This is the complete transcript of the talk (and questions-answers) by Noam
Chomsky given in Albuquerque's Kiva Auditorium on Saturday, 26 February,
2000. Catalina Reyes of Gata `Burque Journalism Audio Production (P.O. Box
25822, Albuquerque, NM 87125-0822; 505/243-8625; fax 505/243-8630, e-mail
gatabrq@hotmail.com) was the engineer. We are grateful for her permission to
represent the recording here in text form. Noam Chomsky, a world-class
linguist and progressive intellectual, has been professor of Linguistics and
Philosophy at MIT since 1955. His best-known work is Manufacturing Consent,
a critique of mass media and global information monopolies. A member of the
Interhemispheric Resource Center's Board of Directors, he marks the IRC's
20th anniversary by speaking about economic and political globalization. He
was introduced by Deb Preusch, Co-founder and Executive Director of the IRC.
  ------------------------------------------------------------------------


                        Taking Control of Our Lives:

             Freedom, Sovereignty, and Other Endangered Species

                                Noam Chomsky

                      Speaking in Santa Fe, New Mexico
                             February 26, 2000




     When we started planning this event last summer, the first
     question we had to ask ourselves was, "How many people in New
     Mexico would be interested in hearing Noam Chomsky speak?" We were
     sure among our circle of friends that he was very well known. But
     obviously, our circle of friends is much larger than even we could
     imagine. We're so pleased each and every one of you are here to
     celebrate our 20th anniversary with us.

     It's my great honor to welcome a member of the IRC's Board of
     Directors. He is a world-class scholar recognized for
     contributions to linguistics and foreign policy. He is a long-time
     social activist involved in key issues of our era from the Vietnam
     War to the War in Kosovo. He is one of the most important
     intellectuals of our time. He is a global citizen, a friend to
     those struggling for justice from the Middle East to New Mexico.
     It is my great pleasure to introduce Noam Chomsky.

     Thank you. It's no exaggeration to say that the effort to take
     control of our lives is a dominant theme of world history with a
     crescendo in the last several centuries of dramatic changes in
     human relations and world order. The topic is far too large to try
     to discuss here. I'll have to cut it down sharply. First, I'll
     keep only to current manifestations and some of the roots with an
     eye towards what might lie ahead. Also, I'll keep to the global
     arena, which is by no means, the only domain in which these issues
     arise.

     In the past year, the global issues have been framed largely in
     terms of the notion of sovereignty; that is the right of political
     entities to follow their own course, which may be benign or may be
     ugly, and to do so, free from external interference. In the real
     world, that means interference by highly concentrated power with
     its major center in the United States.

     These concentrated global powers are called by various terms,
     depending on which aspect of sovereignty and freedom one has in
     mind. Sometimes it's called the Washington Consensus or the Wall
     Street-Treasury Complex or NATO or the International Economic
     Bureaucracy (World Trade Organization, World Bank, and IMF), or G7
     (the rich western industrial countries), or G3, or, more
     accurately, usually, G1.

     From a more fundamental perspective, though it takes longer to
     say, we could describe it as, An array of mega-corporations, often
     linked to one another by strategic alliances, administering a
     global economy which is in fact a kind of a corporate mercantilism
     tending toward oligopoly in most sectors, heavily reliant on state
     power to socialize risk and cost and to subdue recalcitrant
     elements.

     In the past year, the issues of sovereignty have risen in two
     domains. One has to do with the sovereign rights to be secure from
     military intervention. Here the questions arise in a world order
     based on sovereign states. Second, the matter of sovereign rights
     in the face of socio-economic intervention. Here the questions
     arise in a world that's dominated by multinational corporations,
     especially financial institutions in recent years, and the whole
     framework that has been constructed to serve their interests.
     Those are, for example, the issues that arose dramatically in
     Seattle last November.

     The first category, military intervention, was a very lively topic
     last year. Two cases gained particular significance, attention,
     prominence: East Timor and Kosovo in the opposite order which is
     an interesting fact because that reverses both the timing and the
     significance. There is a lot to say about these matters and a lot
     of new information about them I would like to discuss but
     reluctantly I'm going to drop that topic. If you'd like to bring
     it up later in questions, fine, I'll be happy to talk about it.
     It's a big, important, and instructive topic, but time's short.

     So let me turn to the second topic and that's the one I'll keep to
     (still cutting things down) -- the questions of sovereignty,
     freedom, human rights; the kind of questions that arise in the
     socio-economic arena. That's the subpart of this whole topic I
     want to keep to.

     First a general comment: sovereignty is no value in itself. It's
     only of value insofar as it relates to freedom and rights, either
     enhancing them or diminishing them. I want to take for granted
     something that may seem obvious, but is actually controversial --
     namely that, in speaking of freedom and rights, we have in mind
     human beings; that is, persons of flesh and blood. Not abstract
     political and legal constructions like corporations or states or
     capital. If these entities have any rights at all, which is
     questionable, they should be derivative from the rights of people.
     That's the core of classical liberal doctrine. It's also the
     guiding principal for popular struggles for centuries. But it's
     very strongly opposed. It's opposed by official doctrine. It's
     opposed by sectors of wealth and privilege. That's true both in
     the political and the socio-economic realms. I'll ask you to keep
     that question on the shelf for a minute, and say a couple of words
     of background.

     In the political realm, the familiar slogan is "popular
     sovereignty in a government of, by, and for the people." But the
     operative framework is quite different. The operative framework is
     that the people are considered a dangerous enemy. They have to be
     controlled for their own good.

     These issues go back centuries, back to the earliest modern
     democratic revolutions in 17th century England and in the North
     American colonies a century later. In both cases, the Democrats
     were defeated -- not completely and certainly not permanently by
     any means.

     In 17th century England, much of the population did not want to be
     ruled by either king or parliament. Recall that those were the two
     contestants in the standard version of the civil war. But like
     most civil wars a good part of the population wanted neither of
     them. As their pamphlets put it, they wanted to be governed "by
     countrymen like ourselves that know our wants," not by "knights
     and gentlemen [that] make us laws, that are chosen for fear and do
     but oppress us, and do not know the people's sores."

     These same ideas animated the rebellious farmers of the colonies a
     century later. But the constitutional system was designed quite
     differently. It was designed to block that heresy. The goal was,
     "to protect the minority of the opulent from the majority" and to
     ensure that "the country is governed by those who own it." Those
     are the words of the leading framer, James Madison, and the
     president of the Continental Congress and first Chief Justice of
     the Supreme Court, John Jay. Their conception prevailed but the
     conflicts continued. They continually take new forms. They are
     alive right now. However, elite doctrine remains essentially
     unchanged.

     Fast forwarding to the 20th century -- I'll keep here to the sort
     of liberal progressive side of the spectrum; it's harsher on the
     other side. The population are regarded as "ignorant and
     meddlesome outsiders" whose role is to be "spectators," not
     "participants," apart from periodic opportunities to choose among
     the representatives of private power. These are what are called
     elections. In elections, public opinion is considered essentially
     irrelevant if it conflicts with the demands of the minority of the
     opulent who own the country. We're seeing that right now in fact.

     One striking example (there are many) has to do with the
     international economic order -- what are called trade agreements.
     The general population, as polls make very clear, is strongly
     opposed to most of what's going on but the issues don't arise.
     It's not an issue in the elections because the centers of power,
     the minority of the opulent, are unified in support of instituting
     a particular kind of socio-economic order. So therefore, the issue
     doesn't arise. The things that are discussed are things that they
     don't much care about. Like questions of character or questions of
     reform which they know that aren't going to be implemented. So
     that's what discussed. Not what people care about. And that's
     pretty typical and it makes sense on the assumption that the role
     of the public as the ignorant and meddlesome outsiders is just to
     be spectators.

     If the general public, as it often does, seeks to organize and
     enter the political arena to participate, to press its own
     concerns, that's a problem. It's not democracy. It's what's called
     a "crisis of democracy" that has to be overcome. Again I'm
     quoting. These are all quotes from the liberal, progressive side
     of the modern spectrum, but the principals are quite widely held.

     The past 25 years have been one of those regular periods when a
     major campaign has been conducted to try to overcome the perceived
     "crisis of democracy" and to reduce the public to their proper
     role of apathetic and passive and obedient spectators. That's the
     political realm.

     In the socio-economic realm, there is something similar. There has
     been a parallel of closely-related conflicts for a long, long
     time. In the early days of the industrial revolution in the United
     States -- in New England, 150 years ago -- there was a very
     lively, independent labor press run by young women from the farms,
     or artisans in the towns. They condemned the "degradation and
     subordination" of the newly-emerging industrial system which
     compelled people to rent themselves to survive.


      ----------------------------------------------------------------
      |                                                              |
      |  These issues  go  back  centuries,  back  to  the earliest  |
      |  modern democratic revolutions in  17th century England and  |
      |  in the North  American colonies  a century later.  In both  |
      |  cases, the Democrats  were defeated --  not completely and  |
      |  certainly not permanently by any means.                     |
      |      In 17th century England, much  of  the  population did  |
      |  not want to be ruled by either king or  parliament....  As  |
      |  their pamphlets  put it,  they wanted  to be  governed "by  |
      |  countrymen like  ourselves that  know  our wants,"  not by  |
      |  "knights and  gentlemen  [that]  make  us  laws,  that are  |
      |  chosen for fear and do but oppress us, and do not know the  |
      |  people's sores."                                            |
      |      These same  ideas animated  the rebellious  farmers of  |
      |  the  colonies  a  century  later.  But  the constitutional  |
      |  system was designed quite  differently. It was designed to  |
      |  block that heresy. The  goal was, "to protect the minority  |
      |  of the opulent from  the majority" and to ensure that "the  |
      |  country is governed  by those  who own it."  Those are the  |
      |  words  of  the  leading  framer,  James  Madison,  and the  |
      |  president of  the  Continental  Congress  and  first Chief  |
      |  Justice of the  Supreme Court, John  Jay. Their conception  |
      |  prevailed but  the  conflicts continued.  They continually  |
      |  take new forms.  They are alive  right now. However, elite  |
      |  doctrine remains essentially unchanged.                     |
      |      Fast forwarding to the  20th century -- I'll keep here  |
      |  to the sort of liberal progressive side  of the  spectrum;  |
      |  it's  harsher  on  the  other  side.  The  population  are  |
      |  regarded as "ignorant and meddlesome outsiders" whose role  |
      |  is  to  be  "spectators,"  not  "participants," apart from  |
      |  periodic opportunities to choose among the representatives  |
      |  of private power. These  are what are called elections. In  |
      |  elections,  public   opinion  is   considered  essentially  |
      |  irrelevant   if  it  conflicts  with  the  demands  of the  |
      |  minority of the opulent  who own the country. We're seeing  |
      |  that right now in fact.                                     |
      |                                                              |
      ----------------------------------------------------------------


     It's worth remembering (and hard to remember perhaps), that wage
     labor was considered not very different from chattel slavery at
     that time. Not only by the workers in the mills but right through
     much of the mainstream. For example Abraham Lincoln, or the
     Republican Party, even editorials in the New York Times (that they
     might like to forget).

