HISTORY AND POLITICS BEHIND FORMATION OF WTO

First half of 20^th Century has witnessed fierce and ruthless competition over trade by the European nations. Some nations did not have, while some others had colonies which meant captive market for them, while every country was trying to expand trade and find new market, they came to fighting over it. The situations became desperate when markets crashed, periods of great depressions set in and banks and industries failed like an epidemic. Then tension grew and actual wars broke out to destroy each others production systems and thus to get out of the crisis. Two world wars, one from 1914-1919 and the other one from 1939-1945 followed great depressions of 1910 and 1929-33.

One pertinent question remains - if trade wars had led to actual wars when millions of people were killed and countries devastated, why did they not sit and resolve their trade disputes across the table; say in 1920 or 1930 or 1940, or even 1970? More specifically - why was not WTO formed in that period when trade wars were commonplace?

World bodies were not unknown in those years. League of Nations (the fore-runner of United Nations) was formed in 1920. ILO (International Labour Organisation) was created in 1919. The United Nations (UN) and other organisations in its system like WHO, FAO, UNESCO, UNICEF came into existence before and after 1945, then why not WTO?

The answer is - politics, and partly the contradictions between the capitalist industrial states. The Western countries who boast themselves as "Free-market economies", and now ganged up as G-7 (US, UK, Canada, Germany, France, Japan and Italy) did not want to give the benefits of world trade to Soviet Union. Rather they cornered Soviet Union to weaken it, economically and militarily and it was not possible for them to exclude Soviet Union from any world body, if created. Secondly, many issues could not be resolved, after several trials, such as - standard currency, fixation of quota, fixing of exchange rates, and creation of an enforcement and disciplinary authority against the defaulters. So the situations continued.

But, after world war-2 something had to be done by them because many countries were devastated and socialism had spread to eastern Europe. So GATT was formed in 1945-46, to avoid any more war on trade.

GATT (General Agreement of Tariffs and Trade) was not a world body like UN but an agreement by which non-socialist countries discussed trade matters and agreements were reached, periodically. There were 5 rounds of such agreements till 1984. The 6^th round or the Uruguay Round started in 1985 which is now famous for many reasons. The Uruguay Round of GATT ended in formation of WTO in Marrakesh (Morocco) on 1^st January 1994. This sudden development has to be understood before we go ahead to study the real purpose and character of WTO.

It is the collapse of Soviet Union (USSR) in 1989. Soviet Union was a big hurdle before the monopoly capital in the world to have a complete grip over world economy. Soviet Union helped newly independent states to establish their own industry, services, facilities to help them to become really independent, stand on their own feet, serve their own people by providing them with jobs and basic human necessities.

The American Govt. refused to erect a steel plant in India. They wanted us to export iron ore and buy steel from them telling us that it would be cheaper. USSR built 3 steel plants in Bhilai, Bokaro and Vizag which are best plants operating in India. They have given us our own strength in BHEL, HMT, BOGL, MAMC, HEC, IDPL and so on. Cuba was largest sugar cane producer in the world but there was not a single sugar mill before revolution. All the canes were sent to US to make sugar. Cuban farmers starved but Americans made money. Soviet Union helped Cuba to build a chain of sugar mills. Egypt was made green by Aswan Dam built by USSR. The list will be unending. American big business and their friends considered Soviet Union to be their main hurdle to have complete control over world economy. And Soviet Union was powerful also, too powerful to risk a war with it to break it physically.

Now, when Soviet Union is gone, international monopoly capital led by United States is on the rampage. They have formed WTO which, helped by World bank and International Monetary Fund, is out to bring entire world economy in their grips. They dictate all newly independent governments what to do and what not to do. They want all the industries, banks, insurance companies under govt. control to be privatised which will be finally taken over by them - the American, the British and other multi-nationals. The way TOMCO of TATA’s, cold drink companies, tea gardens and companies have been swallowed by them, now oil companies, Banks, LIC all will go under their control-it is only a matter of time. Our economic freedom is going away so also our national sovereignty. Bill Clinton and his cohorts dictate all the third world governments on all matters as if they are the masters of the world. WTO, IMF and WORLD BANK are the new weapons in their hand.

