economics

By Jeyakumar Devaraj, Socialist Party of Malaysia

"Approximately 90 per cent of China’s high technology exports to the US are produced by multinational corporations and many of them are being bought an

General strike against austerity in Portugal, November 24, 2010.

By Raphie de Santos

January 4, 2011 -- Socialist Resistance -- A full financial bailout of Portugal involving the European Central Bank (ECB) and the International Monetary Fund (IMF) looks set to happen in the first half of 2011. This will involve severe austerity conditions being imposed on the Portuguese people by the ECB and IMF.

The indications are clearly there as at the end of 2010 Fitch joined the two other credit rating agencies to downgrade Portugal’s debt to A+, which is just above junk status. They are concerned that the current account deficit running at 9% is unsustainable with the ruling Socialist Party unable to impose the effective 4% budget cuts in 2011 that they outlined at the end of 2010.

By Eric Toussaint, translated by Christine Pagnoulle in collaboration with Judith Harris

January 3, 2011 -- CADTM -- For a decade, Ireland was heralded by the most ardent partisans of neoliberal capitalism as a model to be imitated. The "Celtic Tiger" had a higher growth rate than the European average. Tax rates on companies had been reduced to 12.5% |1| and the rate actually paid by the transnational corporations that had set up business there was between 3 and 4% -- a CEO’s dream!

By Paul Kellogg

November 25, 2010 -- Pambazuka News -- Marxist economist Samir Amin speaks to Pambazuka's Firoze Manji on the misleading rhetoric over the so-called currency war. The real problem, he argues, is the disequilibrium in the global integrated monetary and financial system, in which the US insists on the right to control its currency, but denies the same rights to others, such as China. The countries of the global South need to leave the US and its allies to sort out their own problems and concentrate on developing regional currencies and exercising strict control over capital flows, Amin argues.

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By Patrick Bond

By Paul Kellogg

October 23, 2010 -- PolEconAnalysis -- In uncertain times, the headline was soothing: "Secretary Geithner vows not to devalue dollar".[1] United States Secretary of the Treasury Timothy Geithner was saying, in other words, that if there were to be "currency wars" -- competitive devaluations by major economies in attempts to gain trade advantage with their rivals -- the United States would not be to blame. Who, then, would be the villain? China, of course.

Earlier this year, Democratic Party congressman Tim Murphy sponsored a bill authorising the United States to impose duties on Chinese imports, made too inexpensive (according to Murphy and most other commentators) by an artificially devalued Chinese currency. "It's time to deliver a strong message to Beijing on behalf of American manufacturing: Congress will do whatever it takes to protect American jobs."[2]

Mohammad Yunus accepts the 2006 Nobel Peace Prize.

Far from being a panacea for fighting rural poverty, microcredit can impose additional burdens on the rural poor, without markedly improving their socio-economic condition, write Patrick Bond and Khorshed Alam.

October 21, 2010 -- Pambazuka News -- For years, the example of microcredit in Bangladesh has been touted as a model of how the rural poor can lift themselves out of poverty. This widely held perception was boosted in 2006 when Mohammad Yunus and Grameen Bank, the microfinance institution he set up, jointly received the Nobel Peace Prize. In South Asia in particular, and the world in general, microcredit has become a gospel of sorts, with Yunus as its prophet.

Consider this outlandish claim, made by Yunus as he got started in the late 1970s: "Poverty will be eradicated in a generation. Our children will have to go to a `poverty museum' to see what all the fuss was about."

By Simon Butler

October 9, 2010 -- Green Left Weekly -- It is close to an article of faith among environmentalists that using less energy is a big part of the solution to climate change. Energy efficiency is often said to be the “low hanging fruit” of climate policy. On face value, the benefits seem obvious.

The knowledge needed to make big gains in efficiency already exists. Using less energy will save consumers and industry money, whereas other policies will be costly. And most importantly, lower energy use could make a big dent in global greenhouse gas emissions.

The UN Intergovernmental Panel on Climate Change and the International Energy Agency both promote energy efficiency as an important climate measure.

However, strong evidence has emerged that new energy efficient technologies alone won’t do much to cut emissions. Indeed, in a capitalist economy, it’s very likely that energy efficiency gains will lead to higher energy use, not less.

Review by Barry Healy

Imperialism and Global Political Economy
By Alex Callinicos
Polity, 2009
227 pages

October 2, 2010 -- The topic of “imperialism” greatly occupied the minds of late-19th and early-20th century socialists. Some of the tradition’s greatest minds toiled mightily to discern the fundamental changes in capitalism that were occurring before their eyes.

Capitalism, as analysed by Karl Marx, had grown fat in its European heartland through the ruthless exploitation of colonies and the brutal factory system in its coal dark cities. But suddenly new phenomena started to appear in the late 1800s.

Banking capital moved from being a support for industrial capital, first merging into and then dominating manufacturing. This agglomeration of money power created massive industrial complexes, like Germany’s famous Krupps steelworks.

The colossal scale of these industrial works dwarfed human beings.