[PEN-L:10937] teaching and East Timor

1999-09-14 Thread J. Barkley Rosser, Jr.

  First I would like to thank those in OZ for
providing sharper perspectives and analyses
for all of us.  I have long supported an end to
military aid by the US to Indonesia and have supported  independence for
East Timor.  But I must say that I am
watching these recent developments very warily.  Do we
really know what is going on?
  In any case, in light of that and the thread on
geezers in academia, I thought I would throw something
out about teaching and all this, at least my teaching.  I
teach in a pretty conservative school and regularly teach
Principles of Economics.  Needless to say it is a constant
effort to try to shake these people up and make them think
etc etc etc.  A lot of them are business majors who don't
even want to be in there and resent the hell out of me.
 Aware of this on the first day of the semester I always
give a "pep talk" on why studying economics is important
even if someone finds it boring or hard.  I usually give a
speech about how many world events are driven from
behind the scenes by economic motives, even if these do
not determine everything, and usually give some provocative
examples.  During most of this decade I have been stuck
on providing a particular contrast, namely that between US
policy in Kuwait and the Persian Gulf and that in East Timor.
It usually is not hard to get students to recognize that the
reason the US fought the PG war was because of oil and
not particularly because of all the highblown rhetoric about
defending poor little Kuwait against an allegedly evil invader.
  But then I would point out that the legal situation has been
almost the same with East Timor, invaded in 1975 by a much
larger and more powerful neighbor illegally, an invasion
condemned by the UN.  But nobody was doing anything about
it.  Why not?
 Of course this became a lesson in other things
as well, since, hey, we are supposed to be teaching students
about "global awareness" as well as "critical thinking" (or at
least we used to be supposed to be doing that before the
latest round of dumbing down the curriculum really got going).
I would ask, "Can anyone tell us where East Timor is and
who its powerful invading neighbor is?"  Sometimes I would
actually get somebody who would know.  But more often
nobody could answer either question.  I would then give hints,
such as that the invading neighbor has the fourth largest
population in the world (this would allow for asking who has
the first, second, and third largest populations, which seems
to be easier to get out of them), and that it has the largest
Muslim population of any nation in the world.  If this did not
draw forth an answer (sometimes by now it was guessed) I
would start asking them where in the world we are talking
about?  Usually by the time it got pinned down to Southeast
Asia somebody would finally get it.
  Anyway, it has proven to be useful exercise in political
economy.  I shall not mourn if it disappears as an example
due to East Timor finally achieving its independence, although
I suppose none of us should hold our breaths too long over
what form that might take.
Barkley Rosser





[PEN-L:10939] Re: Indigenous Epistemology

1999-09-14 Thread Ajit Sinha



Craven, Jim wrote:

 From "Spirit and Reason: The Vine Deloria, Jr. Reader", Fulcrum Publishing,
 Golden CO, 1999

 "...In 1920 George Sibley, the Indian agent for the Osages, a tribe in the
 Missouri region of the country, tried to convince Big Soldier, one of the
 more influencial chiefs, of the benefits of the white man's way. After
 enthusiastically describing the wonders of the white man's civilization,
 Sibley waited expectantly for the old man's response. Big Soldier did not
 disappoint him:

  ' I see and admire your manner of living, your good warm houses; your
 extensive fields of
 corn, your gardens, your cows, oxen, workhouses, wagons and a thousand
 machines, that
 I know not the use of. I see that you are able to clothe yourselves,
 even from weeds and grass.
 In short you can do almost what you choose. You whites possess the power
 of subduing
 almost every animal to your use. You are surrounded by slaves.
 Everything about you is in
 chains and you are slaves yourselves. I fear if I should exchange my
 pursuits for yours, I
 too should become a slave.' (Jedidiah Morse, A Report to the Secretary
 of War on Indian Affairs (1822),   p. 207 quoted in Vine Deloria Ibid. pp
 3-4)

__

Is there a master-slave dialectics going on here? Please elaborate on this.
__

 "Many centuries ago the Senecas had a revelation. Three sisters appeared
and informed them that they wished to establish a relationship with the

 people, the 'two-leggeds'. In return for the performance of certain
 ceremonies that helped the sisters to thrive, they would become plants and
 feed the people. Thus it was that the sisters' beans, corn and squash came
 to the Iroquois. These sisters had to be planted together and harvested
 together, and the Senecas complied with their wishes. The lands of the
 Senecas were never exhausted because these plants, were also [part of and
 formed] a sophisticated natural nitorgen cycle that kept the lands fertile
 and productive.

___

Now, the story of course is a good way to pass on the knowledge from generation
to generation. But i wonder how did they come up with this knowledge?
_

 The white men came and planted only corn and wheat and very
 shortly exhausted the soil. After exhausting scientific experiments, the
 white man's scientists 'discovered' the nitrogen cycle and produced tons of
 chemical fertilizer to replace the natural nitrogen. But recently we have
 discovered that there are unpleasant by-products of commercial fertilizer
 that may have an even worse effect on us than they do on the soil... ( p.
 12)

For every scientific 'discovery', then, there may exist one or more
 alternative ways of understanding natural processes. But we cannot know what
 these alternatives are unless and until we begin to observe nature and
 lsiten to its rhythms and reject the idea of articifially forcing nature to
 tell us about herself. But science carelessly rejects alternative sources of
 information in favor of the clear idea, an absurd abstraction if ever there
 was one. Lacking a spiritual, social, or political dimension, it is
 difficult to understand why Western peoples  believe they are so clever. Any
 damn fool can treat a living thing as if it were a machine and establish
 conditions under which it is required to perform certain functions--all that
 is required is a sufficient application of brute force. The result of brute
 force is Slavery, and whereas Big Soldier, the Osage chief, could see this
 dimension at once, George Sibley and his like have never been able to see
 the consequences of their beliefs about the world. Reductionism is about the
 least efficient way to garner knowledge." (p. 13)

___

It is not just reductionism. I think the knowledge claims based on causality are
essentially mechanical in nature, and thus are rooted in the desire for control.
Most of the people on this list are also basically control oriented. They only
think that the leverage of control is in the hands of "bad guys" and they are
the "good guys" who should have the control. These issues I think are most
serious ones that needs to be thought through and debated. But Michael
discourages it. Cheers, ajit sinha



 Jim Craven

 James Craven
 Clark College, 1800 E. McLoughlin Blvd.
 Vancouver, WA. 98663
 (360) 992-2283; Fax: (360) 992-2863
 [EMAIL PROTECTED]
 http://www.home.earthlink.net/~blkfoot5
 *My Employer Has No Association With My Private/Protected
 Opinion*






[PEN-L:10940] Re: Re: Re: IMF to become autonomous?

1999-09-14 Thread Chris Burford

At 11:04 14/09/99 +0530, you wrote:
Rod Hay wrote:

 Globalisation is a fact that lefties have to deal with. It is futile to
 oppose it. Chris is pointing in the right direction but he is point at the
 wrong path. Capitalism may have some room for progressive action. There are
 still feudal institutional remnants around the world. But it is not the
 place of leftist to cheer the progress of capitalism. Or to worry about the
 institutional arrangements of international financial regulators. It is the
 place of leftist to champion the rights of workers. To insist that workers
 have their rights inforced, that everyone has enough to eat, that health
 care be available to those who need it, that good free education be
 available, etc., etc., etc. It is this opposition that will build socialism
 not an uncritical promotion of elite institutional reform. World government
 is of interest only because it helps break down national barriers to the
 self-organisation of the working classes of the world.

__

Rod, Will this world government allow workers from all over the world to move
freely and work where ever they please? Free mobility of the workers of the
world would be first and foremost opposed by the workers of the 1st world.
Cheers, ajit sinha


This not so little problem is indeed a consequence of Rod Hay's strictly
economist approach to world financial institutions.

Chris Burford

London





[PEN-L:10941] Re: Re: Re: Re: IMF to become autonomous?

1999-09-14 Thread Chris Burford

At 22:31 13/09/99 +, Patrick Bond wrote:


 ... Brown, a declared advocate of the
 reform of international finances, on a key IMF committee.

That lackey of the City? Keep him OUT of reforming, please, Chris! 
Really, this is an elementary responsibility of UK comrades.


That really is crying for the moon! 



But could you explain the apparent discrepancy between this remark


 Go for the nation-state, man, it is the only hope.



and this remark in your post on Jubilee 2000

this movement is about neither a "final" or a 
"short" burst of activity up to 2000. An excellent network has 
launched a variety of superb campaigns out of this, and I would guess 
that not just the debt, but the very existence of the IMF and WB will 
soon come under the spotlight.

Do you mean that you the IMF and the WB will not be reformed, but actually
abolished?



Chris Burford

London





[PEN-L:10948] Allen Nairn Arrested In Indonesia

1999-09-14 Thread Robert Naiman

Call your rep and ask them to press the State Department to say what they are doing to 
win Allan's release and guarantee his safety.

 U.S. Journalist Detained in E.Timor
Tuesday, September 14, 1999; 6:16 a.m. EDT

JAKARTA, Indonesia (AP) -- A U.S. journalist who has long accused Indonesia
of human rights abuses in East Timor was detained today by security forces
in the provincial capital.

``The embassy has been informed that he has been detained and that the
military and police are questioning him,'' said John Vance, a U.S. Embassy
spokesman.

Allan Nairn writes for the New York-based Nation magazine. He has been
deported from Indonesia twice for his reports about the army's brutal
treatment of the people of East Timor, which Indonesia invaded in 1975.

Nairn, of New York City, was detained while investigating the damage
inflicted on Dili by Indonesian troops and the militias they support
following a U.N.-supervised Aug. 30 referendum on independence.

While being taken under armed escort from a military base to a police
compound, Nairn telephoned Essential Information, a Washington-based
nonprofit group founded by consumer advocate Ralph Nader.

John Richard, a member of the group, said Nairn identified Indonesian army
officers who questioned him, including Maj. Gen. Kiki Syahnakai, chief of
the security operation in the province.

Nairn has reported extensively on the Indonesian army's brutal special
forces unit, known as Kopassus, which has been blamed by U.N. and other
international observers for orchestrating much of the violence unleashed in
East Timor over the past two weeks.



© Copyright 1999 The Associated Press

---
Robert Naiman [EMAIL PROTECTED]
Preamble Center
1737 21st NW
Washington, DC 20009
phone: 202-265-3263 x277
fax:   202-265-3647
http://www.preamble.org/
---





[PEN-L:10950] Re: Re: IMF to become autonomous?

1999-09-14 Thread Doug Henwood

Charles Brown wrote:

But doesn't the central committee of the dictatorship of the 
bourgeoisie sit above both the IMF and its member governments, 
really , anyway ?
"Who" is the IMF ?

"The IMF is a toy of the United States to pursue its economic policy 
offshore." - MIT econ prof Rudi Dornbusch (the same guy who said that 
the upside of the Asian crisis was that Korea became a wholly owned 
subsidiary of the U.S. Treasury)

Doug





[PEN-L:10953] Re: Allen Nairn Arrested In Indonesia

1999-09-14 Thread Michael Perelman

Nairn was on KPFA last night, calling from the police station.  He seemed calm and 
said that he faced no particular danger.  Still, he
showed incredible courage sneaking in to Indonesia and eluding the militia for so 
long, while just about everybody else left.

