Editor’s note: Globalization is the process of increasing global integration between countries and regions. This increased connectivity is largely driven by trade. Enabled by the explosion of fossil fuel use over the past 150 years, global trade networks have opened up previously inaccessible natural communities (“ecosystems”) to market pressure, which has vastly accelerated the ecological crisis.
Globalization is an atrocity for the living planet. Today, forests in the southeastern United States are ground into pellets and sent to Europe to be burned in “green” power plants. Mineral ores are ripped from the ground in South America and shipped to processing plants and factories in Southeast Asia. Nigerian oil fills Delhi streets with smog. And factories around the world produce endless streams of consumer goods to fill homes that have tripled in size over the last 50 years.
As the Zapatista National Liberation Army (EZLN) has stated, ““The neoliberal globalization of capitalism is based on exploitation, plunder, contempt and repression for those who resist it — in other words, the same as before, only now globalized.” And meanwhile, every indicator of ecological health—greenhouse gas emissions, oceanic dead zones, species extinctions, plastics in the ocean, overpopulation, urban sprawl, etc.—is heading in the wrong direction.
The following article focuses mainly on the human impacts of globalization, which are brutal and feed inequality. As the then-Prime Minister of Jamaica said in 1977, “We are condemned to poverty by the nature of the exchange. There is nowhere else to go except down.”
It is perhaps a wonder that it was not until experiencing the fallout from a global pandemic, that most Americans were forced to read or hear the words ‘supply chain’ or ‘logistics.’ Surprising both because it is on these things that the basic essentials of modern life are dependent and because of the revolutionary changes in these arenas over the past generation. Yet with COVID still haunting the global economy, as of this writing China is only just emerging from the largest COVID lockdown since Wuhan, and with inflation at the highest it’s been in decades, uncertainty about supply chains lingers.
Over the past twelve months this uncertainty has assumed many forms. There have been reports of shutdowns of factories in Asia, with workers reluctant to return to their jobs, ships backed up by the dozen at American ports, a shortage of truck drivers, and exploding wealth for the likes of Jeff Bezos. Obviously, the immediate trigger to the crisis would appear to be a mix of COVID and as a result Americans greatly increasing their online shopping. According to U.S. Census Bureau data, e-commerce sales jumped nearly 32 percent in 2020, and 50.5 percent since 2019. Overall, online sales now account for 19 percent of retail. Given the $400 billion in government stimulus and much of the outdoor service economy locked down (i.e. restaurants, movies, sports events, etc.), Americans spent nearly $1 trillion more in goods in 2021 compared to pre-pandemic times. Hard to see any supply chain not getting strained. Still, in May 2022 only 11 percent of shipments from Asia arrived in North America on time, down from 59 percent in May 2020.
By the end of 2021 the cost of shipping from Asia to the west coast of the U.S. had risen 330 percent in one year. According to the Freightos Baltic Index, as of June 22ndthe average global price to ship a 40-foot container was $7261, down from a peak of over $11,000 in September 2021, but still five times higher than before the pandemic. The United Nations Conference on Trade and Development (UNCTAD) estimated that higher shipping rates during the lockdown raised the inflation rate by 1.5 percent.
Step back further though and a fuller picture emerges, one featuring globalization, exploitation, and deindustrialization. It is no secret that the U.S. has lost millions of manufacturing jobs over the past generation- about 7.5 million since 1980. While automation has been a big factor in the decline, so has outsourcing and subcontracting. From 1970 to 2010 the number of manufacturing jobs in East Asia more than tripled from 31 million to 97 million. In the decade from 1997 to 2007 value of East Asian exports increased from $269 billion to nearly $1.5 trillion. Of course, the emergence of China as the world’s factory played a vital role. Foreign direct investment into China increased from $57 million in 1980 to $114.7 billion in 2010. Imports from China reached $506 billion in 2021 (with $151 billion in exports headed the other way, a trade deficit of $355 billion). Imports from Vietnam have also exploded over the past two decades. In 2020, Vietnam was the 6th largest supplier of U.S. imports, up 21.2 percent from just 2019, and 436 percent from 2010. In a way, Vietnam has been the winner of the U.S. trade war with China. The U.S. trade deficit with Vietnam exploded nearly threefold to $90 billion since 2018 (as for the effectiveness of the U.S. tariffs: a good amount of the exports from Vietnam originate in Chinese-owned factories). Indonesia imports are up 23 percent since 2010.
Nothing exemplifies the supply chain crisis quite like the sight of cargo ships backed up by the dozens outside the Ports of Los Angeles and Long Beach. Containerships transport 90 percent of global trade and these two ports handle about 40 percent of U.S. imports. A ship from China takes 15-20 day journey to an American port. The process of turning a ship around from China to the U.S. typically takes around 60 days. The process is supposed to be timed for maximum efficiency, one ship in, one out. COVID fouled up the system. At peak chaos there were over 100 ships waiting to dock. If all the waiting containers had been laid out the line would actually have stretched from Los Angeles to Chicago. The turnover time increased to 100 days. Biden eventually ordered the ports to work 24/7 and some ships were diverted to other ports. Ships waiting outside the LA ports fell by half by the beginning of 2022, though this spring a dozen plus ships were often backed up at ports around the U.S. As of May nearly 20 percent of container vessels globally were still waiting outside congested ports, including hundreds in China.
In a perfectly surreal example of built-in absurdity, the price hike made a trip from Asia to the U.S. 20 times more expensive than a trip going the other way. Therefore through the pandemic there were reports of ships returning to Asia with many of their containers empty. The shippers have been rejecting U.S. agricultural exports. It is more profitable to simply return to Asia and refill there rather than wait for food to be loaded and carried back. This past holiday season, some of the largest U.S. retailers were chartering their own, smaller ships to get around the backlog, docking at smaller ports around the country. Of course, this option was beyond the great majority of U.S. businesses.
If such a picture brings to mind any notions of incompetence or inefficiency, from the perspective of the shipping industry these can be quickly cast aside. In 2021 global shipping earnings equaled the entire industry’s earnings from the previous decade. Last November, the Wall Street Journal ran an article titled ‘For Investors in Shipping, Payoff at last.’ The opening lines read: ‘Global supply-chain bottlenecks are creating headaches for retailers, delays for consumers- and big gains for financial firms that invested in container ships before the pandemic upended the logistics business.’
