0:00:13.960,0:00:15.439
Encirclement

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Neo-Liberalism Ensnares Democracy

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Producer, director, editor

0:00:37.080,0:00:42.840
Photography

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Sound

0:00:48.680,0:00:54.480
Music

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In order of appearance

0:01:30.600,0:01:33.831
In the ’30s,[br]the term “totalitarian regime”

0:01:34.200,0:01:37.158
was applied to single-party regimes

0:01:39.240,0:01:41.470
where the party’s mandate

0:01:42.800,0:01:46.270
was to rule over the totality[br]of a society’s activities -

0:01:47.800,0:01:52.794
political, economic, social, cultural.[br]The state looked after everything.

0:01:53.000,0:01:58.632
Unfortunately, we had examples[br]particularly in Fascism, Nazism …

0:01:58.920,0:02:03.357
and Stalinism: totalitarian societies[br]run by an omnicompetent party.

0:02:03.760,0:02:09.392
Today, we live in a democracy,[br]of course, but we notice that …

0:02:09.639,0:02:12.438
single parties have given way[br]to a single mindset,

0:02:13.080,0:02:17.073
and the proponents[br]of such unilateral thinking

0:02:17.320,0:02:21.552
reckon that there is[br]but one solution -

0:02:21.800,0:02:27.238
the one imposed by the market -[br]to cover all society’s activities.

0:02:27.440,0:02:34.278
Whatever the activity -[br]economic, social, cultural, athletic -

0:02:35.880,0:02:38.792
the market is mandated[br]to regulate it.

0:02:39.920,0:02:45.153
We see how the market penetrates[br]all society’s interstices,

0:02:45.360,0:02:50.957
like a liquid, that leaves nothing[br]and spares nothing.

0:02:51.240,0:02:55.199
This is why we can now talk[br]about “globalitarian” regimes:

0:02:55.440,0:02:59.069
because there’s a will to impose

0:02:59.320,0:03:03.199
a kind of unique solution[br]to the plurality of our problems.

0:03:05.600,0:03:07.750
I wrote “La Pensée Unique” …

0:03:08.920,0:03:11.229
in 1995,

0:03:11.640,0:03:14.313
when most of our citizens …

0:03:14.600,0:03:17.273
hadn’t yet become totally aware

0:03:18.200,0:03:24.070
that we had fallen into an ideology[br]in which we were now immersed.

0:03:25.840,0:03:29.674
Today, we’d call this ideology[br]“neo-liberal”.

0:03:30.960,0:03:34.077
Neo-liberalism[br]is an economic technique,

0:03:35.880,0:03:38.758
a certain set[br]of economic principles,

0:03:39.000,0:03:43.551
but in reality, imperceptibly, it’s[br]also a veritable ideological yoke.

0:03:44.000,0:03:48.391
This is what I was trying[br]to point out, primarily,

0:03:48.920,0:03:52.037
by saying what it[br]ultimately consists in:

0:03:52.920,0:03:56.959
Neo-Liberalism consists in[br]a certain number of principles,

0:03:57.200,0:04:00.351
notably that[br]the market’s invisible hand

0:04:00.600,0:04:05.116
is there to settle problems. People[br]and States need not get involved,

0:04:05.240,0:04:07.231
let the market work.

0:04:08.480,0:04:11.313
Establishing principles[br]like deregulation.

0:04:11.560,0:04:14.996
Everything’s over-regulated,[br]the State’s been too involved.

0:04:15.200,0:04:16.791
We need less government.

0:04:17.920,0:04:23.313
Capital must prevail over labour.[br]We must always favour capital.

0:04:23.800,0:04:26.360
And we must privatize.

0:04:27.720,0:04:32.635
The State’s perimeter must be small,[br]the private sector’s expansive.

0:04:33.240,0:04:38.314
Free trade must be promoted[br]because commerce is development.

0:04:38.560,0:04:41.996
We made this kind of equivalency.

0:04:42.520,0:04:48.709
I was trying to show how[br]these principles weren’t recent,

0:04:48.920,0:04:53.550
but had been developed since ’44,[br]since the Bretton-Woods conference,

0:04:53.800,0:04:56.633
which initiated the IMF[br]and the World Bank.

0:04:56.880,0:05:01.510
It arose from all the work the IMF[br]had done since the ’60s and ’70s

0:05:01.760,0:05:05.150
geared towards southern countries,[br]called “structural adjustment”,

0:05:05.400,0:05:09.188
or, in some countries,[br]“the Washington Consensus”,

0:05:09.440,0:05:13.911
namely that State budgets[br]must necessarily be reduced,

0:05:14.160,0:05:17.630
no public deficit, no inflation,

0:05:17.920,0:05:23.597
bureaucracies must be reduced,[br]all public services like health …

0:05:23.880,0:05:27.077
and education[br]must be reduced to a minimum.

0:05:27.320,0:05:30.995
The State isn’t to make[br]that kind of expenditure, etc.

0:05:31.800,0:05:34.917
Many southern countries[br]suffered greatly, of course.

0:05:36.040,0:05:40.397
These were basically my points,[br]and when we add up these elements,

0:05:40.600,0:05:43.194
we’re faced with an ideology.

0:05:43.400,0:05:48.030
And at the time, France was on[br]the eve of a presidential election,

0:05:48.280,0:05:51.033
which took place[br]a few months later in May.

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So, I was saying that[br]ultimately, in reality,

0:05:54.840,0:06:00.710
we were being proposed this almost[br]single-party kind of pensée unique.

0:06:02.640,0:06:04.232
Leftist Privatization

0:06:11.760,0:06:17.200
Shortly after the Iron Curtain fell,[br]we witnessed in the West

0:06:17.200,0:06:22.760
a reframing rightwards by the[br]vast majority of left-wing parties.

0:06:22.760,0:06:31.640
From the British Labour Party to[br]Germany’s SPD via the Parti Québécois,

0:06:31.640,0:06:39.440
they all got into a State “reform”,[br]“reengineering” or “modernization”

0:06:39.440,0:06:45.080
that invariably meant[br]adopting neo-liberal politics.

0:06:45.080,0:06:52.120
From 1997 to 2002 in France,[br]Lionel Jospin’s socialist government

0:06:52.120,0:06:57.880
proceeded to privatize about[br]10 major national corporations -

0:06:57.880,0:07:08.120
the same number as the right-wing[br]governments before and afterwards.

0:07:08.120,0:07:16.760
How has neo-liberalism found its way[br]into so-called “socialist” parties?

0:07:16.760,0:07:21.515
And where is it coming from?

0:07:22.520,0:07:30.108
origins

0:07:32.800,0:07:35.473
Winnipeg General Strike, 1919

0:07:35.720,0:07:38.553
Neo-liberalism appeared …

0:07:38.800,0:07:41.519
under particular intellectual[br]and institutional configurations.

0:07:41.800,0:07:44.360
Generally speaking,[br]from 1914 to 1945,

0:07:44.600,0:07:47.910
capitalism went through[br]an unprecedented crisis.

0:07:48.200,0:07:52.318
The crisis was a material one.[br]In the ’20s,

0:07:52.520,0:07:55.512
capitalism had boomed[br]after Reconstruction,

0:07:55.600,0:07:57.750
but the Depression in the ’30s

0:07:58.000,0:08:01.151
led to unemployment,[br]bankruptcy, political disorder.

0:08:01.320,0:08:02.958
And intellectually,

0:08:03.240,0:08:07.552
the liberal credo yielded[br]to the claims of economic planning,

0:08:07.800,0:08:11.873
interventionism, and[br]general wariness of laissez-faire.

0:08:12.880,0:08:16.714
There was widespread demand[br]for reinforced State intervention,

0:08:16.920,0:08:18.876
state-controlled economies.

0:08:19.120,0:08:23.557
This turned into concrete projects,[br]both in “dictatorships”

0:08:23.800,0:08:25.279
and in democracies.

0:08:25.400,0:08:29.188
We think of the Soviet 5-year plan

0:08:29.480,0:08:32.039
and also the New Deal in the U.S.,

0:08:32.240,0:08:35.596
under the National Recovery[br]Administration (NRA)

0:08:36.120,0:08:37.837
and other such structures.

0:08:38.120,0:08:41.317
In Nazi Germany, it was[br]the Reich economics ministry.

0:08:41.559,0:08:44.198
In Fascist Italy, it was[br]the corporations ministry.

0:08:44.440,0:08:47.910
Even in France, a national[br]economy ministry was established -

0:08:48.200,0:08:51.397
a totally new thing,[br]under the rising Front Populaire.

0:08:52.440,0:08:56.194
Communist Demonstration[br]Berlin, 1929

0:09:22.360,0:09:25.750
Important to establishing[br]a neo-liberal network in France

0:09:25.880,0:09:27.791
was building a publishing house.

0:09:28.040,0:09:31.271
It was called Les Éditions[br]de la Librairie de Médicis,

0:09:31.560,0:09:33.471
founded in 1937.

0:09:33.680,0:09:37.832
It was created by a woman,[br]Marie-Thérése Génin,

0:09:38.080,0:09:41.152
which was rare[br]in this fairly masculine field.

0:09:41.400,0:09:45.837
She was connected to a leader[br]in French business associations,

0:09:45.960,0:09:47.075
Marcel Bourgeois,

0:09:47.320,0:09:51.916
who encouraged her to establish[br]a vehicle for intellectual texts

0:09:52.160,0:09:54.833
for a public of intellectuals.

0:09:55.080,0:09:58.914
Éditions de Médicis published[br]Walter Lippmann’s La Cité Libre,

0:09:59.160,0:10:01.435
the precursor of[br]the Walter Lippmann colloquium,

0:10:01.680,0:10:06.390
as well as texts by Hayek,[br]Rueff, Ludwig von Mises.

0:10:06.800,0:10:10.634
About 40 works[br]between 1937 and 1940.

0:10:10.920,0:10:14.390
They published the proceedings[br]of the Lippmann colloquium

0:10:14.640,0:10:17.916
at the Institut International[br]de Coopération Intellectuel,

0:10:18.160,0:10:21.789
now defunct,[br]but the forerunner of UNESCO.

0:10:22.000,0:10:24.958
This happened[br]in a fairly official context.

0:10:26.440,0:10:32.709
There were 26 participants, whose[br]significance is now acknowledged:

0:10:33.080,0:10:36.868
Friedrich Hayek, future[br]Nobel Prize winner for economics,

0:10:37.120,0:10:41.159
Robert Marjolin, a pillar[br]of European construction,

0:10:43.240,0:10:46.073
the founders of Germany’s[br]“social market economy”,

0:10:46.320,0:10:48.515
Alexander Rüstow and Wilhelm Röpke,

0:10:48.760,0:10:51.194
de Gaulle’s financial advisor,[br]Jacques Rueff,

0:10:51.360,0:10:55.592
the mastermind of Ronald Reagan’s[br]Star Wars, Stefan Possony.

0:10:56.400,0:11:00.712
That’s all hindsight. At the time,[br]they were less famous.

0:11:01.400,0:11:05.188
The colloquium lasted 4 days,[br]during which were discussed

0:11:05.440,0:11:09.672
the eventual responsibilities[br]of liberalism in the Depression,

0:11:09.920,0:11:12.480
as well as the means[br]of renewing liberalism

0:11:12.720,0:11:17.191
and building worldwide opposition[br]to interventionism and socialism.

0:11:17.880,0:11:22.360
The Walter Lippmann Colloquium[br]hosted the avant-garde

0:11:22.360,0:11:26.520
of the neo-liberal battle[br]in preparation.

0:11:26.520,0:11:30.920
Among the most ferocious opponents[br]of collectivism,

0:11:30.920,0:11:36.552
Friedrich von Hayek and[br]Ludwig von Mises stood out.

0:11:37.120,0:11:41.989
Hayek and Mises represented[br]a particular trend in neo-liberalism,

0:11:42.200,0:11:44.236
the Austrian School.

0:11:44.520,0:11:49.389
They advocated a radical liberalism[br]that grants the State minimal power.

0:11:49.640,0:11:54.077
The minimal State is an expression[br]used by their disciples.

0:11:54.840,0:11:57.593
These two had slightly different[br]economic ideas.

0:11:57.840,0:12:01.594
Liberals often gloss over[br]their divergent views.

0:12:01.800,0:12:04.189
But they also had[br]certain points in common.

0:12:04.400,0:12:08.951
The first is that economic science[br]was just a fraction of their work.

0:12:09.120,0:12:13.750
Mises considered it a branch of the[br]more general science of human action.

0:12:13.880,0:12:17.236
Hayek soon left pure economics

0:12:17.520,0:12:20.159
to pursue psychology.[br]He studied the brain,

0:12:20.360,0:12:25.309
political orders, law, etc.[br]For them, economics …

0:12:25.520,0:12:30.150
was their original field, but it[br]didn’t cover all of the humanities.

0:12:30.440,0:12:35.070
Secondly, their conception[br]of economics was fairly particular.

0:12:35.320,0:12:38.232
Austrian School economics[br]were far from concrete:

0:12:38.480,0:12:41.677
no statistics,[br]no mathematical data, etc.

0:12:41.880,0:12:47.113
Everything stemmed from axiomatics.[br]There were “typical” ideal situations

0:12:47.360,0:12:51.194
where one observes[br]how a rational person acts

0:12:51.400,0:12:54.472
in negotiating choices[br]between work and leisure,

0:12:55.920,0:12:57.911
sleeping and getting rich, etc.,

0:12:58.160,0:13:01.835
supported by metaphors like[br]Robinson Crusoe on his desert island.

0:13:02.600,0:13:07.958
The third thing they had in common,[br]significant to neo-liberal history,

0:13:08.200,0:13:12.398
is a concept of intellectual work[br]and its role in socialism.

0:13:12.800,0:13:17.191
The thinking of Hayek and Mises[br]was very elitist and aristocratic:

0:13:17.440,0:13:20.193
basically, that the mass[br]of humanity doesn’t think.

0:13:20.400,0:13:24.518
Mises book, Socialism, says,[br]“The masses do not think.”

0:13:24.760,0:13:28.196
Only a few intellectuals think,[br]and do so on society’s behalf.

0:13:28.440,0:13:32.069
So they thought,[br]intellectuals must think,

0:13:32.360,0:13:37.957
and progressively oppose socialism,[br]which other intellectuals invented

0:13:38.160,0:13:41.470
and spread to the masses.[br]Socialism wasn’t spontaneous.

0:13:41.720,0:13:43.915
It was propagated by intellectuals.

0:13:44.040,0:13:48.192
Hayek and Mises put the intellectual[br]at the centre of social change,

0:13:48.400,0:13:51.710
and political and economic change.

0:13:52.400,0:13:56.393
This led to them founding groups[br]like the Mont Pelerin Society.

0:13:58.000,0:14:04.360
War imposed a hiatus on the[br]neo-liberals’ militant activities.

0:14:04.360,0:14:10.920
The CIRL, a French research centre[br]for the renewal of liberalism

0:14:10.920,0:14:16.836
arising from the Lippmann Colloquium,[br]disappeared after only a year.

0:14:37.640,0:14:42.440
As soon as the war ended,[br]Hayek took up the torch again.

0:14:42.440,0:14:46.040
He invited proponents[br]of liberal reestablishment

0:14:46.040,0:14:53.913
to a meeting that would be decisive[br]to the future of neo-liberalism.

0:14:54.440,0:14:58.911
The Mont Pelerin meeting[br]took place …

0:14:59.160,0:15:02.550
from April 1 to 10, 1947,

0:15:02.960,0:15:06.589
in the Hôtel du Parc,[br]near Vevey, Switzerland.

0:15:08.440,0:15:12.353
It was explicitly meant[br]to bring together

0:15:12.600,0:15:15.319
liberal European and[br]American intellectuals,

0:15:15.560,0:15:20.190
and to found an international[br]organization for liberal ideas.

0:15:21.200,0:15:25.159
Hayek had started making contacts[br]2 years earlier

0:15:25.400,0:15:29.757
with Colloquium participants[br]and the British and Americans.

0:15:30.000,0:15:33.436
He invited this circle[br]to Mont Pelerin,

0:15:33.520,0:15:36.557
whence the society’s name.

0:15:36.800,0:15:41.191
There were 39 participants[br]at the first meeting.

0:15:41.480,0:15:46.554
Again, there were some major figures:[br]3 future Nobel winners,

0:15:46.800,0:15:50.156
Milton Friedman, George Stigler,[br]Maurice Allais.

0:15:50.440,0:15:54.115
People known for their political[br]or philosophical essays,

0:15:54.360,0:15:56.590
Karl Popper, Bertrand de Jouvenel.

0:15:56.840,0:16:00.310
And those with direct political[br]influence in their country -

0:16:00.400,0:16:04.109
the Germans, Wilhelm Röpke[br]and Walter Eucken,

0:16:04.200,0:16:07.590
associated with Germany’s[br]“social market economy”.

0:16:08.400,0:16:12.439
Discussions revolved around[br]relatively general subjects

0:16:12.880,0:16:17.192
like Christianity and liberalism,[br]the competitive order,

0:16:17.400,0:16:21.837
the possibilities of founding[br]a European economic federation.

0:16:22.040,0:16:23.712
It lasted several days.

0:16:24.440,0:16:27.671
Hayek thought they needed[br]a flexible structure

0:16:28.280,0:16:30.953
with invited members only,

0:16:31.320,0:16:34.915
no offices,[br]statutes deposited in Illinois,

0:16:35.120,0:16:38.271
that would meet biannually[br]in different countries -

0:16:38.600,0:16:43.071
a fairly nebulous structure for[br]confirmed intellectuals who thought

0:16:43.320,0:16:47.233
liberalism was a doctrine primarily[br]for intellectuals themselves.

0:16:49.920,0:16:57.508
at the core[br]of the neo-liberal network

0:17:05.240,0:17:08.630
The Mont Pelerin Society[br]is not a think tank.

0:17:08.839,0:17:11.400
It’s a kind of liberal academy.

0:17:11.920,0:17:15.833
Nevertheless, a kind of[br]division of labour came about

0:17:16.079,0:17:21.108
between the Society, which recruited[br]only the most renowned liberals,

0:17:21.359,0:17:24.954
and its members’ national activities,

0:17:25.200,0:17:30.593
which could include setting up[br]associations or think tanks.

0:17:31.080,0:17:34.390
This took diverse forms.[br]In France, they created

0:17:34.520,0:17:38.308
the association for economic freedom[br]and social progress in the ’60s,

0:17:38.560,0:17:41.677
the French section of Mont Pelerin,

0:17:41.960,0:17:46.909
the members of which were recruited[br]from business or politics.

0:17:47.160,0:17:49.196
This broadened recruitment

0:17:50.760,0:17:54.150
into milieux other than[br]intellectual circles.

