00:00:01.220 --> 00:00:05.162
[MUSIC MADDY PRIOR, "HONEST
WORK"]

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In recent months, more than a
million people, most of them

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young, have protested against
the new economic order call

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globalization.

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This represents one of the
greatest popular movements

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since the 1960s.

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Surely, never before
has the human race

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enjoyed such amazing capacity
to create wealth and reduce

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poverty.

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Yet never before, has the
gulf between rich and poor

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been so vast and
inequality so widespread.

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The facts of globalization
are revealing.

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A small group of
powerful individuals

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are now richer than most of
the population of Africa.

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Just 200 giant
corporations dominate

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a quarter of the world's
economic activity.

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General Motors is now
bigger than Denmark.

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Ford is bigger
than South Africa.

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Unseen by shoppers
in the High Street,

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the famous brands of almost
everything from running shoes

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to baby clothes are now
made in very poor countries

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with cheaper labor,
at times bordering

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on a form of slave labor.

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Tiger Woods, the golfer,
is paid more money

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to promote Nike than most
of the entire workforce

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actually making Nike
products here in Indonesia.

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Is this the global village
we are told is our future?

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Or is it merely an
old project that

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used to be run by the
divine right of kings

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and is now run by
the divine right

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of multinational
corporations and

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by the financial institutions
and governments that back them?

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This film is about these
new rulers of the world

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and especially their impact
on one country, Indonesia.

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Indonesia is where the old
imperialism meets the new.

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This is a country that
should not be poor.

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It's rich in almost
everything, mountains

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of copper and gold, oil,
timber, and the skills

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and labor of its people.

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Colonized by the Dutch
in the 16th century,

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Indonesia was
plundered by the West

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for hundreds of years, a debt
that is yet to be paid back.

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Globalization is
used by its champions

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to suggest a coming together
of people of all races,

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of all countries.

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And it will relieve poverty.

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It will distribute wealth.

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What we're actually
seeing is precisely

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the opposite processes in train.

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That the poor of
becoming markedly poorer,

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while the very wealthy are
becoming staggeringly wealthy.

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And here are some of the
staggeringly wealthy.

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This is a wedding in Jakarta
of the Indonesian elite.

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Two merchant families
are being united.

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Four years ago, the World
Bank called Indonesia

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a dynamic economic
success, a model pupil

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of the global economy.

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Among the Versace
dresses and diamonds are

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those who have
reaped the benefits

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of the new global freedoms,
freedom to watch money

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make more money.

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In this respect, they
could be any nationality.

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Outside this wedding,
there's another world.

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In Indonesia, as many
as 70 million people

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live in extreme poverty.

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We calculate that it would
take an Indonesian worker,

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like this waiter, 400
years to pay for a wedding

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reception like this.

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Less than five miles
away is the backyard

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of the global economy, the
side of the dynamic success you

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don't see.

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This is a labor camp
that's home to workers

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who make the clothes we buy in
the high streets and shopping

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malls.

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This is the human price paid
for our fashionable trainers,

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our smart shirts, our
jeans with a tag that

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says made in Indonesia.

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Young people living here who
make the famous brands are paid

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on average the equivalent of
72 pence a day, about $1.00.

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That's the legal minimum
wage in Indonesia.

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According to the
Indonesian government,

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it's just over
half a living wage.

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The dormitories are made from
breeze blocks and packing

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cases.

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When it rains, they flood.

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There are open sewers and
no clean running water.

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Many of the children
are undernourished

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and prey to disease.

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While I was filming here,
I caught dengue fever.

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Carried by the mosquitoes
which infest these slums,

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it kills children.

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The conditions here and not very
different from workers' camps

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in other parts of Asia, in
Africa, and in Latin America,

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where the famous brands
are also made cheaply

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for lucrative Western markets.

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And this is where they work.

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In what is called an economic
processing zone, which means

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a vast area sweatshops.

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The factories may look modern,
but once you step inside,

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you feel the claustrophobia
of the workers,

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the sheer frenzy of
their production,

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and you see their fatigue.

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Posing as fashion buyers,
we filmed secretly

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in this factory.

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The factories are owned
by Taiwanese and Korean

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contractors, who
employ cheap labor

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to make the products of famous
brands such as Nike, Reebok,

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Adidas.

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We looked at one
famous brand, Gap.

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The working conditions.

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we found are by no
means the worst.

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So you do Gap.

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Of course, you do lots of Gap.

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And I mean the quality control
of Gap, I think, is excellent.

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We found more than 1,000, mostly
young, women working crowded

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together under the glare of
strip lighting in temperatures

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that can reach 40
degrees centigrade.

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The only air conditioning is
upstairs where the bosses are.

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Working hours can
vary and can be

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increased dramatically
when an urgent export

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order has to be met.

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We surveyed five factories
regarded as typical,

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and I interviewed workers
from all over Jakarta.

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You work a 24 hour shift
with just a couple of breaks.

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And then two hours later,
you start another shift.

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So in effect, you
work a 36 hour shift?

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Are you given any choice?

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What would happen if you refused
to do this 24 hour shift?

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On these long 24
hour shifts, do you

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recall what labels
you were packing?

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Do any of the people
from the Gap company

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ever visit your factory?

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Do they ever ask you
about, or investigate

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the working conditions,
your working conditions?

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What they tell you to say?

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This is what the Gap company
calls a code of conduct.

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In response to criticism,
famous global brands like Gap

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have come up with these codes.

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They say the idea is to set
standards and protect workers.

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But how effectively
is it enforced?

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You have to come to
Indonesia to really realize

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what code of conduct means.

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And that it is almost useless
to exercise or to implement

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a code of conduct
here in this country

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because this government
is always complaining.

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Cheap labor, here in Asia,
attracts foreign investment.

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And codes of conducts cannot
do anything about that.

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And because Indonesian
workers are already very poor

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and the rate of unemployment
here is very, very high,

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people will work whatever
kind of work they have.

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How much they are paid,
they will still work.

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The Gap company stipulates
a maximum working week

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of 60 hours.

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It says workers
may refuse overtime

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without any threat of penalty.

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Are there people who
do extraordinary shifts

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like much more than 12 hours,
or even up to 24 hours?

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16 hours standing?

00:12:06.470 --> 00:12:07.890
Yeah.

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Is that common?

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Is the Gap code of conduct
displayed in the factory?

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These boxer shorts were
made in one of the factories

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we investigated.

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Before we left London, we
bought a pair at a Gap store

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in Oxford Street for 8 pounds.

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Out of that 8 pounds,
an Indonesian worker

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gets less than 4 pence.

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It's the same for running
shoes that sell for 100 pounds.

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Out of that 100 pounds, a
worker gets around 40 pence.

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That wouldn't even
buy the laces.

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Last year, the Chief Executive
of Gap earned more than $5

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and 1/2 million.

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The profits of Gap
were $1.38 billion.

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And this is typical of many
multinational companies.

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In order to protect the
workers in this film,

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we have not named the
factories we investigated.

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In Indonesia, as
in other countries

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which have sweatshop economies,
workers who speak out

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face the danger of victimization
from contractors and violence

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from anti-trade union forces.

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Dita Sari, a trade union
leader, was herself

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imprisoned and tortured.

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Codes of conduct must be
monitored by trade unions.

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How could you monitor
codes of conduct

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if trade unions are still weak,
if the police are surrounding

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their activities, and if
they're facing repression

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whenever they operate?

