March 4, 2044
The Day that Changed the World
GLOBALIZATION

On page 15 of Dangerous Voyage to Alpha Centauri TV-reporter Lou-ni had a vehement discussion with her friend Tim about disastrous effects of globalization:

Globalization allowed cheap production at every corner of the world. To enlarge or to keep commercial and political power it was important for global trusts to control or own resources for raw materials... Immense material wealth and influence had been accumulated on the heads of a few economical powers.
The majority of world population accepted their fate. People had learned that their living conditions deteriorated whenever they opposed or even when they were unwilling to bear their fate.

If you say, dear reader, that this is mere fantasy, read what a well known and serious newspaper had researched with care. You will learn that it is not all fiction what I described but sad reality. Please read what I picked up from the Frankfurter Allgemeine Zeitung, Sept 8, 1999:  

“After the collapse of the Soviet-Union private investors were welcomed in the countries which had gained independence. Kazakhstan is one of these states of the former Soviet Union.

In August 1996, local investors of Kazakhstan and business-men from Trans-World-Group gained mining shares of enterprises in the production of iron, chrome and aluminum. They promised to invest in the production sites to raise productivity. The cooperation was promising but after one year, in fall 1997, the Kazak government became impatient because neither any dividend nor any tax had been delivered by the mining companies. Although the production had reached a high level and mining products had already been sold on the world market, no revenue had been received so far.

So the Kazak government filed a law suit at the Supreme Court of Kazakhstan against Trans-World. The court’s proceedings ended in a disaster for the investors. The Supreme Court ruled that all contracts and installments between the mining companies and Trans-World were null and void. Also, Trans-World was summoned to return all shares it had gained in the mining industries to the government.

It wasn’t evident who by name the investors were. But there was the president of Trans-World, David Reuben. He returned the law suit in filing a complaint against the Kazak government from the British Virgin Islands, a tax oasis in the Caribbean. These small islands are populated by a little more than twenty-two thousand and six hundred people. But there are more than four hundred thousand companies registered in this appendix of the British Crown. From these islands Reuben claimed that his Trans-World-Group had done nothing but the good to the Kazak people. He said that his company organized the investment of seven hundred and fifty million dollars and vehemently opposed the decision of the High Court of Kazakhstan.

“They want to defraud my company of the investments we have done in energy and metal-producing industries”, ran his story.

The Kazak investors published a different view of this affair.

They said that within a short period of time Trans-World succeeded in controlling all Kazak mining industries and, moreover, the complete Russian aluminum production. Trans-World occupied all key positions with people of their own choice. Then all products had been sold on the world market to trading companies which were narrowly related to Trans-World. This was done without prior information of the local Kazak investors. They also pointed out that the price for all these raw materials had been far below world market level.

Then, having bought the products, the trading companies had sold the products to brokers of the London Stock Exchange who were also narrowly connected to Trans-World. The Kazak investors claimed that the brokers had gained huge profits due to the enormous difference between purchase and selling prices.

The profits were transferred to United Global Bank. The president of this bank is Simon Reuben, a brother of Trans World’s David Reuben.

According information from Kazakhstan the Kazak mines were highly dependent on logistic services which Trans-World would offer in shipping of all raw materials. Even these shipping companies were controlled by Trans-World. The shipping services had to be pre-paid by the mining industries ninety days in advance. When the mining industries got on the verge of liquidation by these indecent methods of business they did rely on credits which were granted to them by United Global Bank with annual rate of interest of twenty-four. They were threatened to pay an additional 1 % per day if they couldn’t repay their debt in time, the Kazak investors said.

No wonder that the Kazak government was terribly frightened because twenty percent of the Gross Domestic Product of Kazakhstan depended on the enterprises Trans-World was involved in. More than one hundred thousand people were working in these industries. To avoid further trouble Trans-World literally was kicked out of the country by the Kazak government.

It took some years for the Kazak industries to recover from the disaster with the Trans World Group. But the industries noticed that products from Kazakhstan and Russia could no longer be sold on the world market. Internationally working shipping companies were afraid of transporting goods from Kazakhstan. In circles of world investors Kazakhstan was regarded as unreliable. It didn’t receive credits on the world market any more.

The rate of jobless people increased in this country that disposed of numerous resources in energy and used to have a flourishing metal industry. Confronted to unaccustomed unemployment the discontent with the government increased and was intensified by privately owned media.”

More about globalization you can read in my thrilling novel, you can order here: ORDER

Further reading:

Frankfurter Allgemeine Zeitung, September 8, 1999