Someone with his talent could easily work for the NY Times, reporting from Dili from 
the Hilton in Djakarta.  Three cheers for the few
reporters with that sort of integrity and courage.  Most have already been blackballed.

--

Michael Perelman
Economics Department
California State University
[EMAIL PROTECTED]
Chico, CA 95929
530-898-5321
fax 530-898-5901





[PEN-L:10955] Re: Re: Re: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Michael Perelman

Brad De Long wrote:

 Imports from non-industrial-core countries equal to 3% of GDP--most
 of which have potential domestic substitute producers who are not
 *that* much more costly...

Are you sure of what you just wrote?  With far reaching mechanization, I
suspect that we would not loose too much by producing textiles in the U.S.,
but what about raw materials?  Think of how sensitive the economy seems to be
to oil prices.  Was W. Arthur Lewis completely wrong about terms of trade?
Also, I wonder how much U.S. prosperity depends on our ability to foist our
products on Third World countries.

Anyway, I think that I can learn a lot if we follow through on this
discussion.

By the way, my comment about your acknowledging context was intended as a
complement, Brad.  Your "my, my" response seemed to suggest that you did not
read it in that spirit.

--

Michael Perelman
Economics Department
California State University
[EMAIL PROTECTED]
Chico, CA 95929
530-898-5321
fax 530-898-5901





[PEN-L:10956] Indigenous Epistemology II

1999-09-14 Thread Craven, Jim



These remind me of a story my uncle Irvin Chrisjohn used to tell about the 
first Iroquois to encounter an European.  The European pulled out an axe 
and chopped down a good-sized tree in a few minutes.  The Iroquois was duly 
impressed, since the felling was accomplished much more quickly than was 
possible with stone axes (also, proper tree felling had a ceremonial aspect 
that required more time).  The European held up the axe and said: "This is 
a superior technology, given to us by the Creator because we are his chosen 
people.  The Creator smiles upon us, giving us dominion over the world and 
the creatures of the world, including other peoples.  We are willing to 
share this technology with you, as long as you acknowledge our superior 
relation to the Creator, our domination of the land, and the priority of 
our status over you."  The Iroquois thought for a second and replied: "I'll 
take the axe, thanks, but you can keep the bullshit."

Roland





[PEN-L:10957] Re: Why China Failed to Become Capitalist

1999-09-14 Thread Yoshie Furuhashi

Imports from non-industrial-core countries equal to 3% of GDP--most
of which have potential domestic substitute producers who are not
*that* much more costly...
Brad DeLong

The low figure in part results from artificially low wages paid to Third
World workers + low prices paid to Third World commodities, no?  Without
the ruling class repression (crucially assisted by military and other aids
from the USA, et al.), Mexican, Indonesian, and other workers could demand
and command higher living standards.

The countries that underwent self-directed industrialization earlier became
the industrial core, so comparative advantages that the core now enjoys
have been historically created through imperialism, which locked colonies
into the production of primary resources (such as minerals), agricultural
commodities, and manpower.  Even after the nominal political independence
of the countries that used to be colonies, it was difficult for the newly
independent countries to close the gap, for comparative advantages, once
created, have a way of perpetuating themselves.  Then, debt-financed import
substitution imploded, and the advantages gained by Third World workers
during the times of relative progress after decolonization have once again
been taken away, with the imposition of austerity.  The insane never-ending
treadmill to gain foreign exchange to service debts also has increased
competition in the few export commodities in which Third World countries
had advantages, which has depressed commodity prices.  Meanwhile, capital
has flowed from the Third World to the First World financial institutions.

All the while, the countries and sections of the working class that wished
to break out of this vicious circle have become targets of the collective
wrath of the First World ruling class and governing elite.

Yoshie





[PEN-L:10963] Re: Re: Re: Re: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Wojtek Sokolowski

At 10:28 AM 9/14/99 -0700, Jim Devine wrote:

According to the US ECONOMIC REPORT OF THE PRESIDENT, 1999, Table B-105,
total imports from non-Industrial countries in the first 3 quarters of 1998
(at an annual rate) equaled 414.9 billion US$, which is more than 45
percent of total US imports. 


Is that $415b the value of the imports at their wholesale or retail value?
If the former, the thousand or so percent markup at retail will generate
what, some $4,000 billion in profits for the capitalist class in the US, no?


wojtek





[PEN-L:10966] Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Charles Brown



 Doug Henwood [EMAIL PROTECTED] 09/14/99 02:53PM 
Charles Brown wrote:

Wasn't Lenin's idea in _Imperialism_ that around 1900 there was a 
shift from a predominance of export of goods from the core 
imperialist countries (in exchange for raw materials) to a 
predominance of export of capital ? In other words, what Lenin said 
fits with what Brad says: 1900 marked a change from mainly ripping 
off raw materials from the colonies ( as had been occurring with 
cotton) to ripping off super surplus value from the newly 
established proletarians.

Seems to me that there are about 10-12 countries that are heavy 
foreign investment targets - China, Mexico, Brazil, some Southeast 
Asian countries, etc. - but most of the rest of the so-called Third 
World - Africa, much of South Asia, the poorer countries of the 
Western Hemisphere - is pretty peripheral to capital's concerns in 
1999.

(((

Charles: Given the G-7 ,aren't there only about 7,  main imperialist countries ? 
That's 1.4 to 1.7 main colonies per imperialist center. 

Do you have a way of calculating the profits made by imperialism from its main 
investment targets ? Why else would Ford and GM, etc, move plants to Mexico and 
Brazil, etc., except a much higher rate of profit ?

By the way, I didn't mean to disagree with Brad that things are not exactly the same 
as in 1900. Just that Lenin was talking about profits coming from the colonies, not 
goods. 

On the other hand, the industrial plants established  in Korea, Mexico, Brazil, China 
(et al ? South Africa) in the last 20 years continue the export of capital trend that 
Lenin (Hobson ?) marked. The plantclosing/runaway shop trend of the 80's was not an 
illusion , was it ?


Charles Brown





[PEN-L:10969] Close to Friedman with a brain

1999-09-14 Thread Rod Hay

Because of my web site, I often get questions from students. I answer them 
if I can, but this one has me stumped. ;-)

"I've got an essay on "what agency costs are you prepared to bear in your 
business ?"  I'm not sure I'm entirely aligned with Friedman and am 
interested in something a bit close to Friedman with a brain.  Any sites you 
could recommend ??
regards,"

Rod Hay
[EMAIL PROTECTED]
The History of Economic Thought Archives
http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/index.html
Batoche Books
http://members.tripod.com/rodhay/batochebooks.html
http://www.abebooks.com/home/BATOCHEBOOKS/




__
Get Your Private, Free Email at http://www.hotmail.com





[PEN-L:10971] Re: Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Charles Brown



 Doug Henwood [EMAIL PROTECTED] 09/14/99 03:25PM 
Charles Brown wrote:


Do you have a way of calculating the profits made by imperialism 
from its main investment targets ? Why else would Ford and GM, etc, 
move plants to Mexico and Brazil, etc., except a much higher rate of 
profit ?

Yes, of course, but about 70% of the stock of foreign direct 
investment is inter-imperialist, and the main reason for that is 
penetrating new markets with local production.

((

Charles: Yes, a huge proportion is exporting capital to the U.S., nowadays, no ? With 
its large markets, developed infrastructure, low percentage unionized work force. 

((


 If you believe the 
official stats, MNCs aren't making outlandishly superprofits on their 
"Third World" investments.

(((

Charles: Well, they are making them in the "outlands" , ha, ha. But seriously, I would 
be kind of skeptical about the official stats. Or maybe it's a critical core of the 
profits and their source that controls the whole strategy of the MNC's.

This is a little old, but in _Superprofits and Crises_ , Victor Perlo says:

(page 357), "The  relative importance of foreign investments to the property income of 
the ruling class jumped from a previous peak of about 3% to close to 15% by 1984"

and (this might be critical to argument)

"Bear in mind that the principal recipients of income on foreign investments directly 
and indirectly,  were a small circle of the very rich and powerful, connected with the 
New York and the smaller financial centers, and major stockholders in the giant TNCs. 
for the members of this ruling-class group, income on foreign investments would 
typically account for 25%-50% of their total revenue..."


This suggests looking, not at the source of the great mass of the profits of the MNC's 
, but at that of a small elite minority , the financial oligarchy, who control the 
MNC's. The superprofits from foreign investment are had by a tiny minority, but that 
tiny minority is the ruling class and they direct and control the MNC's. Thus, the 
mass of the superprofitting doesn't have to be that big as a percentage of the total 
profits. Does this make sense ? The pea brain of the dinosaur directs the whole giant 
body. 


CB

 






[PEN-L:10972] Why China Failed to Become Capitalist/Who is the rulingclass ?

1999-09-14 Thread Charles Brown

And that small minority elite who superprofit from direct foreign investment are the 
bourgeois dictators who control  the U.S. economic policy, IMF, the President, The 
Treasury Secretary, Wall Street, etc.. They are the ruling class.

CB


 "Charles Brown" [EMAIL PROTECTED] 09/14/99 
 Or maybe it's a critical core of the profits and their source that controls the whole 
strategy of the MNC's.

This is a little old, but in _Superprofits and Crises_ , Victor Perlo says:

"Bear in mind that the principal recipients of income on foreign investments directly 
and indirectly,  were a small circle of the very rich and powerful, connected with the 
New York and the smaller financial centers, and major stockholders in the giant TNCs. 
for the members of this ruling-class group, income on foreign investments would 
typically account for 25%-50% of their total revenue..."


This suggests looking, not at the source of the great mass of the profits of the MNC's 
, but at that of a small elite minority , the financial oligarchy, who control the 
MNC's. The superprofits from foreign investment are had by a tiny minority, but that 
tiny minority is the ruling class and they direct and control the MNC's. Thus, the 
mass of the superprofitting doesn't have to be that big as a percentage of the total 
profits. Does this make sense ? The pea brain of the dinosaur directs the whole giant 
body. 


CB

 






[PEN-L:10973] Re: Fascism

1999-09-14 Thread Carrol Cox



"Craven, Jim" wrote:

 "Only one thing could have broken our movement: if the adversary had
 understood its principle and from the first day had smashed with extreme
 brutality the nucleus of our new movement."
 Adolf Hitler (Speech to Nuremberg Congress, September 3, 1933)

 "I am afraid of those who proclaim that it can't happen here. . . .

Jim, this displaces the debate, which is not over whether "it" can
happen here but over the precise nature of the "it" -- which we
need to know if we are going to fight against its appearance.

