Saturday, July 7, 2007

Vanuatu and Globalization: Avoidance or Adaptation?

While browsing through the Internet, I came across a very interesting story about a tiny island nation-state called "Vanuatu." The headline of the story which read, Is Vanuatu really the 'happiest' nation on earth? , initially led me to assume that the video segment consisted of an exploration into socio-economic conditions and crime rates. As I watched this joint ABC News/BBC News clip, however, I began to wonder if a more profound theme was struck here---one that would add to increasingly raging debates and controversies surrounding Globalization. In fact, and especially pertaining to a question at the end of the segment (along the long lines of "how long could Vanuatu's 'happiness' last?"), I began to come up with another, perhaps more accurate, headline for the story/video piece: "Vanuatu and Globalization: A Unique Experiment in Avoidance or Adaptation?"

The crucial basis behind my artificially-created headline is initimately connected to the ups and downs of Globalizations and their implications for the Developing World. Despite the general increase of global wealth and standard of living overall (the world economy taken altogether) and notwithstanding the disparate individual (and seemingly limited) cases structural adjustment and other economic reform initiatives, there can be no illusions that gaps between the Developed and Developing worlds have increased. These stark inequalities would encourage developing countries to attempt to develop an alternative to the international trading system and to the global economy, if they all lived in an ideal world and if theory could be easily translated to practice. But such alternative attempts, such as import substitution, have faired misrably and have achieved very little in relation to expectations. On the other hand, what else could they achieve through the present trading and economic systems to bring hope, curb violence, ensure positive and substantial social, economic, and political reform?

So what will become of Vanuatu's "struggle to fend off modernization"? According to the beginning part of the news segment, one crucial part of this nation's 'happiness' goes back to its attachment to "strong traditions." Which brings another theme to mind: how will such traditions deal with the classically-argued "homogenization" that Globalization supposedly brings to the international community and leads (especially) newly emerging/industrializing markets as well various other parts of the Developing world towards an "Americanization/Westernization." One other crucial question/theme/aspect of Globalization deals with currency transactions, which according to the news segment has particularly significant implications for Vanuatu's future because of its insistence on using, and attempting to pressure the international community towards recognizing, a unique currency system that uses pig tusks and other locally-valuable materials instead of paper bills and metal coinage. This system has its own conversion and evaluation methods, a reality which would understandably make it hard for international/Western lending institutions, stock exchanges, development organizations and corporations, currency exchanges, and other financial and development institutions to utilize, let alone recognize.

On the other hand, the "struggle to fend off modernization" could be approached from an entirely different angle of the country's self-implied right to embark on its own path of "self determination." Taken in this light, maybe then its experimentation is not so much an "avoidance" of modernization and globalization than a way of "adapting" to them. After all, the news segment reports that this experimentation is already helping the natives to take steps towards increasing living standards (however clearly that is yet to be defined by "modern" standards) in the midst of what could seem to outsiders as abject poverty. If this is the case, we could ask conversely if the status-quo of modernization and globalization (as they now stand) could "adapt" to the seemingly improving socio-economic conditions and advancements of Vanuatu? Could Vanuatu's experiment be replicated with at least some success in other parts of the Developing world and to what extent?

The use of non-monetary currency has a long history and enormous geographic reach. For example, alongside the use of coins minted by the Romans (and later,) the Arabs, there existed a trans-Saharan parallel system of exchange where such coinage often did not account for much. In this system, Arab traders north of the Sahara would often trade their salt for gold and ivory from African kingdoms and tribal areas immediately south of the Sahel, and vice-versa. It was a mutually beneficial exchange in the viewpoint of both parties, because the salt was as valuable to those African traders as gold, ivory, other precious materials were to their Arab counterparts. That such an exchange worked for a relatively long period with a relatively considerable extensive reach shows its viability in international and regional trading systems. And there were perhaps countless other examples in human history that could be compared to the trans-Saharan trading system. Keeping this mind, what prospects could Vanuatu's domestic trading and economic systems provide for their international and regional counterparts and vice-versa? And though we may be tempted to view the question of "how long it can last?" as a negative rhetorical exclamation, perhaps we can with the thought, "it is still too early to pass a conclusive verdict."

The skeptics will say, "but we're living in the post-industrial, post-service, and information( and communication)-driven global economy." As this group will point out, the fast-pace system, with features like money wire transfers and instantaneous global web-based trade and exchanges, is rightly something that also can neither be taken lightly nor denied. Tools like email that were a mere extra convenience a little more than a decade ago are standard and necessary equipment today. Even though Vanuatu's currency system of pig tusks includes the ability to carry out mortgage payments, take out loans, and pay for ordinary everyday expenses, a considerable lack of communication technology can provide a serious impediment to "modern" economic expansion and development. For example, according to the latest estimates provided by the CIA's World Factbook (2007), a small number consisting of 7,500 internet users [2004]--accounting for less than 1 percent of the population [211,971, July 2007]--are serviced by an even smaller number of internet hosts [413, 2006]. Using 2004 and 2005 estimates for telephone use, and the population estimate for 2007, the total percentage of phone users--both cellular and mainline--account for slightly less than 1 percent of the total population. Given these statistics, the outlook appears grim as communication access is impeded both domestically and internationally.

In all fairness, though, the only conclusion left is to expect a lot of uncertainty. Despite what outsiders may see frustrating and detrementally slow progress or even debilitating regression based in rejection of things "modern," residents Vanuatu may have mixed feelings of fear and anxiety combined with real hope, joy, and acceptance. The clash, co-existence, or complimentarianism, of the these two different worldviews will lead their proponents back to problems over the meanings and characteristics of globalization and modernization. And such problems cannot be resolved in the forseeable future, perhaps not for a long time to come.