Showing posts with label economic liberalization. Show all posts
Showing posts with label economic liberalization. Show all posts

Sunday, April 2, 2017

Nafeez Ahmed — Age of Empire

In early December 2016, the British government published its new Annual Report on the UK National Security Strategy adopted in 2015. The document was, in many ways, a blueprint for a new form of empire. In the name of defending national security, it unveiled Britain’s plan to build a “permanent” military presence in the Gulf to defend its access to “the flows of energy and trade in the region”; deploy more troops into Eastern Europe, near Russia’s border; and promote the sale of “defence equipment and services from UK-based suppliers to overseas partners and allies”.
But perhaps the most Orwellian element of the document was its celebration of Britain’s role in delivering economic aid to developing countries, to lift them from poverty. It announced that the government had set up a new £1.3 billion Prosperity Fund to enable the UK “to deepen relationships with countries across the globe”. The fund uses Official Development Assistance resources to promote “reforms” in support of “economic growth in development countries”. This will reduce poverty by creating “opportunities for international business, including UK companies”.
Critics point out that this is really just a euphemism for making the world safe for British corporations. The reforms tied to British aid fit well with neoliberal capitalist orthodoxy: privatisation, deregulation, and liberalisation of the economy to open it up to foreign investment, while lowering taxes and decreasing state spending.
As British historian and development expert Mark Curtis has shown in an extensive report for the NGO War on Want, such British overseas aid policies have done little to resolve poverty, but instead have carefully cultivated corporate power. To date, 101 mostly-British companies — like Shell, Glencore and Tullow Oil — now control over $1 trillion worth of Africa’s oil, gold, diamond, coal, and platinum....
Same primitive accumulation, expropriation and enclosure, and exploitation.
The emergence of capitalism in England, for instance, was an inherently violent and repressive process. Over 400 years ago the seeds of English capitalism were sown amidst mass evictions of peasants from public lands. Formerly landed peasants, who were compelled by threat of force to paytribute to local lords, now found themselves a landless proletariat, with no choice but to sell their labour power for wages to the same people who had robbed them. This process of enclosure gradually enforced a new social condition — the dispossession of people from access to the sources, means, and technologies of production. This was, and still is, the fundamental basis of modern capitalism.
The dispossession of land inside England accelerated in tandem with the expansion of the British Empire along similar lines. Britain’s seizure of India began with the conquest of Bengal in 1757 and continued under the East India Company for more than five decades. Once the company was displaced by the British state, expansion continued, especially into Northwest India — soon followed by the scramble for Africa, and penetration of the Middle East....
Corporate and government land grabbing from indigenous communities is now at an all time high. A study by the Washington DC-based Rights and Resources Initiative (RRI) finds that despite using and inhabiting up to 65% of the world’s land with a population of around 1.5 billion, indigenous peoples and local communities only have legal rights to 18% of it....
Weapons of Reason
Age of Empire
Nafeez Ahmed

Monday, August 10, 2015

Sunanda Sen — Turbulence and Stability in Financial Markets: China in Recent Times

Liberalisation of financial markets, as observed in different parts of the world economy, has never contributed to stability—avoiding unforeseen and unbridled movements in prices and quantities—in those markets. Discontinuation of state-level restraints, in deregulated markets, always generates an atmosphere of uncertainty, which itself has been instrumental in generating turbulence, and then leading to crises. Crises in different financial markets across the world are usually preceded by booms, fed by destabilising financial activities in opened-up markets. 
The current downslide in China’s stock markets has followed this familiar pattern, with the crash that took place between June and July 2015 foreshowed by an unprecedented boom which came with the fast pace of liberalisation in the financial sector.
Capitalism isn't all it is cracked up to be because volatility. As China is learning the hard way.

Is there really no alternative, or is the world stuck with TINA, as Margaret Thatcher famously proclaimed?
Here comes the rather unique relation between the market and the state in China, with the latter in a position to reverse the opening-up process, especially with measures designed to regulate the market.
Interestingly enough, steps as above have been labelled as “contradictions of capitalist China” in the western press and as a “dangerous game of manipulating the stock market” by Larry Summers, the former U.S. Treasury Secretary.…
In judging the current situation, the West seems reluctant to accept the philosophy of the authoritarian Chinese state which, while recognising the role of the market under globalisation, has not given up the role of the state as in a command economy. The turmoil in China’s stock market, still requiring further regulatory measures by the state, remain both an enigma and a paradigm for those who continue to be blinded by the myth of efficiency and stability in free markets!
Of course, the US government including the central bank felt it necessary to intervene to stabilize markets at the time of financial crisis in the US, both at the time of the Great Depression and the 2008 meltdown that threatened not only the US but also the global economy. The assumption of spontaneous natural order and automatic self-correction went out the window.

Triple Crisis
Turbulence and Stability in Financial Markets: China in Recent Times
Sunanda Sen | former Professor of Economics at Jawaharlal Nehru University, New Delhi.

Tuesday, April 28, 2015