Remember, one of the foundations for the joke about military
intelligence being an oxymoron is the propensity of generals to
be prepared to fight the last war but not the next war. Focusing
too much on a carelessly defined "it" can have two separate
disastrous consequences: (1) And you should know this better
than anyone, the focus on fascism (and especially on fascism
just defined as nastiness) can obscure just how horrible and
intense repression up to and including genocide can be in a
perfectly sound bourgeois democracy. About half or more
of what often goes into definitions of "what can happen here"
are simple descriptions of what can't happen here because
it has always been here. (2) *If* (as really is possible) the
fascism we are trying to define was in fact historically limited
to a particular conjunction of circumstances, then a focus on
it is preparing for the last war and not looking ahead to the
next war. There is always a danger of losing democratic
rights, of some sort of directly authoritarian and repressive
regime. Just as Hitler was really quite different from Bonaparte,
so the next round of threats of the same genus may look
terribly and unpredictably different specifically. A focus on
fascism can lead to blindness to new dangers.

Sinclair Lewis's *It Can't Happen Here* was a lousy novel -- in
part because Lewis was a lousy novelist but mostly because he
defined the "it" that could or couldn't happen as a mere carbon
copy, ignoring the probability that a U.S. fascist movement would
of course campaign under an anti-fascist banner. My own best
guess as to what an American "Hitler" would look like is Jerry
Brown of California. It wouldn't be "fascism," it would probably
be something worse. "Soft Fascism" made for a good and useful
title, to catch people's attention to certain (dangerous) variations
within u.s. democracy -- but in the long run it is mistaken to play
games with  words in this way.

Carrol





[PEN-L:10979] Re: Re: Re: IMF to become autonomous?

1999-09-14 Thread Chris Burford


Charles Brown wrote:

But doesn't the central committee of the dictatorship of the 
bourgeoisie sit above both the IMF and its member governments, 
really , anyway ?
"Who" is the IMF ?

Doug:

"The IMF is a toy of the United States to pursue its economic policy 
offshore." - MIT econ prof Rudi Dornbusch (the same guy who said that 
the upside of the Asian crisis was that Korea became a wholly owned 
subsidiary of the U.S. Treasury)



At 13:29 14/09/99 -0400, Charles wrote:

Yes, one of those honest statements that slips out now and again.

To press it a little further, using the old Marxist metphor, the U.S.
government -Presidency, including The Treasury, Congress, Judiciary,
Military - is still sort of the executive controlled by the Board of
Directors (central committee) of the Dictatorship of Transnational
Bourgeoisie.  The U.S. economic policy (off shore and on)  is not aimed at
the best interests of the American People in their tens of millions or even
the federal top bureaucrats, but the maximum profits for the owners of big
private property. 

Can there be any doubt ? The U.S/IMF top bureaucrats, Clinton, the
Treasury Secretary, Cadmusses (spelling) are not the actual rulers , but
top servants of the rulers, aren't they ? "Who"  is the ruling class, "The
Board of Directors of the whole World" ? I know conspiracy theory is not
favored, but the "system" is not like an mechanical object at the top.
There are people there commanding anonymously, aren't there ?  It's not
Morgan's ghost running things on automatic.

I don't know what we can do about it. But I refuse to be naive.


For the sake of brevity I cut out of my previous post a discussion about
how to formulate the idenity of the ultimate capitalist class. Yes
admittedly the US is its main power base, but it has interests now that are
to some extent global and not just in terms of exploitation. Charles has
suggested the term "transnational bourgeoisie"

The term "transnational" seems to be favoured in progressive development
circles, but it can obscure the fact that the main centre of the capital
involved is usually located in one country or another. This point is
brought out better by the term "multinational".

The main focus of their lobbying may be in one country, probably the USA,
but ultimately capital is without any human body home and any country. 

I do not doubt for a moment that the present capitalist system is one of US
hegemony even allowing for the pickings of lesser imperialist powers like
Britain. 

It is a frank and pithy statement from Dornbusch, but not the complete
truth. I suggess we also make some allowances for US blunt speaking. In
fact the situation is a little more complex. The US has to accept certain
constraints to protect its hegemony. Eg the convention of sharing senior
posts in international agencies between the US and Europe. 

Do a transnational bourgeoisie exist separately from US imperialism? Not of
course separately, but I would say

a)  the reported international competition for top corporation executives
earning a six figure sum a year, creates a pool of senior finance
capitalists who all know each other because they have similar interests and
leisure pursuits which only their salaries admit.  

b) The marxist analysis is real. Ultimately capital has no country and no
human body. There is a potential space for a world bank to serve this
function even though for a long time to come it will be slanted towards US
influence. The IMF will not become autonomous but the struggle to make it
more autonomous is progessive.

Chris Burford

London






[PEN-L:10982] Re: Why China Failed to Become Capitalist

1999-09-14 Thread Mathew Forstater

Thank you Louis. I wish others would be less quick to throw in the towel.
If your gut tells you the imperialist nations got and are getting something
from the Third World, maybe we need to apply some mental energy to
pinpointing it.  Louis speaks of the Rodney portion of the Williams-Rodney
thesis.  The Williams part is named for Eric Williams (_Capitalism and
Slavery_), who concentrated on what the industrializing nations got, while
the Rodney portion concentrates on the negative impact on Africa.  For a
more recent exposition of the Williams-Rodney thesis, see Darity's work,
e.g., William Darity, Jr., "A Model of 'Original Sin': Rise of the West and
Lag of the Rest," _American Economic Review_, Vol. 82, No. 2, pp. 162-67,
May, 1992; William Darity, Jr., "Mercantilism, Slavery, and the Industrial
Revolution," _Research in Political Economy_, Vol. 5, pp. 1-21, 1982;
William Darity, Jr., "British Industry and the West Indies Plantations," in
J. E. Inikori and S. L. Engerman (eds.): _The Atlantic Slave Trade_, Duke U.
Press, 1992.

Obviously, in the world we live in, it takes a lot more work to make the
argument like the Williams-Rodney thesis than to argue that "well, the
industrialized countries really didn't get that much out of it" or
"capitalism was really good for Africa" etc.  Unbelievable.  Come on,
"progressive economists"!  I'd love to sponsor a debate between Darity and
Brad, or between Darity and Wojtek for that matter.  (Although we could use
Wojtek's framework and just add in tons of what he is calling
"externalities" and come up with a different bottom line.)  Come on,
Marxists, let's start with "Primitive Accumulation" and we'll take it from
there.  And reserve army for sure.  But some of the horrors, theft, rape,
plunder, slavery, murder, doesn't come up in the "percentages" (although
Darity takes on the "small ratios" theory, in the last cite above, I
believe.)

By the way, how much pressure did Tanzania get over Ujamaa?

mf


-Original Message-
From: Louis Proyect [EMAIL PROTECTED]
To: [EMAIL PROTECTED] [EMAIL PROTECTED]
Date: Tuesday, September 14, 1999 2:39 PM
Subject: [PEN-L:10968] Why China Failed to Become Capitalist


There are no statutes of limitation on imperialism. Just because US
multinationals are ignoring most of Subsaharan Africa today, we can not
forgive or forget that the damage was already done. Walter Rodney's "How
Europe Underdeveloped Africa" leaves no doubt that imperialism left the
continent in a shattered state. The absence of foreign investment today is
not so much a sign of "benign neglect", but rather that the bones have been
already been picked clean. Colin Leys, on the Socialist Register editorial
board, has written an analysis of underdevelopment in Africa that
elaborates on these points. Titled "Rise and Fall of Development Theory",
it attempts to skirt the dialectical poles of the sort of stagist Marxism
represented by James Heartfield and the late Bill Zimmer, both of whom
argue that more foreign investment was needed in Africa if anything, and
"dependency theorists" on the other who blame everything on capitalist
penetration. Leys's basic argument is that Africa is suspended between 2
modes of production. It has not fully uprooted precapitalist social and
economic formations, but at the same time it has not been attractive enough
to outside capitalist investors to warrant the full-scale transformation
that has taken place in much of East Asia, for example.



Louis Proyect

(http://www.panix.com/~lnp3/marxism.html)






[PEN-L:10986] Why China Failed to Become Capitalist

1999-09-14 Thread Louis Proyect

At 05:12 PM 9/14/99 -0700, Craven, Jim wrote:
Add to all of that and more that fully 50% of all children born in Africa
today are born HIV positive. I like to use the metaphor of imperialism as a
gigantic "reverse Hoover" vacuum "cleaner".( actually a vacuum plunderer and
dirtier) Whereas a normal vacuum cleaner takes out the dirt and leaves the
furniture and rooms in tact and in fact cleaner than before, imperialism
takes out the furniture (critical resources, talents, local capital, whole
populations, savings, etc) and leaves even more dirt (strip bars, whore
houses, tatoo parlors, orphanages full of unwanted mixed-race children,
Coca-Colanization, ultra-selfish/rat-race individualism, military bases,

Funny you mention this. These were my exact thoughts a half-hour ago when I
was viewing the opening-night reception for a show at the Metropolitan
titled "Egyptian Art in the Age of the Pyramids", courtesy of a ticket that
my friend, the estimable Henry Liu, laid on me. Most of this art was not
seen by their makers as art, but permanent icons that belonged in tombs in
order to establish the immortality of the inhabitants. Created in the 3rd
century BC, it has an incredible freshness and vitality. One in particular
stands out. It is a sculpture of a male and female member of the royal
family who stand as if posing for a Polaroid, with their arms wrapped
around each other's shoulders.. You can almost imagine them saying
"Cheese".  It is truly astonishing art.

But the museum in which it is displayed is a monument to inhumanity. It is
funded by the imperialist bourgeoisie who are largely responsible for
turning Egypt into what is today: a miserably poor third world country
which requires US aid in order to survive. Instead of graceful sculptures,
you have monuments to the quarter-pounder instead.

Charts depicting the building of the pyramids leave no doubt that this was
a very despotic society. If Egypt had been left to its own devices, perhaps
there would have been the development of a strong, peasant class that could
have asserted its own rights and challenged the various feudal monarchies.
We'll never know. Egypt, like China and the Incan empire, got swallowed
whole by the Hoover vacuum of imperialism.

There is a very deep ambivalence and anxiety about these kinds of
precapitalist social formations in  European and American bourgeois
society. While we organize exhibits of the loot we stole from them, in
clear deference to the transcendent spirit which animated these societies,
we still consider them savages. Martin Bernal, the author of "Black
Athena", is under constant attack for alleging that Egyptian culture shaped
Greek thought. In the latest New Yorker, there's an review of a new book by
a Brown professor named Shepard Krech III. Titled "The Ecological Indian:
Myth and History," it is a compendium of all the bullshit that we hear over
and over. Krech has assembled all of the arguments about Indians driving
bison over the cliffs, dying by "accident" because the Europeans didn't
intend to infect them with smallpox, etc. and packaged them into a $27.95
book sold by Norton Press. It is a companion volume, obviously, to David
Stoll's ignorant attack on Rigobertu Menchu.

These precapitalist societies are a constant reminder of what Matt
Forstater (after Marx) refers to as "horrors, theft, rape, plunder,
slavery, murder". I am always reminded of that wonderful scene in the movie
Poltergeist when the land underneath the modern housing development comes
churning up, vomiting the graves of the violated bodies whose sacred ground
has been violated. These ideologists like Krech and Stoll just want to keep
them buried.



