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Can	
  globalization	
  be	
  democratic?	
  	
  
Journal	
  entry	
  17/09/2010	
  
Steven	
  Lauwers	
  
	
  
	
  
A	
  question	
  that	
  I	
  could	
  not	
  answer	
  for	
  myself	
  when	
  going	
  through	
  this	
  week’s	
  readings	
  
is	
  how	
  globalization	
  is,	
  or	
  can	
  be,	
  governed.	
  Prof.	
  Dr.	
  H.	
  Anheier	
  ended	
  his	
  lecture	
  with	
  
the	
  remark	
  that,	
  because	
  of	
  design	
  problems,	
  globalization	
  might	
  not	
  be	
  manageable	
  as	
  
the	
  phenomenon	
  of	
  globalization	
  goes	
  beyond	
  the	
  forces	
  that	
  are	
  in	
  place	
  to	
  control	
  it.	
  
But	
  what	
  forces	
  control	
  it	
  and	
  more	
  importantly,	
  who	
  “governs”	
  these	
  forces?	
  
	
  
Robert	
   O.	
   Keohane	
   and	
   Joseph	
   S.	
   Nye	
   dismiss	
   the	
   idea	
   of	
   global	
   democracy	
   as	
   infeasible:	
  
a	
   simple	
   definition	
   of	
   democracy	
   is	
   a	
   majority	
   rule,	
   but	
   the	
   critical	
   question	
  in	
  view	
  of	
  
global	
   governance	
   is:	
   who	
   are	
   “we	
   the	
   people?”1	
   They	
   classify	
   global	
   governance	
  
procedures	
   in	
   three	
   broad	
   categories:	
   intergovernmental	
   and	
   transgovernmental	
  
governance	
   and	
   popular	
   politics.	
   If	
   we	
   look	
   at	
   Intergovernmental	
   Organizations,	
   they	
  
derive	
   their	
   legitimacy	
   from	
   the	
   fact	
   that	
   they	
   are	
   given	
   authority	
   by	
   governments,	
  
which	
   in	
   turn	
   were	
   chosen	
   through	
   national	
   electorates.2	
   So,	
   in	
   that	
   regard,	
   they	
   are	
  
international	
   institutions	
   built	
   on	
   the	
   democratic	
   principle.	
   But	
   does	
   that	
   mean	
   that	
  
these	
   institutions	
   strive	
   to	
   obtain	
   results	
   that	
   are	
   democratic	
   for	
   everybody	
   that	
   is	
  
involved	
  –	
  or	
  only	
  those	
  that	
  are	
  beneficial	
  for	
  the	
  members	
  of	
  the	
  organization?	
  
	
  
Joseph	
   Stiglitz	
   calls	
   this	
   particular	
   situation	
   “global	
   governance	
   without	
   global	
  
government”:	
   key	
   regimes,	
   “clubs”	
   as	
   Robert	
   O.	
   Keohane	
   and	
   Joseph	
   S.	
   Nye	
   call	
   them,	
  
“provide	
   an	
   ad	
   hoc	
   system	
   of	
   global	
   governance,	
   but	
   it	
   is	
   a	
   far	
   cry	
   from	
   global	
  
government	
   and	
   lacks	
   democratic	
   accountability”.	
   3	
   In	
   his	
   text,	
   he	
   focuses	
   on	
   the	
  
International	
   Monetary	
   Fund	
   (IMF)	
   as	
   a	
   key	
   player	
   in	
   globalization.	
   When	
   the	
   IMF	
  
pushed	
   trade	
   liberalization,	
   based	
   on	
   their	
   “superior	
   knowledge”,	
   the	
   international	
  
arena	
  gave	
  disproportionate	
  weight	
  to	
  voices	
  from	
  the	
  financial	
  community	
  by	
  accepting	
  
and	
   implementing	
   the	
   rules	
   that	
   IMF	
   set.	
   One	
   could	
   conclude	
   from	
   his	
   text	
   that	
  
globalization	
  is	
  driven,	
  and	
  thus	
  determined,	
  by	
  the	
  global	
  market.	
  Or	
  more	
  specifically	
  
by	
  the	
  elite	
  “club”	
  that	
  is	
  the	
  IMF.	
  Is	
  it	
  right	
  for	
  the	
  rich	
  countries	
  to	
  assume	
  they	
  are	
  “the	
  
invisible	
  hand”	
  that	
  molds	
  –	
  via	
  the	
  IMF	
  –	
  the	
  global	
  market	
  economy?	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1	
  Keohane,	
  Robert	
  O.	
  and	
  Nye	
  Joseph	
  S.,	
  2002,	
  Governance	
  in	
  a	
  Globalizing	
  World,	
  p.	
  23	
  
