Thursday, August 29, 2024

When Cattleya Talked (14)

"I the quaint land called Thousands Islands, there existed a park like no other. It was called 'Whimsy Meadows,' and its recent renovation had turned it into a surreal wonderland. The townsfolk gathered there, eager to experience its newfound delights.
A local singer, with a penchant for ballad tunes, stood at the park’s entrance. His guitar slung over his shoulder, he crooned Ebiet G. Ade's song titled 'Song for a Name.' The lyrics beautifully captured the emotional impact of music on the soul: Why should my soul tremble? While I've heard the music is sweet ....
As the singer sang, he gestured toward the park. The once-green grass now resembled Swiss cheese, riddled with holes. The newly installed swings and slides were pristine, but they came with a disclaimer: 'For Display Only.' No one dared touch them, fearing they might unravel the fabric of reality.
Whimsy Meadows had guardians—peculiar beings in oversized top hats and monocles. They patrolled the park, ensuring that visitors adhered to its nonsensical rules. 'No skipping on the cracks!' they’d shout, chasing anyone who dared step on a hole.
Ah, the odong-odong—a garishly painted carnival ride that once delighted children. Now, it was a monochromatic monstrosity, its rainbow hues reduced to a single shade of beige. Only a select few could ride it—the ones who could recite the Fibonacci sequence backwards while hopping on one leg.

And then there was a man, the enigma. He’d been spotted near the park’s fountain, whispering to the pigeons. Some said he was the mastermind behind Whimsy Meadows’ absurdity. Others claimed he was merely a pawn in a cosmic game of chess.
In cyberspace, a digital wanted poster circulated. Grainy images of the man adorned every forum and social media platform. The caption read:

Wanted:
MOELJONO
Con Artist and Park Destroyer
Rewards were promised—cryptocurrency, rare memes, and a lifetime supply of virtual confetti.
One moonlit night, as the guardians slept (or perhaps daydreamed of fractals), the man stood atop the odong-odong. And then, he vanished into the park’s most absurd culvert, leaving behind a trail of paradoxes and unanswered questions.
And so, my dear friends, if you ever visit Whimsy Meadows, keep an eye out for the man. But beware: you might just lose your name, your sanity, or both."
[Note: Any resemblance to actual parks, singers, or reality is purely coincidental. Or is it?]

"When a nation becomes overly dependent on foreign aid, investments, or trade partners, it may lose its economic sovereignty and become vulnerable to external manipulation or exploitation. Economic dependency can lead to long-term weakening of domestic industries and innovation," Cattleya proceeded.
"Economic dependency occurs when a nation relies heavily on another country or external entities for financial support, trade, or critical resources. When a nation is economically dependent, it may have to align its policies with the interests of the dominant country or entity to maintain the flow of resources or aid. This can limit its ability to pursue independent economic or political strategies. Economic dependency can make a nation vulnerable to external economic shocks, such as fluctuations in global commodity prices, changes in trade policies, or financial crises in the partner country. These shocks can destabilize the dependent nation's economy, leading to recession or financial instability. Dependence on foreign investment or aid can hinder the development of domestic industries, as local businesses may struggle to compete with foreign companies or rely on imported goods rather than developing local production. Over time, this can weaken the nation's economic base and reduce its ability to generate sustainable growth.
Greece's economic dependency on European Union loans during the Eurozone crisis (2009-2015) highlighted the vulnerabilities of relying on external financial support. To receive bailout funds, Greece had to implement austerity measures dictated by the EU and the International Monetary Fund (IMF). These measures led to severe economic contraction, high unemployment, and social unrest, weakening Greece's economy and exacerbating political instability.

