Hot Money- 'How Free Market Fundamentalism Helped Heat The Planet'

'Hot Money: How Free Market Fundamentalism Helped Overheat The Planet' by Naomi Klein

For my extended reading I chose to read the second chapter of Naomi Klein's book 'This Changes Everything- Capitalism vs Climate'. The chapter is called 'Hot Money' and explores themes of world trade, the over consumption of western countries, and a world economic system based on exporting goods. The chapter is gripping and extremely critical of countries who prioritise trade over the protection of the climate, especially western countries. Klein essentially highlights how this is happening and provides a solution to our problems at the end of the chapter. How realistic the solution is to put in place is questionable, as quite frankly a lot of the measures she calls for are easier said than done.

Throughout the chapter Klein shows different ways in which western governments choose the evolution and expansion of trade over the protection of our environment. Over the years this has caused exponential rises in air pollution and temperature levels, all for the sake of higher levels of trade and global inter-connection. Often strong green energy programmes are challenged by world trade agreements which require certain levels of trade which green energy cannot keep up with. Green programmes are also attacked due to the fact that they promote local industry rather than global, so countries exports are reduced. Klein gives the example of a solar panel company in Toronto which has been shut down due to these reasons, but because it promotes local industry, it has been doing poorly in business due to WTO rules. Klein asks the question whether positive institutions like this should be shut down, purely so trade can trump the climate, and the planet itself. It is clear that they shouldn't be, but we often face adversity in keeping green institutions like this successful due to the fact that the world is dominated by free-market ideologies which promote capitalism and free trade. This is often linked to austerity, which stops governments from investing in low-carbon infrastructure and energy sources, as they are so overpriced compared to non-green alternatives.

Klein also raises other problems with WTO policy protecting trade, as 'developing' countries are unable to follow low-carbon 'production paths'. Like China throughout the 2000's, countries like India are facing the same problems. Considering China have contributed two thirds towards the pollution of the last 10 years, newly developing countries are likely to cause the same problems, which means we must find an alliterative solution. This is often blamed on China, but is truly down to an export-heavy trade system which is promoted by western countries. It is the result of global deregulated capitalism, which is finally taking a toll. Klein proposes that we stop consuming as much instantly, as the problems we face are not solvable in the short term. She also insists that new trade agreements must be made which promote green energy, and not isolate it with complete disregard for the planet. With both of these things in place, we will be able to slowly make our way towards a better planet for everyone. I believe Klein has the right intentions, but installing radical changes in world trade agreements will be extremely tough, as these agreements will involve private companies. These companies will be ready to sue organisations, as these new implementations will directly affect profit levels and put certain companies at an advantage. For long term changes to be made, governments from all over the world will need to be ruthless and work together to make sure that corporations and institutions all over the world are using as much renewable energy as possible, to make sure that we are treating our planet with respect, and providing a safe and healthy environment for the future.