Another World is Possible, If

This week I am debating Susan George, a political scientist and a fierce critic of the World Bank, the IMF and the WTO. George refers to those as the three stooges of global capitalism. Recently she has added the OECD, making the reference passe. An alternative name suggested: the four baddies.

In essence, George's argument is that the Bretton Woods institutions (plus selected others) are the servants of global corporations. And since corporations can't think beyond their noses, nothing good can come out of that. A notable Susan George quote: "Markets can't think about anything beyond about three months. This is very long-term for markets, which is why the important things in life have got to be taken outside of the marketplace. " Lesson one: market institutions are bad for development.

Suppose that reasoning were true. Then it is hard to make it consistent with the criticism of the World Bank and other "baddies." They are not market institutions: they were created by governments precisely to fill a perceived gap in development. Lesson two: not all non-market institutions are good.

What next? I looked for an answer in George's latest book, Another World is Possible, If. It curiously offers no advice on how else to create good non-market institutions. One "institution" that is increasingly mentioned in her recent comments are remittances, as an alternative source of money to developing countries. But remittances are markets! Here is how they work: a poor person goes to a richer market and gets a job, then sends money home, where he could not find a good job in the first place. Lesson three: Some market institutions are good.

Which leaves George and like-minded commentators in a bind: there is no consistent logic to their argument. If spelled out, the story would go something like this: markets are short-sighted and fail to care for the poor, with important exceptions; non-market solutions are long-sighted and care for the poor, with important exceptions. Not the kind of rallying cry against capitalist pigs one wants to have.

Which leads us to the most important lesson. Lesson four: don't be disturbed by lack of logic. Add "radical" to your title and forge ahead. Which is what Susan George, a self-professed "radical reformer," is doing. And doing it well.