     Working people opposed what they called "monarchical principles"
     in the industrial system and they demanded that those who work in
     the mills should own them -- the spirit of Republicanism. They
     denounced what they called the "new spirit of the age: Gain
     wealth, forgetting all but self." A demeaning and degrading vision
     of human life that has to be driven into people's minds by immense
     effort, which in fact has been going on over centuries.

     In the 20th century, the literature of the public relations
     industry provides a very rich and instructive store of instruction
     on how to instill the "new spirit of the age" by creating
     artificial wants or by "regimenting the public mind just as an
     army regiments the bodies of its soldiers," and inducing a
     "philosophy of futility" and lack of purpose in life by
     concentrating human attention on "the more superficial things that
     comprise much of fashionable consumption." If that can be done
     then people will accept the meaningless and subordinate lives that
     are appropriate for them and they'll forget subversive ideas about
     taking control of their own lives.

     This is major social engineering project. It's been going on for
     centuries. But it became intense and enormous in the last century.
     There are a lot of ways of doing it. Some are the kind that I just
     indicated which are too familiar to illustrate. Others are to
     undermine security. Here too there are a number of ways.

     One way of undermining security is the threat of job transfer. One
     of the major consequences and, assuming rationality, one has to
     assume one of the major purposes of the mislabeled "trade
     agreements" (stress "mislabeled," because they're not about free
     trade; they have strong anti-market elements of a variety of
     kinds, and they are certainly not agreements, at least if people
     matter, since people are mostly opposed), one consequence of these
     arrangements is to facilitate the threat -- it doesn't have to be
     reality, but sometimes it is, but just the threat -- of job
     transfer, which is a good way of inducing discipline by
     undermining security.

     Another device, pardon the technical jargon, is to promote what is
     called "labor market flexibility." Let me quote the World Bank,
     who put the matter pretty plainly. They said,

          "Increasing labor market flexibility -- despite the bad
          name it has acquired as a euphemism for pushing wages
          down and workers out" (which is exactly what it is) "is
          essential in all the regions of the world. . . . The
          most important reforms involve lifting constraints on
          labor mobility and wage flexibility, as well as breaking
          the ties between social services and labor contracts."

     That means cutting the benefits and the rights that have been won
     in generations of bitter struggle. When they talk about lifting
     constraints on wage flexibility they mean flexibility down, not
     flexibility up. The talk about labor mobility doesn't mean the
     right of people to move anywhere they want (as has been required
     by free market theory ever since Adam Smith), but rather the right
     to fire employees at will. And under the current investor-based
     version of globalization, capital and corporations must be free to
     move but not people because their rights are secondary,
     incidental.

     These "essential reforms," as the World Bank calls them, are
     imposed on much of the world as conditionalities for ratification
     by the World Bank and the IMF. They're introduced into the rich,
     industrial countries by other means and they have been effective.
     Alan Greenspan testified before Congress that, what he called
     "greater worker insecurity" was an important factor in what's
     called the "fairy-tale economy." It keeps inflation down because
     workers are afraid to ask for wages and benefits. They are
     insecure. That shows up pretty clearly in the statistical record.

     In the past 25 years, this period of roll-back, of the crisis of
     democracy, wages have stagnated or declined for the majority of
     the workforce, for non-supervisory workers, and working hours have
     increased very sharply -- they have become the highest in the
     industrial world. This is noticed, of course, by the business
     press which describes it as, "a welcome development of
     transcendent importance" with working people compelled to abandon
     their "luxurious lifestyles" while corporate profits are "dazzling
     and stupendous" (Wall Street Journal, Business Week, and Fortune).

     In the dependencies less delicate measures are available. One of
     them is the so-called "debt crisis" which is largely traceable to
     World Bank/IMF policy programs of the 1970s, and to the fact that
     the third world rich are, for the most part, exempt from social
     obligations. That's dramatically true in Latin America, and one of
     its major problems.

     The "debt crisis" is something but we should be careful to notice
     what it is. It's not a simple economic fact by any means. To a
     large extent, it's an ideological construct. What's called the
     "debt" could be largely overcome in a number of very elementary
     ways.

     One way to overcome it would be by resorting to the capitalist
     principal that borrowers have to pay and lenders take the risk. So
     for example, if you lend me money and I send it to my bank in
     Zurich and buy a Mercedes and you come back and ask me for the
     money, I'm not supposed to be allowed to say, "I'm sorry, I don't
     have it. Take it from my neighbor." And if you don't want to take
     the risk of the loan, you're not supposed to be able to say "My
     neighbor will have to pay for it."

     However that is the way it works in the international arena.
     That's what the "debt crisis" is. The debt is not to be paid by
     the people who borrowed it: military dictators, their cronies, the
     rich and privileged in highly authoritarian societies that we've
     supported. They don't have to pay.

     So take Indonesia, where the current debt is about 140 percent of
     Gross Domestic Product (GDP). The money was taken by the military
     dictatorship and their friends and probably held by a couple
     hundred people at the outside. But it has to be paid by the
     population under harsh austerity measures. And the lenders are
     mostly protected from risk. They get what amounts to free risk
     insurance by various devices of socializing costs, transferring
     them to Northern taxpayers. That's one of the functions of the
     IMF.

     Similarly in Latin America. The huge Latin American debt is not
     all that much different from capital flight from Latin America.
     Which suggests a simple way to deal with the debt, or a large part
     of it, if anyone were to believe in the capitalist principle,
     which is, of course, unacceptable. It puts the burden on the wrong
     people -- on the minority of the opulent.


      ----------------------------------------------------------------
      |                                                              |
      |  All of this is called "trade rights." It has nothing to do  |
      |  with  trade.  It  has  to  do  with  monopolistic  pricing  |
      |  practices  enforced  by  protectionist  measures  that are  |
      |  introduced into what are called free trade agreements. The  |
      |  measures are  designed  to  ensure corporate  rights. They  |
      |  also have  the effect  of reducing  growth and innovation,  |
      |  naturally.  And  they are  only   part  of  the   array of  |
      |  regulations, introduced  into these  agreements, which are  |
      |  an attempt to prevent development and growth. They are not  |
      |  economically  motivated.  What  is  at  stake  is investor  |
      |  rights and not  trade. And trade,  of course, has no value  |
      |  in itself. It  is of value if  it increases human welfare,  |
      |  otherwise not.                                              |
      |                                                              |
      ----------------------------------------------------------------


     There are also other ways of eliminating the debt, and they are
     recognized. They also reveal the extent to which it is an
     ideological construct. One other method, apart from the capitalist
     principle, is a principle of international law that was introduced
     by the United States when it, what's called in the history books,
     "liberated" Cuba, meaning conquered Cuba to prevent it from
     liberating itself from Spain in 1898.

     Having done that the United States cancelled Cuba's debt to Spain
     on the perfectly reasonable ground that the debt was imposed
     without the consent of the population. It was imposed under
     coercive conditions. That principle then entered international
     law, largely at U.S. initiative. It's called the principle of
     odious debt. An odious debt is invalid. It doesn't have to be
     paid.

     It's been recognized for example, by the U.S. Executive Director
     of the IMF, that if that principle were available to the victims,
     not just to the rich, the third world debt would mostly dissolve,
     because it is invalid. It's odious debt.

     But that is not to be. The odious debt is a very powerful weapon
     of control and it can't be abandoned. For about half of the
     world's population right now, thanks to this method, national
     economic policy is effectively run by bureaucrats in Washington.
     Another half of the population of the world -- not the same half,
     but overlapping -- is subject to unilateral sanctions by the
     United States which is a form of economic coercion that again,
     undermines sovereignty severely and has been condemned repeatedly,
     just recently again by the United Nations, as unacceptable. But it
     makes no difference.

     Within the rich countries, there are other means of achieving
     similar results. I'll come back to that. But before doing so, just
     a word about what we should never allow ourselves to forget. And
     that is the devices that are used in the dependencies can be very
     brutal.

     There was a Jesuit-organized conference in San Salvador a couple
     of years ago which considered the state terrorist project of the
     1980s and it's continuation since, by the socio-economic policies
     imposed by the victors. The conference took special note of what
     it called the residual "culture of terror" which lasts after the
     actual terror declines and has the effect of "domesticating the
     expectations of the majority" who abandon any thought of
     "alternatives to the demands of the powerful." They have learned
     the lesson that There Is No Alternative -- TINA, as it's called;
     Maggie Thatcher's cruel phrase. The idea is that there is no
     alternative. That's now the familiar slogan of the corporate
     version of globalization.

     In the dependencies, the great achievement of the terrorist
     operations has been to destroy the hopes that had been raised in
     Latin America and Central America in the 1970s, inspired by
     popular organizing throughout the region and the "preferential
     option for the poor" of the church which was severely punished for
     that deviation from good behavior. Again, an awful lot to say
     about that and I hate to drop it, but time is short.

     Sometimes the lessons about what happened are drawn rather
     accurately in measured tones. Right now there is a torrent of
     self-adulation about our success in inspiring a wave of democracy
     in our Latin American dependencies. The matter is put a little
     differently and more accurately in an important scholarly review
     -- the major scholarly review -- by the leading specialist on the
     topic, Thomas Carrothers, who, as he says, writes with an
     "insider's perspective" since he served in the State Department
     "democracy enhancement programs" of the Reagan Administration (as
     they were called).

     He believes that Washington had good intentions but he recognizes
     that in practice, the Reagan Administration sought to maintain
     "the basic order of . . . quite undemocratic societies" and to
     avoid "populist-based change," and like its predecessors, adopted
     "pro-democracy policies as a means of relieving pressure for more
     radical change, but inevitably sought only limited, top-down forms
     of democratic change that did not risk upsetting the traditional
     structures of power with which the United States had long been
     allied." Almost accurate. It would be more accurate to say "the
     traditional structures of power with which the traditional
     structures of power within the United States had long been
     allied." That's accurate.

     Carrothers himself is dissatisfied with the outcome but describes
     what he calls the "liberal critique" as fundamentally flawed. This
     critique leaves the old debates "unresolved," because of "its
     perennial weak spot." The perennial weak spot is that it offers no
     alternative to the policy of restoring the traditional structures
     of power. In this case by murderous terror that left a couple
     hundred thousand corpses in the 1980s and millions of refugees,
     maimed and orphaned in the devastated societies. So again, TINA --
     There Is No Alternative.

     The same dilemma was recognized at the other end, the opposite end
     of the political spectrum, by President Carter's main Latin
     American specialist, Robert Pastor, who is quite far to the
     dove-ish, progressive end of the admissible spectrum. He explains
     in an interesting book why the Carter Administration had to
     support the murderous and corrupt Samoza regime right to the
     bitter end. Then, when even the traditional structures of power
     turned against the dictator, the U.S. (Carter Administration) had
     to try to maintain the National Guard that it had established and
     trained and that was then attacking the population "with the
     brutality a nation usually reserves for its enemy," as he puts it.

     This was all done with benign intent under the TINA principal --
     no alternative. Here's the reason. "The United States did not want
     to control Nicaragua or the other nations of the region, but it
     also did not want developments to get out of control. It wanted
     Nicaraguans to act independently except" (his emphasis) "when
     doing so would affect U.S. interests adversely." So in other
     words, Latin Americans should be free, free to act in accord with
     our wishes. We want them to be able to choose their own course
     freely, unless they make choices that we don't want. In which
     case, we have to restore the traditional structures of power -- by
     violence, if necessary. That's the more liberal and progressive
     side of spectrum. (If you can tell the difference.)

