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Let us compare the emergence of the global information economy with the two previous waves of globalization :
The first wave was after slaves, previous metals and lands for raising export crops; the second wave was after new investment acquisitions, sources of raw materials and labor, and industrial markets. The third wave is after sources of mental labor, sources of information raw materials, and markets for information products. This is why the WTO pushed very hard to conclude as soon as possible the agreements on information technology, telecommunications and financial services.
The third wave requires freer movement of information across national boundaries. This has helped erode further the power of the State. While the State itself operated corporate monopolies during the first wave, and continued to be dominant over corporations during the second wave, it is finding itself less powerful during the third wave. Global corporations are now assuming the dominant role in the State-corporate partnership, in close collaboration with supra-national institutions like the International Monetary Fund (IMF), the World Bank (WB) and the WTO.
As in the first two waves, the extraction of wealth from the rest of the world is likewise done under a mask that hides real intentions. The third wave hides behind such phrases as "information at your finger tips", "world without borders", "global village", instant access to the world's libraries", "free flow of information", or "TV with a million channels."
Behind the mask, the global information economy imposes its own global rule to facilitate the wealth transfer. The role of the nation-state shrinks, many of its functions taken over by private corporations. Global corporations continue to strengthen their political voice and clout, and directly enter into partnerships with local elites and local governments, often bypassing the host government as well as their own government. Corporate control of information, communications, and media infrastructures is strengthened through privatization and deregulation. National sovereignty is further curtailed by supra-national institutions like the IMF, WB, and the WTO.
In addition to the earlier forms of wealth extraction practised during the first and second waves, new forms emerge or old forms acquire new importance. Monopoly rents become the main form of wealth extraction. Royalties from IPRs and other income from information rents assume major significance. Because of the huge disparity in costs, trade between information economies and other economies become even more unequal. Compare, for instance, a CD ROM which might sell for three hundred dollars, but is produced for around three dollars, to a typical Philippine product like sugar, which might sell for fifteen cents per pound. Much of the three hundred dollars in the price of 2,000 pounds of sugar would barely cover production costs, while much of the three hundred dollars in the price of a CD ROM would be profit. Technology also makes possible high-speed, finely-tuned financial speculation. As the importance of the nation-state recedes and national currencies buffeted by devaluation and other woes, corporations are able to purchase State assets and public properties at bargain prices.
New technologies of exploitation are introduced. First wave technologies were designed for the immediate plunder of our natural resources and human communities. Second wave technologies were based on material exploitation and intensive energy utilization. Third wave technologies are invariably information-based, centered on extracting the highest monopoly rents from the control of information infrastructure or information content. The best example of a technology that is at the leading edge of the third wave of globalization is the Internet. Advanced information and communications technologies make possible the convergence of media, entertainment, data, and communications. The application of information technology to genetic engineering and biotechnologies has transformed these fields into fertile areas for information monopolies, best illustrated by the patenting of life forms.
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http://www.corpwatch.org/article.php?id=1569