WEBVTT 00:00:13.960 --> 00:00:15.439 Encirclement 00:00:21.680 --> 00:00:31.320 Neo-Liberalism Ensnares Democracy 00:00:31.320 --> 00:00:37.080 Producer, director, editor 00:00:37.080 --> 00:00:42.840 Photography 00:00:42.840 --> 00:00:48.680 Sound 00:00:48.680 --> 00:00:54.480 Music 00:00:54.480 --> 00:01:17.474 In order of appearance 00:01:30.600 --> 00:01:33.831 In the ’30s, the term “totalitarian regime” 00:01:34.200 --> 00:01:37.158 was applied to single-party regimes 00:01:39.240 --> 00:01:41.470 where the party’s mandate 00:01:42.800 --> 00:01:46.270 was to rule over the totality of a society’s activities - 00:01:47.800 --> 00:01:52.794 political, economic, social, cultural. The state looked after everything. 00:01:53.000 --> 00:01:58.632 Unfortunately, we had examples particularly in Fascism, Nazism … 00:01:58.920 --> 00:02:03.357 and Stalinism: totalitarian societies run by an omnicompetent party. 00:02:03.760 --> 00:02:09.392 Today, we live in a democracy, of course, but we notice that … 00:02:09.639 --> 00:02:12.438 single parties have given way to a single mindset, 00:02:13.080 --> 00:02:17.073 and the proponents of such unilateral thinking 00:02:17.320 --> 00:02:21.552 reckon that there is but one solution - 00:02:21.800 --> 00:02:27.238 the one imposed by the market - to cover all society’s activities. 00:02:27.440 --> 00:02:34.278 Whatever the activity - economic, social, cultural, athletic - 00:02:35.880 --> 00:02:38.792 the market is mandated to regulate it. 00:02:39.920 --> 00:02:45.153 We see how the market penetrates all society’s interstices, 00:02:45.360 --> 00:02:50.957 like a liquid, that leaves nothing and spares nothing. 00:02:51.240 --> 00:02:55.199 This is why we can now talk about “globalitarian” regimes: 00:02:55.440 --> 00:02:59.069 because there’s a will to impose 00:02:59.320 --> 00:03:03.199 a kind of unique solution to the plurality of our problems. 00:03:05.600 --> 00:03:07.750 I wrote “La Pensée Unique” … 00:03:08.920 --> 00:03:11.229 in 1995, 00:03:11.640 --> 00:03:14.313 when most of our citizens … 00:03:14.600 --> 00:03:17.273 hadn’t yet become totally aware 00:03:18.200 --> 00:03:24.070 that we had fallen into an ideology in which we were now immersed. 00:03:25.840 --> 00:03:29.674 Today, we’d call this ideology “neo-liberal”. 00:03:30.960 --> 00:03:34.077 Neo-liberalism is an economic technique, 00:03:35.880 --> 00:03:38.758 a certain set of economic principles, 00:03:39.000 --> 00:03:43.551 but in reality, imperceptibly, it’s also a veritable ideological yoke. 00:03:44.000 --> 00:03:48.391 This is what I was trying to point out, primarily, 00:03:48.920 --> 00:03:52.037 by saying what it ultimately consists in: 00:03:52.920 --> 00:03:56.959 Neo-Liberalism consists in a certain number of principles, 00:03:57.200 --> 00:04:00.351 notably that the market’s invisible hand 00:04:00.600 --> 00:04:05.116 is there to settle problems. People and States need not get involved, 00:04:05.240 --> 00:04:07.231 let the market work. 00:04:08.480 --> 00:04:11.313 Establishing principles like deregulation. 00:04:11.560 --> 00:04:14.996 Everything’s over-regulated, the State’s been too involved. 00:04:15.200 --> 00:04:16.791 We need less government. 00:04:17.920 --> 00:04:23.313 Capital must prevail over labour. We must always favour capital. 00:04:23.800 --> 00:04:26.360 And we must privatize. 00:04:27.720 --> 00:04:32.635 The State’s perimeter must be small, the private sector’s expansive. 00:04:33.240 --> 00:04:38.314 Free trade must be promoted because commerce is development. 00:04:38.560 --> 00:04:41.996 We made this kind of equivalency. 00:04:42.520 --> 00:04:48.709 I was trying to show how these principles weren’t recent, 00:04:48.920 --> 00:04:53.550 but had been developed since ’44, since the Bretton-Woods conference, 00:04:53.800 --> 00:04:56.633 which initiated the IMF and the World Bank. 00:04:56.880 --> 00:05:01.510 It arose from all the work the IMF had done since the ’60s and ’70s 00:05:01.760 --> 00:05:05.150 geared towards southern countries, called “structural adjustment”, 00:05:05.400 --> 00:05:09.188 or, in some countries, “the Washington Consensus”, 00:05:09.440 --> 00:05:13.911 namely that State budgets must necessarily be reduced, 00:05:14.160 --> 00:05:17.630 no public deficit, no inflation, 00:05:17.920 --> 00:05:23.597 bureaucracies must be reduced, all public services like health … 00:05:23.880 --> 00:05:27.077 and education must be reduced to a minimum. 00:05:27.320 --> 00:05:30.995 The State isn’t to make that kind of expenditure, etc. 00:05:31.800 --> 00:05:34.917 Many southern countries suffered greatly, of course. 00:05:36.040 --> 00:05:40.397 These were basically my points, and when we add up these elements, 00:05:40.600 --> 00:05:43.194 we’re faced with an ideology. 00:05:43.400 --> 00:05:48.030 And at the time, France was on the eve of a presidential election, 00:05:48.280 --> 00:05:51.033 which took place a few months later in May. 00:05:51.280 --> 00:05:54.590 So, I was saying that ultimately, in reality, 00:05:54.840 --> 00:06:00.710 we were being proposed this almost single-party kind of pensée unique. 00:06:02.640 --> 00:06:04.232 Leftist Privatization 00:06:11.760 --> 00:06:17.200 Shortly after the Iron Curtain fell, we witnessed in the West 00:06:17.200 --> 00:06:22.760 a reframing rightwards by the vast majority of left-wing parties. 00:06:22.760 --> 00:06:31.640 From the British Labour Party to Germany’s SPD via the Parti Québécois, 00:06:31.640 --> 00:06:39.440 they all got into a State “reform”, “reengineering” or “modernization” 00:06:39.440 --> 00:06:45.080 that invariably meant adopting neo-liberal politics. 00:06:45.080 --> 00:06:52.120 From 1997 to 2002 in France, Lionel Jospin’s socialist government 00:06:52.120 --> 00:06:57.880 proceeded to privatize about 10 major national corporations - 00:06:57.880 --> 00:07:08.120 the same number as the right-wing governments before and afterwards. 00:07:08.120 --> 00:07:16.760 How has neo-liberalism found its way into so-called “socialist” parties? 00:07:16.760 --> 00:07:21.515 And where is it coming from? 00:07:22.520 --> 00:07:30.108 origins 00:07:32.800 --> 00:07:35.473 Winnipeg General Strike, 1919 00:07:35.720 --> 00:07:38.553 Neo-liberalism appeared … 00:07:38.800 --> 00:07:41.519 under particular intellectual and institutional configurations. 00:07:41.800 --> 00:07:44.360 Generally speaking, from 1914 to 1945, 00:07:44.600 --> 00:07:47.910 capitalism went through an unprecedented crisis. 00:07:48.200 --> 00:07:52.318 The crisis was a material one. In the ’20s, 00:07:52.520 --> 00:07:55.512 capitalism had boomed after Reconstruction, 00:07:55.600 --> 00:07:57.750 but the Depression in the ’30s 00:07:58.000 --> 00:08:01.151 led to unemployment, bankruptcy, political disorder. 00:08:01.320 --> 00:08:02.958 And intellectually, 00:08:03.240 --> 00:08:07.552 the liberal credo yielded to the claims of economic planning, 00:08:07.800 --> 00:08:11.873 interventionism, and general wariness of laissez-faire. 00:08:12.880 --> 00:08:16.714 There was widespread demand for reinforced State intervention, 00:08:16.920 --> 00:08:18.876 state-controlled economies. 00:08:19.120 --> 00:08:23.557 This turned into concrete projects, both in “dictatorships” 00:08:23.800 --> 00:08:25.279 and in democracies. 00:08:25.400 --> 00:08:29.188 We think of the Soviet 5-year plan 00:08:29.480 --> 00:08:32.039 and also the New Deal in the U.S., 00:08:32.240 --> 00:08:35.596 under the National Recovery Administration (NRA) 00:08:36.120 --> 00:08:37.837 and other such structures. 00:08:38.120 --> 00:08:41.317 In Nazi Germany, it was the Reich economics ministry. 00:08:41.559 --> 00:08:44.198 In Fascist Italy, it was the corporations ministry. 00:08:44.440 --> 00:08:47.910 Even in France, a national economy ministry was established - 00:08:48.200 --> 00:08:51.397 a totally new thing, under the rising Front Populaire. 00:08:52.440 --> 00:08:56.194 Communist Demonstration Berlin, 1929 00:09:22.360 --> 00:09:25.750 Important to establishing a neo-liberal network in France 00:09:25.880 --> 00:09:27.791 was building a publishing house. 00:09:28.040 --> 00:09:31.271 It was called Les Éditions de la Librairie de Médicis, 00:09:31.560 --> 00:09:33.471 founded in 1937. 00:09:33.680 --> 00:09:37.832 It was created by a woman, Marie-Thérése Génin, 00:09:38.080 --> 00:09:41.152 which was rare in this fairly masculine field. 00:09:41.400 --> 00:09:45.837 She was connected to a leader in French business associations, 00:09:45.960 --> 00:09:47.075 Marcel Bourgeois, 00:09:47.320 --> 00:09:51.916 who encouraged her to establish a vehicle for intellectual texts 00:09:52.160 --> 00:09:54.833 for a public of intellectuals. 00:09:55.080 --> 00:09:58.914 Éditions de Médicis published Walter Lippmann’s La Cité Libre, 00:09:59.160 --> 00:10:01.435 the precursor of the Walter Lippmann colloquium, 00:10:01.680 --> 00:10:06.390 as well as texts by Hayek, Rueff, Ludwig von Mises. 00:10:06.800 --> 00:10:10.634 About 40 works between 1937 and 1940. 00:10:10.920 --> 00:10:14.390 They published the proceedings of the Lippmann colloquium 00:10:14.640 --> 00:10:17.916 at the Institut International de Coopération Intellectuel, 00:10:18.160 --> 00:10:21.789 now defunct, but the forerunner of UNESCO. 00:10:22.000 --> 00:10:24.958 This happened in a fairly official context. 00:10:26.440 --> 00:10:32.709 There were 26 participants, whose significance is now acknowledged: 00:10:33.080 --> 00:10:36.868 Friedrich Hayek, future Nobel Prize winner for economics, 00:10:37.120 --> 00:10:41.159 Robert Marjolin, a pillar of European construction, 00:10:43.240 --> 00:10:46.073 the founders of Germany’s “social market economy”, 00:10:46.320 --> 00:10:48.515 Alexander Rüstow and Wilhelm Röpke, 00:10:48.760 --> 00:10:51.194 de Gaulle’s financial advisor, Jacques Rueff, 00:10:51.360 --> 00:10:55.592 the mastermind of Ronald Reagan’s Star Wars, Stefan Possony. 00:10:56.400 --> 00:11:00.712 That’s all hindsight. At the time, they were less famous. 00:11:01.400 --> 00:11:05.188 The colloquium lasted 4 days, during which were discussed 00:11:05.440 --> 00:11:09.672 the eventual responsibilities of liberalism in the Depression, 00:11:09.920 --> 00:11:12.480 as well as the means of renewing liberalism 00:11:12.720 --> 00:11:17.191 and building worldwide opposition to interventionism and socialism. 00:11:17.880 --> 00:11:22.360 The Walter Lippmann Colloquium hosted the avant-garde 00:11:22.360 --> 00:11:26.520 of the neo-liberal battle in preparation. 00:11:26.520 --> 00:11:30.920 Among the most ferocious opponents of collectivism, 00:11:30.920 --> 00:11:36.552 Friedrich von Hayek and Ludwig von Mises stood out. 00:11:37.120 --> 00:11:41.989 Hayek and Mises represented a particular trend in neo-liberalism, 00:11:42.200 --> 00:11:44.236 the Austrian School. 00:11:44.520 --> 00:11:49.389 They advocated a radical liberalism that grants the State minimal power. 00:11:49.640 --> 00:11:54.077 The minimal State is an expression used by their disciples. 00:11:54.840 --> 00:11:57.593 These two had slightly different economic ideas. 00:11:57.840 --> 00:12:01.594 Liberals often gloss over their divergent views. 00:12:01.800 --> 00:12:04.189 But they also had certain points in common. 00:12:04.400 --> 00:12:08.951 The first is that economic science was just a fraction of their work. 00:12:09.120 --> 00:12:13.750 Mises considered it a branch of the more general science of human action. 00:12:13.880 --> 00:12:17.236 Hayek soon left pure economics 00:12:17.520 --> 00:12:20.159 to pursue psychology. He studied the brain, 00:12:20.360 --> 00:12:25.309 political orders, law, etc. For them, economics … 00:12:25.520 --> 00:12:30.150 was their original field, but it didn’t cover all of the humanities. 00:12:30.440 --> 00:12:35.070 Secondly, their conception of economics was fairly particular. 00:12:35.320 --> 00:12:38.232 Austrian School economics were far from concrete: 00:12:38.480 --> 00:12:41.677 no statistics, no mathematical data, etc. 00:12:41.880 --> 00:12:47.113 Everything stemmed from axiomatics. There were “typical” ideal situations 00:12:47.360 --> 00:12:51.194 where one observes how a rational person acts 00:12:51.400 --> 00:12:54.472 in negotiating choices between work and leisure, 00:12:55.920 --> 00:12:57.911 sleeping and getting rich, etc., 00:12:58.160 --> 00:13:01.835 supported by metaphors like Robinson Crusoe on his desert island. 00:13:02.600 --> 00:13:07.958 The third thing they had in common, significant to neo-liberal history, 00:13:08.200 --> 00:13:12.398 is a concept of intellectual work and its role in socialism. 00:13:12.800 --> 00:13:17.191 The thinking of Hayek and Mises was very elitist and aristocratic: 00:13:17.440 --> 00:13:20.193 basically, that the mass of humanity doesn’t think. 00:13:20.400 --> 00:13:24.518 Mises book, Socialism, says, “The masses do not think.” 00:13:24.760 --> 00:13:28.196 Only a few intellectuals think, and do so on society’s behalf. 00:13:28.440 --> 00:13:32.069 So they thought, intellectuals must think, 00:13:32.360 --> 00:13:37.957 and progressively oppose socialism, which other intellectuals invented 00:13:38.160 --> 00:13:41.470 and spread to the masses. Socialism wasn’t spontaneous. 00:13:41.720 --> 00:13:43.915 It was propagated by intellectuals. 00:13:44.040 --> 00:13:48.192 Hayek and Mises put the intellectual at the centre of social change, 00:13:48.400 --> 00:13:51.710 and political and economic change. 00:13:52.400 --> 00:13:56.393 This led to them founding groups like the Mont Pelerin Society. 00:13:58.000 --> 00:14:04.360 War imposed a hiatus on the neo-liberals’ militant activities. 00:14:04.360 --> 00:14:10.920 The CIRL, a French research centre for the renewal of liberalism 00:14:10.920 --> 00:14:16.836 arising from the Lippmann Colloquium, disappeared after only a year. 00:14:37.640 --> 00:14:42.440 As soon as the war ended, Hayek took up the torch again. 00:14:42.440 --> 00:14:46.040 He invited proponents of liberal reestablishment 00:14:46.040 --> 00:14:53.913 to a meeting that would be decisive to the future of neo-liberalism. 00:14:54.440 --> 00:14:58.911 The Mont Pelerin meeting took place … 00:14:59.160 --> 00:15:02.550 from April 1 to 10, 1947, 00:15:02.960 --> 00:15:06.589 in the Hôtel du Parc, near Vevey, Switzerland. 00:15:08.440 --> 00:15:12.353 It was explicitly meant to bring together 00:15:12.600 --> 00:15:15.319 liberal European and American intellectuals, 00:15:15.560 --> 00:15:20.190 and to found an international organization for liberal ideas. 00:15:21.200 --> 00:15:25.159 Hayek had started making contacts 2 years earlier 00:15:25.400 --> 00:15:29.757 with Colloquium participants and the British and Americans. 00:15:30.000 --> 00:15:33.436 He invited this circle to Mont Pelerin, 00:15:33.520 --> 00:15:36.557 whence the society’s name. 00:15:36.800 --> 00:15:41.191 There were 39 participants at the first meeting. 00:15:41.480 --> 00:15:46.554 Again, there were some major figures: 3 future Nobel winners, 00:15:46.800 --> 00:15:50.156 Milton Friedman, George Stigler, Maurice Allais. 00:15:50.440 --> 00:15:54.115 People known for their political or philosophical essays, 00:15:54.360 --> 00:15:56.590 Karl Popper, Bertrand de Jouvenel. 00:15:56.840 --> 00:16:00.310 And those with direct political influence in their country - 00:16:00.400 --> 00:16:04.109 the Germans, Wilhelm Röpke and Walter Eucken, 00:16:04.200 --> 00:16:07.590 associated with Germany’s “social market economy”. 00:16:08.400 --> 00:16:12.439 Discussions revolved around relatively general subjects 00:16:12.880 --> 00:16:17.192 like Christianity and liberalism, the competitive order, 00:16:17.400 --> 00:16:21.837 the possibilities of founding a European economic federation. 00:16:22.040 --> 00:16:23.712 It lasted several days. 00:16:24.440 --> 00:16:27.671 Hayek thought they needed a flexible structure 00:16:28.280 --> 00:16:30.953 with invited members only, 00:16:31.320 --> 00:16:34.915 no offices, statutes deposited in Illinois, 00:16:35.120 --> 00:16:38.271 that would meet biannually in different countries - 00:16:38.600 --> 00:16:43.071 a fairly nebulous structure for confirmed intellectuals who thought 00:16:43.320 --> 00:16:47.233 liberalism was a doctrine primarily for intellectuals themselves. 00:16:49.920 --> 00:16:57.508 at the core of the neo-liberal network 00:17:05.240 --> 00:17:08.630 The Mont Pelerin Society is not a think tank. 00:17:08.839 --> 00:17:11.400 It’s a kind of liberal academy. 00:17:11.920 --> 00:17:15.833 Nevertheless, a kind of division of labour came about 00:17:16.079 --> 00:17:21.108 between the Society, which recruited only the most renowned liberals, 00:17:21.359 --> 00:17:24.954 and its members’ national activities, 00:17:25.200 --> 00:17:30.593 which could include setting up associations or think tanks. 00:17:31.080 --> 00:17:34.390 This took diverse forms. In France, they created 00:17:34.520 --> 00:17:38.308 the association for economic freedom and social progress in the ’60s, 00:17:38.560 --> 00:17:41.677 the French section of Mont Pelerin, 00:17:41.960 --> 00:17:46.909 the members of which were recruited from business or politics. 00:17:47.160 --> 00:17:49.196 This broadened recruitment 00:17:50.760 --> 00:17:54.150 into milieux other than intellectual circles. 00:17:54.720 --> 00:17:59.316 The other, think-tank model has been perennial in Mont Pelerin’s history. 