     There are voices that are outside the spectrum -- I don't want to
     deny that. For example, there is the idea that "people should have
     the right to share in the decisions, which often profoundly modify
     their way of life," not have their hopes "cruelly dashed" by
     violence, by foreign power in a global order in which "political
     and financial power is concentrated" while financial markets
     "fluctuate erratically" with devastating consequences for the
     poor, "elections can be manipulated," and "the negative aspects on
     others are considered completely irrelevant" by the powerful.
     Those are quotes from the radical extremist in the Vatican whose
     annual New Year's message could scarcely be mentioned in the
     national press. It is certainly an alternative that is not on the
     agenda.

     Why is there such broad agreement that Latin Americans (in fact
     the world) cannot be allowed to exercise sovereignty? That is, to
     take control of their lives? It is the global analog to the fear
     of democracy within. Actually, that question has been frequently
     addressed in very instructive ways, primarily in the internal
     record which we have (quite a free country -- we have a rich
     record of declassified documents, and they are very interesting).
     The theme that runs through all of them is strikingly illustrated
     in one of the most influential cases, a hemispheric conference
     that the United States called in February 1945 in order to impose
     what was called the Economic Charter for the Americas that was one
     of the cornerstones of the postwar world still firmly in place.
     The charter called for an end to "economic nationalism (meaning
     sovereignty) in all its forms." Latin Americans, it said, would
     have to avoid what was called "excessive" industrial development
     that would compete with U.S. interests, though they could have
     "complimentary development." So Brazil could produce low-cost
     steel that the U.S. corporations were not interested in.
     Crucially, it was necessary "to protect our resources," as George
     Kennan put it, even if that required "police states," he
     continued.

     But Washington faced a problem in imposing the charter. That was
     clearly explained internally in the State Department at the time
     in this way: Latin Americans were making the wrong choices. They
     were calling for "policies designed to bring about a broader
     distribution of wealth and to raise the standard of living of the
     masses," and they were "convinced that the first beneficiaries of
     a country's resources should be the people of that country," not
     U.S. investors. That is unacceptable, so sovereignty cannot be
     allowed. They can have freedom, but freedom to make the right
     choices.

     That message has been regularly and forcefully reaffirmed in case
     after case up to the present. I'll just mention a couple of
     examples. Guatemala had a brief interlude of democracy. It was
     ended, as you know, by a U.S. military coup. For the public, this
     was presented as defense against the Russians. A little bit
     exotic, but that was the story. Internally, the thrust was
     different and the threat was seen more realistically. Here is the
     way it was seen:

          "The social and economic programs of the elected
          government met the aspirations" of labor and the
          peasantry, and "inspired the loyalty and conformed to
          the self-interest of most politically-conscious
          Guatemalans." Worse still the government of Guatemala
          had "become an increasing threat to the stability of
          Honduras and El Salvador. Its agrarian reform is a
          powerful propaganda weapon; its broad social program of
          aiding the workers and peasants in a victorious struggle
          against the upper classes and large foreign enterprises
          has a strong appeal to the populations of Central
          American neighbors where similar conditions prevail."

     So therefore, a military solution was necessary. It has been going
     on for 40 years and it's left the same culture of terror as in
     Central American neighbors.


      ----------------------------------------------------------------
      |                                                              |
      |  In general the  primary principle and  related treaties of  |
      |  the  World  Trade  Organization  is  that  sovereignty and  |
      |  democratic rights have to be subordinated to the rights of  |
      |  investors. In practice that  means the rights of the huge,  |
      |  immortal persons;  the private  tyrannies to  which people  |
      |  must be subordinated.                                       |
      |                                                              |
      ----------------------------------------------------------------


     The same was true in Cuba, another currently live case. When the
     United States made the decision, secretly, to overthrow the
     government of Cuba in 1960, the reasoning was very similar. It was
     explained by historian Arthur Schlesinger, who summarized to
     President Kennedy the study of a Latin American mission in a
     secret report to the incoming president. The Cuban threat
     (according to the mission) was "the spread of the Castro idea of
     taking matters into one's own hands." That's a disease that might
     infect the rest of Latin America, Schlesinger explained, where
     "the poor and underprivileged," which means almost everyone,
     "stimulated by the example of the Cuban Revolution, are now
     demanding opportunities for a decent living." So something has to
     be done and you know what was done. What about "the Soviet
     connection"? That was actually mentioned in the report in this
     way: "Meanwhile, the Soviet Union hovers in the wings, flourishing
     large development loans and presenting itself as the model for
     achieving modernization in a single generation."

     Well, that's the threat -- the threat of taking their lives in
     their own hands. And it had to be destroyed by terrorism and
     economic strangulation, which is still continuing. All of that is
     totally independent of the cold war, as surely is obvious by now,
     even without the secret record. The same concerns in the post-cold
     war period led to the quick undermining of Haiti's brief
     experiment in democracy by Presidents Bush and Clinton, continuing
     an earlier record.

     The same concerns lie in the background of the trade agreements --
     NAFTA, for example. At the time of NAFTA (you will recall), the
     propaganda was that it was going to be a wonderful boom to working
     people in all three countries -- Canada, United States, and
     Mexico. Well that was quietly abandoned shortly after when the
     facts were in. What was obvious all along was in fact, finally,
     publicly conceded -- publicly. The goal was to "lock Mexico into
     the reforms" of the 1980s -- reforms which has sharply reduced
     wages and enriched a small sector and foreign investors.

     The background concerns were articulated at a Latin American
     strategy development conference in Washington, a workshop in 1990.
     It warned that "a `democracy opening' in Mexico could bring into
     office a government more interested in challenging the United
     States on economic and nationalist grounds." Notice that's the
     same threat as in 1945 and since. Overcome, in this case, by
     locking Mexico into treaty obligations. These same reasons
     consistently lie behind a half a century of torture and terror,
     not only in the Western Hemisphere. They are also at the core of
     the investor rights agreements that are being imposed under the
     specific form of globalization that's designed by the
     state-corporate power nexus.

     Now let's go back to what I asked you to put on the shelf, the
     point of departure: the contested issue of freedom and rights,
     hence sovereignty insofar as it's to be valued. Do they inhere in
     persons of flesh and blood? Or only in small sectors of wealth and
     privilege? Or even in abstract constructions, like corporations or
     capital or states? In the past century, the idea that such
     entities have special rights, over and above persons, has been
     very strongly advocated. The most prominent examples are
     Bolshevism, fascism, and private corporatism, which is a form of
     privatized tyranny. Two of these systems have collapsed. The third
     is alive and flourishing under the banner, TINA -- There Is No
     Alternative to the emerging system of state corporate mercantilism
     disguised with various mantras like globalization and free trade.

     A century ago, during the early stages of the corporatization of
     America, discussion about these matters was quite frank.
     Conservatives, a century ago, denounced the procedure describing
     corporatization as a "return to feudalism" and "a form of
     communism." Which is not an entirely inappropriate analogy. There
     were similar intellectual origins and neo-Hegelian ideas about the
     rights of organic entities, along with the belief in the need to
     have a centralized administration of chaotic systems -- like the
     markets, which were totally out of control.

     It's worth bearing in mind, that in today's so-called "free-trade
     economy," a very large component of cross-border transactions
     (which are called trade, misleadingly), probably about 70 percent
     of them, are actually within centrally managed institutions,
     within corporations and corporate alliances, if we include
     outsourcing and other devices of administration. This is quite
     apart from all other kinds of radical market distortions.

     The conservative critique -- notice that I am using the term
     "conservative" in a traditional sense; such conservatives scarcely
     exist any more -- the conservative critique was echoed at the
     liberal/progressive end of the spectrum early in the 20th century,
     most notably perhaps by John Dewey, America's leading social
     philosopher, whose work focused largely on democracy. He argued
     that the democratic forms have little substance when "the life of
     the country" -- production, commerce, media -- is ruled by private
     tyrannies in a system that he called "industrial feudalism" in
     which working people are subordinated to managerial control and
     politics becomes "the shadow cast by big business over society."

     Notice that he was articulating ideas that were common coin among
     working people many years earlier, as I mentioned. And the same
     was true of his call for the elimination of the replacement of
     industrial feudalism by self-managed industrial democracy.

     Interestingly, progressive intellectuals, who favored the process
     of corporatization, agreed more or less with this description.
     Woodrow Wilson, for example, wrote that, "most men are servants of
     corporations," which now account for the "greater part of the
     business of the country" in a "very different America from the
     old. . . . no longer a scene of individual enterprise, individual
     opportunity and individual achievement," but a new America in
     which "small groups of men in control of great corporations wield
     a power and control over the wealth and business opportunities of
     the country," becoming "rivals of the government itself," and
     undermining popular sovereignty, exercised through the democratic
     political system.

     Notice this was written in support of the process. He described
     the process as maybe unfortunate, but necessary, agreeing with the
     business world. Particularly after the destructive market failures
     of the proceeding years had convinced the business world and
     progressive intellectuals that markets simply had to be
     administered and that financial transactions had to be regulated.

     Very similar questions are very much alive in the international
     arena today. The talk about reforming financial architecture and
     that sort of thing. A century ago, right about that time,
     corporations were granted the rights of persons by radical
     judicial activism, an extreme violation of classical liberal
     principles.[1] They were also freed from earlier obligations to
     keep to specific activities for which they were chartered.[2]
     Furthermore, in an important move, the courts shifted power
     upwards, from the stockholders in a partnership to the central
     management, which was identified with the immortal corporate
     person.

     Those of you who are familiar with the history of communism will
     recognize that this is very similar to the process that was taking
     place at the time -- very quickly predicted in fact by left
     critics, left Marxist and anarchist critics of Bolshevism; people
     like Rosa Luxembourg, who warned, early on, that the centralizing
     ideology would shift power from working people to the party to the
     central committee and then to the maximal leader, as happened very
     quickly after the conquest of state power in 1917 which at once
     destroyed every residue of socialist forms and principles. The
     propagandists on both sides prefer a different story for
     self-serving reasons. But I think that's the accurate one.