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We asked the Gap company
for an interview,

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but they declined,
saying it was unfair not

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to identify the
factories as they

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couldn't verify our evidence.

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We sent them a
list of questions,

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and they supplied
this statement.

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Gap says it employs
"one of the most

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comprehensive factory monitoring
programs in their industry.

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For some manufacturers, our
standards are too tough,

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and we refuse to do
business with them.

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We prefer to work with
them to fix the problem.

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We can't force them to comply."

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One of the things that
we can do to take action

00:15:06.030 --> 00:15:10.510
in support of better conditions
for people in developing

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countries is when we buy
anything, ask the retailer

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where this product comes
from, under what conditions

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it's produced.

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Write to the company
that make the product

00:15:21.260 --> 00:15:26.890
and say you want assurances that
this comes from a factory that

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treats its workers well,
that gives its workers right

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to be able to form
trade unions, etc.

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And these are some
very basic ways

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in which we can act
as informed consumers.

00:15:39.800 --> 00:15:43.088
[MUSIC MADDY PRIOR, "HONEST
WORK"]

00:16:10.590 --> 00:16:14.160
Globalization in Asia
has a secret history.

00:16:14.160 --> 00:16:18.570
The great sweatshops, and banks,
and luxury hotels in Indonesia

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were built on the mass murder of
as many as one million people,

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an episode the West
would prefer to forget.

00:16:28.010 --> 00:16:31.240
But many people here
have not forgotten.

00:16:31.240 --> 00:16:33.620
In recent years, people
all over the country

00:16:33.620 --> 00:16:37.380
have begun searching for the
remains of loved ones murdered

00:16:37.380 --> 00:16:39.830
when General
Suharto seized power

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in the mid 1960s, aided by
the United States and Britain.

00:16:45.884 --> 00:16:49.300
[SPEAKING INDONESIAN]

00:16:58.580 --> 00:17:01.170
Until recently, the
truth of this episode

00:17:01.170 --> 00:17:05.535
has remained so secret that this
is the only known photograph

00:17:05.535 --> 00:17:06.285
of the atrocities.

00:17:20.960 --> 00:17:25.310
One day in early October
1965, a gang of thugs

00:17:25.310 --> 00:17:28.440
entered this school in
Jakarta and beat to death

00:17:28.440 --> 00:17:29.840
the head master.

00:17:29.840 --> 00:17:32.720
He was suspected of
being a communist.

00:17:32.720 --> 00:17:34.820
His murder was typical
of the slaughter

00:17:34.820 --> 00:17:38.140
of more than a million
people, teachers, students,

00:17:38.140 --> 00:17:41.320
civil servants, peasant farmers.

00:17:41.320 --> 00:17:44.160
Described by the CIA as
one of the worst mass

00:17:44.160 --> 00:17:47.300
murders of the 20th
century, the origins

00:17:47.300 --> 00:17:50.760
of this terrible episode
have been covered in mystery.

00:17:50.760 --> 00:17:54.240
Certainly, it brought to
power General Suharto.

00:17:54.240 --> 00:17:58.090
But what is now emerging is the
extent to which he was secretly

00:17:58.090 --> 00:18:00.630
backed by the United
States and Britain

00:18:00.630 --> 00:18:03.370
and by Western business leaders.

00:18:03.370 --> 00:18:06.850
Within a year of the blood
bath, Indonesia's economy

00:18:06.850 --> 00:18:09.960
was effectively
redesigned in America,

00:18:09.960 --> 00:18:13.830
giving the west access to
vast mineral wealth, markets,

00:18:13.830 --> 00:18:14.940
and cheap labor.

00:18:14.940 --> 00:18:21.550
It's what President Nixon called
the greatest prize in Asia.

00:18:21.550 --> 00:18:25.690
To Western business, the
great value of General Suharto

00:18:25.690 --> 00:18:27.520
was that he succeeded
in getting rid

00:18:27.520 --> 00:18:29.930
of the founder of
modern Indonesia,

00:18:29.930 --> 00:18:32.710
Achmed Sukarno,
a nationalist who

00:18:32.710 --> 00:18:36.180
believed in economic
independence for his people.

00:18:36.180 --> 00:18:39.970
He kept the great Western
corporations out of Indonesia

00:18:39.970 --> 00:18:42.730
and threw out their
agents, the World Bank,

00:18:42.730 --> 00:18:45.180
and the International
Monetary Fund.

00:18:45.180 --> 00:18:48.760
It was only when one of
his generals, Suharto,

00:18:48.760 --> 00:18:52.510
seized power that the door
was opened to Asia's greatest

00:18:52.510 --> 00:18:54.600
prize.

00:18:54.600 --> 00:19:00.470
When the Suharto regime
came in after the pooch,

00:19:00.470 --> 00:19:02.620
they were able to
make a lot of the fact

00:19:02.620 --> 00:19:07.830
that they were calling the IMF
and the World Bank back in.

00:19:07.830 --> 00:19:09.940
They were going to
rescue them, you see.

00:19:09.940 --> 00:19:13.750
And British propaganda, in
particular, made a lot of this,

00:19:13.750 --> 00:19:16.200
that the IMF was decent.

00:19:16.200 --> 00:19:17.720
And it was going to bring order.

00:19:17.720 --> 00:19:20.930
And everything was going to
be lovely in the Indonesian

00:19:20.930 --> 00:19:21.900
garden.

00:19:21.900 --> 00:19:26.190
And as I say, a British
diplomat still alive

00:19:26.190 --> 00:19:29.420
has said to me that was very
much a part of the deal.

00:19:32.000 --> 00:19:34.320
Britain and the
United States secretly

00:19:34.320 --> 00:19:37.310
conspired to back
General Suharto.

00:19:37.310 --> 00:19:39.310
The American
ambassador assured him

00:19:39.310 --> 00:19:41.870
that the US government
is generally

00:19:41.870 --> 00:19:45.610
sympathetic with an admiring
of what the army is doing.

00:19:51.290 --> 00:19:53.430
Thousands were rounded up.

00:19:53.430 --> 00:19:55.470
What was not known
at the time was later

00:19:55.470 --> 00:19:58.040
revealed by American officials.

00:19:58.040 --> 00:20:02.550
The CIA had supplied a
list a 5,000 opponents

00:20:02.550 --> 00:20:04.250
to be assassinated.

00:20:04.250 --> 00:20:07.040
And embassy officials
ticked off their names

00:20:07.040 --> 00:20:09.020
as they were murdered.

00:20:09.020 --> 00:20:13.100
The British ambassador
recommended a little shooting

00:20:13.100 --> 00:20:17.200
as an essential preliminary
to effective change.

00:20:17.200 --> 00:20:21.660
In the first few days, the
British sources, in particular,

00:20:21.660 --> 00:20:26.614
purported not really to
know what was going on.

00:20:26.614 --> 00:20:28.438
Of course they knew
what was happening.

00:20:28.438 --> 00:20:30.146
I mean, there were
bodies being washed up

00:20:30.146 --> 00:20:32.610
on the lawn of the British
Consulate in Surabaya.

00:20:32.610 --> 00:20:35.530
Their bodies were floating
all over the Malacca Strait

00:20:35.530 --> 00:20:38.765
and so forth

00:20:38.765 --> 00:20:42.262
A man called Hadibroto,
a lieutenant colonel

00:20:42.262 --> 00:20:46.780
or something, was anxious
to take some Indonesian

00:20:46.780 --> 00:20:50.630
troops from the east
coast of Sumatra--

00:20:50.630 --> 00:20:52.910
from the northeast
coast of Sumatra--

00:20:52.910 --> 00:20:56.280
to eastern central
Java, so that they

00:20:56.280 --> 00:20:58.590
could take part in
what we now know was

00:20:58.590 --> 00:21:02.020
just terrible holocaust really.