0:17:54.720,0:17:59.316
The other, think-tank model has been[br]perennial in Mont Pelerin’s history.

0:17:59.760,0:18:05.312
The most famous are Britain’s 1955[br]Institute of Economic Affairs,

0:18:05.560,0:18:11.317
or the Heritage Foundation from 1973,[br]linked to the U.S. Republican party.

0:18:11.920,0:18:16.630
These think tanks[br]have appointed employees,

0:18:16.720,0:18:20.679
people paid to write notes,[br]produce legislative proposals

0:18:20.920,0:18:24.435
that are all laid out[br]and distributed to politicians

0:18:24.680,0:18:30.277
and to journalists with the aim[br]of creating liberal public opinion.

0:18:31.040,0:18:33.474
There are now hundreds of think tanks

0:18:34.200,0:18:37.431
that form a veritable cluster[br]which is fairly disorienting,

0:18:37.680,0:18:41.593
to the point where think tanks[br]like the Atlas Foundation

0:18:41.840,0:18:44.991
now have the role[br]of promoting think tanks

0:18:45.240,0:18:49.518
by distributing kits and instructions[br]on how to form one’s own.

0:18:49.760,0:18:52.957
They take very different forms.

0:18:53.400,0:18:56.949
Groups focused on an author -[br]the Hayek Center,

0:18:57.080,0:18:59.594
the Mises Institute -

0:18:59.880,0:19:02.474
that revolve around[br]a particular person’s work.

0:19:02.760,0:19:07.038
Groups can have a subject[br]of particular concern -

0:19:07.280,0:19:10.556
the environment,[br]foreign politics, etc.

0:19:10.800,0:19:16.511
The quality and power of these[br]think tanks are very different.

0:19:17.040,0:19:22.433
A think tank’s strength comes from[br]whether it can connect intellectuals,

0:19:22.680,0:19:27.231
some businessmen, and a general[br]trend within conservative parties.

0:19:27.440,0:19:31.228
There are think tanks[br]like the Center for Policy Studies

0:19:31.480,0:19:33.152
of Keith Joseph,

0:19:33.400,0:19:36.710
which promoted Thatcher[br]and let her garner …

0:19:36.920,0:19:41.152
support to revolutionize[br]the Conservative Party in the ’70s.

0:19:41.320,0:19:45.871
That’s an organization[br]at the junction of 3 milieux.

0:19:46.160,0:19:51.712
A purely intellectual think tank[br]with general thoughts on liberalism

0:19:51.880,0:19:54.952
would have little influence[br]on political debate.

0:20:01.320,0:20:04.949
A whole part of the career[br]of Mises, Hayek, etc.

0:20:05.160,0:20:10.553
can be explained by the affinities[br]they had with business lobby leaders.

0:20:10.800,0:20:15.999
Mises was associated with the U.S.[br]Foundation for Economic Education,

0:20:16.200,0:20:20.512
and thus with business associations.[br]Hayek got to Chicago

0:20:20.760,0:20:27.233
financed by tycoons who wanted him[br]to write another “Road to Serfdom”,

0:20:27.360,0:20:29.635
but on America, not just England.

0:20:29.880,0:20:32.952
These intellectuals got more power

0:20:33.080,0:20:37.596
by teaming up with[br]or befriending powerful people.

0:20:37.800,0:20:41.839
Hayek’s work may reveal[br]a utopian quality,

0:20:42.080,0:20:46.039
but it’s the Utopia of the strongest,[br]not the most underprivileged.

0:20:48.720,0:20:54.160
Financed by corporations[br]and vast private fortunes,

0:20:54.160,0:21:01.160
neo-liberal think tanks often enjoy[br]charitable organization status.

0:21:01.160,0:21:06.960
Their generous donors thereby[br]have the right to tax exemptions.

0:21:06.960,0:21:11.400
However, the law says[br]charitable organizations

0:21:11.400,0:21:15.120
cannot engage in political acts.

0:21:15.120,0:21:20.877
In 1989, Greenpeace was stripped[br]of its charitable status

0:21:21.000,0:21:23.720
by the Canadian government.

0:21:23.720,0:21:27.280
The Canada Revenue Agency[br]concluded that this NGO

0:21:27.280,0:21:30.960
did not always act[br]in the public’s interest.

0:21:30.960,0:21:36.360
It contributed, for example,[br]“to propelling people into poverty

0:21:36.360,0:21:40.520
by demanding the closure[br]of polluting industries.”

0:21:40.520,0:21:46.640
On the other hand, no neo-liberal[br]think tank with charitable status

0:21:46.640,0:21:49.200
has ever been interfered with.

0:21:49.200,0:21:54.760
During their annual declaration[br]to the Canadian government,

0:21:54.760,0:21:59.760
these “non-partisan” research[br]institutes solemnly state

0:21:59.760,0:22:04.200
that they “do not try[br]to influence public opinion

0:22:04.200,0:22:08.352
or obtain the modification[br]of a law or policy”.

0:25:13.560,0:25:22.150
How can the market promote[br]individual choice and freedom?

0:25:22.400,0:25:26.234
Student seminar,[br]The Fraser Institute on public policy,

0:25:26.480,0:25:29.711
organized jointly with[br]l’Institut Économique de Montréal …

0:25:29.960,0:25:31.837
Saturday, February 10, 2001 ,

0:25:32.080,0:25:35.550
sponsored by Fraser Institute[br]supporters throughout Québec”

0:25:37.120,0:25:39.350
When one grants coercive power,

0:25:39.600,0:25:41.989
the monopoly on coercive power,

0:25:42.120,0:25:45.476
to an agency,[br]one we call the government,

0:25:46.200,0:25:49.431
there will always be a tendency …

0:25:49.640,0:25:54.998
to use it, either ignorantly,[br]or to abuse this power.

0:25:55.480,0:25:59.029
And power has a tendency to grow.

0:25:59.800,0:26:04.794
What the Fraser Institute tries[br]to research and emphasize is,

0:26:05.360,0:26:08.989
what the proper limits[br]of government are,

0:26:09.200,0:26:13.113
and what are the limits[br]of private enterprise,

0:26:13.360,0:26:16.318
or of voluntary exchanges[br]between individuals?

0:26:17.080,0:26:22.393
Therein lies the nexus, the division,

0:26:22.600,0:26:28.516
between coercion and free will[br]that will inform my discussion …

0:26:28.760,0:26:33.595
my lecture today. And you’ll be[br]seeing lectures by others who came

0:26:33.840,0:26:35.831
to participate today.

0:26:36.040,0:26:37.268
SPECIAL LUNCHEON PRESENTATION

0:26:37.480,0:26:41.109
… from the Foundation for[br]Economic Education in New York.

0:26:41.360,0:26:43.635
In his presentation,[br]’Cleaned by Capitalism’,

0:26:43.880,0:26:48.715
this expert on liberty will discuss[br]how our rising standard of living

0:26:49.000,0:26:53.073
has allowed us the ‘luxury’[br]of worrying about such things

0:26:53.160,0:26:55.037
as global environmental issues.”

0:28:51.800,0:28:56.874
This seminar’s not government funded.[br]It’s financed by private sponsorship.

0:28:58.760,0:29:04.118
It’s encouraging to see people put[br]their money where their beliefs are.

0:29:05.200,0:29:08.510
I think there are[br]far too many services

0:29:08.760,0:29:13.470
like unemployment insurance,[br]health, education,

0:29:13.720,0:29:16.154
that fall under a monopoly,

0:29:16.280,0:29:20.876
that of the government, which is[br]the sole producer of these services.

0:29:21.320,0:29:24.153
Why not open it up[br]and have competition?

0:29:26.440,0:29:31.309
We could have competition[br]in the production of services,

0:29:31.520,0:29:34.751
and perhaps address[br]our concern for the poor

0:29:35.000,0:29:38.549
by giving them grants[br]so they can buy these services.

0:29:38.800,0:29:40.199
So, divide …

0:29:40.880,0:29:45.192
Separate production, which I’d like[br]to see private and competitive,

0:29:45.440,0:29:49.672
from funding, which could be[br]partly governmental.

0:29:56.360,0:30:01.912
I don’t like talking about markets.[br]They don’t exist without governments.

0:30:02.320,0:30:04.231
Every market needs rules.

0:30:04.520,0:30:08.399
Every market needs[br]a certain level of coercion.

0:30:10.120,0:30:14.636
And I don’t like talking about[br]freedom as a value in itself.

0:30:14.760,0:30:17.354
Many people don’t want freedom.

0:30:20.360,0:30:23.079
l’d like the freedom[br]to choose my masters.

0:30:24.680,0:30:25.908
What I try to …

0:30:27.760,0:30:29.990
discuss in my lectures is,

0:30:30.680,0:30:32.352
how can we …

0:30:34.440,0:30:38.911
have a system of government[br]that permits us the choice

0:30:39.560,0:30:42.757
of what kind of representatives[br]and restrictions we’ll choose.

0:30:43.000,0:30:47.551
We must all live under restrictions,[br]even the fiercest libertarians.

0:30:50.360,0:30:58.040
brief liberal anthology

0:30:58.040,0:31:05.674
libertarianism[br]and the theory of public choice

0:31:07.640,0:31:10.108
Le Québécois Libre[br]Editorial

0:31:10.360,0:31:12.590
What must libertarians do?”

0:31:12.840,0:31:15.195
Libertarianism is the descendent

0:31:15.440,0:31:18.113
of classic liberal philosophy.

0:31:18.320,0:31:21.118
It puts the accent[br]on individual freedom

0:31:21.640,0:31:25.918
and its repercussions. Economically,[br]it’s the free market. Politically,

0:31:26.160,0:31:30.119
it’s the minimal State[br]and the least coercion possible.

0:31:30.360,0:31:32.157
The least regulation …

0:31:33.720,0:31:37.759
It gives individuals as much[br]leeway as possible to act

0:31:37.960,0:31:40.793
and have willing relationships[br]with others.

0:31:41.040,0:31:43.554
Socially speaking as well, it’s …

0:31:44.120,0:31:50.150
the polar opposite of philosophies[br]that impose some social, religious …

0:31:50.960,0:31:53.520
or cultural order. The idea is,

0:31:53.760,0:31:59.517
if we are free in a context where[br]person and property are protected,

0:32:00.680,0:32:05.674
everyone will be able to have[br]voluntary relationships,

0:32:05.920,0:32:09.595
which will lead to harmony.[br]Libertarianism isn’t anarchy,

0:32:09.800,0:32:14.749
with individuals fighting,[br]“wild capitalism”, “wild competition”.

0:32:14.920,0:32:16.239
It’s not that at all.

0:32:16.440,0:32:22.231
It’s giving people enough space for[br]peaceful, voluntary relationships.

0:32:23.080,0:32:30.430
Neo-liberal, anarchist[br]or libertarian?

0:32:30.800,0:32:34.031
Libertarianism is the descendent[br]of classic liberalism,

0:32:34.280,0:32:39.274
a philosophy that was developed[br]in the 17th and 18th century

0:32:41.440,0:32:46.195
in reaction to the authoritarian[br]monarchies of the period.

0:32:46.440,0:32:49.000
Liberalism said,

0:32:49.200,0:32:53.193
to match sovereign power,[br]individuals must have more freedom.

0:32:53.480,0:32:57.314
This developed in subsequent[br]centuries to give us …

0:32:58.200,0:33:02.079
our current philosophy,[br]which embraces the free market …

0:33:02.680,0:33:05.672
But 20th-century libertarians

0:33:06.360,0:33:10.717
stand apart from liberals. The[br]definition of “liberal” has changed.

0:33:10.960,0:33:15.431
In the U.S. a liberal[br]is ultimately the reverse:

0:33:15.720,0:33:18.154
a social democrat or a leftist.

0:33:19.640,0:33:24.475
Europe keeps the French tradition,[br]where liberal means liberal.

0:33:24.720,0:33:29.032
But there’s a lot of confusion.[br]The Americans, the classic liberals,

0:33:29.320,0:33:33.438
started calling themselves[br]“libertarians” in the ’20s and ’30s

0:33:33.520,0:33:36.193
to stand apart from leftist liberals.

0:33:36.360,0:33:39.875
And libertarian philosophy[br]is more coherent and radical

0:33:40.120,0:33:41.838
than classic liberalism,

0:33:42.960,0:33:46.999
calling for State reduction,[br]either to its simplest form,

0:33:47.200,0:33:52.194
or certain libertarians even favour[br]eliminating the State altogether,

0:33:52.440,0:33:56.399
privatizing even defence,[br]security and justice.

0:33:56.840,0:34:04.394
Redistributing wealth is immoral

0:34:05.720,0:34:09.507
Today, in a society[br]where the State spends …

0:34:11.159,0:34:16.188
State expenditures represent[br]about 45% to 50% of the GDP.

0:34:16.400,0:34:19.551
The State controls such sectors[br]as education, health.

0:34:19.760,0:34:22.717
It controls a lot[br]and regulates other things.

0:34:22.920,0:34:26.435
It subsidizes almost everyone.[br]Much of the population …

0:34:28.159,0:34:31.596
lives only off[br]the redistribution of money.

0:34:31.880,0:34:37.159
They don’t produce goods demanded[br]by others on the free market.

0:34:37.400,0:34:41.996
They just receive State money[br]confiscated from other taxpayers.

0:34:42.760,0:34:45.274
This means there are many people …

0:34:46.800,0:34:51.271
who live at the expense of others.[br]From a libertarian standpoint,

0:34:52.040,0:34:56.636
society can be divided in two,[br]those who produce and those who live

0:34:56.880,0:35:01.032
as the producers’ dependents[br]and are a kind of parasite.

0:35:01.240,0:35:03.800
It’s a strong word,[br]but it’s appropriate.

0:35:04.880,0:35:09.476
You can’t favour individual[br]responsibility and defend that stance.

0:35:09.680,0:35:15.437
All who live dependently on others[br]are really irresponsible.

0:35:16.000,0:35:19.390
They don’t do anything required[br]and they live …

0:35:20.400,0:35:26.475
on State coercion, which transfers[br]wealth from one group to the other.

0:35:27.400,0:35:31.359
If we want to promote[br]freedom and responsibility,

0:35:32.440,0:35:36.956
we cannot accept the dependency[br]of much of the population.

0:35:39.000,0:35:45.320
The theory of public choice says[br]the adoption of government policies

0:35:45.320,0:35:48.880
is not motivated[br]by collective interests

0:35:48.880,0:35:54.400
but by the particular interests[br]of various social groups.

0:35:54.400,0:35:59.600
In 1986, James M. Buchanan,[br]originator of this theory,

0:35:59.600,0:36:05.040
who denounces State inefficiency and[br]advocates limited public spending,

0:36:05.040,0:36:08.635
won the “Nobel prize” for economics.

0:36:19.080,0:36:22.709
Contrary to the perception[br]being peddled here,

0:36:24.040,0:36:27.874
we in Québec live in a State culture.[br]People don’t realize

0:36:28.120,0:36:31.032
because we’re so inured[br]to this viewpoint,

0:36:31.240,0:36:34.869
that we naturally accept it,[br]but it’s actually a State culture

0:36:35.000,0:36:36.991
that naively perceives …

0:36:39.160,0:36:42.994
the State as the instrument[br]to maximize the common good.

0:36:44.120,0:36:46.395
As though the inspiration …

0:36:46.480,0:36:50.632
But that view or vision[br]of the State is perfectly …

0:36:53.800,0:36:57.509
angelic. It has nothing[br]to do with real governments.

0:36:58.960,0:37:02.919
Why do we believe our governments,[br]democratic as they are -

0:37:03.160,0:37:04.957
which is an advantage -

0:37:05.720,0:37:08.553
will maximize the common good?[br]They won’t.

0:37:08.760,0:37:12.355
Governments obey[br]the game rules that rule them.

0:37:13.320,0:37:16.551
What game rules?[br]The electoral process.

0:37:16.840,0:37:18.751
That’s the virtue of it.

0:37:19.240,0:37:22.357
What does this herald?

0:37:23.160,0:37:25.196
Primarily that …

0:37:25.560,0:37:28.074
we will often witness …

0:37:29.920,0:37:32.036
majority dictatorship.

0:37:32.880,0:37:38.591
Since the primary, if not sole,[br]rule in politics is the majority,

0:37:39.000,0:37:44.028
a government that can win elections[br]will first privilege the majority.

0:37:44.240,0:37:48.995
The majority’s incomes are weak[br]relative to the average.

0:37:50.560,0:37:53.836
So the sole object[br]of policies will be …

0:37:54.120,0:37:56.634
to redistribute wealth in its favour,

0:37:56.880,0:38:00.714
not to maximize wealth[br]or enhance growth.

0:38:01.400,0:38:04.676
Efficiency isn’t a major issue[br]for a government.

0:38:05.960,0:38:11.830
Its priority is redistributing wealth[br]to the majority that elects it.

0:38:11.920,0:38:14.912
That explains[br]universal social programs.

0:38:15.120,0:38:17.475
That explains …

0:38:19.400,0:38:22.756
the majority’s predilections[br]with regard to …

0:38:24.240,0:38:29.314
the public health[br]and education monopolies.

0:38:29.560,0:38:32.199
It’s not compassion,[br]nor a concern …

0:38:34.320,0:38:37.756
for sharing wealth[br]that inspires this position.

0:38:37.840,0:38:43.915
The majority wants services paid[br]by a slightly more affluent minority.

0:38:44.120,0:38:45.439
That’s the sense of it.

0:38:45.520,0:38:49.354
So, it’s a gigantic lie to say

0:38:50.640,0:38:53.996
that compassion inspires …

0:38:54.840,0:38:59.595
public health and education[br]monopolies. That’s not the reality.

0:38:59.880,0:39:04.476
The second dimension is that people,[br]i.e., the majority,

0:39:06.000,0:39:08.070
is rather apolitical.

0:39:09.160,0:39:12.311
In economics, it’s what we call[br]“rational ignorance”.

0:39:14.120,0:39:16.554
It would be stupid for each of us

0:39:17.400,0:39:20.790
to acquire lots of information[br]on politics,

0:39:21.000,0:39:26.120
to get informed on the impact on us[br]of more than just a few policies.

0:39:26.320,0:39:31.030
Because we can’t do anything.[br]We’re one voter out of X million.

0:39:31.280,0:39:35.114
So, informed or not,[br]whether we vote wisely or badly,

0:39:36.320,0:39:37.594
the result’s the same.

0:39:37.840,0:39:43.949
So, everyone must aim to minimize[br]the effort of understanding politics

0:39:44.040,0:39:46.793
and political information,[br]which they do.

0:39:46.920,0:39:49.593
People often can’t name their MP.

0:39:50.600,0:39:52.830
And they’d be incapable …

0:39:54.800,0:39:56.836
of explaining a policy.

