Wealth of the Nations

"Neither their silver nor their gold shall be able to deliver them in the day of the Lord’s wrath." —Zephaniah 1.18.

Leonard Griehs

The beginning of 1998 finds the world in unprecedented growth and prosperity. The world today is experiencing a comparable flow of capital to that before World War I. A federal reserve spokesman noted that the billions of dollars that move from country to country today is almost as big—compared to the size of the economies involved—as the immense flow of money among countries before 1914. Economists predict that the third world countries will reduce the economic dominance of the Western world considerably. Globalization is a reality of our time.

With the demise of the superpower confrontation, commercial interaction has become the significant force that shapes the relations between nations today. Since the end of World War II, the proportion of trade as a percentage of global income has risen from seven percent to 21 percent. In the United States, trade income now accounts for about one-fourth of gross domestic product.

The economic interdependence of nations is a trend that began soon after World War II. Recent advances in communication and transportation have accelerated the process at a record pace. Countries see "globalization" as their salvation. Over the past forty years, the world has experienced a 15-fold increase in trading volume between nations. This is one of the reasons for the rising standard of living around the world. At today’s projected rate, the world production and transport of goods and services will double in the next 20 years.

At the heart of this growth is the relatively new World Trade Organization. It emerged in April 1994, following the ratification of the General Agreement on Tariffs and Trade. This was one of the most significant treaties of our time. It is commonly recognized by both businessmen and politicians as the most ambitious trade agreement since that incorporated into the Marshall Plan of 1947, and it enhances the common economic interests of the world. Over 125 nations now participate.

In The Battle of Armageddon (1897), Charles T. Russell suggested that the fall of socialism (communism) would lead to an opening up of the world in unprecedented ways prior to the onset of anarchy. He suggested eight world-wide events that would trigger universal dissatisfaction: 1. Technology would so enhance the ability of the nations to increase their output that manual labor would take a diminished role; 2. this would lead to a common level all over the world and an equal status among nations; 3. no government would be able to legislate wages and profits because the sources of capital would seek the most profitable areas of the world in which to do business; 4. this would lead to a change in the economic levels of all people throughout the world; 5. the interests of trade would follow wars between nations; 6. distress and division of the nations would build upon the economics of supply and demand for the world’s goods; 7. selfish pressure among the nations will grow stronger and demand will increase until a collapse occurs; 8.the conditions will be universal and the momentum will be beyond human power to regulate.

This is an apt description of our own day! Let us briefly survey the economic world to see this fulfillment.

Significant Changes in Economic Structure

With the flow of funds around the world to pay for trade, foreign exchange reserves are becoming more important. Local currencies must be convertible to reserve currencies on demand. Governments are under increasing pressure from each other to maintain stable economies. Standards for spending and deficits are being dictated by investing countries.

This is a significant change from the pre-World War II days, when the gold standard dictated the price of currencies. Countries or individuals with large gold reserves could manipulate values. Today, the stability or instability of currencies is being driven by worldwide forces. World currencies are linked to each other in ways never before known. The demand for conformity dictates participation in world trade markets. As Robert Rubin, Secretary of the Treasury said, "This is not the old days where there are three rich market manipulators in a back room threatening to pull the pin. Now it is everyone."

The financial world has become global. The outflow of confidence in one country triggers the outflow of investment in others that may be in trouble. Over the past 10 years, nearly $2 trillion has been invested in growing countries. These country’s policies are continually subject to international review. As such, "foreign policy" no longer counts for much.

The Desire For Wealth Worldwide

Technology has created instant global communication. This has helped reduce the importance of the nation state. The whole world is pushing towards economic liberalization and equality. People that were suppressed and oppressed now see their opportunity in success and wealth. Battles between nations seem less important than trade between nations. Capitalism is fast becoming a world-wide phenomenon. People are quite willing to compromise their ideals, social principles, and religious beliefs to achieve economic freedom and wealth.

