Commanding Heights: The New Rules of the Game by Greg Barker - Movie Review Example

Commanding Heights: The New Rules of the Game “The New Rules of the Game” is the 3rd episode of the Commanding Heights series. The episode analyzes the rapid development of the modern global economy from the early 1990s to the present. While evaluating the pros and cons of the new economy in the last three decades, the documentary revolves around the major stories such as the US President Clinton’s free trade favoring policies, the global economic crisis of the late 1990s, and the aggressive debates over the effects of globalization that first appeared in the Seattle protests (Kofaeconomics). The film also discusses issues such as the overall effects of free trade and open economy on the developing nations and the United States, the potential risks related with the globalized economies, and the most crucial challenge in the future, i.e., to bring the poor economies of the world into the main flow of global economic developments (Kofaeconomics). The film basically confronts the major concerns of the US over the globalization and effects of interconnected economics on one another. The documentary is filmed in five major continents. Also, the effective narrative has combined with the sensational video footages of the thrilling stories and classic interviews of global leaders and experts from more than 20 countries, including former Soviet Union President Mikhail Gorbachev, former Mexican President Vicente Fox, former US President Bill Clinton, the US Supreme Court Justice Stephan Breyar, and many other leading figures in political and economical sectors (Kofaeconomics). The episode perfectly illustrates the major global economic issues that have determined the growth and fate of countries and shows how the intense competition in global economy will affect the course of 21st century. The purpose of this paper is to summarize the “New Rules of the Game”. The episode starts with the highly debated question in recent years, i.e., whether terrorism is another side of globalization. According to the statements of Bill Clinton, the major challenge in the 21st century is to balance the today’s interconnected world on the basis of positive aspects of global economy to ensure the prosperity of everyone and eliminate the growing threat of international and domestic terrorism (Kofaeconomics). The era of 1990s caused the new revolution of globalized economy, i.e., a single trade market in which everyone has their own shares and interests, but not a single organization or nation has full control over it. Globalization sparked in the early 1990s after the end of the Gulf crisis and the Cold War. In this era, investments, trades, culture, ideas, and people began to move all over the world. As globalization began to bring prosperity in an exceptional rate, powerful nations like, the United States realized the importance of free market economy. Despite the attacks of 9/11, George Bush, the US President at that time, emphasized on adopting open trade policies and claimed that when countries in the world will adopt open economy, they will always find the US as their friend, investor, and trading partner (Kofaeconomics). Free, open trade is the basic aspect of capitalism for more than 200 years, but today’s American emphasize on open market has roots in the economic crises of 1990s when the US was reluctant about the massive effects of globalization. In 1992, the US economy was struggling due to growing foreign competition in major economical sectors. Over 11 million workers were unemployed in the US due to economic recession. During the presidential campaigns, Bill Clinton assured the protection to US workers from global competition and gained massive support of labor unions in the US (Kofaeconomics). However, in the meeting with the Wall Street investors, Clinton showed his support to major demands of financial market to adopt free trade policies. According to Robert Rubin, former US Secretary of the Treasury, agenda of free trade policies was contradictory to the agenda of labor rights’ protection which was highly promoted by Clinton during the presidential campaigns (Kofaeconomics). During the time, the US was in debt of almost $4 trillion. NAFTA, i.e., the North American Free Trade Agreement, became a political issue in the US during presidential campaign of 1992 (Kofaeconomics). The treaty would allow unlimited flow of investments and trades between Mexico, the United States, and Canada. Presidential candidate, Ross Perot was against such treaty, while George Bush was in support of it. Bill Clinton chose the middle path and claimed that with the right balance between free trade policies and protection of labors’ rights, it would be possible to bring the US economy back to its former glory. Soon, the bill for NAFTA was passed in the senate with the support of Republican Party (Kofaeconomics). Many US firms began to establish their factories in the Northern Mexico after the legislation of NAFTA and export their goods in the US market. Over 1 million people in Mexico found the employment. Many citizens like, Maria Isabel who was living in southern part of Mexico and working as a teacher on low wages, left their jobs and began to migrate to north for better job opportunities and to improve their living standards (Kofaeconomics). Implementation of NAFTA and open economy significantly benefited Mexico. But, companies in the US became more aggressive and began to threat to shift their plants to Mexico