The emergence of COVID has not been the only recent cause of disruption for the shipping supply chain. On March 23, 2021, the 20,124 TEU containership Ever Given ran aground in the Suez Cancel (TEU stands for Twenty-Foot Equivalent Unit, meaning the number of standardized 20-feet containers a ship can carry). The shortest shipping route between Europe and Asia, up to 15 percent of global trade passes through the Suez Canal, including a million barrels of oil a day and roughly 8 percent of the supply of liquefied natural gas. On a given day that means about 50 ships. With Ever Given wedged in the canal for a week, hundreds of ships were backed up in a 60-mile queue waiting to get through. All in all, an estimated $9.6 billion a day worth of trade was held up.
On March 15 2022, another ship owned by Evergreen Marine Corp, this one named Ever Forward, went aground in Chesapeake Bay. While this blockage did not stop traffic it took a month to free the ship. The ship CSCL Jupiter did hinder ship traffic when it ran aground for a day outside the port of Antwerp in 2017.
Given that navigational technology has improved in recent years ship groundings should be becoming less common. Yet there is the sheer size of the current ships. A few months after the Ever Given jam, the largest containership ever built, Ever Ace (another by the Evergreen Marine Corp), made its way through the Suez Canal in August 2021. Measuring just over 1300 feet (about the size of the Empire State Building) with a capacity of nearly 24,000 TEU (23,992 to be exact), Ever Ace took the title from the HMM Algeciras (23,964 TEU) which took its maiden voyage hardly a year earlier. Both ships are just part of expanding fleets of mega-ships of that size soon to be sailing.
For perspective, the largest ships today are 15 times what they were in the late 1960s around the time when containerization was standardized. The world’s first commercially successful container trip, Malcolm McLean’s coverted tanker, the Ideal-X, took 58 containers from New Jersey to Texas in 1956. When the ship Encounter Bay, one of the early fully cellular containerships, went into service in 1969 its capacity was 1578 TEUs. Even by the year 2000 ship capacity topped out at around 8000 TEUs. Then when the shipping company Maersk introduced its E-Series of ships in 2006, capacity reached around 15,000 TEUs, basically doubling the capacity of the previous largest ships. Since then over 130 ships have launched with a carrying capacity between 18,000 and 24,000 TEUs. In the past decade alone or so capacity has gone up 80 percent.
Here is where the deregulation comes in. As Matt Stroller described in a Substack piece, for most of the 20thcentury U.S. shipping law was based on the Shipping Act of 1916. The act granted shipping companies an exemption from anti-trust laws. They were allowed to form alliances with each other (something that continues today) where they would jointly set routes and prices. However there was a condition that all prices had to be public, service had to be offered on equal terms, and companies were not permitted to undermine competitors by offering volume discounts or under-the-table rebates. In addition to the Act, there were subsidies for shipbuilding and the Merchant Marine Act of 1920 (known as the Jones Act) which requires all ships carrying goods between two U.S. ports to be American-built, -owned, -crewed, and-flagged. The idea was to protect smaller companies and businesses against predatory moves of larger companies by giving bargaining power (hence the public prices). National security concerns wanted to keep American shipping strong. Stable prices take the edge off a boom-and-bust industry.
The system was tossed aside by the Ocean Shipping Reform Act of 1998. In a sense we were left the worst of all worlds: the anti-trust exemption was kept and the transparency was scrapped. Predictably, concentration in the industry exploded. Up to 60 of the 1000 largest ocean carriers have vanished since the early 2000s. Banks were only too eager to provide funding for the megaship arms-race. Shipping companies are good lending targets as valuable ships can simply be repossessed in the event of a default. Plus shipping often receives government subsidies.
In the midst of all this came the economic crash of 2008. The downturn meant there wasn’t enough freight to fill the growing ship capacity. With shipping prices at rock bottom the remaining large carriers formed alliances. The Top 10 shipping companies had 40 percent of the market in 1998. Today it is over 80 percent. All ten companies are part of one of the three company alliances that dominate the industry- 2M, Oceans Alliance, and The Alliance. The megaships also keep up a nice barrier to entry. New companies have a hard time breaking in with such upfront costs as a megaship. Infrastruture (railroads, ships, social media networks) tend to require a huge amount of investment to build, but not much to operate. This makes it inefficient for many companies to build competing networks. As a result it is often owned by the state of too-big-to-fail monopolies.
The larger the ship the more the shipping company is supposed to be able to squeeze out savings on construction, fuel, and staff. The larger the ships size to go with consolidation and alliance also give companies leverage over other parts of the system. This led to an arms race among the ports. Ports in Baltimore, Miami, and Norfolk began dredging projects to deepen their harbors. The Port Authority of New York and New Jersey spearheaded a project to raise the Bayonne Bridge 64 feet to accommodate larger ships. The project cost $1.7 billion. Such works are quite convenient for the carriers as they get almost all the savings while the ports, and the taxpayers that often contribute funding, foot the bill. As larger ships are unable to service as many ports as smaller ones, they lead increased concentration of terminal operators and therefore port traffic, one reason the Ports of Los Angeles and Long Beach handle so much traffic and are therefore prone to backups.
A few weeks ago, in the face of raising inflation, President Biden ranted about ‘foreigned owned’ shipping companies who raised their prices by ‘as much as 100 pecent.’ He chimed ‘Every now and then something you learned makes you viscerally angry.’ On June 16th, he signed the Ocean Shipping Reform Act of 2022. Legislation that breezes through Congress nowadays promises not to be too earthshattering. The act empowers the Federal Maritime Commission to limit ocean carriers refusing American and limit port fees. It is questionable how thoroughly it can be enforced.
Another facet to the shipping world is flags of convenience. For a fee ship owners can simply register their ships with a willing country. Countries without a nationality or residency requirement for ship registration are described as having open registry. This form of paper globalization works the same as other forms. The obvious goal is to take advantage of places with low wages and less regulation. Thus in 1960 the U.S. flag merchant fleet had almost 3000 ships. By 2019 the number was 182. Almost three-quarters of the worl’d fleet is now flagged under a country different from the ship owners. For a long time the places with the largest registries have been Panama, Liberia, and the Marshall Islands. In her book Ninety Percent of Everything, Rose George explains:
‘There are few industries as definitely opaque as shipping. Even offshore bankers have not developed a system as intricately elusive as the flag of convenience, under which ships can fly the flag of a state that has nothing to do with its owner, crew, or route.’
