by Naresh Jotwani

From behind the curtain, global finance drives global politics, exploitation and conflict. To understand the nature of this ruthless game, we need to look at how human societies form and how they function. Our previous post (here) discussed how individuals may be subject to different types of pressure, and how they may adapt or respond. Since individuals are shaped by their upbringing and their societies, the societal aspects of human life are highly relevant.

What exactly is a society? Surely it is not merely a collection of ‘atomised individuals’! Margaret Thatcher once proclaimed, in her typical grand manner: ‘There is no such thing as society!’. But in her last few difficult years, she was supported and helped by people within her own society.

In our context, we shall define both ‘society’ and ‘nation state’ as being comprised of a multiplicity of communities. So the next question is: What exactly is a ‘community’?

The word ‘community’ originates in Greek, and its meaning is closely related to ‘sharing’. A community is defined by shared beliefs, myths, faith, family ties … and so on. Men and women are better able to face serious life issues – childbirth, nurture, livelihood, marriage, health, death – through their belonging to a community. In that way, the sense of belonging to a community serves a central and vital purpose in most people’s lives.

[Note: Many people seem to almost lose their minds upon hearing the word ‘communism’, without understanding the true meaning of ‘community’. It is almost as if Marx’s writing about the ‘communist manifesto’ had erased the simple but profound concept of sharing from western societies. Based on the true meaning of the word, however, one can believe strongly in sharing, while opposing equally strongly the political theory known as ‘communism’. Most people in rural and small town India instinctively have that attitude.]

In the current age of globalization, almost every society in the world comprises of a multiplicity of different communities. This is so because migration to another society does not lead to a dissolution of community identity and ties. In fact, the identity and the ties are valued even more when parts of a community are dispersed geographically. This has always been true; recently, easier travel and almost zero-cost social media have aided the process.

Villages do not experience much inward migration, and so a long-standing culture of inter-dependent communities can be observed in rural societies. The so-called ‘post-modern’ urban societies, which have largely shed ‘pre-modern’ community identities, nonetheless consist of tiny urban ‘micro- communities’ of like-minded people, with similar background and economic situation.

India, in particular, hosts an incredible diversity of communities across its length and breadth. Literally tens of thousands of distinct communities have preserved their identities in India over the past centuries.

In community life, an individual’s expectations, aspirations and self-worth relate to his community, rather than to the broader society. Therefore the idea of ‘economic class’ or ‘class struggle’ is not directly applicable. A poor person feels socially closer to a wealthy community member than to equally poor members of other communities. The wealthy community member may even be a role model or a benefactor of his children.

So-called ‘Marxist analysis’, supposedly ‘materialistic’, misses this key point. Marx himself was a member of the Jewish community, while his family life was grounded in Victorian London society. Evidently, like most economists, he missed the significance of the community life around him. Knowledge of life in other societies, especially non-western ones, makes that significance clear.

Western societies today claim to have progressed beyond ‘pre-modern’ community lives, to a more ‘advanced’ way of life. For the sake of argument, let us assume that this is a fair claim. But we should ask: Have these ‘advanced’ societies succeeded in better facing the serious issues of human life? If we judge not by PR but by symptoms – alcoholism, drugs, crime, wars, broken families, debt and worse – these societies have failed.

Abandoning or looking down upon community life is not a solution to the problems faced today. Community life, based on sharing, has worked since the time of the early man – whereas the modern clap-trap is at most a couple of centuries old, and has an extremely patchy record. All the acclaimed modern achievements are due to science and technology. Break-up of community life has not achieved anything for anybody.

Why is a look at community life relevant when we speak of finance? The reason is that economic and financial decisions are shaped by societal values, which are in turn shaped by the real-time dynamic within and amongst its constituent communities. Consider this real-life and blatant example of exploitation of a weaker community by a stronger one:

France purchased uranium ore from some African countries at throw-away prices. Naturally, such low prices forced cruel exploitation of labour, including child labour, while the wealth went to France. The wealth allowed NGOs and documentary makers to descend upon the poor African countries to report on the exploitation of labour, unsafe and inhuman work conditions, bad hygiene, lack of education … and so on. Puppet regimes in power drove the exploitation of poor workers – and also permitted the shedding of crocodile tears over the inhuman conditions generated thereby.

