Life and Debt

This documentary perfectly captures the largely-ignored downside to globalization and the subsequent domination of the world economy by the U.S. and Western Europe. Namely, that undeveloped and developing countries continue to get poorer at the expense of the rich. This documentary presents the human side for discussions about the impact of multinational corporations on human rights abuses, price fixing in order to drive local competition into failure, environmental destruction as the result of World Bank-mandated "structural adjustments," etc. This is a must see for anyone who thinks that globalization is the only way for developing countries to compete with the rest of the world, and for anyone wanting to know the reasons behind all of those protests.

This film, though somewhat simplistic and emotional (for obvious reasons), does an excellent job of conveying to a broad audience some of the negative effects of globalization on a small, developing economy like that of Jamaica. One often hears critiques of international capitalism and the lending policies of the IMF and World Bank, but in most cases the criticism lacks pertinent examples of the direct impacts of globalization, or fails to make an effective case for why we should care. This film manages to do both, by providing relevant facts (increases in national debt over time, predatory interest rates tied to 'development' loans from the World Bank, critical industries undercut by international competition, etc.), and illustrating the ground-level effects on Jamaican citizens both visually and through numerous informative interviews. The film is interspersed with scenes of oblivious American tourists enjoying their vacations at expensive Jamaican resorts safely isolated from the surrounding poverty, to highlight the developed world's ignorance about the plight of Jamaica and similar underdeveloped countries.

As a precondition for aid, the IMF and World Bank usually require that developing countries drop any significant barriers to trade. When the doors are opened to international trade, lower-priced goods from abroad undercut local goods, and eliminate the market for any industry that cannot compete with the mass production that larger economies are capable of. While opening barrier-free worldwide markets for goods and services benefits the large economies already in a position to compete on such a scale, the sudden and forced introduction of 'free' trade to underdeveloped economies often disrupts domestic industries, which are given no opportunity to transition. While the consumer market is suddenly flooded with relatively cheaper goods (cheap enough to undercut the local competition, not to benefit consumers in any way), globalization fails to provide domestic producers with the inputs and capital (fertilizer, machinery, etc.) necessary to compete with producers abroad. As a result, the economy is robbed of its traditional sources of income and capacity for self-sufficiency, instead becoming reliant on weak foreign aid and tourism as national poverty continues to increase.

This is the Jamaica the tourists see, says the narrator in Stephanie Black's documentary Life and Debt, a country of lush jungles, clear blue water, and sandy beaches. Beyond the luxury hotels, however, is a third world country fighting poverty, crime, and hopelessness. Based on the novel by Jamaica Kincaid A Small Place, Life and Debt, the film studies the effects of the policies of the International Monetary Fund (IMF) and the World Bank on the economy of Jamaica, focusing on the impact of economic globalization on the dairy farmers and factory workers. Backed by a soundtrack of native reggae music, Life and Debt is filled with economic facts that require some knowledge to fully understand. You don't need a master's degree in Economics, however, to understand the desperate faces of children in poverty, the agony of farmers who can't sell their crops, or the hopelessness of factory workers who earn the equivalent of thirty US dollars per week.

Black interviews former Prime Minister Michael Manley who explains how the current situation came to be. When Jamaica achieved its independence in 1962 after being a colony of Great Britain for 400 years, help was needed to build its economy. The International Monetary Fund (IMF) and the World Bank gladly supplied this money in the form of short-term loans. These loans though came with strings attached. Subsidies to local farmers were prohibited and tariff barriers were lowered to allow cheap foreign goods to come into the country, inevitably driving local industries out of business. What's remains is tourism, sweatshops and fast-food chains. Manley blames the big Western powers that have used Jamaica for cheap labor and easy sales. For example, thanks to huge subsidies other countries including the United States exported powdered milk to Jamaica at an excessively low price, forcing the local dairy industry to shut down. He also points out that big American businesses like Chiquita, Dole, and Del Monte have worked to stifle exports of local Jamaican bananas. Manley asks of the IMF, "You ask, 'In who's interest? I ask, 'Who set it up?"

Watching this documentary, it became clearer to me why thousands of people took to the streets in Seattle to protest the WTO Conference. It may not be widely known but the WTO has established ground rules that make it easier for the developed countries to market their products in third world countries. Under WTO rules,

1. Governments are not allowed to pass laws that favor local firms and discriminate against foreign-owned corporations.

2. Governments are not allowed to prevent foreign nationals from buying a controlling interest in local companies.

3. Governments are not allowed to subsidize domestic companies.

4. Governments are not allowed to pass laws that would provide favorable terms of trade to particular trading partners.

Ralph Nader said it all when he described globalization as being the subordination of human rights, environmental rights, and consumer rights. The International Monetary Fund, the World Bank, and the Inter-American Development Bank now own almost every facet of the Jamaican economy and the only ones that are making money are franchises like McDonalds, Wendy's, and Burger King who contribute little more than unskilled low paying service jobs. If you are thinking about asking the IMF to change its policies, keep in mind that any change in IMF policy requires an 80% approval and the richest nations such as the United States, Western Europe, Japan make up more than 80% of the vote. Life and Debt, like the recent film Bowling for Columbine, is one-sided, in your face, and may appeal only to those already in agreement. However, its images are so vivid that, for the first time, you may experience the human impact of policies that can turn the world into "one big casino".

As a documentary 'Life and Debt' has many merits one of the most apparent and significant of which is the highly imaginative and effective way that it draws a complex concept into the form of an 80 minute film. A film with so much to say necessarily risks either becoming boring or inaccessible, however Life and Debt suffers from neither of these. Ideas are treated elegantly and efficiently, and invariably illustrated with footage of entirely appropriate and often poignant examples, which in turn allows for excellent pacing. These assets allow what could have been a very dry and abstract film to instead comfortably hold the audience's interest. By way of criticism I would say that on certain occasions subtitles were probably required to render the material fully accessible to an international audience, as the accents/dialect (and cultural constructions of language) are such that the meaning of speakers is periodically unclear. But this and what other minor failings exist pale in comparison to its strengths.

I am actually waiting for this movie to become available on VHS. It would tie in perfectly with what I teach in my political economy class.

The movie clearly explains how rich countries can dominate poorer ones. It also causes one to re-think capitalism, competition and the "invisible hand."