The Collapse of Globalism: And the Reinvention of the World [Hardcover]

John Ralston Saul (Author)

Book Description

Publication Date: September 22, 2005

Grand economic theories rarely last more than a few decades and globalization, with its technocratic and technological determinism, and its market idolatry, may have seen its best days. Perhaps it is already a spent force, argues John Ralston Saul - the prize-winning author of Voltaire's Bastards, and On Equilibrium, among others - in this groundbreaking new book. The Collapse of Globalism follows globalization from its promising beginnings in the 1970s through to the increasing deregulation in industry, and into the 1990s, when regional economic collapses and concern for the environment and for the rights of workers led to widespread protest and disillusionment. In the wake of globalism's collapse, nationalism of the best and worst sort, Saul demonstrates, shows signs of making a remarkable, unexpected recovery.

Editorial Reviews

From Publishers Weekly

"The monolithic ideology of economic truisms is fading away," writes Saul in this ominously titled elegy to globalism, an equally revered and reviled economic philosophy in which world markets would supplant nation-states. At least that was the plan thirty years ago. Throughout the book, Saul shows how the plan has failed-even as it succeeded-by increasing GDP or individual wealth in some countries while allowing the paralyzing accumulation of debt in the third world. In the meantime, economies have artificially inflated and imploded, much like the belief that technology, business and communications could overcome cultural differences or the emergent flexing of nationalism that has resulted from the end of the cold war. The author also faults a system where multinational corporations attempt to replace government infrastructure and "overly complex" management is mistaken for leadership. A thoughtful and intellectually rigorous study of globalism's rise and, if Saul is correct, imminent fall, the book carries a foreboding tone throughout. Yet, Saul asserts, the economic future may be brighter now that "the idea of choice is back," itself a result of what he deems "positive nationalism." Needless to say, Saul will have no fans among the tax cutters and free trade proselytizers, but his salient analysis is as accessible and relevant to the small shop owner as it is to the CEO of a multinational corporation.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

From the Publisher

An incisive and compelling consideration of the rebirth of nationalism after the demise of globalization, by a renowned economist and philosopher.

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Product Details

• Hardcover: 224 pages
• Publisher: Overlook Hardcover (September 22, 2005)
• Language: English
• ISBN-10: 1585676292
• ISBN-13: 978-1585676293
• Product Dimensions: 9.1 x 6.1 x 1.2 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.9 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #613,291 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

55 of 56 people found the following review helpful:

5.0 out of 5 stars Mincing Mammon's minions, November 5, 2005

By 

Stephen A. Haines (Ottawa, Ontario Canada) - See all my reviews
(VINE VOICE)    (HALL OF FAME REVIEWER)    (REAL NAME)   

This review is from: The Collapse of Globalism: And the Reinvention of the World (Hardcover)

"Gimmie that old time religion" ran the gospel classic. Since the early 1970s, says Saul, a new religion has emerged, displacing existing dogmas. It's called "Globalism". Globalism lacks a deity, but provides us with a fresh dogma - "borderless commerce". The ranks of its apostles view the world through a "prism of economics". The new liturgy claims that open, unfettered world "trade" will overcome restrictive government policies, grant peace, freedom, prosperity and will last forever. It will redeem the world of its ills by considering issues through this restrictive prism. It sees humanity as driven solely by economic self-interest. It applies that view to business, government and society in general. It is Mammon in all his finery and power.

Saul's sprightly prose leads us through a chronology of the rise of Globalism, citing some of its most profound proponents along the way. He describes the methods used in creating the "global market". The prophets are known to all who took Economics 101 - Milton Friedman, Samuel Brittain and Robert Norvick. Globalism's converts, following their initiation, tended to remain out of sight, however. Saul notes the irony of an "open" system doing so much so quietly and with so little fanfare. Part of the reason for this covert manner was that avoiding publicity was important to its advocates. While quietly lobbying for "deregulation" or arranging multi-billion dollar mergers, the Globalists operated away from public scrutiny. Knowing the general populace would bear the brunt of paying for their dealings, keeping people ignorant of the impact was important. "Smooth waters and continuity" was the theme of those who avoided confronting reality. No dissent meant acceptance. Saul sees this approach as "management" of problems, not realistic leadership.

