists came images of the Western world. But, for the most part, these images didn't portray
accurately the West. The Ladakhis were shown only the overwhelming images of luxury and power. It wasn't as though
this was done on purpose, but look at the movies. Movies show machines doing all the work for us, while people have
it easy and don't have to do anything. They show that violence is glorified, and if you want to be modern, you have
to smoke one cigarette after another. These images show how easy life is in the West, and why isn't Ladakh that way?
Why does everyone have to work so hard? These images are particularly influential on teenage boys, who are now shunning
their ancient culture. They rush to buy walkmans and blue jeans, not because blue jeans are more comfortable, but
because they are a symbol of the modern world. It is the images coming from the Western world that are partially
responsible for the decline of the Ladakhi culture.
During this time of westernization, a schooling system was set
up in Ladakh. School is mandatory. But what the students learn while at this school is not what is important for their
life in the village. They are prepared for specialized tasks of the western world. They don't learn the broad range of
things they would have if they were home. Previously, the way the Ladakhis would learn was they'd stay at home and
work on the farm, and everything they needed to do was shown to them by older family members. There was no formal
schooling before; people just learned what they needed to do through experience. They learned how to provide themselves
with clothing and shelter. But none of that is part of the modern schooling system. Most of what the Ladakhi children
learn in school will not be of any use to them. They learn supposedly "universal" knowledge, which is totally separated
from their specific environment and culture. In addition, the schooling lowers the students' self esteem by promoting
the Western model and making their own culture seem inferior.
It is mainly Western culture that is to blame for the decline
of Ladakh. One of the goals of Western culture is to constantly expand. The government of India gave it the means to
do so in Ladakh by laying down the roads. The old culture of Ladakh worked. In fact, it more than worked. There was no
hunger, no unemployment, the environment was cared for, people had a sense of security. What more could you ask for?
It is obvious that people were happier there than they are in this Western culture now.
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After the depression and World
War II, the world was in a time of great financial instability. Lots of countries had
sustained great damage during the war and needed to be rebuilt. Not the US, though.
The war was not fought on US soil, which meant that the US was still in good standing
after the war. In 1944, British and American negotiators met in Bretton Woods, New
Hampshire to discuss new ways of controlling the economy. They came up with two
institutions, the World Bank and the International Monetary Fund, also known as the IMF.
The World Bank provided loans
to countries to help them rebuild infrastructure such as roads, dams and utilities.
A major goal of the World bank was to promote foreign private investments. They wanted
businesses to go into another country and set up their shop, providing the people
of other countries with jobs.
The IMF had a slightly different
object. The IMF was set up to provide countries with short term loans. For example,
if the price of cotton goes down, then Egypt won't get enough money going into the
country. Egypt would then take out a "balance-of-payment" loan form the IMF so they
can stay in the world market. The World Bank and the IMF often worked together to
provide a country with a package of loans.
Soon after, a new institution
was set up. It was called the General Agreement on Tariffs and Trades (GATT). Their
goal was to promote trade between countries by reducing the tariffs on exported and
imported goods. This organization wanted goods from all over the world to be on equal
footing.
Recent campaigns in the US have
led to decreased cigarette sales. Of course, the cigarette companies weren't too happy
about this as they were losing business. They wanted to open up new markets in other
countries for new sources of profit. But other countries had tariffs on imported goods
from the US. So the cigarette companies went to GATT and asked them to work something
out. GATT threatened the other countries with trade bans until they agreed.
In 1995, the United States felt
that GATT wasn't strong enough. GATT was disassembled and reformed as the World Trade
Organization (WTO). The WTO had slightly different goals from GATT. While GATT's goal
was to reduce the tariff barriers on trade, the WTO aimed to eliminate any barriers to
free trade. The only problem is that pretty much anything can be seen as a barrier to
free trade by the WTO, even policies that are beneficial to the environment. Much shrimp
is caught with nets that capture and kill endangered sea turtles. There is a simple way
to avoid killing the turtles, by fitting the nets with Turtle Extruder Devices (TEDs).