0:39:57.240,0:40:00.391
To them, this is normal[br]because, again,

0:40:00.760,0:40:03.354
it would cost a lot to get informed,

0:40:03.600,0:40:07.559
whereas their potential[br]influence is nil.

0:40:07.960,0:40:12.988
So, people are apathetic, apolitical.[br]They don’t participate in politics

0:40:13.200,0:40:16.033
because it’s not worth it.

0:40:16.280,0:40:21.798
This opens the way for intervention[br]by strategically placed groups.

0:40:22.040,0:40:25.157
Interest groups.[br]That explains their dominance.

0:40:27.880,0:40:33.113
Organizations like the CSN or the[br]Canadian Manufacturers’ Association

0:40:33.360,0:40:38.275
are already prepared to do politics,[br]propaganda and lobbying,

0:40:38.680,0:40:43.037
at minimal cost because[br]they’re already organized.

0:40:43.280,0:40:48.035
So that means political decisions[br]will be dominated

0:40:48.280,0:40:51.716
by strategically placed people,[br]organized groups.

0:40:53.000,0:40:58.280
All the world’s great governments -[br]today’s and yesterday’s -

0:40:58.280,0:41:05.640
have merely been gangs of thieves,[br]come together to pillage, conquer

0:41:05.640,0:41:09.280
and enslave their fellow men.

0:41:09.280,0:41:14.920
And their laws, as they call them,[br]represent only those agreements

0:41:14.920,0:41:21.160
they deemed it necessary to enter[br]in order to keep their organization

0:41:21.160,0:41:25.720
and act together in plundering[br]and enslaving others,

0:41:25.720,0:41:31.400
and securing to each[br]his agreed share of the spoils.

0:41:31.400,0:41:37.320
These laws impose no more real[br]obligation than do the deals

0:41:37.320,0:41:43.160
that brigands, bandits and pirates[br]find it necessary to enter into

0:41:43.160,0:41:45.000
with each other.”

0:41:45.000,0:41:50.552
- Natural Law, or the Science[br]of Justice, 1882 (paraphrased)

0:41:52.600,0:41:58.630
lf we look objectively at the facts,[br]the State is a coercive institution.

0:41:58.880,0:42:02.555
The State can only operate[br]by forcibly imposing things.

0:42:02.760,0:42:03.715
For example,

0:42:05.360,0:42:08.511
when the State has[br]a monopoly like Hydro-Québec,

0:42:08.760,0:42:12.878
if I decide to produce[br]and sell electricity

0:42:14.320,0:42:17.312
and I’m outside the monopoly,[br]ultimately,

0:42:17.840,0:42:22.914
they won’t just slap my wrists for[br]breaking the rules. I’ll go to jail

0:42:23.160,0:42:27.597
if I persist in doing something[br]the State prohibits by regulation.

0:42:27.840,0:42:31.833
The State will physically assault me[br]if I offer a service

0:42:33.400,0:42:38.428
that the statesmen[br]have decided to monopolize.

0:42:38.680,0:42:42.070
All the State does[br]when it steals half our salary -

0:42:42.320,0:42:44.709
sorry, but no one asked[br]my opinion about it,

0:42:45.000,0:42:48.356
so half my salary’s stolen …[br]It could be said that,

0:42:48.560,0:42:54.112
democratically, we elected people[br]who decided that for us,

0:42:55.080,0:42:59.596
but democracy is[br]the “peaceful” organization

0:42:59.800,0:43:01.756
of the State’s thievery.

0:43:02.520,0:43:07.548
I didn’t vote to have half my salary[br]lifted, but many are interested -

0:43:07.760,0:43:11.435
because they live[br]at the expense of the State -

0:43:11.680,0:43:15.070
in having the State take half[br]and giving it to them.

0:43:15.240,0:43:18.550
So, democracy isn’t true freedom.

0:43:19.360,0:43:23.831
I’m not anti-democratic in the sense[br]of being for an authoritarian State,

0:43:23.920,0:43:27.993
When you speak against democracy,[br]you’re always seen as favouring

0:43:28.240,0:43:32.472
an authoritarian State.[br]On the contrary, I’m for a State

0:43:32.600,0:43:35.512
that’s absolutely non-authoritarian,[br]to the point where

0:43:35.760,0:43:40.356
it doesn’t even justify its actions[br]on the basis of democracy.

0:43:40.600,0:43:44.036
Individual freedom does not equal[br]democratic freedom.

0:43:44.240,0:43:49.678
Democratically giving people[br]the power to take and impose things,

0:43:50.800,0:43:52.870
contradicts individual freedom.

0:43:53.520,0:43:58.719
A true defence of individual freedom[br]doesn’t favour more democracy,

0:43:58.960,0:44:01.838
more ways of divvying up

0:44:02.760,0:44:05.194
resources that have been[br]stolen from others.

0:44:05.400,0:44:11.430
We’re for reducing the State’s role[br]so individuals are altogether free,

0:44:11.880,0:44:17.318
not to decide[br]which fox they’ll vote in

0:44:17.520,0:44:21.479
to raid the hen house, but to decide[br]what to do with their property.

0:44:25.000,0:44:29.039
The incentives incorporated[br]into social policies are harmful,

0:44:29.160,0:44:31.993
both to the poor,[br]and to the general population.

0:44:32.120,0:44:37.672
What I mean by that is,[br]we have a public social economy

0:44:38.520,0:44:41.717
in parallel with[br]the capitalist market economy.

0:44:41.960,0:44:46.590
One is productive. The other is[br]based on the former-USSR model

0:44:47.760,0:44:52.993
and comprises incentives that[br]hurt everyone. We reward people …

0:44:53.120,0:44:56.635
for not working.[br]We compensate them

0:44:56.840,0:44:59.434
for not having stable families.

0:45:01.440,0:45:04.193
Welfare for single mothers …

0:45:04.400,0:45:07.597
is a way of multiplying births[br]outside the family.

0:45:07.840,0:45:12.311
And we reward poverty.[br]It’s as radical as that.

0:45:12.440,0:45:18.709
Poverty obeys the standard rules:[br]subsidies make it more prevalent,

0:45:18.960,0:45:21.758
because people start liking it.

0:45:22.680,0:45:27.629
This has been clear in Ontario[br]and the U.S. over the past 5 years,

0:45:27.800,0:45:29.756
where they really imposed

0:45:30.280,0:45:32.669
limits to people’s access

0:45:33.520,0:45:35.875
to welfare payments,

0:45:36.120,0:45:40.955
and the population of poor people[br]fell by half in a few years!

0:45:41.600,0:45:44.956
Because there was no more money,[br]conditions changed,

0:45:45.080,0:45:48.868
work was imposed on them,[br]whatever the methods were.

0:45:55.680,0:46:00.390
So, there are ways[br]to foster people’s reinsertion

0:46:00.600,0:46:03.068
into the productive economy.

0:46:03.560,0:46:07.838
Instead of piling them[br]into social housing, ghettos,

0:46:08.560,0:46:10.118
where everyone’s poor,

0:46:10.360,0:46:15.354
if they were given vouchers or stamps[br]that gave them access to property,

0:46:16.120,0:46:19.829
instead of subsidizing unemployment,

0:46:21.320,0:46:24.949
as with unemployment insurance.[br]People are subsidized

0:46:25.200,0:46:28.829
to be unemployed.[br]Otherwise, no subsidy.

0:46:30.600,0:46:33.592
We could create[br]unemployment savings funds,

0:46:33.840,0:46:37.469
so people could accumulate a hedge,

0:46:38.120,0:46:40.680
sheltered from tax,[br]even subsidized,

0:46:41.200,0:46:45.239
in case they lose their job.[br]Everyone would then be careful

0:46:46.280,0:46:51.593
not to lose their job because[br]they’d be eating into their own fund,

0:46:51.840,0:46:55.080
the beneficiary of their own savings.

0:46:55.080,0:46:59.676
Lots of ideas. But our social[br]policies are really built

0:47:00.400,0:47:05.520
to create an industry of poverty,[br]an industry of dependence,

0:47:05.640,0:47:09.315
that benefits all the bureaucrats[br]who gravitate around it

0:47:09.480,0:47:13.359
and encourage dependence[br]in the population,

0:47:13.560,0:47:15.437
as well as political support,

0:47:18.080,0:47:21.470
with no long-term effect[br]across the country.

0:47:21.720,0:47:24.188
Social policies[br]haven’t diminished poverty.

0:47:24.920,0:47:29.391
That’s the final diagnosis[br]of the matter.

0:47:42.560,0:47:44.232
We observe …

0:47:45.080,0:47:46.308
that growth …

0:47:49.400,0:47:52.870
Historically and from[br]country to country,

0:47:53.080,0:47:57.198
the growth of economies’ revenues[br]is the only means

0:47:58.200,0:47:59.553
to help the poor.

0:48:01.680,0:48:04.717
We have rigorous data about this.

0:48:05.080,0:48:07.913
The only variable that affects …

0:48:09.520,0:48:12.034
that reduces poverty

0:48:12.480,0:48:14.914
in various countries

0:48:15.160,0:48:17.276
is the growth of wealth.

0:48:17.520,0:48:20.318
Social policies count for nothing!

0:48:21.800,0:48:24.394
So, whoever is concerned

0:48:26.200,0:48:29.317
about helping the poor[br]or underprivileged

0:48:29.520,0:48:32.193
must also privilege growth.

0:48:33.800,0:48:37.190
Consequently, all those[br]who oppose free trade

0:48:37.680,0:48:42.231
on behalf of poor countries,[br]or of the poor within countries,

0:48:42.480,0:48:45.790
are wrong.[br]Their observations are mistaken.

0:48:47.440,0:48:49.590
The facts contradict their options.

0:48:49.840,0:48:54.550
The best help is to open trade[br]so everyone’s income goes up.

0:48:54.760,0:48:59.151
Statistically, the income of the poor[br]increases as fast as anyone’s

0:48:59.400,0:49:03.712
when revenues go up. To achieve this,[br]the economy must be opened up.

0:49:04.280,0:49:06.236
Beyond that,

0:49:07.280,0:49:11.239
beyond helping the poor[br]with measures that might help,

0:49:11.920,0:49:15.230
I don’t see any …

0:49:15.360,0:49:18.158
basis for redistributing wealth.

0:49:20.400,0:49:23.676
The government[br]redistributes a lot of wealth

0:49:24.720,0:49:29.430
in favour of the middle class,[br]because it’s the decisive majority.

0:49:29.680,0:49:34.879
But not on any moral basis.[br]The only social justice, if I may,

0:49:35.080,0:49:37.196
is the respect for property rights.

0:49:38.600,0:49:41.194
Libertarians believe[br]public goods don’t exist.

0:49:42.240,0:49:46.597
The notion’s a fallacy[br]to justify State intervention.

0:49:46.840,0:49:51.994
The logic is, there are always[br]external factors, like pollution.

0:49:52.240,0:49:56.153
We cannot produce without making[br]smoke, which falls on our neighbour,

0:49:57.560,0:50:00.074
or residues that will have to …

0:50:00.280,0:50:04.751
go into the river.[br]But the reason this happens is

0:50:05.520,0:50:09.593
there’s no property right[br]over water, for example.

0:50:10.360,0:50:12.032
Rivers are public.

0:50:14.520,0:50:17.990
Hence,[br]during the entire 19th century,

0:50:19.320,0:50:22.118
companies were allowed[br]to pollute rivers,

0:50:22.360,0:50:26.717
and until very recently[br]this was done because the State

0:50:27.080,0:50:31.676
controlled the river. It was[br]a public State-controlled resource

0:50:31.920,0:50:36.357
and the State let private companies[br]pollute the river.

0:50:37.000,0:50:41.994
But if the river had been privatized[br]and each of its owners

0:50:43.240,0:50:47.438
had had to be consulted[br]for permission for the company

0:50:48.280,0:50:51.238
to put effluents into the river,[br]we can be quite sure

0:50:51.440,0:50:54.716
things would’ve been different.[br]Or it might’ve happened,

0:50:54.960,0:50:59.351
if the company had paid[br]the true price for polluting,

0:51:01.160,0:51:04.197
i.e., paid the owners[br]for polluting their resource.

0:51:04.440,0:51:07.910
Resource allocation[br]would’ve been very different.

0:51:08.200,0:51:10.350
There would’ve been emphasis

0:51:11.960,0:51:14.394
on alternative solutions.

0:51:14.640,0:51:18.679
Companies would’ve invested more[br]in technological solutions,

0:51:18.920,0:51:22.799
or arranged to pollute[br]in very targeted places

0:51:23.120,0:51:27.716
owned by someone who would accept[br]pollution in exchange for payment.

0:51:27.920,0:51:31.708
Production priorities would’ve been[br]reorganized differently.

0:51:33.560,0:51:38.350
So, “public goods” exist[br]only because the State

0:51:39.600,0:51:41.830
distorts production

0:51:42.840,0:51:46.230
by nationalizing certain assets,[br]or the environment itself.

0:52:01.520,0:52:05.149
Historically, liberalism[br]represented a progression.

0:52:05.400,0:52:08.551
But classic liberalism[br]as championed by Adam Smith,

0:52:08.760,0:52:13.436
founder of political economics,[br]has very little to do

0:52:13.680,0:52:18.595
with what’s presently circulating as[br]the “liberalism” in neo-liberalism.

0:52:18.840,0:52:21.434
It has almost nothing to do[br]with classic liberalism.

0:52:21.600,0:52:25.673
So, historically liberalism was[br]a progression, in that it was …

0:52:25.960,0:52:29.111
a way of contesting[br]absolute monarchies,

0:52:29.240,0:52:31.959
and giving individuals rights.

0:52:32.120,0:52:36.352
Among these rights,[br]in the liberalism of Locke and Smith,

0:52:36.600,0:52:41.355
were private property rights.[br]That’s a progression.

0:52:41.640,0:52:44.518
But it’s not absurd[br]to think that even anarchism …

0:52:44.760,0:52:50.630
is a child of liberalism. Early[br]liberalism was somewhat radical,

0:52:50.840,0:52:57.029
and today’s “liberal” thinkers would[br]make Adam Smith roll in his grave,

0:52:57.280,0:53:02.229
because he wouldn’t recognize much[br]in what’s now passing for liberalism.

0:53:02.480,0:53:04.675
Take the case of private property.

0:53:04.840,0:53:11.518
lf it stems from interactions driven[br]by transnational corporations,

0:53:11.760,0:53:15.912
at the core and in the framework[br]of classic liberalism,

0:53:16.120,0:53:19.396
this is unthinkable.[br]It’s a fallacy to think

0:53:19.640,0:53:25.351
that private tyrannies like GM[br]or Bombardier can have rights,

0:53:26.040,0:53:29.919
either property rights or rights[br]that transcend human beings.

0:53:30.200,0:53:35.479
On the other hand, the question[br]of property rights is a hard one.

0:53:35.680,0:53:38.513
It’s important to ask.[br]There’s no simple answer.

0:53:38.800,0:53:42.236
Nevertheless, I’m sure that,[br]even in the context of liberalism,

0:53:42.800,0:53:47.590
one cannot place current practices,[br]agents such as transnationals,

0:53:47.840,0:53:52.038
and their accepted rights,[br]within a classically liberal model.

0:53:52.280,0:53:54.316
Property rights must be reconsidered.

0:53:54.520,0:53:59.071
My opinions about it[br]are those of classic anarchism:

0:53:59.280,0:54:03.193
private ownership of means[br]of production seems aberrant.

0:54:03.280,0:54:06.113
But what Proudhon calls “possession”[br]has a place.

0:54:06.320,0:54:07.719
Ownership rights are healthy.

0:54:07.960,0:54:13.956
But the current, ersatz “liberal”[br]or “neo-liberal” doctrine is absurd.

0:54:14.160,0:54:16.754
Let’s suppose that, in our world,

0:54:16.960,0:54:19.633
someone can appropriate,

0:54:20.120,0:54:25.353
by the means one normally acquires[br]property rights over anything …

0:54:25.640,0:54:30.475
Suppose someone like me[br]appropriates by accepted legal means

0:54:31.240,0:54:35.552
elements that are essential[br]to everyone’s life.

0:54:35.760,0:54:38.957
People like you could die[br]or sell out to me.

0:54:39.200,0:54:42.954
Current neo-liberalism would[br]recognize such a society as just.

0:54:43.160,0:54:47.676
It’s clearly aberrant. Such questions[br]can’t be answered as simplistically

0:54:47.880,0:54:52.829
as our world would have it. But it’s[br]a tough question. I choose to think

0:54:53.080,0:54:58.438
production means can’t be private but[br]ownership of things we use is good.

0:58:21.160,0:58:25.676
Free trade[br]is a very beautiful concept,

0:58:27.280,0:58:30.670
and, as it was imagined[br]in the 18th century,

0:58:30.920,0:58:35.596
it certainly had merits,[br]because it’s very logical to say

0:58:36.080,0:58:39.072
you must produce better[br]and more cheaply,

0:58:39.280,0:58:41.748
and trade with others[br]who’ll do the same.

0:58:41.960,0:58:46.158
Instead of making wine in England,[br]buy it from Portugal.

0:58:46.400,0:58:49.915
The Portuguese[br]will buy your woollens.

0:58:50.160,0:58:52.913
That’s Riccardo’s original example.

0:58:54.880,0:58:58.873
But the great 18th-century[br]theoreticians never imagined

0:58:59.320,0:59:03.074
that capital itself would be free[br]to go where it wanted,

0:59:03.640,0:59:09.033
and an American or British company[br]could go invest in China,

0:59:10.320,0:59:13.790
take advantage[br]of repression in China,

0:59:15.800,0:59:20.316
which rejects unions[br]and so has extremely low wages,

0:59:20.520,0:59:24.559
could “externalize”[br]all the environmental costs,

0:59:24.800,0:59:30.318
make society and the whole planet pay[br]because it pollutes but it’s cheaper.

0:59:31.240,0:59:34.471
So, instead of having[br]a “comparative” advantage -

0:59:34.760,0:59:39.197
I make wine cheaper than you,[br]you make woollens cheaper than me -

0:59:39.440,0:59:42.557
it becomes an absolute advantage[br]because …

0:59:43.160,0:59:46.869
my capital is free[br]to roam wherever it finds

0:59:46.960,0:59:50.635
the best conditions for profit.

0:59:51.480,0:59:54.597
This is what warps trade practices,

0:59:54.840,0:59:59.038
and makes the transnationals[br]naturally want

0:59:59.440,1:00:03.513
the greatest possible freedom[br]for themselves.

