Belt and Road Initiative vs Washington Consensus Jomo Kwame Sundaram

With the Washington Consensus from the 1980s being challenged, President Donald Trump withdrawing the United States from the Trans-Pacific Partnership (TPP), and China pursuing its Belt and Road Initiative (BRI), most notably with its own initiatives such as the multilateral Asian Infrastructure Investment Bank (AIIB), the political and economic landscape in East Asia continues to evolve. Jomo Kwame Sundaram was interviewed about likely implications for developing countries in the region and beyond. Belt and Road Initiative  What do you think of world growth prospects and China's Belt and Road Initiative? Although there are some hopeful signs here and there, there…

Promoting Privatization Jomo Kwame Sundaram

Privatization has been central to the ‘neo-liberal’ counter-revolution from the 1970s against government economic interventions associated with Roosevelt and Keynes as well as post-colonial state-led economic development. Many developing countries were forced to accept privatization policies as a condition for credit or loan support from the World Bank and other international financial institutions, especially after the fiscal and debt crises of the early 1980s. Other countries voluntarily embraced privatization, often on the pretext of fiscal and debt constraints, in their efforts to mimic new Anglo-American criteria of economic progress. Demonizing SOEs Globally, inflation was attributed to excessive government intervention, public…

Housing Market Mayhem C. P. Chandrasekhar

Late in February 2019, the GST Council, prodded by the Centre, decided to modify Goods and Services Tax rates applicable to the housing sector. The declared intention was to reduce prices that home buyers would have to pay for their property. The modification, which takes effect as of 1 April 2019, involves doing away with input tax credit for residential property construction for sale and significantly reducing the GST rate applicable at the final stage of sale of housing. At present the GST rates stand at 12 per cent for normal residential housing and at 8 per cent for “affordable…

Ignorance – Inspired Brexit Imperial Nostalgia Jomo Kwame Sundaram and Anis Chowdhury

As the possible implications of Britain's self-imposed ‘no-deal' exit from the European Union loom larger, a new round of imperial nostalgia has come alive. After turning its back on the Commonwealth since the Thatcherite 1980s, some British Conservative Party leaders are seeking to revive colonial connections in increasingly desperate efforts to avoid self-inflicted marginalization following divorce from its European Union neighbours across the Channel. Imperial nostalgia Part of the new Brexit induced neo-imperial mythology is that its colonies did not provide any significant economic benefit to Britain itself. Instead, it is suggested that colonial administrations were run at great cost…

The use and misuse of Economics C. P. Chandrasekhar

When the final session, prior to the impending election, of the current Parliament ended in February, high on the list of the unfinished business of the Modi-led NDA government was its aggressive effort to rewrite the laws regulating wages and employment conditions of workers in India. While opposition by workers’ movements, trade unions (including those aligned to the ruling BJP), the parliamentary opposition and democratic opinion has managed to stall the effort, it is more than likely to be revived by future governments. The conservative legislative push of the NDA was presented not just as an effort at rationalisation that…

Hate Speech Threatens Our Humanity Jomo Kwame Sundaram and M. Nadarajah

Do politicians’ words matter? Since becoming US President, Donald J Trump has dismissed his opponents and others he does not like as evil, stupid or both. He has referred to undocumented immigrants as animals, and to poor countries as shitholes. Fostering culture of hate Around the world, such harsh words have become normalized as part of the rhetoric of leaders, against perceived and manufactured enemies, to mobilize the intended ‘imagined community’ against ‘ the other’. Such rhetoric, increasingly emulated by political, religious and community leaders the world over, has contributed greatly to the growing climate of resentment and hatred of…

The Subversion of MGNREGS Prabhat Patnaik

The National Rural Employment Guarantee Act that brought the MGNREGS into being was a unique piece of legislation in the history of independent India. It stipulated that employment was to be made available on demand, within a fortnight of being asked for, failing which an unemployment allowance had to be paid. True, its scope was confined only to rural areas, and it promised employment only up to 100 days per household per year; but it made employment a right. The fact that it was passed unanimously by parliament, after much deliberation, meant that parliament was in effect creating an economic…

The Anatomy of Imperialist Intervention Prabhat Patnaik

What is happening in Venezuela today provides an object lesson on the nature of imperialist intervention in third world countries in the era of neo-liberalism. Imperialism has of late intervened along similar lines in other Latin American countries, notably Brazil; but Venezuela, precisely because of the strong resistance it has put up, shows the techniques of imperialism in sharper relief. Not long ago, the Leftward turn in Latin America, not just Cuba, Bolivia and Venezuela, but Brazil, Argentina, Ecuador and several other countries where Left-of-Centre regimes had come to power and pursed redistributive policies in favour of the working poor,…

Agribusiness is the Problem, Not the Solution Jomo Kwame Sundaram

For two centuries, all too many discussions about hunger and resource scarcity has been haunted by the ghost of Parson Thomas Malthus. Malthus warned that rising populations would exhaust resources, especially those needed for food production. Exponential population growth would outstrip food output. Humanity now faces a major challenge as global warming is expected to frustrate the production of enough food as the world population rises to 9.7 billion by 2050. Timothy Wise's new book [Eating Tomorrow: Agribusiness, Family Farmers, and the Battle for the Future of Food. New Press, New York, 2019] argues that most solutions currently put forward…

Resources for Welfare Expenditure Prabhat Patnaik

The basic income scheme that is in the air these days, which amounts to handing over a certain sum of money to every household to ensure that it reaches a threshold cash income, is an extremely flawed scheme. Instead of enjoining upon the state the obligation to provide essential goods and services like food, education, and health, to its citizens, it absolves the State of all such responsibility, once it has handed over a certain amount of money, an amount moreover which is not truly indexed to prices and whose transfer is usually accompanied by a withdrawal of existing subsidies…