Chomsky made early efforts to critically analyze globalization। He summarized the process with the phrase "old wine, new bottles," maintaining that the motive of the élites is the same as always: they seek to isolate the general population from important decision-making processes, the difference being that the centers of power are now transnational corporations and supranational banks. Chomsky argues that transnational corporate power is "developing its own governing institutions" reflective of their global reach.
According to Chomsky, a primary ploy has been the co-opting of the global economic institutions established at the end of World War II, the International Monetary Fund (IMF) and the World Bank, which have increasingly adhered to the "Washington Consensus," requiring developing countries to adhere to limits on spending and make structural adjustments that often involve cutbacks in social and welfare programs. IMF aid and loans are normally contingent upon such reforms. Chomsky claims that the construction of global institutions and agreements such as the World Trade Organization, the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement (NAFTA), and the Multilateral Agreement on Investment constitute new ways of securing élite privileges while undermining democracy। Chomsky believes that these austere and neoliberal measures ensure that poorer countries merely fulfill a service role by providing cheap labor, raw materials and investment opportunities for the first world. Additionally, this means that corporations can threaten to relocate to poorer countries, and Chomsky sees this as a powerful weapon to keep workers in richer countries in line.
Chomsky takes issue with the terms used in discourse on globalization, beginning with the term "globalization" itself, which he maintains refers to a corporate-sponsored economic integration rather than being a general term for things becoming international. He dislikes the term anti-globalization being used to describe what he regards as a movement for globalization of social and environmental justice. Chomsky understands what is popularly called "free trade" as a "mixture of liberalization and protection designed by the principal architects of policy in the service of their interests, which happen to be whatever they are in any particular period." In his writings, Chomsky has drawn attention to globalization resistance movements. He described Zapatista defiance of NAFTA in his essay "The Zapatista Uprising." He also criticized the Multilateral Agreement on Investment, and reported on the activist efforts that led to its defeat. Chomsky's voice was an important part of the critics who provided the theoretical backbone for the disparate groups who united for the demonstrations against The World Trade Organization in Seattle in November of 1999.
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