00:21:02.020 --> 00:21:04.050
He found a Panamanian ship.

00:21:04.050 --> 00:21:05.980
And the ship sailed
with the troops

00:21:05.980 --> 00:21:08.040
down the Malacca
Strait, escorted

00:21:08.040 --> 00:21:10.460
by two British warships.

00:21:10.460 --> 00:21:13.100
So the British were
directly involved in,

00:21:13.100 --> 00:21:17.750
as what you describe,
as a holocaust.

00:21:17.750 --> 00:21:20.890
I would count that some sort
of involvement, wouldn't you?

00:21:23.700 --> 00:21:26.470
The American press
reported these events

00:21:26.470 --> 00:21:29.650
not as a crime against
humanity, but in terms

00:21:29.650 --> 00:21:32.080
of their economic
advantage to the West.

00:21:35.790 --> 00:21:38.500
Time magazine called
them vengeance

00:21:38.500 --> 00:21:42.510
with a smile and the
West's best news for years.

00:21:45.540 --> 00:21:51.160
Others described a
gleam of light in Asia.

00:21:51.160 --> 00:21:55.090
The seeds of globalization
were planted in the blood bath.

00:21:55.090 --> 00:21:58.600
In 1967, the Time
Life corporation

00:21:58.600 --> 00:22:01.190
sponsored a conference
in Switzerland

00:22:01.190 --> 00:22:05.370
that planned the corporate
takeover of Indonesia.

00:22:05.370 --> 00:22:07.970
It was attended by the
most powerful businessmen

00:22:07.970 --> 00:22:11.110
in the world, such
as David Rockefeller.

00:22:11.110 --> 00:22:14.350
The giants of Western
capitalism were represented,

00:22:14.350 --> 00:22:17.540
the oil companies, the
bank's, General Motors,

00:22:17.540 --> 00:22:21.990
British Leyland, ICI,
British American Tobacco,

00:22:21.990 --> 00:22:25.225
Lehman Brothers, American
Express, Siemens.

00:22:29.160 --> 00:22:31.480
Across the table were
Indonesian leaders

00:22:31.480 --> 00:22:33.010
approved by General Suharto.

00:22:35.770 --> 00:22:38.890
For Western business,
it was the start

00:22:38.890 --> 00:22:42.607
of the gold rush which later
became known as globalization.

00:22:47.450 --> 00:22:51.005
No one mentioned the
killing of a million people.

00:23:01.300 --> 00:23:03.620
I've never ever
heard of a situation

00:23:03.620 --> 00:23:05.110
like this for any country.

00:23:05.110 --> 00:23:10.070
Where global capital essentially
holds a meeting with State

00:23:10.070 --> 00:23:12.900
and hammers out the
conditions of their own entry

00:23:12.900 --> 00:23:15.510
into the country.

00:23:15.510 --> 00:23:19.020
The conference went
on for three days.

00:23:19.020 --> 00:23:21.290
The first day was
when the Indonesians

00:23:21.290 --> 00:23:25.570
spoke and essentially
made their case.

00:23:25.570 --> 00:23:29.360
They divided into five different
sections on the second day.

00:23:29.360 --> 00:23:32.120
Sectoral meetings--
mining in one room.

00:23:32.120 --> 00:23:35.120
Food services, light
industry in another.

00:23:35.120 --> 00:23:36.920
Banking and finance in another.

00:23:36.920 --> 00:23:38.430
Chase Manhattan was there.

00:23:38.430 --> 00:23:40.880
And simultaneously,
they hammered out

00:23:40.880 --> 00:23:46.410
policies that were going to
be acceptable to these global

00:23:46.410 --> 00:23:50.017
investors on a sector by
sector basis with each

00:23:50.017 --> 00:23:51.850
of the people going
around the table saying,

00:23:51.850 --> 00:23:53.808
this is what we need to
see-- this, this, this.

00:23:53.808 --> 00:23:57.880
And they basically designed
the legal infrastructure

00:23:57.880 --> 00:23:59.140
for investment in Indonesia.

00:24:04.670 --> 00:24:06.590
Was the foreign
business community

00:24:06.590 --> 00:24:10.100
here aware that
they were dealing

00:24:10.100 --> 00:24:15.250
not just with a corrupt
nepotistic dictatorship,

00:24:15.250 --> 00:24:16.515
but also with a mass murderer?

00:24:22.630 --> 00:24:25.780
That's a very general question.

00:24:25.780 --> 00:24:27.830
No, it's quite
specific, actually.

00:24:27.830 --> 00:24:29.310
Mass murder is mass murder.

00:24:40.070 --> 00:24:41.670
The fact that many
people have died

00:24:41.670 --> 00:24:52.990
in Indonesia in unfortunate
tragic circumstances,

00:24:52.990 --> 00:24:58.120
directly or indirectly as a
result of the previous regime,

00:24:58.120 --> 00:25:01.070
is hugely unfortunate.

00:25:01.070 --> 00:25:05.060
Whether if foreign
investment had not been here

00:25:05.060 --> 00:25:08.710
that would have
prevented, in any way,

00:25:08.710 --> 00:25:15.450
those events occurring--
nobody has perfect vision

00:25:15.450 --> 00:25:16.950
on what might have been.

00:25:22.410 --> 00:25:26.090
Globalization began in
Britain in the 1980s

00:25:26.090 --> 00:25:27.900
when Margaret
Thatcher dismantled

00:25:27.900 --> 00:25:31.850
much of manufacturing and
poured millions of pounds

00:25:31.850 --> 00:25:35.370
into building up
the arms industry.

00:25:35.370 --> 00:25:38.890
Indonesia became an important
British arms market.

00:25:38.890 --> 00:25:42.290
And General Suharto was
sold everything lethal

00:25:42.290 --> 00:25:44.810
from fighter
aircraft and missiles

00:25:44.810 --> 00:25:48.010
to warships and machine guns.

00:25:48.010 --> 00:25:51.430
Unknown to the British
public, millions of pounds

00:25:51.430 --> 00:25:55.000
went to the dictator
in export credits.

00:25:55.000 --> 00:25:58.700
In other words, a large
part of his arms bill

00:25:58.700 --> 00:26:02.550
was paid by the
British taxpayer.

00:26:02.550 --> 00:26:06.140
So important was Suharto
as a business partner,

00:26:06.140 --> 00:26:08.950
that the mass murderer
was welcomed to London

00:26:08.950 --> 00:26:10.490
by the Queen.

00:26:10.490 --> 00:26:13.920
[MUSIC "FLIGHT OF THE
VALKYRIES"]

00:26:19.310 --> 00:26:22.170
Who are the new
rulers of the world?

00:26:22.170 --> 00:26:25.220
Their empire today is greater
than the British Empire ever

00:26:25.220 --> 00:26:26.860
was.

00:26:26.860 --> 00:26:29.656
This is the center
of this new empire,

00:26:29.656 --> 00:26:33.080
all within a square
mile in Washington.

00:26:33.080 --> 00:26:36.490
Down the road from the White
House and the US Treasury

00:26:36.490 --> 00:26:39.640
is the World Bank and the
International Monetary Fund.

00:26:47.730 --> 00:26:50.240
These two bodies are the
agents of the richest

00:26:50.240 --> 00:26:53.400
countries on Earth,
especially the United States.