1:00:03.960,1:00:06.918
But there’s no question[br]of labour circulating,

1:00:07.160,1:00:10.470
except for our “contemporary nomads”-

1:00:10.720,1:00:13.678
highly qualified personnel,

1:00:13.880,1:00:18.476
covered under service agreements,[br]since they have the right

1:00:18.640,1:00:22.076
to circulate freely[br]and set up where they want,

1:00:22.160,1:00:24.879
whereas the common mortal does not.

1:00:25.920,1:00:31.120
December 17, 1992.[br]U.S. president, George H. W. Bush,

1:00:31.120,1:00:35.880
signed the North American[br]Free Trade Agreement (NAFTA)

1:00:35.880,1:00:38.314
with Canada and Mexico.

1:00:44.120,1:00:47.440
Fourteen years later,[br]on October 26, 2006,

1:00:47.440,1:00:52.280
his son, George W. Bush[br]promulgated the Secure Fence Act.

1:00:52.280,1:00:56.280
This law authorizes[br]the construction of a double wall,

1:00:56.280,1:01:01.280
4.5 meters high and 1,200 km long,[br]along the Mexican border.

1:01:01.280,1:01:08.120
It is also outfitted with[br]the latest surveillance technology:

1:01:08.120,1:01:12.716
watchtowers, cameras,[br]ground sensors, drones, etc.

1:01:25.240,1:01:31.315
The theory of comparative advantage[br]posits international specialization.

1:01:32.400,1:01:37.269
It says nations must specialize[br]according to comparative advantages.

1:01:37.680,1:01:39.830
It’s a purely static theory.

1:01:40.080,1:01:43.993
Pawns are shifted around a box[br]without questioning the box’s form,

1:01:44.080,1:01:48.471
or whether the box evolves[br]with the pawn configuration.

1:01:49.040,1:01:53.511
The theory’s purely immediate.[br]So, why doesn’t it work?

1:01:54.000,1:01:58.710
Because international trade[br]isn’t just neutral exchange,

1:01:58.960,1:02:04.876
where the nice Natives trade[br]with the charming conquistadors.

1:02:05.120,1:02:07.395
It doesn’t work like that[br]and it never did.

1:02:07.640,1:02:11.838
The conquistadors kill everyone.[br]Then trade comes in

1:02:12.080,1:02:16.232
as Phase Two of pacification.[br]But in international trade,

1:02:16.440,1:02:20.479
which is the matrix of business …[br]That’s another preconceived notion.

1:02:20.600,1:02:26.675
Trade’s not intra-village, then city,[br]region, nation. Then international.

1:02:27.240,1:02:30.118
It never worked that way.[br]Quite the contrary.

1:02:30.360,1:02:33.796
International business[br]follows the military,

1:02:34.000,1:02:40.314
it follows predation. Then comes[br]an inward pacification process.

1:02:46.120,1:02:48.873
The “invisible hand” theory[br]is quite extraordinary.

1:02:49.120,1:02:52.510
First, it wagers that men are bad.

1:02:53.400,1:02:57.313
It’s quite lucid. It says,[br]we’ll work with that.

1:02:57.560,1:02:59.835
People are self-centred, greedy,

1:02:59.960,1:03:03.714
mean and self-interested.[br]They dislike collectives.

1:03:03.920,1:03:07.390
They’re unsupportive,[br]anti-social, narcissistic.

1:03:07.600,1:03:11.593
Let’s say this kind of flaw[br]turns into …

1:03:13.040,1:03:16.476
an advantage[br]for the collective and society.

1:03:17.080,1:03:21.995
Let them go. Public happiness will[br]arise from their egoistic antagonism.

1:03:22.280,1:03:25.317
That’s the invisible hand.[br]The idea is that

1:03:25.560,1:03:31.510
every time one intervenes,[br]tries to order this ego antagonism,

1:03:33.240,1:03:37.916
the system gets disrupted and worse.[br]One great reactionary thesis

1:03:38.160,1:03:43.109
is the argument of perverse effect.[br]Hirschmann said it. It’s great.

1:03:43.400,1:03:46.278
The reactionary rightists

1:03:46.520,1:03:50.115
have always accused leftists[br]of causing evil by doing good.

1:03:50.360,1:03:54.273
You want to do good, help the poor,[br]you’ll create a lot of poverty.

1:03:54.520,1:03:59.389
The Economist published an amazing[br]picture after the Seattle summit.

1:04:00.600,1:04:05.879
It showed starving Third-World people,[br]African children, labelled,

1:04:06.680,1:04:09.274
Victims of the Seattle failure.

1:04:09.520,1:04:13.991
That is vile![br]Worse than the Benetton ads.

1:04:14.240,1:04:17.949
The message was, you played[br]around at hindering the WTO.

1:04:18.160,1:04:22.756
To what end? You created[br]poor, unhappy, starving people.

1:04:22.960,1:04:26.919
Whereas this system creates[br]the poor, starving, unhappy.

1:04:28.880,1:04:31.235
The invisible hand says, let it be.

1:04:31.480,1:04:34.278
You can’t fix it. Man is unkind, bad.

1:04:34.520,1:04:37.717
Only wickedness can stop wickedness.

1:04:38.720,1:04:42.713
Put two bad guys together,[br]it balances out. Laissez-faire.

1:04:42.920,1:04:46.390
Economists have been studying[br]the invisible hand since 1776.

1:04:46.520,1:04:50.832
So they’ve been studying[br]this problem for quite a while.

1:04:52.720,1:04:56.508
For it to work, men have[br]to be separate. Autonomous.

1:04:57.520,1:05:02.435
No relationships, no collectives.[br]Only their own rationality,

1:05:02.960,1:05:07.636
separate from others’, individual.[br]Absolute individualism.

1:05:07.840,1:05:11.310
The second condition[br]is perfect information.

1:05:11.520,1:05:15.911
Omniscience about future events[br]for centuries to come …

1:05:17.880,1:05:21.031
Second condition.[br]Now, what’s the third …

1:05:22.920,1:05:26.754
Perfect information …[br]and thirdly,

1:05:27.320,1:05:32.917
no uncertainty, like a storm,[br]chance, Ariane breaking down

1:05:33.120,1:05:36.396
on the 25th flight and not the 3rd.

1:05:37.600,1:05:41.149
The world must be hazard-free,[br]which is corollary to saying

1:05:41.400,1:05:45.075
perfect foresight is necessary.[br]Under these conditions,

1:05:46.920,1:05:52.233
the invisible hand might work,[br]but it’s not even sure,

1:05:52.520,1:05:55.560
for it’s important to know[br]that liberal economists -

1:05:55.560,1:06:00.793
the greatest, most mathematical,[br]most prestigious, Nobel winners -

1:06:01.520,1:06:06.116
have shown for about 25 years,

1:06:06.960,1:06:13.308
that the invisible hand theorem[br]doesn’t work. It’s bullshit.

1:06:13.640,1:06:17.189
They’ve shown it.[br]Many suspected as much.

1:06:17.480,1:06:20.552
Keynes suspected it for a long time[br]because he thought

1:06:20.800,1:06:24.031
the idea of equilibrium[br]was inapplicable to economy,

1:06:24.480,1:06:28.678
It was more disequilibrium -[br]economy was fundamentally chaotic.

1:06:29.240,1:06:34.598
But the pure, hard, mean, liberal,[br]most prestigious economists,

1:06:34.840,1:06:38.879
draped in the prestige[br]of the most hard-nose science,

1:06:39.120,1:06:43.193
starting with Nobel winner,[br]Gérard Debreu, 25 years ago,

1:06:44.600,1:06:49.674
have said it doesn’t work. Markets[br]don’t mean equilibrium or efficiency.

1:06:50.320,1:06:55.872
Markets don’t mean equilibrium, so[br]supply-and-demand means nothing.

1:06:56.040,1:07:00.238
And they’re not efficient, so[br]laissez-faire is the worst solution.

1:07:03.320,1:07:07.836
Thank you, liberal gentlemen. Kind of[br]you to say so. We thought as much.

1:07:08.080,1:07:13.200
So anyone who says “invisible hand”,[br]“supply and demand”, “equilibrium” …

1:07:13.320,1:07:16.517
is either a crook (not uncommon),

1:07:16.760,1:07:20.639
or hides his eyes (also happens),[br]someone who’s wilfully blind,

1:07:21.400,1:07:24.198
or Sartre’s “bastard” -[br]who knows but stays silent,

1:07:24.440,1:07:27.432
or an incompetent. They exist too.

1:09:55.320,1:10:00.633
Adam Smith, David Riccardo,[br]Karl Marx, John Stuart Mill,

1:10:00.880,1:10:02.154
Malthus, more or less -

1:10:03.280,1:10:07.034
all the classic figures[br]in the creation of economics

1:10:07.160,1:10:10.391
incorporated social thought.[br]They were social philosophers

1:10:10.640,1:10:13.108
more than “pure” economists.

1:10:13.360,1:10:17.990
But the neo-classics - Auguste[br]and Léon Walras, father and son,

1:10:18.520,1:10:20.476
mid- to late-19th century,

1:10:20.560,1:10:25.236
inaugurated a kind of economics[br]that calls itself scientific.

1:10:25.840,1:10:30.277
In doing so, it dispenses with[br]all moral or philosophical thought.

1:10:30.840,1:10:34.958
So it evacuates all the concerns[br]the classics had until Karl Marx,

1:10:35.240,1:10:37.993
which were the following:

1:10:38.240,1:10:43.439
Who makes money and why?[br]Has he the right to make so much?

1:10:44.280,1:10:46.316
Is this fair? Unfair?

1:10:46.440,1:10:51.116
Is it good for the community or bad?[br]Economics had an ethical dimension.

1:10:51.480,1:10:54.950
And this was evacuated[br]with neo-classical thought.

1:10:55.280,1:10:59.398
This neo-classicism opened the way[br]for neo-liberal thought.

1:11:00.080,1:11:05.279
Neo-liberalism then added[br]to neo-classicism’s kind of …

1:11:06.360,1:11:10.319
scientific decree (We are a science,[br]so we imitate physics.):

1:11:10.680,1:11:13.592
We notice money goes[br]from here to there.

1:11:13.840,1:11:16.229
We count, observe, classify.

1:11:16.680,1:11:19.069
But we refrain from casting judgment,

1:11:19.320,1:11:23.313
because physics, the mother[br]of all sciences, does not judge.”

1:11:23.560,1:11:27.553
Economics’ strength is that it[br]comes as obvious, neutral truth -

1:11:27.720,1:11:31.030
a neutral discourse[br]that speaks neither good nor evil,

1:11:31.280,1:11:35.319
that is scientific,[br]with all the neutrality of science,

1:11:35.400,1:11:37.470
that comes across as normal.

1:11:38.040,1:11:42.431
Putting pressure on wages[br]to cut inflation is obviously normal.

1:11:42.680,1:11:44.671
Obviously we can’t have inflation.

1:11:44.920,1:11:48.708
No matter if this generated[br]phenomenal inequality,

1:11:49.560,1:11:51.835
led certain peoples into destitution,

1:11:52.080,1:11:54.594
created disparities[br]between north and south,

1:11:54.840,1:11:58.435
created a caste of rich people[br]taking up the foreground,

1:11:58.600,1:12:01.637
eradicating State power,[br]breaking social security.

1:12:01.840,1:12:05.276
Despite all this,[br]there is but one obvious truth:

1:12:05.520,1:12:07.590
You can’t be pro-inflation!?

1:12:08.920,1:12:13.516
But if we look at truth and history,[br]we see that those rare times

1:12:13.760,1:12:16.672
when capital was muzzled,[br]as in the glorious ’30s,

1:12:16.880,1:12:20.839
were inflationary periods[br]when wages could increase,

1:12:21.080,1:12:25.676
because people who borrowed[br]for houses, etc., due to inflation,

1:12:25.960,1:12:29.111
managed to pay off debt quickly.

1:12:29.720,1:12:32.029
Now, it’s an economy of the rich.

1:12:32.240,1:12:36.233
One could ask,[br]“You want the rich to run the world?”

1:12:37.080,1:12:39.719
instead of,[br]“Surely, you’re against inflation?”

1:12:42.080,1:12:47.120
To impose their ideology,[br]neo-liberals have, over the years,

1:12:47.120,1:12:52.160
developed a relentless strategy,[br]thought encirclement.

1:12:52.160,1:12:59.280
This strategy rests in large part[br]on the actions of a global network

1:12:59.280,1:13:02.080
of propaganda, intoxication[br]and indoctrination

1:13:02.080,1:13:07.520
that can make its polymorphous voice[br]heard in all forums.

1:13:07.520,1:13:11.240
Largely conceived in think tanks,

1:13:11.240,1:13:17.480
neo-liberal propaganda subsequently[br]branched out in many ways.

1:13:17.480,1:13:22.759
Education became[br]one of the most important branches.

1:13:23.760,1:13:23.880
propaganda and indoctrination

1:13:23.880,1:13:31.440
propaganda and indoctrination

1:13:31.440,1:13:37.117
education

1:13:39.280,1:13:42.511
The idea of national education[br]arose in the 18th century.

1:13:42.720,1:13:46.713
In the wake of the French Revolution[br]and European nation-states,

1:13:46.800,1:13:48.472
there arose the idea …

1:13:49.120,1:13:54.114
that a public democratic space[br]implied people who were informed,

1:13:54.560,1:13:59.031
and who were skilled[br]at thinking, discussing,

1:13:59.280,1:14:03.478
participating in political discourse.[br]There were 2 institutions for this

1:14:03.720,1:14:09.431
to ensure that people could become[br]“citizens”, as they said at the time:

1:14:09.680,1:14:15.835
Education, one important function[br]of which was to train citizens,

1:14:16.080,1:14:18.548
prepare citizens.[br]And then, the media.

1:14:18.800,1:14:21.712
We’ll discuss that later.[br]As for education,

1:14:21.960,1:14:27.637
one of its mandates - not that it was[br]implemented or realized very well -

1:14:27.840,1:14:30.673
but a mandate of education[br]was to train citizens,

1:14:30.920,1:14:34.435
empower people to take part[br]in political debate

1:14:34.720,1:14:38.952
and reflect on political questions[br]beyond their own interests.

1:14:39.200,1:14:42.431
That was the main thing.[br]Not to think about politics,

1:14:42.600,1:14:46.832
or economic and social debates,[br]from a self-serving standpoint,

1:14:47.080,1:14:50.959
but from the standpoint of the[br]public good and collective interests.

1:14:51.600,1:14:53.397
Education cultivated this.

1:14:53.640,1:14:58.430
But in the so-called “neo-liberal”[br]changes of the past 30 years,

1:14:58.640,1:15:03.953
the dominant institutions realized[br]education was an important issue,

1:15:04.200,1:15:08.352
and important to appropriate.[br]Is what I’m saying right?

1:15:08.560,1:15:13.156
Are they penetrating education?[br]Anyone who looks knows it is.

1:15:13.280,1:15:16.033
From primary school to university,[br]it varies according to country.

1:15:16.240,1:15:19.118
It’s different in the U.S.,[br]Canada, Québec, France.

1:15:19.360,1:15:22.750
It depends on the history[br]of how each system developed.

1:15:22.920,1:15:28.790
But we see massive penetration[br]on the part of private industry

1:15:29.040,1:15:31.793
into the education system. Why?

1:15:32.040,1:15:34.235
The answers are quite simple.

1:15:34.400,1:15:37.119
Education’s a very profitable market.

1:15:37.280,1:15:41.956
It’s interesting to appropriate this[br]piece of social and economic activity

1:15:42.240,1:15:46.074
because it’s profitable. And it lets[br]children’s minds be appropriated.

1:15:46.320,1:15:49.392
It’s as blunt as that.[br]Educating is seizing minds.

1:15:52.360,1:15:56.911
Being able to take hold of children’s[br]minds is extremely crucial, serious.

1:15:57.160,1:16:02.553
It requires a strong justification[br]and I’m not sure we can give it one.

1:16:02.800,1:16:07.191
When companies infiltrate education,[br]they’re aiming for children’s minds,

1:16:07.440,1:16:10.398
and to transform the subjects taught.

1:16:10.640,1:16:15.873
That’s when training deviates from[br]citizenship and sense of common good

1:16:16.120,1:16:22.036
towards the interests of the[br]businesses appropriating education.

1:16:22.400,1:16:27.315
Seeing the world through culture,[br]knowledge, outside of oneself,

1:16:27.560,1:16:31.235
is different than from the viewpoint[br]of what a company gives us.

1:16:31.440,1:16:33.556
The latter element’s always there.

1:16:33.800,1:16:36.951
Appropriation of a market,[br]of children’s minds,

1:16:37.200,1:16:41.239
and preparation for labour.[br]From this perspective,

1:16:41.480,1:16:45.314
education will increasingly[br]lose its other functions -

1:16:45.440,1:16:49.592
preparation for civic life,[br]openness to the world,

1:16:49.840,1:16:54.356
the pure pleasure of understanding[br]and knowledge for its own sake -

1:16:54.600,1:16:57.433
to orient towards[br]market enslavement,

1:16:57.640,1:17:02.350
the preparation of subjects[br]taught for economic functions.

1:17:02.600,1:17:04.636
Education will become

1:17:04.840,1:17:08.719
a prelude to mercantile life,[br]and to employment.

1:17:08.960,1:17:10.279
That’s also very troubling.

1:17:10.520,1:17:14.832
We’ve seen transformations like this[br]for about 20 years.

1:17:15.080,1:17:18.436
With some resistance.[br]As this phenomenon arises,

1:17:18.720,1:17:21.075
so does resistance to it, luckily.

1:17:24.840,1:17:28.037
Channel One is an American company,

1:17:28.840,1:17:31.991
now listed on the stock market.[br]It launched a project

1:17:32.200,1:17:35.749
where they go into[br]underfunded schools and say,

1:17:35.920,1:17:39.993
Since you have no supplies,[br]we’ll furnish you with TV’s, VCR’s

1:17:40.240,1:17:44.916
in exchange for which,[br]you’ll screen for 20 minutes a day

1:17:45.160,1:17:50.871
our educational videos.” -[br]current issues shows for children.

1:17:51.120,1:17:54.590
Their interest in this[br]is the captive clientele.

1:17:54.800,1:18:00.477
Throughout the X minutes of[br]proposed programming, there are ads.

1:18:00.720,1:18:03.029
They add a few minutes of publicity

1:18:03.200,1:18:08.752
that allows advertisers to address,[br]in an extremely privileged context,

1:18:08.880,1:18:11.075
this captive clientele.

1:18:11.320,1:18:14.710
This is strong in the U.S.[br]Here, it has been tried.

1:18:14.960,1:18:18.032
The company in Canada[br]was called Athena.

1:18:18.280,1:18:20.874
It made sustained efforts[br]for a few years.

1:18:21.120,1:18:24.476
By and large,[br]the school boards refused.

