[PEN-L] world bank and contreversy over modes of production

[soula avramidis]

 

Big world bank bosses in their papers address the impending crisis resulting from poor growth rates and rising unemployment.

 

Remedies:

1. Move from public to private sector
2. Move from closed to open economies
3. Move from raw material to diversified economies

 

Reasons for policy prescription:

1. The public sector cannot be as efficient as its private counterpart nor can it create sufficient jobs for many young people.
2. developing  economies are highly protected and that retards growth.
3.  developing economies should move out of primary commodities because oil varies a lot causing disturbances at all economic levels.

 they add at times :  “conflicts have drained resources and undermined development.”

 

This last proposition should represent the predicate that underlines the unfolding process of development.

Indeed, there is hardly a mention of the total investment rate that has been in steady decline or the worsening terms of trade defined in terms of political power vectors. Public and private investments usually move in tandem with the former providing the insurance scheme necessary for the latter. The investment rate is underpinned by risk consideration, a matter that refuses to go away easily. that aside...

 

where the WB gets really bad is here:

the principal blame for underdevelopment lies on the developing region, the moral and economic fault is that of the poor nation. now from a developing world perspective when underdeveloped capitalism represents an addendum or a reservoir for fully developed capitalism such a message cannot be put forth. when however two modes of production can regulate their being apart of each other, then blame can shift to the poor etc, but so long as colonialism and post colonialism exists there is hardly room for the latter.

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