In effect, here one community says this to another: We shall rob you, enjoy the wealth, and also prove through our clever PR that you are lesser human beings; that you can never be a match for us, the ‘enlightened, advanced’ types.

Admittedly, community identity is a double-edged sword. It provides security and guidance to most members, but proves to be a hindrance to the few whose hearts and minds have the potential to grow beyond the inherited identity. This is an age-old dilemma, which explains why a youngster in historical India would leave everything behind to search for truth.

Community culture also results in rigid customs, such as, for example, poor members incurring huge marriage expenses to maintain their status. Beneath the surface, however, gradual reform and wise adaptation also happens.

The bottom line is that communities live by their own sets of beliefs, values, customs, priorities … et cetera. Globally, people are becoming aware of their identities – and shedding any notion that a self-proclaimed ‘superior’ group of people will teach them how to live. That self-assertive attitude, growing world-wide, is a statement of the unique identity and dignity of a community. Acceptance and tolerance – even if accompanied by a scowl and grudge – is the only common sense option, which is at work in India at all times.

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The above background helps us outline how games of global finance would be conceived and executed by the so-called ‘big players’.

The main weapon of global finance is deception. If your true intention is to exploit and dominate another country, say X, you need to go to great lengths to show to X, to the world – and to anyone else who matters – that the scheme is really about the well-being and progress of the people of X.

In such a global environment, no country can afford to be naive. Any ‘feel good’ talk of human values, progress, women’s rights … et cetera … will be exploited as weakness – even as the exploiters grandstand in the same way to fool their customers and other constituencies.

Financial scamsters love naive customers, who can be puffed up even while being talked into committing financial self-harm. The legendary Indian village money-lender no doubt used sweet talk to make a poor guy borrow more than he could repay, so that his assets could later be grabbed.

In the 1990s, the Russian economy and society were totally ruined by financial scamsters from the west. About a decade ago, Greece was the victim of an ultra-clever financial scheme engineered by Goldman Sachs. In both cases, a few men on the inside made huge amounts of money, while ordinary citizens had to pick up the tab.

Is there a solution? Yes, one which is simple but difficult.

Honest SWOT self-analysis. The middle way. SWOT analysis of all allies, friends, adversaries – and also the global financial predators. No mistaking smooth-talking, polished crooks for ultra-smart financial magicians. A society can succeed only by forging unity out of its diversity. Adversaries are at all times looking for fault lines, ready with knives to mercilessly wedge open any exposed fault lines.

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A very brief look at the current global stress factors:

Global commerce demands access to resources and trade choke points. The amounts at stake run into trillions of US dollars. But today even the status of the US dollar is at stake. The primary power struggle is between the US and China. The US is no doubt assessing coldly how India’s strengths and weaknesses can be exploited towards US goals. Talk of shared democratic values, strategic partnership … et cetera … is only PR. The underlying attitude is always ‘use and throw’, the standard US playbook. Do the people of India understand that?

Between the US and China, things seem to be slipping out from the hands of the former. Therefore there is a higher likelihood of the US becoming impatient and desperate – and thereby making errors. The Chinese are hard-working and patient; they just have to be wise and avoid making any major errors. Others need to make a clear-sighted assessment of the global situation. The ‘alpha-male’ gun-slinging westerner does not always win, except in Hollywood movies.

Aging and emotionally sclerotic so-called ‘leaders’, from an ultra-wealthy class, go quickly out of touch with ordinary citizens’ lives and concerns. Such ‘leaders’ make a mess of whatever issues they touch, and are usually tools in the hands of cunning financiers who hold the buttons to operate their tools. With such ‘leaders’, community values and lives suffer badly. This is likely what ‘big finance’ aims at, since weaker communities are easier to exploit.

Acknowledgement: Co-editor R. Srinivasan’s insights have again proved valuable in giving this post its final shape.