Blackwell Science, LtdOxford, UKIJCInternational Journal of Consumer Studies1470-6423Blackwell Publishing Ltd, 2004293170180Original ArticleSAPs and human wellbeingS.L.T. McGregor Structural adjustment programmes and human well-being Sue McGregor Mount Saint Vincent University, Halifax, NS, Canada (http://www.consultmcgregor.com) Abstract This paper provides a primer on structural adjustment programmes (SAPs) anticipating that a deeper understanding of these policies enables home economists to influence the global trend for SAPs that is profoundly impacting human well-being. It addresses the issue of what SAPs are (their intended and actual impact on family well-being), provides five reasons why home economists should care about SAPs and tenders seven ideas for what we can do, as professionals, to mitigate the negative impact of SAPs on familial wellbeing and human security. Structural adjustment programmes, human development, well-being, home economics. Keywords Introduction This paper provides a primer on structural adjustment programmes (SAPs) anticipating that a deeper understanding of these policies enables home economists (and others) to influence the global trend for SAPs that is profoundly impacting family and human wellbeing. The ‘structure’ that is being ‘adjusted’, using a ‘programme’ comprised of different economic policy instruments, is the national economy. It is especially important that members of the profession (and others) understand how SAPs work. On 8 July 2003, the United Nations Development Program (UNDP) released its annual Human Development Report and revealed that, during the economically prosperous 1990s, and some US representatives, the International Monetary Fund (IMF) and the World Bank (WB) imposed SAPs on the developing world. These SAPs have proven economically disastrous.1 In policy circles, this tri-party, Correspondence Sue McGregor, Mount Saint Vincent University, 166 Bedford Highway Halifax NS B3M 2J6, Canada. E-mail: sue.mcgregor@msvu.ca 170 neo-liberal, corporate-led globalization formula of economic development became known as the ‘Washington Consensus’.2 Levinson holds that the Washington Consensus is breaking up and their legitimacy is declining in the face of slow economic growth, crippling instability in global financial markets, growing inequality and the degradation of working conditions and quality of life for billions of people. If this is the case, it is time for home economists, among others, to become involved with issue of SAP-driven economic development so they can be part of the movement dealing with their impact and promoting alternative approaches. What are SAPs? While development is a broader term, referring to equal opportunity, political freedom and civil liberties, economic development is defined as a sustainable increase in living standards that encompasses material consumption, education, health and environmental protection.3 Evans4 clarifies that, while economic growth is usually initiated from within a country, economic development is brought in from the outside, usually in the form of SAPs.5 In 1999, the WB changed the label SAPs to Poverty Reduction Strategy Papers (PRSP). These ‘papers’ replace the old tripartite Policy Framework Paper (PFP) drawn up between the IMF, WB and a country government for concessional loans. These ‘papers’ are prepared by governments receiving the money through a participatory process involving civil society and development partners, including the WB and the IMF.6 The assumption is that, if they come up with their own poverty reduction programme, they cannot blame the WB for any fallout from trying to meet the terms of the loan. Brazier7 claims that these programmes were renamed because the term SAP was so tainted. He notes that, unfortunately, the distinguishing features of PRSPs are the same as for SAPs. ‘Poverty is used as window dressing to peddle more or less the same SAPs to low income countries that led them into a state of chronic economic crisis to begin with’.8 Even International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 © 2005 Blackwell Publishing Ltd S.L.T. McGregor • SAPs and human well-being the WB and the IMF agree that, ‘despite limited evidence of the overall formula’s success, PRSP’s have quickly multiplied and travelled’.9 As the end result is the same, the term SAPs will be used to refer to PRSPs in this paper. To benefit both national and family economies, externally imposed economic development initiatives should strive for sustainability, institutional capacity and capability, poverty reduction, empowerment, gender relations, environmental protection, feasibility, good governance, dialogue and participation.5 Government attempts to stimulate economic growth from within can facilitate the development of local and family economies, but not if they entail SAPs. Consider that all of the 54 developing countries that implemented SAPs in last decade ended up poorer than when they started.1 What our profession has to be concerned about is that while family life goes on, despite the onslaught of economic reforms, the quality of that daily life often declines.10–12 The family economy is invariably negatively compromised when a government decides, is mandated or coerced, to implement an SAP. The neoliberal assumption is that too much state involvement in the planned economy of developing and underdeveloped countries (vs. private enterprise), coupled with uncontrolled spending on the wrong things (meaning health, social welfare and education), leads to an indebted situation that can only be fixed if the