      ----------------------------------------------------------------
      |                                                              |
      |  [I]n  a  lot   of  ways,  the   conflict  between  popular  |
      |  sovereignty and private power was illuminated more sharply  |
      |  a couple  months  after Seattle,  just a few  weeks ago in  |
      |  Montreal, where an ambiguous settlement was reached on the  |
      |  so-called "bio-safety protocol." There  the issue was very  |
      |  clearly drawn. . . .                                        |
      |      Notice what's  at stake  here. The  question that's at  |
      |  stake is  whether people  have the  right to  refuse to be  |
      |  experimental subjects. So, to  personalize it, suppose the  |
      |  biology department at  the university were  to walk in and  |
      |  tell you, "You  folks have to  be experimental subjects in  |
      |  an experiment  we're  carrying  out where  we're  going to  |
      |  stick electrodes in  your brain and  see what happens. And  |
      |  you  can  refuse.  But  only  if  you  provide  scientific  |
      |  evidence that it is  going to harm you." Usually you can't  |
      |  provide scientific evidence.                                |
      |      The question is: Do  you have a right to refuse? Under  |
      |  World Trade Organization rules,  you don't. You have to be  |
      |  experimental subjects. It's a  form of what Edward Herman,  |
      |  a  co-author  of  mine  who's  an  economist,  has  called  |
      |  "producer  sovereignty."  The  producer  reigns; consumers  |
      |  have   to   somehow    defend   themselves.   That   works  |
      |  domestically,  too,  as  he  pointed  out.  It's  not  the  |
      |  responsibility of, say, chemical and pesticide industries,  |
      |  to demonstrate,  to prove that  what they are putting into  |
      |  the environment is  safe.  It's the responsibility  of the  |
      |  public to prove scientifically that it's unsafe. They have  |
      |  to do this  through under-funded public  agencies that are  |
      |  susceptible to  industry  influence  through  lobbying and  |
      |  other pressures.                                            |
      |                                                              |
      ----------------------------------------------------------------


     In recent years, corporations have been granted rights that go far
     beyond those of persons. So under the World Trade Organization
     rules, corporations can demand what's called the right of
     "national treatment." That means that, for instance, Genearl
     Motors, if it's operating in Mexico, can demand to be treated like
     a Mexican firm. That is only a right of the immortal persons. It
     is not a right of flesh-and-blood persons. Thus a Mexican can't
     come to New York and demand national treatment and do very well.
     But corporations can.

     Other rules require that the rights of investors, lenders, and
     speculators must prevail over the rights of mere flesh-and-blood
     people generally, undermining popular sovereignty and diminishing
     democratic rights. Corporations, as I'm sure you know, even have
     the right to bring suits, to bring actions against sovereign
     states. And they are interesting cases.

     For example, Guatemala a couple of years ago sought to reduce
     infant mortality by regulating the marketing of infant formula by
     multinationals. The measures that Guatemala proposed were in
     conformity with World Health Organization guidelines and they kept
     to international codes. But the Gerber Corporation claimed
     expropriation and the threat of a World Trade Organization
     complaint sufficed for Guatemala to withdraw, fearing retaliatory
     sanctions by the United States.

     Actually the first such complaint under the new World Trade
     Organization rules was brought against the United States by
     Venezuela and Brazil who complained that EPA regulations on
     petroleum violated their rights as petroleum exporters. Washington
     backed down that time also allegedly in fear of sanctions but I'm
     skeptical about that interpretation. I don't think the U.S. fears
     trade sanctions from Venezuela and Brazil. More likely, the
     Clinton Administration simply saw no compelling reason to defend
     the environment and protect health.

     These issues are arising very dramatically and in fact, obscenely
     right now. Tens of millions of people around the world are dying
     from treatable diseases because of the protectionist elements
     written into the World Trade Organization rules that grant private
     mega-corporations monopoly-pricing rights. So Thailand and South
     Africa, for example, which have pharmaceutical industries, can
     produce life-saving drugs at a fraction of the cost of the
     monopolistic pricing. But they are afraid to do so under threat of
     trade sanctions. In fact, in 1998, the United States even
     threatened the World Health Organization that it would withdraw
     funding if the World Health Organization even monitored the
     effects of trade conditions on health. These are very real
     threats; I'm talking about today, like this week's international
     press.

     All of this is called "trade rights." It has nothing to do with
     trade. It has to do with monopolistic pricing practices enforced
     by protectionist measures that are introduced into what are called
     free trade agreements. The measures are designed to ensure
     corporate rights. They also have the effect of reducing growth and
     innovation, naturally. And they are only part of the array of
     regulations, introduced into these agreements, which are an
     attempt to prevent development and growth. They are not
     economically motivated. What is at stake is investor rights and
     not trade. And trade, of course, has no value in itself. It is of
     value if it increases human welfare, otherwise not.

     In general the primary principle and related treaties of the World
     Trade Organization is that sovereignty and democratic rights have
     to be subordinated to the rights of investors. In practice that
     means the rights of the huge, immortal persons; the private
     tyrannies to which people must be subordinated.

     These are among the issues that led to the remarkable events in
     Seattle. But in a lot of ways, the conflict between popular
     sovereignty and private power was illuminated more sharply a
     couple months after Seattle, just a few weeks ago in Montreal,
     where an ambiguous settlement was reached on the so-called
     "bio-safety protocol."[3]

     There the issue was very clearly drawn. I'll quote the New York
     Times: "A compromise was reached after intense negotiations that
     often pitted the United States against almost everyone else" over
     what's called "the precautionary principle." What's that? Quoting
     the chief negotiator for the European Union who described it this
     way: "Countries must have the freedom, the sovereign right, to
     take precautionary measures with regard to genetically altered
     seed, microbes, animals, crops that they fear might be harmful."
     The United States, however, insisted on World Trade Organization
     rules. Those rules are that an import can be banned only on the
     basis of scientific evidence.[4]

     Notice what's at stake here. The question that's at stake is
     whether people have the right to refuse to be experimental
     subjects. So, to personalize it, suppose the biology department at
     the university were to walk in and tell you, "You folks have to be
     experimental subjects in an experiment we're carrying out where
     we're going to (I don't know what), stick electrodes in your brain
     and see what happens. And you can refuse. But only if you provide
     scientific evidence that it is going to harm you." Usually you
     can't provide scientific evidence.

     The question is: Do you have a right to refuse? Under World Trade
     Organization rules, you don't. You have to be experimental
     subjects. It's a form of what Edward Herman, a co-author of mine
     who's an economist, has called "producer sovereignty." The
     producer reigns; consumers have to somehow defend themselves. That
     works domestically, too, as he pointed out. It's not the
     responsibility of, say, chemical and pesticide industries, to
     demonstrate, to prove that what they are putting into the
     environment is safe. It's the responsibility of the public to
     prove scientifically that it's unsafe. They have to do this
     through under-funded public agencies that are susceptible to
     industry influence through lobbying and other pressures.

     That was the issue at Montreal and a kind of an ambiguous
     settlement was reached. Notice, to be clear, there was no issue of
     principle. You can see that by just looking at the line-up. The
     United States was on one side and it was joined in fact by some
     other countries with a stake in biotechnology and hi-tech
     agro-export. On the other side was everybody else -- those who
     didn't expect to profit by the experiment. That was the line-up
     and that tells you exactly how much principle was involved. For
     similar reasons, the European Union favors high tariffs on
     agricultural products, just as the United States did 40 years ago
     but no longer and not because the principles have changed; just
     because power has changed.


      ----------------------------------------------------------------
      |                                                              |
      |  [The 1940s] was a time of overwhelming popular support for  |
      |  social welfare  programs and  radical democratic measures.  |
      |  And primarily for  those reasons -- this  is very explicit  |
      |  incidentally, not inference -- the Bretton Woods system of  |
      |  the mid-forties regulated exchange  rates. The idea was to  |
      |  cut down wasteful and harmful speculation and it permitted  |
      |  countries to restrict  capitol flow. And  the reasons were  |
      |  well understood and clearly articulated. Free capital flow  |
      |  creates what's sometimes called  a "virtual parliament" of  |
      |  global  capital,  which  can   exercise  veto  power  over  |
      |  government policies  that  it  considers  irrational. That  |
      |  means things like labor  rights or educational programs or  |
      |  health or  efforts to  stimulate the  economy. Or  in fact  |
      |  anything that  might  help  people  and  not  profits (and  |
      |  therefore is irrational in the technical sense).            |
      |                                                              |
      ----------------------------------------------------------------


     There is an overriding principle. The principle is that the
     powerful and the privileged have to be able to do what they want
     (of course, pleading high motives). The corollary is that
     sovereignty and democratic rights of people must go. In this case
     -- and that's what makes it so dramatic -- their reluctance to be
     experimental subjects when U.S.-based corporations can profit by
     the experiment. The U.S. appeal to the World Trade Organization
     rules is very natural since they codified that principle; that's
     the point.

     These issues, although they are very real and affecting a huge
     number of people in the world, are actually secondary to other
     modalities to reduce sovereignty in favor of private power. Most
     important, I think, surely, was the dismantling of the Bretton
     Woods system in the early 1970s by the United States and Britain
     and others. That system was designed by the U.S. and Britain in
     the 1940s.

     It was a time of overwhelming popular support for social welfare
     programs and radical democratic measures. And primarily for those
     reasons -- this is very explicit incidentally, not inference --
     the Bretton Woods system of the mid-forties regulated exchange
     rates. The idea was to cut down wasteful and harmful speculation
     and it permitted countries to restrict capitol flow. And the
     reasons were well understood and clearly articulated. Free capital
     flow creates what's sometimes called a "virtual parliament" of
     global capital, which can exercise veto power over government
     policies that it considers irrational. That means things like
     labor rights or educational programs or health or efforts to
     stimulate the economy. Or in fact anything that might help people
     and not profits (and therefore is irrational in the technical
     sense).

     The Bretton Woods system more-or-less functioned for about 25
     years. That's what many economists called the "golden age" of
     modern capitalism; modern state capitalism, more accurately. That
     was a period -- roughly up until about 1970 -- of quite
     historically unprecedented rapid growth of the economy, of trade,
     of productivity, capital investment, extension of welfare state
     measures, a golden age. That was reversed in the early seventies.
     The Bretton Woods system was dismantled with liberalization of
     financial markets and floating exchange rates.

     The period since has often been described as a "leaden age,"
     accurately. There was a huge explosion of very short-term
     speculative capital completely overwhelming the productive
     economy. There was quite marked deterioration in just about every
     respect: considerably slower economic growth, slower growth of
     productivity of capital investment, much higher interest rates
     (which slow down growth), greater market volatility and financial
     crises. All of these things have very severe human effects, even
     in the rich countries where the lenders tend to be bailed out:
     stagnating or declining wages, much longer working hours,
     particularly striking in the United States, cutback of services.

     Just to give one example in today's great economy that everyone's
     talking about, the median income (half above, half below) for
     families has gotten back now to what it was in 1989 which is well
     below what it was in the 1970s. It has also been a period of the
     dismantling of social democratic measures that had considerably
     improved human welfare. And in general the newly-imposed
     international order provided much greater veto power for the
     "virtual parliament" of private capital of investors leading to
     significant decline of democracy and sovereign rights (as
     intended), and a significant deterioration in social health.

     While those effects are felt in the rich societies, they are a
     catastrophe in the poorer societies. These issues cut across
     societies. It is not a matter of this society got richer and that
     one got poorer. The more significant measures are sectors of the
     global population. So, for example, using recent World Bank
     analyses, if you take the top five percent of the world's
     population and compare their income wealth to the bottom five
     percent, that ratio was 78:1 in 1988 and 114:1 in 1993 (that's the
     last period for which figures were available), and undoubtedly
     higher now. The same figures, the top one percent of the world's
     population has the same income as the bottom 57 percent --
     two-and-a-half billion people.

     For the rich countries, the point was made very clearly (to quote
     a well-known economist) by Barry Eichengreen, in his highly
     regarded history of the international monetary system. Listen to
     it carefully. He has the point correct. Like others, he pointed
     out (many people have pointed this out) that the current phase of
     globalization is rather similar to the pre-World War I period by
     rough measures. However, there are differences.