00:26:56.950 --> 00:26:59.080
The World Bank and
the IMF were set up

00:26:59.080 --> 00:27:01.800
near the end of World
War II to rebuild

00:27:01.800 --> 00:27:04.230
the economies of Europe.

00:27:04.230 --> 00:27:07.560
Later, they began offering
loans to poor countries,

00:27:07.560 --> 00:27:10.280
but only if they
privatized their economies

00:27:10.280 --> 00:27:13.380
and allowed Western
corporations free access

00:27:13.380 --> 00:27:17.210
to their raw
materials and markets.

00:27:17.210 --> 00:27:21.940
This has really been used
as an instrument in order

00:27:21.940 --> 00:27:24.810
for the IMF and the
World Bank to get

00:27:24.810 --> 00:27:29.870
their policies implemented
in many developing countries.

00:27:29.870 --> 00:27:33.670
And we're into a situation now
where the poorest countries are

00:27:33.670 --> 00:27:36.240
in a vicious cycle of poverty.

00:27:36.240 --> 00:27:37.630
They can't get out.

00:27:37.630 --> 00:27:40.420
And the kind of
debt cancellation

00:27:40.420 --> 00:27:43.070
that's being given
still will not

00:27:43.070 --> 00:27:45.950
allow them to get out
of this poverty trap.

00:27:45.950 --> 00:27:49.070
It's not a question
of debt forgiveness

00:27:49.070 --> 00:27:51.520
because actually
many of the debts

00:27:51.520 --> 00:27:54.490
were incurred under pressure
from the international

00:27:54.490 --> 00:27:59.710
institutions or were given
in collusion with governments

00:27:59.710 --> 00:28:02.880
which weren't acting in the
interests of their people.

00:28:02.880 --> 00:28:03.660
Let me ask you.

00:28:03.660 --> 00:28:08.500
Do you know the difference
between Tanzania and Goldman

00:28:08.500 --> 00:28:09.980
Sachs?

00:28:09.980 --> 00:28:13.730
Tanzania is a country that
has a gross national product

00:28:13.730 --> 00:28:18.950
of $2.2 billion and shares
it between 25 million people.

00:28:18.950 --> 00:28:22.220
Goldman Sachs is
an investment firm

00:28:22.220 --> 00:28:25.500
which has annual
profits of $2.2 billion

00:28:25.500 --> 00:28:29.050
and shares them among
the 161 partners.

00:28:29.050 --> 00:28:31.910
That's the world
we're living in now.

00:28:37.990 --> 00:28:41.610
The World Bank says its aim is
to help poor people, promoting

00:28:41.610 --> 00:28:44.420
what it calls
global development.

00:28:44.420 --> 00:28:48.160
It's an ingenious system, a
kind of socialism for the rich

00:28:48.160 --> 00:28:50.390
and capitalism for the poor.

00:28:50.390 --> 00:28:53.110
The rich get richer on
running up debt, cheap labor,

00:28:53.110 --> 00:28:55.580
and paying as little
tax as possible.

00:28:55.580 --> 00:28:59.460
While the poor get poorer as
their jobs and public services

00:28:59.460 --> 00:29:01.870
are cut back in order
to pay just the interest

00:29:01.870 --> 00:29:06.100
on debt owed by their
governments to the World Bank.

00:29:06.100 --> 00:29:08.920
Here in Indonesia, where
most people are poor,

00:29:08.920 --> 00:29:11.220
the handouts to the rich
have been extraordinary,

00:29:11.220 --> 00:29:12.710
to say the least.

00:29:12.710 --> 00:29:14.750
Internal documents
of the World Bank

00:29:14.750 --> 00:29:17.890
confirm that up to a
third of the bank's loans

00:29:17.890 --> 00:29:20.610
to the dictatorship
of General Suharto

00:29:20.610 --> 00:29:24.910
went into the pockets of his
cronies and corrupt officials.

00:29:24.910 --> 00:29:26.345
That's around $8 billion.

00:29:34.870 --> 00:29:38.370
Globalization means that
capital and big money

00:29:38.370 --> 00:29:41.980
can be moved anywhere at
any time without warning.

00:29:41.980 --> 00:29:46.730
In 1998, short term capital was
suddenly pulled out of Asia,

00:29:46.730 --> 00:29:50.140
crippling the miracle
economy overnight.

00:29:50.140 --> 00:29:52.710
When the Indonesian
rupiah collapsed

00:29:52.710 --> 00:29:57.470
from being roughly 2,500 rupiah
to the dollar to being what

00:29:57.470 --> 00:30:01.390
it is now, 10,000 rupiah
to the dollar, the costs

00:30:01.390 --> 00:30:03.880
to Nike for each
Indonesian laborer

00:30:03.880 --> 00:30:06.690
was cut to 25% of
what it had been.

00:30:06.690 --> 00:30:11.800
And Nike got a great discount
on Indonesian labor as a result.

00:30:11.800 --> 00:30:15.170
And it did not unilaterally
raise Indonesian wages

00:30:15.170 --> 00:30:17.360
to the same standard
they had been

00:30:17.360 --> 00:30:19.345
prior to the devaluation
of the rupiah.

00:30:23.650 --> 00:30:25.880
With the economy
collapsed and Indonesia

00:30:25.880 --> 00:30:28.490
on the verge of
revolution, Suharto

00:30:28.490 --> 00:30:33.570
was forced to step down, having
already stolen an estimated $50

00:30:33.570 --> 00:30:34.070
billion.

00:30:39.390 --> 00:30:42.070
During his reign of
more than 30 years,

00:30:42.070 --> 00:30:44.600
Suharto had handed
out public utilities

00:30:44.600 --> 00:30:46.710
to his family and cronies.

00:30:46.710 --> 00:30:50.150
They owned most of the
national power grid.

00:30:50.150 --> 00:30:53.560
Nothing was overlooked,
from TV stations

00:30:53.560 --> 00:30:57.120
to a monopoly on taxes.

00:30:57.120 --> 00:31:00.660
Driving from Jakarta
Airport, you even paid a toll

00:31:00.660 --> 00:31:01.750
to Suharto's daughter.

00:31:06.340 --> 00:31:09.480
These unfinished buildings
are monuments to a corruption

00:31:09.480 --> 00:31:12.470
on a scale unheard
of in modern Asia

00:31:12.470 --> 00:31:15.505
to what the World Bank
called the miracle economy.

00:31:18.170 --> 00:31:21.710
The bank presents itself
as an economic development

00:31:21.710 --> 00:31:25.720
agency focused on the
reduction of poverty.

00:31:25.720 --> 00:31:29.860
But in fact, the bank operated
during the entire Cold War

00:31:29.860 --> 00:31:33.850
as an institution that
distributed resources

00:31:33.850 --> 00:31:38.550
to mostly authoritarian
regimes in the Third World that

00:31:38.550 --> 00:31:41.280
supported the West
in the Cold War.

00:31:41.280 --> 00:31:43.955
So you had the irony
of the West claiming

00:31:43.955 --> 00:31:45.830
that what they were
defending in the Cold War

00:31:45.830 --> 00:31:48.610
was democracy and a
certain vision of freedom,

00:31:48.610 --> 00:31:52.390
but doing so by upholding
dictatorships, like Indonesia,

00:31:52.390 --> 00:31:53.450
around the world.