Fernando Henrique Cardoso and Enzo Faletto present a nuanced version of dependency theory, a framework that critiques the economic relationships between developed and developing nations. According to Cardoso and Faletto, dependency refers to a situation where the development of a nation's economy is conditioned by the development and expansion of another, typically more powerful, nation. In Latin America, this often manifests as an economic structure reliant on exporting primary goods to industrialized nations, leading to vulnerabilities in the domestic economy and limiting its capacity for autonomous growth. They emphasize that dependency is influenced by both external and internal factors. External factors include the global economic system and the influence of multinational corporations, while internal factors involve local political, social, and economic structures. The interaction between these factors shapes the nature and degree of dependency.
Many Latin American countries developed economies that were heavily reliant on the export of primary commodities (such as minerals, agricultural products, and raw materials) to more industrialized nations. This reliance created economic structures that were externally oriented and dependent on global market conditions, leaving these economies vulnerable to price fluctuations and demand shifts in international markets. The focus on exports of raw materials often led to the underdevelopment of domestic industries. Because the most profitable sectors were tied to foreign markets, local investment and policy attention were diverted away from building robust domestic manufacturing or service industries, resulting in limited industrial diversification and innovation.
Latin American countries often relied on foreign capital to finance infrastructure, industry, and development projects. However, these investments were typically controlled by foreign corporations or governments, which directed profits back to their home countries rather than reinvesting them locally. This led to a situation where economic growth in Latin America was largely dictated by the interests of foreign investors, rather than by national development goals. Foreign capital often dominated key sectors of the economy, such as mining, agriculture, and energy. This control limited the ability of Latin American governments to make independent economic decisions and pursue policies that prioritized national interests over those of foreign investors. As a result, economic policies were frequently shaped to attract and accommodate foreign capital, often at the expense of local development needs.
The dependence on foreign capital and markets weakened the bargaining power of Latin American countries in international negotiations. Their economies became susceptible to external pressures, including the imposition of unfavourable trade terms, debt conditions, or economic sanctions by more powerful nations or international financial institutions. Dependency on foreign investment and markets often constrained the policy choices available to Latin American governments. For example, they might have been pressured to maintain low taxes on foreign corporations or to adopt neoliberal economic policies that prioritized market liberalization and privatization, even when these policies were detrimental to local economies.
The reliance on foreign capital and markets eroded the economic sovereignty of Latin American countries. Decision-making in key areas of economic policy was increasingly influenced by foreign interests, reducing the ability of national governments to control their economic destinies. This dependency stunted the development of local industries and innovation. With profits and resources flowing out of the country, there was less reinvestment in education, technology, and infrastructure that could have fostered more diversified and sustainable economic growth. As a result, many Latin American countries experienced limited industrialization and remained trapped in a cycle of dependency and underdevelopment.
The economic structures shaped by dependency often exacerbated social inequality, as the wealth generated by export industries and foreign investments was concentrated in the hands of a small elite, while the broader population saw little benefit. This inequality further hindered social cohesion and the development of a broad-based, inclusive economy. The economic dependency and resultant social inequalities also contributed to political instability. The interests of the domestic elite, who often aligned with foreign investors, were at odds with those of the broader population, leading to tensions and, in some cases, conflicts that further undermined national development.

Oswaldo De Rivero critically examines the concept of development and argues that many developing countries fall into what he terms a trap of dependency on foreign aid and investment. According to De Rivero, this dependency is detrimental and leads to several negative consequences that undermine true development and long-term economic viability. De Rivero argues that foreign aid and investment often create the illusion of development rather than fostering genuine economic growth. Countries become dependent on external resources to maintain basic services and infrastructure, but this dependency does not translate into sustainable development or economic independence. Instead, it perpetuates a cycle where the countries rely on continuous external support without building their capacities.
The reliance on foreign aid and investment can lead to the perpetuation of underdevelopment. De Rivero suggests that foreign aid often comes with conditions or agendas set by donor countries or international organizations, which may not align with the recipient country's long-term development needs. This misalignment can result in the implementation of policies that are more beneficial to the donors than to the recipients, further entrenching underdevelopment. Dependency on foreign aid and investment can stifle the growth of domestic industries and innovation. When a country relies heavily on external resources, there is less incentive to develop local industries, technologies, or entrepreneurial ventures. This stifling effect prevents the country from creating a self-sustaining economy, leaving it vulnerable to external shocks and global market fluctuations.
De Rivero highlights that dependency on foreign aid and investment erodes a country's economic sovereignty. Decision-making power often shifts from national governments to foreign donors or investors, who may prioritize their own interests over those of the local population. This loss of sovereignty makes it difficult for countries to pursue independent economic policies that could lead to sustainable development. Many developing countries fall into a vicious cycle of debt due to their dependency on foreign aid and investment. Loans and financial assistance often come with high-interest rates or unfavorable repayment terms, leading to an increasing debt burden. As countries struggle to repay these debts, they become even more reliant on new loans or aid, further deepening their dependency and financial vulnerability.
De Rivero expands the concept of dependency beyond just economic factors, arguing that it contributes to a broader 'crisis of civilization.' He suggests that the dependency trap is part of a global system that prioritizes economic growth and development as the ultimate goals, often at the expense of environmental sustainability, social equity, and cultural integrity. This crisis reflects the unsustainable nature of a development model that is heavily reliant on external resources and fails to address the underlying structural issues within developing countries.