While the International Maritime Organization, a UN agency, has passed plenty of regulations since its inception, and the International Labor Organization (ILO) has adopted stadards for seafarers- the Maritime Labor Convention was ratified in 2006 by 80 countries and came into effect in 2013, the ocean has a tendancy to dissolve such paper. As with many things, the COVID pandemic brought the underbelly to light.
In September 2020, as 300,000 workers were stranded on ships, a Bloomberg report found dozens of labor violations. Of the 40 seafarers interviewed for the story, half didn’t have current contracts and others hadn’t been paid for months, meeting the ILO’s definition of forced labor. Shipping lines and staffing agencies (as in other industries such as meatpacking, shippers often outsource hiring to agencies), determine when and how workers return home, even holding their passports. In an industry rife with middlemen, including networks of owners, operators, and employmeny agencies, it is difficult to hold parties accountable.
By no means is shipping the only leg of the supply chain that is hellish for workers. In the U.S. when goods are unloaded from shipping containers they are moved onto truck beds. Trucks move around 70 percent of domestic goods, over ten billion tons of freight a year. Truck drivers’ wages have plummeted over the past four decades. If the adjusted average wage of a truck driver in 1980 was $110,000, by 2019 the trucker earned $45,000 a year- a decline of 60 percent. From there goods are often driven to warehouses. The turnover rate at Amazon warehouses can reach 150 percent a year. Buy commodities certified ‘Fair Trade’ as you will, just don’t assume such a concept applies to the workers that bring them to you.
That pollution is bad for our health will come as a surprise to no one. That pollution kills at least 9 million people every year might. This is 16 percent of all deaths worldwide – 3 times more than AIDS, tuberculosis and malaria combined, and 15 times more than all wars and other forms of violence. Air pollution alone is responsible for 6.5 million of these 9 million deaths. Nearly 92 percent of pollution-related deaths occur in low- and middle-income countries. All this is according to the Lancet Commission on Pollution and Health, a recent report by dozens of public health and medical experts from around the world. This important report is sounding the alarm about a too-often neglected and ignored “silent emergency”—or as author Rob Nixon calls it, “slow violence.”
In one media article about the report, the Lancet’s editor-in-chief and executive editor points to the structural economic forces of “industrialisation, urbanisation, and globalisation” as “drivers of pollution.” Unfortunately, however, the report itself doesn’t elaborate upon this crucial observation about root causes – in fact, when it moves from documentation of the pollution-health crisis to social-economic analysis, some of the report’s conclusions go seriously awry, espousing debunked “ecological modernization theory” and reinforcing a tired Eurocentric framing that paints the industrialized West in familiar “enlightened” colors, while the “developing” countries are portrayed as “backward.”
For example, one of the Commission’s co-chairs and lead authors Dr. Philip Landrigan (for whom I have the greatest respect for his pioneering work in environmental health), points out that since the US Clean Air Act was introduced in 1970, levels of six major pollutants in the US have fallen by 70 percent even as GDP has risen by 250 percent. According to fellow author Richard Fuller, this sort of trend proves that countries can have “consistent economic growth with low pollution.”
Coupled with the fact that about 92 percent of pollution-related deaths occur in low- and middle-income countries, this would indeed appear to validate one of the core doctrines of ecological modernization theory—”decoupling”—which posits that while pollution necessarily increases during the early “stages” of economic development, it ultimately plateaus once a certain level of wealth is achieved, whereupon it falls even as growth continues ever upward.
It is understandable why the Commission might want to package its message in this way: it makes an “economic” case for addressing pollution that is palatable to policymakers increasingly ensconced within an economistic worldview, one that is increasingly blind to non-economic values (including, apparently, the value of life itself – one would have hoped that 9 million deaths would be reason enough to take action against pollution). The economic costs of pollution, along with the apparent happy coexistence of economic growth and pollution reduction, are marshaled to challenge “the argument that pollution control kills jobs and stifles the economy.” This favorite bugbear of industry and big business is certainly spurious—forget about pollution control “killing jobs;” the absence of such control is killing millions of people every year!
But, as I showed in my previous blog post (Globalization Blowback), much of the rich countries’ pollution has been outsourced and offshored during the corporate globalization era. It is disingenuous at best to cite instances of local pollution reduction alongside increased economic growth in the rich world as evidence of decoupling, when those reductions were made possible only because of much larger pollution increases elsewhere. A global perspective—where true costs cannot be fobbed off on the poor and colonized—is necessary for gaining a meaningful and accurate picture of the relationship between wealth, growth, development and environmental integrity and sustainability. Panning out to this broader global perspective shows that, in fact, GDP growth and pollution continue to be closely coupled. And because a large percentage of the pollution in poorer countries is a consequence of corporate globalization, so is a large percentage of pollution-caused deaths.
Choking—and dying—on globalization
China’s export-oriented industrial spasm, powered largely by burning coal, has bequeathed it notoriously lethal air pollution, so much so that, according to one study, it contributes to the deaths of 1.6 million people per year (4,400 per day), or 17% of all deaths in the country. Another study puts the total at two-thirds of all deaths, and concluded that the severe air pollution has shortened life expectancy in China by more than 2 years on average, and by as much as 5.5 years in the north of the country.
Interestingly, some studies have actually calculated the number of globally dispersed premature deaths from transported air pollution and international trade. One such study found that deadly PM2.5 pollution (particulate matter of 2.5 micrometers or smaller) produced in China in 2007 was linked to more than 64,800 premature deaths in regions other than China, including more than 3,100 premature deaths in western Europe and the USA. At the same time—despite manufacturing- and pollution-offshoring—about 19,000 premature deaths occur in the US from domestically emitted pollution for the production of exports, 3,000 of which are linked to items exported to China.
But this is far less than what the Chinese are suffering because of consumption in the West. According to the study, “consumption in western Europe and the USA is linked to more than 108,600 premature deaths in China.” (Worldwide, pollution emitted for the production of goods and services consumed in the US alone caused 102,000 premature deaths; European consumption caused even more: 173,000 premature deaths). Note that the above fails to take into account the costs of various other air pollution-related chronic illnesses. And of course, air pollution isn’t the only harmful human cost of China’s coal-driven industrial growth and export-orientation. According to Chinese government statistics, some 6,027 Chinese coal miners died in the course of work in 2004, though analysts point out that official estimates are usually highly conservative, and “the real number is probably higher.” Since 2004, coal extraction has grown significantly in China.
