There has been a major transformation in India over the last two decades – economic, political, social and cultural. Some of this has been a result of the liberalisation of the economy, a significant part of which has been the opening up to global capital. The Left in India, across organisations and ideologies, has viewed globalisation as a disaster for India. However, even a cursory glance at the actual history of globalisation in India will show that it has been as much about India reaching out to the world as the world coming to India.
Pragoti presents for its readers the text of sixth Tarakeswar Chakraborti Memorial Lecture delivered by Professor Venkatesh Athreya. The lecture is organised by All India Bank Employee's Association (AIBEA) in tie up with University of Madras.
The sustained and rapid growth of the Chinese economy in the last three decades has been in sharp contrast to the prolonged stagnation in most parts of the nonwestern world. The persistence of a mixed economic system despite market reforms further contradicts the orthodox doctrines of globalisation. This study argues that China’s economic transformation has been mainly based on productivity improvement and is thus to a significant extent a real development.
''The brazen attempts by the champions of the “free market”, to save capitalism through state intervention and public finances, mark a gigantic failure of the finance-driven globalisation process. This spectacular failure, besides reenergizing the resistance against imperialist globalisation, will also have repercussions in terms of weakening the hegemony of the US and strengthening the trend towards multipolarity in world affairs. ''
Prasenjit Bose argues that the global financial crisis and the onset of the recession will 'drum dialectics' into the heads of the policymakers worldwide.
Over the past two decades, China emerged as the preeminent cheap labour platform to boost the flagging profit rates of corporations around the world. China, Japan and other Asian countries recycled their huge export earnings back into the US, keeping the value of their currencies low—a process that helped fund massive US trade and budget deficits. The influx of money enabled the US Federal Reserve to maintain a cheap credit policy, fuelling the housing bubble and debt-driven consumption in the US, which in turn maintained the market for Chinese goods.
Jayati Ghosh reviews works by George Soros and Philip Augar, insiders within Wall Street. Both writers point out to the asymmetry of information, and inherent imperfections in the system. Courtesy, The Asian Age newspaper.