Brief Summary
This documentary investigates the impact of globalisation, focusing on Indonesia as a case study. It highlights the growing disparity between the rich and poor, the exploitation of workers in developing countries, and the role of international institutions like the World Bank and IMF in perpetuating this system. The film also examines the historical context of globalisation in Indonesia, including the mass murder of the 1960s and the subsequent opening of the country to Western corporations.
- Globalisation exacerbates inequality, with the wealthy benefiting at the expense of the poor.
- Western corporations exploit cheap labour in developing countries, often under poor conditions.
- International institutions like the World Bank and IMF contribute to debt and poverty in developing nations.
- Historical events, such as the mass murder in Indonesia, have paved the way for globalisation.
- Resistance to globalisation is growing worldwide, with people demanding a fairer and more democratic system.
The Brave New World
The documentary opens by contrasting the grand visions of industry leaders with the reality of a world where many are excluded. It highlights the protests against globalisation, noting that while the world has the capacity to create wealth and reduce poverty, the gap between rich and poor is vast. A small group of individuals and corporations control a significant portion of the world's economic activity, while famous brands exploit cheap labour in poor countries, sometimes bordering on slave labour. The film questions whether this is the global village promised or simply a continuation of old power structures, now run by multinational corporations and their backers.
Indonesia: Old Imperialism Meets the New
Indonesia, a country rich in natural resources, is presented as a prime example of where old imperialism meets the new. Despite its wealth, many Indonesians live in poverty. The country's history of colonisation by the Dutch has left a debt that remains unpaid. While globalisation is promoted as a force for unity and wealth distribution, the reality is that the poor are becoming poorer while the wealthy accumulate vast fortunes. A lavish wedding in Jakarta, attended by the Indonesian elite, is contrasted with the extreme poverty experienced by millions of Indonesians.
The Human Price of Globalisation
The documentary exposes the harsh realities of labour camps where workers who produce clothes for Western high streets live. These workers, often young, earn meagre wages, averaging around 72p a day, which is just over half a living wage. The dormitories are basic, with poor sanitation and no clean running water, leading to undernourishment and disease among the children. These conditions are similar to those in other parts of Asia, Africa, and Latin America, where famous brands are cheaply produced for Western markets.
Sweatshops and Codes of Conduct
The film goes inside factories in an economic processing zone, revealing the claustrophobic and frenzied working conditions. These factories, owned by Taiwanese and Korean contractors, employ cheap labour to produce goods for brands like Nike, Reebok, and Adidas. Posing as fashion buyers, the filmmakers secretly document the conditions, focusing on factories producing for Gap. Workers, mostly young women, work long hours in crowded conditions, with temperatures reaching 40°C. Some workers report working 24-hour shifts with minimal breaks. Despite Gap's code of conduct, which stipulates a maximum 60-hour working week and the right to refuse overtime, these standards are not effectively enforced in Indonesia due to government policies promoting cheap labour and high unemployment.
The Gap and Worker Exploitation
The documentary highlights the disparity between the price of clothing in Western stores and the wages paid to Indonesian workers. A pair of boxer shorts bought for £8 in a Gap store in Oxford Street translates to less than 4p for the Indonesian worker who made them. Similarly, a worker earns around 40p for running shoes that sell for £100. This is contrasted with the chief executive of Gap's earnings of over $5.5 million and the company's profits of $1.38 billion. To protect the workers, the factories investigated are not named, as speaking out can lead to victimisation and violence from anti-trade union forces. The Gap company declined an interview but stated that they employ a comprehensive factory monitoring program and prefer to work with manufacturers to fix problems.
Taking Action as Informed Consumers
The documentary encourages consumers to take action by asking retailers about the origins and production conditions of products. Writing to companies to demand assurances that workers are treated well and have the right to form trade unions is presented as a basic way to act as informed consumers.
The Secret History of Globalisation in Asia
Globalisation in Asia has a hidden history rooted in the mass murder of up to 1 million people in Indonesia in the mid-1960s, an event the West prefers to forget. Following General Sahar's seizure of power, aided by the United States and Britain, Indonesia's economy was redesigned in America, granting the West access to vast mineral wealth, markets, and cheap labour. This was described by President Nixon as "The Greatest Prize in Asia". General Sahar's value to Western business was his removal of Ahmed Sukarno, a nationalist who advocated for economic independence and kept Western corporations out of Indonesia.
