ECONOMIC NOTES

For a Financial Transactions Tax

SENATOR Bernie Sanders who is a “socialist” by his own admission and is campaigning with some success for nomination as the Democratic Party’s presidential candidate in the coming elections in the United States, has come out with a proposal for a Financial Transactions Tax, whose proceeds are to be used for making college education free for all students in public institutions. Since the campaign this time within the Democratic Party is focusing on control over Wall Street, Sanders’ proposal which directly affects Wall Street acquires great significance.

The Abolition of the NDC

THE Narendra Modi government is winding up the National Development Council, an apex body consisting of the prime minister, the concerned central cabinet ministers, and all state chief ministers together with their concerned cabinet colleagues, which supervised the planning process in the country, gave final approval to the various five-year plans, and met periodically to take stock of issues and policy measures relating to economic development.

Imperialism’s New Trade-Negotiating Strategy

THE WTO has been a major weapon used by the advanced countries to roll back the structures that the third world dirigiste regimes which came into existence after decolonisation had erected for achieving a degree of self-reliance. The TRIPS agreement for instance which tightens the multinational corporations’ stranglehold over technology was pushed through the WTO. But the advanced capitalist world has of late found an even stronger weapon, which consists of bilateral or regional trade agreements (RTAs) like the Trans Pacific Partnership (TPP).

The Liberal Defence of Capitalism

THE liberal defence of capitalism takes two distinct forms in economic theory. One states that the capitalist system operates in a manner that ensures full employment of all resources and produces the bundle of goods it does with “efficiency”, which is defined as a state where no more of any good within this bundle can be produced without having to produce less of some other good.

Education as a Tradable Service

UNDER the General Agreement on Trade in Services (GATS), education is to become a tradable service. In August 2005, India had made a market access offer in the sphere of higher education under the GATS; this offer will become a firm commitment later this month at the Nairobi ministerial meeting, which is set to bring the Doha Round of WTO negotiations to a final conclusion, unless India withdraws from it.

The Seventh Pay Commission Report

THE central government sets up a Pay Commission about once every ten years to recommend what the structure of salaries, allowances and pensions for its current and retired employees should be. The seventh Pay Commission had been set up accordingly by the UPA government before it left office and it submitted its report to the finance minister on November 19, with the suggestion that its recommendations should be implemented with effect from January 1, 2016.

The Inversion of Reason

IN the era of finance capital, the familiar distortion of reality which lies in thinking that society is flourishing when the financial markets are on an uptrend, has its logical obverse in the equally familiar thought that the economic malaise in society arises exclusively because of some malfunctioning in the world of finance; and such malfunctioning in turn is attributed not to any intrinsic problems associated with this world of finance itself but to the unwise interference on the part of some external entity, notably the State, due to its having abandoned the principles of “sound finan

Towards Global Corporate Rule

THE United States is putting in place a new architecture of global corporate rule through a series of investment treaties which it is negotiating with several countries at present. When all these treaties come into effect, the extent of their jurisdiction will cover as much as 80 percent of the global GDP, ie, virtually the entire world economy. These treaties include a set of Bilateral Investment Treaties (BITs), the Transatlantic Trade and Investment Partnership (TTIP), and the Trans Pacific Partnership (TPP).

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