Pakistan has been forced to take a $7.6 billion loan from the IMF. The loan comes with conditionalities like hiking the interest rates and cutting subsidies which would not only have adverse effects on the poor in Pakistan but are likely to excerbate the country's economic crisis. We carry below a BBC report and two articles by Shahrukh Rafi Khan, a visiting professor of economics at Mount Holyoke College, USA, on the current situation.
"It is a fragmented opposition right now, moving in very different diverse ways. But it is a very exciting movement, because I we do not know, clearly, what the alternative might look like. I do not think we have a blueprint for it, which is probably a good idea..."
David Harvey on imperialism and neoliberalism and the resistance around the world in an interview with logosjournal.com.
''The whole history of capitalism has had up-bubbles in real estate and down-bubbles after something different. This time the new fiendish Frankenstein monsters of financial engineering blinded the eyes and the minds of everybody.'' ''Rome was not built in one day, and Franklin Roosevelt did not get full employment. It took about seven years. Now I don't say it'll take seven years this time, but it won't be done with a balanced budget and it won't be done with "inflation targeting." Excerpts from an interview with Paul Samuelson
The spread of the crisis from the US-Europe to Latin America is a result of the Centre-Left Regimes' continuities of the neo-liberal policies, the maintenance of the same ruling economic classes and the pursuit of economic strategies dependent on inflows of speculative capital, debt financing and the agro-mineral export.
James Petras raises important questions about the changes and claims of independence, decoupling and post-liberal models, which many regime leaders, ideologues and progressive US-European Latin American writers made over the past several years.
Courtesy: Information Clearing House
"It is the result of the policies of the Government that the corporate sector rose to the stature of the dominant investor in the economy. This investment while generated high growth could not increase the purchasing power of the majority of the people. With the private sector in a crisis of its own, in the absence of Government boosting demand, the conditions of the people will further worsen. It is time to go back to John Maynard Keynes and argue like him for state intervention to boost demand."
Pragoti editorial team member, Subhanil Chowdhury, analyses the causes of the recent slowdown in the Indian economy.
During the last one month, the UPA Government has been doling out concession and relief at jet speed to the airlines – more precisely the two private airlines viz Jet Airways and Kingfisher Airlines, who now share 60 per cent of the domestic aviation market. This is in total contrast to the Government’s apathy during the last two years to the relentless price rise and high inflation which has become unbearable for the common people.
It is clear by now that the global financial crisis has graduated into a global economic crisis of serious proportions. The advanced economies are set to experience a protracted recession and the developing countries across the world, including the Indian economy, will also be adversely affected.
The UPA Government has so far chosen to meet only the corporate bigwigs and bankers in order to discuss policy responses; neither have the State Governments nor other political parties, trade unions, farmers’ organisations and other organisations representing crucial stakeholders been consulted. It is indeed strange that at a time when the neoliberal vision of putting corporate profits over peoples’ interest and relying upon ‘trickle down economics’ is getting discredited across the world, the economic managers of the UPA Government are clinging on to it. In this backdrop, the CPI (M) is putting forward a set of concrete suggestions in order to tackle the adverse impact of the global recession on the Indian economy and protect the interests of the people.
New Delhi, November 5: Sponsoring Committee of Trade Unions consisting - CITU, AITUC, AICCTU, HMS, AIUTUC, UTUC, TUCC and Independent All India Federations/union - in its meeting held on 5th November, 2008, notes with serious concern the government's acceptance of the deep economic crisis in the world has affected India also.
Large scale loss of jobs is already in evidence in a number of sectors. The reports of downsizing, cuts proposed in the wage is already seen. It is because of the strong presence of public sector in the economy, India had not been brutally assaulted.
''...our ruling elite continues to repose blind faith in neoliberal free-market ideas even as these get discredited in the developed capitalist countries because of their contribution to crises, instability, destruction of wealth, inequality, and undermining of social cohesion''.
Praful Bidwai writes on rediff.
The hegemony of finance capital that underlay neoliberalism is unlikely to persist in the old form. Eminent Economist Prabhat Patnaik writes in Frontline.