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Press Release Collective Research Network (JeRK) The Urgency of Re-contextualizing WTO and Agriculture into the Post-Crisis

Consolidation Project of Neoliberal-Capitalism

On 3-6 December 2013, Indonesia will host the prestigious event for international trade, namely the 9th Ministerial Conference of the World Trade Organization (WTO). With the exotic ambience of the land of the gods and goddesses, the warm weather and the hospitality of the people in Bali, the meeting is fervently hoped, especially by the government of Indonesia, to result in some agreements on the main agenda of negotiation (Bali Package), which includes three major issues, ranging from trade facilitation, agricultural package, to LDCs package. Alongside with the continuous waves of protest to the so-called neoliberal institution, collective Research Network (Jaringan Riset KolektifJeRK) considers that a critical position urgently needs to be taken related to this. Unfortunately, almost all passing criticism on the ground from academics, activists, practitioners and government is miss-targeted. In general, existing criticisms rests on three concerns. First, some critics emerged from the concern on Indonesias readiness in dealing with the integration to the global trade; second, from the fear of the threat of WTO to national sovereignty; third, from the anxiety towards the WTO serving the interest of foreign companies in exploiting any kind of valuable sources in developing countries (the South Countries). From a different critical position, JeRK put the WTO MC9 in the context of systemic restructuring of the global neoliberal capitalism order in the post 2008 financial Crisis. In this framework, every gesture of the WTO, in the form of agendas, agreements, programs, statements, etc., is imperative to be seen as efforts in renewing and updating the global system of global-scale profit accumulation which was severely hit by the Crisis. An in-depth study conducted by JeRK shows that todays most dominant system of profit accumulation being the one in the financial sector (rather than the real sector). This kind of accumulation system is supported by the U.S. monetary hegemony, based on the astronomical level of credit liquidity of dollar flowing in through many kinds of financial products (especially derivatives). Under this condition, the financial power of the U.S. monetary hegemony serves as the bloods in ensuring the dynamics of operation and circulation of the real global economy (production and consumption), which result in the so-called "the Rise of the South phenomena (Human Development Report 2012). The Rise of the South, as the prevalent narratives in the post-Crisis global economy has it, unfortunately, is situated in this logical scenario of the American monetary hegemony. The 2008 crisis raises the awareness on the importance of the real economics; the sustainability and the continuity of the profit accumulation in the financial sector is proven unable to move forward without the firm foundation from the real sector. The real sector is then being promoted through various measures of donor policy and trade facilitation. What is astonishing, the issue of development is the motor which accelerates the real sector. Development that once was socially oriented, now it is contaminated with long-term profit aspirations. This acceleration of the real sector is precisely what marks the new motif of post-Crisis trading system: real trade is strongly empowered solely for sake of the continuation of the circulation of real economy, which solely being the foundation of financial accumulation. We call this post-Crisis re-structuring project as sustainable trade.

For JeRK, the ascent of the sustainable trade paradigm is symptomatic for a trade model that bases itself to the circulation, rather than direct exchange. In this paradigm of circulation, there are two forms of trading that are interlinked to one another: the circulation of goods and services, and the financial circulation. The first circulation (goods and services) is known as the global production network (GPN) and/or the global value chain (GVC). The WTOs emphasis on GPN / GVC in promoting international trade, particularly through the Aid for Trade program, clearly indicates this restructuring process. Since the circulation requires networking, so the smooth circulation in this network becomes a major concern of WTO: that is to remove the entire barriers in the circuit. This is exactly where the criticism about trade facilitation must be addressed. Agricultural issues are important to highlight not only because they concern the global food supply for the mankind, but also because its status has been transformed to the paradigm of sustainable trade. Agriculture is the most important sector to alleviate poverty, while poverty is one of the obstacles in the smooth circulation in the production network. The more people in developing countries are prospering, the stronger production network will be consolidated. It is for this very purpose, the WTO and the World Bank bring together donors for the development of agricultural projects under the rhetoric of poverty alienation program. Secondly, with regard to financial circulation, we only need to look at the frenzy activity of securities trading in many financial centers throughout the world, especially in the U.S. The most extreme example is the total derivative trade that reached U.S. $ 1,160 billion in 2012, or 20 times the total GDP of all countries in the world. This clearly shows how the paradigm of circulation in financial economics has become dominant in todays economy. In order to maintain this status quo of accumulation system, the empowerment of real sector is being strengthened. In addition to GPN/GVC, global development projects today rely on banking mediation through many loan schemes, from hedge fund to micro-credit (namely micro-finance). In similar vein with international donors, everything is done through intermediary institutions, which are banking. This phenomenon is what we call as the financialization of development. Both of these phenomena, namely the GPN/GVC and the financialization of development, according to our critical analysis, also require a power relation that is capable of disciplining and subjugating the whole world under the trade circulation forever. Through the GPN/GVC, the whole world is rendered helpless and reliant forever to the circuit of global production networks, so as to make us think that should we not participate in the network, we would perish. Through financialization of development, the entire world is forever put under the logic of debt, which renders all mankind indebted and forever lives for reimbursing their debt. Therefore, the problem is never simply about mismanagement and misimplementation of spending the loan. We must see deeper on how the eternal indebtedness becomes the one that renders all mankind docile and subservient to keep lubricating the global economic system, namely the neoliberal capitalism. The role and function of the state is undergoing a transformation. The State that is long believed as the provider of prosperity and security for the people, as being on the side of the people now clearly unveils its original character that is one being at the service of the market-capitalism. Through development programs, the State revealingly assumes the role of corporation to restore the labor value of all human races in all manner of prosperity. We could say that global corporations outsource their task in empowering the people, as workers, to the State. Furthermore, through development programs, global capitalist system tries to reinstate the state sovereignty to, then, strengthen its capacity in building the