00:31:53.450 --> 00:31:55.740
What they did was
they had plenty

00:31:55.740 --> 00:31:59.200
of projects, some of which
surely were valuable,

00:31:59.200 --> 00:32:00.810
many of which were not.

00:32:00.810 --> 00:32:03.800
Every one of these projects,
from the Indonesian government

00:32:03.800 --> 00:32:06.810
officials point of
view, was an opportunity

00:32:06.810 --> 00:32:10.850
to skim, to live
a luxurious life.

00:32:10.850 --> 00:32:13.590
And the accumulated
theft over the course

00:32:13.590 --> 00:32:17.760
of Suharto's new order-- roughly
three decades- was $10 billion

00:32:17.760 --> 00:32:22.330
that's unaccounted for out of
a total of about $30 billion

00:32:22.330 --> 00:32:23.610
that was loaned.

00:32:23.610 --> 00:32:26.860
And when I said to the Auditor
General of the World Bank, what

00:32:26.860 --> 00:32:31.720
if a group of Indonesian
citizens or even the government

00:32:31.720 --> 00:32:35.520
were to challenge the World
Bank in the World Court

00:32:35.520 --> 00:32:37.230
over this loss of money?

00:32:37.230 --> 00:32:40.160
The citizens, who bear
the burden of this debt,

00:32:40.160 --> 00:32:42.540
never got the money.

00:32:42.540 --> 00:32:45.510
Why should it still sit on
their shoulders to be repaid?

00:32:45.510 --> 00:32:49.050
And his response was,
we would be bankrupted.

00:32:49.050 --> 00:32:50.680
And I said, why?

00:32:50.680 --> 00:32:55.270
And he said, because this
has gone on the world over.

00:32:55.270 --> 00:32:56.950
I went to Washington
to interview

00:32:56.950 --> 00:33:01.730
the Chief Economist of the
World Bank, Nicholas Stern.

00:33:01.730 --> 00:33:04.700
I asked him to
explain how almost 30%

00:33:04.700 --> 00:33:10.270
of World Bank loans to Indonesia
had been lost or stolen.

00:33:10.270 --> 00:33:13.490
We simply don't know
what that number is.

00:33:13.490 --> 00:33:18.810
If you use your own internal
report, August '97, I quote,

00:33:18.810 --> 00:33:22.250
"We estimate that at least
20% to 30% of Government

00:33:22.250 --> 00:33:24.860
of Indonesia
development budget funds

00:33:24.860 --> 00:33:27.340
are diverted through
informal payments

00:33:27.340 --> 00:33:30.890
to government staff
and politicians."

00:33:30.890 --> 00:33:34.030
That number was
plucked out of the air.

00:33:34.030 --> 00:33:36.360
Lots of times, we have
to guess with numbers.

00:33:36.360 --> 00:33:39.130
And the person who
wrote that was guessing.

00:33:39.130 --> 00:33:41.610
Somebody comes up a number,
and it gets recycled.

00:33:41.610 --> 00:33:43.620
It's a lot of money.

00:33:43.620 --> 00:33:45.370
I don't want to
dismiss the issue.

00:33:45.370 --> 00:33:48.060
Just let's not get hung up
on one figure, which isn't

00:33:48.060 --> 00:33:49.470
a particularly hard figure.

00:33:49.470 --> 00:33:51.330
No, but if it's a
third of what the World

00:33:51.330 --> 00:33:53.100
Bank has put into one country--

00:33:53.100 --> 00:33:56.390
Then it's a serious question.

00:33:56.390 --> 00:34:01.120
When you have a loan, there's
a lender and a borrower.

00:34:01.120 --> 00:34:05.350
And they share the
responsibility in some way.

00:34:05.350 --> 00:34:07.150
There's a strong
case that has been

00:34:07.150 --> 00:34:10.330
made by people who have seen
this evidence that the World

00:34:10.330 --> 00:34:12.650
Bank was duped by
the Suharto regime,

00:34:12.650 --> 00:34:15.510
claiming that poverty
dropped to 30 million.

00:34:15.510 --> 00:34:17.901
And in fact, poverty
was around 60 million.

00:34:17.901 --> 00:34:19.400
Let's talk about
the harder figures.

00:34:19.400 --> 00:34:22.070
The income poverty figures are
always the most difficult ones

00:34:22.070 --> 00:34:23.719
to get your hands on.

00:34:23.719 --> 00:34:27.440
But I think illiteracy figures
and the infant mortality

00:34:27.440 --> 00:34:30.620
figures are, in this case,
probably more reliable.

00:34:30.620 --> 00:34:33.270
And there was some progress
during that 30 year

00:34:33.270 --> 00:34:36.880
period-- significant progress--
in cutting illiteracy by half.

00:34:36.880 --> 00:34:38.810
That's a very
important step forward.

00:34:38.810 --> 00:34:40.280
So let's not lose sight of that.

00:34:40.280 --> 00:34:44.690
In '97, the World Bank described
the economy under Suharto

00:34:44.690 --> 00:34:47.290
in a famous report as
absolutely dynamic,

00:34:47.290 --> 00:34:51.100
doing everything right,
terrific, brilliant.

00:34:51.100 --> 00:34:52.730
By that time, the
whole Asian thing

00:34:52.730 --> 00:34:55.340
had already started to collapse.

00:34:55.340 --> 00:34:57.290
It wasn't until
the following year

00:34:57.290 --> 00:35:01.440
that the World Bank, for
the first time in 30 years,

00:35:01.440 --> 00:35:07.380
had anything to say
about a regime that

00:35:07.380 --> 00:35:09.270
is guilty of mass murder.

00:35:09.270 --> 00:35:13.470
Why was there such a silence
that seemed to a lot of people

00:35:13.470 --> 00:35:16.480
simply to be complicity with
this murderous dictatorship?

00:35:19.250 --> 00:35:21.860
I think if we look
back on our analysis

00:35:21.860 --> 00:35:25.320
of the economy and the
politics at the time,

00:35:25.320 --> 00:35:27.270
we got a number of things wrong.

00:35:27.270 --> 00:35:29.870
And we have to understand that.

00:35:29.870 --> 00:35:32.510
We're going to get
things wrong again.

00:35:32.510 --> 00:35:37.100
Not so many people
called the Asian crisis

00:35:37.100 --> 00:35:38.550
before it happened.

00:35:38.550 --> 00:35:41.180
We failed along with a lot--

00:35:41.180 --> 00:35:43.180
It's your job though, isn't it?

00:35:43.180 --> 00:35:46.160
You're all economists
with a fantastic degrees

00:35:46.160 --> 00:35:48.540
and a brilliant backgrounds.

00:35:48.540 --> 00:35:50.650
And how could you
get it that wrong?

00:35:50.650 --> 00:35:52.560
We're going to get it
wrong some of the time.

00:35:52.560 --> 00:35:55.800
I think non-economists get
it wrong a lot more often

00:35:55.800 --> 00:35:58.540
than economists, but this
isn't a precise game.

00:35:58.540 --> 00:36:01.630
And there are going to
be a number of occasions

00:36:01.630 --> 00:36:04.640
in the future where we
get things wrong too.

00:36:04.640 --> 00:36:06.280
Globalization creates debt.

00:36:06.280 --> 00:36:09.640
And debt creates misery,
creates unemployment,

00:36:09.640 --> 00:36:13.750
creates the crisis,
creates privatization.

00:36:13.750 --> 00:36:16.770
A lot of state's enterprise
is being privatized.

00:36:16.770 --> 00:36:20.060
So people will have
to pay more to have

00:36:20.060 --> 00:36:25.230
an access, for instance,
to health and education.