00:17:59.760 --> 00:18:05.312 The most famous are Britain’s 1955 Institute of Economic Affairs, 00:18:05.560 --> 00:18:11.317 or the Heritage Foundation from 1973, linked to the U.S. Republican party. 00:18:11.920 --> 00:18:16.630 These think tanks have appointed employees, 00:18:16.720 --> 00:18:20.679 people paid to write notes, produce legislative proposals 00:18:20.920 --> 00:18:24.435 that are all laid out and distributed to politicians 00:18:24.680 --> 00:18:30.277 and to journalists with the aim of creating liberal public opinion. 00:18:31.040 --> 00:18:33.474 There are now hundreds of think tanks 00:18:34.200 --> 00:18:37.431 that form a veritable cluster which is fairly disorienting, 00:18:37.680 --> 00:18:41.593 to the point where think tanks like the Atlas Foundation 00:18:41.840 --> 00:18:44.991 now have the role of promoting think tanks 00:18:45.240 --> 00:18:49.518 by distributing kits and instructions on how to form one’s own. 00:18:49.760 --> 00:18:52.957 They take very different forms. 00:18:53.400 --> 00:18:56.949 Groups focused on an author - the Hayek Center, 00:18:57.080 --> 00:18:59.594 the Mises Institute - 00:18:59.880 --> 00:19:02.474 that revolve around a particular person’s work. 00:19:02.760 --> 00:19:07.038 Groups can have a subject of particular concern - 00:19:07.280 --> 00:19:10.556 the environment, foreign politics, etc. 00:19:10.800 --> 00:19:16.511 The quality and power of these think tanks are very different. 00:19:17.040 --> 00:19:22.433 A think tank’s strength comes from whether it can connect intellectuals, 00:19:22.680 --> 00:19:27.231 some businessmen, and a general trend within conservative parties. 00:19:27.440 --> 00:19:31.228 There are think tanks like the Center for Policy Studies 00:19:31.480 --> 00:19:33.152 of Keith Joseph, 00:19:33.400 --> 00:19:36.710 which promoted Thatcher and let her garner … 00:19:36.920 --> 00:19:41.152 support to revolutionize the Conservative Party in the ’70s. 00:19:41.320 --> 00:19:45.871 That’s an organization at the junction of 3 milieux. 00:19:46.160 --> 00:19:51.712 A purely intellectual think tank with general thoughts on liberalism 00:19:51.880 --> 00:19:54.952 would have little influence on political debate. 00:20:01.320 --> 00:20:04.949 A whole part of the career of Mises, Hayek, etc. 00:20:05.160 --> 00:20:10.553 can be explained by the affinities they had with business lobby leaders. 00:20:10.800 --> 00:20:15.999 Mises was associated with the U.S. Foundation for Economic Education, 00:20:16.200 --> 00:20:20.512 and thus with business associations. Hayek got to Chicago 00:20:20.760 --> 00:20:27.233 financed by tycoons who wanted him to write another “Road to Serfdom”, 00:20:27.360 --> 00:20:29.635 but on America, not just England. 00:20:29.880 --> 00:20:32.952 These intellectuals got more power 00:20:33.080 --> 00:20:37.596 by teaming up with or befriending powerful people. 00:20:37.800 --> 00:20:41.839 Hayek’s work may reveal a utopian quality, 00:20:42.080 --> 00:20:46.039 but it’s the Utopia of the strongest, not the most underprivileged. 00:20:48.720 --> 00:20:54.160 Financed by corporations and vast private fortunes, 00:20:54.160 --> 00:21:01.160 neo-liberal think tanks often enjoy charitable organization status. 00:21:01.160 --> 00:21:06.960 Their generous donors thereby have the right to tax exemptions. 00:21:06.960 --> 00:21:11.400 However, the law says charitable organizations 00:21:11.400 --> 00:21:15.120 cannot engage in political acts. 00:21:15.120 --> 00:21:20.877 In 1989, Greenpeace was stripped of its charitable status 00:21:21.000 --> 00:21:23.720 by the Canadian government. 00:21:23.720 --> 00:21:27.280 The Canada Revenue Agency concluded that this NGO 00:21:27.280 --> 00:21:30.960 did not always act in the public’s interest. 00:21:30.960 --> 00:21:36.360 It contributed, for example, “to propelling people into poverty 00:21:36.360 --> 00:21:40.520 by demanding the closure of polluting industries.” 00:21:40.520 --> 00:21:46.640 On the other hand, no neo-liberal think tank with charitable status 00:21:46.640 --> 00:21:49.200 has ever been interfered with. 00:21:49.200 --> 00:21:54.760 During their annual declaration to the Canadian government, 00:21:54.760 --> 00:21:59.760 these “non-partisan” research institutes solemnly state 00:21:59.760 --> 00:22:04.200 that they “do not try to influence public opinion 00:22:04.200 --> 00:22:08.352 or obtain the modification of a law or policy”. 00:25:13.560 --> 00:25:22.150 How can the market promote individual choice and freedom? 00:25:22.400 --> 00:25:26.234 Student seminar, The Fraser Institute on public policy, 00:25:26.480 --> 00:25:29.711 organized jointly with l’Institut Économique de Montréal … 00:25:29.960 --> 00:25:31.837 Saturday, February 10, 2001 , 00:25:32.080 --> 00:25:35.550 sponsored by Fraser Institute supporters throughout Québec” 00:25:37.120 --> 00:25:39.350 When one grants coercive power, 00:25:39.600 --> 00:25:41.989 the monopoly on coercive power, 00:25:42.120 --> 00:25:45.476 to an agency, one we call the government, 00:25:46.200 --> 00:25:49.431 there will always be a tendency … 00:25:49.640 --> 00:25:54.998 to use it, either ignorantly, or to abuse this power. 00:25:55.480 --> 00:25:59.029 And power has a tendency to grow. 00:25:59.800 --> 00:26:04.794 What the Fraser Institute tries to research and emphasize is, 00:26:05.360 --> 00:26:08.989 what the proper limits of government are, 00:26:09.200 --> 00:26:13.113 and what are the limits of private enterprise, 00:26:13.360 --> 00:26:16.318 or of voluntary exchanges between individuals? 00:26:17.080 --> 00:26:22.393 Therein lies the nexus, the division, 00:26:22.600 --> 00:26:28.516 between coercion and free will that will inform my discussion … 00:26:28.760 --> 00:26:33.595 my lecture today. And you’ll be seeing lectures by others who came 00:26:33.840 --> 00:26:35.831 to participate today. 00:26:36.040 --> 00:26:37.268 SPECIAL LUNCHEON PRESENTATION 00:26:37.480 --> 00:26:41.109 … from the Foundation for Economic Education in New York. 00:26:41.360 --> 00:26:43.635 In his presentation, ’Cleaned by Capitalism’, 00:26:43.880 --> 00:26:48.715 this expert on liberty will discuss how our rising standard of living 00:26:49.000 --> 00:26:53.073 has allowed us the ‘luxury’ of worrying about such things 00:26:53.160 --> 00:26:55.037 as global environmental issues.” 00:28:51.800 --> 00:28:56.874 This seminar’s not government funded. It’s financed by private sponsorship. 00:28:58.760 --> 00:29:04.118 It’s encouraging to see people put their money where their beliefs are. 00:29:05.200 --> 00:29:08.510 I think there are far too many services 00:29:08.760 --> 00:29:13.470 like unemployment insurance, health, education, 00:29:13.720 --> 00:29:16.154 that fall under a monopoly, 00:29:16.280 --> 00:29:20.876 that of the government, which is the sole producer of these services. 00:29:21.320 --> 00:29:24.153 Why not open it up and have competition? 00:29:26.440 --> 00:29:31.309 We could have competition in the production of services, 00:29:31.520 --> 00:29:34.751 and perhaps address our concern for the poor 00:29:35.000 --> 00:29:38.549 by giving them grants so they can buy these services. 00:29:38.800 --> 00:29:40.199 So, divide … 00:29:40.880 --> 00:29:45.192 Separate production, which I’d like to see private and competitive, 00:29:45.440 --> 00:29:49.672 from funding, which could be partly governmental. 00:29:56.360 --> 00:30:01.912 I don’t like talking about markets. They don’t exist without governments. 00:30:02.320 --> 00:30:04.231 Every market needs rules. 00:30:04.520 --> 00:30:08.399 Every market needs a certain level of coercion. 00:30:10.120 --> 00:30:14.636 And I don’t like talking about freedom as a value in itself. 00:30:14.760 --> 00:30:17.354 Many people don’t want freedom. 00:30:20.360 --> 00:30:23.079 l’d like the freedom to choose my masters. 00:30:24.680 --> 00:30:25.908 What I try to … 00:30:27.760 --> 00:30:29.990 discuss in my lectures is, 00:30:30.680 --> 00:30:32.352 how can we … 00:30:34.440 --> 00:30:38.911 have a system of government that permits us the choice 00:30:39.560 --> 00:30:42.757 of what kind of representatives and restrictions we’ll choose. 00:30:43.000 --> 00:30:47.551 We must all live under restrictions, even the fiercest libertarians. 00:30:50.360 --> 00:30:58.040 brief liberal anthology 00:30:58.040 --> 00:31:05.674 libertarianism and the theory of public choice 00:31:07.640 --> 00:31:10.108 Le Québécois Libre Editorial 00:31:10.360 --> 00:31:12.590 What must libertarians do?” 00:31:12.840 --> 00:31:15.195 Libertarianism is the descendent 00:31:15.440 --> 00:31:18.113 of classic liberal philosophy. 00:31:18.320 --> 00:31:21.118 It puts the accent on individual freedom 00:31:21.640 --> 00:31:25.918 and its repercussions. Economically, it’s the free market. Politically, 00:31:26.160 --> 00:31:30.119 it’s the minimal State and the least coercion possible. 00:31:30.360 --> 00:31:32.157 The least regulation … 00:31:33.720 --> 00:31:37.759 It gives individuals as much leeway as possible to act 00:31:37.960 --> 00:31:40.793 and have willing relationships with others. 00:31:41.040 --> 00:31:43.554 Socially speaking as well, it’s … 00:31:44.120 --> 00:31:50.150 the polar opposite of philosophies that impose some social, religious … 00:31:50.960 --> 00:31:53.520 or cultural order. The idea is, 00:31:53.760 --> 00:31:59.517 if we are free in a context where person and property are protected, 00:32:00.680 --> 00:32:05.674 everyone will be able to have voluntary relationships, 00:32:05.920 --> 00:32:09.595 which will lead to harmony. Libertarianism isn’t anarchy, 00:32:09.800 --> 00:32:14.749 with individuals fighting, “wild capitalism”, “wild competition”. 00:32:14.920 --> 00:32:16.239 It’s not that at all. 00:32:16.440 --> 00:32:22.231 It’s giving people enough space for peaceful, voluntary relationships. 00:32:23.080 --> 00:32:30.430 Neo-liberal, anarchist or libertarian? 00:32:30.800 --> 00:32:34.031 Libertarianism is the descendent of classic liberalism, 00:32:34.280 --> 00:32:39.274 a philosophy that was developed in the 17th and 18th century 00:32:41.440 --> 00:32:46.195 in reaction to the authoritarian monarchies of the period. 00:32:46.440 --> 00:32:49.000 Liberalism said, 00:32:49.200 --> 00:32:53.193 to match sovereign power, individuals must have more freedom. 00:32:53.480 --> 00:32:57.314 This developed in subsequent centuries to give us … 00:32:58.200 --> 00:33:02.079 our current philosophy, which embraces the free market … 00:33:02.680 --> 00:33:05.672 But 20th-century libertarians 00:33:06.360 --> 00:33:10.717 stand apart from liberals. The definition of “liberal” has changed. 00:33:10.960 --> 00:33:15.431 In the U.S. a liberal is ultimately the reverse: 00:33:15.720 --> 00:33:18.154 a social democrat or a leftist. 00:33:19.640 --> 00:33:24.475 Europe keeps the French tradition, where liberal means liberal. 00:33:24.720 --> 00:33:29.032 But there’s a lot of confusion. The Americans, the classic liberals, 00:33:29.320 --> 00:33:33.438 started calling themselves “libertarians” in the ’20s and ’30s 00:33:33.520 --> 00:33:36.193 to stand apart from leftist liberals. 00:33:36.360 --> 00:33:39.875 And libertarian philosophy is more coherent and radical 00:33:40.120 --> 00:33:41.838 than classic liberalism, 00:33:42.960 --> 00:33:46.999 calling for State reduction, either to its simplest form, 00:33:47.200 --> 00:33:52.194 or certain libertarians even favour eliminating the State altogether, 00:33:52.440 --> 00:33:56.399 privatizing even defence, security and justice. 00:33:56.840 --> 00:34:04.394 Redistributing wealth is immoral 00:34:05.720 --> 00:34:09.507 Today, in a society where the State spends … 00:34:11.159 --> 00:34:16.188 State expenditures represent about 45% to 50% of the GDP. 00:34:16.400 --> 00:34:19.551 The State controls such sectors as education, health. 00:34:19.760 --> 00:34:22.717 It controls a lot and regulates other things. 00:34:22.920 --> 00:34:26.435 It subsidizes almost everyone. Much of the population … 00:34:28.159 --> 00:34:31.596 lives only off the redistribution of money. 00:34:31.880 --> 00:34:37.159 They don’t produce goods demanded by others on the free market. 00:34:37.400 --> 00:34:41.996 They just receive State money confiscated from other taxpayers. 00:34:42.760 --> 00:34:45.274 This means there are many people … 00:34:46.800 --> 00:34:51.271 who live at the expense of others. From a libertarian standpoint, 00:34:52.040 --> 00:34:56.636 society can be divided in two, those who produce and those who live 00:34:56.880 --> 00:35:01.032 as the producers’ dependents and are a kind of parasite. 00:35:01.240 --> 00:35:03.800 It’s a strong word, but it’s appropriate. 00:35:04.880 --> 00:35:09.476 You can’t favour individual responsibility and defend that stance. 00:35:09.680 --> 00:35:15.437 All who live dependently on others are really irresponsible. 00:35:16.000 --> 00:35:19.390 They don’t do anything required and they live … 00:35:20.400 --> 00:35:26.475 on State coercion, which transfers wealth from one group to the other. 00:35:27.400 --> 00:35:31.359 If we want to promote freedom and responsibility, 00:35:32.440 --> 00:35:36.956 we cannot accept the dependency of much of the population. 00:35:39.000 --> 00:35:45.320 The theory of public choice says the adoption of government policies 00:35:45.320 --> 00:35:48.880 is not motivated by collective interests 00:35:48.880 --> 00:35:54.400 but by the particular interests of various social groups. 00:35:54.400 --> 00:35:59.600 In 1986, James M. Buchanan, originator of this theory, 00:35:59.600 --> 00:36:05.040 who denounces State inefficiency and advocates limited public spending, 00:36:05.040 --> 00:36:08.635 won the “Nobel prize” for economics. 00:36:19.080 --> 00:36:22.709 Contrary to the perception being peddled here, 00:36:24.040 --> 00:36:27.874 we in Québec live in a State culture. People don’t realize 00:36:28.120 --> 00:36:31.032 because we’re so inured to this viewpoint, 00:36:31.240 --> 00:36:34.869 that we naturally accept it, but it’s actually a State culture 00:36:35.000 --> 00:36:36.991 that naively perceives … 00:36:39.160 --> 00:36:42.994 the State as the instrument to maximize the common good. 00:36:44.120 --> 00:36:46.395 As though the inspiration … 00:36:46.480 --> 00:36:50.632 But that view or vision of the State is perfectly … 00:36:53.800 --> 00:36:57.509 angelic. It has nothing to do with real governments. 00:36:58.960 --> 00:37:02.919 Why do we believe our governments, democratic as they are - 00:37:03.160 --> 00:37:04.957 which is an advantage - 00:37:05.720 --> 00:37:08.553 will maximize the common good? They won’t. 00:37:08.760 --> 00:37:12.355 Governments obey the game rules that rule them. 00:37:13.320 --> 00:37:16.551 What game rules? The electoral process. 00:37:16.840 --> 00:37:18.751 That’s the virtue of it. 00:37:19.240 --> 00:37:22.357 What does this herald? 00:37:23.160 --> 00:37:25.196 Primarily that … 00:37:25.560 --> 00:37:28.074 we will often witness … 00:37:29.920 --> 00:37:32.036 majority dictatorship. 00:37:32.880 --> 00:37:38.591 Since the primary, if not sole, rule in politics is the majority, 00:37:39.000 --> 00:37:44.028 a government that can win elections will first privilege the majority. 00:37:44.240 --> 00:37:48.995 The majority’s incomes are weak relative to the average. 00:37:50.560 --> 00:37:53.836 So the sole object of policies will be … 00:37:54.120 --> 00:37:56.634 to redistribute wealth in its favour, 00:37:56.880 --> 00:38:00.714 not to maximize wealth or enhance growth. 00:38:01.400 --> 00:38:04.676 Efficiency isn’t a major issue for a government. 00:38:05.960 --> 00:38:11.830 Its priority is redistributing wealth to the majority that elects it. 00:38:11.920 --> 00:38:14.912 That explains universal social programs. 00:38:15.120 --> 00:38:17.475 That explains … 00:38:19.400 --> 00:38:22.756 the majority’s predilections with regard to … 00:38:24.240 --> 00:38:29.314 the public health and education monopolies. 00:38:29.560 --> 00:38:32.199 It’s not compassion, nor a concern … 00:38:34.320 --> 00:38:37.756 for sharing wealth that inspires this position. 00:38:37.840 --> 00:38:43.915 The majority wants services paid by a slightly more affluent minority. 00:38:44.120 --> 00:38:45.439 That’s the sense of it. 00:38:45.520 --> 00:38:49.354 So, it’s a gigantic lie to say 00:38:50.640 --> 00:38:53.996 that compassion inspires … 00:38:54.840 --> 00:38:59.595 public health and education monopolies. That’s not the reality. 00:38:59.880 --> 00:39:04.476 The second dimension is that people, i.e., the majority, 00:39:06.000 --> 00:39:08.070 is rather apolitical. 00:39:09.160 --> 00:39:12.311 In economics, it’s what we call “rational ignorance”. 00:39:14.120 --> 00:39:16.554 It would be stupid for each of us 00:39:17.400 --> 00:39:20.790 to acquire lots of information on politics, 00:39:21.000 --> 00:39:26.120 to get informed on the impact on us of more than just a few policies. 00:39:26.320 --> 00:39:31.030 Because we can’t do anything. We’re one voter out of X million. 00:39:31.280 --> 00:39:35.114 So, informed or not, whether we vote wisely or badly, 00:39:36.320 --> 00:39:37.594 the result’s the same. 00:39:37.840 --> 00:39:43.949 So, everyone must aim to minimize the effort of understanding politics 00:39:44.040 --> 00:39:46.793 and political information, which they do. 00:39:46.920 --> 00:39:49.593 People often can’t name their MP. 00:39:50.600 --> 00:39:52.830 And they’d be incapable … 00:39:54.800 --> 00:39:56.836 of explaining a policy. 