Shipping
What about the transport of incomprehensible quantities of materials back and forth across the planet? Coal to China, commodities from China, waste back to China (the undisputed locus of global waste trade)—nearly all of it is done via oceanic shipping, which carries heavy ecological costs. The statistics on the scale and impact of the global shipping industry are arresting: a 2014 study found that ship traffic on the world’s oceans has increased 300 percent over the past 20 years, with most of this increase occurring in the last 10 years. According to one analysis, emissions from international shipping for 2012 were estimated to be 796 million tons of CO2 per year (or 90,868 tons per hour), more than the yearly emissions of the UK, Canada or Brazil. (An earlier study put the amount of annual emissions from the world’s merchant fleet at 1.12 billion tons of CO2.) Whatever the actual figure, shipping accounts for at least 3 to nearly 4.5 percent of global CO2 emissions.
Much worse, shipping contributes 18-30 percent of the world’s total NOx and 9 percent of its sulphur oxide (SOx) pollution. A single giant container ship can emit the same amount as 50 million cars: “just 15 of the world’s biggest ships may now emit as much pollution as all the world’s 760m cars.” By 2015, greenhouse gas emissions from shipping were 70 percent higher than in 1990, and, left unchecked, were projected to grow by up to 250 percent by 2050; this would make shipping responsible for 17 percent of global emissions. According to the University College London’s Energy Institute – whose astonishing ShipMap may be one of the best visualizations of globalization available—“China is the center of the shipping world; Shanghai alone moved 33 million units in 2012.”
And this is only maritime shipping. Air freight is even more pollution-intensive: though much less merchandise and material is moved by air, some estimates are that the relatively minor 1% of the world’s food traded by air may contribute upwards of 11 percent of CO2 emissions.
In sum, the toll of the global shipping industry makes the “death footprint” of globalization’s air pollution even larger. A 2007 study conservatively estimated that just the PM (particulate matter) emissions of global shipping—estimated at 1.6 million metric tons—kill 60,000 people per year, which the authors expected to increase 40 percent by 2012.
Conclusions
To point out the harms of global pollution outsourcing is emphatically not to argue that US corporations, for example, should simply return their outsourced production and pollution to the territorial US. This was the erstwhile “Trumpian” right-populist recipe. Under this ideology, the way to facilitate “insourcing” is not to insist on higher labor and environmental standards abroad, but to systematically dismantle the framework of laws in the US (however weak many of them already are thanks to corporate-captured government agencies)—that is, to bring the race to the bottom home. Whether generous tax cuts and other hand-outs will entice the outsourcers back remains to be seen: it’s becoming evident that the Trump/Koch brothers enterprise is about both eviscerating domestic environmental and labor laws, and accelerating global transnational corporate pillage—the worst of all worlds.
An anti-corporate, degrowth, eco-localization stance is the unequivocal opposite. Firstly, it rejects the broader ends and means of the entire consumerist, throw-away project. Rather than merely bringing the disposable extractive economy back home, localization is about reconnecting cause and effect and overthrowing irresponsible and unethical environmental load displacement on the global poor. Localization is about re-orienting the entire economy towards sufficiency and simplicity of consumption, towards needs-based, ecologically-sustainable and regenerative production, and towards fair, dignified and democratic work and production. By definition, localization connotes less dependence on external resources and globalized production chains that are controlled by global corporations and are congenitally undemocratic. Putting power into workers’ hands is to not have globally—outsourcing, hierarchically—owned and managed corporations, tout court.
Of course Dr. Landrigan is right that reducing pollution doesn’t “stifle the economy”—quite the contrary, if “the economy” is understood in a much more holistic sense than mere GDP. But, as has been pointed out previously on this blog (here and here), we also shouldn’t equate a healthy economy with a growing economy. The converse is more often the case. To reduce global pollution deaths, we not only need robust pollution control regulations, we must reduce corporate power, globalization, and the scale of the economy as well.
Alex Jensen is a Researcher and Project Coordinator at Local Futures. He has worked in the US and India, where he co-ordinated Local Futures’ Ladakh Project from 2004-2015. He has also been an associate of the Sambhaavnaa Institute of Public Policy and Politics in Himachal Pradesh, India. He has worked with cultural affirmation and agro biodiversity projects in campesino communities in a number of countries, and is active in environmental health/anti-toxics work.
A recent study of air pollution in the western United States made a startling finding: despite a 50 percent drop over the past 25 years in US emissions of smog-producing chemicals like nitrogen oxides (NOx), smog actually increased during that period in the rural US West – even in such ‘pristine’ environments as Yellowstone National Park. Most of this increase was traced to “the influx of pollution from Asian countries, including China, North and South Korea, Japan, India, and other South Asian countries.”[1] That’s because over the same period that NOx emissions declined in the US, they tripled in Asia as a whole.[2] In media reports of the study, China and India are described as the “worst offenders” of this fugitive “Asian pollution”.[3]
Left only with these findings, a reasonable conclusion would be that the US has become more environmentally enlightened in recent decades, while Asia – particularly ‘developing’ Asia – is a veritable eco-reprobate, sacrificing not only its own but global airsheds to choking pollution. The new, anti-environmental EPA director, Scott Pruitt, recently expressed this view in explaining why the US should exit the Paris Climate Accord: “[China and India] are polluting far more than we are.”[4]
What’s missing?
A similar study of global air pollution drift in 2014, focusing on China and the US, made comparable findings, but included an important factor missing from the more recent study: production for export. Among other things, the scholars of the older study asked how much of the Chinese air pollution drifting to the Western US was occasioned specifically in the production of exports for world markets (including the top destination for Chinese manufactures, the US.)
The answer? In 2006, up to 24% of sulfate concentrations over the western United States were generated in the Chinese production of goods for export to the US.[5] Applying these findings to the more recent study, it’s likely that a significant percentage of the Asian nitrogen oxides now choking the US West were also emitted in the production of goods destined for the US.
In other words, it’s meaningless to speak of “Asian pollution” in this context. Though the pollution was emitted in Asia, it properly belongs to the country/ies on whose behalf and at whose behest it was produced. Even more accurately, the pollution finally belongs to the transnational corporations (TNCs) who are the real drivers and beneficiaries not only of offshoring, but also of insatiable consumerism through marketing and obsolescence.