The 1997 example of Albania illustrates how this desire can lead to chaos and anarchy. In early 1992, Albanians were close to starvation. Agriculture and industry were in collapse. Albanians, desperate for relief, began to flee across the Adriatic sea to Italy or Europe. The post-communist regime pulled the country back through harsh economic reforms. Both the International Monetary Fund and the World Bank poured in aid from other countries.

Then a fraudulent financial scheme promised quick economic gain. Out of a nation of 3.2 million, several hundred thousand invested in the scheme and saw their life savings disappear. One-third of the gross domestic product disappeared. In a country where the average monthly wage is $60, hundreds of millions of dollars vanished, plunging the nation back into poverty. This was followed by a wave of violent unrest which resulted in the deployment of government troops. Anarchy threatened to undermine the entire stability of the Balkan region. What began as a desire for financial equality erupted in social, financial, and political disaster. Yet the Albanians were not as upset with people dying as much as they were with losing their money!

Selfishness Continues to Drive Man

Despite great financial gains in the past year, the world’s economic inequality has continued to widen, producing greater unrest among the masses of people. Technological advances and global economic integration have caused a widening disparity between the educated and the uneducated. Those well trained are rewarded; those poorly educated and poorly skilled are being discarded.

Economic Instability

Prior to World War I, England was an imperial power. It would move its forces around the world and fight to protect its interests. Today, there is no imperial power. No one nation is able to prevent other nations from crushing each other. What was once a medium of exchange, money, has now become the fundamental value of the world. Unsure of values, people put their faith in it as the criterion for value. This has created great social and economic unrest.

All over the world, people have declared government intervention as the ultimate evil. The worldwide movement of funds is allowing wealth to accumulate in the hands of a few owners, creating huge disparities in the social standing. The world is fast becoming its pre-World War I counterpart.

Where Will It Lead?

In Ezekiel 38, we find the description of a worldwide confederacy going against the newly regathered nation of Israel. Some of those mentioned are the Scythians, Persians, Ethiopians, and the merchants. Apparently, commercialism is one of the principle reasons for the invasion into the land. This chapter depicts more than a pure militaristic motive in the invasion against Israel. It depicts a united front against Israel "to take a spoil, to take a prey" (vs. 12).

To understand this, we must look beyond the minor battles we see today in the Holy Land. There are far greater issues at stake that become more meaningful as we survey today’s economic world. A commercial offensive aimed at Israel’s economic position is apparently one of the major reasons for the attack in Ezekiel 38.

Israel today is gaining increased importance in world trade. The unusual influx of Russian immigrants has given Israel world expertise in advanced materials and technology. It is becoming a powerful, prosperous democracy. The modern Arab world fights because it is still struggling to gain a foothold in the free-market system opening up around the globe.

The land of Israel is the only country in the world where we have seen the social forces reversed by immigration. Over 750,000 refugees from Russia have brought a high technology capability that will soon be unsurpassed in the world. For the first time, Israel has financed economic growth by issuing government bonds in Japan. Boycotts are being abolished. Israel is now recognized as a good place to do business. Joint ventures are being formed by many nations in this new economy. For the first time in its 50 year history, foreign investment is becoming significant. Israel is the only country that has a relative advantage over other nations in that almost its entire workforce is highly educated.

What causes the sudden turn of events that brings the nations against the prosperous Israel? The scriptures are not clear on this point. However, the events of our day certainly suggest that economically motivated issues are a real possibility.

The World Today

Today’s world is no longer driven by ideology. It is not good versus evil. Today, economics drives the world. The clash between the haves and the have-nots continues to build in places such as Albania and Africa. Albania is a prime example of the disruption of the social order that this can cause.

The end of our century will be highly unpredictable. Haggai 2:7 says, "I will shake all nations and the desire of all nations shall come." That shaking will involve a total change in society. We are beginning to witness it in our day. Let us be strong and endure. God’s promises are true. " . . . I will make the place of my feet glorious" (Isaiah 60.13).