00:39:57.240 --> 00:40:00.391 To them, this is normal because, again, 00:40:00.760 --> 00:40:03.354 it would cost a lot to get informed, 00:40:03.600 --> 00:40:07.559 whereas their potential influence is nil. 00:40:07.960 --> 00:40:12.988 So, people are apathetic, apolitical. They don’t participate in politics 00:40:13.200 --> 00:40:16.033 because it’s not worth it. 00:40:16.280 --> 00:40:21.798 This opens the way for intervention by strategically placed groups. 00:40:22.040 --> 00:40:25.157 Interest groups. That explains their dominance. 00:40:27.880 --> 00:40:33.113 Organizations like the CSN or the Canadian Manufacturers’ Association 00:40:33.360 --> 00:40:38.275 are already prepared to do politics, propaganda and lobbying, 00:40:38.680 --> 00:40:43.037 at minimal cost because they’re already organized. 00:40:43.280 --> 00:40:48.035 So that means political decisions will be dominated 00:40:48.280 --> 00:40:51.716 by strategically placed people, organized groups. 00:40:53.000 --> 00:40:58.280 All the world’s great governments - today’s and yesterday’s - 00:40:58.280 --> 00:41:05.640 have merely been gangs of thieves, come together to pillage, conquer 00:41:05.640 --> 00:41:09.280 and enslave their fellow men. 00:41:09.280 --> 00:41:14.920 And their laws, as they call them, represent only those agreements 00:41:14.920 --> 00:41:21.160 they deemed it necessary to enter in order to keep their organization 00:41:21.160 --> 00:41:25.720 and act together in plundering and enslaving others, 00:41:25.720 --> 00:41:31.400 and securing to each his agreed share of the spoils. 00:41:31.400 --> 00:41:37.320 These laws impose no more real obligation than do the deals 00:41:37.320 --> 00:41:43.160 that brigands, bandits and pirates find it necessary to enter into 00:41:43.160 --> 00:41:45.000 with each other.” 00:41:45.000 --> 00:41:50.552 - Natural Law, or the Science of Justice, 1882 (paraphrased) 00:41:52.600 --> 00:41:58.630 lf we look objectively at the facts, the State is a coercive institution. 00:41:58.880 --> 00:42:02.555 The State can only operate by forcibly imposing things. 00:42:02.760 --> 00:42:03.715 For example, 00:42:05.360 --> 00:42:08.511 when the State has a monopoly like Hydro-Québec, 00:42:08.760 --> 00:42:12.878 if I decide to produce and sell electricity 00:42:14.320 --> 00:42:17.312 and I’m outside the monopoly, ultimately, 00:42:17.840 --> 00:42:22.914 they won’t just slap my wrists for breaking the rules. I’ll go to jail 00:42:23.160 --> 00:42:27.597 if I persist in doing something the State prohibits by regulation. 00:42:27.840 --> 00:42:31.833 The State will physically assault me if I offer a service 00:42:33.400 --> 00:42:38.428 that the statesmen have decided to monopolize. 00:42:38.680 --> 00:42:42.070 All the State does when it steals half our salary - 00:42:42.320 --> 00:42:44.709 sorry, but no one asked my opinion about it, 00:42:45.000 --> 00:42:48.356 so half my salary’s stolen … It could be said that, 00:42:48.560 --> 00:42:54.112 democratically, we elected people who decided that for us, 00:42:55.080 --> 00:42:59.596 but democracy is the “peaceful” organization 00:42:59.800 --> 00:43:01.756 of the State’s thievery. 00:43:02.520 --> 00:43:07.548 I didn’t vote to have half my salary lifted, but many are interested - 00:43:07.760 --> 00:43:11.435 because they live at the expense of the State - 00:43:11.680 --> 00:43:15.070 in having the State take half and giving it to them. 00:43:15.240 --> 00:43:18.550 So, democracy isn’t true freedom. 00:43:19.360 --> 00:43:23.831 I’m not anti-democratic in the sense of being for an authoritarian State, 00:43:23.920 --> 00:43:27.993 When you speak against democracy, you’re always seen as favouring 00:43:28.240 --> 00:43:32.472 an authoritarian State. On the contrary, I’m for a State 00:43:32.600 --> 00:43:35.512 that’s absolutely non-authoritarian, to the point where 00:43:35.760 --> 00:43:40.356 it doesn’t even justify its actions on the basis of democracy. 00:43:40.600 --> 00:43:44.036 Individual freedom does not equal democratic freedom. 00:43:44.240 --> 00:43:49.678 Democratically giving people the power to take and impose things, 00:43:50.800 --> 00:43:52.870 contradicts individual freedom. 00:43:53.520 --> 00:43:58.719 A true defence of individual freedom doesn’t favour more democracy, 00:43:58.960 --> 00:44:01.838 more ways of divvying up 00:44:02.760 --> 00:44:05.194 resources that have been stolen from others. 00:44:05.400 --> 00:44:11.430 We’re for reducing the State’s role so individuals are altogether free, 00:44:11.880 --> 00:44:17.318 not to decide which fox they’ll vote in 00:44:17.520 --> 00:44:21.479 to raid the hen house, but to decide what to do with their property. 00:44:25.000 --> 00:44:29.039 The incentives incorporated into social policies are harmful, 00:44:29.160 --> 00:44:31.993 both to the poor, and to the general population. 00:44:32.120 --> 00:44:37.672 What I mean by that is, we have a public social economy 00:44:38.520 --> 00:44:41.717 in parallel with the capitalist market economy. 00:44:41.960 --> 00:44:46.590 One is productive. The other is based on the former-USSR model 00:44:47.760 --> 00:44:52.993 and comprises incentives that hurt everyone. We reward people … 00:44:53.120 --> 00:44:56.635 for not working. We compensate them 00:44:56.840 --> 00:44:59.434 for not having stable families. 00:45:01.440 --> 00:45:04.193 Welfare for single mothers … 00:45:04.400 --> 00:45:07.597 is a way of multiplying births outside the family. 00:45:07.840 --> 00:45:12.311 And we reward poverty. It’s as radical as that. 00:45:12.440 --> 00:45:18.709 Poverty obeys the standard rules: subsidies make it more prevalent, 00:45:18.960 --> 00:45:21.758 because people start liking it. 00:45:22.680 --> 00:45:27.629 This has been clear in Ontario and the U.S. over the past 5 years, 00:45:27.800 --> 00:45:29.756 where they really imposed 00:45:30.280 --> 00:45:32.669 limits to people’s access 00:45:33.520 --> 00:45:35.875 to welfare payments, 00:45:36.120 --> 00:45:40.955 and the population of poor people fell by half in a few years! 00:45:41.600 --> 00:45:44.956 Because there was no more money, conditions changed, 00:45:45.080 --> 00:45:48.868 work was imposed on them, whatever the methods were. 00:45:55.680 --> 00:46:00.390 So, there are ways to foster people’s reinsertion 00:46:00.600 --> 00:46:03.068 into the productive economy. 00:46:03.560 --> 00:46:07.838 Instead of piling them into social housing, ghettos, 00:46:08.560 --> 00:46:10.118 where everyone’s poor, 00:46:10.360 --> 00:46:15.354 if they were given vouchers or stamps that gave them access to property, 00:46:16.120 --> 00:46:19.829 instead of subsidizing unemployment, 00:46:21.320 --> 00:46:24.949 as with unemployment insurance. People are subsidized 00:46:25.200 --> 00:46:28.829 to be unemployed. Otherwise, no subsidy. 00:46:30.600 --> 00:46:33.592 We could create unemployment savings funds, 00:46:33.840 --> 00:46:37.469 so people could accumulate a hedge, 00:46:38.120 --> 00:46:40.680 sheltered from tax, even subsidized, 00:46:41.200 --> 00:46:45.239 in case they lose their job. Everyone would then be careful 00:46:46.280 --> 00:46:51.593 not to lose their job because they’d be eating into their own fund, 00:46:51.840 --> 00:46:55.080 the beneficiary of their own savings. 00:46:55.080 --> 00:46:59.676 Lots of ideas. But our social policies are really built 00:47:00.400 --> 00:47:05.520 to create an industry of poverty, an industry of dependence, 00:47:05.640 --> 00:47:09.315 that benefits all the bureaucrats who gravitate around it 00:47:09.480 --> 00:47:13.359 and encourage dependence in the population, 00:47:13.560 --> 00:47:15.437 as well as political support, 00:47:18.080 --> 00:47:21.470 with no long-term effect across the country. 00:47:21.720 --> 00:47:24.188 Social policies haven’t diminished poverty. 00:47:24.920 --> 00:47:29.391 That’s the final diagnosis of the matter. 00:47:42.560 --> 00:47:44.232 We observe … 00:47:45.080 --> 00:47:46.308 that growth … 00:47:49.400 --> 00:47:52.870 Historically and from country to country, 00:47:53.080 --> 00:47:57.198 the growth of economies’ revenues is the only means 00:47:58.200 --> 00:47:59.553 to help the poor. 00:48:01.680 --> 00:48:04.717 We have rigorous data about this. 00:48:05.080 --> 00:48:07.913 The only variable that affects … 00:48:09.520 --> 00:48:12.034 that reduces poverty 00:48:12.480 --> 00:48:14.914 in various countries 00:48:15.160 --> 00:48:17.276 is the growth of wealth. 00:48:17.520 --> 00:48:20.318 Social policies count for nothing! 00:48:21.800 --> 00:48:24.394 So, whoever is concerned 00:48:26.200 --> 00:48:29.317 about helping the poor or underprivileged 00:48:29.520 --> 00:48:32.193 must also privilege growth. 00:48:33.800 --> 00:48:37.190 Consequently, all those who oppose free trade 00:48:37.680 --> 00:48:42.231 on behalf of poor countries, or of the poor within countries, 00:48:42.480 --> 00:48:45.790 are wrong. Their observations are mistaken. 00:48:47.440 --> 00:48:49.590 The facts contradict their options. 00:48:49.840 --> 00:48:54.550 The best help is to open trade so everyone’s income goes up. 00:48:54.760 --> 00:48:59.151 Statistically, the income of the poor increases as fast as anyone’s 00:48:59.400 --> 00:49:03.712 when revenues go up. To achieve this, the economy must be opened up. 00:49:04.280 --> 00:49:06.236 Beyond that, 00:49:07.280 --> 00:49:11.239 beyond helping the poor with measures that might help, 00:49:11.920 --> 00:49:15.230 I don’t see any … 00:49:15.360 --> 00:49:18.158 basis for redistributing wealth. 00:49:20.400 --> 00:49:23.676 The government redistributes a lot of wealth 00:49:24.720 --> 00:49:29.430 in favour of the middle class, because it’s the decisive majority. 00:49:29.680 --> 00:49:34.879 But not on any moral basis. The only social justice, if I may, 00:49:35.080 --> 00:49:37.196 is the respect for property rights. 00:49:38.600 --> 00:49:41.194 Libertarians believe public goods don’t exist. 00:49:42.240 --> 00:49:46.597 The notion’s a fallacy to justify State intervention. 00:49:46.840 --> 00:49:51.994 The logic is, there are always external factors, like pollution. 00:49:52.240 --> 00:49:56.153 We cannot produce without making smoke, which falls on our neighbour, 00:49:57.560 --> 00:50:00.074 or residues that will have to … 00:50:00.280 --> 00:50:04.751 go into the river. But the reason this happens is 00:50:05.520 --> 00:50:09.593 there’s no property right over water, for example. 00:50:10.360 --> 00:50:12.032 Rivers are public. 00:50:14.520 --> 00:50:17.990 Hence, during the entire 19th century, 00:50:19.320 --> 00:50:22.118 companies were allowed to pollute rivers, 00:50:22.360 --> 00:50:26.717 and until very recently this was done because the State 00:50:27.080 --> 00:50:31.676 controlled the river. It was a public State-controlled resource 00:50:31.920 --> 00:50:36.357 and the State let private companies pollute the river. 00:50:37.000 --> 00:50:41.994 But if the river had been privatized and each of its owners 00:50:43.240 --> 00:50:47.438 had had to be consulted for permission for the company 00:50:48.280 --> 00:50:51.238 to put effluents into the river, we can be quite sure 00:50:51.440 --> 00:50:54.716 things would’ve been different. Or it might’ve happened, 00:50:54.960 --> 00:50:59.351 if the company had paid the true price for polluting, 00:51:01.160 --> 00:51:04.197 i.e., paid the owners for polluting their resource. 00:51:04.440 --> 00:51:07.910 Resource allocation would’ve been very different. 00:51:08.200 --> 00:51:10.350 There would’ve been emphasis 00:51:11.960 --> 00:51:14.394 on alternative solutions. 00:51:14.640 --> 00:51:18.679 Companies would’ve invested more in technological solutions, 00:51:18.920 --> 00:51:22.799 or arranged to pollute in very targeted places 00:51:23.120 --> 00:51:27.716 owned by someone who would accept pollution in exchange for payment. 00:51:27.920 --> 00:51:31.708 Production priorities would’ve been reorganized differently. 00:51:33.560 --> 00:51:38.350 So, “public goods” exist only because the State 00:51:39.600 --> 00:51:41.830 distorts production 00:51:42.840 --> 00:51:46.230 by nationalizing certain assets, or the environment itself. 00:52:01.520 --> 00:52:05.149 Historically, liberalism represented a progression. 00:52:05.400 --> 00:52:08.551 But classic liberalism as championed by Adam Smith, 00:52:08.760 --> 00:52:13.436 founder of political economics, has very little to do 00:52:13.680 --> 00:52:18.595 with what’s presently circulating as the “liberalism” in neo-liberalism. 00:52:18.840 --> 00:52:21.434 It has almost nothing to do with classic liberalism. 00:52:21.600 --> 00:52:25.673 So, historically liberalism was a progression, in that it was … 00:52:25.960 --> 00:52:29.111 a way of contesting absolute monarchies, 00:52:29.240 --> 00:52:31.959 and giving individuals rights. 00:52:32.120 --> 00:52:36.352 Among these rights, in the liberalism of Locke and Smith, 00:52:36.600 --> 00:52:41.355 were private property rights. That’s a progression. 00:52:41.640 --> 00:52:44.518 But it’s not absurd to think that even anarchism … 00:52:44.760 --> 00:52:50.630 is a child of liberalism. Early liberalism was somewhat radical, 00:52:50.840 --> 00:52:57.029 and today’s “liberal” thinkers would make Adam Smith roll in his grave, 00:52:57.280 --> 00:53:02.229 because he wouldn’t recognize much in what’s now passing for liberalism. 00:53:02.480 --> 00:53:04.675 Take the case of private property. 00:53:04.840 --> 00:53:11.518 lf it stems from interactions driven by transnational corporations, 00:53:11.760 --> 00:53:15.912 at the core and in the framework of classic liberalism, 00:53:16.120 --> 00:53:19.396 this is unthinkable. It’s a fallacy to think 00:53:19.640 --> 00:53:25.351 that private tyrannies like GM or Bombardier can have rights, 00:53:26.040 --> 00:53:29.919 either property rights or rights that transcend human beings. 00:53:30.200 --> 00:53:35.479 On the other hand, the question of property rights is a hard one. 00:53:35.680 --> 00:53:38.513 It’s important to ask. There’s no simple answer. 00:53:38.800 --> 00:53:42.236 Nevertheless, I’m sure that, even in the context of liberalism, 00:53:42.800 --> 00:53:47.590 one cannot place current practices, agents such as transnationals, 00:53:47.840 --> 00:53:52.038 and their accepted rights, within a classically liberal model. 00:53:52.280 --> 00:53:54.316 Property rights must be reconsidered. 00:53:54.520 --> 00:53:59.071 My opinions about it are those of classic anarchism: 00:53:59.280 --> 00:54:03.193 private ownership of means of production seems aberrant. 00:54:03.280 --> 00:54:06.113 But what Proudhon calls “possession” has a place. 00:54:06.320 --> 00:54:07.719 Ownership rights are healthy. 00:54:07.960 --> 00:54:13.956 But the current, ersatz “liberal” or “neo-liberal” doctrine is absurd. 00:54:14.160 --> 00:54:16.754 Let’s suppose that, in our world, 00:54:16.960 --> 00:54:19.633 someone can appropriate, 00:54:20.120 --> 00:54:25.353 by the means one normally acquires property rights over anything … 00:54:25.640 --> 00:54:30.475 Suppose someone like me appropriates by accepted legal means 00:54:31.240 --> 00:54:35.552 elements that are essential to everyone’s life. 00:54:35.760 --> 00:54:38.957 People like you could die or sell out to me. 00:54:39.200 --> 00:54:42.954 Current neo-liberalism would recognize such a society as just. 00:54:43.160 --> 00:54:47.676 It’s clearly aberrant. Such questions can’t be answered as simplistically 00:54:47.880 --> 00:54:52.829 as our world would have it. But it’s a tough question. I choose to think 00:54:53.080 --> 00:54:58.438 production means can’t be private but ownership of things we use is good. 00:58:21.160 --> 00:58:25.676 Free trade is a very beautiful concept, 00:58:27.280 --> 00:58:30.670 and, as it was imagined in the 18th century, 00:58:30.920 --> 00:58:35.596 it certainly had merits, because it’s very logical to say 00:58:36.080 --> 00:58:39.072 you must produce better and more cheaply, 00:58:39.280 --> 00:58:41.748 and trade with others who’ll do the same. 00:58:41.960 --> 00:58:46.158 Instead of making wine in England, buy it from Portugal. 00:58:46.400 --> 00:58:49.915 The Portuguese will buy your woollens. 00:58:50.160 --> 00:58:52.913 That’s Riccardo’s original example. 00:58:54.880 --> 00:58:58.873 But the great 18th-century theoreticians never imagined 00:58:59.320 --> 00:59:03.074 that capital itself would be free to go where it wanted, 00:59:03.640 --> 00:59:09.033 and an American or British company could go invest in China, 00:59:10.320 --> 00:59:13.790 take advantage of repression in China, 00:59:15.800 --> 00:59:20.316 which rejects unions and so has extremely low wages, 00:59:20.520 --> 00:59:24.559 could “externalize” all the environmental costs, 00:59:24.800 --> 00:59:30.318 make society and the whole planet pay because it pollutes but it’s cheaper. 00:59:31.240 --> 00:59:34.471 So, instead of having a “comparative” advantage - 00:59:34.760 --> 00:59:39.197 I make wine cheaper than you, you make woollens cheaper than me - 00:59:39.440 --> 00:59:42.557 it becomes an absolute advantage because … 00:59:43.160 --> 00:59:46.869 my capital is free to roam wherever it finds 00:59:46.960 --> 00:59:50.635 the best conditions for profit. 00:59:51.480 --> 00:59:54.597 This is what warps trade practices, 00:59:54.840 --> 00:59:59.038 and makes the transnationals naturally want 00:59:59.440 --> 01:00:03.513 the greatest possible freedom for themselves. 