Globalization or Monopolization?

– Ignacio W Loor-Colamarco, MIBA-Economist

Globalization or Monopolization?
It is ordinary in Latin-American countries the misuse and harmful propaganda for the term
“globalization”, which is generally associated to neoliberal systems and ideologies, and therefore
assumed to have “lethal consequences” to our fragile economic structures. This fallacy has brought to
my mind the sensation of a compromised connection between the few monopolistic structures and the
opinion leaders in the region.

Let us start by defining the term “globalization”. It can be interpreted as the resulting condition of the
vast development in information and transportation technology. In fact, globalization is the result of
internet; cable TV; fiber-optic tech; broad band; faster and more efficient airplanes, trucks, and ships;
automated ports; logistics improvements that allow a mail to be on the other side of the world in as
little as 48 hours; faster computers; CNN; and a set of other tools to facilitate communication among
individuals throughout the world.

After making clear what globalization is about; our governments, business people, ONGs, and whoever
has a sort of bargaining power, should focus then on finding solutions and means to develop our nations
given the presence of this inescapable phenomenon.

These solutions are absolutely based on good will and solidarity FIRST, and on the technical aspects
then. Policies such as incentives to create start-up companies, formalize informal sectors, fiscal credits,
investment on new-age technology infrastructure such as optical fiber, are just a few fundamental
tactics that “responsible” countries, despite of their ideologies, have turned into reality to face this
times of constant changes.

The real fear that the so-called “anti-globalization” crowds shout seems to be the foreign
monopolization; but, in fact, monopolies and oligopolies have existed for a long time today in Latin
American nations. Our protectionist laws have undoubtly been a major barrier for the monopolies to
adapt to the new technologies challenges, and for the emergence of new entrepreneurs. My question is
then, who do the globalization opposers care for?

The problem is not the disjunctive of getting or not globalized, because the world is already globalized;
the problem is if nations should or not preserve the characteristic of “old-fashioned states”, with
protectionist laws and barriers that will keep enriching just a few favored enterprises. Or; if we engage
in a free-market economy, where both, new enterprises and foreign investors would compete against
our old monopolies and ultimately, demand and supply forces would lead the economy.

The unquestionable reality is that there should be a spot in the gray area where we all, large companies
and emerging enterprises and workers, can develop ourselves lawfully; in order to place ourselves on
the “spot”, it is essential beforehand, to harmonize the interests and goals of all segments of the civil
society.

NOTE: This document is a translation of the document: ¿Globalización o Monopolización? Published on “El
Diario” (newspaper from Portoviejo – Ecuador) on February 17th, 2006

ignacio.loor@gmail.com | Portoviejo – Ecuador