Louis Proyect
(http://www.panix.com/~lnp3/marxism.html)





[PEN-L:10988] Re: Why China Failed to Become Capitalist

1999-09-14 Thread Mathew Forstater

There is another professor from Wellesley, I believe, named Mary Lefkowitz,
author of "Not Out of Africa" who has a whole little business of "refuting"
Bernal and anyone who wants to study any contribution by African peoples.
She's got a bunch of books all on this, she is funded by real right wing
groups, and it's a whole industry she has going, with a following and I am
sure there are a whole group of ph.d's coming up who all go to her panels
and publish in her journals, etc, and so every time a Black Studies Dept.
wanmmts to do anything, they have to spend all of their time answering to
her and her kind, instead of doing productive stuff.  This is how whole
groups and dept.s and individuals get drained if they don't have the energy
to spend all of their time demonstrating that these attacks are wrong,
becvause you have to do it, otherwise it is assumed that if you don't answer
that they must be right!  AAAG!!


-Original Message-
From: Louis Proyect [EMAIL PROTECTED]
To: [EMAIL PROTECTED] [EMAIL PROTECTED];
'[EMAIL PROTECTED]' [EMAIL PROTECTED]
Cc: Henry C.K. Liu ¹ù¤l¥ú [EMAIL PROTECTED]
Date: Tuesday, September 14, 1999 8:28 PM
Subject: [PEN-L:10986] Why China Failed to Become Capitalist


At 05:12 PM 9/14/99 -0700, Craven, Jim wrote:
Add to all of that and more that fully 50% of all children born in Africa
today are born HIV positive. I like to use the metaphor of imperialism as
a
gigantic "reverse Hoover" vacuum "cleaner".( actually a vacuum plunderer
and
dirtier) Whereas a normal vacuum cleaner takes out the dirt and leaves the
furniture and rooms in tact and in fact cleaner than before, imperialism
takes out the furniture (critical resources, talents, local capital, whole
populations, savings, etc) and leaves even more dirt (strip bars, whore
houses, tatoo parlors, orphanages full of unwanted mixed-race children,
Coca-Colanization, ultra-selfish/rat-race individualism, military bases,

Funny you mention this. These were my exact thoughts a half-hour ago when I
was viewing the opening-night reception for a show at the Metropolitan
titled "Egyptian Art in the Age of the Pyramids", courtesy of a ticket that
my friend, the estimable Henry Liu, laid on me. Most of this art was not
seen by their makers as art, but permanent icons that belonged in tombs in
order to establish the immortality of the inhabitants. Created in the 3rd
century BC, it has an incredible freshness and vitality. One in particular
stands out. It is a sculpture of a male and female member of the royal
family who stand as if posing for a Polaroid, with their arms wrapped
around each other's shoulders.. You can almost imagine them saying
"Cheese".  It is truly astonishing art.

But the museum in which it is displayed is a monument to inhumanity. It is
funded by the imperialist bourgeoisie who are largely responsible for
turning Egypt into what is today: a miserably poor third world country
which requires US aid in order to survive. Instead of graceful sculptures,
you have monuments to the quarter-pounder instead.

Charts depicting the building of the pyramids leave no doubt that this was
a very despotic society. If Egypt had been left to its own devices, perhaps
there would have been the development of a strong, peasant class that could
have asserted its own rights and challenged the various feudal monarchies.
We'll never know. Egypt, like China and the Incan empire, got swallowed
whole by the Hoover vacuum of imperialism.

There is a very deep ambivalence and anxiety about these kinds of
precapitalist social formations in  European and American bourgeois
society. While we organize exhibits of the loot we stole from them, in
clear deference to the transcendent spirit which animated these societies,
we still consider them savages. Martin Bernal, the author of "Black
Athena", is under constant attack for alleging that Egyptian culture shaped
Greek thought. In the latest New Yorker, there's an review of a new book by
a Brown professor named Shepard Krech III. Titled "The Ecological Indian:
Myth and History," it is a compendium of all the bullshit that we hear over
and over. Krech has assembled all of the arguments about Indians driving
bison over the cliffs, dying by "accident" because the Europeans didn't
intend to infect them with smallpox, etc. and packaged them into a $27.95
book sold by Norton Press. It is a companion volume, obviously, to David
Stoll's ignorant attack on Rigobertu Menchu.

These precapitalist societies are a constant reminder of what Matt
Forstater (after Marx) refers to as "horrors, theft, rape, plunder,
slavery, murder". I am always reminded of that wonderful scene in the movie
Poltergeist when the land underneath the modern housing development comes
churning up, vomiting the graves of the violated bodies whose sacred ground
has been violated. These ideologists like Krech and Stoll just want to keep
them buried.



Louis Proyect
(http://www.panix.com/~lnp3/marxism.html)


[PEN-L:10989] Why China Failed to Become Capitalist

1999-09-14 Thread Rod Hay

You could on and on with the moral outrage. War and conquest extract 
terrible penalties on the defeated. Inside Europe as well as outside it. Has 
no one read the history of the thirty years war?

But the question is how dependent was the development of capitalism on the 
exploitation of the peripheral countries. Few of the quantitative studies 
indicate that the dependence was large. Capitalism depended and continues to 
depend for the most part upon the exploitation of workers within the core 
countries. Even with higher wages, the amount of surplus extracted is many, 
many times higher. This should not be surprizing given the differences in 
capital accumulation (both physical and human). Workers with higher 
educational accomplishments and more machines and more modern technology 
produce more. This is why the larger percentage of foreign investment is in 
already industrialised countries. That is where the surplus can be obtained 
more easily.

Globalisation may change that, but even here the spread of industrial 
production is encompassing a small number of new countries.



Rod Hay
[EMAIL PROTECTED]
The History of Economic Thought Archives
http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/index.html
Batoche Books
http://members.tripod.com/rodhay/batochebooks.html
http://www.abebooks.com/home/BATOCHEBOOKS/




__
Get Your Private, Free Email at http://www.hotmail.com





[PEN-L:10993] imperialism, china, and pen-l

1999-09-14 Thread michael

I very much appreciate the quality of the discussion on imperialism.
-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]





[PEN-L:10991] Re: Why China Failed to Become Capitalist

1999-09-14 Thread Brad De Long

You could on and on with the moral outrage. War and conquest extract
terrible penalties on the defeated. Inside Europe as well as outside it. Has
no one read the history of the thirty years war?

But the question is how dependent was the development of capitalism on the
exploitation of the peripheral countries. Few of the quantitative studies
indicate that the dependence was large.

British industrial revolution depended quite heavily on slave-grown 
cotton from the American south for a few decades in the early 
nineteenth century...


Brad DeLong





[PEN-L:10987] Re: RE: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Mathew Forstater

I say, it does matter, very much, but I agree it is not all that matters.
But who said it is all that matters?! Of course, the point is to change it.
But understanding it very much matters in terms of changing it.  It matters
in principle, and it matters as a matter of politics and policy.  I for one
am for reparations/restitution.  Will that change evrything? No, but I am
still for that and for changing it so more doesn't happen again.  But who
said we can only choose one?

But there is something else going on here.  The fact of the matter is that
"progressive" groups in the industrialized nations have historically
suffered from racism, sexism, eurocentrism that marginalize so-called Third
World peoples.  (Is there sexism in those nations, too? Yes, but that's not
what was being discussed.)

This could go on and on but I don't have the time or energy at the moment.

mf
-Original Message-
From: Max Sawicky [EMAIL PROTECTED]
To: [EMAIL PROTECTED] [EMAIL PROTECTED]
Date: Tuesday, September 14, 1999 7:20 PM
Subject: [PEN-L:10985] RE: Re: Why China Failed to Become Capitalist


. . .  Come on,
"progressive economists"!  I'd love to sponsor a debate between Darity and
Brad, or between Darity and Wojtek for that matter. . . .


I agree it is worth knowing the extent to which
rents from resource extraction or unfair trade
subsidized the rise of the "West" or the "North,"
both retrospectively and currently.

Whether you get a result currently that is big
or small, the disposition of it depends on politics
in the U.S., EU, Japan, and OZ, not on our own
conclusions about measured exploitation.

Politically the implications can go both ways.
Talk of our dependence on exploitation, the need
for truth notwithstanding, could easily have the
effect of hindering the case for aid in assorted
forms.  I say this not to discourage discussion,
but to point out the implied political ambiguities.

Whether the amount is big or small, the indubitable
fact is that US/EU/Japan/OZ are rich and many other
countries are economically and militarily helpless.
Aid and the removal of oppressive institutions are
the right thing to do.

You can scream at, say, Americans all you like about
the atrocities committed in our name.  Some will be
sympathetic to moral appeals, however weak their
power.  Some will take pity and buy some South
American child a year's worth of meals.  Most people
are immersed in their own problems, and a crisis
here may elevate that concern to one for the
broader working class or "the people" in some
formulation.  But it's hard to see how a crisis
connects people's thinking with the plight of
the underdeveloped countries, nor how the latter
effectively escape the implications of capitalist
hegemony in its present form.

The extent to which capitalism depends on the
misery of certain areas of the world is less
important than how this may be changed.  The
truth will not set anyone free, no matter how
many times it is repeated.  The other side
can convey their own brand of internationalism
a hundred times louder and more frequently.
People who are repelled by this have been
going right to Buchanan more often than left.

So let me repeat that the question is interesting,
but its importance from a political standpoint (not
a moral one) seems to be prone to overstatement.

mbs






[PEN-L:10985] RE: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Max Sawicky

. . .  Come on,
"progressive economists"!  I'd love to sponsor a debate between Darity and
Brad, or between Darity and Wojtek for that matter. . . .


I agree it is worth knowing the extent to which
rents from resource extraction or unfair trade
subsidized the rise of the "West" or the "North,"
both retrospectively and currently.

Whether you get a result currently that is big
or small, the disposition of it depends on politics
in the U.S., EU, Japan, and OZ, not on our own
conclusions about measured exploitation.

Politically the implications can go both ways.
Talk of our dependence on exploitation, the need
for truth notwithstanding, could easily have the 
effect of hindering the case for aid in assorted
forms.  I say this not to discourage discussion,
but to point out the implied political ambiguities.

Whether the amount is big or small, the indubitable
fact is that US/EU/Japan/OZ are rich and many other
countries are economically and militarily helpless. 
Aid and the removal of oppressive institutions are
the right thing to do.

You can scream at, say, Americans all you like about
the atrocities committed in our name.  Some will be
sympathetic to moral appeals, however weak their
power.  Some will take pity and buy some South
American child a year's worth of meals.  Most people
are immersed in their own problems, and a crisis
here may elevate that concern to one for the
broader working class or "the people" in some
formulation.  But it's hard to see how a crisis
connects people's thinking with the plight of
the underdeveloped countries, nor how the latter
effectively escape the implications of capitalist
hegemony in its present form.

The extent to which capitalism depends on the
misery of certain areas of the world is less
important than how this may be changed.  The
truth will not set anyone free, no matter how
many times it is repeated.  The other side
can convey their own brand of internationalism
a hundred times louder and more frequently.
People who are repelled by this have been
going right to Buchanan more often than left.