01:00:03.960 --> 01:00:06.918 But there’s no question of labour circulating, 01:00:07.160 --> 01:00:10.470 except for our “contemporary nomads”- 01:00:10.720 --> 01:00:13.678 highly qualified personnel, 01:00:13.880 --> 01:00:18.476 covered under service agreements, since they have the right 01:00:18.640 --> 01:00:22.076 to circulate freely and set up where they want, 01:00:22.160 --> 01:00:24.879 whereas the common mortal does not. 01:00:25.920 --> 01:00:31.120 December 17, 1992. U.S. president, George H. W. Bush, 01:00:31.120 --> 01:00:35.880 signed the North American Free Trade Agreement (NAFTA) 01:00:35.880 --> 01:00:38.314 with Canada and Mexico. 01:00:44.120 --> 01:00:47.440 Fourteen years later, on October 26, 2006, 01:00:47.440 --> 01:00:52.280 his son, George W. Bush promulgated the Secure Fence Act. 01:00:52.280 --> 01:00:56.280 This law authorizes the construction of a double wall, 01:00:56.280 --> 01:01:01.280 4.5 meters high and 1,200 km long, along the Mexican border. 01:01:01.280 --> 01:01:08.120 It is also outfitted with the latest surveillance technology: 01:01:08.120 --> 01:01:12.716 watchtowers, cameras, ground sensors, drones, etc. 01:01:25.240 --> 01:01:31.315 The theory of comparative advantage posits international specialization. 01:01:32.400 --> 01:01:37.269 It says nations must specialize according to comparative advantages. 01:01:37.680 --> 01:01:39.830 It’s a purely static theory. 01:01:40.080 --> 01:01:43.993 Pawns are shifted around a box without questioning the box’s form, 01:01:44.080 --> 01:01:48.471 or whether the box evolves with the pawn configuration. 01:01:49.040 --> 01:01:53.511 The theory’s purely immediate. So, why doesn’t it work? 01:01:54.000 --> 01:01:58.710 Because international trade isn’t just neutral exchange, 01:01:58.960 --> 01:02:04.876 where the nice Natives trade with the charming conquistadors. 01:02:05.120 --> 01:02:07.395 It doesn’t work like that and it never did. 01:02:07.640 --> 01:02:11.838 The conquistadors kill everyone. Then trade comes in 01:02:12.080 --> 01:02:16.232 as Phase Two of pacification. But in international trade, 01:02:16.440 --> 01:02:20.479 which is the matrix of business … That’s another preconceived notion. 01:02:20.600 --> 01:02:26.675 Trade’s not intra-village, then city, region, nation. Then international. 01:02:27.240 --> 01:02:30.118 It never worked that way. Quite the contrary. 01:02:30.360 --> 01:02:33.796 International business follows the military, 01:02:34.000 --> 01:02:40.314 it follows predation. Then comes an inward pacification process. 01:02:46.120 --> 01:02:48.873 The “invisible hand” theory is quite extraordinary. 01:02:49.120 --> 01:02:52.510 First, it wagers that men are bad. 01:02:53.400 --> 01:02:57.313 It’s quite lucid. It says, we’ll work with that. 01:02:57.560 --> 01:02:59.835 People are self-centred, greedy, 01:02:59.960 --> 01:03:03.714 mean and self-interested. They dislike collectives. 01:03:03.920 --> 01:03:07.390 They’re unsupportive, anti-social, narcissistic. 01:03:07.600 --> 01:03:11.593 Let’s say this kind of flaw turns into … 01:03:13.040 --> 01:03:16.476 an advantage for the collective and society. 01:03:17.080 --> 01:03:21.995 Let them go. Public happiness will arise from their egoistic antagonism. 01:03:22.280 --> 01:03:25.317 That’s the invisible hand. The idea is that 01:03:25.560 --> 01:03:31.510 every time one intervenes, tries to order this ego antagonism, 01:03:33.240 --> 01:03:37.916 the system gets disrupted and worse. One great reactionary thesis 01:03:38.160 --> 01:03:43.109 is the argument of perverse effect. Hirschmann said it. It’s great. 01:03:43.400 --> 01:03:46.278 The reactionary rightists 01:03:46.520 --> 01:03:50.115 have always accused leftists of causing evil by doing good. 01:03:50.360 --> 01:03:54.273 You want to do good, help the poor, you’ll create a lot of poverty. 01:03:54.520 --> 01:03:59.389 The Economist published an amazing picture after the Seattle summit. 01:04:00.600 --> 01:04:05.879 It showed starving Third-World people, African children, labelled, 01:04:06.680 --> 01:04:09.274 Victims of the Seattle failure. 01:04:09.520 --> 01:04:13.991 That is vile! Worse than the Benetton ads. 01:04:14.240 --> 01:04:17.949 The message was, you played around at hindering the WTO. 01:04:18.160 --> 01:04:22.756 To what end? You created poor, unhappy, starving people. 01:04:22.960 --> 01:04:26.919 Whereas this system creates the poor, starving, unhappy. 01:04:28.880 --> 01:04:31.235 The invisible hand says, let it be. 01:04:31.480 --> 01:04:34.278 You can’t fix it. Man is unkind, bad. 01:04:34.520 --> 01:04:37.717 Only wickedness can stop wickedness. 01:04:38.720 --> 01:04:42.713 Put two bad guys together, it balances out. Laissez-faire. 01:04:42.920 --> 01:04:46.390 Economists have been studying the invisible hand since 1776. 01:04:46.520 --> 01:04:50.832 So they’ve been studying this problem for quite a while. 01:04:52.720 --> 01:04:56.508 For it to work, men have to be separate. Autonomous. 01:04:57.520 --> 01:05:02.435 No relationships, no collectives. Only their own rationality, 01:05:02.960 --> 01:05:07.636 separate from others’, individual. Absolute individualism. 01:05:07.840 --> 01:05:11.310 The second condition is perfect information. 01:05:11.520 --> 01:05:15.911 Omniscience about future events for centuries to come … 01:05:17.880 --> 01:05:21.031 Second condition. Now, what’s the third … 01:05:22.920 --> 01:05:26.754 Perfect information … and thirdly, 01:05:27.320 --> 01:05:32.917 no uncertainty, like a storm, chance, Ariane breaking down 01:05:33.120 --> 01:05:36.396 on the 25th flight and not the 3rd. 01:05:37.600 --> 01:05:41.149 The world must be hazard-free, which is corollary to saying 01:05:41.400 --> 01:05:45.075 perfect foresight is necessary. Under these conditions, 01:05:46.920 --> 01:05:52.233 the invisible hand might work, but it’s not even sure, 01:05:52.520 --> 01:05:55.560 for it’s important to know that liberal economists - 01:05:55.560 --> 01:06:00.793 the greatest, most mathematical, most prestigious, Nobel winners - 01:06:01.520 --> 01:06:06.116 have shown for about 25 years, 01:06:06.960 --> 01:06:13.308 that the invisible hand theorem doesn’t work. It’s bullshit. 01:06:13.640 --> 01:06:17.189 They’ve shown it. Many suspected as much. 01:06:17.480 --> 01:06:20.552 Keynes suspected it for a long time because he thought 01:06:20.800 --> 01:06:24.031 the idea of equilibrium was inapplicable to economy, 01:06:24.480 --> 01:06:28.678 It was more disequilibrium - economy was fundamentally chaotic. 01:06:29.240 --> 01:06:34.598 But the pure, hard, mean, liberal, most prestigious economists, 01:06:34.840 --> 01:06:38.879 draped in the prestige of the most hard-nose science, 01:06:39.120 --> 01:06:43.193 starting with Nobel winner, Gérard Debreu, 25 years ago, 01:06:44.600 --> 01:06:49.674 have said it doesn’t work. Markets don’t mean equilibrium or efficiency. 01:06:50.320 --> 01:06:55.872 Markets don’t mean equilibrium, so supply-and-demand means nothing. 01:06:56.040 --> 01:07:00.238 And they’re not efficient, so laissez-faire is the worst solution. 01:07:03.320 --> 01:07:07.836 Thank you, liberal gentlemen. Kind of you to say so. We thought as much. 01:07:08.080 --> 01:07:13.200 So anyone who says “invisible hand”, “supply and demand”, “equilibrium” … 01:07:13.320 --> 01:07:16.517 is either a crook (not uncommon), 01:07:16.760 --> 01:07:20.639 or hides his eyes (also happens), someone who’s wilfully blind, 01:07:21.400 --> 01:07:24.198 or Sartre’s “bastard” - who knows but stays silent, 01:07:24.440 --> 01:07:27.432 or an incompetent. They exist too. 01:09:55.320 --> 01:10:00.633 Adam Smith, David Riccardo, Karl Marx, John Stuart Mill, 01:10:00.880 --> 01:10:02.154 Malthus, more or less - 01:10:03.280 --> 01:10:07.034 all the classic figures in the creation of economics 01:10:07.160 --> 01:10:10.391 incorporated social thought. They were social philosophers 01:10:10.640 --> 01:10:13.108 more than “pure” economists. 01:10:13.360 --> 01:10:17.990 But the neo-classics - Auguste and Léon Walras, father and son, 01:10:18.520 --> 01:10:20.476 mid- to late-19th century, 01:10:20.560 --> 01:10:25.236 inaugurated a kind of economics that calls itself scientific. 01:10:25.840 --> 01:10:30.277 In doing so, it dispenses with all moral or philosophical thought. 01:10:30.840 --> 01:10:34.958 So it evacuates all the concerns the classics had until Karl Marx, 01:10:35.240 --> 01:10:37.993 which were the following: 01:10:38.240 --> 01:10:43.439 Who makes money and why? Has he the right to make so much? 01:10:44.280 --> 01:10:46.316 Is this fair? Unfair? 01:10:46.440 --> 01:10:51.116 Is it good for the community or bad? Economics had an ethical dimension. 01:10:51.480 --> 01:10:54.950 And this was evacuated with neo-classical thought. 01:10:55.280 --> 01:10:59.398 This neo-classicism opened the way for neo-liberal thought. 01:11:00.080 --> 01:11:05.279 Neo-liberalism then added to neo-classicism’s kind of … 01:11:06.360 --> 01:11:10.319 scientific decree (We are a science, so we imitate physics.): 01:11:10.680 --> 01:11:13.592 We notice money goes from here to there. 01:11:13.840 --> 01:11:16.229 We count, observe, classify. 01:11:16.680 --> 01:11:19.069 But we refrain from casting judgment, 01:11:19.320 --> 01:11:23.313 because physics, the mother of all sciences, does not judge.” 01:11:23.560 --> 01:11:27.553 Economics’ strength is that it comes as obvious, neutral truth - 01:11:27.720 --> 01:11:31.030 a neutral discourse that speaks neither good nor evil, 01:11:31.280 --> 01:11:35.319 that is scientific, with all the neutrality of science, 01:11:35.400 --> 01:11:37.470 that comes across as normal. 01:11:38.040 --> 01:11:42.431 Putting pressure on wages to cut inflation is obviously normal. 01:11:42.680 --> 01:11:44.671 Obviously we can’t have inflation. 01:11:44.920 --> 01:11:48.708 No matter if this generated phenomenal inequality, 01:11:49.560 --> 01:11:51.835 led certain peoples into destitution, 01:11:52.080 --> 01:11:54.594 created disparities between north and south, 01:11:54.840 --> 01:11:58.435 created a caste of rich people taking up the foreground, 01:11:58.600 --> 01:12:01.637 eradicating State power, breaking social security. 01:12:01.840 --> 01:12:05.276 Despite all this, there is but one obvious truth: 01:12:05.520 --> 01:12:07.590 You can’t be pro-inflation!? 01:12:08.920 --> 01:12:13.516 But if we look at truth and history, we see that those rare times 01:12:13.760 --> 01:12:16.672 when capital was muzzled, as in the glorious ’30s, 01:12:16.880 --> 01:12:20.839 were inflationary periods when wages could increase, 01:12:21.080 --> 01:12:25.676 because people who borrowed for houses, etc., due to inflation, 01:12:25.960 --> 01:12:29.111 managed to pay off debt quickly. 01:12:29.720 --> 01:12:32.029 Now, it’s an economy of the rich. 01:12:32.240 --> 01:12:36.233 One could ask, “You want the rich to run the world?” 01:12:37.080 --> 01:12:39.719 instead of, “Surely, you’re against inflation?” 01:12:42.080 --> 01:12:47.120 To impose their ideology, neo-liberals have, over the years, 01:12:47.120 --> 01:12:52.160 developed a relentless strategy, thought encirclement. 01:12:52.160 --> 01:12:59.280 This strategy rests in large part on the actions of a global network 01:12:59.280 --> 01:13:02.080 of propaganda, intoxication and indoctrination 01:13:02.080 --> 01:13:07.520 that can make its polymorphous voice heard in all forums. 01:13:07.520 --> 01:13:11.240 Largely conceived in think tanks, 01:13:11.240 --> 01:13:17.480 neo-liberal propaganda subsequently branched out in many ways. 01:13:17.480 --> 01:13:22.759 Education became one of the most important branches. 01:13:23.760 --> 01:13:23.880 propaganda and indoctrination 01:13:23.880 --> 01:13:31.440 propaganda and indoctrination 01:13:31.440 --> 01:13:37.117 education 01:13:39.280 --> 01:13:42.511 The idea of national education arose in the 18th century. 01:13:42.720 --> 01:13:46.713 In the wake of the French Revolution and European nation-states, 01:13:46.800 --> 01:13:48.472 there arose the idea … 01:13:49.120 --> 01:13:54.114 that a public democratic space implied people who were informed, 01:13:54.560 --> 01:13:59.031 and who were skilled at thinking, discussing, 01:13:59.280 --> 01:14:03.478 participating in political discourse. There were 2 institutions for this 01:14:03.720 --> 01:14:09.431 to ensure that people could become “citizens”, as they said at the time: 01:14:09.680 --> 01:14:15.835 Education, one important function of which was to train citizens, 01:14:16.080 --> 01:14:18.548 prepare citizens. And then, the media. 01:14:18.800 --> 01:14:21.712 We’ll discuss that later. As for education, 01:14:21.960 --> 01:14:27.637 one of its mandates - not that it was implemented or realized very well - 01:14:27.840 --> 01:14:30.673 but a mandate of education was to train citizens, 01:14:30.920 --> 01:14:34.435 empower people to take part in political debate 01:14:34.720 --> 01:14:38.952 and reflect on political questions beyond their own interests. 01:14:39.200 --> 01:14:42.431 That was the main thing. Not to think about politics, 01:14:42.600 --> 01:14:46.832 or economic and social debates, from a self-serving standpoint, 01:14:47.080 --> 01:14:50.959 but from the standpoint of the public good and collective interests. 01:14:51.600 --> 01:14:53.397 Education cultivated this. 01:14:53.640 --> 01:14:58.430 But in the so-called “neo-liberal” changes of the past 30 years, 01:14:58.640 --> 01:15:03.953 the dominant institutions realized education was an important issue, 01:15:04.200 --> 01:15:08.352 and important to appropriate. Is what I’m saying right? 01:15:08.560 --> 01:15:13.156 Are they penetrating education? Anyone who looks knows it is. 01:15:13.280 --> 01:15:16.033 From primary school to university, it varies according to country. 01:15:16.240 --> 01:15:19.118 It’s different in the U.S., Canada, Québec, France. 01:15:19.360 --> 01:15:22.750 It depends on the history of how each system developed. 01:15:22.920 --> 01:15:28.790 But we see massive penetration on the part of private industry 01:15:29.040 --> 01:15:31.793 into the education system. Why? 01:15:32.040 --> 01:15:34.235 The answers are quite simple. 01:15:34.400 --> 01:15:37.119 Education’s a very profitable market. 01:15:37.280 --> 01:15:41.956 It’s interesting to appropriate this piece of social and economic activity 01:15:42.240 --> 01:15:46.074 because it’s profitable. And it lets children’s minds be appropriated. 01:15:46.320 --> 01:15:49.392 It’s as blunt as that. Educating is seizing minds. 01:15:52.360 --> 01:15:56.911 Being able to take hold of children’s minds is extremely crucial, serious. 01:15:57.160 --> 01:16:02.553 It requires a strong justification and I’m not sure we can give it one. 01:16:02.800 --> 01:16:07.191 When companies infiltrate education, they’re aiming for children’s minds, 01:16:07.440 --> 01:16:10.398 and to transform the subjects taught. 01:16:10.640 --> 01:16:15.873 That’s when training deviates from citizenship and sense of common good 01:16:16.120 --> 01:16:22.036 towards the interests of the businesses appropriating education. 01:16:22.400 --> 01:16:27.315 Seeing the world through culture, knowledge, outside of oneself, 01:16:27.560 --> 01:16:31.235 is different than from the viewpoint of what a company gives us. 01:16:31.440 --> 01:16:33.556 The latter element’s always there. 01:16:33.800 --> 01:16:36.951 Appropriation of a market, of children’s minds, 01:16:37.200 --> 01:16:41.239 and preparation for labour. From this perspective, 01:16:41.480 --> 01:16:45.314 education will increasingly lose its other functions - 01:16:45.440 --> 01:16:49.592 preparation for civic life, openness to the world, 01:16:49.840 --> 01:16:54.356 the pure pleasure of understanding and knowledge for its own sake - 01:16:54.600 --> 01:16:57.433 to orient towards market enslavement, 01:16:57.640 --> 01:17:02.350 the preparation of subjects taught for economic functions. 01:17:02.600 --> 01:17:04.636 Education will become 01:17:04.840 --> 01:17:08.719 a prelude to mercantile life, and to employment. 01:17:08.960 --> 01:17:10.279 That’s also very troubling. 01:17:10.520 --> 01:17:14.832 We’ve seen transformations like this for about 20 years. 01:17:15.080 --> 01:17:18.436 With some resistance. As this phenomenon arises, 01:17:18.720 --> 01:17:21.075 so does resistance to it, luckily. 01:17:24.840 --> 01:17:28.037 Channel One is an American company, 01:17:28.840 --> 01:17:31.991 now listed on the stock market. It launched a project 01:17:32.200 --> 01:17:35.749 where they go into underfunded schools and say, 01:17:35.920 --> 01:17:39.993 Since you have no supplies, we’ll furnish you with TV’s, VCR’s 01:17:40.240 --> 01:17:44.916 in exchange for which, you’ll screen for 20 minutes a day 01:17:45.160 --> 01:17:50.871 our educational videos.” - current issues shows for children. 01:17:51.120 --> 01:17:54.590 Their interest in this is the captive clientele. 01:17:54.800 --> 01:18:00.477 Throughout the X minutes of proposed programming, there are ads. 01:18:00.720 --> 01:18:03.029 They add a few minutes of publicity 01:18:03.200 --> 01:18:08.752 that allows advertisers to address, in an extremely privileged context, 01:18:08.880 --> 01:18:11.075 this captive clientele. 01:18:11.320 --> 01:18:14.710 This is strong in the U.S. Here, it has been tried. 