The Dialectics of Wealth and Poverty

THIS year’s Nobel Prize in economics (the Riksbank Prize to be more precise) has been awarded to three US-based economists for their research into what promotes or hinders the growth of wealth among nations; and they assign a crucial role to institutions, arguing that western institutions like electoral democracy are conducive to growth.

How Not to Measure Poverty

SEVERAL international organisations are now engaged in the business of measuring what they call “poverty”. The World Bank has been in it for some time, but now we have a new measure of “Multidimensional Poverty” brought out by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI). Neither of these measures however actually measures poverty; they typically end up “prettifying” neo-liberal capitalism.

Imperialism’s Striving for Expansion

THE “inevitable striving of finance capital”, Lenin had written in Imperialism, (is) “to enlarge its spheres of influence and even its actual territory”. He was writing of course in a world marked by inter-imperialist rivalry, where this striving took the form of a competitive struggle between rival finance capitals that speedily completed the partitioning of the world, leaving no “empty spaces”; only a repartitioning of the world was thenceforth possible, through wars among rival financial oligarchies.

The Stagnation of the World Economy

THE fact that the world economy has slowed down since the financial crisis of 2008 is beyond dispute. In fact even conservative American economists have started using the term “secular stagnation” to describe the current situation (though they have their own peculiar definition for it). The purpose of the present note is to give some growth-rate figures to establish this particular point.Calculations of GDP, which are notoriously unreliable for particular countries, are even more so for the world as a whole.

West Africa’s Resistance against Imperialism

WEST Africa, which had been largely under French colonial rule, never saw decolonisation of the sort that India did. For a start, the erstwhile French colonies’ currency continued to be linked to the French franc at a fixed exchange rate, which meant that they could not pursue any fiscal and monetary policy of their choice (for that would have threatened the fixed exchange rate).

The Bizarre State of Western Democracy

DURING the entire post-war period when it has been in existence in the metropolitan countries, democracy has never been in as bizarre a state as it is today. Democracy is supposed to mean the pursuit of policies that are in conformity with the wishes of the electorate.

The Criminality of Unilateral Sanctions

DURING Modi’s visit to Ukraine (why he visited Ukraine at all at the present time remains a mystery), Zelensky asked India not to purchase fuel from Russia in violation of western sanctions, that is, to fall in line with the “unilateral” western sanctions.

The Transient “Miracles”

A GOOD deal of analysis of the recent political upheaval in Bangladesh has focussed on the high-handedness and authoritarianism of Sheikh Hasina’s government; it has either missed altogether, or generally underplayed, the change that has occurred in the economic situation in that country. A country that was being hailed as an economic “miracle” just a few months ago is now mired in an economic crisis that has suddenly worsened the living conditions of vast numbers of people.

The Pitfalls of Growth Under Unrestricted Trade

THE French economist J B Say had believed that there could never be a problem of aggregate demand in any economy, that whatever was produced was ipso facto demanded. There could of course be too many safety-pins and too few blades, but other than such micro mismatches, there could never be too little demand for the aggregate output as a whole. This assertion which is called “Say’s Law” in economics is obviously an absurdity, because if it were true then there could never be an over-production crisis.

Budget 2024-25: A Frightening Obduracy

THERE is massive unemployment in the country that especially afflicts the youth; there is a huge and persistent inflation in food prices; there is acute and unprecedented rural distress; there is a crisis in the petty production sector; and income and wealth inequality has reached levels where the whole world is talking about it. One would have thought that a budget presented in the midst of all this would have shown some urgency, some boldness for tackling these issues. But no, not the 2024-25 budget presented by the NDA government to parliament on July 23.

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Peoples Democracy

ECONOMIC NOTES