Dani Rodrik explores the inherent tensions between globalization, national sovereignty, and economic stability. He argues that these three elements are often in conflict with one another, and achieving a balance among them is challenging for nations operating within the global economy. Rodrik argues that globalization, particularly in its economic form, tends to erode national sovereignty by limiting the ability of governments to set their policies. As countries integrate into global markets, they are often required to adopt policies that are favourable to international trade and investment but may not align with their domestic priorities or values. For example, global trade agreements and the rules of international financial institutions often impose constraints on how governments can regulate their economies, manage their currencies, or protect their industries. The competition for foreign investment and access to global markets can lead to a "race to the bottom," where countries feel pressured to lower labour standards, environmental regulations, and corporate taxes to attract multinational corporations. This undermines the ability of governments to protect their citizens' welfare and pursue policies that reflect national interests.
Rodrik highlights that the globalization of finance can lead to increased economic instability. The free flow of capital across borders can result in financial volatility, as seen in numerous financial crises where sudden shifts in investor sentiment led to massive capital outflows, currency devaluations, and economic recessions. Countries that are deeply integrated into global financial markets are more susceptible to these shocks, which can have severe consequences for economic stability. Economic globalization often limits the effectiveness of traditional domestic policy tools. For example, when countries are deeply integrated into the global economy, the effectiveness of monetary policy can be compromised because capital can easily flow across borders, diminishing the control of central banks over interest rates and inflation. This makes it more difficult for governments to stabilize their economies in times of crisis.
Rodrik introduces the concept of the "political trilemma of the world economy," which posits that it is impossible to simultaneously achieve full economic globalization, national sovereignty, and democratic governance. Countries can only fully achieve two of these three objectives. For instance, if a country prioritizes national sovereignty and economic stability, it may need to limit its integration into the global economy (e.g., by implementing capital controls or trade barriers). If a country prioritizes globalization and economic stability, it might need to cede some national sovereignty to international institutions or rules that enforce global economic norms. If a country prioritizes national sovereignty and globalization, it might have to sacrifice some economic stability, as it cannot fully control its economic policies in the face of global market forces.
Rodrik argues that globalization can also create tensions with democratic governance. When national governments must comply with international economic agreements or the demands of global markets, they may be forced to implement policies that are unpopular with their citizens. This can lead to a democratic deficit, where decisions that affect the daily lives of citizens are made by international organizations or influenced by global market forces, rather than through democratic processes within the country. The discontent with the impact of globalization on national sovereignty and economic stability can lead to public backlash, including the rise of populism, nationalism, and protectionism. Citizens may demand a return to more nationally focused policies, even if these are at odds with the principles of economic globalization.

In addition to economic dependency risk, external environmental pressures, such as climate change, natural disasters, or resource scarcity, can strain a nation's capacity to respond effectively, leading to social unrest, displacement of populations, and challenges to national security. Climate change and environmental degradation can lead to the scarcity of critical resources such as water, arable land, and energy. This scarcity can exacerbate conflicts, drive population displacement, and strain governmental resources. Environmental disasters, such as floods, droughts, or hurricanes, can cause significant economic damage by destroying infrastructure, disrupting agriculture, and displacing communities. Rebuilding efforts can be costly, and frequent disasters can hinder long-term economic development. Environmental pressures can lead to internal migration, competition for resources, and increased tensions among communities. In some cases, these pressures can contribute to social unrest, conflict, and challenges to government authority.
The Sahel region in Africa is facing severe environmental pressures due to climate change, leading to desertification, droughts, and resource scarcity. These environmental challenges have exacerbated food insecurity, driven mass migration, and fueled conflicts over land and water resources. The governments in the region, already struggling with poverty and political instability, have found it difficult to manage these pressures, leading to further weakening of state capacity and social cohesion.

Michael T. Klare explores how competition for natural resources—such as oil, water, and minerals—has become a significant factor in global conflicts. Klare argues that as resources become scarcer, conflicts over them will intensify, leading to new kinds of wars and international tensions. Oil is the most vital resource in Klare's analysis, given its essential role in the global economy and military power. Control over oil reserves and supply routes, such as the Persian Gulf, has been a major driver of international tensions and conflicts. Klare discusses the Gulf Wars as examples where oil was a central factor. Iraq's invasion of Kuwait in 1990 and the subsequent U.S.-led intervention were partly driven by the desire to control oil resources and secure global energy supplies.
Water scarcity, particularly in arid regions, leads to conflicts over shared water sources like rivers and lakes. Klare highlights the Nile River, Tigris-Euphrates basin, and Jordan River as potential flashpoints where countries could engage in conflict over water access and control. As populations grow and climate change affects water availability, the competition for clean water resources intensifies. This competition can exacerbate existing political and ethnic tensions, leading to conflict.
Minerals like diamonds, copper, and rare earth elements are critical for industrial processes and military applications. The control of these resources can lead to power struggles, particularly in regions rich in minerals but plagued by weak governance. Klare discusses how mineral wealth can lead to corruption, civil war, and external intervention, a phenomenon often referred to as the 'resource curse.' The Democratic Republic of Congo is a key example, where mineral wealth has fueled ongoing conflict and attracted foreign interests.
Major powers, particularly the United States, have often intervened in resource-rich regions to secure their interests. This can lead to proxy wars, where local conflicts are exacerbated by the involvement of global powers seeking to control resources. Klare notes the increasing militarization of regions rich in resources, where military bases and interventions are justified by the need to protect access to vital resources.
As global demand for resources continues to rise, driven by population growth and economic development, the potential for conflict over these resources will likely increase. Klare predicts that resource wars will become more common and intense in the future. Countries with significant resources may adopt protectionist policies, leading to tensions with other nations that depend on those resources. This nationalism can lead to conflicts both within and between nations.
Klare's analysis suggests that as resources become scarcer and more valuable, they will increasingly be at the centre of global conflicts, making resource management and international cooperation crucial to preventing wars.

