Geopolitical Myths by Adnan Khan

Year 2007 was an unprecedented time in history; the wealth generated in the year reached a record $54 trillion, the most generated in any year in history. After World War 2 the world economy was a mere $1 trillion. The adoption of Capitalism in Europe set in motion the industrial revolution which has led to unqualified prosperity and progress, unmatched in history.

Advocates of Capitalism since the fall of Communism continue to remind the world how prosperous the world’s population is, even considering Capitalism’s progress itself. Some capitalists have even been ‘civilisationally’ racist - if such a term existed - due to considering themselves superior to every other civilisation. The Italian Prime Minister, Silvio Berlusconi boasted after the events of 9/11, ‘we must be aware of the superiority of our civilisation, a system that has guaranteed well being, respect for human rights and - in contrast with Islamic countries - respect for religious and political rights, a system that has its values understanding of diversity and tolerance…The West will conquer peoples, like it conquered Communism, even if it means a confrontation with another civilisation, the Islamic one, stuck where it was 1,400 years ago.’29 The Economist even had the audacity in the middle of the global credit crunch meltdown to say:

‘Bubbles, excess and calamity are part of the package of Western finance. And still it is worth it.

For the West, Capitalism is synonymous to progress itself. The path the West took to achieve such grand claims is called history and everything else is considered primitive and in need of a reformation. However, the place where such a claim begins is essentially where the problem lies.

The measure of progress for Capitalists is the amount of wealth generated by the world economy – Gross Domestic Product (GDP). The invention of technology and scientific discoveries are tools to make production and industry more efficient and give the economy the ability to pump more out of less. However, what has driven science and technology? It is one thing to claim one’s civilisation is superior. However, looking at the causes highlights how such superiority was achieved. Britain is considered the world’s first nation to industrialise and this was driven by the desire to colonise the world. Britain’s advantage on the oceans led to the development of new working patterns and institutional development. The accumulation of the colonised people’s raw materials led to a huge increase in Britain’s wealth.

The development of technology and most scientific breakthroughs have to a large extent been driven by wars and especially both the world wars. It was the US civil war that led to the development of submarines. The need to win World War 1 drove the development of railways.

Although railways existed well before the war huge advances were made in order to transport troops during the war. Through Operation Paperclip, which was the kidnapping of Nazi scientists and technology the United States embarked upon an ambitious program in rocketry. The developments in rocketry led to the space race, the development of ballistic missiles, satellites and primitive computers. Such innovations are what allowed the development of a number of consumer items which have become common household items. The combustion engine used in both cars and aeroplanes was a result of the mobility needed in World War 1. Televisions, the modern radio etc., were developed from the need to miniaturize essential information on cockpit screens and communicate with fighter jet pilots. There are only a handful of inventions that took place outside the military and were not needed for war.

Although the capitalist West has the position of being the most technologically advanced in history, the search for resources, colonialism and war has characterised Western technological and scientific prowess.

Capitalism may have driven wealth creation like never before. However, there are a number of developments that it should also be certified with. The world economy maybe generating record wealth with liberal democracies driving this, but half of the world’s population will not have had enough food today as they earn less then $2 a day – 95% of the world lives on less then $10 a day.

World poverty has accelerated under Capitalism. It was Europe that scrambled for resources around the world in the past, whereas today they have been replaced by the US. All that has changed from the 19th century is that the gun has been replaced by the factory, slavery has been replaced by consumerism, armies have been replaced by the media and subsistence farming has been replaced by the financial markets.

Capitalism’s next success has been creating history’s greatest ever wealth fault line. Whilst the majority of the world barely survives on a few dollars, the US has most of the world’s billionaires, in what is mankind’s greatest lopsided world economy. In 2006 the World Institute for Development Economics Research of the UN released the culmination of a global study. A number of its findings are staggering. By gathering research from countries all over the world the study concluded that the richest 1% of the world owns 40% of the planet's wealth and that only 10% of the world’s population owned 85% of the world’s assets.32 Richard Robbins in his award winning book ‘Global Problems and the Culture of Capitalism’ confirmed this when he said: ‘The emergence of Capitalism represents a culture that is in many ways is the most successful that has ever been deployed in terms of accommodating large numbers of individuals in relative and absolute comfort and luxury. It has not been as successful, however, in integrating all in equal measure, and its failure here remains one of its major problems.’ Capitalism has also created the most indebted world in history, where individuals and nations have more debt than income. The fact that the world generated $54 trillion is irrelevant when most of this has been funded by debt. The Western world has become obsessed by consuming more then it really needs and most of this is funded by debt as most of the wealth generated is in the hands of a few. The USA, the world’s superpower, the world’s largest economy and for many a symbol of Capitalism’s success is drowning in a misery of debt, which the credit crunch crisis brought to the forefront. The US generated nearly $14 trillion in 2007, however the national debt – this is money the central and federal governments owe to the US public and the world through the bonds they have sold - stands at $9.7 trillion. US citizens have a huge appetite for imports and real estate. As a result consumer debt stands at $11.4 trillion. The debts of US companies amounts to $18.4 trillion.

This makes the US indebted to the tune of just under $40 trillion – nearly 75% of what the world produces. 37 million Americans live below the poverty line. Capitalism’s continued endeavour of perpetual economic growth has drowned the world in money it does not have which makes the prosperity liberals insistence on reminding us, rather irrelevant. Capitalism was named after its most prominent aspect (capital). It makes material wealth the ultimate aim in life, without this life is not worth living. This led the aristocracy to influence national governments to ensure they maintain their wealth and undertake actions for the aristocracy to make more wealth. The aristocracy came to be replaced by companies and big business heads such as John Rockefeller in Oil, Henry Ford in Automobiles, Jay Gould in railroads, J. Pierpont Morgan in Banking and Andrew Carnegie in steel. Governments in the West organised the colonisation of the world whilst the capitalist – big businesses - accumulated even more wealth. It was initially the effects of World War 1 that forced the West to address the massive wealth disparities since it was impossible for Western economies to pull themselves out of a downturn when the majority of their population had very little wealth to spend. It was this problem which led to the creation of consumerism where spending, enjoying new inventions and new fads would become life’s aim and at the same time conveniently helped stimulate the economy.

Capitalism will always generate wealth as Capitalism is all about perpetual economic growth.

However, this is all Capitalism is about. It pays little attention to the distribution of its vast wealth.

It cares little if anything if whole continents live in poverty due to their colonisation or as they usually term it - free trade and globalisation. Capitalism far from being superior has actually been a disaster.