So let me repeat that the question is interesting,
but its importance from a political standpoint (not
a moral one) seems to be prone to overstatement.

mbs





[PEN-L:10984] Re: Re: imports

1999-09-14 Thread Bill Burgess

I wrote:
3% does not sound like much (assuming that figure is about right). But if
we assume that imports from non-industrial core countries are goods rather
than services, and that about 2/3 of GDP is services, a more relevant
figure for this discussion is 9%...
Bill Burgess

Brad replied:
No it isn't. The relevant figure for this discussion is 3%--unless 
you're some weird material-physiocrat who doesn't believe that 
services really add value...
Brad DeLong

It't true, I have neo-physiocrat tendencies. Silly me, I still think there
is an important difference between goods and services, especially that they
are not substitutes for each other. If the U.S. and Canada lost our imports
of  nature and labour from other countries we couldn't make it up with more
lawsuits and cosmetic surgery. That is why I think that in this discussion
it is better to measure the impact of trade in terms of the goods economy
rather than the bubble called GDP.

On the other hand, after writing the above I remembered that when tourists
spend money elsewhere this is an import (of tourist services), which are
considerable, so it is probably not right to assume the 3% is all goods.

Bill Burgess





[PEN-L:10980] Re: imports

1999-09-14 Thread Brad De Long

At 01:17 PM 14/09/99 -0400, Brad wrote:

 Imports from non-industrial-core countries equal to 3% of GDP--most
 of which have potential domestic substitute producers who are not
 *that* much more costly...
 Brad DeLong

3% does not sound like much (assuming that figure is about right). But if
we assume that imports from non-industrial core countries are goods rather
than services, and that about 2/3 of GDP is services, a more relevant
figure for this discussion is 9%...

Bill Burgess

No it isn't. The relevant figure for this discussion is 3%--unless 
you're some weird material-physiocrat who doesn't believe that 
services really add value...


Brad DeLong





[PEN-L:10981] Re: Why China Failed to Become Capitalist

1999-09-14 Thread Brad De Long

Brad De Long wrote:

  Imports from non-industrial-core countries equal to 3% of GDP--most
  of which have potential domestic substitute producers who are not
  *that* much more costly...

Are you sure of what you just wrote?  With far reaching mechanization, I
suspect that we would not loose too much by producing textiles in the U.S.,
but what about raw materials?  Think of how sensitive the economy seems to be
to oil prices.

There is a difference between short run and long run. Short-run a big 
rise in the price of oil is very disruptive. In the long run the U.S. 
has lots of coal, lots of shale...

Now access to the U.S. market is very important for Mexico, Thailand, 
India, et cetera. But imports from LDCs are such a small part of GDP, 
and if there is one thing that market economies are good at finding 
it is substitutes...





[PEN-L:10978] Re: Re: Re: Re: Re: Re: Why China Failed toBecome Capitalist

1999-09-14 Thread Jim Devine

I had written: 
According to the US ECONOMIC REPORT OF THE PRESIDENT, 1999, Table B-105,
total imports from non-Industrial countries in the first 3 quarters of 1998
(at an annual rate) equaled 414.9 billion US$, which is more than 45
percent of total US imports. 

wojtek asks:
Is that $415b the value of the imports at their wholesale or retail value?
If the former, the thousand or so percent markup at retail will generate
what, some $4,000 billion in profits for the capitalist class in the US, no?

I'm pretty sure these imports are priced using retail prices. However, we
can't presume that all of the profits are taken by the US capitalist class.
Some go to the rest of the OECD nations' capitalists. Some go to the Third
World's home-grown capitalists. After all, here in LA, I've seen trucks for
the Mexico-based Pan Bimbo company (which produces Wonder-like bread) and a
branch of the Lippobank, the bank associated with those Indonesian richies
who seem to have been involved in one of Clinton's many money-related
scandals. Some go into numbered bank accounts. I'm not sure it matters what
the nationality of the capitalist is. 

In response to Brad's original gee-whiz statistic, Bill Burgess writes: 
3% does not sound like much (assuming that figure is about right). But if
we assume that imports from non-industrial core countries are goods rather
than services, and that about 2/3 of GDP is services, a more relevant
figure for this discussion is 9%, without considering unequal exchange. 

Not only that, but the percentage of the US GDP spent on services is
_rising_. This means that that along with the general rise in the share of
imports from nonindustrial countries in US GDP that I mentioned before,
there's another reason why imports from low-wage areas is rapidly becoming
more important to the US economu.

On this topic, there's an excellent article by Robert Feenstra in the Fall
1998 JOURNAL OF ECONOMIC PERSPECTIVES that sheds dramatic doubt on the
Krugmaneque pooh-poohing of the importance of imports from low wages (that
Brad shares). For example, he calculates the ratio of trade to domestic
value-added of "merchandise" (tangible goods). For the US, this ratio fell
from 14.3 in 1889 to 9.6 percent in 1960 (reflecting the major
deglobalization of the interwar years and only partial recovery after that)
but then _soared_ to 35.8 percent in 1990. 

Further, to quote Dani Rodrik's summary, "If globalization results in the
outsourcing of activities, with the least skill-intensive processes
_within_ manufacturing shifting to developing [sic] countries, skill
upgrading of the type we have observed [i.e., a shift away from demand for
unskilled labor and toward skilled labor in the US] would be the direct
consequence of [increased] trade. In effect, trade and technological change
could be observationally equivalent." Establishmentarian economists have
been blaming the increased wage gap (between the wages at the bottom of the
wage hierarchy and those at the top) on an unexplained _diablo ex machina_
who decided to punish the working poor with "skill-biased technical change"
(p. 6). Feenstra is saying that we cannot presume that the _diablo_ is
there (especially, I might add, since people like Jamie Galbraith have
provided excellent criticisms of this skill bias theory), since the
globalization of trade, including out-sourcing, has a similar impact. 

In the same issue, Maurice Obstfeld points to the fact that (in theory)
capital mobility out of the rich countries tends to hurt workers there (p.
21). He then pooh-poohs this theory, based on what seems to be irrelevant
data. BTW, this fits with the sociology of neoclassical economists I've
noticed (at least in the US). The tribe worships International Trade and
actively attacks those heretics who criticize It, while ignoring the fact
that trade cannot be separated from capital flows. 

Strictly speaking, the worship of free trade doesn't really make sense even
from a neoclassical position, since free markets aren't supposed to produce
good results unless they're perfect, e.g., lacking external costs. But
there are no markets that don't involve external costs, both technical and
pecuniary.

Jim Devine [EMAIL PROTECTED]  http://clawww.lmu.edu/~JDevine





[PEN-L:10977] Re: Re: Re: Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Carrol Cox



Doug Henwood wrote:

 I absolutely agree with Lou Proyect's point about the historical
 importance of imperialism to capitalism; I'm just trying to figure
 out how it matters today.

The evidence that it is (somehow or other) important lies in the ferocity

of the imperialists in defending it. But Doug is correct I believe in
saying
that there is no clear analysis of "How" available.

Query. Say a given corporation has 3% of its capital invested in
Africa. Since the returns are (as has been pointed out in this thread)
low, does not the investment indicate that otherwise the capital
would go begging, and capitalists are apt to become very excited
about even a small percentage of their capital not having a home.
Does this make sense? If not, what are the flaws in it?

Also -- it seems that imperialist theorists and politicians really
believe
in one version of the domino theory: that national liberation is a
contagious
disease. Hence even if a given neo-colony offers no particular economic
value to anyone any attempts on its part to free itself of capital would
potentially infect those areas that are valuable, whether for investment
or raw materials. ? This seems to me to be the most convincing
argument in respect to Yugoslavia.

Carrol





[PEN-L:10975] RE: Fascism

1999-09-14 Thread Craven, Jim

Hi Carrol,

I agree with everything you have written 100%. That is why I also attached
(to provoke thought not as any "proof")the comment by Bertram Gross about
new forms of fascism under new
historical/geopolitical/cultural/political/economic conditions not being a
replica--in forms--of any older or prototypical examples of fascism.

That was only to provoke some thought and discussion and not meant as any
definitive treatment or even shorthand treatement of the subject.

Thanks for your comments and yes, I indeed know very well how genocide can
be conducted easily under the institutional frameworks and mechanisms of
"bourgeois democracy" and about the dangers of "crying wolf" etc.

Thanks,

Jim C.


James Craven
Clark College, 1800 E. McLoughlin Blvd.
Vancouver, WA. 98663
(360) 992-2283; Fax: (360) 992-2863
[EMAIL PROTECTED]
http://www.home.earthlink.net/~blkfoot5
*My Employer Has No Association With My Private/Protected
Opinion*



-Original Message-
From: Carrol Cox [mailto:[EMAIL PROTECTED]]
Sent: Tuesday, September 14, 1999 1:48 PM
To: [EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: Re: [PEN-L:10916] Fascism




"Craven, Jim" wrote:

 "Only one thing could have broken our movement: if the adversary had
 understood its principle and from the first day had smashed with extreme
 brutality the nucleus of our new movement."
 Adolf Hitler (Speech to Nuremberg Congress, September 3, 1933)

 "I am afraid of those who proclaim that it can't happen here. . . .

Jim, this displaces the debate, which is not over whether "it" can
happen here but over the precise nature of the "it" -- which we
need to know if we are going to fight against its appearance.

Remember, one of the foundations for the joke about military
intelligence being an oxymoron is the propensity of generals to
be prepared to fight the last war but not the next war. Focusing
too much on a carelessly defined "it" can have two separate
disastrous consequences: (1) And you should know this better
than anyone, the focus on fascism (and especially on fascism
just defined as nastiness) can obscure just how horrible and
intense repression up to and including genocide can be in a
perfectly sound bourgeois democracy. About half or more
of what often goes into definitions of "what can happen here"
are simple descriptions of what can't happen here because
it has always been here. (2) *If* (as really is possible) the
fascism we are trying to define was in fact historically limited
to a particular conjunction of circumstances, then a focus on
it is preparing for the last war and not looking ahead to the
next war. There is always a danger of losing democratic
rights, of some sort of directly authoritarian and repressive
regime. Just as Hitler was really quite different from Bonaparte,
so the next round of threats of the same genus may look
terribly and unpredictably different specifically. A focus on
fascism can lead to blindness to new dangers.

Sinclair Lewis's *It Can't Happen Here* was a lousy novel -- in
part because Lewis was a lousy novelist but mostly because he
defined the "it" that could or couldn't happen as a mere carbon
copy, ignoring the probability that a U.S. fascist movement would
of course campaign under an anti-fascist banner. My own best
guess as to what an American "Hitler" would look like is Jerry
Brown of California. It wouldn't be "fascism," it would probably
be something worse. "Soft Fascism" made for a good and useful
title, to catch people's attention to certain (dangerous) variations
within u.s. democracy -- but in the long run it is mistaken to play
games with  words in this way.

Carrol





[PEN-L:10974] Re: Re: Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Doug Henwood

Charles Brown wrote:

Charles: Well, they are making them in the "outlands" , ha, ha. But 
seriously, I would be kind of skeptical about the official stats. Or 
maybe it's a critical core of the profits and their source that 
controls the whole strategy of the MNC's.