1:18:24.680,1:18:28.229
Our public-service funding is not[br]in the same state as the U.S.’s,

1:18:28.440,1:18:32.035
but it’s another assault[br]being conducted against education.

1:18:32.240,1:18:35.994
It takes many forms,[br]according to country and region.

1:18:36.720,1:18:41.953
Mobil has shows on energy. Learn[br]environmental protection from them.

1:18:42.240,1:18:48.429
And nutrition from NutraSweet,[br]which has a kid’s show on nutrition.

1:18:48.680,1:18:52.673
You’ll learn the virtues[br]of NAFTA with GM,

1:18:52.880,1:18:55.189
and about protecting[br]forests and the environment

1:18:55.440,1:18:59.319
from the companies[br]responsible for deforestation.

1:19:01.040,1:19:05.520
This model has repercussions[br]from primary school to university,

1:19:05.520,1:19:09.718
which means, ultimately,[br]we could have - I’m half joking -

1:19:09.960,1:19:14.556
university ecology departments[br]where pollution will be justified.

1:19:14.800,1:19:16.518
That’s the troubling thing.

1:19:16.800,1:19:20.918
The loss of meaning in certain[br]intellectual and human activities …

1:19:21.160,1:19:22.639
that this implies.

1:19:23.480,1:19:26.074
The more efficient we think[br]we are economically …

1:19:26.560,1:19:30.997
Financially is more precise,[br]since finance is multiplying money.

1:19:31.200,1:19:35.955
The more efficiently we make money,[br]the less sense it makes.

1:19:36.720,1:19:42.317
Does it makes sense to say[br]that GM, for example, is efficient

1:19:42.560,1:19:48.874
because it made $23- or 24-billion[br]net profit in the last decade,

1:19:50.280,1:19:53.158
when it created 300,000 unemployed!

1:19:53.960,1:19:55.678
Does that make sense?

1:19:55.920,1:19:59.469
We say GM is efficient,[br]but what is this efficiency?

1:19:59.720,1:20:02.393
We say the American economy[br]is more efficient.

1:20:02.640,1:20:08.272
It is, in financial indicators,[br]yield over capital investment, etc.

1:20:08.520,1:20:13.958
But the U.S. has never had so many[br]people living under the poverty line,

1:20:14.200,1:20:15.713
the American poverty line,

1:20:16.000,1:20:19.754
or so many people[br]without access to health care -

1:20:20.000,1:20:25.358
40% of the American population has[br]practically no access to health care.

1:20:25.600,1:20:30.071
The U.S. has never had[br]such a low level of education.

1:20:31.920,1:20:37.438
50% of Americans[br]can’t locate England on a map.

1:20:37.640,1:20:39.710
Today, this is aberrant,

1:20:40.000,1:20:44.073
when there are at least[br]50 TV channels per household.

1:20:44.320,1:20:47.357
There’s a picture of what[br]I’m calling lack of meaning.

1:20:47.600,1:20:50.433
Materially, economically,[br]financially, we’re more efficient.

1:20:50.680,1:20:54.673
But ecologically, socially,[br]politically, humanly,

1:20:54.920,1:20:59.948
we are steadily losing[br]our values and quality of life.

1:21:00.160,1:21:01.639
Senselessness.

1:21:01.880,1:21:06.431
To discuss this, we must eschew[br]the dominant economic discourse.

1:21:06.640,1:21:10.918
To start to make sense of this,[br]the problem must be reformulated …

1:21:11.880,1:21:15.873
from scratch. To do this,[br]we must go back to Aristotle.

1:21:16.560,1:21:20.269
He said, “Do not confuse[br]the economic -

1:21:20.520,1:21:25.594
oikos nomia, the norms[br]of running home and community,

1:21:25.680,1:21:29.434
with chrematistic, krema atos,[br]the accumulation of money.”

1:21:30.080,1:21:31.991
That brings us to education.

1:21:32.640,1:21:37.156
In education today,[br]to what degree is Aristotle taught?

1:21:37.280,1:21:39.316
Who knows Aristotle? Who reads him?

1:21:39.520,1:21:43.877
I could say the same[br]of Victor Hugo, Jean-Paul Sartre,

1:21:44.880,1:21:46.518
Archimedes, etc.

1:21:47.840,1:21:49.671
So, today,

1:21:50.720,1:21:53.757
we say we’re in[br]a knowledge-based economy,

1:21:54.000,1:21:56.594
but we’ve never educated[br]or taught so little.

1:21:57.320,1:22:00.835
Yet we’ve never put so much emphasis

1:22:01.040,1:22:03.998
on so-called training[br]and educational institutions.

1:22:04.080,1:22:09.074
Now for the paradox and nonsensical.[br]They’re in the fact that

1:22:09.960,1:22:12.633
just about everywhere,[br]particularly in North America,

1:22:12.840,1:22:18.836
schools are being turned into[br]the system’s servant factories.

1:22:19.560,1:22:22.870
In other words, thinking bipeds

1:22:24.200,1:22:30.389
must be concerned only about fuelling[br]this free, self-regulating market

1:22:30.640,1:22:33.757
and the mechanics[br]of production and finance.

1:22:33.840,1:22:35.876
We call this “employability”,

1:22:36.160,1:22:38.720
training the employable,

1:22:39.280,1:22:43.990
reforming education,[br]from grade school to university -

1:22:44.200,1:22:48.159
training people to find their place[br]in the labour market.

1:22:48.400,1:22:49.753
That’s horrible.

1:22:50.320,1:22:52.914
Would a Victor Hugo[br]be employable today?

1:22:53.520,1:22:55.875
Would a Socrates be employable?

1:22:56.520,1:23:00.308
Would a Paul Verlaine[br]or a Rimbaud be employable?

1:23:00.560,1:23:02.790
No! So, there would be none.

1:23:03.240,1:23:06.869
But what would humanity be[br]without Socrates, Aristotle,

1:23:07.120,1:23:10.078
Rimbaud, Verlaine, Hugo?

1:23:10.280,1:23:13.716
What would we be without them?[br]We’d be animals.

1:23:13.960,1:23:17.953
Now, on the pretence that they’re[br]unemployable and unwanted,

1:23:18.240,1:23:23.473
we no longer train poets, literary[br]people, pure mathematicians,

1:23:23.720,1:23:26.439
or theoretical physicists.

1:23:26.960,1:23:30.919
We only train what industry,[br]financial enterprise, wants

1:23:31.200,1:23:34.078
to fuel the money-making machine.

1:23:34.880,1:23:36.438
Who is employable?

1:23:36.640,1:23:40.474
The people I see in universities[br]where I teach, around the world.

1:23:40.720,1:23:45.475
In other words, at the highest level[br]- Master’s, Ph.D. -

1:23:45.840,1:23:48.673
they’re what I call “technocrats”,

1:23:49.960,1:23:54.238
analytical technocrats,[br]trained to analyze problems.

1:23:54.440,1:23:57.750
We tell them they’re smart[br]because they do problem-solving.

1:23:58.000,1:24:02.710
Problem-solving is not intelligence.[br]Problem-formulation is.

1:24:02.960,1:24:06.270
The person who formulates[br]the problem is the smart one.

1:24:06.480,1:24:11.156
He articulates it, puts it in terms[br]of links and combinations

1:24:11.560,1:24:13.278
that call for a question.

1:24:13.680,1:24:17.958
He’s the smart one. The one who[br]relies on a pre-formulated problem

1:24:18.240,1:24:22.233
in order to find the right solution[br]isn’t intelligent.

1:24:22.360,1:24:25.591
Despite what they say.[br]Analytical technocrats

1:24:25.840,1:24:28.991
master techniques[br]of analysis and calculation,

1:24:29.280,1:24:32.795
and confuse thinking[br]with analyzing and calculating.

1:24:33.160,1:24:37.631
They make decisions with no qualms,[br]like laying off 60,000 in a day,

1:24:37.920,1:24:41.708
doubling their salary by a million,[br]and saying “I’m suffering.”

1:24:41.960,1:24:45.430
I make hard decisions.[br]These are non-humans!

1:24:45.800,1:24:49.395
Someone who openly makes[br]decisions without soul-searching

1:24:49.600,1:24:52.672
is saying, “I’m not a human being.”

1:24:53.160,1:24:57.915
By what right do we let him make[br]decisions that affect human beings?

1:24:58.120,1:25:02.750
He says, “No soul-searching,[br]no soul. I’m not human.”

1:25:03.880,1:25:08.954
These are highly trained technocrats.[br]At the intermediate level …

1:25:10.120,1:25:15.672
are the producer technicians.[br]These technicians serve machines,

1:25:15.920,1:25:19.310
from the computer[br]to the digital machine

1:25:19.520,1:25:22.876
that cranks out parts[br]in plastic, steel, aluminum.

1:25:23.280,1:25:25.635
These people are there

1:25:25.880,1:25:30.032
so the automated mechanics[br]of production never break down.

1:25:30.640,1:25:33.438
The only knowledge required of them

1:25:33.640,1:25:38.236
is the logic of the machinery[br]they’re overseeing. That’s all.

1:25:39.520,1:25:45.436
What’s more, they’re merely required[br]to understand the machine’s demands.

1:25:46.640,1:25:51.714
They don’t even dominate the machine,[br]or possess a kind of …

1:25:52.360,1:25:57.593
human superiority, additional soul,[br]knowledge or sense of the machine.

1:25:57.840,1:26:01.719
Instead, the machine says,[br]if you’re smart enough,

1:26:01.960,1:26:07.671
find the bad chip, change the card.[br]And if he can’t, he’s no good.

1:26:08.400,1:26:12.109
And on the lower levels,[br]what do we train? We don’t.

1:26:12.360,1:26:16.911
45% of the labour of multi-nationals,[br]American in particular,

1:26:17.160,1:26:19.230
are completely illiterate.

1:26:19.440,1:26:22.352
The multi-nationals[br]don’t want to change that.

1:26:22.600,1:26:27.355
They don’t want these illiterates[br]to be the least bit trained,

1:26:27.600,1:26:30.637
because otherwise[br]they’ll start asking questions.

1:26:31.120,1:26:36.240
lf they read papers and reports,[br]they’ll start asking questions,

1:26:36.480,1:26:39.074
unionizing, thinking.

1:26:39.280,1:26:40.918
So, no way.

1:26:41.120,1:26:46.274
Today, particularly in North America[br]and even more in the States,

1:26:46.560,1:26:49.472
there are primary[br]and high school graduates …

1:26:51.560,1:26:54.552
in fairly staggering proportions -

1:26:54.800,1:26:57.840
up to 25% here in Québec,

1:26:57.840,1:27:03.472
and if we looked at U.S. figures,[br]they’d be the same, if not more -

1:27:03.600,1:27:08.833
who graduated, yet are illiterate,[br]who basically can’t read or write.

1:27:09.080,1:27:12.436
They graduated by seniority.

1:27:12.680,1:27:16.639
By attendance and age.[br]This suits the system fine.

1:27:17.000,1:27:21.232
Because when your low-level workers

1:27:22.160,1:27:24.037
are lobotomized bipeds,

1:27:24.240,1:27:29.109
who haven’t even been taught to think[br]because this would require reading …

1:27:29.360,1:27:32.750
lf I want to learn to think,[br]I must read Victor Hugo, poems …

1:27:33.000,1:27:35.468
I must read philosophers.

1:27:35.720,1:27:38.553
Writers teach me to think.

1:27:38.800,1:27:43.590
I can’t think without putting words[br]and their permutations into my head.

1:27:44.080,1:27:46.435
lf I don’t have this, I cannot think.

1:27:46.640,1:27:50.553
But I can become an excellent[br]reproducer of the system,

1:27:50.960,1:27:54.555
who doesn’t think[br]and who defends the system.

1:27:55.200,1:27:58.431
There are now workers who say -[br]and this has happened to me

1:27:58.720,1:28:03.840
in serious situations where[br]there are closures, layoffs, etc.

1:28:04.080,1:28:06.958
and I ask the workers,[br]“What do you think?”

1:28:07.440,1:28:10.716
They often tell me,[br]“It’s the law of the market.

1:28:10.840,1:28:15.038
Competition. We must be more[br]competitive than the Japanese…”

1:28:15.280,1:28:19.273
They defend the very system[br]that’s crushing them.

1:28:20.680,1:28:24.912
We began by examining the networks[br]by which ideas circulate.

1:28:25.160,1:28:28.311
Education’s the same. We find …

1:28:28.560,1:28:32.997
ideological justifications, theorists,[br]people who conceived education,

1:28:34.000,1:28:37.072
advocating its transformation[br]in a way I’ll describe.

1:28:37.280,1:28:40.511
There are also[br]powerful transnational institutions

1:28:40.720,1:28:46.556
that entertain the same discourse[br]and compel agents, governments

1:28:46.800,1:28:49.917
and teachers to adopt practices[br]that conform to these ideals.

1:28:50.160,1:28:54.358
Finally, lobby groups, think tanks,[br]try to accomplish the same thing.

1:28:54.600,1:28:57.592
Education is striking.[br]It has all three.

1:28:59.400,1:29:02.676
The most influential education[br]theorist of the last 50 years

1:29:02.920,1:29:06.117
was an economist, not a pedagogue.

1:29:07.280,1:29:11.831
The top educational theorist[br]was probably Gary Becker.

1:29:12.200,1:29:14.430
He teaches at[br]the University of Chicago.

1:29:14.640,1:29:17.950
He developed[br]the theory of human capital.

1:29:18.240,1:29:19.309
The idea is …

1:29:20.040,1:29:23.032
humans and knowledge[br]are capital that requires investment

1:29:23.280,1:29:26.556
and evaluation from[br]the standpoint of profitability.

1:29:26.680,1:29:29.274
This theory of human capital

1:29:29.520,1:29:34.913
allows mathematical economic tools[br]to be applied to education,

1:29:35.160,1:29:39.836
henceforth viewed as a certain order[br]of capital that can be quantified.

1:29:40.160,1:29:44.119
This has been the most influential[br]theory of the last 50 years,

1:29:44.360,1:29:48.797
especially where it counts, in places[br]where decision-makers are influenced.

1:29:49.040,1:29:52.271
Places where States,[br]education ministers

1:29:52.520,1:29:55.557
and education policy-makers[br]are influenced.

1:29:55.800,1:30:00.749
The second theorist who established[br]the mechanisms that are in play now

1:30:01.040,1:30:04.999
is Milton Friedman, the father[br]of monetary economics,

1:30:05.160,1:30:08.948
who proposed a system[br]of education vouchers,

1:30:09.200,1:30:12.670
the idea again being[br]to inject market mechanisms

1:30:12.960,1:30:16.270
into education,[br]and to make schools compete.

1:30:16.480,1:30:22.396
These 2 education theories, never[br]discussed in education faculties,

1:30:22.640,1:30:26.110
are the most influential[br]recent educational thinking.

1:30:26.320,1:30:31.633
These theories circulate to the IMF,[br]the OECD, the World Bank.

1:30:31.880,1:30:36.078
National education systems are[br]analyzed from their point of view.

1:30:36.240,1:30:38.879
Recommendations[br]are made accordingly.

1:30:39.800,1:30:46.360
Think tanks and major media groups[br]often enjoy privileged connections.

1:30:46.360,1:30:52.240
Propaganda naturally circulates[br]from one group to the other.

1:30:52.240,1:30:57.520
Also, it is largely due[br]to this media transmission

1:30:57.520,1:31:03.117
that neo-liberal ideology[br]attains the status of accepted fact.

1:31:04.120,1:31:04.200
propaganda and indoctrination

1:31:04.200,1:31:11.760
propaganda and indoctrination

1:31:11.760,1:31:17.471
the media

1:31:19.960,1:31:25.080
It has traditionally been said[br]that Hitler invented propaganda.

1:31:25.320,1:31:30.110
Journals, etc., describe how Hitler[br]understood its role in World War II.

1:31:30.400,1:31:34.359
It’s true, he understood[br]it’s societal importance.

1:31:34.600,1:31:37.273
But he didn’t invent it.[br]He learned from us,

1:31:37.520,1:31:41.479
the Western democracies,[br]in particular the English,

1:31:41.680,1:31:43.352
and the Americans.

1:31:43.560,1:31:47.155
Overall, since the advent[br]of modern societies,

1:31:47.360,1:31:49.078
two trends prevail.

1:31:49.320,1:31:53.598
The first calls for participative[br]democracy with aware people,

1:31:53.800,1:31:58.191
who can talk, act[br]and influence decisions.

1:31:58.480,1:32:03.110
The other vision of the world says[br]some people must be pushed aside.

1:32:03.280,1:32:06.989
They must not get involved[br]in the issues that concern them.

1:32:07.080,1:32:10.755
This vision of society,[br]the world and the economy

1:32:10.960,1:32:15.033
also exists in our culture.[br]It strongly manifested itself

1:32:15.280,1:32:20.274
during World War I in the U.S.,[br]when the government was elected

1:32:20.360,1:32:23.238
on a promise[br]of abstaining from war.

1:32:23.520,1:32:28.036
Shortly thereafter, for reasons[br]pertaining to internal affairs

1:32:28.280,1:32:30.236
and the role of the industrialists,

1:32:30.440,1:32:34.194
the government decided[br]to enter into the conflict.

1:32:34.440,1:32:39.594
The serious problem it then faced was[br]confronting an opposed population.

1:32:39.760,1:32:44.595
They formed a commission named after[br]the journalist who presided over it,

1:32:44.840,1:32:47.308
Mr Creel.[br]It was the Creel Commission.

1:32:47.560,1:32:52.759
This commission largely invented[br]modern propaganda techniques,

1:32:52.960,1:32:56.839
techniques for shaping[br]and preparing public opinion.

1:32:57.640,1:33:01.952
The Creel Commission magnificently[br]fulfilled its mandate,

1:33:02.160,1:33:04.958
reversing public opinion[br]in a few months.

1:33:05.200,1:33:09.398
The commission engaged very famous[br]people, renowned intellectuals

1:33:09.640,1:33:14.316
and Edward Burnays, founder of[br]the modern public-relations industry.

1:33:14.560,1:33:17.199
These people later[br]left the commission

1:33:17.440,1:33:21.592
and established communication tools[br]within our societies

1:33:21.840,1:33:25.719
that are still present and are among[br]the propaganda mechanisms.

1:33:25.960,1:33:28.520
One very important political aim

1:33:28.800,1:33:32.315
is to exclude part of the population,[br]to shape public opinion

1:33:32.520,1:33:35.717
and build consensus within society.

1:33:35.920,1:33:39.708
The institutions they invented -[br]public relations firms -

1:33:40.000,1:33:44.835
plus the modern concept of the role[br]of companies and of P.R. within them,

1:33:45.120,1:33:49.159
social communication, media,[br]the role of the intellectual,

1:33:49.440,1:33:53.638
the role of publicity and information[br]in our society …

1:33:53.840,1:33:57.753
This was all set up, and was[br]the lesson Hitler rightly remembered.

