The Hindu Business Line : Greed leads to global ruin

Adam Smith observed that human beings, however selfish they may be, always have the natural instinct to help humanity in distress. He said the accumulation of wealth through free market economy would lead to poverty alleviation across the world. But Adam Smith's free market economy benefits continue to elude the poor nations. Rather it has been replaced by a grossly manipulative market economy that only seems to worsen human greed.

Economy of scale compels the manufacturer to sell his mass produced goods by any means. In the bargain, the producer causes irreparable damage to a number of sustainable economic activities interwoven with age-old culture and practices of people.

Manipulative market economy causes income disparities and serious ecological imbalances, the cost of which is several times more than the revenue generated for the nation. Aided by powerful governments, it wreaks havoc on the developing nations, which are forced to buy goods they do not need, pushing them deep into debt. After that the nation will be given humanitarian aid. What is the use if you burn people's house and pour sympathy on them by allowing them to stay in a tent?

Economic negation

The ideology of accumulating wealth and power and then going for philanthropic work is an economic negation, which is being pursued aggressively by the developed nations. Leaders of powerful nations behave as if only they can change the destinies of the developing nations.

Yet, they will not give such countries advanced technologies beneficial for their people, without driving a hard bargain.

The wealth ultimately accumulates on the ruins of natural resources and loss of hundreds of eco-friendly products across the developing world. In fact, an aggressive industrial sector growth destroys the agri-eco system, ethnic culture and bio-diversity. For example, the industries alongside the Ganga has polluted its waters, seriously affecting important sectors such as fishery, pilgrimage-tourism, and agriculture. The Government is left a massive financial burden of cleaning up the river, the lifeline of North India.

Asian Brown Haze

A recent scientific study found that an Asian Brown Haze, a three-km cloud of acids, aerosols and other harmful elements across South-East Asia threatens economic growth of this region. The haze could damage agriculture, obstruct sunlight, desertify land, change rainfall patterns and cause many other problems. This is the result of emissions, by motor vehicles, industries, power stations, etc.

In 2005, the world witnessed a series of natural calamities, which caused widespread death and destruction. Seven natural disasters in India caused an estimated loss of Rs 87,500 crore in 2005. Mr Salvano Briceno, Head of the United Nation's International Strategy for Disaster Reduction, said more than 200 million people are affected every year by disasters. In fact, the self-dependent retail sector people, farmers, artisans and the poor landless labourers are the worst affected by the natural disasters.

Inbuilt mechanism

The eco-system has an inbuilt mechanism to prevent natural disasters as well as many diseases.

According to a WTO report, "Eco system and human well being — Health Synthesis 2005," forest clearance fire in Indonesia has led to the emergence of the Nipah virus. Bats transferred it to farm pigs in Malaysia and through them to man.

The greed-driven market economy first destroys the ecosystem, then creates the disease and then prompts advanced nations to sell vaccines to developing countries at a huge cost.

It is reported that the degradation of fisheries and agro ecosystem has caused malnutrition among 800 million people around the world.

Treasure trove of knowledge

The developing world is the treasure trove of knowledge and techniques to harness natural resources without disturbing the ecological balance.

In the developing nations, people know the cure for many common diseases using simple herbs.

They know how to make innumerable biodegradable handicraft items for their daily needs. They used to extract from the land a wide range of edible herbs and plants, which met their nutritional and medicinal needs.

But colonisation changed all that. The colonisers not only exploited the natural resources of the nations, they also destroyed the food and nutrition cycle as they treated their new colonies as laboratories for business ventures.

Today, the neo-colonisers are compelling the developing nations to risk their ecosystem in the pursuit for a bigger market share.

Manipulative market economy creates a world of traders, a lifeless society and an endless pursuit of wealth and power, which can only lead to global ruin.

(The author is a Pune-based freelance writer.)