If there really were vast superprofits to be made by investing in the 
"Third World," there'd probably be more of it. So while the official 
stats may not tell the whole story, they're probably close to telling 
something like the truth.

I absolutely agree with Lou Proyect's point about the historical 
importance of imperialism to capitalism; I'm just trying to figure 
out how it matters today.

Doug





[PEN-L:10970] Re: IMF to become autonomous?

1999-09-14 Thread Rod Hay

Indeed as I indicated divisions between workers of different countries is a 
problem. I don't know the full solution to it. But I don't see how making 
the IMF autonomous is going to help. Or how autonomous means democratic. And 
I don't see how my position is more "economist" than that of Chris or Ajit.



Original Message Follows
From: Chris Burford [EMAIL PROTECTED]


 
 Rod, Will this world government allow workers from all over the world to 
move
 freely and work where ever they please? Free mobility of the workers of 
the
 world would be first and foremost opposed by the workers of the 1st world.
 Cheers, ajit sinha


This not so little problem is indeed a consequence of Rod Hay's strictly
economist approach to world financial institutions.

Chris Burford

London


__
Get Your Private, Free Email at http://www.hotmail.com





[PEN-L:10968] Why China Failed to Become Capitalist

1999-09-14 Thread Louis Proyect

There are no statutes of limitation on imperialism. Just because US
multinationals are ignoring most of Subsaharan Africa today, we can not
forgive or forget that the damage was already done. Walter Rodney's "How
Europe Underdeveloped Africa" leaves no doubt that imperialism left the
continent in a shattered state. The absence of foreign investment today is
not so much a sign of "benign neglect", but rather that the bones have been
already been picked clean. Colin Leys, on the Socialist Register editorial
board, has written an analysis of underdevelopment in Africa that
elaborates on these points. Titled "Rise and Fall of Development Theory",
it attempts to skirt the dialectical poles of the sort of stagist Marxism
represented by James Heartfield and the late Bill Zimmer, both of whom
argue that more foreign investment was needed in Africa if anything, and
"dependency theorists" on the other who blame everything on capitalist
penetration. Leys's basic argument is that Africa is suspended between 2
modes of production. It has not fully uprooted precapitalist social and
economic formations, but at the same time it has not been attractive enough
to outside capitalist investors to warrant the full-scale transformation
that has taken place in much of East Asia, for example.



Louis Proyect

(http://www.panix.com/~lnp3/marxism.html)





[PEN-L:10967] Re: Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Doug Henwood

Charles Brown wrote:

Charles: Given the G-7 ,aren't there only about 7,  main imperialist 
countries ? That's 1.4 to 1.7 main colonies per imperialist center.

Don't forget the Netherlands, Belgium, Switzerland, Scandinavia, 
Spain, etc. There are probably about 20 main imperialist countries 
all together.

Do you have a way of calculating the profits made by imperialism 
from its main investment targets ? Why else would Ford and GM, etc, 
move plants to Mexico and Brazil, etc., except a much higher rate of 
profit ?

Yes, of course, but about 70% of the stock of foreign direct 
investment is inter-imperialist, and the main reason for that is 
penetrating new markets with local production. If you believe the 
official stats, MNCs aren't making outlandishly superprofits on their 
"Third World" investments.

On the other hand, the industrial plants established  in Korea, 
Mexico, Brazil, China (et al ? South Africa) in the last 20 years 
continue the export of capital trend that Lenin (Hobson ?) marked. 
The plantclosing/runaway shop trend of the 80's was not an illusion 
, was it ?

A lot of the "target" countries are becoming foreign investors in 
their own right - e.g. Taiwanese and Korean-owned sweatshops in 
Central America.

Doug





[PEN-L:10965] Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Doug Henwood

Charles Brown wrote:

Wasn't Lenin's idea in _Imperialism_ that around 1900 there was a 
shift from a predominance of export of goods from the core 
imperialist countries (in exchange for raw materials) to a 
predominance of export of capital ? In other words, what Lenin said 
fits with what Brad says: 1900 marked a change from mainly ripping 
off raw materials from the colonies ( as had been occurring with 
cotton) to ripping off super surplus value from the newly 
established proletarians.

Seems to me that there are about 10-12 countries that are heavy 
foreign investment targets - China, Mexico, Brazil, some Southeast 
Asian countries, etc. - but most of the rest of the so-called Third 
World - Africa, much of South Asia, the poorer countries of the 
Western Hemisphere - is pretty peripheral to capital's concerns in 
1999.

Doug





[PEN-L:10964] imports

1999-09-14 Thread Bill Burgess

At 01:17 PM 14/09/99 -0400, Brad wrote:

Imports from non-industrial-core countries equal to 3% of GDP--most
of which have potential domestic substitute producers who are not
*that* much more costly...
Brad DeLong

3% does not sound like much (assuming that figure is about right). But if
we assume that imports from non-industrial core countries are goods rather
than services, and that about 2/3 of GDP is services, a more relevant
figure for this discussion is 9%, without considering unequal exchange. 

Bill Burgess





[PEN-L:10961] Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Charles Brown

Wasn't Lenin's idea in _Imperialism_ that around 1900 there was a shift from a 
predominance of export of goods from the core imperialist countries (in exchange for 
raw materials) to a predominance of export of capital ? In other words, what Lenin 
said fits with what Brad says: 1900 marked a change from mainly ripping off raw 
materials from the colonies ( as had been occurring with cotton) to ripping off super 
surplus value from the newly established proletarians. 

 Export of capital means setting up capitalist relations of production in the 
colonies, and setting up new markets (i.e. places to sell goods) in the colonies.  
These newly established ( and increasing numbers of ever since) capitalists relations 
of production and markets in the colonies were the basis for the superprofiteering.  
Lenin's point was not that consumers in the imperialist countries were getting lots of 
goods  (imports) from the colonies, but that the imperialists were getting a higher 
rate of surplus-value from the newly established wage-laborers in the colonies than 
they were from the workers in the core countries.  This extra surplus value was a 
basis for some concessions to workers in the imperialist core ( thus a basis for 
opportunism among those workers). That is with the rate of profit so high in the 
colonies, the bourgeoisie were not so pressed to increase the rate of surplus value in 
the imperialist centers.


Charles Brown


 Brad De Long [EMAIL PROTECTED] 09/14/99 09:50AM 

I would suggest another
dimension to your equation.  The U.S. is able to treat many of its people
relatively well (materially) because of the pressure it exerts on other
countries.  We get clothes made for $.15-.20 per hour,

Imports from non-industrial-core countries equal to 3% of GDP--most 
of which have potential domestic substitute producers who are not 
*that* much more costly... It is hard to argue that a shift to 
complete autarky vis-a-vis the periphery would reduce U.S. real 
material standards of living by more than 3%, and that only under the 
assumption that we in the U.S. are only half as productive on average 
at making import-competing as export goods.

You can get big numbers for the economic impact of trade. But you 
have to work very hard to make dynamic learning-by-doing effects big. 
And the part of trade that then is a major source of wealth is trade 
with the rest of the industrial core...

Lenin's idea that the prosperity of the industrial core is critically 
linked to a poor periphery from which the core can buy raw materials 
was perhaps true (but perhaps not) in 1900. (The best example of 
this, in my view, is the U.S.-British cotton trade of the first half 
of the nineteenth century.) But it is now 2000, not 1900. And the 
pattern of trade and wealth creation is very, very different...


Brad DeLong


cheap resources ...
all which help U.S. consumers (but of course not workers).

This I don't see at all. The consumers who shop for clothes at Target 
and T.J. Maxx *are* workers (well, are me too)...


Brad DeLong





[PEN-L:10962] Re: Re: Re: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Wojtek Sokolowski

At 06:50 AM 9/14/99 -0700, Brad DeLong wrote:
Lenin's idea that the prosperity of the industrial core is critically 
linked to a poor periphery from which the core can buy raw materials 
was perhaps true (but perhaps not) in 1900. (The best example of 


Was not that originally Rosa Luxemburg's idea?  The critical linkage being
constant expansion, cheap labor power source, new markets rather than
straightforward expolitation.  Using an analogy to automobile - the
periphery is a radiator rather than a gasoline tank - its main function is
dissipation of excess heat rather than the provision of the propellant.
Since from a marxist perspective, it is the "excess heat" in the organic
composition of capital that will bring capitalism to its meltdown - third
world plays an important function of absobing that heat and keeping
capitalism alive.  If that is the case, that is even more true today than
it was in 1900.

 

This I don't see at all. The consumers who shop for clothes at Target 
and T.J. Maxx *are* workers (well, are me too)...




Let's see...  A T-shirt that cost $0.50 to produce in one of Asia's
sweatshops sells at $12 at Target, which gives  what -  about 2,500% profit
margin.  How is that supposed to benefit the working class buyer is beyond
me - unless perhaps we accept the advertisers' Orwellian logic that
spending is saving. 

wojtek





[PEN-L:10960] Re: The Dalai Lama on Marxism

1999-09-14 Thread Jim Devine

As the DL himself [Himself?] points out below, this kind of thing has been
said by the Pope (though he mostly criticizes Marxism for its materialism
and atheism), so we can recycle the debates concerning the progressive vs.
reactionary nature of the Pontiff. Both the DL and the Pope come from
precapitalist cultures with major emphases on the production for use rather
than production for exchange-value and surplus-value. The emphasis on
production for use is shared by the socialist traditions, though the latter
typically embrace "modernism," seeing potential gains from the application
of modern science under different social relations of production than those
now predominant. 

At 12:18 AM 9/14/99 -0400, you wrote:

With some of the debates recently on the progressive vs. reactionary nature
of the Dalai Lama, this forwarded post seems interesting.--Nathan Newman

-Original Message-
[mailto:[EMAIL PROTECTED]] On Behalf Of ANDERSON DAVID

"Of all the modern economic theories, the economic system of Marxism is
founded on moral principles, while capitalism is concerned with only with
gain and profitability.  Marxism is concerned with the distribution of
wealth
on an equal basis and the equitable utilization of the means of production.
It is also concerned with the fate of the working classes--that is the
majority--as well as the with the fate of those who are underprivileged and
in need, and Marxism cares about the victims of minority-imposed
exploitation. For those reasons the system appeals to me, and it seems fair.
I just recently read an article a paper where his holiness the Pope also
pointed out some positive aspects of Marxism...
   The failure of the regime in the Soviet Union was, for me not the failure
of Marxism but the failure of totalitarianism. For this reason I think of
myself as half-Marxist, half-Buddhist."

The Dalai Lama in Beyond Dogma: Dialogues and Discourses

Hello Dalai!