1:33:58.000,1:34:01.549
Whence the mechanisms that[br]led to today’s one-track thinking?

1:34:01.800,1:34:07.193
They’re the descendents of what[br]I’m describing - the Creel Commission

1:34:08.040,1:34:12.033
and, further back in time,[br]of the conception of politics

1:34:12.280,1:34:16.637
that says society must exclude[br]part of its population to function.

1:34:16.920,1:34:18.990
We find this too.

1:34:19.240,1:34:23.552
But if the agents I’m describing[br]are very powerful, strong, numerous,

1:34:23.760,1:34:28.993
a counter-discourse arises, as do[br]sites where other analyses blossom,

1:34:29.200,1:34:34.069
alternative media, intellectuals,[br]social and community groups,

1:34:34.320,1:34:38.233
where new thought percolates.[br]There’s a dual phenomenon.

1:34:38.480,1:34:41.233
Unfortunately,[br]pensée unique predominates.

1:34:41.440,1:34:44.159
Propaganda is working.

1:34:44.360,1:34:47.511
Through such mechanisms[br]and institutions,

1:34:47.760,1:34:51.548
a world vision, a vocabulary, a way[br]of thinking and conceiving the world

1:34:51.760,1:34:54.354
ensure that certain questions[br]may be asked,

1:34:54.560,1:34:56.391
certain answers given,

1:34:56.640,1:34:59.632
certain analyses made,[br]while others are excluded.

1:35:03.040,1:35:06.715
Currently, dominant ideology,[br]which I call ambient ideology,

1:35:06.960,1:35:11.272
has its official face,[br]the pensée unique we spoke of,

1:35:11.480,1:35:14.199
and its unofficial face, which is …

1:35:14.440,1:35:19.912
this ensemble of behaviours[br]prescribed by the media overall.

1:35:20.160,1:35:23.550
This ideology never appears[br]as an ideology.

1:35:23.840,1:35:29.153
It’s presented as entirely natural,[br]something we should obviously do.

1:35:29.520,1:35:34.594
Owning a TV must be obvious.[br]“How can one not own a TV

1:35:35.280,1:35:37.635
in the late 20th century?”

1:35:38.320,1:35:42.757
Accepting the advertising system[br]is obvious.

1:35:42.960,1:35:45.758
Surely, you won’t,

1:35:46.080,1:35:51.393
in early 2K, call the advertising[br]system into question!”

1:35:51.680,1:35:54.752
All that is ideological,[br]all that is choice,

1:35:56.080,1:36:00.153
which the system has organized[br]without consulting us,

1:36:00.320,1:36:06.190
is presented to us as self-evident,[br]given and above discussion.

1:36:06.920,1:36:10.469
Interesting. Indeed,[br]concerning pensée unique,

1:36:12.080,1:36:16.915
which is a uniform,[br]partial and sectarian way

1:36:17.120,1:36:19.998
of interpreting and[br]conducting economy,

1:36:20.720,1:36:24.156
Alain Minc said, “Thought[br]is not unique, reality is.”

1:36:24.240,1:36:27.471
From that point on,[br]forget calling into question

1:36:27.720,1:36:31.349
what the liberal or ultra-liberal[br]economy was doing.

1:36:31.600,1:36:35.388
It was given as reality.[br]Reality had to be followed.

1:36:35.720,1:36:39.076
For example,[br]“Internationalization is a reality.”

1:36:39.320,1:36:43.472
Of course it is,[br]but not necessarily a good one.

1:36:44.160,1:36:48.950
The ideology says it’s a reality,[br]it’s valid, we must go with it.

1:36:49.520,1:36:51.397
Globalization, same thing.

1:36:53.440,1:36:55.874
Privatization, same thing.

1:36:56.160,1:37:01.234
It’s being done, so it must be done.[br]It had to be done, etc.

1:37:01.480,1:37:04.472
They present as faits accomplis,

1:37:05.520,1:37:10.036
things people must be made to accept,[br]instead of asking whether they agree.

1:37:11.120,1:37:15.238
Naturally, this pertains to[br]what I was saying in my book

1:37:15.680,1:37:18.240
on the sophism of the ineluctable:

1:37:18.480,1:37:23.998
most politicians cover up[br]their actions, their choices,

1:37:24.240,1:37:29.473
because these choices and decisions[br]are being billed as inevitable.

1:37:29.760,1:37:31.671
We couldn’t do otherwise.

1:37:31.920,1:37:35.151
It was decreed.[br]The Americans are doing this.

1:37:36.000,1:37:41.791
Everyone knows what happens in France[br]happened 10 years earlier in the U.S.

1:37:42.120,1:37:44.475
It had to be done in France.

1:37:45.160,1:37:48.311
Renault closed a factory in Belgium

1:37:49.760,1:37:53.150
in order to restructure …

1:37:54.640,1:38:00.192
and create factories elsewhere to do[br]the same work, with cheaper labour.

1:38:00.400,1:38:03.676
That was the result[br]of an economic calculation.

1:38:04.680,1:38:10.596
About this closure, the head of the[br]French state declared the following:

1:38:12.120,1:38:14.588
Alas, factory closures are life.

1:38:14.880,1:38:20.557
Trees are born, live and die, as do[br]plants, animals, men and companies.”

1:38:20.800,1:38:24.429
That is a good example[br]of naturalizing

1:38:25.040,1:38:27.713
what’s happening,[br]which is depoliticization.

1:38:28.000,1:38:30.878
People are obliged[br]to accept as natural,

1:38:31.760,1:38:34.832
as independent[br]of the will of politicians,

1:38:35.080,1:38:41.918
certain decisions[br]that are in fact contingent.

1:38:42.160,1:38:44.833
That’s how they manipulate citizens

1:38:45.040,1:38:50.273
and dissuade them from believing[br]in their own vote, ultimately.

1:38:51.720,1:38:54.314
Today, the functioning[br]of the media

1:38:54.600,1:38:56.989
fosters the creation of truth.

1:38:59.960,1:39:02.679
The truth can only appear[br]as the confrontation,

1:39:04.240,1:39:07.550
the verification of a given version

1:39:07.880,1:39:12.670
confirmed by a number of witnesses.[br]We know truth is hard to establish.

1:39:12.920,1:39:16.117
We see it with investigating judges,

1:39:17.320,1:39:20.835
with analytical scientists[br]trying to discover truth.

1:39:21.120,1:39:23.953
But today,[br]the way the media functions,

1:39:24.200,1:39:27.078
it’s enough that,[br]in coverage of an event,

1:39:29.000,1:39:33.312
all the media - press, radio, TV -[br]say the same thing

1:39:33.600,1:39:37.912
for this to be established as truth,[br]even if it’s false.

1:39:38.360,1:39:43.832
We saw it during the Gulf War,[br]and recent mega-events.

1:39:46.600,1:39:50.673
Consequently, in establishing[br]this kind of false equation,

1:39:51.120,1:39:54.715
repetition equals proof.[br]I was recently rereading …

1:39:54.960,1:39:59.158
Brave New World by Aldous Huxley,

1:39:59.880,1:40:03.395
and I found a phrase[br]about hypnopaedia,

1:40:03.640,1:40:08.350
the aural hypnosis they subject[br]infants to when they’re born

1:40:08.720,1:40:12.030
to persuade them to be happy[br]to be what they are,

1:40:12.680,1:40:16.992
and one of the directors of the[br]Conditioning Centre, as it’s called,

1:40:20.360,1:40:24.148
says, “64,000 repetitions[br]make one truth.”

1:40:24.880,1:40:27.519
We’re now in Huxley’s world.

1:40:37.640,1:40:41.520
Sustained by incessant[br]propaganda and proselytizing

1:40:41.520,1:40:45.840
that pass repeatedly through[br]the multiple relays

1:40:45.840,1:40:50.160
of a sprawling network[br]of mind control,

1:40:50.160,1:40:54.200
neo-liberal reforms[br]gradually impose themselves

1:40:54.200,1:40:58.800
in the anaesthetized consciences[br]of Western democracies.

1:40:58.800,1:41:03.880
In these countries, in the name[br]of a necessary “realism”,

1:41:03.880,1:41:08.000
all parties, both right and left,[br]adopt measures

1:41:08.000,1:41:13.520
that sap the social State more[br]every day, to market’s benefit.

1:41:13.520,1:41:19.320
But elsewhere, where propaganda[br]doesn’t enjoy the same success,

1:41:19.320,1:41:24.520
especially in developing countries,[br]other solutions are imperative.

1:41:24.520,1:41:28.360
Drastic solutions.

1:41:28.360,1:41:32.240
For behind the ideological[br]smokescreen,

1:41:32.240,1:41:36.080
behind the beautiful concepts[br]of spontaneous order

1:41:36.080,1:41:39.920
and harmonized interests[br]in a free market,

1:41:39.920,1:41:44.040
beyond the panacea[br]of the invisible hand,

1:41:44.040,1:41:45.960
what’s really hidden?

1:41:45.960,1:41:51.600
What were the true motivations[br]of the bankers and industrialists

1:41:51.600,1:41:56.469
who financed the establishment[br]of the neo-liberal network?

1:41:57.480,1:42:05.200
neo-liberalism or neo-colonialism?

1:42:05.200,1:42:12.834
strong-arm tactics[br]of the financial markets

1:44:23.200,1:44:25.430
Before,

1:44:26.280,1:44:31.354
nearly all of banks’ operations[br]until the ’70s were monitored.

1:44:32.480,1:44:36.678
All these operations passed[br]via the French central bank

1:44:36.960,1:44:38.757
which kept track.

1:44:39.000,1:44:42.754
Now the problem is,[br]banks transact over the counter.

1:44:43.040,1:44:48.194
They’ve taken out just over[br]half of their business figures -

1:44:48.640,1:44:51.837
OTC transactions[br]outside market control.

1:44:52.080,1:44:54.878
It’s as though there were[br]the normal market,

1:44:54.960,1:44:59.192
and a black market.[br]A grocery with posted prices

1:44:59.440,1:45:03.149
and a proper cash register.[br]Then, a mysterious black market.

1:45:04.040,1:45:06.679
In its reports,[br]the Bank of France says,

1:45:06.920,1:45:09.036
when it checks bank reports,

1:45:09.760,1:45:12.911
about half of bank transactions[br]are unreported,

1:45:13.480,1:45:17.040
beyond the control[br]of a superior authority,

1:45:17.040,1:45:19.270
like a public treasury[br]or a central bank.

1:45:20.960,1:45:26.557
These unreported activities mean that[br]governments count for nothing.

1:45:28.640,1:45:30.119
There must be …

1:45:33.000,1:45:34.831
$500 billion minimum

1:45:35.080,1:45:38.914
circulating every day[br]in off-shore funds, etc.

1:45:39.200,1:45:42.033
If a government hassles a bank,

1:45:42.280,1:45:47.274
it doesn’t care. It just stocks up[br]with one of its foreign counterparts,

1:45:47.480,1:45:49.994
another multi-national bank,

1:45:50.200,1:45:54.512
an off-shore fund or elsewhere.[br]No problem. Money’s mobile now.

1:45:54.760,1:45:57.911
Beyond the control[br]of any public authority.

1:45:58.440,1:45:59.714
OTC transactions

1:46:05.200,1:46:08.158
are a very serious problem.

1:46:08.400,1:46:10.914
To control the economy,[br]you must control money.

1:46:13.480,1:46:18.640
Over-the-counter operations[br]are generally effectuated

1:46:18.640,1:46:23.953
with relatively new financial[br]instruments, derivative products:

1:46:30.160,1:46:33.948
It’s basically insurance contracts.[br]In other words,

1:46:35.360,1:46:38.113
you get insured[br]against future fluctuations

1:46:39.200,1:46:42.078
in interest rates and currency.

1:46:42.320,1:46:44.390
You sign a contract

1:46:46.560,1:46:51.509
with someone to pay in 6 months.[br]The contract is in dollars.

1:46:53.960,1:46:57.270
If the dollar rises,[br]you’re in trouble. In 6 months,

1:46:57.520,1:47:02.514
you’ll have to buy dollars at a 10%[br]premium. So you take out insurance

1:47:03.360,1:47:06.193
on the value of the dollar.

1:47:06.440,1:47:11.958
A guy takes on the risk. You pay him[br]3% or 4% extra at the onset.

1:47:12.200,1:47:16.591
Whatever the dollar’s rise or fall -[br]the guy wins if it falls -

1:47:16.840,1:47:20.913
you don’t move. You have insurance.[br]That’s derivative products.

1:47:21.120,1:47:24.635
The interesting thing is[br]it creates a risk economy.

1:47:25.520,1:47:29.479
Currency’s no longer controlled,[br]capital flux isn’t monitored, etc.

1:47:29.760,1:47:32.479
So, it’s an economy[br]where risk is maintained

1:47:32.720,1:47:35.996
in order to create[br]on top of this system,

1:47:36.240,1:47:39.516
an insurance system[br]where risk is covered.

1:47:40.240,1:47:44.995
But the difference between this[br]and risks like car accidents

1:47:45.400,1:47:50.110
is that accidents are predictable.[br]It’s the law of probability.

1:47:50.600,1:47:54.388
Whereas the risks[br]in the financial markets …

1:47:55.840,1:48:01.119
are rare epiphenomena that[br]can’t be statistically quantified.

1:48:01.400,1:48:04.153
Absolute risks,[br]absolutely unforeseeable.

1:48:04.400,1:48:08.791
So these insurance contracts[br]that crown the normal economy

1:48:08.880,1:48:11.633
create a 2nd layer[br]that’s even riskier.

1:48:11.760,1:48:16.834
So, sometimes people take out[br]insurance on their insurance.

1:48:17.120,1:48:20.112
It’s Escheresque.[br]You create a risk pyramid.

1:48:20.360,1:48:23.238
And people speculate on that.

1:48:23.440,1:48:27.592
You create a purely speculative[br]economy by sustaining risk.

1:48:28.080,1:48:33.393
A trait of contemporary capitalism[br]is this economy where financial risk

1:48:33.640,1:48:38.270
is systematically maintained,[br]and systematically marketed.

1:48:42.800,1:48:49.000
In the 1980s, under the sway[br]of Thatcher and Reagan,

1:48:49.000,1:48:54.960
a number of countries adopted reforms[br]to deregulate financial markets.

1:48:54.960,1:49:01.840
By allowing capital to flow freely,[br]governments considerably increased

1:49:01.840,1:49:06.480
the power[br]of major institutional speculators:

1:49:06.480,1:49:14.640
hedge funds, commercial banks,[br]pension funds, insurance companies …

1:49:14.640,1:49:18.000
Now in a position of strength,

1:49:18.000,1:49:24.240
these entities would act as a new[br]purveyor of neo-liberal ideology,

1:49:24.240,1:49:29.320
going so far as to compel[br]the most recalcitrant States

1:49:29.320,1:49:32.920
to accelerate the liberalization[br]of their economy.

1:49:32.920,1:49:40.400
Among the methods used to do this,[br]speculative attacks proved to be

1:49:40.400,1:49:42.960
particularly effective …[br]and devastating.

1:49:42.960,1:49:48.840
Certainly, the emperor’s new clothes[br]are woven of complex mechanisms

1:49:48.840,1:49:53.040
that readily deflect[br]the most curious minds.

1:49:53.040,1:49:58.760
But if colonialism has changed[br]its look, its goal remains the same:

1:49:58.760,1:50:00.671
the concentration of capital.

1:50:05.520,1:50:07.192
Speculation …

1:50:07.840,1:50:09.671
has several instruments.

1:50:12.640,1:50:14.756
Without going into technical details,

1:50:15.760,1:50:21.710
I’d like to show what happened[br]in the Asian Financial Crisis of ’97,

1:50:24.320,1:50:28.029
which led to a currency collapse[br]in several countries,

1:50:29.120,1:50:33.875
countries that had been categorized[br]as “Asian tigers”,

1:50:35.720,1:50:38.393
with a successful economy, etc.

1:50:40.240,1:50:42.879
There were various factors[br]in this crisis,

1:50:43.120,1:50:47.159
but I think one of[br]the fundamental elements

1:50:47.920,1:50:51.230
was the prior deregulation[br]of the exchange market.

1:50:52.000,1:50:56.994
In certain cases,[br]this deregulation was imposed,

1:50:57.280,1:51:02.673
if not indeed recommended by[br]the International Monetary Fund.

1:51:03.680,1:51:05.591
Now, speculators

1:51:07.640,1:51:11.519
got their hands on the reserves[br]of the central banks

1:51:12.160,1:51:15.232
through the following mechanism:

1:51:16.480,1:51:21.270
they speculated against[br]national currencies

1:51:22.280,1:51:25.158
by selling short.

1:51:25.960,1:51:31.400
Short selling is speculating on[br]a transferable security’s decrease

1:51:31.400,1:51:37.440
rather than on its increase,[br]as is traditionally the case.

1:51:37.440,1:51:42.720
If a security is the object[br]of massive short selling,

1:51:42.720,1:51:49.480
it leads to a collapse in demand[br]and thus of the security’s price.

1:51:49.480,1:51:52.400
This constitutes speculative attack

1:51:52.400,1:51:58.800
for, in wagering massively[br]on a decrease in value,

1:51:58.800,1:52:03.828
the speculators themselves[br]bring about the decrease.

1:52:04.880,1:52:09.237
Say I want to short sell[br]the Korean won.

1:52:10.080,1:52:13.550
I start selling huge quantities[br]of Korean won,

1:52:14.400,1:52:19.758
deliverable at some future date.[br]The contracts are 3 or 6 months.

1:52:21.040,1:52:24.828
When the contract comes to term,[br]I must deliver huge quantities

1:52:25.120,1:52:27.554
of Korean won or Thai baht.

1:52:28.840,1:52:32.719
But I don’t have them.[br]I can sell as much as I want,

1:52:33.320,1:52:38.394
I can sell billions of dollars’ worth[br]of Korean won.

1:52:39.680,1:52:42.240
Who buys up the Korean won?

1:52:42.440,1:52:45.398
The central bank of Korea,

1:52:45.640,1:52:51.590
which is obliged through accords[br]with the International Monetary Fund

1:52:51.840,1:52:53.910
to stabilize its currency.

1:52:56.160,1:52:58.355
Technically, what happened was,

1:53:00.320,1:53:03.471
when the Korean currency fell,

1:53:04.480,1:53:05.913
a few months later,

1:53:06.160,1:53:09.470
the short-selling contracts[br]came to term

1:53:10.480,1:53:12.436
and that’s when …

1:53:13.080,1:53:17.835
there was an appropriation[br]of the central bank reserves,

1:53:17.960,1:53:20.269
because the won was worthless

1:53:20.520,1:53:25.753
and speculators had only to buy[br]Korean won on the spot market,

1:53:26.120,1:53:31.558
and then fulfill the terms[br]of their contracts.