01:18:14.960 --> 01:18:18.032 The company in Canada was called Athena. 01:18:18.280 --> 01:18:20.874 It made sustained efforts for a few years. 01:18:21.120 --> 01:18:24.476 By and large, the school boards refused. 01:18:24.680 --> 01:18:28.229 Our public-service funding is not in the same state as the U.S.’s, 01:18:28.440 --> 01:18:32.035 but it’s another assault being conducted against education. 01:18:32.240 --> 01:18:35.994 It takes many forms, according to country and region. 01:18:36.720 --> 01:18:41.953 Mobil has shows on energy. Learn environmental protection from them. 01:18:42.240 --> 01:18:48.429 And nutrition from NutraSweet, which has a kid’s show on nutrition. 01:18:48.680 --> 01:18:52.673 You’ll learn the virtues of NAFTA with GM, 01:18:52.880 --> 01:18:55.189 and about protecting forests and the environment 01:18:55.440 --> 01:18:59.319 from the companies responsible for deforestation. 01:19:01.040 --> 01:19:05.520 This model has repercussions from primary school to university, 01:19:05.520 --> 01:19:09.718 which means, ultimately, we could have - I’m half joking - 01:19:09.960 --> 01:19:14.556 university ecology departments where pollution will be justified. 01:19:14.800 --> 01:19:16.518 That’s the troubling thing. 01:19:16.800 --> 01:19:20.918 The loss of meaning in certain intellectual and human activities … 01:19:21.160 --> 01:19:22.639 that this implies. 01:19:23.480 --> 01:19:26.074 The more efficient we think we are economically … 01:19:26.560 --> 01:19:30.997 Financially is more precise, since finance is multiplying money. 01:19:31.200 --> 01:19:35.955 The more efficiently we make money, the less sense it makes. 01:19:36.720 --> 01:19:42.317 Does it makes sense to say that GM, for example, is efficient 01:19:42.560 --> 01:19:48.874 because it made $23- or 24-billion net profit in the last decade, 01:19:50.280 --> 01:19:53.158 when it created 300,000 unemployed! 01:19:53.960 --> 01:19:55.678 Does that make sense? 01:19:55.920 --> 01:19:59.469 We say GM is efficient, but what is this efficiency? 01:19:59.720 --> 01:20:02.393 We say the American economy is more efficient. 01:20:02.640 --> 01:20:08.272 It is, in financial indicators, yield over capital investment, etc. 01:20:08.520 --> 01:20:13.958 But the U.S. has never had so many people living under the poverty line, 01:20:14.200 --> 01:20:15.713 the American poverty line, 01:20:16.000 --> 01:20:19.754 or so many people without access to health care - 01:20:20.000 --> 01:20:25.358 40% of the American population has practically no access to health care. 01:20:25.600 --> 01:20:30.071 The U.S. has never had such a low level of education. 01:20:31.920 --> 01:20:37.438 50% of Americans can’t locate England on a map. 01:20:37.640 --> 01:20:39.710 Today, this is aberrant, 01:20:40.000 --> 01:20:44.073 when there are at least 50 TV channels per household. 01:20:44.320 --> 01:20:47.357 There’s a picture of what I’m calling lack of meaning. 01:20:47.600 --> 01:20:50.433 Materially, economically, financially, we’re more efficient. 01:20:50.680 --> 01:20:54.673 But ecologically, socially, politically, humanly, 01:20:54.920 --> 01:20:59.948 we are steadily losing our values and quality of life. 01:21:00.160 --> 01:21:01.639 Senselessness. 01:21:01.880 --> 01:21:06.431 To discuss this, we must eschew the dominant economic discourse. 01:21:06.640 --> 01:21:10.918 To start to make sense of this, the problem must be reformulated … 01:21:11.880 --> 01:21:15.873 from scratch. To do this, we must go back to Aristotle. 01:21:16.560 --> 01:21:20.269 He said, “Do not confuse the economic - 01:21:20.520 --> 01:21:25.594 oikos nomia, the norms of running home and community, 01:21:25.680 --> 01:21:29.434 with chrematistic, krema atos, the accumulation of money.” 01:21:30.080 --> 01:21:31.991 That brings us to education. 01:21:32.640 --> 01:21:37.156 In education today, to what degree is Aristotle taught? 01:21:37.280 --> 01:21:39.316 Who knows Aristotle? Who reads him? 01:21:39.520 --> 01:21:43.877 I could say the same of Victor Hugo, Jean-Paul Sartre, 01:21:44.880 --> 01:21:46.518 Archimedes, etc. 01:21:47.840 --> 01:21:49.671 So, today, 01:21:50.720 --> 01:21:53.757 we say we’re in a knowledge-based economy, 01:21:54.000 --> 01:21:56.594 but we’ve never educated or taught so little. 01:21:57.320 --> 01:22:00.835 Yet we’ve never put so much emphasis 01:22:01.040 --> 01:22:03.998 on so-called training and educational institutions. 01:22:04.080 --> 01:22:09.074 Now for the paradox and nonsensical. They’re in the fact that 01:22:09.960 --> 01:22:12.633 just about everywhere, particularly in North America, 01:22:12.840 --> 01:22:18.836 schools are being turned into the system’s servant factories. 01:22:19.560 --> 01:22:22.870 In other words, thinking bipeds 01:22:24.200 --> 01:22:30.389 must be concerned only about fuelling this free, self-regulating market 01:22:30.640 --> 01:22:33.757 and the mechanics of production and finance. 01:22:33.840 --> 01:22:35.876 We call this “employability”, 01:22:36.160 --> 01:22:38.720 training the employable, 01:22:39.280 --> 01:22:43.990 reforming education, from grade school to university - 01:22:44.200 --> 01:22:48.159 training people to find their place in the labour market. 01:22:48.400 --> 01:22:49.753 That’s horrible. 01:22:50.320 --> 01:22:52.914 Would a Victor Hugo be employable today? 01:22:53.520 --> 01:22:55.875 Would a Socrates be employable? 01:22:56.520 --> 01:23:00.308 Would a Paul Verlaine or a Rimbaud be employable? 01:23:00.560 --> 01:23:02.790 No! So, there would be none. 01:23:03.240 --> 01:23:06.869 But what would humanity be without Socrates, Aristotle, 01:23:07.120 --> 01:23:10.078 Rimbaud, Verlaine, Hugo? 01:23:10.280 --> 01:23:13.716 What would we be without them? We’d be animals. 01:23:13.960 --> 01:23:17.953 Now, on the pretence that they’re unemployable and unwanted, 01:23:18.240 --> 01:23:23.473 we no longer train poets, literary people, pure mathematicians, 01:23:23.720 --> 01:23:26.439 or theoretical physicists. 01:23:26.960 --> 01:23:30.919 We only train what industry, financial enterprise, wants 01:23:31.200 --> 01:23:34.078 to fuel the money-making machine. 01:23:34.880 --> 01:23:36.438 Who is employable? 01:23:36.640 --> 01:23:40.474 The people I see in universities where I teach, around the world. 01:23:40.720 --> 01:23:45.475 In other words, at the highest level - Master’s, Ph.D. - 01:23:45.840 --> 01:23:48.673 they’re what I call “technocrats”, 01:23:49.960 --> 01:23:54.238 analytical technocrats, trained to analyze problems. 01:23:54.440 --> 01:23:57.750 We tell them they’re smart because they do problem-solving. 01:23:58.000 --> 01:24:02.710 Problem-solving is not intelligence. Problem-formulation is. 01:24:02.960 --> 01:24:06.270 The person who formulates the problem is the smart one. 01:24:06.480 --> 01:24:11.156 He articulates it, puts it in terms of links and combinations 01:24:11.560 --> 01:24:13.278 that call for a question. 01:24:13.680 --> 01:24:17.958 He’s the smart one. The one who relies on a pre-formulated problem 01:24:18.240 --> 01:24:22.233 in order to find the right solution isn’t intelligent. 01:24:22.360 --> 01:24:25.591 Despite what they say. Analytical technocrats 01:24:25.840 --> 01:24:28.991 master techniques of analysis and calculation, 01:24:29.280 --> 01:24:32.795 and confuse thinking with analyzing and calculating. 01:24:33.160 --> 01:24:37.631 They make decisions with no qualms, like laying off 60,000 in a day, 01:24:37.920 --> 01:24:41.708 doubling their salary by a million, and saying “I’m suffering.” 01:24:41.960 --> 01:24:45.430 I make hard decisions. These are non-humans! 01:24:45.800 --> 01:24:49.395 Someone who openly makes decisions without soul-searching 01:24:49.600 --> 01:24:52.672 is saying, “I’m not a human being.” 01:24:53.160 --> 01:24:57.915 By what right do we let him make decisions that affect human beings? 01:24:58.120 --> 01:25:02.750 He says, “No soul-searching, no soul. I’m not human.” 01:25:03.880 --> 01:25:08.954 These are highly trained technocrats. At the intermediate level … 01:25:10.120 --> 01:25:15.672 are the producer technicians. These technicians serve machines, 01:25:15.920 --> 01:25:19.310 from the computer to the digital machine 01:25:19.520 --> 01:25:22.876 that cranks out parts in plastic, steel, aluminum. 01:25:23.280 --> 01:25:25.635 These people are there 01:25:25.880 --> 01:25:30.032 so the automated mechanics of production never break down. 01:25:30.640 --> 01:25:33.438 The only knowledge required of them 01:25:33.640 --> 01:25:38.236 is the logic of the machinery they’re overseeing. That’s all. 01:25:39.520 --> 01:25:45.436 What’s more, they’re merely required to understand the machine’s demands. 01:25:46.640 --> 01:25:51.714 They don’t even dominate the machine, or possess a kind of … 01:25:52.360 --> 01:25:57.593 human superiority, additional soul, knowledge or sense of the machine. 01:25:57.840 --> 01:26:01.719 Instead, the machine says, if you’re smart enough, 01:26:01.960 --> 01:26:07.671 find the bad chip, change the card. And if he can’t, he’s no good. 01:26:08.400 --> 01:26:12.109 And on the lower levels, what do we train? We don’t. 01:26:12.360 --> 01:26:16.911 45% of the labour of multi-nationals, American in particular, 01:26:17.160 --> 01:26:19.230 are completely illiterate. 01:26:19.440 --> 01:26:22.352 The multi-nationals don’t want to change that. 01:26:22.600 --> 01:26:27.355 They don’t want these illiterates to be the least bit trained, 01:26:27.600 --> 01:26:30.637 because otherwise they’ll start asking questions. 01:26:31.120 --> 01:26:36.240 lf they read papers and reports, they’ll start asking questions, 01:26:36.480 --> 01:26:39.074 unionizing, thinking. 01:26:39.280 --> 01:26:40.918 So, no way. 01:26:41.120 --> 01:26:46.274 Today, particularly in North America and even more in the States, 01:26:46.560 --> 01:26:49.472 there are primary and high school graduates … 01:26:51.560 --> 01:26:54.552 in fairly staggering proportions - 01:26:54.800 --> 01:26:57.840 up to 25% here in Québec, 01:26:57.840 --> 01:27:03.472 and if we looked at U.S. figures, they’d be the same, if not more - 01:27:03.600 --> 01:27:08.833 who graduated, yet are illiterate, who basically can’t read or write. 01:27:09.080 --> 01:27:12.436 They graduated by seniority. 01:27:12.680 --> 01:27:16.639 By attendance and age. This suits the system fine. 01:27:17.000 --> 01:27:21.232 Because when your low-level workers 01:27:22.160 --> 01:27:24.037 are lobotomized bipeds, 01:27:24.240 --> 01:27:29.109 who haven’t even been taught to think because this would require reading … 01:27:29.360 --> 01:27:32.750 lf I want to learn to think, I must read Victor Hugo, poems … 01:27:33.000 --> 01:27:35.468 I must read philosophers. 01:27:35.720 --> 01:27:38.553 Writers teach me to think. 01:27:38.800 --> 01:27:43.590 I can’t think without putting words and their permutations into my head. 01:27:44.080 --> 01:27:46.435 lf I don’t have this, I cannot think. 01:27:46.640 --> 01:27:50.553 But I can become an excellent reproducer of the system, 01:27:50.960 --> 01:27:54.555 who doesn’t think and who defends the system. 01:27:55.200 --> 01:27:58.431 There are now workers who say - and this has happened to me 01:27:58.720 --> 01:28:03.840 in serious situations where there are closures, layoffs, etc. 01:28:04.080 --> 01:28:06.958 and I ask the workers, “What do you think?” 01:28:07.440 --> 01:28:10.716 They often tell me, “It’s the law of the market. 01:28:10.840 --> 01:28:15.038 Competition. We must be more competitive than the Japanese…” 01:28:15.280 --> 01:28:19.273 They defend the very system that’s crushing them. 01:28:20.680 --> 01:28:24.912 We began by examining the networks by which ideas circulate. 01:28:25.160 --> 01:28:28.311 Education’s the same. We find … 01:28:28.560 --> 01:28:32.997 ideological justifications, theorists, people who conceived education, 01:28:34.000 --> 01:28:37.072 advocating its transformation in a way I’ll describe. 01:28:37.280 --> 01:28:40.511 There are also powerful transnational institutions 01:28:40.720 --> 01:28:46.556 that entertain the same discourse and compel agents, governments 01:28:46.800 --> 01:28:49.917 and teachers to adopt practices that conform to these ideals. 01:28:50.160 --> 01:28:54.358 Finally, lobby groups, think tanks, try to accomplish the same thing. 01:28:54.600 --> 01:28:57.592 Education is striking. It has all three. 01:28:59.400 --> 01:29:02.676 The most influential education theorist of the last 50 years 01:29:02.920 --> 01:29:06.117 was an economist, not a pedagogue. 01:29:07.280 --> 01:29:11.831 The top educational theorist was probably Gary Becker. 01:29:12.200 --> 01:29:14.430 He teaches at the University of Chicago. 01:29:14.640 --> 01:29:17.950 He developed the theory of human capital. 01:29:18.240 --> 01:29:19.309 The idea is … 01:29:20.040 --> 01:29:23.032 humans and knowledge are capital that requires investment 01:29:23.280 --> 01:29:26.556 and evaluation from the standpoint of profitability. 01:29:26.680 --> 01:29:29.274 This theory of human capital 01:29:29.520 --> 01:29:34.913 allows mathematical economic tools to be applied to education, 01:29:35.160 --> 01:29:39.836 henceforth viewed as a certain order of capital that can be quantified. 01:29:40.160 --> 01:29:44.119 This has been the most influential theory of the last 50 years, 01:29:44.360 --> 01:29:48.797 especially where it counts, in places where decision-makers are influenced. 01:29:49.040 --> 01:29:52.271 Places where States, education ministers 01:29:52.520 --> 01:29:55.557 and education policy-makers are influenced. 01:29:55.800 --> 01:30:00.749 The second theorist who established the mechanisms that are in play now 01:30:01.040 --> 01:30:04.999 is Milton Friedman, the father of monetary economics, 01:30:05.160 --> 01:30:08.948 who proposed a system of education vouchers, 01:30:09.200 --> 01:30:12.670 the idea again being to inject market mechanisms 01:30:12.960 --> 01:30:16.270 into education, and to make schools compete. 01:30:16.480 --> 01:30:22.396 These 2 education theories, never discussed in education faculties, 01:30:22.640 --> 01:30:26.110 are the most influential recent educational thinking. 01:30:26.320 --> 01:30:31.633 These theories circulate to the IMF, the OECD, the World Bank. 01:30:31.880 --> 01:30:36.078 National education systems are analyzed from their point of view. 01:30:36.240 --> 01:30:38.879 Recommendations are made accordingly. 01:30:39.800 --> 01:30:46.360 Think tanks and major media groups often enjoy privileged connections. 01:30:46.360 --> 01:30:52.240 Propaganda naturally circulates from one group to the other. 01:30:52.240 --> 01:30:57.520 Also, it is largely due to this media transmission 01:30:57.520 --> 01:31:03.117 that neo-liberal ideology attains the status of accepted fact. 01:31:04.120 --> 01:31:04.200 propaganda and indoctrination 01:31:04.200 --> 01:31:11.760 propaganda and indoctrination 01:31:11.760 --> 01:31:17.471 the media 01:31:19.960 --> 01:31:25.080 It has traditionally been said that Hitler invented propaganda. 01:31:25.320 --> 01:31:30.110 Journals, etc., describe how Hitler understood its role in World War II. 01:31:30.400 --> 01:31:34.359 It’s true, he understood it’s societal importance. 01:31:34.600 --> 01:31:37.273 But he didn’t invent it. He learned from us, 01:31:37.520 --> 01:31:41.479 the Western democracies, in particular the English, 01:31:41.680 --> 01:31:43.352 and the Americans. 01:31:43.560 --> 01:31:47.155 Overall, since the advent of modern societies, 01:31:47.360 --> 01:31:49.078 two trends prevail. 01:31:49.320 --> 01:31:53.598 The first calls for participative democracy with aware people, 01:31:53.800 --> 01:31:58.191 who can talk, act and influence decisions. 01:31:58.480 --> 01:32:03.110 The other vision of the world says some people must be pushed aside. 01:32:03.280 --> 01:32:06.989 They must not get involved in the issues that concern them. 01:32:07.080 --> 01:32:10.755 This vision of society, the world and the economy 01:32:10.960 --> 01:32:15.033 also exists in our culture. It strongly manifested itself 01:32:15.280 --> 01:32:20.274 during World War I in the U.S., when the government was elected 01:32:20.360 --> 01:32:23.238 on a promise of abstaining from war. 01:32:23.520 --> 01:32:28.036 Shortly thereafter, for reasons pertaining to internal affairs 01:32:28.280 --> 01:32:30.236 and the role of the industrialists, 01:32:30.440 --> 01:32:34.194 the government decided to enter into the conflict. 01:32:34.440 --> 01:32:39.594 The serious problem it then faced was confronting an opposed population. 01:32:39.760 --> 01:32:44.595 They formed a commission named after the journalist who presided over it, 01:32:44.840 --> 01:32:47.308 Mr Creel. It was the Creel Commission. 01:32:47.560 --> 01:32:52.759 This commission largely invented modern propaganda techniques, 01:32:52.960 --> 01:32:56.839 techniques for shaping and preparing public opinion. 01:32:57.640 --> 01:33:01.952 The Creel Commission magnificently fulfilled its mandate, 01:33:02.160 --> 01:33:04.958 reversing public opinion in a few months. 01:33:05.200 --> 01:33:09.398 The commission engaged very famous people, renowned intellectuals 01:33:09.640 --> 01:33:14.316 and Edward Burnays, founder of the modern public-relations industry. 01:33:14.560 --> 01:33:17.199 These people later left the commission 01:33:17.440 --> 01:33:21.592 and established communication tools within our societies 01:33:21.840 --> 01:33:25.719 that are still present and are among the propaganda mechanisms. 