Making globalization
work
By Jose
Maria Figueres
DAVOS, Switzerland -
Globalization is a fact. We should start by
acknowledging this. With continuous advances in
communications technologies, the world is more and more
a global village in which opposite ends of the Earth can
communicate in real time. Indeed, the fact that the
World Economic Forum in Davos and the World Social Forum
in Porto Alegre, Brazil, have happened at the same time
is itself a demonstration of this.
It is also
true that globalization is a double-edged tool. We can
take advantage of it with sound national strategies
designed to increase the well-being of our citizens. Or
we can fold our arms and do nothing and allow
globalization to take advantage of us. We have the
possibility to decide and build our future, but no one
will do it for us. The responsibility is ours.
Globalization is more than a simple process of
economic opening and tariff reduction. Taking advantage
of it requires clear policies that at the same time
reinforce macro-economic stability, strengthen strategic
social investment, mainly in health and education, and
promote responsible use of natural resources. This can
be achieved only through common efforts by all social
actors - business, civil society, academics, and
government - who share a vision of the country they
would like to have and the society they would like to
construct.
As far as globalization is concerned,
it doesn't matter if a country is small or large - in
marked contrast to the situation during the Cold War.
What matters now is that societies organize themselves
quickly and that countries are "fast" rather than "slow"
to make the changes necessary to take advantage of new
opportunities.
The tenor of these observations
derives in part from what I was able to achieve during
my years in government. When I was president of Costa
Rica, the global technology firm Intel was seeking to
set up a microprocessor plant outside of the United
States. When its search began, Costa Rica was not even
in consideration, yet it ended up being selected as the
best choice. We worked hard to make this happen, with
the active participation of all sectors of the country.
In its first year of operation in Costa Rica,
Intel exports exceeded our total exports of coffee and
bananas (we are the world's second-largest banana
exporter). The country then became a magnet for other
high-tech companies. Work opportunities in turn
reinforced the interest of new generations in pursuing
higher education and careers in technology. Thus began a
virtuous circle that today includes a growing export
sector in software by small national companies, a
high-value-added product.
Did we persuade Intel
to invest in Costa Rica by promising low-wage workers,
fiscal incentives, or environmental concessions? The
opposite is true:
Costa Rica has the highest wages in Latin America,
preferring to compete instead on the basis of higher
productivity, not with "hunger salaries".
The fiscal incentives it offers for investment are
no greater than those any company receives in Ireland,
Singapore or Israel. It is to be hoped that
globalization will require us to harmonize taxes
(raising them) to finance development adequately.
Costa Rica's environmental regulations are
comparable to those of developed countries. What quality
global firms least desire is to produce in countries
with no environmental controls, particularly in a world
where consumers are ever more demanding and better
informed.
Today Costa Rica plants more trees
that it cuts down, sells tonnes of carbon drawn from the
atmosphere, and pays small farmers for these services
they provide to society. By constitutional mandate, the
country invests 6 percent of its gross domestic product
in public education. Certainly many challenges continue
to face the country, but this is the form of
globalization that we pursue.
I have worked for
two years at the World Economic Forum. Convinced that
business has responsibilities to society and can play a
positive role in areas relating to development, the WEF
supports programs that work in this direction. Certain
companies are very clear about their mission in this
sense and practice it daily. Others less so. But many
governments and many grassroots organizations share this
understanding. After all, if development were simple, we
would all be developed.
Today it is more
important than ever to join forces and move forward. The
World Economic Forum and the World Social Forum share
the obligation to explore their common goals and work
toward them rather than accentuate their differences.
This is the way to do more for those who have the least,
and to work toward meeting the world's challenges.
Jose Maria Figueres is the managing
director of the World Economic Forum. He was president
of Costa Rica from 1994-98.
(Inter Press Service)
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