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…

Demonizing State-Owned Enterprises Jomo Kwame Sundaram

Historically, the private sector has been unable or unwilling to affordably provide needed services. Hence, meeting such needs could not be left to the market or private interests. Thus, state-owned enterprises (SOEs) emerged, often under colonial rule, due to such ‘market failure' as the private sector could not meet the needs of colonial capitalist expansion. Thus, the establishment of government departments, statutory bodies or even government-owned private companies were deemed essential for maintaining the status quo and to advance state and private, particularly powerful and influential commercial interests. SOEs have also been established to advance national public policy priorities. Again,…

Can Africa and China Learn from Each Other? Lim Mah-Hui

The following is a speech made by Dr. Lim Mah-Hui on behalf of the South Centre at a Seminar on the 18th meeting of Afreximbank Advisory Group on Trade and Export Development in Africa, High-level Roundtable 1– Can Africa learn from China?, in Beijing on July 13. The seminar was held in conjunction with the 19th General Meeting of Shareholders of African Export-Import Bank. The South Centre is thus very pleased to be invited here to take part in a meeting on this important topic -- the relationship and cooperation between Africa and China. China is a huge country that…

Shadow Banking in China C P Chandrasekhar and Jayati Ghosh

On October 10, the Chinese government announced that it will increase its stakes in the four largest commercial banks, which are already largely public-owned. The move is designed to ''support the healthy operations and development of key state-owned financial institutions and stabilise the share prices of state-owned commercial banks''. But why was this move considered necessary at all? In the period just before this, investors were dumping Chinese bank shares, anticipating a slowing down not just of the economy as a whole, but in particular the property market, which had experienced a bubble of massive proportions. But the underlying concern…

China’s accession to WTO: Its consequences on income distribution and development Diana Hochraich

Entry into the WTO is the means by which the international community will try and very  likely succeed in forcing China to implement a “liberalisation-cum-structural adjustment” policy. China is doomed to be the sweatshop of Asia, a continent that is already doomed to be the world’s sweatshop. china_accession_wto (Download the full text in PDF format)