     And here they are. The main one: At that time, global policy,
     government policy, had not yet been "politicized" by "universal
     male suffrage and the rise of trade unionism and parliamentary
     labor parties." Therefore the severe human costs of financial
     rectitude that are imposed by the virtual parliament could be
     transferred to the general population. But that luxury was no
     longer available in the more democratic Bretton Woods era in 1945,
     so that "limits on capital mobility substituted for limits on
     democracy as a source of insulation from market pressures."

     There is a corollary to that. It is quite natural that the
     dismantling of the post-war economic order should be accompanied
     by a significant attack on substantiative democracy, freedom and
     popular sovereignty and human rights, under the slogan, TINA,
     There Is No Alternative. It's kind of a farcical, mimicry of
     vulgar Marxism. The slogan, needless-to-say, is self-serving
     fraud. The particular socio-economic order that's being imposed is
     the result of human decisions and human institutions. The
     decisions can be modified. The institutions can be changed. If
     necessary they can be dismantled and replaced just as honest and
     courageous people have been doing throughout the course of
     history.



                       *    *    *    *    *    *  



     IRC Board Member Charlie Clements read out written questions from
     from the audience. First, he acknowledged and thanked Ken Forens
     (sp?), who presented sign-language during the talk saying, "I have
     always found listening to Dr. Chomsky like taking a drink of water
     from a fire hydrant so I can't imagine how it was for people
     reading the sign presentation." He went on to speak briefly about
     the IRC while the questions were being gathered.

     "There are two main publications that you might want to
     participate in. One is called Foreign Policy In Focus which comes
     out periodically and the subjects are what we tend to read about
     all the time but probably don't have a lot of clarity on. One week
     we had Human Rights and U.S. Foreign Policy; here's another one on
     so-called `Humanitarian Intervention' is what we call what we did
     in Kosovo; here's one on Population and Environment; here's one on
     AIDS and Developing Countries: Democratizing Access to Essential
     Medicines which Dr. Chomsky referred to; there was one on Star
     Wars Revisited: Still Dangerous, Costly, and Unworkable, the World
     Trade Organization and Sustainable Development. There are one page
     briefs followed by a page with problems of current U.S. foreign
     policy, what a new foreign policy might look like, a progressive
     foreign policy, and on the back there is a number of references to
     go to for more information on these subjects. These come out about
     every two weeks.

     "In addition to that, IRC publishes borderlines which talks about
     our role as a state in the borderlands. This comes out less
     frequently. Water Conflict in the Borderlands was a recent one;
     Native Communities in the Borderlands on both sides of the border;
     the scope and limits of Environmental Law. These are very
     informative if you really want to understand our place in the
     borderlands of the states of both Mexico and the United States."



     Question: You note that sovereignty is under attack but I wonder
     how we can both protest democracy at a local level and national
     level, while at the same time promoting the need for effective
     international norms and institutions.

     Noam: When you're part of any system, whatever it is -- a family,
     a country, a world -- if you want to be part of it, you're making
     a compromise. You're giving up a certain degree of freedom of
     action because of the gains that come to you, or to others (not
     just to you), from solidarity and participation. And the same is
     true of sovereignty. Like I said, national sovereignty, in itself,
     is of no value. It's of value insofar as it contributes to human
     welfare -- to human rights, to freedom, and so on. In this world
     participation in an international community, which is a
     constructive and a healthy one, is good for everybody. Not just
     us, but everyone else.

     So I don't see any contradiction between maintaining, or trying to
     maintain, our control of our own polity -- that is, in fact,
     trying to create control over it, because we don't have much
     control over the way decisions are made within our own community,
     state, nation, etc. -- and making the decision, our own decision,
     to subordinate some of those choices to international institutions
     which could express a broader notion of solidarity and
     cooperation. These are the kinds of choices you make if you decide
     to live in a family, and any bigger unit.



     Q: President Clinton recently said the U.S. has the right on
     humanitarian grounds to intervene, with force, in any country
     which it deems is abusing the human rights of its citizens. Do you
     agree with President Clinton's statement?

     Noam: It has interesting consequences. So, for example, I presume
     the U.S. Air Force has the capacity to bomb Washington. That would
     certainly follow. And plenty of other places.

     I said I wouldn't go into this, but take, say, East Timor. There
     was never any intervention in East Timor, contrary to what you
     read. There was no intervention because there was no issue of
     sovereignty. Indonesian rights in East Timor were granted solely
     by the United States. It was an invasion. Indonesia invaded in
     1975 with U.S. authorization. The Security Council ordered them
     out. (Actually the U.S. voted for that, but undermined the
     Security Council resolution and, in fact, the Ambassador said so,
     and explained why.)

     Then came 25 years of huge massacres. Maybe a third of the
     population was wiped out with U.S. diplomatic and military
     support. In early 1999, the atrocities started escalating again.
     In the early months of the year there were thousands of people
     killed by the Indonesian military and their paramilitary forces.
     This wasn't much reported here, but it wasn't very secret.

     This went on up to the point where, in September last year,
     750,000 people -- that's 85 percent of the population -- were
     driven out of their homes, brutally driven out, most of the
     country destroyed. A couple hundred thousand were driven into
     Indonesian territory. 150,000 are still there in Indonesian
     concentration camps. The U.S. did nothing. The U.S. position was,
     "It's their responsibility and we don't want to take it away from
     them." That was the position right through.

     Finally, in mid-September, Clinton was compelled -- under domestic
     pressure and pretty heavy international pressure, primarily from
     Australia -- to tell the Indonesian generals that the game was
     over. That's essentially what happened. He said, "Look, that's
     enough." Immediately they left. That tells you exactly how much
     latent power was always there.

     It wasn't necessary to bomb Washington to stop this atrocity, or
     to bomb Jakarta, or to impose sanctions. It was enough to withdraw
     participation and tell them it's finished. They left. After they
     left, the UN peacekeeping force entered, and the United States
     wants it to be reduced and refuses to fund it and so on and so
     forth and, of course, is doing nothing about those who right now
     are rotting in concentration camps. That's not intervention and
     it's not humanitarian intervention.

     And there are many cases like that. If we want to do good in the
     world, the best place to start is with the famous Hippocratic
     principle: first, do no harm. The first thing to do is to stop
     carrying out atrocities, and we're not doing that. While Clinton
     is talking about the right of humanitarian intervention, which he
     has never once exercised and -- I want to cut down the criticism
     of Clinton, nor has anyone else -- it's unlikely that in all of
     history you can find a genuine case of humanitarian intervention.
     Try. It's very hard. I mean intervention that was carried out with
     a humanitarian purpose. Occasionally they have humanitarian
     effects, which are incidental. And of course, just about every
     intervention is declared to be humanitarian -- Hitler, Mussolini,
     everybody. But real ones, real humanitarian intent, that's
     extremely hard to find. There may not be any examples. So
     Clinton's not unusual. But there are many ways in which we can act
     to improve things in the world.

     For example, the easiest way is by not participating in escalating
     atrocities. And we're doing it right now. I'm not talking about
     the past, not last year. Next year. So, one of Clinton's main
     projects for next year is a huge increase in military aid to
     Colombia. Colombia has the worst human rights record in the
     hemisphere and has had it for the last ten years, mostly because
     human rights violations in our other client states declined so it
     went up. It's also been the leading recipient of U.S. military aid
     and training during that decade, going on right under Clinton. Now
     it's going to go up even further.

     Notice that Colombia has now replaced Turkey at the top of the
     recipients of U.S. military aid. Actually there's another
     category, Israel and Egypt, but that's a separate category for
     totally other reasons. But among the countries that get military
     aid, Turkey was top until this year, now Colombia has moved to the
     top. The reason is that Turkey was carrying out a murderous,
     brutal, counterinsurgency program and ethnic cleansing operation
     (notice this is within NATO, it's not across the borders) which
     led to about 2-3 million refuges, 3,500 towns destroyed -- that's
     about seven times Kosovo -- tens of thousands of people killed.
     How were they doing it? Well, with U.S. military aid that the
     Clinton administration was pouring in. As the atrocities escalated
     the aid escalated. A lot of it illegal because it was banned by
     Congress. So it had to be done in devious ways, like jet planes
     and so on. Why has that declined? Because they pretty much
     suppressed the indigenous population that they were attacking, so
     therefore the aid has declined.

     Now it's shifting over to Colombia where they still have that
     problem. About 70 percent -- 80 percent of the atrocities, several
     thousand killed a year, are attributed (even by the State
     Department) to the paramilitaries who are tightly linked with the
     military. The aid is going to exactly those people. It's being
     directed for a counterinsurgency war, it's going to attack
     peasants. It's avoiding the areas of paramilitary control, even
     though everybody knows that the paramilitaries are up to their
     neck in narco-trafficking, just as the military is. All of this is
     under the cover of a drug war, which nobody takes seriously who
     knows anything about either Colombia or drugs. OK, that's going to
     escalate atrocities. That's very likely going to escalate what is
     already the worst level of human rights violations in the
     hemisphere and it's going to get even higher.

     OK, you want to stop. Again, before talking about the academic
     issue of humanitarian intervention (of which there are no known
     examples), you can start by not escalating atrocities as you have
     been doing in the past. So instead of continuing to escalate
     atrocities, say, in Turkey, and I could give a long list of
     others, don't do it in Colombia, and plenty of other places. So
     there's a lot that can be done. It's not that there's nothing that
     can be done. But you have to be serious about it.


     ------------------------------------------------------------------
     |                                                                |
     |  It is  quite natural  that the  dismantling of  the post-war  |
     |  economic order should be accompanied by a significant attack  |
     |  on substantiative democracy, freedom and popular sovereignty  |
     |  and  human  rights, under  the  slogan,  TINA,  There Is  No  |
     |  Alternative.  It's kind  of  a farcical,  mimicry  of vulgar  |
     |  Marxism. The slogan, needless-to-say, is self-serving fraud.  |
     |  The particular socio-economic  order that's being imposed is  |
     |  the result  of human  decisions and human  institutions. The  |
     |  decisions can be modified.  The institutions can be changed.  |
     |  If necessary  they can  be dismantled  and replaced  just as  |
     |  honest and courageous  people have been doing throughout the  |
     |  course of history.                                            |
     |                                                                |
     ------------------------------------------------------------------



     Q: Without having looked at the questions, I know that there are
     many people in the audience that would like to have your
     impressions of what happened in Seattle, in terms of its prognosis
     for social activism.

     Noam: Seattle was very significant, I think. For one thing, those
     people didn't just show up spontaneously. They were there because
     of very serious, extensive, long-term, educational, and organizing
     activities. And they show what can be achieved by that, and that's
     the only thing that can achieve anything. That's the first lesson
     that ought to be drawn from it. Educational and organizing
     activities can have a real effect. A very constructive effect.

     The other striking fact about Seattle, very striking, was the
     range of the diversity of the constituencies that were involved.
     They ranged from people speaking for indigenous people of the
     third world, third world peasant and labor groups, U.S. labor,
     environmentalists (in the United States and abroad), in fact a
     very wide range of activists -- people who, in the past, haven't
     had very much to say to one another, or have even been
     antagonistic. But here they found common ground, and important
     common ground, in opposing a major attack on popular sovereignty
     and human rights and freedom that's going on under the rubric of
     these investor rights agreements.

