Category Archives: exports

In condemnation of privatisation – the naked pursuit of wealth

The ideology of competition and superiority permeates our culture, and the cult of privatisation is at the root of sub-standard, expensive railways, electricity, gas and water; miserable prisons; inadequate care; decreasing legal aid; and failing mental health services.

Personal success and the creation of wealth are goals in a wilderness of private interests. ‘Success’ has widely come to be defined in terms of superiority over others.

Our system of knighthoods and damehoods – the invidious use of ‘Lord’ and ‘Lady’ – symbolise a power structure where outsiders are tolerated, and often quietly absorbed into a corrupt environment.

People motivated by greed, like the authors of devastated pension funds, suddenly and mysteriously reappear in positions of authority. It is as if history has ceased to exist. Those with the courage to expose them are vilified.

Recent media expositions relating to the House of Saud and the huge-scale laundering of the ill-gotten gains of oligarchs and dictators through the City of London, for example, portray the corruption. Empty luxury flats are more desirable than homes for people.

Armaments, for some, are more important to our wellbeing than the lives of underprivileged Yemeni families.

This presents a challenge. Condemnation is not the way to tackle the cult of success. We need successful artists, business people, musicians, actors, social workers, doctors, scientists and engineers – and we must find ways of stimulating and supporting them.

A redefined concept of success will lie in focusing on the huge potential of every single member of our society and not just those with the existing resources – physical, mental, economic – to realise themselves. 

Edited from an article by Roger Iredale in the Friend, 23 February 2018

 

 

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Nurture and rebuild local economies and international relations: Hines, Corbyn, McDonnell

Opposition to open borders and failed neo-liberal policies that transferred wealth to the private sector and cut funding public services, fuelled the Brexit result, Donald Trump’s election and the continued rise of Marine Le Pen in the French polls. Colin Hines, in a letter to the Financial Times, said that these trends all point to the conclusion that the future will be one of protectionism, asking “The question is, what kind?” His answer:

“President Trump is a 1930s-style one-sided protectionist. He wants to curb imports that cause domestic unemployment, but at the same time plans to use “all possible leverage” to open up foreign markets to US exports”.

To avoid a re-run of the 1930s, when the US and others took a similar approach, Hines advocates a very different kind of “progressive protectionism” – one that can benefit all countries by nurturing and rebuilding local economies, reducing the level of international movement of goods, money and services. Policies geared to achieving more job security, a decrease in inequality, and protection of the environment globally would be championed.

Shadow Chancellor: a focus on developing strong local economies 

Sienna Rodgers reports that the shadow chancellor is in Preston today, a city whose ‘co-operative council’ has taken an innovative approach to funding in the face of swingeing budget cuts (see Localise West Midlands). In his speech McDonnell will champion “creative solutions” for local authorities suffering under austerity, from bringing services back in house to setting up energy companies, with a focus on developing strong local economies.

Such economic action, many believe, must be accompanied by a profound change in our foreign/defence policy 

A serious commitment is required to averting armed conflict, wherever tensions rise, by diplomacy, mediation and negotiation, redirecting the wealth currently used to subsidise the arms industry and to prepare for aggressive military action. This has also long been advocated by John McDonnell   (see Ministry for Peace, archived).

These are the policies of Jeremy Corbyn, who has made peace and disarmament his major international priorities. He has already appointed MP Fabian Hamilton as shadow minister for ‘peace and disarmament’, with a brief to ‘reduce violence, war and conflict’, participating in multilateral disarmament meetings at the UN in New York.

Mr Hamilton, who will prioritise reducing supplies of guns and other weapons worldwide, said that Labour is strongly committed to helping to reduce the violence, war and conflict in the world which destroys so many innocent lives every day and – many would add – cripples the economies of many regions, forcing their citizens to emigrate to find peace and to make a living.

 

 

 

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Professors Minford and Scott Cato: whose assessment will prove to be more accurate?

The BBC and other media outlets report the views of Patrick Minford, Professor of Applied Economics at Cardiff Business School, Cardiff University.

In his report From Project Fear to Project Prosperity, to be published in the autumn,  he predicts that a ‘hard’ Brexit will offer a ‘£135bn annual boost’ to economy around a 7% increase in GDP.

Minford, lead author of the introductory nine page report from Economists for Free Trade says that eliminating tariffs, either within free trade deals or unilaterally, would deliver trade gains worth £80bn a year. He has expressed the view that the British economy is flexible enough to cope with Brexit. The four elements in his calculation are listed in the Guardian as:

  • free trade, either via free trade agreements with the EU and the rest of the world, or if those are sticky via unilateral moves to remove our trade barriers
  • UK-run pragmatic regulation to replace the EU’s intrusive single-market regulation of our whole economy
  • our net EU contribution and
  • the cost to the taxpayer of the subsidy paid to unskilled EU immigrants, which we estimate at £3,500 per adult.

MEP Molly Scott Cato (left, speaking in the European Parliament), who read Philosophy, Politics and Economics at Oxford, giving up her professorial chair at the University of Roehampton after election, says that Patrick Minford’s  modelling is based on the UK unilaterally removing all restrictions and tariffs and trying its luck in a global market. According to LSE economists who have analysed his work, this would mean a massive fall in wages and the “elimination” of UK manufacturing.

Minford views the EU as a costly protectionist club, but in reality, Scott Cato continues, the single market eases internal trade and reduces costs: “In the real world, proximity, common standards, and rapid movement of components matter, hence the importance of the customs union. UK manufacturing is largely foreign-owned and revolves around assembly of components manufactured elsewhere in the EU. Ironically, this makes it even more important that we stay in the customs union, to ease the passage of components across borders”. She ends:

“Minford’s work is indicative of the whole Brexit project: based on the illusion that the UK has some manifest destiny that allows us to stand alone in a globalised world. It is high time this phony economics was sent into retirement”.

 

 

 

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