Economic globalization has enabled the manic scouring of the world by TNCs for the most ‘liberal’ (read: unregulated) environments in which to locate production facilities – the places where expenses can be minimized and profits maximized. Since the biggest drags on corporate profiteering come from taxes, environmental regulations, and decent labor protections and wages, the global relocations of TNCs have largely been towards countries where those costs are lowest, or absent altogether.
By increasing their economic power, globalization has also given TNCs the ability to capture governments, which then collude in further reshaping of the world through ‘free’ trade treaties, supra-national institutions like the IMF, WTO and World Bank, and subsidies and hand-outs to attract and retain big businesses.
This entire system of globalization, production and pollution off-shoring is driven by the profit-maximization logic governing transnational corporations, greased along by an ever-growing number of bilateral and global free trade treaties. As economist Martin Hart-Landsberg writes:
“Beginning in the late 1980s large multinational corporations, including those headquartered in the US, began a concerted effort to reverse declining profits by establishing cross border production networks (or global value chains). This process knitted together highly segmented economic processes across national borders in ways that allowed these corporations to lower their labor costs as well as reduce their tax and regulatory obligations. Their globalization strategy succeeded; corporate profits soared. It is also no longer helpful to think about international trade in simple nation-state terms.”[6]
China – having colluded with global capital in turning itself into the ‘factory of the world’[7] – is bearing the lion’s share of globalization’s brunt. But at least China is getting rich as a result, right? Certainly there is an emerging wealthy (and superwealthy) class within China that is profiting from globalization, but it represents a minuscule fraction of the overall population.[8] The mass of the workers who make up China’s labor and ‘bad-labor’[9]workforce are not benefiting from the country’s conversion into a TNC workshop: labor’s share of China’s GDP has been steadily falling since the late 1990s.[10] For a high-end electronic product like the iPhone, less than 2% (about US$10) of the sales price goes to Chinese workers involved in its production.[11]
So who is driving China’s export-oriented boom? Quoting Hart-Landsberg again, “it is not Chinese state enterprises, or even Chinese private enterprises, that are driving China’s exports to the US. Rather it is foreign multinationals, many of which are headquartered in the US, including Apple, Dell, and Walmart”.[12] By 2013, foreign-owned TNCs were responsible for 47% of all Chinese exports (and over 80% of high-tech exports) compared to a mere 11% by Chinese state-owned enterprises.[13] US-based TNCs dominate this control and ownership of exports made in China.
The division of profits from Chinese manufactures is also heavily skewed in favor of foreign corporations. For telecommunications equipment, China produced 38% of world exports in 2013, but their share of the profits generated by the sale of those products was just 6%, while US firms captured 59%. Similar imbalances obtain in the case of textiles, where US firms commandeered 46% of the profit share.[14]
From the production, sale and transport of globally-traded commodities, to the shipping of the resulting waste back to China,[15] and now to the profitable ‘adaptation’ to the ghastly air pollution,[16] TNCs are the main drivers and beneficiaries of this system. In other words, Chinese production and exports are dominated by US and other foreign corporations, and – like the pollution drifting across the globe – are not really ‘Chinese’ at all.[17]
This ‘Asian pollution’ may have an even deeper connection to the American west over which it is now drifting. The world’s largest surface mines are the Black Thunder mines, in the Powder River Basin straddling the Wyoming/Montana border. The mine’s owner and operator, Arch Coal, exports sizable amounts of this government-owned coal to places like China, where it is burned to power the factories that produce American consumer goods.[18]
==
It has been widely noted that American consumers have the largest ecological footprint in the world. While not completely absolving individuals – especially those on the upper rungs of the socio-economic ladder – for perpetuating this wasteful system, it can be argued that those large ecological footprints are not entirely their own. The combined effects of aggressive marketing, advertising, and planned product obsolescence[19] mean that the American consumer’s oversized footprint is largely a consequence and reflection of the global power of TNCs. In that sense, it is perhaps more accurate to speak of corporateecological footprints rather than the footprints of nations or individuals.
Globalization has meant the distancing of cause and effect, source and sink, so that the pollution and human exploitation caused in the production and transport of goods has remained invisible and opaque to consumers. As Wendell Berry says, “The global economy institutionalizes a global ignorance, in which producers and consumers cannot know or care about one another, and in which the histories of all products will be lost.”[20]
Until now, it seems, corporations’ pollution offshoring was easy enough for Northern policymakers to comfortably ignore – it was offshored, after all. Of course, global warming already showed that simply exporting polluting production to the global South was meaningless as far as the Earth’s atmosphere and climate were concerned. But local air quality was seen as something distinct, so that the smoggy horrors of industrializing China or India were, for places like North America, still at a ‘safe’ distance. No more. Now, in addition to the products that magically appear on Western store shelves absolutely shorn of history and provenance, much of the hitherto distant pollution emitted in their production has also arrived. It has come home to roost. Globalization’s blowback.
Republished with permission of Local Futures. For permission to repost, please contact info@localfutures.org
[1] Lin, M., Horowitz, L., Payton, R., Fiore, A., and Tonnesesn, G. (2017) ‘US surface ozone trends and extremes from 1980 to 2014: quantifying the roles of rising Asian emissions, domestic controls, wildfires, and climate’,Atmospheric Chemistry and Physics 17(4).
[5] Lin, J., Pan, D., Davis, S., Zhang, Q., He, K., Wang, C., Streets, D., Wuebbles, D., and Guan, D. (2014) ‘China’s international trade and air pollution in the United States’, PNAS111(5), 4 February. http://www.pnas.org/content/111/5/1736.abstract.
[7] David Harvey, among others, tells the complicated tale of how this transformation occurred: Harvey, D. (2005) A Brief History of Neoliberalism, Oxford and New York: Oxford University Press. ‘Neoliberalism ‘with Chinese Characteristics’’ (ch. 5).
[9] ‘Bad labor’ refers to vulnerable, health-damaging, gender unequal, child and forced labor. Simas and colleagues have looked at the relationship between globalization of production chains and ‘bad labor footprints’, and estimate that more than half of such footprints behind “wealthy lifestyles of affluent regions” occur in the production of exported goods in un-affluent regions/countries, with the majority of these being in Asia. Up to 30% of bad labor conditions in poor countries are related to the production of exports (Simas et al. 2014 ‘The “Bad Labor” Footprint: Quantifying the Social Impacts of Globalization’, Sustainability 6.).