The US put a ban on shrimp products from other countries that has not been caught with
TEDs. The other governments have complained, saying this is not a fair trade practice.
The only thing that should matter is the quality of the shrimp, not how it was caught.
The WTO would look at this situation and suggest the US remove the ban, thereby allowing
countries to continue killing the endangered turtles.
The WTO (formerly GATT) deals with
trade issues. The World Bank gives long-term loans for large scale projects such as
rebuilding roads. The IMF provides short-term loans for correcting finance problems.
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The World Trade Organization
(WTO) was founded in 1995. It was a reorganization of a previous institution called
the General Agreements on Tariffs and Trade. The objective of the WTO is to keep
trade flowing smoothly between countries, freely, fairly, and predictably. Some of
the ways it goes about this is it administers trade agreements and settles disputes
when they arise. Since it was founded, it has settled over 200 disputes peacefully.
Without it, these may have led to wars. The system is based on a simple set of rules,
so that each dispute can be handled consistently. In addition to keeping the peace,
the WTO provides benefits to consumers also. By using more imports for production,
finished products are cheaper. Consumers can enjoy reduced prices, as well as the
opportunity to buy goods not usually available in their country, such as fruit
during the off season.
While all this sounds good,
there are more than a few problems. First, the only people the WTO claims to
benefit are consumers and corporations. It allows corporations to get cheap labor
in other countries easier. When this cheap labor is available, companies will
often relocate their factories, laying off thousands of US workers at a time. The
rules laid down by the WTO say nothing about the working conditions once
companies are overseas.
Corporations often don't care
about protecting their workers from dangerous chemicals and such. This causes severe
health problems in other countries because the workers aren't protected. When using
labor in another country, the corporations have to pay only a fraction of what the
workers get in America. Of course, this cheap labor is only beneficial to the corporations.
Another problem is the WTO views
environmental laws as barriers to trade. The WTO ruled that a regulation imposed by
the U.S. Clean Air Act, which required cleaner burning gasoline to be produced, was
illegal.
By removing all barriers to free
trade, the WTO has opened up much more room for corporations to take advantage of people
and cheap labor. Sure, there are some benefits such as cheaper goods for consumers, but
the negative effects it has on so many other people just make it not worth the while.
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1.Government LayoffsGovernment employees lose their jobs because governments are trying to conform to the Bank and Fund's "Spend less, export more" policy. 2. Spending Cuts in Social ServicesEducation and health care programs are cut, forcing people to pay for them themselves. 3. Wage FreezesThe Bank and Fund pushes countries to freeze wages. This attracts "foreign investment." In other words, large corporations can get cheap labor. 4. Devaluation of Local CurrenciesThe Bank and Fund urge countries to devalue their currency. This causes imports to be more expensive while export are cheaper. When one US dollar used to buy 100 Bolivar's, it now buys 300. 5. Promotion of Export-Oriented ProductionThe Bank and Fund urge countries to produce more goods that can be exported, such as flowers and fruits that can be sold out of season for the rest of the world. Their prices of exports are totally in the hands of the world market. Since their fields are being used to grow exports, farmers aren't growing food for their local consumption. 6. No Price Control on Basic FoodsWhen the price controls are removed from basic staples such as bread and cooking oil, the prices shoot up, and people can't afford them anymore. Back to top 
Maria lives in a small village in Venezuela. She works at a day care center where she makes 31,000
Bolivars a month. Three years ago, 31,000 Bolivars were worth about $180 US dollars. This was just
enough to sustain he family of three children. But now, with the devaluation of the local currency,
31,000 Bolivars is worth only $60. She doesn't have enough money to buy milk anymore, so her children
drink watered down coffee instead. Ever since the price controls were abolished by the World Bank
and IMF, the prices of basic necessities such as corn and flour are just too high.