Western Backing of General Sahar
Britain and the United States secretly supported General Sahar, with the American ambassador assuring him of US government sympathy and admiration. The CIA supplied a list of 5,000 opponents to be assassinated, and embassy officials tracked their murders. The British Ambassador recommended "a little shooting" as a preliminary to change. British warships escorted a Panamanian ship carrying Indonesian troops to Central Java to participate in the mass killings. The American press reported these events in terms of their economic advantage to the West, with Time magazine calling it "Vengeance with a smile" and others describing it as "a gleam of light in Asia".
The Corporate Takeover of Indonesia
In 1967, the Time Life Corporation sponsored a conference in Switzerland that planned the corporate takeover of Indonesia. Attended by powerful businessmen like David Rockefeller and representatives from major Western corporations, the conference laid out the conditions for investment in Indonesia. Indonesian leaders approved by General Sahar were also present. The conference went on for three days, with sectoral meetings hammering out policies acceptable to global investors. The foreign business community was aware that they were dealing with a corrupt dictatorship and a mass murderer.
British Arms and the Suharto Regime
Globalisation began in Britain in the 1980s under Margaret Thatcher, who dismantled manufacturing and invested in the arms industry. Indonesia became a significant British arms market, with General Sahar purchasing fighter aircraft, missiles, warships, and machine guns. Millions of pounds in export credits, paid by the British taxpayer, went to the dictator. Sahar was welcomed to London by the Queen, highlighting his importance as a business partner.
The World Bank and the IMF: Agents of the Richest Countries
The World Bank and the International Monetary Fund (IMF), based in Washington, D.C., are presented as agents of the richest countries, particularly the United States. Established after World War II to rebuild European economies, they later offered loans to poor countries on the condition that they privatise their economies and allow Western corporations access to their raw materials and markets. Debt is used as an instrument to implement policies in developing countries, creating a vicious cycle of poverty. The documentary contrasts Tanzania, a country with a gross national product of $2.2 billion shared among 25 million people, with Goldman Sachs, an investment firm with annual profits of $2.2 billion shared among 161 partners.
Socialism for the Rich, Capitalism for the Poor
The World Bank's system is described as "socialism for the rich and capitalism for the poor". The rich benefit from debt, cheap labour, and minimal taxes, while the poor lose jobs and public services to pay interest on debt owed to the World Bank. Internal documents reveal that up to a third of the World Bank's loans to General Sahar's dictatorship went into the pockets of his cronies and corrupt officials, amounting to around $8 billion.
The Asian Financial Crisis and Suharto's Downfall
Globalisation allows capital to be moved anywhere without warning. In 1998, short-term capital was suddenly withdrawn from Asia, crippling the Indonesian economy. The collapse of the Indonesian Rupiah significantly reduced labour costs for companies like Nike. With the economy in crisis and Indonesia on the brink of revolution, Sahar was forced to step down, having stolen an estimated $15 billion during his reign. He had handed out public utilities to his family and cronies, who controlled various sectors of the economy.
The World Bank's Role in Supporting Authoritarian Regimes
The World Bank, despite presenting itself as an economic development agency focused on poverty reduction, operated during the Cold War as an institution that distributed resources to authoritarian regimes supporting the West. This created the irony of the West defending democracy while upholding dictatorships like Indonesia. World Bank projects provided opportunities for Indonesian government officials to skim money, with an estimated $10 billion unaccounted for out of $30 billion loaned during Sahar's rule.
World Bank's Chief Economist Interview
Nicholas Stern, the chief economist of the World Bank, is interviewed about the loss or theft of almost 30% of World Bank loans to Indonesia. Stern dismisses the figure as a guess, despite internal reports estimating that 20-30% of the Indonesian government's development budget was diverted through informal payments. He acknowledges that the World Bank got things wrong in its analysis of the Indonesian economy and politics at the time.
