dilemmas of domination

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A BOOK REVIEW ON the American empire project

DILEMMAS OF DOMINATION: the unmaking of the American empire

By Walden Bello

Reviewed by

Itsna Syahadatud Dinurriyah1

INTRODUCTION

The book ofDilemmas of Domination: The Unmaking of the American

Empire was written by Walden Bello, a Filipino who graduated from the secondgreatest university in America, Princeton University. He was a professor of

sociology at University of the Philippines. He is a famous critic of the current

model of economic globalization, combining the roles of intellectual and activist.

He has made a major contribution to the international case against corporate-

driven globalization.

In this book, it is so clear how he sees the idea, the application and the

impact of globalization introduced by America to the third world countries in

different point of view. He did not care what people think about him but he had

his own idea in reviewing what the major countries did to the third world

countries and how they got the revenge and the turning point. His critical

thinking made him been sent to jail. He was arrested and jailed by the US

authorities in 1978 for leading the non-violent takeover of the Philippine consulate

in San Francisco. He was released three weeks later after a hunger strike to

publicize human rights abuses in his home country.

This book was written in 2005, when the President of USA was GeorgeWalker Bush. In 2005, Bush got the second period of his leadership after he

defeated Al Gore. Even though the policy that Bush made in the early of his

presidency was not exactly the same like what Bill Clinton did, but I think there

were parts of it which was the impact of the Clintons policy. So some parts of this

book also talked about Clintons policy even George Bush Srs.

1 A student of American Studies, Gadjah Mada University, Indonesia

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This book is focused on the interrelated dilemmas of imperial economics

and imperial politics. Bello wrote there are three crises threaten the empire, they

are: a crisis of overproduction, a crisis of overextension, and a crisis of

legitimacy.

The crisis of overproduction happened when US transnational corporation

functions as the agents for capital accumulation and production. This condition

created four other crisis, they are the contradiction between the increased

consumption of natural resources and the production of waste and finite ecological

space, the more intense conflict between the minority in command of productive

and financial assets and a majority with the little control over these, the widening

gap between the growing productive potential of the system and the capacity ofthe consumers to purchase its output, and the global financial speculation as

overproduction, overcapacity, and over accumulation.

Meanwhile overextension will show an international system marked by

anarchy, states are driven to maintain or extend their strategic reach. In this case,

US as one of wealthy nations tend to develop a grand strategy, or a fundamental

approach toward the world. The drive to extend the states strategic reach may run

up against the resources available for achieving its ambitions.

The crisis of legitimacy happened when the subordinate classes disbelieve

to the dominant elites. In western capitalist societies, the enhancement of

individual freedom and economic mobility through the operation of the market

and democratic representative serves as the ideological cornerstone of legitimacy.

So America as country which brings democratic idea to any countries in the world

to broaden its kindness will get the effect of it since the subordinate counties

may criticize it when they found the inappropriate practice in it.

THE REVIEW

Reading this book is like reading a history of world politics and economy.

This book gives the readers much information what happened to the world beyond

the surface. It is not only talking about America and how it did its way of

imperialism to certain countries but it is also telling us how America tried to make

all countries around the world depend on this immigrant country in the name of

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democratization and globalization. I am also as Indonesian finally understand

what happened in Jakarta when I and my college friends, a decade ago, went on

strike on the street. Finally I understand that making Suharto gave up from the

presidency was not enough since we also had to think about the impact of the

policy he has taken. Then, finally also I understand why Indonesian economy

must go to surgery room for recovery and took a long comma before its

consciousness.

In this book, Bello tells us a lot about American policy since America was

under the president of George Walker Bush. No wonder since this book written in

2005. Even though what had Bush done in the first period in his presidency

(2000-2004) was not satisfied many people, I mean his own country domesticallyand internationally, but Americans could not do much to choose the other

candidate ( Al Gore) since what had Bush done internationally had to be

solved/finished. Of course what I mean is American invasion to Iraq. It was not

the only one but it is the most important one.

America was too nave by applyingpre-emptive action to Iraq in the name

of terrorism. By its rhetoric, America said that Saddam Hussein protected Osama

bin Laden in this country. Everybody around the world know well, what is the

relationship between Osama bin Laden and Saddam Hussein? When finally

America could not prove it, the policy to invade this Middle East country was still

done because of the reason of mass destruction weapon hidden by the President of

Iraq. Again, could America prove it? What for Saddam Hussein hide the weapon?

Without that weapon Iraq was successful in invading Kuwait a decade ago. But

that is America, it is never wrong or at least never confess its mistake or even sin.