Jim Devine [EMAIL PROTECTED]  http://clawww.lmu.edu/~JDevine





[PEN-L:10959] Re: Re: Re: Re: Why China Failed to BecomeCapitalist

1999-09-14 Thread Jim Devine

Michael writes: 
I would suggest another
dimension to your equation.  The U.S. is able to treat many of its people
relatively well (materially) because of the pressure it exerts on other
countries.  We get clothes made for $.15-.20 per hour,

Brad replies: 
Imports from non-industrial-core countries equal to 3% of GDP--most 
of which have potential domestic substitute producers who are not 
*that* much more costly... It is hard to argue that a shift to 
complete autarky vis-a-vis the periphery would reduce U.S. real 
material standards of living by more than 3%, and that only under the 
assumption that we in the U.S. are only half as productive on average 
at making import-competing as export goods.

According to the US ECONOMIC REPORT OF THE PRESIDENT, 1999, Table B-105,
total imports from non-Industrial countries in the first 3 quarters of 1998
(at an annual rate) equaled 414.9 billion US$, which is more than 45
percent of total US imports. (I count the countries of Eastern Europe as
low wage areas, since that is what the US victory in the Cold War caused
them to be.) With nominal GDP for those three quarters averaging at $7464
billion, the total imports from the non-Industrial add up to about 5.5
percent, not 3 percent. This ratio is rising (as part of what's called
"globalization"), making Brad's stat obsolete. 

We should also remember that the US gets almost 55 percent of its imports
from Industrial countries. These countries in turn buy a lot of raw
materials from low-wage countries. So the US gets subsidized indirectly.

We should also bring in the fact that low wages in the non-Industrial areas
subsidize the rich areas year after year, allowing the accumulation of
benefits. And that the benefits of First World domination of the Third
World are not simply a matter of getting cheap imports but also of
preventing competition in export markets. For example, the British push for
free trade in the US (before 1860) and in Latin America helped delay or
even prevent the rise of competitors. 

You can get big numbers for the economic impact of trade. But you 
have to work very hard to make dynamic learning-by-doing effects big. 
And the part of trade that then is a major source of wealth is trade 
with the rest of the industrial core...

Don't you think that England's smashing of the home-grown textile industry
in India (not to mention the syphoning off of much of India's economic
surplus and the dominattion of its economic policy by outsiders for more
than a century) prevented the latter country from any possibility of having
an industrial revolution at a time when such a thing could be bought on the
cheap?  That seems a crucial case of "dynamic learning-by-doing effects."
It can be seen in Latin America on a smaller scale, as England encouraged
those countries to avoid having their own industrial revolutions.

Lenin's idea that the prosperity of the industrial core is critically 
linked to a poor periphery from which the core can buy raw materials 
was perhaps true (but perhaps not) in 1900. (The best example of 
this, in my view, is the U.S.-British cotton trade of the first half 
of the nineteenth century.) But it is now 2000, not 1900. And the 
pattern of trade and wealth creation is very, very different...

Last time I checked, most oil -- so crucial to Industrial economies -- came
from outside of the Industrial world (Alaska and the North Sea
notwithstanding). I remember that George Bush was willing to fight (and
even risk soldiers' lives!) Iraq when that a small bit of that oil supply
was threatened. 

cheap resources ... all which help U.S. consumers (but of course not
workers).

This I don't see at all. The consumers who shop for clothes at Target and
T.J. Maxx *are* workers (well, are me too)...

The US is undergoing a transition from the era when US workers benefited
from cheap imports to an era when US workers lose their jobs (and/or suffer
wage cuts) because capital moves where wages are low (when feasible),
usually taking high-productivity technology with it. 

Jim Devine [EMAIL PROTECTED]  http://clawww.lmu.edu/~JDevine





[PEN-L:10958] Re: Re: IMF to become autonomous?

1999-09-14 Thread Charles Brown

Yes, one of those honest statements that slips out now and again.

To press it a little further, using the old Marxist metphor, the U.S. government 
-Presidency, including The Treasury, Congress, Judiciary, Military - is still sort of 
the executive controlled by the Board of Directors (central committee) of the 
Dictatorship of Transnational Bourgeoisie.  The U.S. economic policy (off shore and 
on)  is not aimed at the best interests of the American People in their tens of 
millions or even the federal top bureaucrats, but the maximum profits for the owners 
of big private property. 

Can there be any doubt ? The U.S/IMF top bureaucrats, Clinton, the Treasury Secretary, 
Cadmusses (spelling) are not the actual rulers , but top servants of the rulers, 
aren't they ? "Who"  is the ruling class, "The Board of Directors of the whole World" 
? I know conspiracy theory is not favored, but the "system" is not like an mechanical 
object at the top. There are people there commanding anonymously, aren't there ?  It's 
not Morgan's ghost running things on automatic.

I don't know what we can do about it. But I refuse to be naive.


Charles Brown

 Doug Henwood [EMAIL PROTECTED] 09/14/99 12:14PM 
Charles Brown wrote:

But doesn't the central committee of the dictatorship of the 
bourgeoisie sit above both the IMF and its member governments, 
really , anyway ?
"Who" is the IMF ?

"The IMF is a toy of the United States to pursue its economic policy 
offshore." - MIT econ prof Rudi Dornbusch (the same guy who said that 
the upside of the Asian crisis was that Korea became a wholly owned 
subsidiary of the U.S. Treasury)

Doug





[PEN-L:10954] Why China Failed to Become Capitalist

1999-09-14 Thread Louis Proyect

Lenin's idea that the prosperity of the industrial core is critically 
linked to a poor periphery from which the core can buy raw materials 
was perhaps true (but perhaps not) in 1900. (The best example of 
this, in my view, is the U.S.-British cotton trade of the first half 
of the nineteenth century.) But it is now 2000, not 1900. And the 
pattern of trade and wealth creation is very, very different...

Brad DeLong

CAPITALISM AND INEQUALITY AMONG NATIONS

Born in Western Europe, industrial capitalism spread in the course of a
century over the entire world. But this expansion assumed a very special
form: all the countries in the world became outlets, sources of raw
material and, to a smaller extent, fields of investment for capital. But
the capitalist mode of production, and in particular the capitalist
factory, touched only the periphery of the economic life of three
continents. This is, briefly, the cause of the phenomenon is today known,
shamefacedly, by the euphemism of "underdevelopment".

While capitalism has spread all over the world, the greater part of the
world has experienced only its disintegrating effects, without benefit from
its creative side. Indeed, the unlimited industrial advance of the Western
world has been possible only at the expense of the under-developed world,
which has been doomed to stagnation and regression. Three-quarters of a
century after the start of the era, the United Nations have been compelled
to recognise that in spite all the plans for aid to the under-developed
countries, countries are becoming richer whereas the poor ones are becoming
poorer.

The present division of the world between industrialised nations and
developed nations is not the result of an inescapable whim of nature, of an
unequal distribution of natural resources, or of a comparatively large and
small density of population as between this country and that. It is true
that capitalist industry was established first place near substantial
deposits of coal. But, while there is plenty of coal in England, Belgium,
the Ruhr, the North and East of France--areas which were rapidly
industrialised at the beginning of ineteenth century--immense quantities of
coal are also to be found in easily workable conditions, in the Donbas, the
Urals, Mali, India and South Africa, where industrialisation only began a
century later, and in some cases has still not begun.

Though the discovery of oilfields changed the economic history of the
United States, even bigger oilfields existed at the same time in the Middle
East, the Sahara and Libya, which did not begin to be developed until much
later and then on a relatively modest scale.

In order to refute the view that the degree of economic development or
industrialisation depends on the density of population, it is enough to
recall that areas so highly industrialised as Germany, the Netherlands or
Belgium have today, and had already at the beginning of the nineteenth
century, a density of population much greater than is found in countries
such as Spain, Portugal, Turkey or Brazil. India and Japan were both
under-developed countries in 1850. The country which became industrialised
the sooner was also the one with the higher density of population.

In reality, the division of the world into "rich" and "poor" nations can be
explained only by historical and social reasons, and to a large extent by
the history of capitalism itself.

True, as we have shown above, the prehistory of capitalism, the extent of
accumulation of commercial capital, the degree of penetration of money
economy into agriculture, the totality of socio-economic conditions
favourable or unfavourable for the application of scientific techniques to
production, determined to a large extent the birth of industrial capitalism
in Western Europe, and held back the same process in India, China, Japan,
Java and other essentially agricultural civilisations.

Nevertheless, this backwardness was not very marked in the middle of the
eighteenth century, and above all was not insuperable. If it had become so
a century later, the catastrophic aspect of under-development was due first
and foremost to the particular way, that is, a violent and plundering way,
in which contact was made between these two worlds.

In the decisive formative period of the capitalist mode of production,
extending from the sixteenth to the end of the eighteenth century, the
creation of the world market was of crucial importance. Its main results
for the primitive accumulation of capital in Western Europe have been
examined above. But all through this period of the birth of capitalism the
two forms of surplus-value appeared at each step. On one hand, it was the
outcome of the surplus labour of the wage workers hired by the capitalists;
on the other, it was the outcome of vales stolen, plundered, seized by
tricks, pressure or violence from the overseas peoples with whom the
western world had made contact. From the conquest and pillage of Mexico and
Peru 

[PEN-L:10952] Re: Re: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Brad De Long

Brad, this is the first time that you have acknowledged context in this
sort of discussion.


My my...

I would suggest another
dimension to your equation.  The U.S. is able to treat many of its people
relatively well (materially) because of the pressure it exerts on other
countries.  We get clothes made for $.15-.20 per hour,

Imports from non-industrial-core countries equal to 3% of GDP--most 
of which have potential domestic substitute producers who are not 
*that* much more costly... It is hard to argue that a shift to 
complete autarky vis-a-vis the periphery would reduce U.S. real 
material standards of living by more than 3%, and that only under the 
assumption that we in the U.S. are only half as productive on average 
at making import-competing as export goods.

You can get big numbers for the economic impact of trade. But you 
have to work very hard to make dynamic learning-by-doing effects big. 
And the part of trade that then is a major source of wealth is trade 
with the rest of the industrial core...

Lenin's idea that the prosperity of the industrial core is critically 
linked to a poor periphery from which the core can buy raw materials 
was perhaps true (but perhaps not) in 1900. (The best example of 
this, in my view, is the U.S.-British cotton trade of the first half 
of the nineteenth century.) But it is now 2000, not 1900. And the 
pattern of trade and wealth creation is very, very different...


Brad DeLong


cheap resources ...
all which help U.S. consumers (but of course not workers).

This I don't see at all. The consumers who shop for clothes at Target 
and T.J. Maxx *are* workers (well, are me too)...


Brad DeLong





[PEN-L:10951] The Dalai Lama on Marxism

1999-09-14 Thread Nathan Newman


With some of the debates recently on the progressive vs. reactionary nature
of the Dalai Lama, this forwarded post seems interesting.--Nathan Newman

-Original Message-
[mailto:[EMAIL PROTECTED]] On Behalf Of ANDERSON DAVID

"Of all the modern economic theories, the economic system of Marxism is
founded on moral principles, while capitalism is concerned with only with
gain and profitability.  Marxism is concerned with the distribution of
wealth
on an equal basis and the equitable utilization of the means of production.
It is also concerned with the fate of the working classes--that is the
majority--as well as the with the fate of those who are underprivileged and
in need, and Marxism cares about the victims of minority-imposed
exploitation. For those reasons the system appeals to me, and it seems fair.
I just recently read an article a paper where his holiness the Pope also
pointed out some positive aspects of Marxism...
   The failure of the regime in the Soviet Union was, for me not the failure
of Marxism but the failure of totalitarianism. For this reason I think of
myself as half-Marxist, half-Buddhist."