01:33:25.960 --> 01:33:28.520 One very important political aim 01:33:28.800 --> 01:33:32.315 is to exclude part of the population, to shape public opinion 01:33:32.520 --> 01:33:35.717 and build consensus within society. 01:33:35.920 --> 01:33:39.708 The institutions they invented - public relations firms - 01:33:40.000 --> 01:33:44.835 plus the modern concept of the role of companies and of P.R. within them, 01:33:45.120 --> 01:33:49.159 social communication, media, the role of the intellectual, 01:33:49.440 --> 01:33:53.638 the role of publicity and information in our society … 01:33:53.840 --> 01:33:57.753 This was all set up, and was the lesson Hitler rightly remembered. 01:33:58.000 --> 01:34:01.549 Whence the mechanisms that led to today’s one-track thinking? 01:34:01.800 --> 01:34:07.193 They’re the descendents of what I’m describing - the Creel Commission 01:34:08.040 --> 01:34:12.033 and, further back in time, of the conception of politics 01:34:12.280 --> 01:34:16.637 that says society must exclude part of its population to function. 01:34:16.920 --> 01:34:18.990 We find this too. 01:34:19.240 --> 01:34:23.552 But if the agents I’m describing are very powerful, strong, numerous, 01:34:23.760 --> 01:34:28.993 a counter-discourse arises, as do sites where other analyses blossom, 01:34:29.200 --> 01:34:34.069 alternative media, intellectuals, social and community groups, 01:34:34.320 --> 01:34:38.233 where new thought percolates. There’s a dual phenomenon. 01:34:38.480 --> 01:34:41.233 Unfortunately, pensée unique predominates. 01:34:41.440 --> 01:34:44.159 Propaganda is working. 01:34:44.360 --> 01:34:47.511 Through such mechanisms and institutions, 01:34:47.760 --> 01:34:51.548 a world vision, a vocabulary, a way of thinking and conceiving the world 01:34:51.760 --> 01:34:54.354 ensure that certain questions may be asked, 01:34:54.560 --> 01:34:56.391 certain answers given, 01:34:56.640 --> 01:34:59.632 certain analyses made, while others are excluded. 01:35:03.040 --> 01:35:06.715 Currently, dominant ideology, which I call ambient ideology, 01:35:06.960 --> 01:35:11.272 has its official face, the pensée unique we spoke of, 01:35:11.480 --> 01:35:14.199 and its unofficial face, which is … 01:35:14.440 --> 01:35:19.912 this ensemble of behaviours prescribed by the media overall. 01:35:20.160 --> 01:35:23.550 This ideology never appears as an ideology. 01:35:23.840 --> 01:35:29.153 It’s presented as entirely natural, something we should obviously do. 01:35:29.520 --> 01:35:34.594 Owning a TV must be obvious. “How can one not own a TV 01:35:35.280 --> 01:35:37.635 in the late 20th century?” 01:35:38.320 --> 01:35:42.757 Accepting the advertising system is obvious. 01:35:42.960 --> 01:35:45.758 Surely, you won’t, 01:35:46.080 --> 01:35:51.393 in early 2K, call the advertising system into question!” 01:35:51.680 --> 01:35:54.752 All that is ideological, all that is choice, 01:35:56.080 --> 01:36:00.153 which the system has organized without consulting us, 01:36:00.320 --> 01:36:06.190 is presented to us as self-evident, given and above discussion. 01:36:06.920 --> 01:36:10.469 Interesting. Indeed, concerning pensée unique, 01:36:12.080 --> 01:36:16.915 which is a uniform, partial and sectarian way 01:36:17.120 --> 01:36:19.998 of interpreting and conducting economy, 01:36:20.720 --> 01:36:24.156 Alain Minc said, “Thought is not unique, reality is.” 01:36:24.240 --> 01:36:27.471 From that point on, forget calling into question 01:36:27.720 --> 01:36:31.349 what the liberal or ultra-liberal economy was doing. 01:36:31.600 --> 01:36:35.388 It was given as reality. Reality had to be followed. 01:36:35.720 --> 01:36:39.076 For example, “Internationalization is a reality.” 01:36:39.320 --> 01:36:43.472 Of course it is, but not necessarily a good one. 01:36:44.160 --> 01:36:48.950 The ideology says it’s a reality, it’s valid, we must go with it. 01:36:49.520 --> 01:36:51.397 Globalization, same thing. 01:36:53.440 --> 01:36:55.874 Privatization, same thing. 01:36:56.160 --> 01:37:01.234 It’s being done, so it must be done. It had to be done, etc. 01:37:01.480 --> 01:37:04.472 They present as faits accomplis, 01:37:05.520 --> 01:37:10.036 things people must be made to accept, instead of asking whether they agree. 01:37:11.120 --> 01:37:15.238 Naturally, this pertains to what I was saying in my book 01:37:15.680 --> 01:37:18.240 on the sophism of the ineluctable: 01:37:18.480 --> 01:37:23.998 most politicians cover up their actions, their choices, 01:37:24.240 --> 01:37:29.473 because these choices and decisions are being billed as inevitable. 01:37:29.760 --> 01:37:31.671 We couldn’t do otherwise. 01:37:31.920 --> 01:37:35.151 It was decreed. The Americans are doing this. 01:37:36.000 --> 01:37:41.791 Everyone knows what happens in France happened 10 years earlier in the U.S. 01:37:42.120 --> 01:37:44.475 It had to be done in France. 01:37:45.160 --> 01:37:48.311 Renault closed a factory in Belgium 01:37:49.760 --> 01:37:53.150 in order to restructure … 01:37:54.640 --> 01:38:00.192 and create factories elsewhere to do the same work, with cheaper labour. 01:38:00.400 --> 01:38:03.676 That was the result of an economic calculation. 01:38:04.680 --> 01:38:10.596 About this closure, the head of the French state declared the following: 01:38:12.120 --> 01:38:14.588 Alas, factory closures are life. 01:38:14.880 --> 01:38:20.557 Trees are born, live and die, as do plants, animals, men and companies.” 01:38:20.800 --> 01:38:24.429 That is a good example of naturalizing 01:38:25.040 --> 01:38:27.713 what’s happening, which is depoliticization. 01:38:28.000 --> 01:38:30.878 People are obliged to accept as natural, 01:38:31.760 --> 01:38:34.832 as independent of the will of politicians, 01:38:35.080 --> 01:38:41.918 certain decisions that are in fact contingent. 01:38:42.160 --> 01:38:44.833 That’s how they manipulate citizens 01:38:45.040 --> 01:38:50.273 and dissuade them from believing in their own vote, ultimately. 01:38:51.720 --> 01:38:54.314 Today, the functioning of the media 01:38:54.600 --> 01:38:56.989 fosters the creation of truth. 01:38:59.960 --> 01:39:02.679 The truth can only appear as the confrontation, 01:39:04.240 --> 01:39:07.550 the verification of a given version 01:39:07.880 --> 01:39:12.670 confirmed by a number of witnesses. We know truth is hard to establish. 01:39:12.920 --> 01:39:16.117 We see it with investigating judges, 01:39:17.320 --> 01:39:20.835 with analytical scientists trying to discover truth. 01:39:21.120 --> 01:39:23.953 But today, the way the media functions, 01:39:24.200 --> 01:39:27.078 it’s enough that, in coverage of an event, 01:39:29.000 --> 01:39:33.312 all the media - press, radio, TV - say the same thing 01:39:33.600 --> 01:39:37.912 for this to be established as truth, even if it’s false. 01:39:38.360 --> 01:39:43.832 We saw it during the Gulf War, and recent mega-events. 01:39:46.600 --> 01:39:50.673 Consequently, in establishing this kind of false equation, 01:39:51.120 --> 01:39:54.715 repetition equals proof. I was recently rereading … 01:39:54.960 --> 01:39:59.158 Brave New World by Aldous Huxley, 01:39:59.880 --> 01:40:03.395 and I found a phrase about hypnopaedia, 01:40:03.640 --> 01:40:08.350 the aural hypnosis they subject infants to when they’re born 01:40:08.720 --> 01:40:12.030 to persuade them to be happy to be what they are, 01:40:12.680 --> 01:40:16.992 and one of the directors of the Conditioning Centre, as it’s called, 01:40:20.360 --> 01:40:24.148 says, “64,000 repetitions make one truth.” 01:40:24.880 --> 01:40:27.519 We’re now in Huxley’s world. 01:40:37.640 --> 01:40:41.520 Sustained by incessant propaganda and proselytizing 01:40:41.520 --> 01:40:45.840 that pass repeatedly through the multiple relays 01:40:45.840 --> 01:40:50.160 of a sprawling network of mind control, 01:40:50.160 --> 01:40:54.200 neo-liberal reforms gradually impose themselves 01:40:54.200 --> 01:40:58.800 in the anaesthetized consciences of Western democracies. 01:40:58.800 --> 01:41:03.880 In these countries, in the name of a necessary “realism”, 01:41:03.880 --> 01:41:08.000 all parties, both right and left, adopt measures 01:41:08.000 --> 01:41:13.520 that sap the social State more every day, to market’s benefit. 01:41:13.520 --> 01:41:19.320 But elsewhere, where propaganda doesn’t enjoy the same success, 01:41:19.320 --> 01:41:24.520 especially in developing countries, other solutions are imperative. 01:41:24.520 --> 01:41:28.360 Drastic solutions. 01:41:28.360 --> 01:41:32.240 For behind the ideological smokescreen, 01:41:32.240 --> 01:41:36.080 behind the beautiful concepts of spontaneous order 01:41:36.080 --> 01:41:39.920 and harmonized interests in a free market, 01:41:39.920 --> 01:41:44.040 beyond the panacea of the invisible hand, 01:41:44.040 --> 01:41:45.960 what’s really hidden? 01:41:45.960 --> 01:41:51.600 What were the true motivations of the bankers and industrialists 01:41:51.600 --> 01:41:56.469 who financed the establishment of the neo-liberal network? 01:41:57.480 --> 01:42:05.200 neo-liberalism or neo-colonialism? 01:42:05.200 --> 01:42:12.834 strong-arm tactics of the financial markets 01:44:23.200 --> 01:44:25.430 Before, 01:44:26.280 --> 01:44:31.354 nearly all of banks’ operations until the ’70s were monitored. 01:44:32.480 --> 01:44:36.678 All these operations passed via the French central bank 01:44:36.960 --> 01:44:38.757 which kept track. 01:44:39.000 --> 01:44:42.754 Now the problem is, banks transact over the counter. 01:44:43.040 --> 01:44:48.194 They’ve taken out just over half of their business figures - 01:44:48.640 --> 01:44:51.837 OTC transactions outside market control. 01:44:52.080 --> 01:44:54.878 It’s as though there were the normal market, 01:44:54.960 --> 01:44:59.192 and a black market. A grocery with posted prices 01:44:59.440 --> 01:45:03.149 and a proper cash register. Then, a mysterious black market. 01:45:04.040 --> 01:45:06.679 In its reports, the Bank of France says, 01:45:06.920 --> 01:45:09.036 when it checks bank reports, 01:45:09.760 --> 01:45:12.911 about half of bank transactions are unreported, 01:45:13.480 --> 01:45:17.040 beyond the control of a superior authority, 01:45:17.040 --> 01:45:19.270 like a public treasury or a central bank. 01:45:20.960 --> 01:45:26.557 These unreported activities mean that governments count for nothing. 01:45:28.640 --> 01:45:30.119 There must be … 01:45:33.000 --> 01:45:34.831 $500 billion minimum 01:45:35.080 --> 01:45:38.914 circulating every day in off-shore funds, etc. 01:45:39.200 --> 01:45:42.033 If a government hassles a bank, 01:45:42.280 --> 01:45:47.274 it doesn’t care. It just stocks up with one of its foreign counterparts, 01:45:47.480 --> 01:45:49.994 another multi-national bank, 01:45:50.200 --> 01:45:54.512 an off-shore fund or elsewhere. No problem. Money’s mobile now. 01:45:54.760 --> 01:45:57.911 Beyond the control of any public authority. 01:45:58.440 --> 01:45:59.714 OTC transactions 01:46:05.200 --> 01:46:08.158 are a very serious problem. 01:46:08.400 --> 01:46:10.914 To control the economy, you must control money. 01:46:13.480 --> 01:46:18.640 Over-the-counter operations are generally effectuated 01:46:18.640 --> 01:46:23.953 with relatively new financial instruments, derivative products: 01:46:30.160 --> 01:46:33.948 It’s basically insurance contracts. In other words, 01:46:35.360 --> 01:46:38.113 you get insured against future fluctuations 01:46:39.200 --> 01:46:42.078 in interest rates and currency. 01:46:42.320 --> 01:46:44.390 You sign a contract 01:46:46.560 --> 01:46:51.509 with someone to pay in 6 months. The contract is in dollars. 01:46:53.960 --> 01:46:57.270 If the dollar rises, you’re in trouble. In 6 months, 01:46:57.520 --> 01:47:02.514 you’ll have to buy dollars at a 10% premium. So you take out insurance 01:47:03.360 --> 01:47:06.193 on the value of the dollar. 01:47:06.440 --> 01:47:11.958 A guy takes on the risk. You pay him 3% or 4% extra at the onset. 01:47:12.200 --> 01:47:16.591 Whatever the dollar’s rise or fall - the guy wins if it falls - 01:47:16.840 --> 01:47:20.913 you don’t move. You have insurance. That’s derivative products. 01:47:21.120 --> 01:47:24.635 The interesting thing is it creates a risk economy. 01:47:25.520 --> 01:47:29.479 Currency’s no longer controlled, capital flux isn’t monitored, etc. 01:47:29.760 --> 01:47:32.479 So, it’s an economy where risk is maintained 01:47:32.720 --> 01:47:35.996 in order to create on top of this system, 01:47:36.240 --> 01:47:39.516 an insurance system where risk is covered. 01:47:40.240 --> 01:47:44.995 But the difference between this and risks like car accidents 01:47:45.400 --> 01:47:50.110 is that accidents are predictable. It’s the law of probability. 01:47:50.600 --> 01:47:54.388 Whereas the risks in the financial markets … 01:47:55.840 --> 01:48:01.119 are rare epiphenomena that can’t be statistically quantified. 01:48:01.400 --> 01:48:04.153 Absolute risks, absolutely unforeseeable. 01:48:04.400 --> 01:48:08.791 So these insurance contracts that crown the normal economy 01:48:08.880 --> 01:48:11.633 create a 2nd layer that’s even riskier. 01:48:11.760 --> 01:48:16.834 So, sometimes people take out insurance on their insurance. 01:48:17.120 --> 01:48:20.112 It’s Escheresque. You create a risk pyramid. 01:48:20.360 --> 01:48:23.238 And people speculate on that. 01:48:23.440 --> 01:48:27.592 You create a purely speculative economy by sustaining risk. 01:48:28.080 --> 01:48:33.393 A trait of contemporary capitalism is this economy where financial risk 01:48:33.640 --> 01:48:38.270 is systematically maintained, and systematically marketed. 01:48:42.800 --> 01:48:49.000 In the 1980s, under the sway of Thatcher and Reagan, 01:48:49.000 --> 01:48:54.960 a number of countries adopted reforms to deregulate financial markets. 01:48:54.960 --> 01:49:01.840 By allowing capital to flow freely, governments considerably increased 01:49:01.840 --> 01:49:06.480 the power of major institutional speculators: 01:49:06.480 --> 01:49:14.640 hedge funds, commercial banks, pension funds, insurance companies … 01:49:14.640 --> 01:49:18.000 Now in a position of strength, 01:49:18.000 --> 01:49:24.240 these entities would act as a new purveyor of neo-liberal ideology, 01:49:24.240 --> 01:49:29.320 going so far as to compel the most recalcitrant States 01:49:29.320 --> 01:49:32.920 to accelerate the liberalization of their economy. 01:49:32.920 --> 01:49:40.400 Among the methods used to do this, speculative attacks proved to be 01:49:40.400 --> 01:49:42.960 particularly effective … and devastating. 01:49:42.960 --> 01:49:48.840 Certainly, the emperor’s new clothes are woven of complex mechanisms 01:49:48.840 --> 01:49:53.040 that readily deflect the most curious minds. 01:49:53.040 --> 01:49:58.760 But if colonialism has changed its look, its goal remains the same: 01:49:58.760 --> 01:50:00.671 the concentration of capital. 01:50:05.520 --> 01:50:07.192 Speculation … 01:50:07.840 --> 01:50:09.671 has several instruments. 01:50:12.640 --> 01:50:14.756 Without going into technical details, 01:50:15.760 --> 01:50:21.710 I’d like to show what happened in the Asian Financial Crisis of ’97, 01:50:24.320 --> 01:50:28.029 which led to a currency collapse in several countries, 01:50:29.120 --> 01:50:33.875 countries that had been categorized as “Asian tigers”, 01:50:35.720 --> 01:50:38.393 with a successful economy, etc. 01:50:40.240 --> 01:50:42.879 There were various factors in this crisis, 01:50:43.120 --> 01:50:47.159 but I think one of the fundamental elements 01:50:47.920 --> 01:50:51.230 was the prior deregulation of the exchange market. 01:50:52.000 --> 01:50:56.994 In certain cases, this deregulation was imposed, 01:50:57.280 --> 01:51:02.673 if not indeed recommended by the International Monetary Fund. 01:51:03.680 --> 01:51:05.591 Now, speculators 01:51:07.640 --> 01:51:11.519 got their hands on the reserves of the central banks 01:51:12.160 --> 01:51:15.232 through the following mechanism: 01:51:16.480 --> 01:51:21.270 they speculated against national currencies 01:51:22.280 --> 01:51:25.158 by selling short. 01:51:25.960 --> 01:51:31.400 Short selling is speculating on a transferable security’s decrease 01:51:31.400 --> 01:51:37.440 rather than on its increase, as is traditionally the case. 01:51:37.440 --> 01:51:42.720 If a security is the object of massive short selling, 01:51:42.720 --> 01:51:49.480 it leads to a collapse in demand and thus of the security’s price. 01:51:49.480 --> 01:51:52.400 This constitutes speculative attack 01:51:52.400 --> 01:51:58.800 for, in wagering massively on a decrease in value, 01:51:58.800 --> 01:52:03.828 the speculators themselves bring about the decrease. 01:52:04.880 --> 01:52:09.237 Say I want to short sell the Korean won. 01:52:10.080 --> 01:52:13.550 I start selling huge quantities of Korean won, 01:52:14.400 --> 01:52:19.758 deliverable at some future date. The contracts are 3 or 6 months. 01:52:21.040 --> 01:52:24.828 When the contract comes to term, I must deliver huge quantities 01:52:25.120 --> 01:52:27.554 of Korean won or Thai baht. 01:52:28.840 --> 01:52:32.719 But I don’t have them. I can sell as much as I want, 01:52:33.320 --> 01:52:38.394 I can sell billions of dollars’ worth of Korean won. 01:52:39.680 --> 01:52:42.240 Who buys up the Korean won? 01:52:42.440 --> 01:52:45.398 The central bank of Korea, 01:52:45.640 --> 01:52:51.590 which is obliged through accords with the International Monetary Fund 01:52:51.840 --> 01:52:53.910 to stabilize its currency. 