So, I do agree with what Bello said in his book that America did it for its

economic better that it politics. America did not only need to use its domesticweapon product but the important thing is how to get the oil. The invasion in

which no countries in world could prevent or protest it made America entered and

bombarded Iraq seemed legally. And then after that, everybody knew that this

highly pride country went mess and nothing could be covered politically. America

was successful open any political secret of this country. That was the end of

Saddam Hussein regime. And finally with a big smile America could sovereign

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this country even though in smooth way. No leadership over taking but hundreds

of American soldiers is there, in the name of keeping Iraq peace. Who made the

war?

In this case, America really shows its super power. An overstretched

military was the most obvious symbol of imperial overextension. Besides the

reason of oil, the invasion to Iraq, actually, was to satisfy the need for the

revenge against terrorism for the losses of September 11. This tragedy really

made America embarrassed. Two important buildings such as World Trade Center

and Pentagon were successfully destructed by Al Qaeda. It was the first time

America attacked inside of the country and so obvious. Even though there was no

relationship between Al Qaeda and Iraq, but America did not have any idea towhat country it should express its anger, then, let Iraq became the victim! At least,

this country and its citizens are strong enough to face America. Thus, I am

thinking that America needs balance sparring partner to show its sovereignty.

The third chapter of this book talks about the crisis of overproduction and

over capacity underlying the stagnation that has overtaken most of the central

capitalist economies. The real barrier of capitalist production is capital itselfthat

was Karl Marx said. America also had the problem that at the time happened to all

other central capitalist economies. The historic dilemma consists of certain salient

features:

Speculative finance has replaced industrial and manufacturing activity as

the primary source of profitability.

China has entered the world market and plays role in aggravating the crisis

of ever production. Before this China was known as isolated country.

The recession in the central economies and the phenomenon of anemic,

jobless growth in US suggest that the global economy is at the tail of thefifty year wave of capitalist expansion and decline. So, every capitalist

country must realize that its economy stability is only for fifty year, then it

must ready with the decline.

Finance capital emerged as the dynamo of both the US and the global

economies. In one hand, financial institutions represent the chief source of

corporate funding because the power grow while the leverage of manufacturing

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and other industrial corporation correspondingly diminished. But in the other

hand, financial transactions and speculative activity become the chief source of

profit. Finance capital has gutted the regulations constraining its activities within

the US and other center economies. Of course the impact of it comes to the global

economy since America applies globalization.

In the next chapter, Bello reveals the way financial speculation

increasingly drives global economic activity. In the name of globalization and

democratization, US introduced global economy to the third world countries. For

those that need finance capital, US introduced World Bank, IMF and WTO. There

are some key features of contemporary, they are:

The flow of private capital to the South increased dramatically

The commercial banks pulled back from international lending

The roles of the banks in raising fund was eclipsed by securitization of

the transfer of capital through the sale of stock and bonds increasingly

raised money by selling equity or certificates redeemable in the future at

fixed interest rates.

There was an explosion in both old and new activities and financial

instruments

A great many transaction were increasingly hard to monitor because they

were made over the counter, not on the floor of an exchange but among a

few parties communicating by telephone and computer

America did this speculation mostly to those developing counties such as

South America and Asia. This speculation did not help them much. Like in

Mexico, this country could not get out from the crisis. The global economy aids

made this country came into another crisis. Some Asian countries refused the aids

after learning the policy carefully even though some often could not run awayfrom the trap including Indonesia, while in some other country like Argentina,

this policy did not make betterment in this country. The economy of this

developing country became bad after global economy influence which introduced

by America. So the speculation of liberation of finance capital promised economic

development, but unfortunately it has delivered severe instantly.

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Then, institutions like the U.S.-backed IMF, WTO, and World Bank lose

their legitimacy. Bello says that these world financial giants, which claim to offer

development models for the Third World, have instead delivered severe

instability. Instead of helping poor countries to advance, these financial despots

have disciplined and re-subordinated the developing countries in the interests of

the United States and other center economies.

We realize it or not, this program is actually anti-development. Those

institutions do not help the development of those countries economy but worsen

it. WTO, for instance, serve not much to promote global trade. It was made for

America which primarily served the interest of the US. World Bank and IMF also

had a lot of reason when the third world countries blame them; such as when theeconomy crisis happened in Philippine, they denied the impact of the increasing

price of oil to this countrys economy by saying the price increase was not due to

the agreement on agriculture, and besides there was never any agreement anyway

on who would be responsible for providing the assistance. What a hell!

May be people do not know that at the World Bank, US share is 17.6

percent, somewhat above critical 15 percent it needs to exercise a veto over major

lending decision. And at IMF, Washington controls 19 percent of the vote, above

15 percent necessary for vetoing vital policy and budgetary decisions.

And may be US and those institutions do not realize that their program

made the number of people who live in poverty has dramatically increased as well

from 130 million in 1980 to 180 million in 1990. But, I do not know that their

campaign of this economy liberalism is always in the name of the poor. Is it so?