     Well, what's the prognosis? Like everything else, it depends what
     you make of it. There's no way to predict those things. These are
     things you try to do something about, not make predictions about.
     The predictions are idle. The actions that can be undertaken are
     very real. It's going to come up again. The Boston Globe, my local
     newspaper, had a little item the other day that said, "Anarchists
     Planning to Attack IMF Meeting." Well, OK, the anarchists are
     those people, you know who they were, but that's the way it must
     look from the centers of power. There's something right about it.
     If you're trying to undermine authority and subordination and
     domination, then you're in the highest principles of anarchism. So
     it's not totally false. But whether the "anarchists" will succeed
     in compelling the IMF and the World Bank to reverse course or
     modify them substantially and to move the international order in
     totally different directions, those are questions of choice, not
     prediction.



     Q: Kosovo: what are the interests driving intervention? What do
     you foresee for the people of the region?

     Before he answers that question, the book that he's autographed,
     you've heard the expression, "Read the book." The book he's
     autographed out front is called, The New Military Humanism:
     Lessons from Kosovo, is Dr. Chomsky's latest book.

     Noam: That one was written last July and, since then, a lot of
     documentation has come out from impeccable sources, like the State
     Department, and NATO, and so on, which affirms, to an extent that
     actually surprises me, the rather tentative conclusions there.
     I've written more recent stuff about it, if you're interested. We
     can start by saying what the intervention was not motivated by. It
     was not motivated by humanitarian concern; I think that is
     overwhelmingly obvious at this point.

     There is now a rich mine of documentation from sources of the kind
     I've just mentioned which demonstrate that, up until the bombing,
     Kosovo was a pretty ugly place. In fact, not unlike Colombia,
     though probably not as bad. But nothing special was happening in
     the period before the bombing. The place was teeming with
     monitors, European monitors, the international human rights
     organizations, the ICRC, the UNHCR, etc., and their reports are
     available, to a large extent, and they're pretty clear. In the
     last two-month reporting period before the bombing, they estimate
     more than one violent death a day, which is bad (on both sides,
     incidentally, these are distributed -- Serbs, Albanians, some of
     the Albanians being killed by Albanians). Ugly, but not changing;
     and, in fact, nothing special happening.

     The bombing was then undertaken with the expectation that it was
     going to sharply escalate atrocities. We now have a record of
     where it escalated atrocities from the Organization for Security
     and Cooperation in Europe (OSCE), who gave a detailed
     documentation of what happened afterwards. Their conclusion is
     that the atrocities took place as anticipated, primarily in areas
     of guerilla activity and potential invasion routes. Ugly and
     horrible and war crimes and everything else, but not all that
     surprising when you bomb some country and you plan and you
     threaten to invade them. That was the anticipated consequence of
     the bombing.

     It's been kind of inverted now in the rendition, so what you read
     is that they were carrying out ethnic cleansing so we had to bomb
     to stop ethnic cleansing. Just take a look at the record; it's
     exactly the other way around. The ethnic cleansing followed the
     bombing, and it was the anticipated consequence of it, and for
     ugly, but intelligible reasons. You might ask yourself what would
     be happening here, let's say, if a guerilla army based in Mexico
     were killing policemen, civil servants, civilians, so on and so
     forth, with supplies coming in from Mexico, in an effort to try to
     recover for Mexico the territory that was stolen from it not all
     that long ago. How would you react around here? How would the
     United States react? You don't have to bother saying.

     What the commander, General Clark, said at the time turns out to
     be very accurate. As the bombing started, NATO Commander Wesley
     Clark informed the press that it was "entirely predictable" that
     atrocities would sharply increase. We now know how sharply they
     increased because we know what they were before and what they were
     afterwards. A couple of weeks later he informed the press again
     that the purpose of the bombing never had anything to do with
     ethnic cleansing; that was not a concern of the political
     leadership or of the military command that was implementing it.
     Now in retrospect, that's pretty much what is the case. So I think
     we can wipe out that argument, that it was humanitarian in intent
     (perhaps for the first time in history) -- it wasn't. So what was
     it? That's the question.

     Well, here we go from fact, which you can verify, to speculation,
     which you can only just guess, because we don't have internal
     documents. So if you want my speculation, it's about what I had in
     that book. I think there's now more evidence for it, but it's
     still speculation because we don't have documents of internal
     planning. If you take a look back at that time, you'll notice that
     two arguments were given for the bombing. The first argument was
     that we had to stop ethnic cleansing. That can't possibly be right
     -- just take a look at the factual record. The second argument
     that was given is more plausible, in my view, and that is that it
     was necessary to maintain the credibility of NATO. Well, I think
     that's plausible, but you have to translate it. Like most things
     in political rhetoric, you've got to do a little work on it.

     When the U.S. and Britain talk about the credibility of NATO, what
     do they have in mind? I mean, are they worried about the
     credibility of Norway? The credibility of Italy? Belgium? I don't
     think so. They're worried about the credibility of the United
     States and its attack dog, which is what England has become. It
     basically is a highly militarized state that is sent out to attack
     people. So the U.S. and its attack dog, it's their credibility
     that's at stake. With whom? It's a wide audience. For one thing,
     with Europe. Part of the reason, I suspect, for shifting the arena
     of confrontation from diplomacy to violence is that that's where
     the U.S. and Britain reign supreme. If you can bring NATO in, it's
     a U.S., secondarily British, operation. If it's a matter of
     diplomacy, the United States doesn't hold any cards any stronger
     than Germany or France or anyone else.

     There's been a significant conflict between Europe and the United
     States over the emerging shape of the world. They don't agree on
     everything. They disagree on things. Putting NATO in the forefront
     is a way of putting the United States in the forefront. The United
     States doesn't dominate Europe, but it does dominate NATO. If
     Europe were to move towards a security system from, say the
     Atlantic to the Urals, the way France and some in Germany have
     proposed, that's going to marginalize the United States in
     European affairs. If Europe stays under NATO control, the U.S. is
     going to run it. That's NATO expansion and everything else. So
     part of the credibility that was involved, I think, was
     credibility of U.S. power, vis-a-vis Europe.


     ------------------------------------------------------------------
     |                                                                |
     |  Norman Solomon, who's a media  critic you may know, made the  |
     |  interesting  observation that  before  .  . .  1995,  it was  |
     |  described usually as an information superhighway. Since 1995  |
     |  it's been  described  mostly as  e-commerce,  home marketing  |
     |  service. That's not accidental.                               |
     |      When it  was under public  control, the goal  was (or at  |
     |  least thought to  be) an information superhighway, something  |
     |  people  could  participate  in.  Now  it's  a  technique  of  |
     |  subordination. It's being converted into a device of exactly  |
     |  the kind that I was describing from the advertising industry  |
     |  (going  back  decades),  a  device  to degrade  and  control  |
     |  people.  To  create  wants  --  to  impose a  philosophy  of  |
     |  futility, to focus your attention on the superficial aspects  |
     |  of life, like  fashionable consumption -- and to marginalize  |
     |  people (keep them from the dangerous activity of interacting  |
     |  with one another), and to satisfy created wants.              |
     |      Will it be that? That's  kind of like the question about  |
     |  Seattle. It depends on  whether people let it happen. That's  |
     |  a terrain of struggle right now.  The Internet has been very  |
     |  effective  in   organizing.  It's  had  a    very  valuable,  |
     |  subversive effect  -- like Seattle,  for instance. A  lot of  |
     |  the organizing was  through Internet. Or East  Timor -- I've  |
     |  been  working  on  East  Timor  for  years, ever  since  the  |
     |  mid-seventies; almost got  no where. The effects were pretty  |
     |  limited until the  early nineties when Charlie Scheiner came  |
     |  along and  organized  ETAN (the  East Timor  Action Network)  |
     |  largely through the Internet. Within a very short time there  |
     |  was  a  pretty active  and  effective  lobbying efforts  and  |
     |  educational  and  organizing  efforts,  which  made  a   big  |
     |  difference. That's the kind of thing you can do with it....   |
     |      Well, that's  just what  the major corporations  want to  |
     |  stop. They  want to  stop that kind  of freedom.  And that's  |
     |  just what the  public ought to be  calling for and trying to  |
     |  maintain. That's a  big battle that's  going to go on in the  |
     |  next couple of  years. It's like everything  else, you can't  |
     |  predict the outcome -- it's the  kind of thing you try to do  |
     |  something about rather than try to predict. So the future of  |
     |  the Internet is very much up for grabs, I think.              |
     |                                                                |
     ------------------------------------------------------------------


     But then it's much broader than that. Serbia, like it or hate it,
     it's the one part of Europe which has not subordinated itself to
     the U.S. picture of what things should look like, and it's got to
     go. And if it turns out to be disobeying orders, as it was doing,
     then all the more reason why it's got to go. Here, credibility in
     another sense enters. If you want to understand that form of
     credibility, just go to your favorite Mafia don and ask him what
     credibility means. If a local storekeeper doesn't pay protection
     money, you don't just send somebody to collect the money, you make
     an example of him because you have to establish credibility. You
     send in goons and beat him to a pulp, or something like that. That
     establishes credibility. Then others understand they'd better
     listen.

     That's credibility, and it you look through the record, that's the
     kind of credibility that has to be established all the time. Not
     just by the Mafia don, but by the global Mafia don as well.
     Whoever it may be, and in the last half-century it's been mostly
     the United States -- and now, dramatically.

     I think that's the sense in which credibility had to be
     established. You have to show who's boss. You have to "domesticate
     aspirations," as the Jesuits in San Salvador learned, the
     surviving ones. Because aspirations contrary to the wishes of the
     powerful will not be tolerated and efforts to pursue them will
     lead to very severe consequences. My guess is that that range of
     considerations is probably what underlies planning in this case,
     as in many others. But, let me say again, that's speculation.
     Until the documentary record may come out, long after I'm gone,
     we're not going to have any clear evidence about this, I expect.



     Q: Dr. Chomsky, there have been several questions about the
     Internet, and if you might comment on your thoughts about its
     impact on wealth distribution, capital mobility, and its potential
     to alter the status quo.

     Noam: Remember, first, something that is important to bear in
     mind: like just about every dynamic aspect of the economy, the
     Internet is a product of the state sector; that is, it was created
     at public expense. It was within the vast state sector of the
     economy for around thirty years. First the Pentagon, then the
     National Science Foundation, that's where the ideas came, the
     development, the research, meaning the public paid for it. Maybe
     the public didn't know. But the public paid for it. And that went
     on until very recently.

     The Internet was handed over to private power only in 1995. It was
     a gift, a huge gift from the public (which didn't know a thing
     about it) to private power. That certainly didn't have to happen.
     In fact, an interesting question is how it happened, and nobody's
     been able to figure that out yet. There's no record that anybody
     can discern of what the decision-making process was by which you
     guys, the public, handed over to Bill Gates (and others) this
     tremendous development. It's by no means the only thing. Most of
     the dynamic economy is sort of similar; this is a dramatic case of
     it.

     Norman Solomon, who's a media critic you may know, made the
     interesting observation that before and after 1995 the Internet
     was differently described in the media. Before 1995, it was
     described usually as an information superhighway. Since 1995 it's
     been described mostly as e-commerce, home marketing service.
     That's not accidental.