00:36:25.230 --> 00:36:26.430
So it's not natural.

00:36:26.430 --> 00:36:28.320
That is not natural.

00:36:28.320 --> 00:36:30.540
It's designed.

00:36:30.540 --> 00:36:35.040
So in effect, the money
stolen by the Suharto family

00:36:35.040 --> 00:36:39.960
is being repaid by--

00:36:39.960 --> 00:36:41.245
By us, by the children.

00:36:44.120 --> 00:36:46.420
Every day, more
than $100 million

00:36:46.420 --> 00:36:49.580
is transferred in
debt repayments

00:36:49.580 --> 00:36:53.570
from the poorest countries
on Earth to the richest.

00:36:53.570 --> 00:36:55.855
It is a debt that can
never be paid back.

00:37:02.440 --> 00:37:04.900
The poverty of
families like this

00:37:04.900 --> 00:37:08.430
is compounded by
Indonesia's huge debt.

00:37:08.430 --> 00:37:11.350
The conditions of
the IMF's latest loan

00:37:11.350 --> 00:37:16.040
include a reduction in subsidies
on certain fuel and food.

00:37:16.040 --> 00:37:20.050
Half this man's monthly
wage of less than 40 pounds

00:37:20.050 --> 00:37:22.645
goes to medical treatment
for his children,

00:37:22.645 --> 00:37:26.040
who suffer from a
serious blood disorder.

00:37:26.040 --> 00:37:30.510
As prices go up, he cannot even
afford the special drugs that

00:37:30.510 --> 00:37:31.210
keep them alive.

00:39:04.140 --> 00:39:07.530
In the global economy,
one American corporation

00:39:07.530 --> 00:39:10.940
dominates the world
trade in food grains,

00:39:10.940 --> 00:39:14.970
while almost half the world's
population, like this family,

00:39:14.970 --> 00:39:17.665
attempt to live on
less than $2 a day.

00:39:30.280 --> 00:39:32.640
What you say to those
17 million people

00:39:32.640 --> 00:39:36.080
who call for a complete,
and I mean complete,

00:39:36.080 --> 00:39:39.380
cancellation of
debt as the only way

00:39:39.380 --> 00:39:42.810
to lift the huge
number of poor people

00:39:42.810 --> 00:39:45.780
in the world out of poverty?

00:39:45.780 --> 00:39:48.580
I'd say two things.

00:39:48.580 --> 00:39:51.820
First, what will lift
people out of poverty

00:39:51.820 --> 00:39:54.880
is not canceling their
debt, but what policies

00:39:54.880 --> 00:39:55.960
their countries pursue.

00:39:55.960 --> 00:39:58.520
Whether they
educate poor people.

00:39:58.520 --> 00:40:00.650
Whether they give them health.

00:40:00.650 --> 00:40:03.740
And so the question-- and
then what sort of economies

00:40:03.740 --> 00:40:04.510
they try to run.

00:40:04.510 --> 00:40:07.020
Do they integrate them
into the world economy,

00:40:07.020 --> 00:40:09.060
or do they run
corrupt economies?

00:40:09.060 --> 00:40:11.690
Those are the
primary determinants

00:40:11.690 --> 00:40:13.810
of how well countries will do.

00:40:13.810 --> 00:40:18.250
That is the answer to what
determines whether people

00:40:18.250 --> 00:40:19.500
get out of poverty.

00:40:19.500 --> 00:40:20.490
It can be done.

00:40:20.490 --> 00:40:21.660
It has been done.

00:40:21.660 --> 00:40:24.200
Should we cancel the debt?

00:40:24.200 --> 00:40:26.730
Cancelling debt is one
way of giving resources

00:40:26.730 --> 00:40:28.720
to poor countries.

00:40:28.720 --> 00:40:30.800
What I'd like to see
is a much greater flow

00:40:30.800 --> 00:40:32.590
of resources to poor countries.

00:40:32.590 --> 00:40:35.210
I'd like to see the markets of
the industrialized countries

00:40:35.210 --> 00:40:37.530
opened, so that
these countries where

00:40:37.530 --> 00:40:41.680
people are poor and can produce
agriculture are able to export.

00:40:41.680 --> 00:40:43.810
That's what will get
them out of poverty.

00:40:43.810 --> 00:40:45.520
The statement that
debt relief is

00:40:45.520 --> 00:40:48.690
the only thing that will get
them out of poverty is wrong.

00:40:48.690 --> 00:40:52.160
It would help, provided
it is accompanied

00:40:52.160 --> 00:40:53.850
by a whole set of
other measures.

00:40:53.850 --> 00:40:57.380
But surely debt, even in
one's own life and especially

00:40:57.380 --> 00:41:03.520
a poor person's life, is the
greatest cause of real poverty.

00:41:03.520 --> 00:41:04.310
No.

00:41:04.310 --> 00:41:10.680
And when you have a country
devoting half its budget

00:41:10.680 --> 00:41:13.180
to paying off a debt,
when you have the poorest

00:41:13.180 --> 00:41:15.920
countries in the world sending
out millions of dollars

00:41:15.920 --> 00:41:23.560
into the rich world,
surely, as a priority,

00:41:23.560 --> 00:41:25.930
that debt has to be either
relieved substantially

00:41:25.930 --> 00:41:27.770
or go altogether.

00:41:27.770 --> 00:41:29.510
It just seems
common sense to me.

00:41:29.510 --> 00:41:30.540
Have I got that wrong?

00:41:30.540 --> 00:41:32.520
Yeah, you've got it wrong.

00:41:32.520 --> 00:41:34.710
Let me explain.

00:41:34.710 --> 00:41:38.380
First of all, you are
indebted, and I am indebted.

00:41:38.380 --> 00:41:41.290
And I would not be better off
if somebody came and cancelled

00:41:41.290 --> 00:41:44.290
my debt because I'd never
be able to borrow again.

00:41:44.290 --> 00:41:47.350
And debt is a normal way
of borrowing in order

00:41:47.350 --> 00:41:51.650
to do things-- purchase
goods, invest-- when

00:41:51.650 --> 00:41:52.940
you don't have the resources.

00:41:52.940 --> 00:41:55.600
And they'll generate an
income, and you'll repay.

00:41:55.600 --> 00:41:58.040
The notion that all debt should
be cancelled is a bad one.

00:41:58.040 --> 00:42:04.190
Financial systems operate on
the basis of debt that is paid.

00:42:04.190 --> 00:42:06.350
Human Rights Commission
of the United Nations

00:42:06.350 --> 00:42:08.470
in a very comprehensive
report said,

00:42:08.470 --> 00:42:11.110
and I quote, "The
institutions of globalization

00:42:11.110 --> 00:42:14.510
have yet to seriously address
the issue of human rights

00:42:14.510 --> 00:42:16.920
in a democratic fashion."

00:42:16.920 --> 00:42:22.020
Globalization has caused
global conditions of inequality

00:42:22.020 --> 00:42:23.860
and discrimination.

00:42:23.860 --> 00:42:27.240
What's your response to that?

00:42:27.240 --> 00:42:31.480
I simply can't respond
because I have no idea what

00:42:31.480 --> 00:42:33.290
evidence they're referring to.

00:42:33.290 --> 00:42:36.625
Human globalization has
caused discrimination?

00:42:36.625 --> 00:42:37.125
Yes.

00:42:37.125 --> 00:42:38.700
I thought it was the opposite.