in case their demands such as low wages, restrictions on labor unions wouldn’t fulfill. In other words, NAFTA relived one’s economy and raised balance power issue in other country. According to the statement of narrator, it is the significant example which reveals two faces of global economy (Kofaeconomics). After the end of the Cold War era, many countries adopted free trade policies. Funds like the California Public Employees Retirement System (CalPERS) even hired finance managers to maximize the investment opportunities in the developing countries (Kofaeconomics). Considering the benefits of free trade policies, the Clinton administration adopted aggressive economic policies, encouraging developing countries to embrace open economy. However, some found open economy as a threat to their independence. In the interview, former Malaysian Prime Minister, Mahathir Bin Mohamad, claimed that open trade policies would encourage capitalism in the world. In this system, there would be less control to the government over its country’s economy as people wouldn’t be restricted with their investments and businesses (Kofaeconomics). But, According to Narayana Murthey, CEO and founder of Infosys Technology, globalization and open economies allowed the consumers to enjoy affordable goods and services from various available options without worrying about national boundaries. Globalization created healthy competitive market. He further stated that globalization allowed him to develop his computer software company into one of the largest software companies in the world (Kofaeconomics). Today, almost 30% of world’s software engineers are Indian. Today, Silicon Valley hires high-tech professional from all over the world. In other words, the term ‘global village’ has evolved rapidly due to fast communication and transport sources and globalization (Kofaeconomics). China, which was once restricted to foreign investments, adopted new economic policies that lifted over 350 million Chinese people from poverty (Kofaeconomics). In the mid-1990s, many Asian countries except Japan were enjoying the economic growth with extraordinary rate of 10% or more per year. Due its close economy and reluctance to adapt to ongoing changes in global economy, Japanese economy was suffering with over $1 trillion of debt (Kofaeconomics). With the growing economic boom in south-eastern Asia, businessmen like Sirivat Voravetvuthikun were thinking that the boom would never end (Kofaeconomics). In Thailand, many people were blindly investing money in real-estate and lavish condominiums to get quick profits. Foreign banks were offering loans on low-interests which even encouraged people to invest randomly. However, considering the deficiencies in banking system and trade laws In Thailand, the International Monetary Fund recognized the potential threat of economic crisis (Kofaeconomics). In 1997, Thailand hit by economic crisis which soon spread all over south-east Asia. The US ignored the economic crisis in Thailand as it was a small economy with low foreign connections. But, the US misjudged the situation as the crisis soon hit major economies like, Korea, Singapore, Russia, Brazil, reaching to the door of the US (Kofaeconomics). The economic crisis of late 1990s gave rise to global debate over efficiency of global economy and the role of the US. According to Lori Wallach, a director of Global Trade Watch, the Asian economic crisis raised doubt among people about open economy and associated instability with it (Kofaeconomics). The anxiety of people was begun to utilize by critics like, Lori Wallach to promote anti-globalization movements. During the presidential campaigns in 1999, Clinton’s free market policies were highly criticized as Democratic part was seeking labor unions’ support (Kofaeconomics). Though globalization isn’t solely responsible for global poverty, it raised serious question about how global market will benefit the third world countries like, Peru, Tanzania, and most of the African countries (Kofaeconomics). Free trade policies of the US were further adopted by Bush administration. In 2001, the US President George Bush and Mexican President Vicente Fox met in the Quebec City summit to discuss the agenda of free trade, reducing poverty, and new commanding policies in global economy (Kofaeconomics). After the attacks of 9/11, the US intensified its war against international terrorism. Experts agree on the fact that the process of globalization can’t be reversed, but growth of global economy can be diverted. In order to secure the interests of everyone in global economy, there is a strong requirement of peace and stability in the global societies (Kofaeconomics). In conclusion, “The New Rules of the Game” is extraordinary documentary which has effectively analyzed various aspects of global economy. Though globalization and free trade economy have brought massive wealth in most of the countries, the financial risks associated with it can’t be ignored. In today’s interconnected world, the crisis in one part of the world can rapidly spread in other parts of the world. It is necessary to reform the structure and policies of international organizations to control global economy and implement programs and policies that would encourage active involvement of third world countries in global economy and ensure the protection of their interest too. Works Cited Kofaeconomics. “Commanding Heights P3 New Rules of the Game.” Online video clip. YouTube. YouTube, 31 Mar. 2012. Web. 24 Oct. 2012. Read More