Among the rare critics of globalization Chossudovsky has "on-site" credentials beyond his academic base. He's been on the scene of several nations subjected to International Monetary Fund and World Bank policies. He examines the results of these and other international financial agencies' policies. From Chile through Rwanda to Somlia and Korea, he shows how a new form of warfare is under way. Conquest no longer requires bullets to occupy a nation nor suppress a people. Conquerers now wield position papers, American dollars or Euros and trade impositions. Surrender agreements come in the form of "conditions" accompanying loans and investments. These dicta result in the stripping away of social programmes, alienation of subsistence farm holdings and displacement of vast numbers. These people, deprived of income, traditions and opportunity have become a new breed. They are the hopeless poor for which no amount of "aid" can provide succour.

As he demonstrates repeatedly, the mechanism is simple. The formation of the IMF gave financiers, chiefly North American, a cudgel to change governments, force farmers and pastoralists to convert to cash crop economies, and reduce or eliminate government services. The initial steps were instituted by the Bretton Woods conferences designed to restore nations devastated by World War II. Private financial institutions imposed conditions on loans granted to recovering countries. "Recovering" countries rapidly expanded into "developing" countries as these institutions recognised the value of cheap labour in them. Accepting "foreign investment" led to indebtedness difficult to repay. Defaulting was unacceptable to both borrower and lender, leading to new rounds of loans. These, however, rarely reached the borrowing nation since the new funds were set against the older debt. "Servicing the debt" meant imposition of stringent conditions, ranging from privatisation of services, amalgamation of small land holdings to produce crops to be purchased cheaply, but sold at inflated prices. The consumers of these goods are you and your neighbours.

Each of the nations Chossudovsky examines suffers the same schedule of "structural adjustment programmes" imposed by the IMF. These SAPs outline the changes a nation must endure to receive the "benefits" of globalization. Restrictions on outside investment must be eliminated, with the concomitant privatisation of state-owned facilities and services. Where workers aren't laid off, their wages are frozen or reduced. Local currencies must be adjusted to American dollars, which has the impact of intense inflation spirals almost overnight. The result is a populace under increasing pressure, marginal or famine-stricken and powerless. Civil unrest isn't an option, since disruption brings reprisals - often, of course, the withdrawal of investment, failure to renew loan guarantees or simply real military action.

Although the repetitive nature of the manipulations of the financial institutions on national sovereignty leads Chossudovsky to some redundancy, the reader should understand we are dealing with a global crisis. "Bitter medicine" and "bitter irony" recur, because the circumstances he describes are redundant. An imposing and sometimes intimidating account, he is careful to shift the responsibility to institutions rather than consumers. It is, however, the developed country consumer that provides motivation for many levels of the problem. Chossudovsky's analysis is thorough, well-founded and expressive. He shows why social unrest in "developing" countries is the result of imposed conditions, not unstable populations and environments. That he offers little in the way of solutions for the predicament the world now suffers is only testimony to the immensity of the task ahead. [stephen a. haines - Ottawa, Canada]