government shifts from a planned to a market economy via SAP economic policies.13 When SAPs are introduced, expenditures on basic services (health, education, welfare and social programmes) are often severely curtailed. Instead, monies earned from selling goods and commodities exported to the world markets are used to make payments on the huge IMF, WB and private loans and are used to impact market activities, capital investment and production activities rather than basic services. Engler1 confirms that governments in most developing or underdeveloped countries are sending more money to the industrialized North (including North America, Australia and New Zealand and Europe) in the form of debt and interest payments, than we are sending them in aid and loans. The balance of payments for the Sub-Saharan Africa shows a $12-bn loss for the region! Also, the balance often shifts away from publically delivered ser- © 2005 Blackwell Publishing Ltd vices towards privatization. The latter involves government selling its service offerings to private enterprises who in turn sell the services to the public at a profit (health, education, utilities, transportation, etc.). Mihevc notes that developing and underdeveloped countries living under SAPs are expected to ‘courageously swallow the bitter medicine of adjustment’ (p. 12).11 But, this medication, to extend the metaphor, can be detrimental to economic, physical, social and emotional well-being not to mention the environmental and intergenerational impact. World lending institutions, such as the WB and the IMF, draw from a long list of SAP strategies (see Table 1). This list includes the manipulation of many things we are familiar with including: interest rates and exchange rates, price controls, marketing boards, trade rules, social programmes, education, health care, wage controls and poverty indices.10 Table 2 identifies the intended impact on the formal economy and the actual impact on the family economy of these strategies. A critical analysis of Table 2 reveals that, unfortunately, SAPs have often reeked unconscionable social repercussions on the people who were supposed to benefit from these economic policies. SAPs have had a very negative impact on women and families who continue to be: marginalized and impoverished, Table 1 Inventory of SAP strategies13 • • • • • • • • • • • • • Encourage efficient labour intensive growth thereby providing employment and income Focus on small landholders so as to empower the rural poor Invest in rural area including transport and social services; development of agricultural research, extension and credit systems Encourage private sector to invest in agriculture Promote the creation of farmer interest groups to ensure participation and pluralism Expand understanding of concept of sustainable agriculture Promote an enabling policy environment Promote technology creation and transfer Promote rural infrastructure and natural resource management Invest directly in people via provision of elementary school education, basic health, family planning and nutrition Improve living conditions and increase the capacity of the poor to respond to income opportunities arising from economic growth Protect the environment Target well-being of vulnerable groups, especially women and children SAP, structural adjustment programme. International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 171 SAPs and human well-being • S.L.T. McGregor Table 2 Economic policy instruments and strategies used to implement SAPs with intended effect and actual impact on families and economies14,16 Economic policy instrument Devalue exchange rates; unification of exchange rate, elimination of exchange controls and multiple exchange rates Remove price distortions/controls, deregulate prices and marketing systems (boards) Intended effect on LDC economy Actual impact on LDC economy and citizens Make exports more competitive and imports more expensive; increases foreign direct investment (FDI); fight inflation, promote saving and investment and discourage capital flight To allow the market to determine the price and to liberalize trade; to increase efficiency of resource allocation; leads to more consumer choice Decreased level of wages leading to more poverty and decline in standard of living; recession; an increase in price of equipment, spare parts and materials leads to bankruptcies; devaluing the exchange rate encourages capital flight out of the country Privatize government enterprises via sale of public corporations (notably social services); may involve debt equity swaps Cost savings and increase competitiveness of economy Raise interest rates Fight inflation, promote saving and investment and discourage capital flight Promote exports by removing trade barriers (subsidies, tariffs, non–trade barriers (NTBs); elimination of protective measures Cut government spending (austerity programmes) Allow countries to trade their way out of debt; increase availability of hard currency, reduce deficit and use money for investment and savings Increase availability of hard currency, reduce deficit and use money for investment and savings; balance evenues and expenditures and lleviate fiscal deficit Economic stabilization Control internal demand/consumption via control of real wages and labour costs (keep wages low and deindexed and control unions) Overall effort to eliminate poverty Removal of national restrictions on the operations of TNCs Application of SAPs across the board in all countries Increase human capital and improve productivity Facilitate economic growth and new technology