Dear Friends,

This book's author (J.W. Smith) and reviewer (William Kotke) are both
smart
friends of mine. (In fact, I'm happy to report that I introduced them,
and
they've subsequently collaborated on projects.) J.W.'s new book gives
an
updated ecological and economic re-interpretation of industrial /
capitalist
history and the free trade/New World Order elites that presently
control
society. As is suggested by Bill (who himself is the author of The
Final
Empire), Economic Democracy is the sort of historical reference tome
you
might ask your local library to acquire.  --  Christine Vida, Berkeley



BOOK REVIEW

Economic Democracy: The Political Struggle of the Twenty-first
Century. J.W.
Smith. M.E. Sharpe, pub. 2000. 380 p. $99.00. (Ask your library to
order a
copy).

THE HIDDEN HISTORY OF THE ORIGINS OF THE WTO

This significant new text is destined to become a handbook for those
who are
becoming awakened to the new planetary economic order. This book will
also
be a tremendous resource for anyone wanting to understand the history
and
present realities of the economic power relationships of world
society.

Smith traces the origins of the ownership and control of industrial
society
to its beginnings in medieval European society. When the elites within
medieval city-states began to create rustic technology in such
industries as
cloth making they had to go to their countryside to get the raw
materials
such as wool. They also needed to sell their products for profit
within the
city and enough back to the countryside to pay for those resources. As
Smith
describes, the peasants in the countryside observed this rudimentary
technology in the city and began to duplicate it. To maintain their
profits
and economic power, the elites sent their military forces to the
countryside
and destroyed the peasants' machinery, militarily forcing the
countryside to
provide raw materials and become a captive market for manufactured
products.
The elites, to maintain their profits and economic power made a
military res
ponse. The military force went to the countryside and destroyed the
peasants' machinery and militarily enforced the pattern of the
countryside
providing raw materials and becoming a forced market.

Centuries later we see Gandhi in India always sitting with a spinning
wheel
as protest against the British Empire that ruled the land. Although
India
had previously produced some of the finest cloth in the world, Britain
prohibited the production of cloth in India in order to funnel the
wealth
spent for cloth to the mills in the imperial center.

Many years later we see the IMF and World Bank force Third World
countries
to "privatize" their publicly owned utilities and such and sell the
facilities off to the transnational corporations and banks of the
imperial
center.

There has been no change in the mechanism of economic power.

Smith focuses on the aspect of unequal trades. This is the mechanism
that
funnels the wealth to those in control. Smith also examines the
changing
strategies of military control of empire and exposes the fact that
monopolies are still alive and well. In olden times the mounted troops
simply came and destroyed the peasants' looms. Now we have control of
money
through the international banks and the control of ideas through
intellectual property rights and patents guaranteed by the WTO and
backed by
worldwide military force.

All of this is done with the acquiescence of the mass populations
unaware
that monopolies, which deny the masses their full rights, are
structured
within capitalism's laws. Smith does an excellent and scholarly job of
documenting how these monopolies are hidden through a continual
refinement
of imposed "Social Control Belief Systems." He shows how the British
imperial elite took the work of Adam Smith and twisted it to further
hide
the very monopolies that Adam Smith had argued against and deplored!
While
the Wizard of Oz in the background used covert operations, military
force,
and various forms of colonialism, they held out the myth of the "free
market" to the eyes of the masses: "No one is in control, economic
events
and consequences are simply the work of the free market working itself
out
for all of our benefit!"

The U.S. is 5% of the world population and sucks up 48% of world
resources
each year. Their military budget is larger this year than the next
nine
countries behind them - combined. The U.S. keeps military troops
stationed
in over 100 countries in the world. Are we to believe that this is not
a
military and economic empire held in place by force? Of course not!

This economic elite is so concentrated that it owns the U.S.
government.
Notice how quickly all involved stepped up to pass NAFTA. (This "free
trade"
document is more than 1,000 pages of "rules"). One half of one per
cent of
the U.S. population owns wealth equal to the bottom 80%. The
activities of
those in power are not for our benefit.

According to studies of the United Nations Development Program, the
assets
of the top three world billionaires are more than the combined GNP of
all 48
least developed countries and their 600 million people. A yearly
contribution of 1% of the wealth of the 200 richest people in the
world
could provide universal access to primary education for all.

As Smith demonstrates in his voluminous scholarly documentation, this
is not
a matter of "economics" carrying all of those emotionally laden words,
it is
a matter of massive social institutions of whatever label, that own
and
control the lives of the worlds' people. This power of the planetary
economic elite is now projected over and above government's -by the
WTO and
all of its institutional appendages. No one on the planet has ever
voted in
a democratic election to militarily control the world and have the WTO
run
it!

Solutions


Smith's scholarly study goes on to point out solutions that we can use
in
the future. There is enough, he points out. Smith states that $17
trillion
(1990 dollars) has been spent on arms since World War II. ".[T]hat is
five
times enough to have industrialized the developing world to a
sustainable
level over the past forty-five years," he says. "The $3.15 trillion
needed
for developing world industries would have left $13.85 trillion to
provide
training to run the machines and society; to install initial
communications
infrastructure to reach the populations with that training (including
population control); to guarantee food until a country was able to
produce
its own; to search for, catalog, and develop, resources; and for
environmental protection."

In this scholarly study Smith points to the actual ability of society
to
produce the adequate needs of all. The presently imposed belief
system, as
Smith describes, would have us believe there is scarcity. At the same
time,
the miniscule group at the top says there is not enough for schools,
they
allocate whatever is needed for the vast structure of economic and
military
warfare that they are carrying out.

In a number of chapters of elaborate description, Smith shows how the
productive force of society could be easily directed toward adequate
standards of living that also guarantee protection of the environment.
This
is a great value of his work -to provide a vision of how easily it
could be
done and to provide an image that can shine through the fog of
propaganda
generated by the tiny but powerful world economic elite.



1,132 Words

K�[EMAIL PROTECTED]




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