GLOBAL PROBLEMS REQUIRE GLOBAL SOLUTIONS

Global Problems Require Global Solutions

Global Problems Require Global Solutions

Introduction

On account of of globalization, the world now struggles under a dichotomy which is both obvious and routinely ignored: While the nation state remains the principal vehicle for political decision making, citizens of all nation states are now participants in, and reliant upon, a single global economy.

For individual nations, the price of access to the undoubted benefits of global economic convergence has been a loss of control over domestic economies. As a consequence, national governments are now less capable of responding to the demands of their electorates than was previously the case. This would not be an issue were the benefits of economic globalization being felt universally, or if the new regime was proving adequate to the particular challenges of the twenty-first century. But the new global order is failing on both counts, and questions have to be asked in respect of two key issues: First, is the current model of globalized capitalism likely to be able to address the problem of the distribution of wealth, and of equity in access to viable economic opportunities, with the same success as it has addressed the problem of wealth creation? If not, will it permit intervention by national governments or transnational bodies to tackle poverty and social exclusion? Second, is the free market likely to respond effectively, and with sufficient urgency, to the problems posed by global warming? If not, will it allow a concerted, collaborative effort among national governments to take steps to avert a catastrophe that seems to be bearing down on us with frightening speed? If, as I believe, the answer to each of these questions is no, then we need to find other means to address these issues; ideally ones which build on what is valuable in existing political and economic structures and consolidate the gains of the last thirty years. Therefore this paper discusses if Global problems require Global solutions and how it can be possible.

Discussion

In contrast to the impression given by some politicians and campaigners, there is no easy way to tackle the endemic poverty affecting many parts of the world. As for global warming, few scientists any longer doubt the gravity of threat posed, or the urgent need for action. Effective solutions to both problems require structural change and will be costly. Those costs will inevitably be felt most by those nations and individuals which currently benefit most from prevailing economic arrangements. This is why the financial markets, which nowadays sit in judgement on all decisions which have economic ramifications but which are not made by the market, react negatively to attempts to address the twin evils of poverty and global warming.

The financial markets cannot be blamed for lacking moral integrity, or caring nothing for the fate of the planet. The market is a value-free mechanism through which the competing preferences and desires, and the relative financial muscle, of billions of people are mediated and ...