Globalism has achieved much, according to Saul. There have been shakeouts of inept or corrupt government-run programmes in many countries. Giant corporations girdling the planet have been established. The movement of material and products has been eased. Work has been given to those who might have never known what a factory was or what it produced. "Agribusiness" was an unknown term in the 1970s - it's a commonplace, now. Products on your table arrive from far away places. The shop's shelves are weighed down with a confusing variety of goods, whether grocery or clothing or electronics.

These accomplishments have come at a price. The transnationals move goods within themselves, creating an artificial trade picture - and an artificial state as a by-product. The maneuvers have led to grand fortunes. The 358 richest people have assets exceeding the combined incomes of countries containing 45 per cent of the world's population. People are dealt with as replaceable machines and community and human values have been shed. If jobs aren't easily exported, labour is invited to relocate. There are 17 million Muslim workers living among 450 million Europeans. These workers face lack of acceptance, an uncertain status and, often, downright hostility. Recent events in London indicate how long this condition has been running without solution.

Throughout the book, New Zealand is offered as the optimum case study. By the onset of Globalism, this island nation had "led the world in women's rights and public programmes". In the early 1980s that Pacific nation endorsed and implemented the gospel of Globalism into their economy and government. "Privatizing" was quietly instituted. The tax burden smoothly shifted from the top levels to the bottom. Over the years social programmes were dismantled, resources drained away by outsiders and the infrastructure fall into foreign ownership. The situation far exceeded the "branch plant" economy often bemoaned of here in Canada. Dissatisfaction on many levels brought a change in government. That turnover heralded a disavowal of Globalism's tenets. The new government had the sense not to attempt any disruptive shifts. The return to a realistic structure has been at a sedate pace. The result is achievement of what Saul calls "positive nationalism". New Zealand was a model for the West in the last century. It has become one again in the new one.

While the 1970s are viewed as a stagnant period, the 1990s displayed lively activity. Globalism seemed to have accomplished its goals. Many crowed of its "victory" over "narrow nationalism". There were a few disturbing signs. One, voiced by a newly elected French President, was his announcement that he was powerless in the face of forces that had destabilised oil prices, brought inflation and increased unemployment. It was the first signal that Globalism had triumphed over civil authority. The triumph wasn't complete, however. The Asian Fiscal Meltdown, which brought cries of "crony capitalism" and "false promises", was quickly quelled. Stability was restored by the Malaysian government striking a new chord. It refused to accept that the crisis was an economic one affecting the nation. Instead, Mohamed Mahathir decreed that the problem was a national one with economic overtones. It was the first sign of the resurrection of the nation-state. While the Globalist choir lamented the betrayal of their programme, two observers in the loft watched with interest - India and China.

Saul describes how a new rise of the nation-state should work. It's not an abrupt restoration. Too many forces exist and many people remain to be convinced it should take place. After New Zealand, the best example is the European Union's acceptance of Spain as a member. China and India follow as models. India, however, has shown how to keep the managers hatched by Globalism at bay and retain its independence. India also realistically deals with economic problems as national issues. Where the first publication of the Davos economic forum declared that "nationalism is indefensible", Saul argues that "positive nationalism" is the mechanism for retrieving us from the vacuum resulting from the collapse of the Globalism balloon. There are no other solutions visible.

This is a book that is needed. And needs to be read. [stephen a. haines - Ottawa, Canada]

49 of 51 people found the following review helpful:

3.0 out of 5 stars Some interesting thoughts, May 19, 2005

By 

sean s. (Montreal) - See all my reviews

This review is from: The Collapse of Globalism and the Rebirth of Nationalism (Hardcover)

The Collapse of Globalism is a book-length version of an article John Ralston Saul first published in the March 2004 edition of Harper's magazine. Despite its sensationalistic title, the actual hypothesis and conclusions of the book are more nuanced and even anti-climactic.