Editor’s note: Climate change is a symptom predicament of overshoot and is exploited by power elites to deflect from what is necessary, ending modern civilization. The slow death of nature started with civilization, it has exponentially sped up since the 1700s. The reason there are no more natural disasters is because they are all now man-made.
Rich countries have exported climate breakdown through extractive industries, creating a “carbon colonialism.”
Almost everything we buy exploits the environment and the people who depend on it to a greater or lesser extent. Almost everything we buy contributes to climate breakdown through emissions, local environmental degradation, or, most commonly, both. Yet, in a world where greenwashing is so commonplace that almost every product proclaims ecological benefits, it tends not to be seen that way. In fact, it tends not to be seen at all.
Carbon emissions and pollution are a phase that we all pass through, meaning that the ability—and crucially the money—to avoid the ratcheting risks of climate change is something we have earned, and others too will earn as each nation continues inexorably along its separate curve. Wealthy countries accept this narrative because it is comfortable and provides a logical and moral explanation of the relative safety and health of the rich world.
But what if it wasn’t true? What if one place was devastated because the other was clean? Just as carbon emissions are not acts of God, neither is exposure to the results of those emissions. In other words, you can’t remove money from the geography of disaster risk.
This is carbon colonialism: the latest incarnation of an age-old system in which natural resources continue to be extracted, exported, and profited from far from the people they used to belong to. It is, in many ways, an old story, but what is new is the hidden cost of that extraction: the carbon bill footed in inverse relation to the resource feast.
Most colonial economies were organized around extraction, providing the raw materials that drove imperial growth. As a result, even when the imperial administration is taken out, the underlying economic structures put in place by colonizers are very difficult to get away from and continue to hold newly independent countries back.
On a basic level, exporting raw materials adds less economic value to the country that does it than processing, manufacturing, and reselling those materials, so for every watt of energy, every hectare of land, and every hour of work used to make goods exported from the global North to the South, the South has to generate, use, and work many more units to pay for it.
Decolonizing Climate Change
We already have the ways and means to decolonize how we measure, mitigate, and adapt to climate change.
This task is as sizable as it is vital, but at its core are three priorities. First, carbon emissions targets based on national production must be abandoned in favor of consumption-based measures, which, though readily available, tend to be marginalized for rich nations’ political convenience. Secondly, with half of emissions in some wealthy economies now occurring overseas, environmental and emissions regulation must be applied as rigorously to supply chains as they are to domestic production.
By adopting these new viewpoints, we can aim towards a final priority: recognizing how the global factory manufactures the landscape of disaster. Our globalized economy is built on foundations designed to siphon materials and wealth to the rich world while leaving waste in its place.
Yet there is, as ever, another way. It is possible to reject the globalization of environmental value by giving voice to the people it belongs to. Environments do not have to be merely abstract commodities.
Giving greater value to how people think about their local environments is seen as a way to decolonize our environmental thinking, move away from extractivism, and perhaps forestall the slow death of nature that began in the 1700s.
Environmental Myths and How to Think Differently
One of the most widely shared myths in climate change discourse is that climate change increases the likelihood of natural disasters. This burden is ‘disproportionately’ falling upon poorer countries. Yet, it is fundamentally flawed. Climate change is not causing more natural disasters because disasters are not natural in the first place. They do not result from storms, floods, or droughts alone, but when those dangerous hazards meet vulnerability and economic inequality.
A hurricane, after all, means something completely different to the populations of Singapore and East Timor. This difference is no accident of geography but of a global economy that ensures that some parts of the world remain more vulnerable to climate change than others. Natural disasters are, therefore, economic disasters: the result of centuries of unequal trade and the specific, everyday impacts of contemporary commerce.
With rich countries doing an ever-diminishing share of their manufacturing, the responsibility to report real-world emissions is left to international corporations, which have little incentive to report accurate information on their supply chains.
The environments of the rich world are becoming cleaner and safer, even in an increasingly uncertain environment. The resources needed to tackle the challenges of climate change are accruing and being spent to protect their privileged populations.
Yet, for most of the world, the opposite is true. Natural resources continue to flow ever outward, with only meager capital returning in compensation. Forests are being degraded by big and small actors as climate and market combine to undermine traditional livelihoods. Factory workers are toiling in sweltering conditions. Fishers are facing ever-declining livelihoods.
In other words, we have all the tools we need to solve climate breakdown but lack control or visibility over the production processes that shape it. From legal challenges to climate strikes and new constitutions, people are waking up to the myths that shape our thinking on the environment. They are waking up to the fact that climate change has never been about undeveloped technologies but always about unequal power.
As the impacts of climate breakdown become ever more apparent, this can be a moment of political and social rupture, of the wheels finally beginning to come off the status quo.
Demand an end to the delays. Demand an end to tolerance for the brazenly unknown in our economy. Demand an end to carbon colonialism.
Editor’s note: We can no longer continue to deny the evidence. We are living through the end stage of the Pyrocene. We have hit rock bottom and are seeking solutions from anywhere else but to slow down. Unfortunately, the necessary change will not come from us, rather something external will bring us down. But we should give it a push whenever possible. Dying and being reborn is a natural process, we must contract when faced with hard times.
“The best type of degrowth is practiced as a pre-emptive measure at a time of health and abundance, not when it is too late, to ensure that maximum resource is conserved for the difficult times ahead.” – George Tsakraklides
Ancestral Future’, a book by Ailton Krenak, the first Indigenous person elected to join the Academia Brasileira de Letras (Brazilian Academy of Letters), was published in English on July 30, 2024.
An Indigenous leader, environmentalist, philosopher, poet and writer, Krenak advocates for a paradigm shift away from modern Western notions of progress, development and unrestrained economic growth that are the root cause of global challenges like climate change and biodiversity loss.
He says he believes we can change course and that several possible sustainable futures exist if humanity reconnects with ancient wisdom, recognizes Earth as a living organism and lives in harmony with nature.
In this interview, Krenak discusses his newly translated book and what he thinks our possible futures look like.
For decades, scientists have been warning that the world is heading toward catastrophic scenarios due to climate change. But Ailton Krenak refuses to think about an apocalypse. On the contrary, he argues that there are several possible futures — but they will only be achievable when we realize that “being is more important than having.”