CHANGING WORLD ECONOMIC ORDER

It is not a fact that Multi-national corporations were making less profit before the WTO but now they making super-profits. Take a test case of Tea. The average price of tea exported from India is 2 to 2.5 dollars per kilogram. That tea is sold in London market at 50 to 60 dollars per kg. Imagine the profit. But Indian companies who exported tea also made profit and that profit was retained in the country as per law. After the Govt. of India went for globalisation under the dictates of world bank and IMF, first Lipton and Brook Bond merged together as LIPTON, which then was taken over by British multinational UNILEVER (though name is Hindustan Lever it is no longer an Indian company but a wholly owned subsidiary of UNILEVER). To-day Hindustan Lever is exporting tea to UNILEVER of London and both are making profit. Only change is that now Hindustan Lever can take away the profit to England, the old restrictions have gone - after globalisation and liberalisation.

The picture is the same everywhere. London is floating on "money" said one of their trade delegation leaders. The developing countries are becoming poorer. Industries are closing down, people are being retrenched or retired, employment generation is negligible. Old people like me may have a future with the retiral money but youngsters have only darkness before them. Only the "toppers" among the students may aspire to get jobs, for the rest - future is uncertain. One ILO report says - " yet too many individuals, families and communities are entering the 21^st century with an extremely high sense of general uncertainty and personal insecurity. There is an uneasy feeling that the way the global economy is working generates high level of tension in too many people".

WTO, IMF, WORLD BANK are pushing the national governments harder to further liberalise, globalise and privatise so that whatever is still left out will be grabbed by the multinational monopoly capital. "Free trade is road to prosperity" is their slogan. For the developing countries it is proving to be a curse. Already share of global trade by developing countries has come down from 30% to 26%, all the currencies have been devalued dramatically (one dollar in 1991 was Rs. 18.00 now Rs. 44.00). The number of billionaires in United States of America has been doubled in last 3 years. America is not floating but flying over money, though poor in America are also getting poorer in these days. The process is going on and on.

WHAT FUTURE IS IN STORE

A study says that by 2030 only 5% people will work in industries (now 55%) in developed countries and 1% in agriculture (now 5%); but production will be doubled. They are using their huge profits to further modernise their industries and in the long run our domestic industries will have to be closed down to make room for their products . It is already being feared that soon India will be supplier of raw materials and a nation of traders and shop keepers, may be we will only produce pants, shirts and shoes for them.

In coming years WTO will oversee that all countries follow the new Patent Laws the new Investment Laws that give full freedom to any to invest anywhere in the world. It will see that there is no restriction by any country on trade and all the national governments change the labour laws to give full power to MNCs to employ or dismiss workers at will. WTO is set to be more powerful than United Nations, powered by money and trade weapons having no accountability to any government or people.

But resistance is also growing. WTO has hit headlines during Seattle meet because diverse groups wanted maximum benefit from trade. Americans wanted that subsidy on agriculture should be withdrawn, Europe said - no. One group said that labour in third world must be better paid or else, their products are killing Americans jobs, other group said - never, then why should we go to India or Bangladesh to invest if we don’t get the benefit of very low wage? The socially conscious groups said that WTO must be scrapped immediately and Bill Clinton said - never, because monopoly capital never had it so good.

So WTO will continue to hit news headlines because we cannot suffer, we cannot die like this. Some purchased, bribed politicians and so called intellectuals in our country are singing, dancing with joy because they have dollars in their pockets, good cars, mobile phones and beautiful girls whom they parade half-naked, crown them in some name and make money selling cosmetics. They are not the whole people. People are rising and the monopoly capital epitomed in WTO will be under attack in coming days.

To-day’s students must know that next five years will be very crucial for a country like ours. There will be further liberalisation of imports, more concessions to foreign monopoly capital and govt.’s role in commerce and industry will be further limited to almost nil. These all are as per WTO agreement. Government will be voted to power by the people but will remain hopelessly restrained to do anything for the citizens. Investment, employment, export, import everything will be decided by others, the investors and govt. will look on - not able to do anything.

Profit is not everything. This is not democracy, this is not society. This is jungle-raj where profit mongering beasts are devouring others and everything else. So the WTO, IMF, WORLD BANK are already branded enemies of the people. They have it their day - for the time being, but not for all time to come.

People are going to rise and resist, internal contradiction in the capitalist camp will also grow, inevitably - we will see many more Seattles in future.