In the course of time, tbe combination of these elements has produced a "client state" of international capital that will do nothing to offend it and most things to attract it. Hence, globalisation affects polictics, not only the level of political alliances and support of dubious military adventures, but also on the level of the political activities of trade unions and their leaders. It should also be emphasised that globalisation affects the politics of trade union governance.

The dominant fractions of capital seek out potential trade union leaders who can be moulded into minimal hostility to the interest capital. They are offered overseas trips and suitable training courses, often a prestigious universities, as well as connections with local "safe" trade union leaders. The American labour attachè in Melbourne was believed to be a past master of the art of picking and supporting future labour leaders who might also become influential politicians.
This globalistion effect of politics, political parties and trade unions should not be underestimated.

Where it operates successfully, as in France, Greece, the U.K, New Zealand and Australia, the governments initially hostile to world capitalism can be emasculated. EquaIIy powerful is the "intertnational demonstration effect" of how to deal with unions, roll back the welfare state and privatise the public sector, in the strongholds of capitalism such as the U.S, the U.K and Japan. There is always plenty of advice available from multi- national companies or consultants with plenty of experience in union bashing, or privatising the public sector; always, of course, for a substantial fee Australia is awash with them at the moment.

Irrespective of whatever government is in power, over the last fifteen years Australia has seen: an acceleration of globalisation: the stagnation of real wages; a substantial shift in the share of national income going to capital; a significant increase in unemployment; high rates of income and wealth. The last few years have brought, in addition, attacks on trade unions by capital and the state; contraction of the public sector, the beginnings of privatisation; and a rapidly escalating foreign debt.

In Europe, the central bankers' Bank of International Settlements is prophesying financial disaster unless the financial system is better controlled.

In this climate of opinion, the time is ripe for the union movement to press hard for changes in policy. I suggest four areas for starters.

The first is to restore full employment as a policy goal; the social costs of permanent high un-employnent are far too great, especial in a multicultural society.
Second, significant re-regulation of the financial system to ensure that more resources flow in to the public sector and to prevent a recurrence of the orgy of speculation, swindling and cheating. More money must flow from the Corn monwealth to the states; it was thrinancial starvation of the states whict gave rise to the Bonds and Skases and the other con-men of the 1980's.
Third, there must be adequate industrial policies designed for particular industries, which involve tong-term plans, long-term finance, govenimment purchases where possible. technoiogical development, and mutually agreed productive industrial relations.
Fourth, there should only be free trade with countries which have free trade unions. otherwise our workers will be competing with slave labour, and the only way to win that competition is to be a slave yourself.
If Australia is to build a nation of many cultures with social justice for all, those in power in Canberra must be forced to change their minds. Now is a good time to try.

The current world depression
A conjuncture of events has caused this: expansion of uncontrolled world capitalism accumulating at an unprecedented rate, financed by a de-regulated and corrupt system of money creation, using powerful labour-destroying technology which penetrates into every sector of the economy; the consequent increase in unemployment and reduction in purchasing power across the world; the resulting indebtedness which cannot really be repaid: the end of the cold war and consequent disarmament; and the collapse of communism in Eastern Europe and the U.S.S.R. which has an acute destabilising effect on key world markets such as those for gold, oil and wool.

This is an unprecedented situation in the history of world capitalism, which is giving rise to splits in the ruling class, with dangerous tendencies towards new forms of fascism as in the U.S.A., Western and Eastern Europe and the former U.S.S.R. As economic systems break down, capitalist or communist society breaks down, as in some U.S. cities (e.g. Los Angeles 1992) and increasingly elsewhere. Migration increases as people try to escape. such as the "boat people" or Asia coming to Australia. North Africans coming to Europe, Hispanics moving into the U.S.A., and the East Germans moving into western Europe. The U.S.A. was the engine of growth for North America, but by November 1991 it had lost 1.7 million jobs. Jobs are still being lost at 4,000 a day, covering all sectors from cars to retailing and finance.

Canada has had a 4% drop in production and unemployment is 10.6% - officially - but in reality much higher, like most countries.
In Europe, the economics of most countries are depressed. Germany is no longer the locomotive of growth and is itself officially in recession, partly because of bailing out Eastern Europe.German banks hold a quarter of the Soviet Union's foreign debt. If it defaults they will be in big trouble.
Britain is one of the worste places, with over 10% unemployment, which is hitting the rich south east corner for the first time in decades. Every day 200 houses are repossessed because the owners cannot pay the mortgages.

The great Japanese bubble of 1985-9 was the last and most impressive display of the power of the cartel - run and government manipulated Japanese financial system. For good or bad, that system has now come to an end.

The present climate for policy change
As a result of what has been happening to the world economy of the last few years, it is not surprising that the ruling policy of deregulation of everything that moves, dictated by economic rationalism around the world, is coming under attack even from sources on the right. For example, a British newspaper ran an article by an American who argued that the British right-wing journal,The Economist, had far too much influence in America, and was written by "yuppie economists fresh out of school", with little knowledge of the real world.

And even that journal had to admit that financial deregulation of exchange rates around the world had been a dreadful mistake and called for significant re-regulation. The Japanese have been pressing the World Bank to acknowledge that select government intervention can promote economic development as in East Asia.