Glossary

Commodification — Turning what is normally a non-commodity into a commodity. Assigning economic value to something that traditionally would not be considered in economic terms, for example, persons valued only according to the work they are able and/or forced to do or nature valued only according to its consumer use-value.

Conditionality — is a concept in international development, political economy and international relations and describes the use of conditions attached to a loan, debt relief, bilateral aid or membership of international organizations, typically by the international financial institutions, regional organizations or donor countries. Conditionality is typically employed by the International Monetary Fund, the World Bank or a donor country with respect to loans, debt relief and financial aid. Conditionalities may involve relatively uncontroversial requirements to enhance aid effectiveness, such as anti-corruption measures, but they may involve highly controversial ones, such as austerity or the privatization of key public services, which may provoke strong political opposition in the recipient country. These conditionalities are often grouped under the label structural adjustment as they were prominent in the structural adjustment programs following the debt crisis of the 1980s.

Deregulation — The process by which governments remove, reduce or simplify restrictions on business and individuals with the intent of encouraging the efficient operation of markets. Regulations that provided protections to low-income people, farmers, local businesses, the environment or other groups are often lost after deregulation.

Empire — The convergence of economic, political, cultural, geographic and military imperial interests, systems and networks for the purpose of amassing political power and economic wealth. Empire typically forces and facilitates the flow of wealth and power from vulnerable persons, communities and countries to the more powerful. The Bible is full of stories of empires rising, over-extending and falling. Empire today crosses all boundaries, strips and reconstructs identities, subverts cultures, subordinates nation states and can marginalize or co-opt religious communities.

International Monetary Fund (IMF) — The international organization entrusted with overseeing the global financial system by monitoring exchange rates and balance of payments, as well as offering technical and financial assistance when asked. Many IMF policies have proven to be destructive of the people and economies of countries in the global South.

Liberalization — Liberalization is a relaxation of previous government regulations and protections which often occurs along with privatization. Liberalized and privatized public services may be dominated by just a few big companies, particularly in sectors with high capital costs, or high sunk cost, such as water, gas and electricity.

Neoliberalism/Neoliberal economics — In its dominant international use, neoliberalism refers to a political-economic philosophy that de-emphasizes or rejects government or other intervention in the economy; it would allow the market to operate without restraints or protections. In the U.S. and Canadian contexts neoliberal economics is more aligned with conservative and neoconservative political views than with liberal ones. Neoliberal economics focuses on free-market methods, fewer restrictions on business operations and property rights, rather than human rights. It promotes the market as the primary engine of human economic activity, emphasizing competition and growth and upholding individual self-interest over the common good. Neoliberal economic policies include privatization of services such as education, water and health care; deregulation which often results in reduced rights and protections for workers and the environment; reductions in government spending on social programs, such as education, and erosions in the safety net for the poor; the free flow of investments, products and jobs (but typically not persons) across national borders without restraint; and increased trade.

Privatization — The process of transforming property, businesses or natural resources (e.g., water) from public ownership or trust to private ownership and/or transferring the management of a service or activity from the government to the private sector. Corporate profits, not the good of the community or country, become the overriding concern.

World Bank — Part of a group of financial institutions, the World Bank focuses on the reduction of global poverty and seeks to achieve this through the provision of low- or no-interest loans and grants to countries with little or no access to international credit markets. The World Bank (as a financial institution) also seeks to safeguard its own financial interests and has been criticized by non-governmental organizations (NGOs), governments, people’s groups and citizens for its structural adjustment programs (SAPs) which attempt to implement neo-liberal economic policies (i.e., deregulation and privatization) in the countries where the World Bank operates.

World Trade Organization (WTO) — The successor to the General Agreement on Tariffs and Trade (GATT), the WTO deals with the rules of trade between nations at a near-global level; it is responsible for negotiating and implementing new trade agreements and is in charge of policing member countries’ adherence to all the WTO agreements, signed by the bulk of the world’s trading nations and ratified in their parliaments. The structure of the WTO allows the interests of the major industrialized countries of the global North to dominate the processes and agreements.