“Heads I Win, Tails You Lose”

THE craftiness of imperialism is boundless. In several countries of the world at present there are neo-fascist governments, propped up by their respective big bourgeoisie (all aligned to globalized capital), and implementing neo-liberal policies with their characteristic ruthlessness; in many other countries, there are neo-fascist outfits attempting to get into power by promising to their big bourgeois patrons that they would do the same if in power.

The Indian Economy is Heading for a Stationary State

ADAM Smith and David Ricardo had been haunted by the idea of capitalism ending up in a “stationary state”, by which they meant a stable state of zero growth. Marx used the term “simple reproduction” to describe such a state, where there is no net addition to production capacity and the economy just reproduces itself at the same level period after period. The Indian economy appears headed for such a state.The Modi government’s propaganda machine, as usual, is working overtime to paint a rosy picture of the economy; but the reality is the very opposite.

Neo-Liberalism and Anti-Inflationary Policy

CENTRAL banks all over the capitalist world are raising, or are about to raise, interest rates as a means of countering the currently rampant inflation, which is certain to push a world economy that is barely recovering from the effect of the pandemic, back towards stagnation and greater unemployment.Of course the Federal Reserve Board of the US which sets the standard in this respect for all other central banks, claims otherwise.

Tendency towards the Emergence of an “International” Middle Class

THE chancellor of the exchequer of Britain, whose official residence is only next door to the British prime minister’s, is Rishi Sunak, a person of Indian origin. Britain’s home secretary is Priti Patel, also of Indian origin. The US vice-president Kamala Harris, is of mixed Indian and Jamaican parentage. One can go on; and there are many striking instances of “success stories” in the international business world. These are not persons who are necessarily cut off from their countries of origin.

Food and Decolonisation

RUSSIA and Ukraine together account for 30 per cent of the world’s wheat exports. Many African countries, in particular, are heavily dependent on them for their food supplies, which are now getting disrupted because of the war; and this disruption would continue since the war is also affecting the acreage being sown under foodgrains there. Ukraine alone accounts for about 20 per cent of the world’s maize exports which again are under threat, endangering food availability in several vulnerable countries.

Reflections on the Sri Lankan Economic Crisis

SO much has been written on the Sri Lankan economic crisis that the facts are by now quite well-known (see for instance C P Chandrasekhar, Frontline April 22): the massive build-up of external debt; the huge Value Added Tax concessions that pushed up the fiscal deficit and made the government borrow abroad even to spend domestically; the decline in foreign exchange earnings because of the pandemic that particularly hit tourist inflows; the downward pressure on the exchange rate which made many Sri Lankan workers choose the unofficial route to send their earnings home rather than th

Globalisation and the Relocation of Capital and Labour

THE relocation of capital from the advanced capitalist countries of the north to low- wage countries of the south in the current era of globalisation has received much attention; but there is another kind of relocation that has not received as much attention, and that is of labour from comparatively lower-wage countries of Eastern Europe to the advanced capitalist countries. In fact since within the European Union there is generally free mobility of labour, this has become a powerful inducement for these Eastern European countries to join the European Union.