01:52:56.160 --> 01:52:58.355 Technically, what happened was, 01:53:00.320 --> 01:53:03.471 when the Korean currency fell, 01:53:04.480 --> 01:53:05.913 a few months later, 01:53:06.160 --> 01:53:09.470 the short-selling contracts came to term 01:53:10.480 --> 01:53:12.436 and that’s when … 01:53:13.080 --> 01:53:17.835 there was an appropriation of the central bank reserves, 01:53:17.960 --> 01:53:20.269 because the won was worthless 01:53:20.520 --> 01:53:25.753 and speculators had only to buy Korean won on the spot market, 01:53:26.120 --> 01:53:31.558 and then fulfill the terms of their contracts. 01:53:31.800 --> 01:53:36.396 So the central bank’s buying back its own money - not too profitable. 01:53:36.600 --> 01:53:39.068 And in exchange, its reserves are confiscated 01:53:39.320 --> 01:53:45.236 and go into the pockets of the major Western banks. 01:53:45.480 --> 01:53:47.630 That’s the mechanism. 01:53:47.760 --> 01:53:51.389 Now the reserves have been sacked, 01:53:52.640 --> 01:53:58.431 and this means Korea must now go to the IMF and say, 01:53:59.360 --> 01:54:02.511 Our reserves have been sacked. We can’t function without them. 01:54:02.760 --> 01:54:07.515 We must reimburse…” (The money hasn’t even gone to creditors yet.) 01:54:07.760 --> 01:54:10.991 We must reimburse our creditors (the speculators). 01:54:11.240 --> 01:54:12.434 What’s going on? 01:54:12.680 --> 01:54:19.153 When the IMF grants a loan in the order of $56 billion, 01:54:19.400 --> 01:54:22.676 there’s participation by a number of countries. 01:54:23.240 --> 01:54:25.231 There were 24 countries, 01:54:27.520 --> 01:54:32.514 because astronomical sums are needed. The American and Canadian treasuries, 01:54:32.960 --> 01:54:35.520 the main Western governments. 01:54:36.560 --> 01:54:40.189 For the American or Canadian treasury 01:54:40.400 --> 01:54:44.678 or another Western country to help give 01:54:44.920 --> 01:54:46.911 a $56-billion loan, 01:54:47.800 --> 01:54:49.950 they have to raise their own debt level, 01:54:50.120 --> 01:54:52.793 which means they must start selling 01:54:54.080 --> 01:54:57.755 and negotiating their debt on the stock markets. 01:54:58.200 --> 01:55:02.637 So, it’s the debt market. And who controls the debt market 01:55:03.560 --> 01:55:08.315 for sovereign Western debt? The same speculating banks. 01:55:08.560 --> 01:55:10.516 There’s a vicious circle here. 01:55:11.880 --> 01:55:15.031 Attack Korea, come to its rescue, 01:55:15.200 --> 01:55:19.239 confiscate its reserves, lend it money … 01:55:20.480 --> 01:55:24.314 from the public funds of various Western governments, 01:55:25.640 --> 01:55:29.428 and increasing the debt of these Western countries 01:55:29.520 --> 01:55:34.514 requires backing from these private-sector banks, 01:55:36.880 --> 01:55:41.396 the underwriters of national debts. 01:55:41.640 --> 01:55:44.473 In the end, everyone goes into debt 01:55:45.440 --> 01:55:47.635 except the speculators, 01:55:47.760 --> 01:55:52.959 who are creditors of both Korea and the Western governments 01:55:53.200 --> 01:55:56.192 who came to Korea’s rescue 01:55:56.480 --> 01:55:59.313 through the intermediary of the IMF program. 01:55:59.560 --> 01:56:01.278 So, what happens? 01:56:03.720 --> 01:56:05.358 The Korean economy 01:56:06.480 --> 01:56:08.118 is doomed to bankruptcy. 01:56:08.320 --> 01:56:13.553 Its bank shares and high-tech industry are sold at a discount. 01:56:16.000 --> 01:56:18.753 What’s in the process of happening 01:56:18.960 --> 01:56:23.988 is the transfer of all this country’s industrial wealth 01:56:24.320 --> 01:56:28.438 to American foreign investors, 01:56:28.680 --> 01:56:30.716 to the point where … 01:56:31.720 --> 01:56:37.397 its shares are practically taken over for an absolute pittance. 01:56:38.120 --> 01:56:40.111 I’ll give you an example 01:56:41.280 --> 01:56:44.716 of one of the primary Korean banks 01:56:44.920 --> 01:56:48.515 that was restructured on the recommendation of the IMF, 01:56:48.720 --> 01:56:52.269 following this operation, because it had conditions. 01:56:53.160 --> 01:56:58.234 This bank, Korea First Bank, was sold for $450 million. 01:56:58.720 --> 01:57:03.714 It was sold to Californian and Texan investors for $450 million. 01:57:04.240 --> 01:57:08.279 But a condition of sale was 01:57:09.120 --> 01:57:14.831 that the Korean government finance the bad debts of this bank 01:57:15.080 --> 01:57:16.638 with grants, 01:57:17.360 --> 01:57:21.876 subsidies that were 35 times the purchase price. 01:57:22.640 --> 01:57:25.279 Something in the order of over $15 billion. 01:57:25.520 --> 01:57:27.954 These American investors arrive in Korea, 01:57:28.240 --> 01:57:33.473 and overnight they gain control over the whole local financial apparatus, 01:57:33.760 --> 01:57:34.875 the commercial banks, 01:57:35.120 --> 01:57:39.079 and they hold the debt of major Korean companies 01:57:39.280 --> 01:57:41.635 like Hyundai, Daewoo, etc. 01:57:41.920 --> 01:57:47.199 And they’re in a position to dictate the break-up of these companies! 01:57:47.440 --> 01:57:51.149 Part of Daewoo has now been sold to GM. 01:57:51.360 --> 01:57:55.035 Other Korean companies will be sold. 01:57:55.760 --> 01:57:59.469 So, through a mechanism that was initially based on 01:57:59.720 --> 01:58:01.631 manipulating financial markets, 01:58:04.440 --> 01:58:07.876 they take possession of an entire economy. 01:58:08.480 --> 01:58:12.598 Korean companies see credit dried up by bank crisis. 01:58:12.720 --> 01:58:15.473 A million people affected by unemployment 01:58:15.600 --> 01:58:16.953 The IMF’s ‘beggars’” 01:58:17.200 --> 01:58:20.317 The most serious social crisis South Korea has faced 01:58:20.480 --> 01:58:21.959 since the war began. 01:58:22.240 --> 01:58:25.437 Early March, the number of unemployed surpasses a million” 01:58:26.320 --> 01:58:31.560 The economic liberalization campaign led by the financial markets 01:58:31.560 --> 01:58:34.960 wouldn’t have enjoyed the same success 01:58:34.960 --> 01:58:40.360 without the precious collaboration of the Bretton Woods institutions, 01:58:40.360 --> 01:58:45.560 which constitute another major vehicle of neo-liberal ideology: 01:58:45.560 --> 01:58:49.400 the International Monetary Fund (IMF), 01:58:49.400 --> 01:58:53.200 the World Bank 01:58:53.200 --> 01:58:58.000 and the World Trade Organization (WTO, formerly GATT). 01:58:58.000 --> 01:59:02.600 The IMF and World Bank were established in 1944 01:59:02.600 --> 01:59:07.920 to ensure the stability of exchange rates and support the reconstruction 01:59:07.920 --> 01:59:11.440 of countries devastated by World War II. 01:59:11.440 --> 01:59:17.200 Over time, however, the U.S. and Europe have considerably altered 01:59:17.200 --> 01:59:22.480 the mandate of the twin institutions, based in Washington. 01:59:22.480 --> 01:59:27.280 Indeed, shortly after the U.S.’s unilateral decision in 1971 01:59:27.280 --> 01:59:32.080 to put an end to the International Monetary System, 01:59:32.080 --> 01:59:39.080 the IMF and World Bank were invested with an entirely new mandate: 01:59:39.080 --> 01:59:43.120 to impose economic liberalization upon developing countries, 01:59:43.120 --> 01:59:47.520 by fixing as a “conditionality” to granting any loan 01:59:47.520 --> 01:59:51.760 the adoption of a series of neo-liberal measures. 01:59:51.760 --> 01:59:59.280 Some have described this set of economic reforms as “shock therapy”, 01:59:59.280 --> 02:00:04.513 while others ironically call it “the Washington Consensus”. 02:00:05.520 --> 02:00:05.640 neo-liberalism or neo-colonialism? 02:00:05.640 --> 02:00:13.200 neo-liberalism or neo-colonialism? 02:00:13.200 --> 02:00:22.800 strong-arm tactics of the Bretton Woods institutions 02:00:22.800 --> 02:00:24.720 or 02:00:24.720 --> 02:00:30.477 the Washington Consensus 02:00:33.000 --> 02:00:36.754 Washington, where the World Bank and IMF are headquartered, 02:00:37.000 --> 02:00:40.197 started dictating to the rest of the world, 02:00:40.480 --> 02:00:43.517 especially the poorest, almost-bankrupt countries, 02:00:43.720 --> 02:00:46.314 how to apply sound economic science. 02:00:46.520 --> 02:00:49.557 It was called “structural adjustment measures”. 02:00:49.960 --> 02:00:53.236 or “the structural adjustment plan”, dictated by the IMF, 02:00:53.480 --> 02:00:58.759 and bolstered with World Bank loans to the countries concerned. 02:00:59.240 --> 02:01:01.310 Equatorial Guinea, 2006 02:01:01.520 --> 02:01:05.479 Many dozens of countries were thrown into chaos 02:01:06.600 --> 02:01:10.752 precisely because of the measures of the IMF and the World Bank, 02:01:11.400 --> 02:01:14.551 of which there are many. It would take too long to outline 02:01:14.800 --> 02:01:20.158 fundamental adjustment measures vs. short-term cyclical adjustments 02:01:20.400 --> 02:01:21.435 but overall, 02:01:22.400 --> 02:01:26.712 let’s say the 3 or 4 most important measures can be summed up. 02:01:27.360 --> 02:01:31.353 first measure: reduce State expenditures 02:01:32.080 --> 02:01:36.358 The first measure imposed on countries approaching default, 02:01:36.640 --> 02:01:38.392 i.e., poverty-stricken, 02:01:41.680 --> 02:01:44.797 was governmental non-deficit or deficit reduction: 02:01:45.000 --> 02:01:47.639 the reduction of State expenditures. 02:01:48.520 --> 02:01:51.239 Shrink the government, shrink its expenditures. 02:01:51.840 --> 02:01:55.628 second measure: privatization 02:01:57.000 --> 02:01:59.639 In privatization, who will buy? 02:02:00.840 --> 02:02:03.115 There are no local operators. 02:02:03.280 --> 02:02:06.078 If there were enough local money to buy 02:02:06.320 --> 02:02:11.997 entire oil, phosphate or steel companies, 02:02:12.800 --> 02:02:15.030 the country wouldn’t be so poor. 02:02:16.960 --> 02:02:22.193 The extraversion of these Third-World impoverished economies gets so bad, 02:02:22.560 --> 02:02:28.032 they sell off their last national economic interests 02:02:28.320 --> 02:02:30.356 to foreign interests. 02:02:31.280 --> 02:02:36.798 So, multi-nationals start buying and relocating to these countries, 02:02:37.000 --> 02:02:40.276 due to low wages and dollarization. 02:02:40.520 --> 02:02:46.675 It gets cheaper for multi-nationals to produce there than at home. 02:02:47.360 --> 02:02:51.239 But these multi-nationals can also acquire, dirt cheap, 02:02:51.520 --> 02:02:54.193 installations and production capacities, 02:02:54.440 --> 02:02:57.750 like sugar production and refining, 02:02:57.920 --> 02:03:01.230 oil or gas production and pre-refining, 02:03:01.440 --> 02:03:05.115 gas liquefaction or mineral transport, etc. 02:03:05.360 --> 02:03:10.229 at low prices, which cost these national economies years and years. 02:03:10.760 --> 02:03:14.548 third measure: currency devaluation 02:03:15.480 --> 02:03:18.358 Devaluing local currency means, all of a sudden, 02:03:18.760 --> 02:03:20.478 for already-poor countries, 02:03:21.040 --> 02:03:25.113 anything imported becomes proportionally more expensive 02:03:25.920 --> 02:03:28.480 than the level of devaluation. 02:03:28.600 --> 02:03:32.275 When the CFA franc was suddenly devalued by half 02:03:32.400 --> 02:03:34.231 in the early ’90s, 02:03:34.400 --> 02:03:39.838 well, suddenly about a third of Africa or more 02:03:40.400 --> 02:03:42.834 that was using the CFA franc, 02:03:42.960 --> 02:03:47.476 found itself with half its purchasing power overnight. 02:03:48.240 --> 02:03:52.631 So, your wage, that lets you live at a certain level, 02:03:52.840 --> 02:03:55.229 only gives you half of that. 02:03:57.320 --> 02:04:01.233 That’s an immediate 100% inflation. 02:04:01.800 --> 02:04:06.430 Add to that manufactured or semi-manufactured products, 02:04:07.200 --> 02:04:10.829 refined products and everything you’d expect Africa, 02:04:11.080 --> 02:04:13.913 West and Central French Africa, to import. 02:04:14.160 --> 02:04:19.075 Suddenly with the franc cut in half, these things are twice as expensive. 02:04:19.440 --> 02:04:23.592 Combine that with the effects of local devaluation, 02:04:23.800 --> 02:04:28.749 and products and services suddenly cost you 4, 5, 6 times more, 02:04:29.000 --> 02:04:30.752 from one day to the next! 02:04:31.360 --> 02:04:35.239 Add time, and see what happens. Local products 02:04:35.520 --> 02:04:39.069 made from imported semi-raw materials, 02:04:39.560 --> 02:04:44.634 or that need imported binders, glues, solvents, paint, etc., 02:04:44.880 --> 02:04:47.394 over a longer wavelength, 02:04:48.080 --> 02:04:52.870 1 , 2, 3, 6 months later, they become 2, 3, 4 times more expensive. 02:04:53.520 --> 02:04:59.675 fourth measure: reorient the national economy around export 02:05:00.240 --> 02:05:04.472 If we measure the effects of making the poorest countries, 02:05:04.560 --> 02:05:07.518 where the IMF and World Bank intervene, 02:05:08.360 --> 02:05:11.033 boost the production of exportable products, 02:05:13.040 --> 02:05:16.316 we make them compete with the same products. 02:05:16.560 --> 02:05:21.554 Coffee-producing countries all start producing more coffee. 02:05:21.800 --> 02:05:24.598 Cocoa, petroleum, same thing. 02:05:25.560 --> 02:05:26.754 Bauxite … 02:05:29.360 --> 02:05:32.796 Whatever it is … Sugar, wheat … 02:05:33.680 --> 02:05:36.035 All the base products 02:05:37.280 --> 02:05:41.910 suffer falling prices due to over-production. 02:05:42.120 --> 02:05:46.511 Not only do their prices fall, and countries made to compete, 02:05:46.760 --> 02:05:51.311 but added to this is the inflation effect from currency devaluation 02:05:51.560 --> 02:05:56.190 and the automatic increase in anything the country imports. 02:05:56.680 --> 02:06:00.958 We witness a kind of reversal of the countries’ interests - 02:06:01.160 --> 02:06:05.278 even as we pretend to defend them - caused by this initial phenomenon. 02:06:06.880 --> 02:06:09.792 All their imports are increasingly expensive, 02:06:10.080 --> 02:06:13.117 while all their exports bring in less. 02:06:13.600 --> 02:06:19.357 They enter a spiral of indebtedness that means that now, in 2002, 02:06:20.000 --> 02:06:24.198 servicing the debt of most of the poorest countries - 02:06:24.960 --> 02:06:31.308 I’m talking about countries like Bangladesh, Ruanda, Burundi, Togo - 02:06:31.560 --> 02:06:35.473 countries like that, that are already minus 250th … 02:06:36.400 --> 02:06:41.918 Their debt servicing alone can be up to 600 x their export revenues. 02:06:42.440 --> 02:06:46.228 fifth measure: “getting the prices right” 02:06:46.920 --> 02:06:49.878 Getting the prices right goes like this: 02:06:50.120 --> 02:06:54.875 no subsidies for basic necessities, so no more subsidized housing, 02:06:55.080 --> 02:06:59.153 no more subsidies for health, oil, rice … 02:07:01.440 --> 02:07:03.908 transportation … No more subsidies, 02:07:04.520 --> 02:07:06.875 in the name of the right price. What does this mean? 02:07:07.120 --> 02:07:11.716 In terms of dollars, all prices become equivalent world wide. 02:07:12.960 --> 02:07:17.750 If you travel with dollars, as I, a Canadian citizen, do, 02:07:18.440 --> 02:07:22.513 wherever you go, products and services cost the same. 02:07:22.720 --> 02:07:26.429 Whether in Cotonou, Benin, one of the poorest countries, 02:07:26.720 --> 02:07:29.439 or Chicago, New York, Paris, 02:07:29.640 --> 02:07:34.873 your Holiday Inn or Sheraton room, your Holiday Inn meal 02:07:34.960 --> 02:07:39.476 cost about the same in dollars throughout the world. Fine. 02:07:40.040 --> 02:07:45.398 But in Cotonou, capital of Benin, one of the world’s poorest countries, 02:07:45.640 --> 02:07:50.191 one night at the Sheraton, where I sleep when I go there, 02:07:50.440 --> 02:07:55.195 equals six months’ salary of a Benin public servant. 02:07:56.040 --> 02:07:59.510 One meal in the restaurant of this Cotonou hotel 02:07:59.760 --> 02:08:04.959 is a week’s work for a minor Benin official. 02:08:05.520 --> 02:08:11.550 sixth measure: liberalization of investment and reverse wage parity 02:08:12.520 --> 02:08:16.593 Next comes reverse wage parity. This consists in … 02:08:16.840 --> 02:08:20.435 a succinct formula that slides all wages 02:08:21.320 --> 02:08:23.788 down to the lowest, by sector, 02:08:28.040 --> 02:08:33.717 and does so in concert with the “movement” to liberalize trade. 02:08:34.560 --> 02:08:35.629 I’ll explain. 02:08:35.840 --> 02:08:41.392 NAFTA is announced: the Mexico, U.S., Canada free trade zone. 02:08:42.400 --> 02:08:48.270 Wages naturally slide from the American level to the Mexican level. 02:08:49.120 --> 02:08:53.955 That’s what happens when Mexican, Canadian and American labour compete. 02:08:54.240 --> 02:08:59.519 Relocation to Mexico means NAFTA has created employment in Mexico. 02:09:00.520 --> 02:09:06.072 But in net terms, 6 or 7 years after NAFTA, 02:09:08.480 --> 02:09:13.190 wages in the whole region of Leone, northern Mexico, 02:09:13.440 --> 02:09:16.876 where the American multi-nationals moved in - 02:09:17.480 --> 02:09:20.278 while they shut down proportionately in the U.S. … 02:09:20.520 --> 02:09:23.990 There has been an elimination of jobs 02:09:24.240 --> 02:09:27.471 that were high-paying, compared to Mexico, 02:09:28.120 --> 02:09:32.113 to “create” jobs in Mexico 02:09:32.360 --> 02:09:37.070 that are infinitely lower-paid. So, for the past 5 years, 02:09:37.560 --> 02:09:42.509 the average wage in the most active, richest region of Mexico, 02:09:42.760 --> 02:09:45.558 where the American multi-nationals relocated … 02:09:46.440 --> 02:09:51.673 Wages dropped in net terms of purchasing power by 23%. 