     When it was under public control, the goal was (or at least
     thought to be) an information superhighway, something people could
     participate in. Now it's a technique of subordination. It's being
     converted into a device of exactly the kind that I was describing
     from the advertising industry (going back decades), a device to
     degrade and control people. To create wants -- to impose a
     philosophy of futility, to focus your attention on the superficial
     aspects of life, like fashionable consumption -- and to
     marginalize people (keep them from the dangerous activity of
     interacting with one another), and to satisfy created wants.


      ----------------------------------------------------------------
      |                                                              |
      |  The Internet  was  handed over  to  private power  only in  |
      |  1995. It was  a gift , a huge gift  from the public (which  |
      |  didn't know  a  thing  about it)  to  private  power. That  |
      |  certainly didn't have  to happen. In  fact, an interesting  |
      |  question is  how  it happened,  and nobody's  been able to  |
      |  figure that  out yet.  There's no record  that anybody can  |
      |  discern of what  the decision-making process  was by which  |
      |  you guys,  the  public,  handed over  to  Bill  Gates (and  |
      |  others) this tremendous development.  It's by no means the  |
      |  only  thing.  Most  of  the  dynamic  economy  is  sort of  |
      |  similar; this is a dramatic case of it.                     |
      |                                                              |
      ----------------------------------------------------------------


     Will it be that? That's kind of like the question about Seattle.
     It depends on whether people let it happen. That's a terrain of
     struggle right now. The Internet has been very effective in
     organizing. It's had a very valuable, subversive effect -- like
     Seattle, for instance. A lot of the organizing was through
     Internet. Or East Timor -- I've been working on East Timor for
     years, ever since the mid-seventies; almost got no where. The
     effects were pretty limited until the early nineties when Charlie
     Scheiner came along and organized ETAN (the East Timor Action
     Network) largely through the Internet. Within a very short time
     there was a pretty active and effective lobbying efforts and
     educational and organizing efforts, which made a big difference.
     That's the kind of thing you can do with it. The Multilateral
     Agreement on Investments -- that would've sailed right through if
     it hadn't been for Internet organizing, which got around the media
     suppression on the issue (very quickly in fact). The same is true
     in other countries. Like in Indonesia, the overthrow of the
     Suharto dictatorship was substantially done through the Internet.
     That's a technique of communication that went around the main
     control systems.

     Well, that's just what the major corporations want to stop. They
     want to stop that kind of freedom. And that's just what the public
     ought to be calling for and trying to maintain. That's a big
     battle that's going to go on in the next couple of years. It's
     like everything else, you can't predict the outcome -- it's the
     kind of thing you try to do something about rather than try to
     predict. So the future of the Internet is very much up for grabs,
     I think.



     Q: Dr Chomsky, could you comment on the implications, the extent
     of, and the consequences of corporate participation in the U.S.
     system of higher education?

     Noam: That's a very real issue. There has been a general assault
     in the last 25 years on solidarity, democracy, social welfare,
     anything that interferes with private power. And there are many
     targets. One of the targets is undoubtedly the educational system.
     In fact, a couple of years ago already, the big investment firms,
     like Lehman Brothers, and so on, were sending around brochures to
     their clients saying, "Look, we've taken over the health system;
     we're taking over the prison system; the next big target is the
     educational system. So we can privatize the educational system,
     make a lot of money out of it."

     Also, notice that privatizing it undermines the danger -- there's
     a kind of ethic that has to be undermined, namely the idea that
     you care about somebody else. A public education system is based
     on the principle that you care whether the kid down the street
     gets an education. And that's got to be stopped.

     This is very much like what the workers in the mills in Lowell,
     Massachusetts were worrying about 150 years ago. They were trying
     to stop the idea of what they called the new spirit of the age:
     "Gain wealth, forgetting all but self." We want to stop that.
     That's not what we're like. We're human beings. We care about
     other people. We want to do things together. We care about whether
     the kid down the street gets an education. We care about whether
     somebody else has a road, even if I don't use it. We care about
     whether there is child slave labor in Thailand. We care about
     whether some elderly person gets food. That's social security. We
     care whether somebody else gets food. There's a huge effort to try
     to undermine all of that. To try to privatize aspirations so then
     you're totally controlled. Privatize aspirations, you're
     completely controlled. Private power goes its own way, everyone
     else has to subordinate themselves to it.

     Well that's part of the basis for the attack on the public
     education system, and it goes right up to the universities. In the
     universities there's a move towards corporatization and that has
     very clear effects. You see it at MIT, you see it everywhere. It
     means that you want to create, just like industry, you want to
     create a more flexible work force. That means undermine security.
     It means have cheap temporary labor, like graduate students, who
     don't have to be paid much and who can be thrown out -- they're
     temps. OK, they're going to be around for a couple of years, then
     you toss them out and have some more temps.

     It affects research, strikingly. I'm sure you see it here, but at
     a research institution like where I am, MIT, you see it pretty
     clearly. As funding shifts from public entities, including,
     incidentally, the Pentagon, in fact, primarily the Pentagon, which
     has long understood that its domestic role is to be a cover for
     transferring public funds into private profit. When funding goes
     from the Pentagon and the National Science Foundation and others
     into corporate funding, there's a definite shift.

     A corporation, say, some pharmaceutical corporation, is not
     particularly likely to want to fund research which is going to
     help everybody. There's exceptions, but, by and large, it's not
     going to want to fund, say basic biology, which may be a public
     good that anybody can use 10 or 20 years from now. It's going to
     want to fund things that it can make profit from and, furthermore,
     do it in the short term. There's a striking tendency, and a
     perfectly natural one, for corporate funding to institute more
     secrecy and short-term applied projects to which the corporation
     has proprietary control on publication and use. Well you know,
     technically corporate funding can't demand secrecy, but that's
     only technically. In fact they can, like the threat of not
     re-funding imposes secrecy.

     There are actually cases like this, some of them so dramatic
     they've made the Wall Street Journal. There was an article in the
     Wall Street Journal last summer, you may have seen, about MIT, my
     place. What had happened was that a student in a computer science
     class had refused to answer a question on an exam. When he was
     asked why, by the professor, he said that he knew the answer but
     he was under a secrecy condition from a different professor not to
     answer it, and the reason was, in the research he was doing for
     this other professor, they had sort of worked out the answer to
     this; but they wanted to keep it secret. Because they wanted to
     make money, or something. Well, you know, this is so scandalous
     that even the Wall Street Journal was scandalized.

     But that's the kind of thing you can expect as there's a move
     towards corporatization. After all, corporations are not
     benevolent societies. As Milton Friedman correctly says, not in
     these words, "The board of directors of a corporation actually has
     a legal obligation to be a monster," an ethical monster. Their
     legal obligation is to maximize profits for the shareholders, the
     stockholders. They're not supposed to do nice things. If they are,
     it's probably illegal, unless it's intended to mollify people, or
     improve market share, or something. That's the way it works.

     You don't expect corporations to be benevolent any more than you
     expect dictatorships to be benevolent. Maybe you can force them to
     be benevolent, but it's the tyrannical structure that's the
     problem, and as the universities move towards corporatization you
     expect all of these effects.

     And one of the effects, in a way, I think the most important, is
     the undermining of the conception of solidarity and cooperation. I
     think that lies at the heart of the attack on the public school
     system, the attack on social security, the effort to block any
     form of national health care, which has been going on for years.
     And, in fact, across the board, and it's understandable. If you
     want to "regiment the minds of men just as an army regiments their
     bodies," you've got to undermine these subversive notions of
     mutual support, solidarity, sympathy, caring for other people, and
     so on and so forth.


      ----------------------------------------------------------------
      |                                                              |
      |  Also, notice  that privatizing  it  undermines the danger,  |
      |  there's a kind of  ethic that has to be undermined, namely  |
      |  the idea  that  you  care  about  somebody else.  A public  |
      |  education system is  based on the principle  that you care  |
      |  whether the  kid down  the street  gets an  education. And  |
      |  that's got to be stopped.                                   |
      |      This is very  much like what the  workers in the mills  |
      |  in Lowell,  Massachusetts  were  worrying about  150 years  |
      |  ago. They were trying to stop the idea of what they called  |
      |  the new  spirit of  the age: "Gain  wealth, forgetting all  |
      |  but self."  We want  to  stop that. That's  not what we're  |
      |  like. We're human  beings. We care  about other people. We  |
      |  want to do things  together. We care about whether the kid  |
      |  down the street  gets an education.  We care about whether  |
      |  somebody else has a road,  even if I don't use it. We care  |
      |  about whether there  is child slave  labor in Thailand. We  |
      |  care about whether  some elderly person  gets food. That's  |
      |  social security. We care  whether somebody else gets food.  |
      |  There's a huge effort to  try to undermine all of that. To  |
      |  try to   privatize  aspirations  so  then  you're  totally  |
      |  controlled.  Privatize   aspirations,   you're  completely  |
      |  controlled. Private power goes  its own way, everyone else  |
      |  has to subordinate themselves to it.                        |
      |                                                              |
      ----------------------------------------------------------------


     The attack on public education is one example. Incidentally I
     don't know how it's working here, but in Massachusetts, where I
     see it directly, there's a comparable attack on the state
     colleges, which are there for working class people, people who
     come back to college after they're half-way in their career,
     mothers who come back, people from the urban ghettos, and so on
     and so forth. That's what the state college system has been and
     they're under serious attack by an interesting method. The method
     has been to raise the entrance standards for the state colleges
     without improving the schools. So when you don't improve the
     schools but you raise the entrance standards for the people who
     are trying to go on, it's obvious what happens. You get lower
     enrollments. And when you get lower enrollments, you've got to cut
     staff. Because remember, we have to be efficient, like
     corporations. So you cut staff, and you cut services, and then you
     can admit even fewer people, and there's kind of a natural cycle,
     and you can see where it ends up. It ends up with people either
     not going to college or figuring out some way to spend $30,000 a
     year at a private college. And you know what that means. All of
     these are part of the general effort, I think, to create a
     socio-economic order which is under the control of private
     concentrated power. It shows up all over the place.



     Q: Dr. Chomsky, could you comment on socially responsible
     investing? Is it a viable option for positive change, or is it a
     way to depoliticize people?

     Noam: I don't think it's a bad thing to do. It's like asking
     dictators to be more benevolent. Which is often a good thing to
     do. If you have a dictator, it's better if they're benevolent than
     if they torture people. Like a slaveowner -- it's better to have a
     nice slaveowner than a murderous slaveowner. I think those are
     good things to do. I think it makes a lot of sense to take
     illegitimate institutions and try to make them function less
     harmfully to people. Whether it depoliticizes you or not depends
     on whether you decide to mislead yourself. That's a choice. It can
     depoliticize you if you think you're doing something different.
     But if you see that this is in fact what you're doing, then this
     is a good thing to do.



     Q: What are the motivations of the U.S. push for sustainable
     development in the developing world?