If any country won, it was Brazil. To the surprise of many, Washington

agreed to the Brazilian compromise a few weeks before Miami. It apparently had

no choice. According to one participant, that would have been a high-profilesetback the Bush administration could ill afford facing an election. So, it was

really private, Bush did it in the name of himself, not for his own country. I think

the collapse in Cancun and problem in Miami demonstrated the limits of US

hegemony and revealed how unilateralist economic diplomacy might backfire.

The in last chapter, Bello reveals the crisis of legitimacy. It describes the

empires profound ideological dilemma. Who will believe any longer in American

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promise of democracy that has accompanied the drive for economic expansion

and strategic expansion? For American citizens it is important that the imperial

process be made to seem consistent with the democratic values. It is in the sense

that US is an imperial democracy. But unfortunately the practice was not as good

as the theory.

As a Filipino who involved much in Philippines economic development,

Bello starts the crisis from his own country. In 1900-1946 US brought its troops to

Philippine by the classic solution: prepare the Filipinos for responsible

independence, of course, by exporting the institutions of American democracy. By

the time of independence, in 1946, the Philippine political system was a mirror of

the American. It included a presidency, the separation of powers and a two-partysystem. Later on it would bring Philippine to the Peoples Power Revolution in

1986 during Marcos regime. Perhaps, the Philippine experience had the greatest

impact on the American political psyche: what happened in the Philippines

reconciled the drive for US strategic and economic expansion with Americas

democratic mission.

The next victim, Bello mentions as the second one is Latin America. In a

poll conducted by the UNDP in 2004, 54.7% of Latin Americans said they would

support authoritarian governments over democracy if the shift would solve their

economic problems. Unfortunately, the reversal of the third wave of

democratization loomed as a threat.

Then in South Asia, especially in Pakistan, the problem of democracy

came to reality. General Pervez Musharaf successfully ended Prime Minister

Nawaz Sharifs eleven years of unstable democracy. Of course, it was not purely

Pakistanis army did that. There must be America interfere in it by its CIA and

Pentagon.Internationally, democracy and in the name of globalization introduced by

America did not work well. Those countries finally quite understand imperial

purpose inside of the ideology. Unfortunately, it also happened inside of the

country, something was rotten back home in the US. Democracy showed

symptoms of decay in its self-proclaimed homeland. The influence of powerful

interest groups, which the Washington style electoral competition

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institutionalized, reached massive proportions. Americans finally recognize that

their liberal democracy had been so thoroughly corrupted by corporate money that

it might better be described as a plutocracy. The American people believe that they

have no real control over the government but the one thing that they do not realize

is that the politicians have no control either. Shortly, Bush was successful being

the leader of an imperial democracy. It seemed that it turned into anarchy.

CONCLUSION

America must accept the impact of its will to dominate through the world.

May be its first purpose is to sustain Bretton Wood, in which it becomes the

leader. But then this condition has driven it into a challenge especially since theend of Cold War. It becomes the only one super power country in which,

seemingly, many countries depend on it or pushed to be depended on it. America

always tries to help the poor countries to be developed, including their

international affair and internal political matter such as the governance system.

One thing about America, as long as the regime is beneficial for it, it will help the

regime to stay long.

Unfortunately, the good will of America did not run well. Many poor

countries fell down to the deeper hole by this policy. America did not help

anything. Some of them finally realize that American will continue to decline

economically because the global framework for transnational capitalist

cooperation to which the WTO in central is eroding. Bilateral and regional trade

arrangements are likely to proliferate.

For this and other reasons, Bello sees the collapse of U.S. empire as a

blessing and an opportunity. He wants empire to fail, for the Third World's sake as

well as for America's. The collapse of American empire is a precondition for thereemergence of a democratic republic. That was the American promise before it

was hijacked by imperial democracy.

THE CRITIC

This book was written by outsider of America in which his country had

been imperialized by America in modern way since long time before it got its own

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independency. But it does not mean he knows nothing about this super country

because he had spent long time there not only for studying but also for criticizing

the international affair of American policy especially under Bush leadership to

some developing countries.

He reveals a part of world history in post modern era in which economy

becomes the biggest matter. He criticizes all things America did especially to the

third world countries. It seems open worlds eyes about the decay America has. It

is true.

But may be Bello forgot that we live in the era in which all people need

being large. I mean although without American policy about democracy and

globalization, all countries will do it. Slowly but sure, America is just the triggerto make it faster. No country will be able to live by itself. We need each other.

There must be a benefit in a loss. No matter what the name it is; monopoly,

hegemony, or globalization but the effect of it the development of some countries

such as in technology and education can be seen. They realized that they must

develop their own country and must be critical to all aids before they accept them.

Unfortunately also this book was written in 2005. I just imagine if this

book was written in 2008, proudly Bello would show to the world what he had

predicted about global crisis became true; and he also would laugh loudly when he

saw America was very busy inviting many countries to solve that problem under

Barrack Obama presidency.

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