Embedded Liberalism

      Globalization has opened the doors to the interaction of and economic as well as cultural integration among domestic and oversea markets. Following WWII, many states implemented free-market systems that resulted in greatly increasing their productivity, subsequently creating innumerable modern opportunities for international trade. As result of free-market systems and globalization, many underdeveloped states have gained the opportunity to enter the global market. However, while the expansion of international markets through globalization has increased economic prosperity, the unilateralism approach has allowed transnational corporations of dominant states to expand their market productivity. Consequently, I agree with Rawi Abdelal and John G. Ruggie assertion in  “The Principles of Embedded Liberalism: Social Legitimacy and Global Capitalism,” that there is a necessity to renew embedded liberalism and revitalize global governance to monitor transnational corporation activity specifically related to main standards in labor and human rights.

            The idea of embedded liberalism appears inapplicable because powerful states assert their dominance over international markets while smaller states narrowly exercise attention let alone power in these markets. Subsequently, markets have steered away from the notion of multilateral markets, to a unilateral system. The large expansion of GM soy harvesting in Paraguay is a prime example. Currently, Paraguay stands globally as the sixth producer and the fourth leading exporter of genetically modified soybeans. The high demand for soybeans has increased the monopolization of land in Paraguay by foreign firms. According to the documentary “Paraguay: Soya and Pesticides,” 2% of the landowners control 80% of the land in Paraguay, many of which are foreign owners/corporations. These economies of developing countries, such as Paraguay are receiving a boost, but at a detrimental cost to their local markets and communities.

Moreover, the increase harvest of soybeans is not only displacing families from their lands in order to keep up with market demands, but the increase use of pesticide to aid the harvest is poisoning communities. Although for some in Paraguay GM soybeans equate a lucrative golden harvest, to others it represents a death symbol. Up until the landmark case of 11yr old Silvino Talavara, the deaths of many children in Paraguay that resulted from pesticide poisoning were classified as a cause of  “malnourishment.” However, justice for the Talavera family was delayed. Only after years of campaigning, would an autopsy be carried out to present the true cause of death of Silvino Talavera before a judge. Furthermore, as the story of Silvino Talavera surfaced, so does the concern for communities that surround the “green gold” harvest, who have little power against large agricultural corporations.

The main principle of embedded liberalism is to “legitimatize international markets by reconciling them to social values and shared institutionalize practices.” (Abdelal and Ruggie, 153) This principle suggests the necessity to “to balance, both domestically and internationally, the benefits of internationalized financial markets with their substantial risks; to share the rewards and costs of the disruptions created by internationalized markets across national societies.” (Abdelal and Ruggie, 153) However, the lack of balance between internationalized markets and the local communities they affect is evident in the unequal relationship international markets share with less developed states. As mentioned by Rawi Abdelal and John G. Ruggie, it would seem that dominant states and by extension, transnational corporations have adopted Thrasymachean justice—“the strong define right from wrong, and the weak must live with the results.” (160) This unilateralist approach is ephemeral because of the damage it causes, such as the disturbance of communities and subsequently the violation of human right.

Thus, in order to have a prosperous international market while upholding standards of human rights, it is imperative that embedded liberalism and multilateralism coexist. Consequently, I agree with Abdelal and Ruggie proposed solutions to revive embedded liberalism. The first one is to have organizations such as IMF and UN mediate between states to yield multilateral solutions in regard to the international market. Furthermore, as Abdelal and Ruggie indicate that although multilateral solutions “require more compromises, are longer-lasting arrangements.”  (160) The second solution is that the voting weight of leading international organization alter, “to reflect economic realties of the 21^st century,” to limit the voting weight of dominate states such as United States and that of European countries. (Abdelal and Ruggie,160)

Finally, this new era of globalization has been beneficial to many countries, with respect to increasing economic growth and potency. Furthermore, globalization and international trade has raised living standard and increased opportunities that might not have been available previously for certain communities. Yet, due to the lack of embedded liberalism, many multinational corporations seize resources of developing countries for lucrative purposes and destroy their communities. For this reason, embedded liberalism must be enabled to live up to it core principles.