Saeid Eslamian and Faezeh Eslamian discuss how climate change is intensifying the frequency and severity of natural disasters, such as floods, droughts, and storms. They examine the science behind these changes and the implications for different regions and communities. Rising global temperatures are causing more intense storms, prolonged droughts, and unpredictable weather patterns, which can trigger disasters like floods, wildfires, and landslides. The impacts of climate change are not uniform; some regions are more vulnerable than others. For instance, coastal areas are at higher risk of sea-level rise and hurricanes, while arid regions face the threat of desertification and water scarcity. Climate change also disrupts ecosystems, leading to loss of biodiversity, which can exacerbate disaster risks. For example, deforestation increases the likelihood of landslides, while the loss of coral reefs makes coastal areas more susceptible to storm surges.
Saeid Eslamian and Faezeh Eslamian emphasize the importance of climate change adaptation in building resilience. This includes adapting existing infrastructure, developing new technologies, and creating policies that can help societies better cope with the impacts of climate change. Adaptation involves making adjustments in social, economic, and environmental practices to minimize the negative impacts of climate change. This can include changing agricultural practices, modifying water management systems, and developing climate-resilient crops. Building resilience means designing infrastructure that can withstand the impacts of climate change. For example, constructing homes on stilts in flood-prone areas or using materials that can endure extreme weather conditions. They stress the importance of building social resilience—strengthening the capacity of communities to recover from disasters. This includes promoting social cohesion, supporting vulnerable groups, and ensuring that recovery efforts are inclusive and equitable.
Effective climate change adaptation require strong governance structures that can coordinate efforts, allocate resources, and enforce regulations. Governance structures refer to the organizational frameworks and processes that guide decision-making, coordination, and resource allocation in managing disaster risks and adapting to climate change. In a centralized governance model, decision-making authority is concentrated at the national or central government level. This model often involves top-down approaches, where policies and strategies are formulated by central authorities and then implemented across the country. Centralized models can ensure uniformity in policy implementation and allow for the rapid mobilization of resources in response to disasters. They are particularly effective in countries with strong central governments and well-developed administrative systems. Centralized governance may face difficulties in addressing local needs and contexts, as decisions made at the national level may not always align with the specific conditions of different regions or communities. This model can also lead to slower responses to localized disasters if the central authority is overwhelmed or disconnected from on-the-ground realities.
Decentralized governance involves distributing decision-making authority to regional, local, or municipal governments. This model emphasizes local autonomy, with local authorities playing a significant role in designing and implementing adaptation strategies. Decentralized models are often more responsive to local needs and conditions, allowing for tailored solutions that take into account specific risks and vulnerabilities. They also encourage local ownership of DRR and CCA efforts, which can enhance community engagement and participation. Decentralization can lead to inconsistencies in policy implementation and a lack of coordination between different levels of government. It may also result in unequal resource distribution.
They underscore that no single governance model is universally superior; the effectiveness of each model depends on the specific context, including the type of disaster risk, the socio-political environment, and the resources available. The key is to tailor governance structures to fit the local context while ensuring coordination and collaboration across different levels and sectors.

In the next session, we will still talk about the Environment from the perspective of factors that weaken a nation. Biidhnillah."
Then Cattleya recited a poem,

Interwoven fates, economies entwined,
Nature’s whispers ignored, progress maligned.
As resources wane, nations falter and sway,
In the delicate balance, strength begins to decay.
Citations & References:
- Fernando Henrique Cardoso & Enzo Faletto, Dependency and Development in Latin America, 1979, University of California Press
- Oswaldo De Rivero, The Myth of Development: Non-Viable Economies and the Crisis of Civilization, 2010, Zed Books
- Dani Rodrik, The Globalization Paradox: Democracy and the Future of the World Economy, 2011, W. W. Norton
- Michael T. Klare, Resource Wars: The New Ladscape of Global Conflict, 2002, Owl Books
- Saeid Eslamian & Faezeh Eslamian (Eds.), Disaster Risk Reduction for Resilience: Climate Change and Disaster Risk Adaptation, 2023, Springer