Neo-liberal assumption that if it worked in one LDC it will work in another so it must be good policy Because cost of labour is kept low, consumers do not have disposable income to buy the goods and services they make or need. This is conducive to abuse and inequitable distribution of food leading to black markets, small farm bankruptcies and unintended price distortions. When bought up by TNCs, no new technology is developed and the profit often leaves the country – less investment and savings; debt equity swaps can lead to transfer of capital to foreign enterprises; closure, or privatization of, health care and education leads to lack of access because of excessive fees, teacher layoffs, closure of clinics and schools; lack of medical equipment and supplies. From another perspective, privatization leads to increased inequality in income distribution and to the brain drain noted earlier (disengagement of human capital) Cost of borrowing to small farmers is prohibitive so they tend to migrate to cities in search of jobs; leads to further impoverishment and, in some countries, the emergence of shanty cities of abject poverty; men working in cities tend to send less monies to women left in the rural areas; in fact, more and more men are abandoning their household Drives prices down therefore need more volume to get same economic value; unfortunately, commodities markets decline so LDCs find it difficult to sell abroad; SAPs are developed against a background of depressed growth of word demand for products Unfortunately, what is usually cut is spending on health care and education and there is a collapse of state social programmes Keeping wages low lead to more poverty, inability to keep up with rising prices (inflation) and a decline in standard of living; no guarantee that investments in new sectors is forthcoming; decreased purchasing power leads to undernourishment and higher rates of infant mortality; eliminates job security (firings, jailing) Increased poverty in many LDCs; dehumanized populace Lack of development of agriculture where many LDC citizens are employed No accounting for the context; destroys endogenous basic element of economic development, generates dislocations in State structure and creates trusteeships by the International Financial Institutions (IFIs) (a paralleladministration) SAPs, structural adjustment programms; LDC, less-developed country; TNC, transnational corporation. 172 International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 © 2005 Blackwell Publishing Ltd S.L.T. McGregor • SAPs and human well-being unhealthy and undereducated, un-/underemployed and undertrained. They often lack access to technology, extension services and agricultural inputs, live in a harmful, potentially lethal, polluted physical environment, and are excessively overworked, underpaid and undervalued in their productive, reproductive and community management activities. Table 2 shows that, among other things, SAPs impact negatively on: earning power (wages and salaries), income distribution (gap between rich and poor), standard of living, health, mortality, employment opportunities, education, social conditions and resultant unrest and, ironically, the ability to repay the foreign debt and rebuild the economy, the intent of the SAP in the first place.10,14–16 Susan George says that ‘policies packaged under the general heading of “structural adjustment” – have cured nothing at all. Rather, they have caused untold human suffering . . .’ (p. 207).17 As recently as February 2004, Chossudovsky15 set out a detailed description of how IMF economic restructuring policies led to the current unrest in Haiti. He says that IMF reforms have often precipitated the downfall of elected governments. Based on the so-called ‘Washington Consensus’, IMF austerity and restructuring measures, through their devastating impacts, often contribute to triggering social and ethnic strife. He also provides evidence that, in extreme cases of economic and social dislocation, the IMF’s bitter economic medicine has contributed to the destabilization of entire countries, as occurred in Russia, Somalia, Rwanda, Yugoslavia and Haiti. Why do we care about SAPs? Why should the issue of SAPs be a concern for home economists, in particular? Many developed, as well as developing, nations are undergoing very similar versions of major adjustments to their national economies, adjustments that are having profound, negative effects on household economies. These adjustments include: deep and pervasive cuts to health care, education, and social services and welfare; restructuring of the national economy at the expense of families (especially women and children) for the benefit of corporations (big business and big banks) and governments; and, rapid, seemingly relentless, degradation of the natural envi- © 2005 Blackwell Publishing Ltd ronment. The needs, wants and desires of ordinary citizens are falling a distant second to the corporate agenda that is strengthening a global economic system which creates poverty, inequality and imbalanced development and threatens peace, security, justice and freedom.10,18 Second, adjustments to economies have become a global reality, with citizens in some countries, usually women and children, feeling the affects more profoundly than others. When such change impacts one’s earning and spending power, health, literacy, shelter, food security and power relationships, then one’s quality of life and standard of living, indeed, all aspects of well-being, are affected. When an adjustment to the national economy is undertaken, at the