For the Brazilian Indigenous leader, environmentalist, philosopher, poet and writer, Western society is facing an urgent need for a paradigm shift that challenges the ideas of progress and development themselves.
“I’m not a pessimist, but I’m sure that the only way to move forward in this world is to reconnect with ancient wisdom. We have long been divorced from this living organism that is the Earth,” Krenak said in an interview with Mongabay.
Born in Itabirinha, in the state of Minas Gerais, the 71-year-old Indigenous leader has been a prominent figure and an advocate for Indigenous rights for decades. In the late ‘80s, he became famous for his appearance at Brazil’s National Constituent Assembly, where he functioned as a representative of Indigenous peoples in constitutional debates.
While giving his speech at the Congress in 1987, he stood on a platform, in front of those who threatened the land rights and culture of Indigenous peoples, and painted his face in black jenipapo paste (from the genipap fruit, Genipa americana). It was a form of protest against the setbacks and violent attacks on his rights and those of his Krenak relatives by the Brazilian dictatorship. The following year, a new Constitution was put into law, establishing fundamental rights for Brazil’s Indigenous peoples for the first time in history.
From then on, Krenak’s efforts to raise awareness around the world about the need to rescue ancestral values intensified. His profound ideas have been disseminated through lectures, educational courses and articles. He has been awarded with honorary doctorates from three esteemed Brazilian universities, published more than 15 books — some of them have been translated into more than 13 languages. And, in 2024, he became the first Indigenous person elected to join the Academia Brasileira de Letras (Brazilian Academy of Letters).
Well known for thinking outside the box and being provocative, Krenak has a deeply skeptical view of capitalist progress and agues it devalues the natural world. He says he believes humanity is facing an urgent need to reconnect with the biocentric approach that dethrones humanity from its pedestal and roots us back to our origin. This is the main argument of his most recent book, Ancestral Future. Published in Portuguese in 2022, it is a compilation of five essays in which Krenak deals with the preservation of rivers as a way of conserving the future. The English translation of the book is now available and was published on July 30.
To mark the new release of his translated book, Mongabay spoke with the Indigenous academic by phone for more than an hour about spirituality, modern Western society, ancestral values and his ideas for possible futures.
Mongabay: In your books and lectures, you advocate for an eco-centric perspective that recognizes intrinsic value in all life forms and seeks to de-emphasize human prominence. This is similar to how many Indigenous peoples live, but it is very distant from modern Western mentality, which centers humans and treats nature primarily as a resource. Why do you believe this radical paradigm shift in the Western world is so urgent and necessary?
Ailton Krenak: We are all experiencing a rupture in our sense of belonging to life. We are now perceiving everything as a threat: rains, floods, temperatures. But we don’t realize that what we are experiencing is the fever of the planet. This is the Earth responding to human actions that have long placed us at the center. It is what scientists define as the ‘Anthropocene,’ a theory suggesting that human activities have profoundly altered the functioning of the planet and that could mark a new geological era.
This scares us because we’re not accustomed to not having control over the planet. We struggle to accept that the Earth is a living, intelligent organism that cannot be subjected to anthropocentric logic. Yet, this reality asserts itself, and that’s why we live in constant tension. What we are experiencing today is a phenomenon of the 21st century, arising because we treated the 20th century as if it were a period where we could be on an industrial binge on the planet.
Mongabay: Do you mean by ‘living irresponsibly’?
Ailton Krenak: Yes. The 20th century was very prosperous. The world experienced what the United Nations and other major organizations called global development, which resulted in the term ‘globalization.’ We spent the 20th century euphoric with this idea of a global village. But no one paid attention that if harm came to this village, everyone would be affected. The idea of a single global economy resulted in finance capitalism, which we experience today, which is an unsustainable way of living.
It’s frightening to observe that today, wealth isn’t where valuable things are. It’s not where rivers, mountains or forests are. It’s in large cities, in major industries. We’ve become accustomed to a false sense of well-being.
This Western worldview is very different, for example, from that of the Indigenous peoples of the Andes mountains in South America. They have been living for centuries under the concept of buen vivir or ‘good living,’ questioning the prevalent economic development narratives and recognizing humans as part of the natural world. Good Living is a translation of the Quechan phrase sumaq kawsay. Sumaq means plenitude and kawsay means living. This is what I call a cosmovision, a lifestyle that considers only what the land has to offer us in the place we live in. For many peoples, this perspective has been sufficient for thousands of years. The idea of wealth is perceived differently — not from the experience of having things, but from belonging to a place. I see life on Earth as a cosmic dance. But this is only possible in communities that have this ancestral wisdom, that have managed to persevere with the Earth.
Mongabay: And why have modern Western societies moved so far away from this way of life?
Ailton Krenak: Western society has long been divorced from this living organism that is the Earth. This divorce from interconnection with Mother Earth has left us orphans. While humanity is moving away from its place, a bunch of big corporations are taking over and subjugating the planet: destroying forests, mountains and turning everything into merchandise.
In the West, what we experience is the constant stimulus to have, to buy, but not to be. If we look at human history, we see that it is impossible for everyone to have everything. When a few have a lot, thousands of others are materially poor. This is very easy to understand but very difficult to accept. Propaganda does that to us. More than a hundred years ago, when Henry Ford discovered that he could awaken everyone’s desire to own a car, he made the first billboard of a car with a slogan that said something like, ‘You will have one.’ That was the most disgraceful promise anyone has ever made to humanity. Fordism created the illusion that we can mass-produce the world. We have become a huge crowd of people wanting the same things.
I honestly don’t know if we will be able to reeducate ourselves for a world where what matters is life and the quality of life. It is not the clothes you wear or how much money you can show off. We are hostages of a broad and socially experienced condition that is an illusion. This results in tragedies, and they are everywhere. A river that you destroy never comes back. A mountain that you cut down to make laminate turns into a plain.
Mongabay: What are the premises of this ‘ancestral way of life’ that need to be rescued to create possible futures?
