The Congress Party got the message, which was why as soon as it took office it chose as its prime minister not some antiglobalizer but Manmohan Singh, the former Indian finance minister, who in 1991 first opened the Indian economy to globalization, placing an emphasis on exports and trade and reform wholesale. And Singh, in turn, pledged himself to vastly increase government investments in rural infrastructure and to bring more reform retail to rural government.
How can outsiders collaborate in this process? I think, first and foremost, they can redefine the meaning of global populism. If populists really want to help the rural poor, the way to do it is not by burning down McDonald's and shutting down the IMF and trying to put up protectionist barriers that will unflatten the world. That will help the rural poor not one iota. It has to be by refocusing the energies of the global populist movement on how to improve local government, infrastructure, and education in places like rural India and China, so the populations there can acquire the tools to collaborate and participate in the flat world. The global populist movement, better known as the antiglobalization movement, has a great deal of energy, but up to now it has been too divided and confused to effectively help the poor in any meaningful or sustained manner. It needs a policy lobotomy. The world's poor do not resent the rich anywhere nearly as much as the left-wing parties in the developed world imagine. What they resent is not having any pathway to get rich and to join the flat world and cross that line into the middle class that Jerry Yang spoke about.
Let's pause for a minute here and trace how the antiglobalization movement lost touch with the true aspirations of the world's poor. The antiglobalization movement emerged at the World Trade Organization conference in Seattle in 1999 and then spread around the world in subsequent years, usually gathering to attack meetings of the World Bank, the IMF, and the G-8 industrialized nations. From its origins, the movement that emerged in Seattle was a primarily Western-driven phenomenon, which was why you saw so few people of color in the crowds. It was driven by five disparate forces. One was upper-middle-class American liberal guilt at the incredible wealth and power that America had amassed in the wake of the fall of the Berlin Wall and the dot-com boom. At the peak of the stock market boom, lots of pampered American college kids, wearing their branded clothing, began to get interested in sweatshops as a way of expiating their guilt. The second force driving it was a rear-guard push by the Old Left-socialists, anarchists, and Trotskyites-in alliance with protectionist trade unions. Their strategy was to piggyback on rising concerns about globalization to bring back some form of socialism, even though these ideas had been rejected as bankrupt by the very people in the former Soviet Empire and China who had lived under them longest. (Now you know why there was no antiglobalization movement to speak of in Russia, China, or Eastern Europe.) These Old Left forces wanted to spark a debate about whether we globalize. They claimed to speak in the name of the Third World poor, but the bankrupt economic policies they advocated made them, in my view, the Coalition to Keep Poor People Poor. The third force was a more amorphous group. It was made up of many people who gave passive support to the antiglobalization movement from many countries, because they saw in it some kind of protest against the speed at which the old world was disappearing and becoming flat.
The fourth force driving the movement, which was particularly strong in Europe and in the Islamic world, was anti-Americanism. The disparity between American economic and political power and everybody else's had grown so wide after the fall of the Soviet Empire that America began to-or was perceived to-touch people's lives around the planet, directly or indirectly, more than their own governments did. As people around the world began to intuit this, a movement emerged, which Seattle both reflected and helped to catalyze, whereby people said, in effect, “If America is now touching my life directly or indirectly more than my own government, then I want to have a vote in America's power.” At the time of Seattle, the “touching” that people were most concerned with was from American economic and cultural power, and therefore the demand for a vote tended to focus around economic rule-making institutions like the World Trade Organization. America in the 1990s, under President Clinton, was perceived as a big dumb dragon, pushing people around in the economic and cultural spheres, knowingly and unknowingly. We were Puff the Magic Dragon, and people wanted a vote in what we were puffing.