1:53:31.800,1:53:36.396
So the central bank’s buying back[br]its own money - not too profitable.

1:53:36.600,1:53:39.068
And in exchange,[br]its reserves are confiscated

1:53:39.320,1:53:45.236
and go into the pockets[br]of the major Western banks.

1:53:45.480,1:53:47.630
That’s the mechanism.

1:53:47.760,1:53:51.389
Now the reserves have been sacked,

1:53:52.640,1:53:58.431
and this means Korea must now[br]go to the IMF and say,

1:53:59.360,1:54:02.511
Our reserves have been sacked.[br]We can’t function without them.

1:54:02.760,1:54:07.515
We must reimburse…” (The money[br]hasn’t even gone to creditors yet.)

1:54:07.760,1:54:10.991
We must reimburse our creditors[br](the speculators).

1:54:11.240,1:54:12.434
What’s going on?

1:54:12.680,1:54:19.153
When the IMF grants a loan[br]in the order of $56 billion,

1:54:19.400,1:54:22.676
there’s participation[br]by a number of countries.

1:54:23.240,1:54:25.231
There were 24 countries,

1:54:27.520,1:54:32.514
because astronomical sums are needed.[br]The American and Canadian treasuries,

1:54:32.960,1:54:35.520
the main Western governments.

1:54:36.560,1:54:40.189
For the American[br]or Canadian treasury

1:54:40.400,1:54:44.678
or another Western country[br]to help give

1:54:44.920,1:54:46.911
a $56-billion loan,

1:54:47.800,1:54:49.950
they have to raise[br]their own debt level,

1:54:50.120,1:54:52.793
which means they must start selling

1:54:54.080,1:54:57.755
and negotiating their debt[br]on the stock markets.

1:54:58.200,1:55:02.637
So, it’s the debt market.[br]And who controls the debt market

1:55:03.560,1:55:08.315
for sovereign Western debt?[br]The same speculating banks.

1:55:08.560,1:55:10.516
There’s a vicious circle here.

1:55:11.880,1:55:15.031
Attack Korea, come to its rescue,

1:55:15.200,1:55:19.239
confiscate its reserves,[br]lend it money …

1:55:20.480,1:55:24.314
from the public funds[br]of various Western governments,

1:55:25.640,1:55:29.428
and increasing the debt[br]of these Western countries

1:55:29.520,1:55:34.514
requires backing from[br]these private-sector banks,

1:55:36.880,1:55:41.396
the underwriters of national debts.

1:55:41.640,1:55:44.473
In the end, everyone goes into debt

1:55:45.440,1:55:47.635
except the speculators,

1:55:47.760,1:55:52.959
who are creditors of both Korea[br]and the Western governments

1:55:53.200,1:55:56.192
who came to Korea’s rescue

1:55:56.480,1:55:59.313
through the intermediary[br]of the IMF program.

1:55:59.560,1:56:01.278
So, what happens?

1:56:03.720,1:56:05.358
The Korean economy

1:56:06.480,1:56:08.118
is doomed to bankruptcy.

1:56:08.320,1:56:13.553
Its bank shares and high-tech[br]industry are sold at a discount.

1:56:16.000,1:56:18.753
What’s in the process of happening

1:56:18.960,1:56:23.988
is the transfer of[br]all this country’s industrial wealth

1:56:24.320,1:56:28.438
to American foreign investors,

1:56:28.680,1:56:30.716
to the point where …

1:56:31.720,1:56:37.397
its shares are practically taken over[br]for an absolute pittance.

1:56:38.120,1:56:40.111
I’ll give you an example

1:56:41.280,1:56:44.716
of one of the primary Korean banks

1:56:44.920,1:56:48.515
that was restructured[br]on the recommendation of the IMF,

1:56:48.720,1:56:52.269
following this operation,[br]because it had conditions.

1:56:53.160,1:56:58.234
This bank, Korea First Bank,[br]was sold for $450 million.

1:56:58.720,1:57:03.714
It was sold to Californian and[br]Texan investors for $450 million.

1:57:04.240,1:57:08.279
But a condition of sale was

1:57:09.120,1:57:14.831
that the Korean government[br]finance the bad debts of this bank

1:57:15.080,1:57:16.638
with grants,

1:57:17.360,1:57:21.876
subsidies that were[br]35 times the purchase price.

1:57:22.640,1:57:25.279
Something in the order[br]of over $15 billion.

1:57:25.520,1:57:27.954
These American investors[br]arrive in Korea,

1:57:28.240,1:57:33.473
and overnight they gain control over[br]the whole local financial apparatus,

1:57:33.760,1:57:34.875
the commercial banks,

1:57:35.120,1:57:39.079
and they hold the debt[br]of major Korean companies

1:57:39.280,1:57:41.635
like Hyundai, Daewoo, etc.

1:57:41.920,1:57:47.199
And they’re in a position to dictate[br]the break-up of these companies!

1:57:47.440,1:57:51.149
Part of Daewoo[br]has now been sold to GM.

1:57:51.360,1:57:55.035
Other Korean companies will be sold.

1:57:55.760,1:57:59.469
So, through a mechanism[br]that was initially based on

1:57:59.720,1:58:01.631
manipulating financial markets,

1:58:04.440,1:58:07.876
they take possession[br]of an entire economy.

1:58:08.480,1:58:12.598
Korean companies see[br]credit dried up by bank crisis.

1:58:12.720,1:58:15.473
A million people[br]affected by unemployment

1:58:15.600,1:58:16.953
The IMF’s ‘beggars’”

1:58:17.200,1:58:20.317
The most serious social crisis[br]South Korea has faced

1:58:20.480,1:58:21.959
since the war began.

1:58:22.240,1:58:25.437
Early March, the number[br]of unemployed surpasses a million”

1:58:26.320,1:58:31.560
The economic liberalization campaign[br]led by the financial markets

1:58:31.560,1:58:34.960
wouldn’t have enjoyed[br]the same success

1:58:34.960,1:58:40.360
without the precious collaboration[br]of the Bretton Woods institutions,

1:58:40.360,1:58:45.560
which constitute another major[br]vehicle of neo-liberal ideology:

1:58:45.560,1:58:49.400
the International Monetary Fund[br](IMF),

1:58:49.400,1:58:53.200
the World Bank

1:58:53.200,1:58:58.000
and the World Trade Organization[br](WTO, formerly GATT).

1:58:58.000,1:59:02.600
The IMF and World Bank[br]were established in 1944

1:59:02.600,1:59:07.920
to ensure the stability of exchange[br]rates and support the reconstruction

1:59:07.920,1:59:11.440
of countries devastated[br]by World War II.

1:59:11.440,1:59:17.200
Over time, however, the U.S. and[br]Europe have considerably altered

1:59:17.200,1:59:22.480
the mandate of the twin institutions,[br]based in Washington.

1:59:22.480,1:59:27.280
Indeed, shortly after the U.S.’s[br]unilateral decision in 1971

1:59:27.280,1:59:32.080
to put an end to[br]the International Monetary System,

1:59:32.080,1:59:39.080
the IMF and World Bank were invested[br]with an entirely new mandate:

1:59:39.080,1:59:43.120
to impose economic liberalization[br]upon developing countries,

1:59:43.120,1:59:47.520
by fixing as a “conditionality”[br]to granting any loan

1:59:47.520,1:59:51.760
the adoption of a series[br]of neo-liberal measures.

1:59:51.760,1:59:59.280
Some have described this set of[br]economic reforms as “shock therapy”,

1:59:59.280,2:00:04.513
while others ironically call it[br]“the Washington Consensus”.

2:00:05.520,2:00:05.640
neo-liberalism or neo-colonialism?

2:00:05.640,2:00:13.200
neo-liberalism or neo-colonialism?

2:00:13.200,2:00:22.800
strong-arm tactics[br]of the Bretton Woods institutions

2:00:22.800,2:00:24.720
or

2:00:24.720,2:00:30.477
the Washington Consensus

2:00:33.000,2:00:36.754
Washington, where the World Bank[br]and IMF are headquartered,

2:00:37.000,2:00:40.197
started dictating[br]to the rest of the world,

2:00:40.480,2:00:43.517
especially the poorest,[br]almost-bankrupt countries,

2:00:43.720,2:00:46.314
how to apply sound economic science.

2:00:46.520,2:00:49.557
It was called[br]“structural adjustment measures”.

2:00:49.960,2:00:53.236
or “the structural adjustment plan”,[br]dictated by the IMF,

2:00:53.480,2:00:58.759
and bolstered with World Bank loans[br]to the countries concerned.

2:00:59.240,2:01:01.310
Equatorial Guinea, 2006

2:01:01.520,2:01:05.479
Many dozens of countries[br]were thrown into chaos

2:01:06.600,2:01:10.752
precisely because of the measures[br]of the IMF and the World Bank,

2:01:11.400,2:01:14.551
of which there are many.[br]It would take too long to outline

2:01:14.800,2:01:20.158
fundamental adjustment measures[br]vs. short-term cyclical adjustments

2:01:20.400,2:01:21.435
but overall,

2:01:22.400,2:01:26.712
let’s say the 3 or 4 most important[br]measures can be summed up.

2:01:27.360,2:01:31.353
first measure:[br]reduce State expenditures

2:01:32.080,2:01:36.358
The first measure imposed[br]on countries approaching default,

2:01:36.640,2:01:38.392
i.e., poverty-stricken,

2:01:41.680,2:01:44.797
was governmental non-deficit[br]or deficit reduction:

2:01:45.000,2:01:47.639
the reduction of State expenditures.

2:01:48.520,2:01:51.239
Shrink the government,[br]shrink its expenditures.

2:01:51.840,2:01:55.628
second measure:[br]privatization

2:01:57.000,2:01:59.639
In privatization, who will buy?

2:02:00.840,2:02:03.115
There are no local operators.

2:02:03.280,2:02:06.078
If there were enough[br]local money to buy

2:02:06.320,2:02:11.997
entire oil, phosphate[br]or steel companies,

2:02:12.800,2:02:15.030
the country wouldn’t be so poor.

2:02:16.960,2:02:22.193
The extraversion of these Third-World[br]impoverished economies gets so bad,

2:02:22.560,2:02:28.032
they sell off their last[br]national economic interests

2:02:28.320,2:02:30.356
to foreign interests.

2:02:31.280,2:02:36.798
So, multi-nationals start buying[br]and relocating to these countries,

2:02:37.000,2:02:40.276
due to low wages and dollarization.

2:02:40.520,2:02:46.675
It gets cheaper for multi-nationals[br]to produce there than at home.

2:02:47.360,2:02:51.239
But these multi-nationals[br]can also acquire, dirt cheap,

2:02:51.520,2:02:54.193
installations and[br]production capacities,

2:02:54.440,2:02:57.750
like sugar production and refining,

2:02:57.920,2:03:01.230
oil or gas production[br]and pre-refining,

2:03:01.440,2:03:05.115
gas liquefaction[br]or mineral transport, etc.

2:03:05.360,2:03:10.229
at low prices, which cost these[br]national economies years and years.

2:03:10.760,2:03:14.548
third measure:[br]currency devaluation

2:03:15.480,2:03:18.358
Devaluing local currency[br]means, all of a sudden,

2:03:18.760,2:03:20.478
for already-poor countries,

2:03:21.040,2:03:25.113
anything imported becomes[br]proportionally more expensive

2:03:25.920,2:03:28.480
than the level of devaluation.

2:03:28.600,2:03:32.275
When the CFA franc[br]was suddenly devalued by half

2:03:32.400,2:03:34.231
in the early ’90s,

2:03:34.400,2:03:39.838
well, suddenly about[br]a third of Africa or more

2:03:40.400,2:03:42.834
that was using the CFA franc,

2:03:42.960,2:03:47.476
found itself with half its[br]purchasing power overnight.

2:03:48.240,2:03:52.631
So, your wage, that lets you live[br]at a certain level,

2:03:52.840,2:03:55.229
only gives you half of that.

2:03:57.320,2:04:01.233
That’s an immediate 100% inflation.

2:04:01.800,2:04:06.430
Add to that manufactured or[br]semi-manufactured products,

2:04:07.200,2:04:10.829
refined products and[br]everything you’d expect Africa,

2:04:11.080,2:04:13.913
West and Central French Africa,[br]to import.

2:04:14.160,2:04:19.075
Suddenly with the franc cut in half,[br]these things are twice as expensive.

2:04:19.440,2:04:23.592
Combine that with the effects[br]of local devaluation,

2:04:23.800,2:04:28.749
and products and services[br]suddenly cost you 4, 5, 6 times more,

2:04:29.000,2:04:30.752
from one day to the next!

2:04:31.360,2:04:35.239
Add time, and see what happens.[br]Local products

2:04:35.520,2:04:39.069
made from imported[br]semi-raw materials,

2:04:39.560,2:04:44.634
or that need imported binders,[br]glues, solvents, paint, etc.,

2:04:44.880,2:04:47.394
over a longer wavelength,

2:04:48.080,2:04:52.870
1 , 2, 3, 6 months later, they become[br]2, 3, 4 times more expensive.

2:04:53.520,2:04:59.675
fourth measure: reorient[br]the national economy around export

2:05:00.240,2:05:04.472
If we measure the effects[br]of making the poorest countries,

2:05:04.560,2:05:07.518
where the IMF and[br]World Bank intervene,

2:05:08.360,2:05:11.033
boost the production[br]of exportable products,

2:05:13.040,2:05:16.316
we make them compete[br]with the same products.

2:05:16.560,2:05:21.554
Coffee-producing countries[br]all start producing more coffee.

2:05:21.800,2:05:24.598
Cocoa, petroleum, same thing.

2:05:25.560,2:05:26.754
Bauxite …

2:05:29.360,2:05:32.796
Whatever it is … Sugar, wheat …

2:05:33.680,2:05:36.035
All the base products

2:05:37.280,2:05:41.910
suffer falling prices[br]due to over-production.

2:05:42.120,2:05:46.511
Not only do their prices fall,[br]and countries made to compete,

2:05:46.760,2:05:51.311
but added to this is the inflation[br]effect from currency devaluation

2:05:51.560,2:05:56.190
and the automatic increase[br]in anything the country imports.

2:05:56.680,2:06:00.958
We witness a kind of reversal[br]of the countries’ interests -

2:06:01.160,2:06:05.278
even as we pretend to defend them -[br]caused by this initial phenomenon.

2:06:06.880,2:06:09.792
All their imports[br]are increasingly expensive,

2:06:10.080,2:06:13.117
while all their exports[br]bring in less.

2:06:13.600,2:06:19.357
They enter a spiral of indebtedness[br]that means that now, in 2002,

2:06:20.000,2:06:24.198
servicing the debt[br]of most of the poorest countries -

2:06:24.960,2:06:31.308
I’m talking about countries like[br]Bangladesh, Ruanda, Burundi, Togo -

2:06:31.560,2:06:35.473
countries like that,[br]that are already minus 250th …

2:06:36.400,2:06:41.918
Their debt servicing alone can be[br]up to 600 x their export revenues.

2:06:42.440,2:06:46.228
fifth measure:[br]“getting the prices right”

2:06:46.920,2:06:49.878
Getting the prices right[br]goes like this:

2:06:50.120,2:06:54.875
no subsidies for basic necessities,[br]so no more subsidized housing,

2:06:55.080,2:06:59.153
no more subsidies[br]for health, oil, rice …

2:07:01.440,2:07:03.908
transportation …[br]No more subsidies,

2:07:04.520,2:07:06.875
in the name of the right price.[br]What does this mean?

2:07:07.120,2:07:11.716
In terms of dollars, all prices[br]become equivalent world wide.

2:07:12.960,2:07:17.750
If you travel with dollars,[br]as I, a Canadian citizen, do,

2:07:18.440,2:07:22.513
wherever you go, products[br]and services cost the same.

2:07:22.720,2:07:26.429
Whether in Cotonou, Benin,[br]one of the poorest countries,

2:07:26.720,2:07:29.439
or Chicago, New York, Paris,

2:07:29.640,2:07:34.873
your Holiday Inn or Sheraton room,[br]your Holiday Inn meal

2:07:34.960,2:07:39.476
cost about the same in dollars[br]throughout the world. Fine.

2:07:40.040,2:07:45.398
But in Cotonou, capital of Benin,[br]one of the world’s poorest countries,

2:07:45.640,2:07:50.191
one night at the Sheraton,[br]where I sleep when I go there,

2:07:50.440,2:07:55.195
equals six months’ salary[br]of a Benin public servant.

2:07:56.040,2:07:59.510
One meal in the restaurant[br]of this Cotonou hotel

2:07:59.760,2:08:04.959
is a week’s work[br]for a minor Benin official.

2:08:05.520,2:08:11.550
sixth measure: liberalization[br]of investment and reverse wage parity

2:08:12.520,2:08:16.593
Next comes reverse wage parity.[br]This consists in …

2:08:16.840,2:08:20.435
a succinct formula[br]that slides all wages

2:08:21.320,2:08:23.788
down to the lowest, by sector,

2:08:28.040,2:08:33.717
and does so in concert with[br]the “movement” to liberalize trade.

2:08:34.560,2:08:35.629
I’ll explain.

2:08:35.840,2:08:41.392
NAFTA is announced: the Mexico,[br]U.S., Canada free trade zone.

2:08:42.400,2:08:48.270
Wages naturally slide from the[br]American level to the Mexican level.

2:08:49.120,2:08:53.955
That’s what happens when Mexican,[br]Canadian and American labour compete.

2:08:54.240,2:08:59.519
Relocation to Mexico means NAFTA[br]has created employment in Mexico.

2:09:00.520,2:09:06.072
But in net terms,[br]6 or 7 years after NAFTA,

2:09:08.480,2:09:13.190
wages in the whole region of Leone,[br]northern Mexico,

2:09:13.440,2:09:16.876
where the American[br]multi-nationals moved in -

2:09:17.480,2:09:20.278
while they shut down[br]proportionately in the U.S. …

2:09:20.520,2:09:23.990
There has been[br]an elimination of jobs

2:09:24.240,2:09:27.471
that were high-paying,[br]compared to Mexico,

2:09:28.120,2:09:32.113
to “create” jobs in Mexico

2:09:32.360,2:09:37.070
that are infinitely lower-paid.[br]So, for the past 5 years,

2:09:37.560,2:09:42.509
the average wage in the most[br]active, richest region of Mexico,

2:09:42.760,2:09:45.558
where the American[br]multi-nationals relocated …

2:09:46.440,2:09:51.673
Wages dropped in net terms[br]of purchasing power by 23%.

