Bumpy Road

Arun Maira
TOI, January 6

Economists keep saying that globalisation and urbanisation are inevitable. But even if these phenomena are inevitable, we need not accept the way in which they are happening. No doubt, globalisation of finance is a reality. Capital is sloshing across national boundaries, and governments seem unable to control its reach. Nor should they try, some economists say. Stop romancing the villages, say others, criticising government efforts to improve the lot of people in the countryside. They will move to cities anyway, so focus on improving cities.

However there is a third force, associated more with man's heart than reason, that along with globalisation and urbanisation is shaping the world in this century. It is the thrust for more democracy, with its emphasis on rights of individuals and respect for their histories and identities.

It compels people to question how rules of globalisation are established, and how improvements are planned. Who is making the rules? Who is making the plans? Who must have equal voices in the processes of globalisation and urbanisation? To whom does the world and to whom do cities belong?

In his book, The Lexus and the Olive Tree, Thomas Friedman used the metaphor of the universally admired Lexus car for the force of globalisation and the metaphor of ancient olive trees for the forces of history and identity.

He predicted that the Lexus would prevail and the trees would wither. Perhaps in some distant future people will forget who they are. But that is unlikely to happen in the next 30 or 50 years. Indians know that the seeds of ancient trees are very potent.

If the tiny seeds of the peepul tree remain in the water in which cement is mixed, they will sprout, even after months, and break through the layer of concrete beneath which they are buried.

Thus the Israelis will not forget their roots in their ancient land to which they have returned no matter how sophisticated their technologies are; nor will the Palestinians forget their roots in the very same land in which their forefathers were born and died. In India, too, ancient caste divisions will continue to spill over into modern democratic processes for some time to come. The clash of these three forces is highlighting the democratic deficit. Present institutions of governance are not capable of managing globalisation and urbanisation democratically.

Whereas elected governments of nation-states are the principal, universally recognised, democratic institutions (and the global drive to expand the scope of democracy is focused on installing democratically-elected governments in all countries), national governments are being squeezed by forces above and within them.

Above them, global finance and MNCs, some larger than most countries, are floating across the governments' jurisdictions. Within nations, ancient identities and loyalties, reinforced by modern sensibilities for human rights, are creating fissures and challenging governments everywhere.

The combination of the forces of democracy, globalisation, and urbanisation is creating a huge storm in this century into which humanity aspires to sail in ships built and run on democratic principles. The design and construction of the ships must be improved and strengthened or we may all drown.

At the global level, the United Nations is creaking and the WTO teetering. Meanwhile, problems related to the environment and security that affect everybody and that require global co-operation are crying for solutions.

Democratic solutions must also be found to manage rapid urbanisation in fast growing economies. The governance of the sparklingly transformed Chinese cities does not conform to universally acknowledged principles of democracy.

Meanwhile, in democratic India, cities are crumbling because government institutions in these cities, as well as processes for effectively engaging their diverse stakeholders, are unable to deliver the results required. Caught in between these global and local problems is the national government (and state govern-ments) elected by India's citizens. Similarly, the US government is also caught between the demands for more democracy in global institutions and its responsibility to protect the interests of its own citizens.

What is the way to fill this increasing democratic deficit? It certainly cannot be to sit back and let globalisation and urbanisation, inevitable as they are, happen in whatever way they will.

The way forward must be to develop better institutions of governance founded on democratic principles that can effectively solve the huge systemic problems environmental stress, inequities and poverty, violence and terror that will stall the thrust by all countries to grow.

The Economist in a recent issue says, 'Capitalism cannot be the be-all and end-all". Growth is good: but growth of the economy cannot be the be-all and end-all of human progress. Humanity and society have to be put back into the economy.

We must pause and ask what sort of society do we want to be? And what do we want to preserve and to grow along with the growth of our economy? Systemic solutions will require global vision and local actions.

However, global solutions cannot be forced upon nations and localities or left to emerge by purely economic forces. The aspirations and hearts of people in those localities must also shape the solutions.