expense of the well-being, quality of life and standard of living of the family economy, members of our profession have a moral responsibility to intervene. Third, those imposing SAPs expect the family economy to adjust to, or cope with, the changes to the national economy or suffer the consequences, the latter most often the case.19 Witness the results of a recent study about the negative impact on Russian families’ ability to provide food when the country shifted from a planned economy to a market economy.20 Or, the impact of the transition of the Russian economy on women and the family economy12 or the impact of SAPs imposed on Ghanian women and their family economies.10 All three analyses, conducted by home economists, show that the impact of economic reform is especially hard on families, despite the intent of the reform (refer to Table 1 again). All facets of well-being and human security were compromised: cultural, social, economic, political, personal, physical and environmental. Another reason home economists should care about SAPs is that the current global economy aggravates the social division between rich and poor, as well as between the young and the old and between genders.16 Jazairy et al. argue that the ‘pursuit of current growth [strategies (SAPs)] often barters away the potential for future growth, through reduction of capital (resource depletion, pollution of the environment and the loss of human capacity) and the accumulation of uncontrollable debt’ (p. 21).21 This argument closely mirrors that of Goudzwaard and de Lange, who hold that ‘the International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 173 SAPs and human well-being • S.L.T. McGregor combination of lower wages, sharply decreased levels of health care and education, and loss of access to land, [residuals of SAP’s], has led to further grinding, relentless poverty’ (p. 17).22 Engler1 makes the painful observation that the gap between the rich and the poor is so severe that the richest 1% of the world’s population earns as much money as the poorest 57%. More telling is that, in 1980, the average CEO in the USA made 42% more than their workers. Now that figure is 411% more (Engler)! Finally, world countries deploying SAPs have paid out more in debt payments (interest and principle) than they have received from selling their exports. This heavy debt load occurs because of two fundamental realities. Because the money they make selling their cash crops (cocoa, coffee, sugar, bananas, peanuts, etc.) in the world market cannot cover the cost of producing them, the government is forced to use the money desperately needed for schools, health care, social welfare and community well-being to pay off IMF, WB and international financial institution loans (see Table 2 again). A key point of clarification is that, instead of letting the citizens eat the crops they plant, the government lets the large corporations buy large tracts of land previously used by indigenous peoples. The corporations sell the crops for cash; hence, the name cash crops. This practice means little food is left to eat and not enough money or land is left to buy or grow one’s own food. McGregor10 provides more details on the nuances of the negative impact of SAPs on family economies and women, using Ghana as a case study. It bears repeating that many aspects of human security are compromised because of the excessive debt loads carried by developing countries. As one compelling example, in 1995, each Third World citizen had to work nine months to pay off their share of the collective $1.35 Trillion external debt. Put another way, each year, each Third World person owes $150–200.00 on this debt but earns only $237.00 for the whole year, a hopeless situation.22 What can home economists do about SAPs? Seven ideas are offered that individual home economists, or local, state, national, regional or international home economics organizations, can consider for implementation. 174 Reality of neo-liberalism First, home economic professionals have to acquaint themselves with the underpinnings of a neo-liberal approach to economic adjustment programmes relative to an approach that has a human face. McGregor23 provides a solid primer on the basic tenets of neoliberalism: decentralization, privatization, deregulation and individualism. Succinctly, those adopting a neoliberal approach believe that ‘society is regarded as the necessary background to the market, whereas the state is considered an unnecessary interference . . . Liberalism holds to a concept of limited government’ (p. 74).16 Neoliberalists also hold that adjustments made to floundering economies should be based on the principles of a free market: efficiency, competitiveness, productivity, wealth accumulation and profit. The role of the state is simply to provide an enabling policy framework for private enterprise with just enough laws and regulations to keep the market competitive and provide basic public goods. The neo-liberalist approach also advocates the use of SAPs as the way to reorient a state-driven economy to a market oriented economy. It is assumed that the result should be less poverty because the benefits from capitalism will trickle down to the less privileged. In reality, despite the development assistance and relief efforts undertaken over several decades by countries from the North, poverty, hunger and general despair have increased substantially in Third World countries, especially for women and the family economy.1 As noted earlier, since 1982, the developing nations, as a whole, have paid more interest and principle