2	
  Keohane,	
  Robert	
  O.	
  and	
  Nye	
  Joseph	
  S.,	
  2002,	
  	
  idem;	
  p.	
  9	
  
3	
  Stiglitz,	
  J.,	
  2004,	
  Globalism’s	
  Discontents,	
  p.	
  5	
  
 
There	
   is	
   no	
   denying	
   that	
   governments	
   and	
   global	
   governance	
   are	
   intertwined.4	
   The	
  
question	
  is	
  then	
  how	
  governments	
  can	
  influence	
  globalization	
  in	
  a	
  way	
  that	
  it	
  becomes	
  
more	
  democratic;	
  but	
  also	
  if	
  they	
  want	
  to	
  make	
  global	
  governance	
  truly	
  democratic,	
  as	
  it	
  
would	
  mean	
  looking	
  past	
  their	
  own	
  interests.	
  How	
  can	
  globalization	
  benefit	
  all	
  that	
  are	
  
part	
  of	
  it,	
  when	
  the	
  idea	
  that	
  drives	
  it	
  is	
  personal	
  benefit?	
  	
  




	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
4	
  Keohane,	
  Robert	
  O.	
  and	
  Nye	
  Joseph	
  S.,	
  2002,	
  	
  idem;	
  xx	
  

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Journal 1: Can globalization be democratic?

  • 1. Can  globalization  be  democratic?     Journal  entry  17/09/2010   Steven  Lauwers       A  question  that  I  could  not  answer  for  myself  when  going  through  this  week’s  readings   is  how  globalization  is,  or  can  be,  governed.  Prof.  Dr.  H.  Anheier  ended  his  lecture  with   the  remark  that,  because  of  design  problems,  globalization  might  not  be  manageable  as   the  phenomenon  of  globalization  goes  beyond  the  forces  that  are  in  place  to  control  it.   But  what  forces  control  it  and  more  importantly,  who  “governs”  these  forces?     Robert   O.   Keohane   and   Joseph   S.   Nye   dismiss   the   idea   of   global   democracy   as   infeasible:   a   simple   definition   of   democracy   is   a   majority   rule,   but   the   critical   question  in  view  of   global   governance   is:   who   are   “we   the   people?”1   They   classify   global   governance   procedures   in   three   broad   categories:   intergovernmental   and   transgovernmental   governance   and   popular   politics.   If   we   look   at   Intergovernmental   Organizations,   they   derive   their   legitimacy   from   the   fact   that   they   are   given   authority   by   governments,   which   in   turn   were   chosen   through   national   electorates.2   So,   in   that   regard,   they   are   international   institutions   built   on   the   democratic   principle.   But   does   that   mean   that   these   institutions   strive   to   obtain   results   that   are   democratic   for   everybody   that   is   involved  –  or  only  those  that  are  beneficial  for  the  members  of  the  organization?     Joseph   Stiglitz   calls   this   particular   situation   “global   governance   without   global   government”:   key   regimes,   “clubs”   as   Robert   O.   Keohane   and   Joseph   S.   Nye   call   them,   “provide   an   ad   hoc   system   of   global   governance,   but   it   is   a   far   cry   from   global   government   and   lacks   democratic   accountability”.   3   In   his   text,   he   focuses   on   the   International   Monetary   Fund   (IMF)   as   a   key   player   in   globalization.   When   the   IMF   pushed   trade   liberalization,   based   on   their   “superior   knowledge”,   the   international   arena  gave  disproportionate  weight  to  voices  from  the  financial  community  by  accepting   and   implementing   the   rules   that   IMF   set.   One   could   conclude   from   his   text   that   globalization  is  driven,  and  thus  determined,  by  the  global  market.  Or  more  specifically   by  the  elite  “club”  that  is  the  IMF.  Is  it  right  for  the  rich  countries  to  assume  they  are  “the   invisible  hand”  that  molds  –  via  the  IMF  –  the  global  market  economy?                                                                                                                   1  Keohane,  Robert  O.  and  Nye  Joseph  S.,  2002,  Governance  in  a  Globalizing  World,  p.  23   2  Keohane,  Robert  O.  and  Nye  Joseph  S.,  2002,    idem;  p.  9   3  Stiglitz,  J.,  2004,  Globalism’s  Discontents,  p.  5  
  • 2.   There   is   no   denying   that   governments   and   global   governance   are   intertwined.4   The   question  is  then  how  governments  can  influence  globalization  in  a  way  that  it  becomes   more  democratic;  but  also  if  they  want  to  make  global  governance  truly  democratic,  as  it   would  mean  looking  past  their  own  interests.  How  can  globalization  benefit  all  that  are   part  of  it,  when  the  idea  that  drives  it  is  personal  benefit?                                                                                                                     4  Keohane,  Robert  O.  and  Nye  Joseph  S.,  2002,    idem;  xx