00:42:38.700 --> 00:42:39.658
I'd have thought that--

00:42:39.658 --> 00:42:40.240
No.

00:42:40.240 --> 00:42:42.360
For instance, they
singled out workers

00:42:42.360 --> 00:42:45.700
in Third World economic
processing zones, again

00:42:45.700 --> 00:42:49.000
part of a prescription--
it may not

00:42:49.000 --> 00:42:51.790
be IMF prescription,
but certainly

00:42:51.790 --> 00:42:55.510
part of the global
prescription--

00:42:55.510 --> 00:43:00.910
in which it said these workers
were prey for exploitation.

00:43:00.910 --> 00:43:03.500
And because unemployment--
for instance,

00:43:03.500 --> 00:43:07.070
they mentioned Indonesia--
had been forced down

00:43:07.070 --> 00:43:11.270
by the so-called economic
crisis of the late '90s,

00:43:11.270 --> 00:43:14.040
their human rights were lost.

00:43:14.040 --> 00:43:17.600
Indonesia grew as a
result of integrating

00:43:17.600 --> 00:43:21.260
into the global economy
from the '60s on.

00:43:21.260 --> 00:43:23.890
And incomes in Indonesia rose.

00:43:23.890 --> 00:43:25.400
It was a dictatorship.

00:43:25.400 --> 00:43:28.370
Some of their rights
were suppressed.

00:43:28.370 --> 00:43:30.332
And it was a very
bad dictatorship.

00:43:30.332 --> 00:43:31.290
Excuse me, Mr. Fischer.

00:43:31.290 --> 00:43:34.210
As you say, some of their
rights were repressed.

00:43:34.210 --> 00:43:36.660
A third of the
population of East Timor

00:43:36.660 --> 00:43:39.720
died or were killed
under the Suharto regime.

00:43:39.720 --> 00:43:41.960
What are you asking
me that question for?

00:43:41.960 --> 00:43:44.120
Do you think we supported
the Suharto regime?

00:43:44.120 --> 00:43:45.340
Don't be ridiculous.

00:43:45.340 --> 00:43:47.930
Did you speak out against it?

00:43:47.930 --> 00:43:51.190
Did your institution,
the IMF, speak out?

00:43:51.190 --> 00:43:52.550
The World Bank didn't.

00:43:52.550 --> 00:43:55.510
The first time after 30 odd
years-- and the first time

00:43:55.510 --> 00:43:56.950
they spoke out was 1998.

00:43:56.950 --> 00:43:58.680
What did the IMF say about it?

00:43:58.680 --> 00:44:01.240
When the IMF went
into Indonesia,

00:44:01.240 --> 00:44:06.470
it insisted on the removal of
a host of corrupt practices

00:44:06.470 --> 00:44:09.030
that began to
weaken that regime.

00:44:09.030 --> 00:44:10.880
It was not an
intended consequence,

00:44:10.880 --> 00:44:15.030
but it was intended that
we went in and helped

00:44:15.030 --> 00:44:18.570
remove the corrupt practices
in a variety of monopoly areas.

00:44:26.430 --> 00:44:30.595
Because now the government
is recommended by the IMF,

00:44:30.595 --> 00:44:33.640
it has already cut off
a lot of subsidies.

00:44:33.640 --> 00:44:37.930
Not only oil and electricity,
but also water, and education,

00:44:37.930 --> 00:44:41.490
and subsidies in agriculture.

00:44:41.490 --> 00:44:45.820
So it means that the workers,
if they have sons or daughters,

00:44:45.820 --> 00:44:51.110
they have to pay more
if they want to put

00:44:51.110 --> 00:44:52.610
their children in school.

00:44:55.360 --> 00:45:00.340
Before, of course, people
ate three meals a day.

00:45:00.340 --> 00:45:03.800
But now, they have to
also make efficiency.

00:45:06.660 --> 00:45:12.510
So they eat-- instead of
three, they eat twice a day.

00:45:12.510 --> 00:45:19.300
Or they reduce the
quality of the food.

00:45:19.300 --> 00:45:21.225
So that's why maybe the
level of productivity

00:45:21.225 --> 00:45:24.820
is getting lower because people
are getting poorer and getting

00:45:24.820 --> 00:45:25.320
tired.

00:45:25.320 --> 00:45:27.390
And if you are tired,
you cannot work properly.

00:45:30.688 --> 00:45:35.125
[MUSIC BOB DYLAN, "UNION
SUNDOWN"]

00:45:57.820 --> 00:46:00.140
Two years ago,
thousands of protesters

00:46:00.140 --> 00:46:02.490
from all over the
world converged

00:46:02.490 --> 00:46:05.700
on the American city of
Seattle, where the World Trade

00:46:05.700 --> 00:46:08.240
Organization was meeting.

00:46:08.240 --> 00:46:11.220
This was news because
it happened in America.

00:46:15.360 --> 00:46:18.780
And yet throughout the world
in Africa, Latin America,

00:46:18.780 --> 00:46:22.450
and Asia, a deeper movement
against globalization

00:46:22.450 --> 00:46:24.910
has been growing for years.

00:46:24.910 --> 00:46:28.950
But this is not considered news.

00:46:28.950 --> 00:46:31.970
On every continent,
millions of ordinary people

00:46:31.970 --> 00:46:36.590
have protested against the power
of the IMF and the World Bank

00:46:36.590 --> 00:46:39.660
and the imposition
of Western power.

00:46:39.660 --> 00:46:41.410
People have marched
and petitioned

00:46:41.410 --> 00:46:45.890
against privatization, against
selling off their water,

00:46:45.890 --> 00:46:49.160
against turning their farms
into suppliers for the dinner

00:46:49.160 --> 00:46:52.200
tables of the rich.

00:46:52.200 --> 00:46:56.410
Now the protests have spread to
Western countries, from Seattle

00:46:56.410 --> 00:46:58.835
to Melbourne, London to Genoa.

00:47:01.990 --> 00:47:05.120
The coverage of these
events follows a pattern.

00:47:05.120 --> 00:47:08.260
It seems it's only news
when there's violence,

00:47:08.260 --> 00:47:12.140
even when the great majority
of the protest is peaceful.

00:47:12.140 --> 00:47:14.855
In contrast, the violence
of the economic policies

00:47:14.855 --> 00:47:19.590
they are protesting
about is seldom news.

00:47:19.590 --> 00:47:23.110
In the weeks and days leading
up to May Day in London,

00:47:23.110 --> 00:47:26.180
the police and the government
orchestrated a propaganda

00:47:26.180 --> 00:47:28.990
campaign.

00:47:28.990 --> 00:47:31.590
The aim clearly was
to alienate the public

00:47:31.590 --> 00:47:35.050
from the demonstrators by
representing them collectively

00:47:35.050 --> 00:47:38.450
as violent and by suppressing
the very issues that

00:47:38.450 --> 00:47:41.240
have public support.

00:47:41.240 --> 00:47:43.780
The limits of
tolerance are passed

00:47:43.780 --> 00:47:48.530
when protesters, in the
name some spurious cause,

00:47:48.530 --> 00:47:52.090
seek to inflict fear, terror,
violence, and criminal damage

00:47:52.090 --> 00:47:54.760
on our people and property.

00:47:54.760 --> 00:47:58.640
To Tony Blair, the rich
getting richer and the poor

00:47:58.640 --> 00:48:01.493
getting poorer is
a spurious cause.