Feliciano lives in Oaxaca, Mexico. He was a successful construction worker, and made his way up to supervisor. But in December 1994, the Mexican government adopted the Structural Adjustment Policies which devalued the Peso. All of a sudden, everything became more expensive for the people in Mexico. There were less construction jobs available, and he was out of work for 6 months. In addition, the price controls were abolished, creating another rise in prices. The price of school uniforms, food, electricity, water, all the prices rose. He can't even afford to buy the local corn, he has to buy corn imported from Argentina and Brazil. These are cheaper because the other countries have adopted the Structural Adjustment Policy that encourages countries to grow crops for exports. Einar lives in Barquisimeto, Venezuela with his wife and four children. He works painting gas tanks, a hazardous job because of the lead paint. He makes just enough money to pay for food and bus fare. He is also politically active, protesting the recent raise in prices. This has led to some disagreement between him and his wife, and she left him with their kids. But after they got back together, she became pregnant with another baby. But she can't go to prenatal care because now, with the spending cuts in social services, it is not free anymore. This is due to the Structural Adjustment Policy which encourages countries to "Spend Less, Export More." Armando and Cata live in Ciudad Juarez, Mexico with their four children. Armando is a security guard, and he works long hours, hardly seeing his family. He makes barely enough money to survive. Cata stays at home taking care of the children. But if she doesn't go to work soon, they will not be able to afford school for all their children. Education is constitutionally guaranteed to be free, and yet the people have to pay for registration, books, uniforms -- which adds up to about 6 week's worth of work. The Mexican government adopted the Structural Adjustment Policy which encourages countries to "Spend Less, Export More." With this policy, education and health care programs are usually the first to go. Back to top 
Hear this song! Download wekeepbuying.mp3Words by Mariama Loos-Diallo Music by Aaron Parecki We are a consumer Nation A capitalist creation Regardless of the cost We need our corporate exploitation People say that they are dying Of famine and disease But how can they be crying When we give them free TVs? Why should you protest This country is the best I've nothing to fear in this land of the free Unless stocks fall in the World Economy But I'm sure I just die If I couldn't buy, buy, buy We keep buying Keep on going, keep on going while the businesses are growing and the money keeps on flowing Distributors of chocolate Big name industries Make your slave labor confession 15,000 boys profits the economy Raise the alarm Every time you drink your Nescafe You're drinking someone's life away Child labor isn't right We will put up a fight But they tell us that it's fiction For the sake of our addictions We keep buying Wake up and see That's what they need us to believe Companies are lying while people are dying And we think that we're free? Can you hear the children crying? Keep on going, keep on going while the businesses are growing and the money keeps on flowing Why does everything have "Made in China" on its label? Let me tell you what that really means It means your made in China shoes And your made in China shorts And all of the equipment For your all American Sports Employ millions of Chinese prisons People mining for graphite Being beaten every night See the profits that we're makin' Since all morals are forsaken And we keep buying Wake up and see We're supporting world greed Companies are lying while prisoners are dying And we think that we're free? Can you hear the workers crying? Keep on going, keep on going while the businesses are growing and the money keeps on flowing Money is our modern passion Do everything to stay ahead Its become global fashion To gain before you're dead We go to foreign soil Making lands just dust and pain What we want is wells of oil Black gold lust is in our brains I'm on the payroll I'll buy back my soul We exhaust all our excuses For our hideous abuses But we keep buying Wake up and see We're destroying all the trees Companies are lying while people are dying And we think that we're free? Can you hear the people crying? Keep on going, keep on going while the businesses are growing and the money keeps on flowing Sources for lyrics: Forced Labor in China by Patricia Plyman www.epm.org/laogai.html www.laogai.org www.senser.com/beisht.htm (offline) www.stopchildlabor.com (offline) www.candyusa.org www.hersheys.com From Znet's selected Antiwar archive They sell us the President the same way They sell us our clothes and our cars They sell us everything from youth to religion The same time they sell us our wars From Lives in the Balance by Jackson BrownLet me ask you one question, Is your money that good? Will it buy you forgiveness? Do you think that it could? From Masters of War By Bob DylanBack to top |