2:09:52.560,2:09:58.510
Five years ago, a General Motors[br]worker in northern Mexico

2:09:58.760,2:10:04.915
could survive and maintain[br]a family of 1 or 2 kids.

2:10:05.040,2:10:10.194
Today, the same worker[br]can support only his own needs.

2:10:10.400,2:10:11.469
Survive alone.

2:10:12.680,2:10:16.912
On the eve of the summit[br]to be held in northern Mexico,

2:10:17.920,2:10:23.199
they’re building in Monterey[br]a wall to hide the slums.

2:10:23.760,2:10:27.150
Three meters high[br]and kilometers long,

2:10:27.400,2:10:30.949
so summit participants[br]won’t see the poverty there.

2:10:31.400,2:10:36.633
That’s reverse parity: sliding wages[br]from highest to lowest by sector.

2:10:36.800,2:10:42.079
And now that the most modern sectors[br]- like information technology,

2:10:43.000,2:10:48.438
electronics, etc. - are increasingly[br]saleable in the Third World,

2:10:48.960,2:10:52.748
you have entire companies -[br]such as Swissair I think,

2:10:53.320,2:10:56.437
and other companies,[br]the steel industry, whatever -

2:10:56.680,2:11:00.798
that do all their accounting,[br]financial and IT work in Bombay.

2:11:02.680,2:11:08.312
A Bombay accountant who does the[br]same work as a Swiss or Canadian one

2:11:08.480,2:11:10.914
costs 100 times less.

2:11:11.120,2:11:15.398
A programmer who writes an aviation[br]program is 200 times cheaper.

2:11:16.360,2:11:19.318
And so on.[br]That’s reverse wage parity.

2:11:19.760,2:11:23.958
What bothers me is that[br]when we combine these measures -

2:11:24.200,2:11:27.317
devaluation, export, debt servicing,

2:11:27.960,2:11:30.554
privatization,[br]shrinking public budgets,

2:11:30.800,2:11:33.872
forced public lay-offs[br]making more unemployed …

2:11:34.120,2:11:36.759
Combine all these[br]with the prices and wages,

2:11:37.000,2:11:40.037
and we come to the situation[br]we’re in today:

2:11:40.320,2:11:45.678
rich countries are infinitely richer[br]and poor countries infinitely poorer.

2:11:46.640,2:11:50.997
And I’m alarmed to see[br]the World Bank and the IMF

2:11:51.240,2:11:56.951
trying to repeat in Argentina exactly[br]what massacred the Argentine economy.

2:11:57.800,2:12:02.590
It’s like we never learn.[br]Why not? There’s a reason.

2:12:03.200,2:12:08.274
It’s in their interest that this[br]ideology that explains the world,

2:12:08.520,2:12:11.990
continue to survive,[br]as long as the planet,

2:12:12.320,2:12:14.880
in its entirety,[br]is exploitable this way.

2:12:17.920,2:12:22.710
At the International Monetary Fund,[br]the right to vote is exercised

2:12:22.960,2:12:25.394
within the board of directors.

2:12:25.520,2:12:29.593
Now, it’s a right based on …

2:12:29.920,2:12:32.115
financial participation,

2:12:32.360,2:12:35.397
or the financial contribution[br]of each State.

2:12:35.920,2:12:38.832
In fact, it’s the IMF shareholders.

2:12:39.080,2:12:42.197
Same for the World Bank.[br]It’s not like the U.N.

2:12:42.440,2:12:46.911
The main shareholders[br]of the IMF are, of course,

2:12:47.200,2:12:51.478
the U.S., Germany, Japan,[br]Great Britain, France, etc.

2:12:51.680,2:12:55.309
But ultimately, that’s just[br]one aspect, because …

2:12:55.560,2:13:01.430
under the political representation[br]in an intergovernmental organization,

2:13:01.760,2:13:05.275
there are other issues.[br]It’s the backroom.

2:13:06.400,2:13:10.996
It’s influence-peddling between[br]Wall Street, on one hand,

2:13:11.240,2:13:16.030
and Washington. It’s the connections[br]between the IMF and the think tanks:

2:13:16.320,2:13:19.232
the Heritage Foundation,[br]the Brookings Institute.

2:13:19.440,2:13:23.672
The American treasury’s involved.[br]The U.S. Federal Reserve.

2:13:25.880,2:13:30.431
This all forms what’s been called[br]“the Washington Consensus”.

2:13:30.560,2:13:32.278
It’s a power game.

2:13:33.480,2:13:35.880
In 2005, Paul Wolfowitz,

2:13:35.880,2:13:40.880
one of the most radical ideologues[br]of imperialist politics

2:13:40.880,2:13:44.040
and President Bush’s warmonger,[br]passed directly

2:13:44.040,2:13:50.720
from the U.S. Defense Department[br]to being head of the World Bank.

2:13:50.720,2:13:53.480
This appointment put an end

2:13:53.480,2:13:58.240
to any ambiguity about[br]the World Bank’s real goals

2:13:58.240,2:14:03.189
and revealed the true face[br]of the Bretton Woods institutions.

2:14:11.840,2:14:14.593
Bretton Woods conference,[br]Mount Washington Hotel, 1944

2:14:14.800,2:14:18.429
After the war,[br]naturally there was the creation

2:14:19.440,2:14:22.671
of the IMF and the World Bank.

2:14:23.760,2:14:28.197
In the mind of John Maynard Keynes,[br]the architect of these institutions,

2:14:28.760,2:14:32.196
a third thing was needed.

2:14:32.480,2:14:37.395
A third organization,[br]the International Trade Organization.

2:14:37.640,2:14:40.279
This didn’t work.[br]The Americans didn’t want it.

2:14:41.600,2:14:44.194
So, as a fallback position,

2:14:44.600,2:14:46.079
GATT was created.

2:14:49.600,2:14:53.957
It was created in ’47[br]and was supposed to take care of

2:14:54.080,2:14:59.313
lowering customs duties[br]on industrial products.

2:15:00.000,2:15:02.309
GATT worked fairly well

2:15:02.520,2:15:06.354
because during[br]its 50 years of existence,

2:15:08.520,2:15:12.149
there were major reductions[br]in duties,

2:15:12.360,2:15:17.593
which went from[br]an average of 40% to 50%

2:15:18.160,2:15:20.037
down to 4% or 5%.

2:15:20.280,2:15:24.796
But that covered only[br]industrial goods. Products.

2:15:26.240,2:15:28.595
So, the need was felt,

2:15:28.800,2:15:34.352
primarily by transnational[br]financial companies

2:15:35.160,2:15:37.594
to create an organization

2:15:38.600,2:15:42.354
that would cover many more domains

2:15:43.040,2:15:46.430
than just industrial products.[br]That’s why,

2:15:48.000,2:15:52.994
at the end of the Uruguay Round,[br]the final GATT negotiation cycle,

2:15:53.960,2:15:58.829
the decision was made to create[br]the World Trade Organization,

2:15:59.760,2:16:04.914
which became a reality[br]on January 1, 1995,

2:16:05.120,2:16:10.069
and covers a multitude of agreements.[br]Not just the perennial GATT

2:16:10.320,2:16:12.675
but the agricultural accord,

2:16:12.800,2:16:16.475
the TRIPS accord[br]on intellectual property,

2:16:16.600,2:16:21.754
the general accord on the service[br]trade, a huge thing that covers

2:16:22.400,2:16:25.153
11 main areas and 160 sub-areas,

2:16:25.360,2:16:28.716
so that all human activities[br]are found there,

2:16:29.920,2:16:32.593
covered by GATT regulations:

2:16:32.840,2:16:36.196
education, health, culture,[br]environment.

2:16:36.480,2:16:40.029
There are other technical agreements

2:16:40.320,2:16:44.552
that may seem technical,[br]but that are extremely political:

2:16:45.000,2:16:48.276
the accords on[br]technical trade barriers,

2:16:49.000,2:16:52.674
on sanitary and[br]phytosanitary measures.

2:16:52.959,2:16:57.511
These are accords on standards[br]that various members, i.e., States,

2:16:58.000,2:17:00.308
can put in place

2:17:01.000,2:17:06.074
and which declare that certain norms[br]are technical barriers to trade.

2:17:06.400,2:17:10.712
Perhaps lesser known,[br]but the most important of all

2:17:11.240,2:17:14.277
is the Dispute Settlement[br]Understanding,

2:17:14.879,2:17:19.510
which is the very powerful[br]judicial branch

2:17:19.760,2:17:21.990
of the World Trade Organization,

2:17:22.240,2:17:26.790
which enables it to settle[br]disputes among members

2:17:27.040,2:17:29.429
and exercise jurisprudence.

2:17:29.959,2:17:32.155
So, who judges?

2:17:32.719,2:17:37.748
We don’t really know.[br]Experts are chosen from lists.

2:17:40.040,2:17:43.510
Countries may recommend someone[br]for these lists.

2:17:43.760,2:17:46.478
They’re generally private citizens.

2:17:46.719,2:17:51.510
Business lawyers or sometimes[br]former business executives.

2:17:52.160,2:17:56.039
But they’re unidentified.[br]They meet in secret,

2:17:56.320,2:17:58.072
generally in three’s.

2:17:59.200,2:18:00.951
They decide fairly quickly.

2:18:01.240,2:18:04.596
There’s also an appeals process,

2:18:04.840,2:18:08.913
but appeals have the same conditions:[br]a new panel,

2:18:10.080,2:18:11.832
and it’s done in secret.

2:18:12.080,2:18:18.030
What’s important to know about the[br]DSB, the Dispute Settlement Body,

2:18:18.240,2:18:20.117
is that it’s at once

2:18:21.480,2:18:25.678
the legislator, the jurist[br]and the executive,

2:18:25.920,2:18:31.630
because it renders verdicts[br]and establishes jurisprudence.

2:18:32.639,2:18:35.950
It places itself above all the laws

2:18:36.160,2:18:38.389
that have been passed

2:18:38.719,2:18:42.508
by the countries’[br]individual legislatures,

2:18:42.760,2:18:48.153
but also above international law,[br]established laboriously over 50 years.

2:18:48.240,2:18:49.593
Human rights,

2:18:51.559,2:18:54.518
multi-lateral conventions[br]on the environment,

2:18:55.559,2:18:59.838
the basic labour conventions of the[br]International Labour Organization.

2:19:00.080,2:19:04.834
All this is forgotten and verdicts[br]are rendered at the DSB

2:19:05.040,2:19:07.793
that say, “Business trumps all,

2:19:08.959,2:19:13.795
and we don’t want to hear about[br]your environmental conventions.”

2:19:14.080,2:19:19.074
And it’s executive because[br]it has the power to impose sanctions.

2:19:19.840,2:19:23.674
When a country disagrees[br]with its verdict, it’s told, “Fine.

2:19:24.639,2:19:29.555
Don’t make your legislation conform[br]to our verdict, but you’ll pay.

2:19:29.799,2:19:31.313
You’ll pay annually,

2:19:33.280,2:19:38.718
through customs duties that your[br]adversary in this settlement process

2:19:38.959,2:19:42.669
will determine.”[br]So when the U.S. decides

2:19:43.360,2:19:46.716
to impose duties on Europe,[br]for France,

2:19:46.959,2:19:50.839
on foie gras, mustard[br]and roquefort,

2:19:51.040,2:19:53.793
it’s perfectly within its rights.

2:19:54.400,2:20:00.589
And it’s expensive. And few countries[br]can afford this annual leaching.

2:20:02.280,2:20:08.037
At the WTO, various negotiations[br]go on at the same time.

2:20:08.520,2:20:13.230
A country with no ambassador[br]in Geneva,

2:20:13.440,2:20:16.273
or that shares one[br]with other countries,

2:20:16.520,2:20:22.231
as is the case with the Africans[br]and with many small micro-States …

2:20:26.680,2:20:31.470
It’s impossible for them[br]to follow negotiations.

2:20:32.360,2:20:38.629
So, the South doesn’t know[br]what’s going on in all areas,

2:20:38.880,2:20:41.952
and they say so openly.[br]One Southern ambassador

2:20:42.240,2:20:45.357
said, “The WTO[br]is like a multiplex theatre.

2:20:45.680,2:20:49.593
You must pick a film,[br]you can’t see them all.”

2:20:50.880,2:20:55.237
So they pick only what seems[br]important to their country.

2:20:55.760,2:20:58.479
So who really makes the decisions?

2:20:58.720,2:21:03.077
They say it’s by consensus.[br]There’s never been a vote.

2:21:04.080,2:21:09.438
And the American ambassador said[br]a vote would be a very bad precedent.

2:21:09.640,2:21:11.870
So much for democracy.

2:21:12.960,2:21:16.589
In reality, it’s the Quad.[br]The Quad is 4 countries -

2:21:16.840,2:21:21.709
Canada, the U.S.,[br]the European Union and Japan -

2:21:22.240,2:21:26.233
that meet all the time[br]and have numerous staff

2:21:26.720,2:21:28.153
at the WTO,

2:21:28.360,2:21:31.352
and that come to their own consensus

2:21:31.560,2:21:34.836
and come back[br]before the plenary assembly

2:21:35.080,2:21:37.958
and say, “Well, you agree,[br]don’t you?”

2:21:40.480,2:21:45.873
And it’s very hard for[br]Southern countries to say no.

2:21:46.120,2:21:48.759
It takes courage[br]and they must be certain,

2:21:48.960,2:21:53.556
because pressure tactics[br]against them exist.

2:21:54.480,2:21:56.357
And don’t delude yourself.

2:21:56.440,2:22:02.515
If you’re dependent on the IMF[br]or have problems with the U.S.,

2:22:02.760,2:22:06.833
you know you can’t step out of line.

2:22:07.840,2:22:13.360
Certainly, the financial markets[br]and the Bretton Woods institutions

2:22:13.360,2:22:18.920
have become privileged instruments[br]of the neo-liberal conquest.

2:22:18.920,2:22:23.120
But some countries[br]still obstinately refuse

2:22:23.120,2:22:26.560
to join this forced march.

2:22:26.560,2:22:30.920
That’s when colonialism[br]sheds its new suit

2:22:30.920,2:22:35.200
and comes forth[br]in its old warrior gear.

2:22:35.200,2:22:42.920
From the break-up of Yugoslavia[br]to the war in Afghanistan via Darfur,

2:22:42.920,2:22:49.960
post-Cold War conflicts[br]hinge on very different issues

2:22:49.960,2:22:57.800
than the ones Western propaganda[br]presents as new “military humanism”.

2:22:57.800,2:23:03.960
Control over resources,[br]financial flux and geostrategic space -

2:23:03.960,2:23:11.240
like the dictates of the IMF,[br]the World Bank and the WTO -

2:23:11.240,2:23:17.440
ensure the domination of mega-[br]corporations and giant capitalists

2:23:17.440,2:23:20.360
over the entire planet.

2:23:20.360,2:23:25.160
Also, the colonial governments[br]that the conquerors have installed

2:23:25.160,2:23:30.400
have soon moved to adopt[br]the dogma of neo-liberal ideology.

2:23:30.400,2:23:34.234
And the encirclement is complete.

2:23:35.240,2:23:35.400
neo-liberalism or neo-colonialism?

2:23:35.400,2:23:42.920
neo-liberalism or neo-colonialism?

2:23:42.920,2:23:50.600
strong-arm tactics[br]of military humanism

2:23:50.600,2:23:52.520
or

2:23:52.520,2:23:58.197
war is peace

2:24:02.040,2:24:04.918
The Dayton Accords were signed in ’95

2:24:05.520,2:24:07.590
on an American military base.

2:24:08.320,2:24:12.836
And if we consult[br]the text of these accords,

2:24:13.840,2:24:18.072
we see the Constitution[br]of Bosnia-Herzegovina appended

2:24:18.320,2:24:19.799
to the Dayton accords.

2:24:20.040,2:24:25.398
This constitution was written by[br]American consultants and lawyers,

2:24:25.800,2:24:30.555
who got together and wrote[br]a fundamental document

2:24:31.000,2:24:34.788
without so much[br]as a constituent assembly

2:24:35.040,2:24:37.395
of Bosnia-Herzegovina citizens.

2:24:37.760,2:24:40.797
And we can read[br]in this constitution

2:24:43.080,2:24:45.958
prepared by the United States,

2:24:49.600,2:24:50.999
Article X:

2:24:52.040,2:24:54.838
The central bank[br]of Bosnia-Herzegovina

2:24:55.520,2:25:02.119
shall not function as a central bank.[br]It must function as a currency board.

2:25:04.400,2:25:07.437
In other words, a colonial bank,

2:25:07.640,2:25:11.633
with no chance[br]of creating money.

2:25:11.880,2:25:16.954
Meaning, it’s completely trapped[br]by its external creditors.

2:25:17.320,2:25:22.030
Well, that’s the model that[br]currently exists in Argentina.

2:25:22.280,2:25:28.150
Moreover, in the Bosnia-Herzegovina[br]Constitution, written in Dayton,

2:25:29.000,2:25:30.194
we read that

2:25:30.800,2:25:36.796
the IMF will nominate the president[br]of Bosnia-Herzegovina’s central bank,

2:25:37.120,2:25:39.350
and this person …

2:25:39.600,2:25:42.194
may not be a citizen

2:25:43.080,2:25:45.913
of either Bosnia-Herzegovina[br]or a neighbouring country.

2:25:46.160,2:25:50.358
In other words,[br]we see that this constitution,

2:25:50.560,2:25:52.357
which is totally fabricated

2:25:52.560,2:25:57.953
and has no citizen base[br]within Bosnia-Herzegovina,

2:25:58.640,2:26:01.279
is installing a colonial government.

2:26:02.080,2:26:07.074
We don’t call it that. We say[br]it’s the international community …

2:26:07.360,2:26:12.639
But ultimately we see that[br]all the administrative structures

2:26:13.680,2:26:16.478
are dominated by foreigners.

2:26:16.960,2:26:22.318
Budgets are dominated by foreigners.[br]Monetary policy is non-existent.

2:26:26.120,2:26:28.759
Nevertheless, the Dayton Accords

2:26:29.000,2:26:34.677
are now being presented by the[br]so-called international community

2:26:34.880,2:26:39.237
as the answer to the problems[br]of various countries.

2:26:39.440,2:26:44.116
They’d like to establish[br]the same management model -

2:26:46.760,2:26:49.479
colonial administration -

2:26:51.240,2:26:54.232
in countries like[br]Macedonia and Yugoslavia.

2:26:55.520,2:26:58.671
Indeed, they talk about a mosaic.

2:26:58.800,2:27:00.950
A mosaic of protectorates.

2:33:09.040,2:33:12.589
Adaptation: Kathleen Fleming[br]Anrà Médiatextes, Montréal

2:33:13.040,2:33:16.589
srt & ripped by Tokadime