‘The world must jettison neoliberal ideology’: A globalizati

‘The world must jettison neoliberal ideology’: A globalizati

Postby Oscar » Wed Oct 05, 2016 11:26 am

‘The world must jettison neoliberal ideology’: A globalization wake-up call

[ https://murraydobbin.ca/2016/09/30/the- ... 7s+Blog%29 ]

by Murray Dobbin Posted on September 30, 2016

If recent mainstream economic reports are to be taken seriously, some of the big brains managing global capitalism these days are starting to lose faith in their neoliberal ideology. (Financial Times - SUBSCRIPTION REQUIRED) Some come close to sounding like virtual heretics — like Jonathan Ostry, the IMF’s deputy director of research and lead author of an article (“Neoliberalism: Oversold?”) in the IMF’s official publication. He stated, with a childlike innocence: “[s]ome aspects of the neoliberal agenda probably need a rethink. The [2008] crisis said: ‘The way we’ve been thinking can’t be right.'” No point, I suppose, in dwelling on the past — that is, the millions of lives made miserable by decades of IMF structural adjustment programs.

The lack of mea culpas notwithstanding, the IMF bravely identifies two aspects of neoliberal policy for scrutiny: the elimination of capital controls (allowing for capital flight to be used as a political weapon against poor countries) and fiscal austerity. While “cheering” aspects of the “neoliberal agenda,” according to the Financial Times, he also acknowledged some “‘disquieting conclusions” including that they resulted in “increased inequality that undermined economic growth.”

That report came out in May but just last week the annual report of the UN Conference on Trade and Development (UNCTAD) [ http://www.telegraph.co.uk/business/201 ... epic-debt/ ] has leapt ahead of any cautious “rethinking” and calls for a virtual reversal of the whole neoliberal “edifice.” The report contains some of the most alarming warnings UNCTAD has ever issued. And that warning relates, in part, to the near-zero interest rates developed countries are using to try to restart their economies.

- - - SNIP - - -

And this week the Conference Board of Canada published an op-ed in The Globe and Mail (SUBSCRIPTION REQUIRED) decrying the lack of investment in manufacturing innovation, observing:

“[r]esearch and development spending in the sector is generally very low. Indeed, investment has been so weak for a number of years that many manufacturing segments have actually become less capital intensive. The result is an erosion in the global competitiveness of Canadian manufacturing.”

Once again we see the folly of placing our economic future in the hands of “fearful” and risk-averse CEOs while giving them every possible advantage from suppressed wages, huge tax cuts and privatization, to deregulation and endless idiotic “trade” deals. Corporate Canada signed a contract and broke it. It should be forced be back to the negotiating table. And this time it should focus on the domestic economy.

The Liberal preoccupation with trade deals looks increasingly ill considered. In yet another warning about the state of global trade, Roberto Azevêdo, the World Trade Organization’s director-general, declared: “The dramatic slowing of trade growth is serious and should serve as a wake-up call.” (Financial Times SUBSCRIPTION REQUIRED) The question for the Trudeau Liberals is what to do if they do wake up. Instead of more oil and gas infrastructure in a world already awash in both, it should itself be “courageous” and use bold fiscal policy to launch a serious transition away from fossil fuels and at the same time actually take the Paris climate accord seriously. But that would require “rethinking” another neoliberal policy: the reckless tax cuts for the wealthy and corporations which rob federal government coffers of $50 billion every year.
Oscar
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