The Impact of Debt and Privatisation
Globalisation creates debt, which leads to misery, unemployment, and privatisation. State enterprises are privatised, increasing costs for essential services like health and education. The money stolen by the Sahar family is being repaid by the Indonesian people. Every day, over a hundred million dollars is transferred in debt repayments from the poorest countries to the richest.
The Human Cost of IMF Policies
The poverty of Indonesian families is used to pay off the country's debt. Conditions of the IMF's latest loan include reductions in subsidies on fuel and food. A man's monthly wage of less than £40 is largely spent on medical treatment for his children, who suffer from a serious blood disorder. Rising prices mean he cannot afford the necessary drugs.
The Global Food Trade and Poverty
One American corporation dominates the world trade in food grains, while almost half the world's population attempts to live on less than $2 a day.
Debt Cancellation and Economic Policies
The documentary questions Nicholas Stern about calls for complete debt cancellation as a way to alleviate poverty. Stern argues that economic policies, education, and integration into the world economy are more important than debt cancellation. He believes that opening markets in industrialised countries to agricultural exports from poor countries is key to poverty reduction. Stern disputes the idea that debt is the greatest cause of poverty, arguing that debt is a normal way of borrowing for investment and that financial systems rely on debt.
Human Rights and Globalisation
The Human Rights Commission of the United Nations has stated that globalisation has caused global conditions of inequality and discrimination. Stern claims to be unaware of the evidence supporting this claim. He acknowledges that workers in third-world economic processing zones are vulnerable to exploitation due to unemployment. When questioned about the deaths in East Timor under the Sahar regime, Stern avoids directly answering whether the IMF spoke out against the regime. He claims that the IMF's insistence on removing corrupt practices in Indonesia weakened the regime.
The Impact of IMF Recommendations on Indonesian Workers
As recommended by the IMF, the Indonesian government has cut subsidies on oil, electricity, water, education, and agriculture. This means that workers have to pay more for essential services. People are reducing the quantity and quality of their food, leading to lower productivity due to poverty and fatigue.
Resistance to Globalisation
Thousands of protesters from around the world converged on Seattle to protest against the World Trade Organization. A growing movement against globalisation has been developing for years in Africa, Latin America, and Asia. Millions of ordinary people have protested against the power of the IMF and the World Bank, as well as the imposition of Western power. Protests have spread to Western countries, but coverage often focuses on violence rather than the economic policies being protested.
Propaganda and Violence
In the lead-up to May Day in London, the police and government orchestrated a propaganda campaign to alienate the public from the demonstrators by portraying them as violent and suppressing the issues they were protesting. Tony Blair dismisses the growing gap between rich and poor as a "spurious cause". On May Day, 6,000 police turned part of London's West End into a detention camp.
The World Trade Organization and Corporate Power
The World Trade Organization (WTO), based in Geneva, is described as an "embryo world government" that no one has voted for. Its policies make it illegal for governments to hinder the profits of big business, a concept known as "free trade". The documentary argues that while companies have globalised, regulations have not, leading to unfair rules for workers and the world's poor.
Taking Action and Challenging Corporate Power
The documentary encourages people to join the movement against globalisation. It highlights the success of a "ragged band of dissenters" in stopping the Multilateral Agreement on Investment, which would have allowed corporations to sue governments for removing laws they didn't like. People are starting to see through fabricated propaganda and withdraw their support from governments that only protect corporations.
Globalisation in Rich Countries
In rich countries like Britain, globalisation is well advanced, with the disastrous selling off of railways and the creeping privatisation of essential services. Despite a booming economy, one in five British children grows up in poverty, and the gap between rich and poor is widening.
Demanding a Fairer System
Millions of ordinary people worldwide are questioning why they have no say in decisions that cause hardship. They reject the idea that there is no alternative. The documentary asks why the World Bank, IMF, and WTO should not be abolished and replaced with democratic and accountable trade and development institutions. It also questions why debt that condemns nations like Indonesia to poverty and disease should not be cancelled.
Military Dominance and Commercial Interests
The documentary highlights a document from the United States Space Command stating that the globalisation of the world economy will continue with a widening gap between haves and have-nots, and that only military dominance will protect America's commercial interests. The documentary concludes by asking why people should accept these divisions and dangers, arguing that they are not inevitable and can be changed.