Ailton Krenak: These cosmovisions are not theories, they cannot be presented in a literary work or in a document because they represent a way of being in the world. A collective way of living. If we were to answer in one sentence, it would be: We must learn to live with only what is necessary. In the children’s story The Jungle Book, all the creatures in the forest talk. At one point, the bear says to the boy that lives in the forest, ‘Only what is necessary, only what is necessary.’ It is beautiful because children understand what is necessary, but adults often do not. When we become adults, we go beyond the limits of what is necessary; we think we can force the Earth to give us what we want, not what it can sustainably provide. The phrase ‘only what is necessary’ is the first thing we will have to relearn. We have drawers to store everything we do not need. Maybe the first step is to imagine a world without drawers.
Mongabay: In 2024, you were elected to the Brazilian Academy of Letters and became the first Indigenous person to occupy a chair at the century-old institution. Do you consider this to be a sign that Indigenous culture and thoughts are beginning to be valued?
Ailton Krenak: I believe so. Indigenous literature is not only gaining relevance in Brazil but is also being translated in various countries. I believe this is likely because the Western repertoire has been exhausted. I see this movement as a desire to find some way out, a desire to think about the future. It’s as if we have hit rock bottom and are seeking solutions elsewhere.
For a long time, Brazilian educational institutions were subservient to European knowledge and literature. The majority still seek to transplant dominant thinking here. Brazil has not managed to shake off its ‘mongrel complex’ [an inferiority complex Brazilians feel in relation to the rest of the world] and continues to wait for a white boss to come and teach people how to live, even within the forest. Everyone, except for the deniers, knows that our modern relationship with nature is leading us to very difficult experiences in the coming years due to rising global temperatures.
If we are already highly vulnerable with current climate conditions, imagine when we reach temperatures unbearable for human life? We are undergoing changes that were not planned. We are experiencing a disruption within ourselves that was not programmed. If we wish to envision a future possibility, we need to put a limit on our relentless pursuit of development, of technology at any cost. This drive has been encouraged since childhood. You no longer see children building their own toys. In most schools, childhood is being shaped for a dystopian future, where toys are even influenced by the military industry. You see children playing with guns made out of plastic, pretending to kill each other. How can we cultivate a future like this? I understand that the world is realizing this is unsustainable and searching elsewhere for future possibilities.
Mongabay: Is it obsolete to think about economic development and growth in today’s world? Or can a cosmovision complement the idea of economic development?
Ailton Krenak: The planet’s economic development is what is destroying life on Earth. We do not need economic development anymore. The wealth of the world is at least 8-10 times bigger than what we actually need. There are about 110 armed conflicts happening worldwide because the military industry needs to produce weapons. War is what boosts the economy the most in the world. It’s not life, it’s war. We invest trillions in war, not in protecting biodiversity. The discourse of progress and development is foolish because if you ask where humans will get water and food for everyone, they will tell you it’s from the land, as there’s no other place to get it from. Yet, they persist in ignoring adequate policies for land access.
Before talking about more development, it would be necessary to consider greater engagement with environmental issues, territorial issues, land management and the privatization, destruction and degradation of river basins. Otherwise, it is unsustainable. This paradigm shift is needed. I thought humanity would begin to reconsider the idea of development and globalization after the tragedy of the COVID-19 pandemic because, as a global event, it paralyzed everyone. I thought we would emerge as better human beings from this horror. But I am impressed by how we have worsened.
Mongabay: How do we change this paradigm? The signs are all there that we are heading for trouble, yet it seems that nothing much is happening.
Ailton Krenak: We should be skeptical of any expert, philosopher or global leader who claims to have a solution, because it’s a lie. It took us a long time to build the scenario we find ourselves in, and we won’t be able to undo it with a magic wand. If we had learned anything from the pandemic, which was a global experience, we would have changed our behavior. For example, greenhouse gas emissions would have decreased. But nothing has changed.
That’s why I fear that what will provoke this change that we need will be something external, it will not come from us. It could be another virus, an extreme weather event. Something that collapses our ability to move, our ability to live as we do now. Perhaps then we will undergo a cognitive rupture that stops us from being this consumerist metastasis and leads us to experience another way of living. I believe we have reached our limit and will be thrust into a different situation, a different reality. This could be very tragic though.
Mongabay: This seems like a rather pessimistic view …
Ailton Krenak: Yeah, it seems like we’ve gathered here to talk about the apocalypse. I don’t want to nurture that feeling within myself, nor do I want to cultivate it in others as if it were a declaration of surrender, but we can’t continue to deny the evidence. If we have climate events altering the weather, why should we continue to overspend on things nobody needs? When I published the bookIdeas to Delay the End of the World, I announced my distrust of the idea that development and progress would be the path to the future. I explained that a biocentric vision — an ethical perspective that holds every life as sacred — would be a path to the future.
But for that, we need to renounce the materialistic apparatus that surrounds us. Today, life has become solely focused on consumption, on economic growth at any cost. When I denounce this kind of end of the world, I’m not renouncing hope. But I also don’t want to promote a ‘placebo hope,’ one where you pat someone on the shoulder and say everything will be fine. It won’t be fine. We’re going to get worse for a while. But after that, we can improve, as long as we learn to renounce.
Mongabay: You say we will get worse for a while. Yet, you insist on the idea of possible futures. Do you really believe this is possible?
Ailton Krenak: Our planet is so wonderful. We cannot lose sight of the fact that life is everywhere. No one is a separate cocoon in the cosmos living this experience alone. You experience this with all the organisms that are in the planet’s biosphere. It is as if we were diluted in everything. We need to relearn how to walk softly on the Earth. When we learn to walk like this, we will experience wonder and nothing else will be needed. We must accept Nature’s invitation to dance with life. If we could have an organic mindset, which connects us with bees, ants, the grass that grows, the trees that shake in the wind, that shed their leaves and bring forth new shoots, we would understand that everything is constantly sprouting, growing, dying, being born.
Homo sapiens is the only animal that wants to be eternalized, wants to mummify itself, wants this monoculture way of eating the world. The Earth, Gaia, Pachamama, this living organism is intelligent, and we will have to negotiate with it our possible way out of this hole we have dug. Perhaps the answer lies in the capacity for affection, for embracing all other nonhuman beings.
Mongabay: When you close your eyes, what future do you see?
Ailton Krenak: When I’m on my land, cleaning the yard, I meditate. I detach from the harshness of daily life, close my eyes, and imagine a landscape where waters emerge from the mountains and form small streams. I become such a tiny organism that I dissolve into water. In this place, the concept of future isn’t something you problematize. You experience being the future. This is the ancestral future.