A MARKET-BASED STRATEGY TO DEMOCRATISE THE GLOBAL ECONOMY

By Mark Sommer and - - Reprint | | Print |

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BERKELEY, Jul 1 2003 (IPS) - Billions of us watch in apparent helplessness as global corporate and political elites manipulate the world economy to suit their exclusive interests, writes Mark Sommer, an internationally- syndicated columnist and radio host who directs the Mainstream Media Project, a US-based effort to bring new voices and innovative ideas to the broadcast media. But the rest of us are not helpless, the author writes in this article for IPS. We actually hold in our hands levers of power far more potent and effective than those unrepresentative governments offer their disillusioned electorates. Each decision we make to buy a given product or service ripples through the global economy to support certain policies and institutions and not others. In recent years we have seen boycotts produce the desired shift in the policies of numerous brand-name multinationals. To match the scale and power of the global economy, we must apply this strategy worldwide, wielding our collective purchase power through a deft combination of both boycotts and buycotts to penalise irresponsible corporate and governmental policies and reward those that support a healthy economy and society.

Billions of us watch in apparent helplessness as global corporate and political elites manipulate the world economy to suit their exclusive interests. The machinery of representative government in much of the nominally democratic world is now so corrupted by money that the sole constituents being represented are those with the means to buy their own representatives.

But the rest of us are not helpless. We actually hold in our hands levers of power far more potent and effective than those unrepresentative governments offer their disillusioned electorates. Each decision we make to buy a given product or service ripples through the global economy to support certain policies and institutions and not others. While each purchase is minuscule in impact, a shift of just two percent of the aggregate demand for a product or service from one company to another is enough to wipe out its entire profit margin. Facing such a sanction can fundamentally alter its bottom line and induce the targeted company to change corporate policy.

In recent years we have seen boycotts produce the desired shift in the policies of such brand-name multinationals as Starbucks (selling Fair Trade Coffee), Home Depot (selling no old growth wood), and Nestle (ceasing promotion of infant formula in the developing world).

Applying the power of the purchase consciously and creatively is to finally exercise our full democratic rights as citizens in a free market, liberating a global economy currently held captive by a privileged few. In a free market, our freedom of choice is inalienable. Personal purchasing decisions are impossible to control from above. Moreover, we can shift our buying patterns without great sacrifice.

To match the scale and power of the global economy, we must apply this strategy worldwide, wielding our collective purchase power through a deft combination of both boycotts and buycotts to penalise irresponsible corporate and governmental policies and reward those that support a healthy economy and society.

The highly interdependent nature of the global economy has long been viewed negatively by its critics since it leaves local economies beholden to forces beyond their reach. But power flows in both directions. A self-organised but consciously coordinated global economic electorate can become a potent voting bloc redirecting the priorities of the global economy. Local governments and large institutions –from universities to union pension funds– as well as individuals can coordinate their purchases to create economies of scale that make it viable and attractive for companies to provide more socially- and environmentally-responsible goods and services.

To succeed, however, a boycott/buycott strategy must be preceded and validated by a rigorous, continuous research process to identify both the best and worst practices among corporations and nations in key realms of activity — war and peace, economic equity and prosperity, environmental sustainability, and social justice. Key criteria must be identified and the means of measurement and evaluation formulated and re-evaluated in response to changed circumstances.

A great deal of this work has already been done. In a wide range of fields, certification systems and principles and measures of social and environmental responsibility have been devised and implemented. What remains is to bring them all together into a set of global standards that are then translated into shopping guides for both individuals and institutions, providing them with ratings information they can easily apply.

To take this market-based approach to regime change will require a possibly painful admission for many who advocate social and environmental responsibility: that whether we like it or not, corporations are here to stay. Our objective must be to make them fully accountable to their employees, communities, and the broader public interest and more responsive to human needs.

A strategy that combines boycotts and buycotts offers just as many rewards as it exacts penalties. Precision-guided sanctions (as opposed to missiles) target policies while leaving their advocates free to change their minds and do right by people and the planet. Their decision not to do so will stand in stark contrast to those who voluntarily make the change or who have always engaged in best practices. Combining penalties and rewards greatly magnifies the action’s leverage. A ”yes” and ”no” together are far more potent than a ”yes” or ”no” alone.

It’s time to reinvent democracy from below. Citizens worldwide can turn it decisively towards more life-affirming policies and practices by exercising their rights through the power of the purchase. We are the leaders we’ve been waiting for. All that remains for us to discover is our capacity to determine our shared destiny. (END/COPYRIGHT IPS)