to the wealthy countries and their banks than the total amount they received back from them in the form of investments, credits and development assistance (foreign aid). Alternative development models Second, home economists can familiarize ourselves with other models of economic development aside from neo-liberal-driven approaches. Those countries adopting an alternative paradigm to that of neo-liberal economics, especially those advocating for the Basic Needs approach to economic development, believe that there must be government intervention in the International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 © 2005 Blackwell Publishing Ltd S.L.T. McGregor • SAPs and human well-being market because there are so many ways for the market to fail. Granted, a market is needed at the very least to distribute goods and services to consumers.19 But, those adopting a Basic Needs approach to economic development believe that adjustments to economies to make them grow should balance aggregate growth of the national economy with individual needs. Growth with equity are the call words of this approach, concentrating the minimum requirements for a decent standard of life: adequate food, shelter, clothing, community services as well as needs relating to human rights, public participation in decision making and productive employment.24 Provision of essential services, such as health, water supplies, sanitation, public transport and education, lead to social and self reliance rather dependence. Taken further, an eco-development approach to adjusting economies would meet basic needs and respect the environment. Links to growth and the ramifications are central to this approach as are such principles as contextualism, adaption, long-term time frames, participation and different values than just profit.25 The term eco-development seeks to reflect the interdependency between environmental problems and those connected with economic growth, demography and poverty. The notion of participation brings the human development dimension into the ecodevelopment concept, by introducing the idea of local control over decision making.26 Those embracing the Basic Needs approach to economic development would argue that there is a growing realization that capitalism at it looks in the 21st century does not work, that benefits do not trickle down, that the gap between the have and have nots is widening and that neo-liberalist theory cannot account for reality. The ideology of Adam Smith’s ‘invisible hand’, which causes so much human suffering and injustice, has sent us, and our international economic structures, down the wrong track. The basic neo-liberalist premise is that, if we can restore growth in industrial production, then we can solve several of the distressing problems plaguing today’s domestic and international economies (benefits of wealth would trickle down to the poor). Instead, poverty, degradation and unemployment (a factor of production) have become resistant to, even deteriorate in the face of, industrial productive growth.22,27 © 2005 Blackwell Publishing Ltd Human and social development Third, home economists can renew their concept of development, beyond economic development, to reembrace include human and social development. These approaches to development are concerned with ‘poverty reducing growth’.21 While social development is concerned with promoting social progress relative to economic progress, human development is concerned with the empowerment of individuals and family units that make up society and are the backbone of the economy. Introduced in 1990, by the United Nations, the concept of sustainable human development refers to, not only generating economic growth but, distributing its benefits equitably; growth that regenerates the environment rather than destroying it; and, growth that empowers people rather than marginalizing them. It is development that gives priority to the poor, enlarging their choices and opportunities and providing for their participation in decisions that affect their lives. It is development that is pro-people, pro-nature, pro-jobs and pro-women.28 The WB29 says that social development, the context within which human development occurs, is development that is equitable and socially inclusive; promotes local, national and global institutions that are responsive, accountable and inclusive; and, empowers poor and vulnerable people to participate effectively in development processes. McGregor30 provides a much more detailed account of these two concepts in a home economics context. Table 3 sets out the many familiar dimensions of social development (the context for human and economic development) that we can focus on in our efforts to mitigate the negative impact of SAPs. Participatory development Fourth, home economic professionals can also benefit from Jazairy et al.’s21 extension of this line of thinking. They note that economic development, facilitated by adjusting the structure of economies, needs to focus on the new objective of participatory, environmentally sustainable growth. The latter is based on the sustained empowerment of the well-being of people, made possible by respecting the latent potential in people. Citizens would become partners in the economic growth process International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 175 SAPs and human well-being • S.L.T. McGregor Table 3 Dimensions of social development as set out in the 1969 UN37 Declaration on Social Progress and Development, the 1995 Copenhagen Declaration on Social Development 38 and the Geneva 2000 Social