Globalization: How Capitalism Is Killing Democracy

by Robert B. Reich (Foreign Policy, September/October 2007)

Free markets were supposed to lead to free societies. Instead, today’s supercharged global economy is eroding the power of the people in democracies around the globe. Welcome to a world where the bottom line trumps the common good and government takes a back seat to big business.

It was supposed to be a match made in heaven. Capitalism and democracy, we’ve long been told, are the twin ideological pillars capable of bringing unprecedented prosperity and freedom to the world. In recent decades, the duo has shared a common ascent. By almost any measure, global capitalism is triumphant. Most nations around the world are today part of a single, integrated, and turbocharged global market. Democracy has enjoyed a similar renaissance. Three decades ago, a third of the world’s nations held free elections; today, nearly two thirds do.

Conventional wisdom holds that where either capitalism or democracy flourishes, the other must soon follow. Yet today, their fortunes are beginning to diverge. Capitalism, long sold as the yin to democracy’s yang, is thriving, while democracy is struggling to keep up. China, poised to become the world’s third largest capitalist nation this year after the United States and Japan, has embraced market freedom, but not political freedom. Many economically successful nations—from Russia to Mexico—are democracies in name only. They are encumbered by the same problems that have hobbled American democracy in recent years, allowing corporations and elites buoyed by runaway economic success to undermine the government’s capacity to respond to citizens’ concerns.

The rest of the story: Foreign Policy

The Press Is Free for Them What Owns It

Undercover, under fire
The Washington press corps is too busy cozying up to the people it covers to get at the truth.
by Ken Silverstein, the Washington editor of Harper's Magazine (LATimes 2007-06-30)

"EARLIER THIS YEAR, I put on a brand-new tailored suit, picked up a sleek leather briefcase and headed to downtown Washington for meetings with some of the city's most prominent lobbyists. I had contacted their firms several weeks earlier, pretending to be the representative of a London-based energy company with business interests in Turkmenistan. I told them I wanted to hire the services of a firm to burnish that country's image.

"I didn't mention that Turkmenistan is run by an ugly, neo-Stalinist regime. They surely knew that, and besides, they didn't care. As I explained in this month's issue of Harper's Magazine, the lobbyists I met at Cassidy & Associates and APCO were more than eager to help out. In exchange for fees of up to $1.5 million a year, they offered to send congressional delegations to Turkmenistan and write and plant opinion pieces in newspapers under the names of academics and think-tank experts they would recruit. They even offered to set up supposedly 'independent' media events in Washington that would promote Turkmenistan (the agenda and speakers would actually be determined by the lobbyists)."

The rest of the story: The Los Angeles Times.