In the final analysis, therefore, ours is still a binocular world. The basic schism among nations (as within nations) is still between the rich and the poor. Aptly has it been observed:
"As in a democratic nation-state each citizen is equal before the law and has one vote but the rich and the powerful wield much more power and enjoy vaster comfort than the poor and the weak, so in the global community of equal sovereign states, strong members command much more power and wealth than the majority of small and weak ones. The true global divide then is between the industrially developed countries of the North and the predominantly agrarian states of the South".
The global divide between the rich and the poor is a reality despite the end of the politico-militarily bipolar world during the early 1990s. A titantic storm of political freedom and participation is sweeping the world. In its wake has followed the tidal surge of free-enterprise and market-friendly economy and increased emphasis on privatisation and role of private sector trade, commerce and industry.
MERELY CIVIL, MARKET-FRIENDLY AND NOT RESPONSIBLE SOCIETY? The civil society is an undeniable reality today in the politics as well as economics of developing and less developed nations. The realistic question still remains: Is civil society adequate? Is market economy enough? Do these by themselves, secure the rights of the poor and struggling millions either in the political or economic dimensions, especially in the developing and less developed nations of the South? Or, is there still a need to build a "responsible" in addition to a merely "civil" and market-friendly society on the global, regional and national levels? Finding meaningful and early answers to these questions is becoming increasingly urgent and relevant in our fast changing and uncertain world.
The market has long been a part and parcel of the industrially and technologically developed and economically prosperous capitalist societies. In recent times societies in which socialist political-economy has collapsed have rediscovered the market as the potent and effective engine of economic growth. Even in avowed socialist polities, such as China and Vietnam, the market has emerged as the essence of their economies.
Struggling societies of the South, many of which hitherto tilted towards 'socialism' featured by centralised planning and bureaucratised implementation of development plans, are now welcoming the re-entry of the market. In today's world the market seems to carry an appeal more romantic than even pluralist democracy. In most cases it is viewed in its ideal best, as the most efficient mechanism for the exchange of goods and services -impersonally matching supply and demand, bringing together buyers and sellers, employers and workers, constantly setting and resetting prices so that the economy works at its efficient peak. The market, it is widely believed today, is the happy playground of free enterprise which provides the appropriate mechanism for realising the best possibilities of human creativity and entrepreneurial ability.
The world of our times has seen the amazing expansion of the market. In many cases it has come as part of a package programme of apparently participative, pluralist democracy accompanied by only one feature of such a political order - a free and fair election once in four or five years. In others it has become a vibrant part of politically socialist, unitarian regimes. In all cases, it has become idolised in its ideal form as a panacea for societies afflicted not only by economic but extra-economic ailments for which the market, by itself, offers no effective cure.
THE MARKET: AN IMPERFECT MECHANISM IN AN IMPERFECT WORLD: The market is an idea and ideal. It is, therefore, as good as its implementation. Like all ideas and ideals the market, too, is translated into the reality with all the imperfections of its time and social context.
In our times the market is:
* Global with regional and national manifestations
* interdependent to a degree hitherto unknown
* featured by a context of unequal access to resources, technology and knowledge shaped by advance of technology and its impact
* influenced by needs for sustainable consumption, production and development patterns
* required to respond to the needs of migration and interface and inter-disciplinary interaction.
THE LIMITATIONS OF THE MARKET: An idea and ideal, the market is also and, primarily, a mechanism. Like all mechanisms it is neutral. Like a knife it can either kill or sustain life. All depends on the motivation of the man or woman who wields it.
The need of our times, as the UN correctly finds, is to launch global efforts for the creation of a favourable economic environment by focusing on "societies" and "not merely economies".
The key to a peaceful, harmonious and happy world is not merely and solely the market but the achievement of the common good.
THE COMMON GOOD AND THE MARKET: The common good is difficult to define, but may be described as the creation of a socio-political environment of just peace and harmony and economic equity in which human beings can realise their best selves.
Creation of this environment requires such economic development which is beneficial for all and can, therefore, bring forth a stable polity and sustainable and harmonious development. This is too great a task to be left to the market alone. For "Markets, by themselves, do not respond to all human needs. They do not provide the optimal answers in crucial areas such as health and education services, scientific and technological research and the preservation of the environment and natural resources".
In several countries of the South there has been a remarkably successful attempt to effect a happy marriage between the common good and the market. Since the 1970s, many of these nations have shifted emphasis from the public to the private sector, from centralised and planned to market economy to ensure rapid socio-economic development. From the perspective of economic growth, the success is splendid in some countries in the South. In the NICs (newly industrialised countries) in the 1971-80 period, the growth was 9.2 per cent whereas it was 8.7 per cent in 1981-90 period. In the Southeast Asian countries, the growth rates of GDP (gross domestic product) for the similar period were 7.9 per cent and 5.4 per cent. The South Asian countries did experience a little lower growth rates of GDP (3.7 per cent and 5.1 per cent respectively). For one of the less developed nations, Bangladesh, the rates were 5.9 per cent during 1971-80, 4.1 per cent during 1981-90, 4.8 per cent during 1991-2000, 5.4 per cent, during 2001-2005 and 6.4 per cent in 2013 respectively.
Economic growth in a number of these countries has been associated with remarkable human development. The level of destitution, poverty, deprivation, unemployment is less severe. People have better access to basic services such as health, employment and education etc. The governments have made sincere efforts to elevate the living conditions of the masses. The notion that market economy only engenders many vices has been proved untrue in these countries because of timely and efficient positive state intervention ensuring the common good without adversely affecting the market. The Human Development Report, 1994 indicated that many countries in Africa, Latin America and Asia (Southeast and East Asia) have registered success in reducing absolute poverty and inequality and providing employment. Access to safe water, sanitation and health services is also ensured with optimal efficiency. A few instances can be presented here. Literacy and education are the pillars on which the new-found development and prosperity of East and Southeast Asian countries are based.
The number of people in absolute poverty in many such Southern countries have also declined during a span of 25-30 years period. Daily calorie supply is more than the requirements. Deprivation is decreasing day by day. These countries have also proved that the objective of economic growth can be achieved with employment. Social disintegration and gross inequality are not always the outcome of massive economic growth. In the NICs, nearly 100 per cent of the total population have access to health services, safe water and sanitation. Some ASEAN (Association of South East Asian Nations) countries and countries in Latin America and Africa have also demonstrated effectiveness in providing health services, safe water and sanitation to their citizens.
That the market functions better towards the common good when and if social development is its companion is borne out by the following findings. A survey of 60 developing economies during 1965-87 revealed that those with twisted anti-market policies and a low level of education registered an average annual growth rate of 3.1 per cent. In contrast, the economies with higher levels of education or less policy distortions regarding free market displayed a yearly growth rate of 3.8 per cent. However, "the countries that had both higher level education and fewer distortions grew at 5.5 per cent a year".
Dr. Mizanur Rahman Shelley, founder Chairman of Centre for Development Research, Bangladesh (CDRB) and Editor of quarterly Asian Affairs, was a former teacher of political science in Dhaka University and former member of the erstwhile Civil Service of Pakistan (CSP) and former non-partisan technocrat Cabinet Minister of Bangladesh.
cdrb@agni.com