Development Summit 39 • • • • • • • • • • • • • • • • • • • • Access to basic education, completion of primary and closure of the gender gap A life expectancy of no less than 60 Reduced mortality rates of infants and children under five Reduced maternal mortality Food security (access, safety, quantity and cultural relevance) Reduction of malnutrition Primary health care so people are healthy enough to lead socially and economically productive lives Productive employment in equitable and favourable conditions of work Income and wealth distribution Access to family planning and child care facilities Reduction of malaria mortality and morbidity (occurrence and death) Elimination, and control of, major diseases Increased adult literacy, with emphasis on gender Access to safe drinking water and proper sanitation Affordable and adequate shelter for all Provision of community services Comprehensive rural and urban development to ensure healthier living conditions Transportation and communication systems Reduced discrimination against women Reduced poverty step strategic economic recovery programme and from Korten’s31 model of a mindful market. Their intent is to renew the economy such that the focus is on building human relationships at home and abroad, rather than meeting infinite needs through corporate led globalization, neo-liberal capitalism and rampant consumerism. Building a moral economy of care and a mindful market (also called life economies) entails the following collection of activities over the long-term (the first 12 are from Goudzwaard and deLange): 1 2 3 4 rather than passive people reeling in the aftermath of economic reform. Those adopting this view point would respect human life, dignity and democratic values as they form coalitions and coordinated networks, characterized by cooperation. Magdoff19 cautions, however, that, although this new world view is necessary, if we want to respect gender and the family economy, we must recognize that putting these ideas into practice is complex and full of pitfalls. There is always resistance when one challenges the status quo and the prevailing power structure. 5 6 7 Moral economies of care Fifth, if we are to strengthen the life chances and social pathways of citizens of any society, by questioning and resisting the neo-liberal ideology, home economists should, again, give due consideration to the notion of building a moral economy of care. We can do this by drawing lessons from Goudzwaard and de Lange’s22 12- 176 8 9 International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 Renew the world monetary system so that the world’s poorest countries have debt relief and more say in lending policies (right now, monies owed by Third World countries to the WB, IMF and regional development banks constitute just 5% of their effective capital. They can afford to cancel the debt). Replace increases in wages and salaries with the establishment of funds so that people and environmental needs can be cared for, too. Entrench corporate social responsibility for nonprofit reasons. Foster stewardship and move away from absentee ownership and put the cost of the decisions on those who make the decisions rather than on innocent citizens or the environment. Reorient the structure of price and production to it respects social, environmental and energy – put a cost on externalities. Alter how we finance social welfare and income transfer programmes by imposing the levy on company contributions based on the net value of the company instead of on the number of employees. This leads to labour intensive, instead of capital intensive, employment reducing automation and layoffs. Develop an innovative environmental policy. Measure economic growth and the cost of production in ways other than the GDP so that environment and household values are captured-use life and well-being as standards of growth as does the Genuine Progress Indicator (GPI). Encourage public debate on income levels leading to limits on private earnings and resultant consumption – the living wage idea. Do a bottom-up assessment of modern technology to determine if we develop with a human face and © 2005 Blackwell Publishing Ltd S.L.T. McGregor • SAPs and human well-being 10 11 12 13 14 15 are cognizant of the social costs of technological development and economic growth – share intellectual property rights rather than hoarding them. Build a network of people who wish to embrace economic renewal that does not threaten the human condition, drawing on human creativity. Assess international trade agreements to ensure they protect the environment and social standards and ensure citizen participation – keep control of national borders away from the IMF, WB, the World Trade Organization (WTO) and transnational corporations (TNCs). Make life style adjustments leading to more human contact and a sustainable economy. Insulate local communities from the instability of the global economy but leave diversity within the local boundaries so communities can be self-reliant (referred to as the localization movement). Favour human scale firms (less big business) where people maintain relationships based on trust and caring – build the social fabric of the community. Foster a collective identity within a global, ethical culture of self-restraint, because self-restraint is the moral centre of an ethical culture. Sixth, home economists are encouraged to monitor, critique and consider supporting the globalization from the bottom-up movement forming in response to corporate led globalization, neo-liberalist shaped capitalism and consumerism. The global