00:48:04.200 --> 00:48:07.530
And when May Day
came, 6,000 police

00:48:07.530 --> 00:48:14.390
turned part of London's West
End into a giant detention camp.

00:48:14.390 --> 00:48:18.240
I think the issue of violence,
which we are constantly asked

00:48:18.240 --> 00:48:20.990
about, is our main way in.

00:48:20.990 --> 00:48:23.050
I think the key to
these things is actually

00:48:23.050 --> 00:48:26.840
getting mass amounts of people
involved because the media will

00:48:26.840 --> 00:48:29.510
put one point of view
across time and time again,

00:48:29.510 --> 00:48:31.660
the mindless hooligan side.

00:48:31.660 --> 00:48:35.390
But when you think about the
mass redundancies, the poverty,

00:48:35.390 --> 00:48:38.200
the starvation,
the literal raping

00:48:38.200 --> 00:48:42.800
of a country through Third
World debt and what have you.

00:48:42.800 --> 00:48:44.520
That is violence
on a huge scale.

00:48:44.520 --> 00:48:45.105
It's genocide.

00:48:50.200 --> 00:48:53.990
The newest ruler of the world
is the World Trade Organization

00:48:53.990 --> 00:48:55.820
based in Geneva.

00:48:55.820 --> 00:49:00.530
The Economist magazine calls
it an embryo world government.

00:49:00.530 --> 00:49:02.550
And had no one has voted for it.

00:49:05.070 --> 00:49:08.840
The effect of its policies
make it illegal for governments

00:49:08.840 --> 00:49:12.010
to hinder the profits
of big business.

00:49:12.010 --> 00:49:15.110
This is known as free trade.

00:49:15.110 --> 00:49:17.110
If there's one feature
about the global economy,

00:49:17.110 --> 00:49:19.720
it's that companies
have globalized,

00:49:19.720 --> 00:49:22.880
but we have regulated
the global companies.

00:49:22.880 --> 00:49:24.720
And that's the
change that we've got

00:49:24.720 --> 00:49:26.860
to put into this
international system

00:49:26.860 --> 00:49:29.470
if we ever going to get
rules that are fairest

00:49:29.470 --> 00:49:31.380
to workers, fairer
to the world's poor,

00:49:31.380 --> 00:49:34.320
fairer to all of
those who are affected

00:49:34.320 --> 00:49:37.680
by this international
production system.

00:49:37.680 --> 00:49:39.300
People can't stand by.

00:49:39.300 --> 00:49:41.450
They can't be
spectators when we're

00:49:41.450 --> 00:49:43.680
faced with forces like this.

00:49:43.680 --> 00:49:45.610
They join this movement,
and the movement

00:49:45.610 --> 00:49:47.800
starts to gather momentum.

00:49:47.800 --> 00:49:50.990
Already, we've had some
extraordinary successes.

00:49:50.990 --> 00:49:54.530
We managed to stop
the implementation

00:49:54.530 --> 00:49:58.050
of a crazy idea called
the Multilateral

00:49:58.050 --> 00:50:00.890
Agreement on Investment which
would have allowed corporations

00:50:00.890 --> 00:50:04.200
to sue governments for the
removal of any law which they

00:50:04.200 --> 00:50:05.240
didn't like.

00:50:05.240 --> 00:50:07.700
Now that was being
promoted, that idea,

00:50:07.700 --> 00:50:10.760
by the 29 most powerful
countries on Earth.

00:50:10.760 --> 00:50:13.800
It was being promoted by
all the major multinational

00:50:13.800 --> 00:50:16.360
corporations and all
the big institutions,

00:50:16.360 --> 00:50:18.490
such as the World
Trade Organization.

00:50:18.490 --> 00:50:21.950
And a ragged band of
dissenters around the world

00:50:21.950 --> 00:50:23.240
managed to stop it.

00:50:23.240 --> 00:50:24.740
We beat them.

00:50:24.740 --> 00:50:27.840
And if we can beat that,
we can beat anything.

00:50:27.840 --> 00:50:29.760
What is with the
people is the fact

00:50:29.760 --> 00:50:33.090
that the corporations
and the superpowers

00:50:33.090 --> 00:50:38.070
are using more and more
fabricated propaganda.

00:50:38.070 --> 00:50:40.030
People can now see
through the spin.

00:50:40.030 --> 00:50:43.660
People know they cannot
believe anymore what is said.

00:50:43.660 --> 00:50:47.720
And the people are starting
to control their support.

00:50:47.720 --> 00:50:50.930
They're starting to
say, a government that

00:50:50.930 --> 00:50:54.890
only protects Pepsi, and
Coke, and McDonald's is not

00:50:54.890 --> 00:50:56.840
our government.

00:50:56.840 --> 00:51:00.050
In rich countries like
Britain, globalization

00:51:00.050 --> 00:51:03.220
is well advanced-- the
disastrous selling off

00:51:03.220 --> 00:51:07.410
of the railways and the creeping
privatization of everything

00:51:07.410 --> 00:51:12.280
from health care to
air traffic control.

00:51:12.280 --> 00:51:16.890
The financial pages
celebrate a booming economy.

00:51:16.890 --> 00:51:22.890
Yet one in five British
children grows up in poverty.

00:51:22.890 --> 00:51:26.155
More than 10 million
Britons live in poverty.

00:51:29.950 --> 00:51:32.820
And this is said to
be a spurious cause.

00:51:37.820 --> 00:51:40.760
All over the world,
millions of ordinary people

00:51:40.760 --> 00:51:44.070
are asking why they have
no say in decisions that

00:51:44.070 --> 00:51:46.550
bring hardship to their lives.

00:51:46.550 --> 00:51:49.390
They don't accept the view
of President Bush and Prime

00:51:49.390 --> 00:51:52.490
Minister Blair that
there's no other way.

00:51:52.490 --> 00:51:55.890
In Britain, the fact that
only 25% of the electorate

00:51:55.890 --> 00:52:00.450
voted for the Blair government
is part of this great unease.

00:52:00.450 --> 00:52:02.950
Why, people ask,
should we accept

00:52:02.950 --> 00:52:05.910
a system of winners and
losers, a system that

00:52:05.910 --> 00:52:09.260
puts a dollar sign on every
public service and almost

00:52:09.260 --> 00:52:11.320
every human value?

00:52:11.320 --> 00:52:14.410
Why not abolish the
World Bank, and the IMF,

00:52:14.410 --> 00:52:17.700
and the World Trade
Organization and replace them

00:52:17.700 --> 00:52:21.110
with genuine trade and
development institutions that

00:52:21.110 --> 00:52:23.550
are democratically accountable?

00:52:23.550 --> 00:52:28.360
And why not cancel a debt that
condemns nations like Indonesia

00:52:28.360 --> 00:52:31.120
to poverty and disease?

00:52:31.120 --> 00:52:33.160
These are dangerous times.

00:52:33.160 --> 00:52:35.050
The one superpower
left in the world

00:52:35.050 --> 00:52:37.610
has made its ambitions clear.

00:52:37.610 --> 00:52:41.240
This is a document of the
United States Space Command.

00:52:41.240 --> 00:52:44.590
It says, "The globalization
of the world economy

00:52:44.590 --> 00:52:49.260
will continue, with a widening
between haves and have-nots."

00:52:49.260 --> 00:52:51.220
It says, "Only
military dominance

00:52:51.220 --> 00:52:55.260
will protect America's
commercial interests."

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Why should we accept this?

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Why should our children
have to face these divisions

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and dangers?

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None of them is God given.

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All of them can be changed.