society. This is why the quarrel over the discourse of the threat to sovereignty by the WTO" becomes severely obsolete and irrelevant and must be reconsidered. The spatial organization in the network which is animated through these financial flush helps changing the global geopolitical imagination. The world is now viewed as interlinked, connected, and networked. Each and every disconnection will soon be seen as a threat, and will soon be "secured" by the world police. The imagination of the connected-space thus has a slight dose of imperial aspiration since it tries to subjugate the entire world into network, by any means (persuasion or coercion), by any jargons (democracy or even counter-terror). This power management, which tends to be characterized as devilish, needs a mask of universalism. Thus the very role of legal institution is directed to this purpose. The institutional design of plurilateralism of the WTO, which allows partial agreement to run without having to wait for all members to agree, must be seen as an attempt to ensure the production network flows without protectionists barriers. In addition, the Dispute Settlement Body which in our findings contains many ambiguous clauses must be seen as a legal way to grant access to the powerful countries to barge in through many exceptional measures at any time needed. Therefore, JeRK calls for that: 1. A reorientation is highly urgent to undertake in our way of seeing todays crisis, namely the global-scale crisis of profit accumulation in neoliberal capitalism. 2. An objective diagnosis and understanding of the contemporary neoliberal capitalist order must be asserted as the absolute basis for the resistance and the formulation of the coming alternative system. Otherwise, the sweat, tear and blood of the struggle, will serve only as a lubricant for the sustainability of neoliberal-capitalist order which always requires exploitation and expropriation. Alternative forms of life shall only be born from the bleak prison of imagination that is arranged, engineered and made possible in the totality of the neoliberal-capitalist order. 3. 4. 5. Strengthening the State is never a solution to get out of the problem, since ironically it is precisely the sole prerequisite for the successful consolidation of the post-crisis system. We need to place all forms of agreements and programs upheld by the WTO as an attempt of a political node to maintain, organize and strengthen the neoliberal capitalist order. We need to place issues, agreements and programs in the food and agriculture sector which is the main focus at the WTO MC 9 in Bali, December 2013, as the movement of the political node WTO in networking, enchaining, designing, and seizing food and agriculture sector, as the real sector, to sustain the neoliberal-capitalist order. 6. In a time when the neoliberal capitalist order operates by gripping the totality of human life, so todays resistance must take place in every aspect of life, regardless of social class, profession, race and every box of forms-of-life that are created and engineered in this order. 7. For this purpose, the resistance to the WTO must be placed as a part of the total resistance to the totality of the global neoliberal-capitalist order. Contact : Niken Anjar Wulan Manager of JeRK (0888 978 0904 ; niken.anjar@gmail.com)

JeRK network of researchers: Hizkia Yosie Polimpung, PACIVIS Universitas Indonesia Dodi Mantra, Aliansi Pemuda Pekerja Indonesia (APPI) Prasojo, Universitas Al Azhar Indonesia Rengga Dina Permana, Universitas Al Azhar Indonesia Niken Anjar Wulan, Universitas Paramadina Bramantya Basuki, University of Nottingham Mita Yesyca, University of Bristol Azis Rahmani, Universitas Indonesia Adi Mulia Pradana, Universitas Gadjah Mada Yesaya Hardyanto, Universitas Airlangga R. Afian Azhiim, Universitas Al Azhar Indonesia M. Haripin, Lembaga Ilmu Pengetahuan Indonesia Gema R. Bastari, Universitas Paramadina Rafika Diana, Universitas Al Azhar Indonesia Justria Arum, Universitas Al Azhar Indonesia Lia Armalia, Universitas Al Azhar Indonesia Nur Aini Wilinsen, Universitas Al Azhar Indonesia Irna Gantini Kusumah, Universitas Al Azhar Indonesia Adinda Caesarany, Universitas Paramadina Nahdlatur Rosyidah, Universitas Paramadina Khairunissa Adjani, Universitas Paramadina Nuril Hakikiyah, Universitas Paramadina Mita Gustrianti, Universitas Paramadina Nadia Dwi Fortuna, Universitas Paramadina Sony Irawan, Universitas Budi Luhur Safira Randolph, Universitas Indonesia Melissya Debora Sitopu, Universitas Indonesia Morentalisa Hutapea, Institute for Environment, Sustainability and Regeneration (IESR) Regit Ageng Sulistyo, Aliansi Pemuda Pekerja Indonesia (APPI)

Partners: Rhino Ariefiansyah, SciencesPo Paris Imam Ardhianto, cole des Hautes tudes en Sciences Sociales, Paris Hestu Prahara, cole des Hautes tudes en Sciences Sociales, Paris Fitri Bintang Timur, S. Rajaratnam School of International Studies, Singapore

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