economy is hugely subsidized (held up) by the civil society framework comprised of reasonable, moral institutions and individuals who strive for economic, social and gender equity and the insurance of basic civic staples – health, education, employment and law and order. A review of the globalization from the bottom-up literature (also referred to as alter globalization or anticorporate led globalization) reveals a collection of strategies that home economists could easily embrace, given their reflection of our holistic, interdisciplinary, ecological approach to practice:2,32–35 Elimination of extreme poverty, injustices and inequalities on earth, especially via food security © 2005 Blackwell Publishing Ltd • • • • • • Globalization from the bottom-up movement • • • • • • • Sustainable development and environmental protection Reform of international financial institutions, reforms that limit speculation, control illegal movement of funds (by IMF, WB, banks, tax havens and offshore financial centres) and allow for international bankruptcy and insolvency to replace IMF rescue missions using SAPs (eliminate SAPs) (debtor cartels could be formed!). See next point . . . Forgive all Third World debt and replace it with a framework of justice and discipline for relations between sovereign debtors and international creditors. Use the money freed up to eradicate poverty and build infrastructure and communities. ALSO, get Northern and other wealthy countries to repay Third World ecological and human rights debt! Entrench worker and human rights and ecological standards in the workplace Keep public/social services out of trade agreements (do not use government social policy as trade barrier); regulate financial services, transport, tourism, electronics and telecommunications for the benefit of nations not TNC’s Hold corporations and small and medium sized businesses socially responsible and accountable for their market actions – strive for fairer trade Ensure a voice at the table for civil society (democratize the globalization process – democracy needs proximity) Strive for localization and mindful markets in conjunction with responsible consumer behaviour – global citizenship Stop corporate patent protectionism by demanding that there be no patents on life or on intellectual property rights/traditional knowledge about biological resources (seeds and medicine) – strive for genetic and biodiversity and social diversity Augment national security with human security, peace and non-violence Increase equality between women and men – gender and women’s rights need to be accounted for, the marginalization of women must be stopped as must the continued feminization of poverty. Children’s rights are paramount Protect national, state sovereignty from TNC and WTO multilateral trade agreements International Journal of Consumer Studies, 29, 3, May 2005, pp170–180 177 SAPs and human well-being • S.L.T. McGregor • • • Stop cash cropping [reverse export oriented industrial farming and import liberalization (buy our stuff)] and help small farmers regain livelihood, dignity and food sovereignty and security as they practice sustainable agriculture, respecting cultural and productive diversity Ensure that trade agreements do not undermine genuine international social and environmental agreements Mainstream Western ideology media must be used responsibly and critically analysed and there must be a place for the legitimate alternative voice of the globalization from the bottom-up movement – the alter-globalization movement. Right now, the vehicle is the Internet but there are inclinations that it may become much more controlled in the future. Home economists in international development Finally, home economists can reflect on their role in international development (ID).36 McGregor notes that, even though human welfare is a universal concern, there is a greater concern for human welfare in southern countries, where 80% of the world’s individuals and families live, because they often face serious problems related to inequality, inequities, inaccessibility, lack of freedom, insecurity, injustices and war or civil unrest, exacerbated by SAPs. This involvement in ID includes reconciling the trend to impose our western values on southern developing countries, assuming that our perceptions of well-being and human welfare are ‘right’ for the entire world. It involves giving serious consideration to engaging in participatory action research, critical theory, critical science and a critical reflective approach to practice on a wider scale within the profession. It also means we give serious thought to adopting a global/ development perspective as an integral part of home economics. Conclusion If, indeed, the Washington Consensus is losing its credibility, our profession is morally obligated to get more involved with the evolution of a new world economic system that puts family and ecological well-being at the forefront of corporate profits and capitalistic growth. 178 Adjusting just one aspect of a country’s infrastructure, the economy using SAPs, to the detriment of the other elements that shape human security and well-being, is an unbalanced, unsustainable approach to development. All of economic, human, social and ecological development need to be addressed concurrently, with equal priority. Many leading initiatives shaping the new global economy were highlighted in this paper. It is anticipated that readers will follow through and get involved, or continue and expand their current level of involvement. 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