02:09:52.560 --> 02:09:58.510 Five years ago, a General Motors worker in northern Mexico 02:09:58.760 --> 02:10:04.915 could survive and maintain a family of 1 or 2 kids. 02:10:05.040 --> 02:10:10.194 Today, the same worker can support only his own needs. 02:10:10.400 --> 02:10:11.469 Survive alone. 02:10:12.680 --> 02:10:16.912 On the eve of the summit to be held in northern Mexico, 02:10:17.920 --> 02:10:23.199 they’re building in Monterey a wall to hide the slums. 02:10:23.760 --> 02:10:27.150 Three meters high and kilometers long, 02:10:27.400 --> 02:10:30.949 so summit participants won’t see the poverty there. 02:10:31.400 --> 02:10:36.633 That’s reverse parity: sliding wages from highest to lowest by sector. 02:10:36.800 --> 02:10:42.079 And now that the most modern sectors - like information technology, 02:10:43.000 --> 02:10:48.438 electronics, etc. - are increasingly saleable in the Third World, 02:10:48.960 --> 02:10:52.748 you have entire companies - such as Swissair I think, 02:10:53.320 --> 02:10:56.437 and other companies, the steel industry, whatever - 02:10:56.680 --> 02:11:00.798 that do all their accounting, financial and IT work in Bombay. 02:11:02.680 --> 02:11:08.312 A Bombay accountant who does the same work as a Swiss or Canadian one 02:11:08.480 --> 02:11:10.914 costs 100 times less. 02:11:11.120 --> 02:11:15.398 A programmer who writes an aviation program is 200 times cheaper. 02:11:16.360 --> 02:11:19.318 And so on. That’s reverse wage parity. 02:11:19.760 --> 02:11:23.958 What bothers me is that when we combine these measures - 02:11:24.200 --> 02:11:27.317 devaluation, export, debt servicing, 02:11:27.960 --> 02:11:30.554 privatization, shrinking public budgets, 02:11:30.800 --> 02:11:33.872 forced public lay-offs making more unemployed … 02:11:34.120 --> 02:11:36.759 Combine all these with the prices and wages, 02:11:37.000 --> 02:11:40.037 and we come to the situation we’re in today: 02:11:40.320 --> 02:11:45.678 rich countries are infinitely richer and poor countries infinitely poorer. 02:11:46.640 --> 02:11:50.997 And I’m alarmed to see the World Bank and the IMF 02:11:51.240 --> 02:11:56.951 trying to repeat in Argentina exactly what massacred the Argentine economy. 02:11:57.800 --> 02:12:02.590 It’s like we never learn. Why not? There’s a reason. 02:12:03.200 --> 02:12:08.274 It’s in their interest that this ideology that explains the world, 02:12:08.520 --> 02:12:11.990 continue to survive, as long as the planet, 02:12:12.320 --> 02:12:14.880 in its entirety, is exploitable this way. 02:12:17.920 --> 02:12:22.710 At the International Monetary Fund, the right to vote is exercised 02:12:22.960 --> 02:12:25.394 within the board of directors. 02:12:25.520 --> 02:12:29.593 Now, it’s a right based on … 02:12:29.920 --> 02:12:32.115 financial participation, 02:12:32.360 --> 02:12:35.397 or the financial contribution of each State. 02:12:35.920 --> 02:12:38.832 In fact, it’s the IMF shareholders. 02:12:39.080 --> 02:12:42.197 Same for the World Bank. It’s not like the U.N. 02:12:42.440 --> 02:12:46.911 The main shareholders of the IMF are, of course, 02:12:47.200 --> 02:12:51.478 the U.S., Germany, Japan, Great Britain, France, etc. 02:12:51.680 --> 02:12:55.309 But ultimately, that’s just one aspect, because … 02:12:55.560 --> 02:13:01.430 under the political representation in an intergovernmental organization, 02:13:01.760 --> 02:13:05.275 there are other issues. It’s the backroom. 02:13:06.400 --> 02:13:10.996 It’s influence-peddling between Wall Street, on one hand, 02:13:11.240 --> 02:13:16.030 and Washington. It’s the connections between the IMF and the think tanks: 02:13:16.320 --> 02:13:19.232 the Heritage Foundation, the Brookings Institute. 02:13:19.440 --> 02:13:23.672 The American treasury’s involved. The U.S. Federal Reserve. 02:13:25.880 --> 02:13:30.431 This all forms what’s been called “the Washington Consensus”. 02:13:30.560 --> 02:13:32.278 It’s a power game. 02:13:33.480 --> 02:13:35.880 In 2005, Paul Wolfowitz, 02:13:35.880 --> 02:13:40.880 one of the most radical ideologues of imperialist politics 02:13:40.880 --> 02:13:44.040 and President Bush’s warmonger, passed directly 02:13:44.040 --> 02:13:50.720 from the U.S. Defense Department to being head of the World Bank. 02:13:50.720 --> 02:13:53.480 This appointment put an end 02:13:53.480 --> 02:13:58.240 to any ambiguity about the World Bank’s real goals 02:13:58.240 --> 02:14:03.189 and revealed the true face of the Bretton Woods institutions. 02:14:11.840 --> 02:14:14.593 Bretton Woods conference, Mount Washington Hotel, 1944 02:14:14.800 --> 02:14:18.429 After the war, naturally there was the creation 02:14:19.440 --> 02:14:22.671 of the IMF and the World Bank. 02:14:23.760 --> 02:14:28.197 In the mind of John Maynard Keynes, the architect of these institutions, 02:14:28.760 --> 02:14:32.196 a third thing was needed. 02:14:32.480 --> 02:14:37.395 A third organization, the International Trade Organization. 02:14:37.640 --> 02:14:40.279 This didn’t work. The Americans didn’t want it. 02:14:41.600 --> 02:14:44.194 So, as a fallback position, 02:14:44.600 --> 02:14:46.079 GATT was created. 02:14:49.600 --> 02:14:53.957 It was created in ’47 and was supposed to take care of 02:14:54.080 --> 02:14:59.313 lowering customs duties on industrial products. 02:15:00.000 --> 02:15:02.309 GATT worked fairly well 02:15:02.520 --> 02:15:06.354 because during its 50 years of existence, 02:15:08.520 --> 02:15:12.149 there were major reductions in duties, 02:15:12.360 --> 02:15:17.593 which went from an average of 40% to 50% 02:15:18.160 --> 02:15:20.037 down to 4% or 5%. 02:15:20.280 --> 02:15:24.796 But that covered only industrial goods. Products. 02:15:26.240 --> 02:15:28.595 So, the need was felt, 02:15:28.800 --> 02:15:34.352 primarily by transnational financial companies 02:15:35.160 --> 02:15:37.594 to create an organization 02:15:38.600 --> 02:15:42.354 that would cover many more domains 02:15:43.040 --> 02:15:46.430 than just industrial products. That’s why, 02:15:48.000 --> 02:15:52.994 at the end of the Uruguay Round, the final GATT negotiation cycle, 02:15:53.960 --> 02:15:58.829 the decision was made to create the World Trade Organization, 02:15:59.760 --> 02:16:04.914 which became a reality on January 1, 1995, 02:16:05.120 --> 02:16:10.069 and covers a multitude of agreements. Not just the perennial GATT 02:16:10.320 --> 02:16:12.675 but the agricultural accord, 02:16:12.800 --> 02:16:16.475 the TRIPS accord on intellectual property, 02:16:16.600 --> 02:16:21.754 the general accord on the service trade, a huge thing that covers 02:16:22.400 --> 02:16:25.153 11 main areas and 160 sub-areas, 02:16:25.360 --> 02:16:28.716 so that all human activities are found there, 02:16:29.920 --> 02:16:32.593 covered by GATT regulations: 02:16:32.840 --> 02:16:36.196 education, health, culture, environment. 02:16:36.480 --> 02:16:40.029 There are other technical agreements 02:16:40.320 --> 02:16:44.552 that may seem technical, but that are extremely political: 02:16:45.000 --> 02:16:48.276 the accords on technical trade barriers, 02:16:49.000 --> 02:16:52.674 on sanitary and phytosanitary measures. 02:16:52.959 --> 02:16:57.511 These are accords on standards that various members, i.e., States, 02:16:58.000 --> 02:17:00.308 can put in place 02:17:01.000 --> 02:17:06.074 and which declare that certain norms are technical barriers to trade. 02:17:06.400 --> 02:17:10.712 Perhaps lesser known, but the most important of all 02:17:11.240 --> 02:17:14.277 is the Dispute Settlement Understanding, 02:17:14.879 --> 02:17:19.510 which is the very powerful judicial branch 02:17:19.760 --> 02:17:21.990 of the World Trade Organization, 02:17:22.240 --> 02:17:26.790 which enables it to settle disputes among members 02:17:27.040 --> 02:17:29.429 and exercise jurisprudence. 02:17:29.959 --> 02:17:32.155 So, who judges? 02:17:32.719 --> 02:17:37.748 We don’t really know. Experts are chosen from lists. 02:17:40.040 --> 02:17:43.510 Countries may recommend someone for these lists. 02:17:43.760 --> 02:17:46.478 They’re generally private citizens. 02:17:46.719 --> 02:17:51.510 Business lawyers or sometimes former business executives. 02:17:52.160 --> 02:17:56.039 But they’re unidentified. They meet in secret, 02:17:56.320 --> 02:17:58.072 generally in three’s. 02:17:59.200 --> 02:18:00.951 They decide fairly quickly. 02:18:01.240 --> 02:18:04.596 There’s also an appeals process, 02:18:04.840 --> 02:18:08.913 but appeals have the same conditions: a new panel, 02:18:10.080 --> 02:18:11.832 and it’s done in secret. 02:18:12.080 --> 02:18:18.030 What’s important to know about the DSB, the Dispute Settlement Body, 02:18:18.240 --> 02:18:20.117 is that it’s at once 02:18:21.480 --> 02:18:25.678 the legislator, the jurist and the executive, 02:18:25.920 --> 02:18:31.630 because it renders verdicts and establishes jurisprudence. 02:18:32.639 --> 02:18:35.950 It places itself above all the laws 02:18:36.160 --> 02:18:38.389 that have been passed 02:18:38.719 --> 02:18:42.508 by the countries’ individual legislatures, 02:18:42.760 --> 02:18:48.153 but also above international law, established laboriously over 50 years. 02:18:48.240 --> 02:18:49.593 Human rights, 02:18:51.559 --> 02:18:54.518 multi-lateral conventions on the environment, 02:18:55.559 --> 02:18:59.838 the basic labour conventions of the International Labour Organization. 02:19:00.080 --> 02:19:04.834 All this is forgotten and verdicts are rendered at the DSB 02:19:05.040 --> 02:19:07.793 that say, “Business trumps all, 02:19:08.959 --> 02:19:13.795 and we don’t want to hear about your environmental conventions.” 02:19:14.080 --> 02:19:19.074 And it’s executive because it has the power to impose sanctions. 02:19:19.840 --> 02:19:23.674 When a country disagrees with its verdict, it’s told, “Fine. 02:19:24.639 --> 02:19:29.555 Don’t make your legislation conform to our verdict, but you’ll pay. 02:19:29.799 --> 02:19:31.313 You’ll pay annually, 02:19:33.280 --> 02:19:38.718 through customs duties that your adversary in this settlement process 02:19:38.959 --> 02:19:42.669 will determine.” So when the U.S. decides 02:19:43.360 --> 02:19:46.716 to impose duties on Europe, for France, 02:19:46.959 --> 02:19:50.839 on foie gras, mustard and roquefort, 02:19:51.040 --> 02:19:53.793 it’s perfectly within its rights. 02:19:54.400 --> 02:20:00.589 And it’s expensive. And few countries can afford this annual leaching. 02:20:02.280 --> 02:20:08.037 At the WTO, various negotiations go on at the same time. 02:20:08.520 --> 02:20:13.230 A country with no ambassador in Geneva, 02:20:13.440 --> 02:20:16.273 or that shares one with other countries, 02:20:16.520 --> 02:20:22.231 as is the case with the Africans and with many small micro-States … 02:20:26.680 --> 02:20:31.470 It’s impossible for them to follow negotiations. 02:20:32.360 --> 02:20:38.629 So, the South doesn’t know what’s going on in all areas, 02:20:38.880 --> 02:20:41.952 and they say so openly. One Southern ambassador 02:20:42.240 --> 02:20:45.357 said, “The WTO is like a multiplex theatre. 02:20:45.680 --> 02:20:49.593 You must pick a film, you can’t see them all.” 02:20:50.880 --> 02:20:55.237 So they pick only what seems important to their country. 02:20:55.760 --> 02:20:58.479 So who really makes the decisions? 02:20:58.720 --> 02:21:03.077 They say it’s by consensus. There’s never been a vote. 02:21:04.080 --> 02:21:09.438 And the American ambassador said a vote would be a very bad precedent. 02:21:09.640 --> 02:21:11.870 So much for democracy. 02:21:12.960 --> 02:21:16.589 In reality, it’s the Quad. The Quad is 4 countries - 02:21:16.840 --> 02:21:21.709 Canada, the U.S., the European Union and Japan - 02:21:22.240 --> 02:21:26.233 that meet all the time and have numerous staff 02:21:26.720 --> 02:21:28.153 at the WTO, 02:21:28.360 --> 02:21:31.352 and that come to their own consensus 02:21:31.560 --> 02:21:34.836 and come back before the plenary assembly 02:21:35.080 --> 02:21:37.958 and say, “Well, you agree, don’t you?” 02:21:40.480 --> 02:21:45.873 And it’s very hard for Southern countries to say no. 02:21:46.120 --> 02:21:48.759 It takes courage and they must be certain, 02:21:48.960 --> 02:21:53.556 because pressure tactics against them exist. 02:21:54.480 --> 02:21:56.357 And don’t delude yourself. 02:21:56.440 --> 02:22:02.515 If you’re dependent on the IMF or have problems with the U.S., 02:22:02.760 --> 02:22:06.833 you know you can’t step out of line. 02:22:07.840 --> 02:22:13.360 Certainly, the financial markets and the Bretton Woods institutions 02:22:13.360 --> 02:22:18.920 have become privileged instruments of the neo-liberal conquest. 02:22:18.920 --> 02:22:23.120 But some countries still obstinately refuse 02:22:23.120 --> 02:22:26.560 to join this forced march. 02:22:26.560 --> 02:22:30.920 That’s when colonialism sheds its new suit 02:22:30.920 --> 02:22:35.200 and comes forth in its old warrior gear. 02:22:35.200 --> 02:22:42.920 From the break-up of Yugoslavia to the war in Afghanistan via Darfur, 02:22:42.920 --> 02:22:49.960 post-Cold War conflicts hinge on very different issues 02:22:49.960 --> 02:22:57.800 than the ones Western propaganda presents as new “military humanism”. 02:22:57.800 --> 02:23:03.960 Control over resources, financial flux and geostrategic space - 02:23:03.960 --> 02:23:11.240 like the dictates of the IMF, the World Bank and the WTO - 02:23:11.240 --> 02:23:17.440 ensure the domination of mega- corporations and giant capitalists 02:23:17.440 --> 02:23:20.360 over the entire planet. 02:23:20.360 --> 02:23:25.160 Also, the colonial governments that the conquerors have installed 02:23:25.160 --> 02:23:30.400 have soon moved to adopt the dogma of neo-liberal ideology. 02:23:30.400 --> 02:23:34.234 And the encirclement is complete. 02:23:35.240 --> 02:23:35.400 neo-liberalism or neo-colonialism? 02:23:35.400 --> 02:23:42.920 neo-liberalism or neo-colonialism? 02:23:42.920 --> 02:23:50.600 strong-arm tactics of military humanism 02:23:50.600 --> 02:23:52.520 or 02:23:52.520 --> 02:23:58.197 war is peace 02:24:02.040 --> 02:24:04.918 The Dayton Accords were signed in ’95 02:24:05.520 --> 02:24:07.590 on an American military base. 02:24:08.320 --> 02:24:12.836 And if we consult the text of these accords, 02:24:13.840 --> 02:24:18.072 we see the Constitution of Bosnia-Herzegovina appended 02:24:18.320 --> 02:24:19.799 to the Dayton accords. 02:24:20.040 --> 02:24:25.398 This constitution was written by American consultants and lawyers, 02:24:25.800 --> 02:24:30.555 who got together and wrote a fundamental document 02:24:31.000 --> 02:24:34.788 without so much as a constituent assembly 02:24:35.040 --> 02:24:37.395 of Bosnia-Herzegovina citizens. 02:24:37.760 --> 02:24:40.797 And we can read in this constitution 02:24:43.080 --> 02:24:45.958 prepared by the United States, 02:24:49.600 --> 02:24:50.999 Article X: 02:24:52.040 --> 02:24:54.838 The central bank of Bosnia-Herzegovina 02:24:55.520 --> 02:25:02.119 shall not function as a central bank. It must function as a currency board. 02:25:04.400 --> 02:25:07.437 In other words, a colonial bank, 02:25:07.640 --> 02:25:11.633 with no chance of creating money. 02:25:11.880 --> 02:25:16.954 Meaning, it’s completely trapped by its external creditors. 02:25:17.320 --> 02:25:22.030 Well, that’s the model that currently exists in Argentina. 02:25:22.280 --> 02:25:28.150 Moreover, in the Bosnia-Herzegovina Constitution, written in Dayton, 02:25:29.000 --> 02:25:30.194 we read that 02:25:30.800 --> 02:25:36.796 the IMF will nominate the president of Bosnia-Herzegovina’s central bank, 02:25:37.120 --> 02:25:39.350 and this person … 02:25:39.600 --> 02:25:42.194 may not be a citizen 02:25:43.080 --> 02:25:45.913 of either Bosnia-Herzegovina or a neighbouring country. 02:25:46.160 --> 02:25:50.358 In other words, we see that this constitution, 02:25:50.560 --> 02:25:52.357 which is totally fabricated 02:25:52.560 --> 02:25:57.953 and has no citizen base within Bosnia-Herzegovina, 02:25:58.640 --> 02:26:01.279 is installing a colonial government. 02:26:02.080 --> 02:26:07.074 We don’t call it that. We say it’s the international community … 02:26:07.360 --> 02:26:12.639 But ultimately we see that all the administrative structures 02:26:13.680 --> 02:26:16.478 are dominated by foreigners. 02:26:16.960 --> 02:26:22.318 Budgets are dominated by foreigners. Monetary policy is non-existent. 02:26:26.120 --> 02:26:28.759 Nevertheless, the Dayton Accords 02:26:29.000 --> 02:26:34.677 are now being presented by the so-called international community 02:26:34.880 --> 02:26:39.237 as the answer to the problems of various countries. 02:26:39.440 --> 02:26:44.116 They’d like to establish the same management model - 02:26:46.760 --> 02:26:49.479 colonial administration - 02:26:51.240 --> 02:26:54.232 in countries like Macedonia and Yugoslavia. 02:26:55.520 --> 02:26:58.671 Indeed, they talk about a mosaic. 02:26:58.800 --> 02:27:00.950 A mosaic of protectorates. 02:33:09.040 --> 02:33:12.589 Adaptation: Kathleen Fleming Anrà Médiatextes, Montréal 02:33:13.040 --> 02:33:16.589 srt & ripped by Tokadime