     Noam: It's the first time I ever heard of it. Does the U.S. have a
     push for sustainable development? As far as I know, the U.S. push
     is for unsustainable nondevelopment, almost the opposite. Take a
     look at the programs that are part of the World Trade Organization
     rules. Like TRIPs and TRIMs (for those of you who know this stuff)
     Trade-Related Intellectual Property and Trade-Related Investment
     Measures. Both of those are designed to impede development and
     impede growth. So the intellectual property rights are just
     protection of monopolistic pricing and control, guaranteeing that
     corporations, in fact, by now, mega-corporations, have the right
     to charge monopolistic prices. Guaranteeing, say, that
     pharmaceutical production drugs will be priced at a level at which
     most of the world can't afford them, even people here. For example
     drugs in the U.S. are much more expensive than the same drugs as
     close as Canada, even more expensive than say, Europe. And for the
     third world this just dooms tens of millions of people to death.

     As I said, other countries can produce the drugs. Under the
     earlier patent regimes, what you had was process patents. I don't
     even know if those are legitimate, but process patents meant that
     if some pharmaceutical company figured out a way to produce a
     drug, somebody smarter could figure out a better way to produce it
     because all that was patented was the process. So if the Brazilian
     pharmaceutical industry figured out a way to make it cheaper and
     better, fine, they could do it. It wouldn't violate patents. The
     World Trade Organization regime insists on product patents, so you
     can't figure out a smarter process. Notice that impedes growth and
     development and it is intended to. It's intended to cut back
     innovation, growth and development and to maintain extremely high
     profits.

     Well, the pharmaceutical corporations and others claim they need
     this for research and development. But have a close look; it's
     been looked at. A very substantial part of the research and
     development is paid for by the public anyway. In a narrow sense,
     it's on the order of 40 to 50 percent. But that's an
     underestimate, because it doesn't count the basic biology and the
     basic science, which is all publicly funded. So if you get a
     realistic amount, it's a very high percentage that's publicly paid
     anyway. Well, suppose that went to 100 percent. Then all the
     motivation for monopolistic pricing would be gone, and there'd be
     a huge welfare benefit to it. There's no justifiable economic
     motive for this. There's some economic motive, profit. But it is
     an effort to impede growth and development.

     What about Trade-Related Investment Measures? What do they do?
     It's a little more subtle than TRIPs. In the case of TRIPs it's
     straightforward. It's straight protectionism for the benefit of
     the rich and powerful, publicly-subsidized corporations. TRIMs,
     the Trade-Related Investment Measures are a little more subtle.
     What they require is that a country cannot impose conditions on
     what an investor decides to do. Like if an investor, let's say
     General Motors, decides to carry out outsourcing, to have parts
     made in some other country with non-union labor, cheap labor, and
     then send them back to General Motors.

     In the successful developing countries in Asia, one of the ways
     they developed is by blocking that sort of thing, by insisting
     that if there was foreign investment, it had to be done in a way
     which was productive for the receiving country. So there had to be
     technology transfer, or you had to invest in places they wanted
     you to invest in, or some proportion of the investment had to be
     for export of finished goods that made money. Lots of devices like
     that. That's part of the way in which the East Asian economic
     miracle took place. Incidentally, it's the way that all the other
     developing countries developed too, including the United States,
     with technology transfer from England and so on and so forth.
     Those things are blocked by the Trade-Related Investment Measures.
     Superficially they sound like they are increasing free trade, but
     what they are in fact increasing is the capacity of huge
     corporations to carry out central management of cross-border
     transactions, because that's what outsourcing and intrafirm
     transfers are -- centrally managed. It's not trade in any
     meaningful sense. And they again undermine growth and development.

     In fact, looking across the board, what's being instituted is a
     regime which will prevent the kind of development that has taken
     place in the industrial countries that today are rich. If you go
     back from England to the United States, to Germany, to France,
     Japan, Korea -- every one of these countries developed by
     violating the principles that are now being built into the World
     Trade Organization, and radically violating them.

     These are methods of undermining growth and development and
     ensuring concentration of power. The issue of sustainable
     development doesn't even arise. That's another question
     altogether. Sustainable development means, for example, paying
     attention to what are called externalities, the things businesses
     don't look at.

     So take, say, trade. Trade is supposed to increase wealth or
     something. Maybe it does, maybe it doesn't, but you don't know
     what it does until you count in the costs of trade. Including
     costs which are not counted. Like, for example the cost of
     pollution. When something moves from here to there it's creating
     pollution. It's called an externality; you don't count it. There's
     resource depletion. Like you deplete the resources of agricultural
     production. There are military costs. For example, the price of
     oil is kept within a certain band, not too high, not too low, by a
     substantial part of the Pentagon. A very substantial part of the
     Pentagon is directed toward the Middle East oil producers, not
     because the United States likes desert training or something, but
     because that's where the oil is. You want to make sure it doesn't
     get too high, doesn't get too low, but stays where you want it.
     There hasn't been much investigation of this, but one
     investigation by a consultant for the U.S. energy department
     estimated that Pentagon expenses alone amount to maybe a 30
     percent subsidy to the price of oil, something maybe in that
     range.


      ----------------------------------------------------------------
      |                                                              |
      |  You don't  expect corporations  to be  benevolent any more  |
      |  than you expect dictatorships  to be benevolent. Maybe you  |
      |  can force them  to be benevolent, but  it's the tyrannical  |
      |  structure that's the problem, and as the universities move  |
      |  towards corporatization you expect all of these effects.    |
      |      And  one of the  effects, in  a way, I  think the most  |
      |  important,  is  the   undermining  of  the  conception  of  |
      |  solidarity and cooperation. I think that lies at the heart  |
      |  of the attack  on the public school  system, the attack on  |
      |  social security, the effort  to block any form of national  |
      |  health care, which  has been going  on for  years. And, in  |
      |  fact, across  the board,  and it's  understandable. If you  |
      |  want  to "regiment  the  minds  of  men  just  as  an army  |
      |  regiments their  bodies,"  you've  got to  undermine these  |
      |  subversive   notions   of   mutual   support,  solidarity,  |
      |  sympathy, caring for other people, and so on and so forth.  |
      |                                                              |
      ----------------------------------------------------------------


     Well, you look across the board, there's lots of things like this.
     One of  the costs of trade  is that it drives  people out of their
     livelihoods. When you export subsidized U.S. agricultural products
     to Mexico, it drives millions of peasants out of farming. That's a
     cost. In  fact, it's  a multiple  cost, because those  millions of
     people not  only suffer but they are  driven into the cities where
     they  lower    wages,   so  other  people   suffer  --  including,
     incidentally, American  workers, who  now are competing  with even
     lower paid wages. These  are costs. If you take them into account,
     you  get a   totally different  picture of  economic  interactions
     entirely.

     Incidentally, that's also true just of something like Gross
     Domestic Product. Take a look at the measures of Gross Domestic
     Product -- they're highly ideological. For example, one of the
     ways to increase the Gross Domestic Product in the United States
     is (to do what, in fact, it's doing) to not repair roads. If you
     don't repair roads and you have a lot of potholes all over the
     place, that means when cars drive, they get smashed up. That means
     you've got to buy a new car. Or you have to go to mechanic and get
     him to fix it, and so on. All of that increases the Gross Domestic
     Product. You make people sicker by polluting the atmosphere. That
     increases the Gross Domestic Product because they have to go to
     the hospital and they have to pay doctors and they have to have
     drugs, and so on. In fact, what increases the Gross Domestic
     Product is not a measure of welfare in any meaningful sense.

     There have been efforts to construct other measures, which do take
     account of these things, and they give you very different stories.
     I'll just give you one source to look at, if you're interested.
     The United States is one of the few industrial countries that does
     not publish regular "social indicators" -- measures of social
     welfare, like child abuse, mortality, all kinds of things. Most
     countries do it. Every year they have a social indicator measure.
     The United States doesn't, so it's hard to get a measure of the
     social health of the country. But there have been efforts to do
     it.

     There's one major project at Fordham University, a Jesuit
     university in New York. For years they've been trying to construct
     a social health measure for the United States. They just came out
     with the last volume a couple months ago. It's interesting stuff.
     According to their analyses of the kinds of measures of the sort I
     mentioned, up until about 1975, that is, through the "golden age,"
     as it's called, social health went up, more or less, with the
     economy. It kind of tracked the economy. As that got better,
     social health got better. From 1975 they've diverged. The economy
     has continued to grow, even though more slowly than before, but
     social health has declined. And it's continuing to decline. In
     fact, they conclude that the United States is in a recession. A
     serious recession from the point of view of measures that matter.
     That's when you're beginning to look at questions like sustainable
     development, meaningful development. But that requires a
     completely different perspective on all of these issues of economy
     and consequences, and so on. One that definitely should be
     undertaken. And those are the issues that arise when people are
     talking about sustainable development. But the U.S. certainly has
     no such program. It should. But it doesn't.



     Q: We had wanted tonight to be a celebration of activism, and I
     think that this turnout is a good indication that it is just that.
     Many people have traveled a long ways to come here. I wanted to
     acknowledge that there are about 60 students and faculty from the
     United World College. They're students from around the world.
     They'll have traveled about 250 miles tonight by the time they go
     and come back to their school. There were a lot of questions about
     what the individual can do and what society can do to respond
     positively and productively to the kind of monopolization of power
     that we're seeing.

     But rather than ask that question, Dr. Chomsky continues on a
     schedule like this week after week, year after year. He was booked
     18 months in advance when we tried to first ask him to join us for
     this celebration. This is actually the 21st year of IRC; we're
     celebrating the 20th anniversary late because we wanted to
     celebrate it with Dr. Chomsky. But I would like to close by asking
     him what is it that sustains him, and what is it that gives him
     hope, and what is it that inspires him to keep on going like he
     has been doing for so many years.

     Noam: That's easy. It's groups like IRC who do the real work. The
     really important work is done by people who are at it
     day-after-day, whatever the activity is (and there are plenty of
     them), most of them unknown. You look over past history; the
     people who have really changed the world in a decent direction,
     nobody knows their names. Take, say, the civil rights movement in
     the United States. How many of you know the names of the people
     who actually were at the forefront, like SNCC workers? Nobody
     knows their names. A few, maybe. That kind of dedication, energy,
     activism, everywhere -- if anybody has an opportunity to
     participate in it now and then, it's a gift. Thank you.






     Footnotes

       1. This was the 1886 Supreme Court decision, Santa Clara County
          v. Southern Pacific Railroad Company [118 U.S. 394] in which
          the 5-4 opinion ruled that a private corporation was a
          "natural person" under the US Constitution, sheltered by the
          14th Amendment, which requires due process in the criminal
          prosecution of "persons." A copy of this decision is
          available at
          http://www.ratical.org/corporations/SCvSPR1886.html

       2. For more on the history of corporate charters granted by U.S.
          state power, as opposed to those granted by the divine right
          of European kings, see "TAKING CARE OF BUSINESS: Citizenship
          and the Charter of Incorporation," by Richard Grossman and
          Frank Adams, 1993 and "Asserting Democratic Control Over
          Corporations: A Call To Lawyers ," by Richard Grossman and
          Ward Morehouse, Fall 1995.

       3. See the Cartagena Protocol on Biosafety, Biosafety Home Page,
          a sector of the Convention on Biological Diversity website
          (http://www.biodiv.org/), for more information.

       4. See "The Precautionary Principle,"Rachel's Environment &
          Health Weekly, 2/19/98, and "Use and Abuse of The
          Precautionary Principle," ISIS submission to US Advisory
          Committee on International Economic Policy (ACIEP) Biotech.
          Working Group, July 13, 2000





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