Saul begins by explaining that what he means by Globalism is limited to an economic ideology and article of faith, often consisting of received ideas with little scientific basis, shoved down our throats by think tanks with corporate agendas and subservient media. The high priests of this ideology are to be found at the annual World Economic Forum in Davos, Switzerland, the ultimate love-in between governments and multinational corporations. Saul comments acidly that "Just as classic plays with kings, virgins, love and betrayal must have their fool, so Globalization had Davos."

In terms of actual economic events, Saul dates the inception of Globalism to August 15, 1971, when Washington decided to destroy the Bretton Woods monetary system, allowing the American dollar to float without fixed exchange rates. He charts Globalism's mixed record since that date.

As for its alleged successes, Saul convincingly makes the point that India and China, the most frequent poster children for Globalism, in fact owe their economic success to NOT following the prescriptions of Davos, but rather by consistently pursuing their own highly nationalistic points of view. This is why in 1997 China and India were not part of the Asian meltdown suffered by those countries which had more devotedly followed the Word.

The strength of Saul's book is that by giving a historical review of the ideology of Globalism, he demonstrates just how contingent, fallible and mythological it is.

The limitation of this book is that, somewhat surprisingly, it says very little about globalization. Saul acknowledges that aspects of globalization such as Internet connectivity and technology will continue to advance, and presumably the mixing of cultures as well. He seems to be agnostic as to whether "negative nationalism" will continue to grow, and in what form, or whether what he calls "positive nationalism" may still prevail.

The book's conclusion, that "If people who do not know each other well, perhaps because they come from different cultures, serve the welfare of their fellow citizens, they may well discover how similar their values are" is not only vanilla and anodyne to the point of ennui, it also flies in the face of extensive research such as the World Values Survey (cf. Ronald Inglehart's Modernization and Postmodernization) which shows no such global convergence of values.

In fact it is already clear that in addition to the top-of-mind "Jihad vs. McWorld", there is a growing values divide between the religious and materialistic United States, and the more postmaterialistic European Union (cf. Jeremy Rifkin's The European Dream), to the point that some members of America's creative class are now seeking more progressive pastures outside the US (cf. Richard Florida's The Flight of the Creative Class).

Despite its limitations, Saul's book is a worthwhile read, which confirms him as part of a new wave of Canadian public intellectuals (along with Naomi Klein, Malcolm Gladwell, Carl Honoré, Joel Bakan and Richard Wright, among others). These 21st century writers are thinking "outside the box" in a creative and vital attempt to navigate the largely uncharted conceptual territory in which the world now finds itself.

24 of 28 people found the following review helpful:

5.0 out of 5 stars excellent, October 10, 2005

By 

Steve Tyler (San Diego, CA) - See all my reviews

This review is from: The Collapse of Globalism: And the Reinvention of the World (Hardcover)

The book illustrates not so much the failure of globalism but the failure of modern economics which though not even at the level of a science has become almost a relgion. His biggest contribution on globalism is telling the biggest secret in the world today: That democracy, free trade, unregulated markets and the economic ideology of the west are not necessary for economic prosperity. He shows for example that in spite of China doing everything "wrong" according the models of modern economics, they are wildly successful. China prospers with exchange rates pegged to favor exports, a lack of political freedom, pays no attention to intellectual property rights and has heavyweight state planning and regulation.

In the west, he shows how deregulation of certain industries has rather than creating competition lead to the exact opposite. That rather than competition, the result is inevitably oligopoly or monopoly and division of markets. The only fact he misses on the subject is that the large corporations usually in reality have negative economies of scale operationally and that their competitive advange is based on negotiating discounts from suppliers (based on their volume) which are subsidized by their smaller competitors.

Where the book falls down is in offering solutions. Saul is too stuck in the past in that regard. But even with his limitations he is the most insightful and honest writer out there on these subjects.