The Dalai Lama in Beyond Dogma: Dialogues and Discourses





[PEN-L:10949] BLS Daily Report

1999-09-14 Thread Richardson_D

BLS DAILY REPORT, MONDAY, SEPTEMBER 13, 1999

__Finished producer prices rose 0.5 percent in August, boosted by a hefty
3.7 percent rise in energy costs from July, BLS reported.  The overall
producer price index for finished goods rose 0.2 percent in July and 0.1
percent in June.  Over the 12-month period ended in August, the PPI rose an
unadjusted 2.3 percent--mostly due to a 10.9 percent rise in the finished
goods index.  Prices for finished goods excluding food and energy prices --
the "core" index -- actually fell 0.1 percent in August, however, after
posting no change in July.  One question contemplated by analysts is how
long consumer inflation will remain isolated from such dramatic gains in
energy prices. ...  (Daily Labor Report, page D-1).
__A closely watched measurement of prices paid to producers fell, which
analysts took as a sign that inflation remains tame.  Overall, the PPI for
finished goods other than food and energy fell 0.1 percent, for a
year-over-year increase of just 1.3 percent, which economists said was
benign.  Economists and investors focused on this core PPI rather than the
overall PPI, largely because of sharp spikes in the prices of gasoline,
pork, soft drinks, and other food and energy items. ...  (George Hager in
Washington Post, Sept. 11, page E1). 
__The wholesale cost of food for the table and gasoline for the car rose,
but almost everything else was cheaper. ...  (Tristan Mabry in Wall Street
Journal, page A2).
__In the 1970s, a sudden jump in the price of energy or some other important
commodity inevitably signaled a nasty chain reaction that would send
inflationary ripples through the whole economy.  These days, the prices of
oil and other raw materials are climbing once again.  But, so far, there are
few signs of a ripple effect. ...  (Sylvia Nasar in New York Times, Sept.
11, page B4). 

Martin N. Baily, the chairman of the President's Council of Economic
Advisers, said that it is too soon to conclude that the recent upswing in
productivity is permanent. ...  Although government data show productivity
-- that is, output per hour -- was up a sizzling 2.8 percent over the last
12 months, the new CEA chief asserted that the administration would have to
see more data before it is convinced that this "trend" productivity rate has
permanently moved beyond the 1.3 percent average of the last few decades.
...  (Daily Labor Report, page A-2).
  
DUE OUT TOMORROW:  1999 Report on the American Workforce Released


 application/ms-tnef


[PEN-L:10947] Re: Re: Why China Failed to Become Capitalist

1999-09-14 Thread Wojtek Sokolowski

At 08:31 PM 9/13/99 -0700, Brad DeLong ponders:
Brezhnev. I know how to evaluate material welfare. I don't know how 
to evaluate the bad karma from living in a society in which the 
police shoot children on the one hand or living in a society in which 
dissidents are sent to mental hospitals on the other...



Brad, that is really a no-brainer, so i am nonplussed by your hesitation.
You can choose to be a dissident, but you cannot choose to be a poor child
- so there is really no choice for a rat-choice person here.

Martyrdom is the free choice of postmortem glory over the comfort of
mundane life.  So noone else but the individual himslef should be held
responsible for making that choice.  But noone chooses one's parents or
their social class.  Hence, every rat-choice person should respect not only
the choice of a dissident to martyrdom but also a political systema that
makes that choice possible - and condemn the system that mistreats people
because of their ascribed status.

wojtek





[PEN-L:10945] Disappearing wild salmon

1999-09-14 Thread Louis Proyect

NY Times, Tuesday, September 14, 1999

As a Species Vanishes, No One Can Say Why

By WILLIAM K. STEVENS

On a plate, where most people encounter them, all Atlantic salmon are
pretty much alike: orange-pink fillets or steaks that melt in the mouth
when baked, broiled, grilled or poached, or when smoked and combined with
an onion slice and cream cheese on a bagel. 

But alive, in their North Atlantic habitat, salmon today come in two basic
varieties, farm-bred and wild. The wild fish are sleek, silvery torpedoes
that range from one side of the ocean to the other and whose beauty, heart
and acrobatic grace have earned them a reputation as the aristocrat of
aristocrats among game fish. 

The farm fish spend cramped lives in ocean pens just off the shorelines of
North America, Europe and Chile. Comparatively short and fat, often with
fins frayed or eroded as a result of close confinement, they are a marine
equivalent of domesticated cattle. 

The odds are overwhelming that what a diner encounters is a farm fish, and
that fact reflects a striking reversal: wild salmon, once abundant, are now
outnumbered by their domesticated cousins at least 50 to 1, and probably
more. 

According to recent estimates, the wild salmon population is in what
appears to be an accelerating downward spiral; the number that are
returning to spawn in their native streams has plummeted to what some
scientists say is an all-time low. "Something terrible is happening in the
ocean," said Bill Taylor, the president of the Atlantic Salmon Federation. . .

The problem, scientists say, is not that too few salmon are being hatched
in the wild. While many spawning rivers have been ruined by pollution, dams
and silty runoff from farms and logged forests, experts say that there is
still enough freshwater habitat on both sides of the Atlantic to produce
reasonable numbers of young fish. But it appears that once in the ocean,
proportionately fewer of these salmon are surviving to return to their
natal rivers when it is their turn to reproduce.

Commercial fishing that began in the 1960's has commonly been blamed for
the longer-term decline. 

But fishing off North America and Greenland, in the area where salmon of
North American origin congregate at sea, has been halted by international
agreement, and yet North American salmon are still disappearing. 

On the Miramichi, only about 1 percent of the young, first-year fish that
go to sea return to spawn, according to the Atlantic Salmon Federation, an
international nonprofit conservation group based in St. Andrews, New
Brunswick. 

Ten to 15 years ago, 6 percent to 12 percent returned -- at a time when
large-scale commercial fisheries were taking wild salmon wholesale. 

Many things, including natural factors, could bring on a population crash
by breaking the salmon's classic life-cycle chain. Among possible causes
being investigated are a changing climate that alters water temperature;
competition, genetic weakening and disease transmission from escaped farm
fish, and increased killing of salmon by seals and other predators. . .

But it seems clear, Mr. Taylor said, that apart from exceptions like the
Kola Peninsula and Iceland, "there is not very much good news." 

While the number of salmon returning to spawn in their native rivers is the
lowest on record, Dr. Windsor said, it is not clear whether it is the
lowest ever; records have been kept only since 1960. 

"But," he said, "one has the feeling that things are not good for the
salmon." 

Fish populations, like those of almost all creatures, fluctuate naturally,
but scientists say that several new factors might be having an impact on
wild salmon. 

One, conservationists say, might be the impact of farm fish on wild ones. 

While no one has any solid numbers, estimates of the number of farmed
Atlantic salmon off Europe, eastern Canada, Maine, the Pacific coast of
North America and Chile run from 100 million to 200 million each year. 

The potential threat to wild salmon posed by farmed ones is said to be
threefold. 

First, it is argued, the farm fish are bred for selected characteristics
like growth rate and tameness, and this could make them less genetically
diverse and so less suited for survival in the wild. 

The concern is that when they escape and breed with wild fish, they may
reduce the ability of the offspring to survive. 

Surveys on the Magaguadavic River in southern New Brunswick have found that
fish escaped from offshore farm pens outnumbered wild ones by up to eight
to one, and Dr. Windsor said large numbers had escaped in Europe. 

Experts say they have no difficulty distinguishing the two varieties. 

The farm fish "looks like a football as opposed to a sleek, well-tuned
muscular fish," Mr. Taylor said. 

Second, farm fish may compete with wild ones for habitat and food. Third,
diseases and parasites are said to flourish in salmon farm pens, and these
may be transmitted to wild fish. 

Two parasites in particular, tiny brown sea 

[PEN-L:10938] Re: Re: IMF to become autonomous?

1999-09-14 Thread Ajit Sinha

Rod Hay wrote:

 Globalisation is a fact that lefties have to deal with. It is futile to
 oppose it. Chris is pointing in the right direction but he is point at the
 wrong path. Capitalism may have some room for progressive action. There are
 still feudal institutional remnants around the world. But it is not the
 place of leftist to cheer the progress of capitalism. Or to worry about the
 institutional arrangements of international financial regulators. It is the
 place of leftist to champion the rights of workers. To insist that workers
 have their rights inforced, that everyone has enough to eat, that health
 care be available to those who need it, that good free education be
 available, etc., etc., etc. It is this opposition that will build socialism
 not an uncritical promotion of elite institutional reform. World government
 is of interest only because it helps break down national barriers to the
 self-organisation of the working classes of the world.

__

Rod, Will this world government allow workers from all over the world to move
freely and work where ever they please? Free mobility of the workers of the
world would be first and foremost opposed by the workers of the 1st world.
Cheers, ajit sinha



 Rod Hay
 [EMAIL PROTECTED]
 The History of Economic Thought Archives
 http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/index.html
 Batoche Books
 http://members.tripod.com/rodhay/batochebooks.html
 http://www.abebooks.com/home/BATOCHEBOOKS/

 __
 Get Your Private, Free Email at http://www.hotmail.com






[PEN-L:10929] Re: Re: Re: Graying Professoriate

1999-09-14 Thread Chris Burford

At 01:33 13/09/99 -0700, you wrote:
I will resist the temptation to flame.

My comments were based in part on my own experience.  As pennelers know, I am
one of the last people on this list who would be described as a "ghetto
leftist/marxist".  And I have long been involved in many projects of a
reformist nature, where I have worked side-by-side with mainstream
economists.  But I'm not the issue.

Nothing personal was intended at all. I was commenting on the theme in
general, and rather agreed with your points. 


The real point is that it doesn't matter whether one practices this or that
style of political economy.  The forces at work are structural, as I tried to
make clear, and broadly exclusionary.

I read your points as saying among other things that leftists have to get
more papers published. For this  topics have to be taken up that are
topical and which can be illuminated from a marxist point of view even if
not too stridently. Reform and perspectives in the world financial system
should be one such subject. No?

Chris Burford

London





[PEN-L:10930] Re: Re: IMF to become autonomous?

1999-09-14 Thread Chris Burford

At 10:56 13/09/99 -0400, you wrote:
I can assure you that any proposal for the IMF to become more independent
of member governments will be DOA in Washington. That's a personal
guarantee. I doubt that IMF officials would dare to embrace such a
proposal, but I would be delighted if they did so: we'll squash them.

-bob


---
Robert Naiman [EMAIL PROTECTED]
Preamble Center
1737 21st NW
Washington, DC 20009


The attack will have to be more subtle. And it will be. Meanwhile the
missing billions of the Russian loan are embarrassing. Gordon Brown would
not have been made chair of this "interim" committee of the IMF if he was
seen by the US as a threat, but he still has the potentiality to scramble
the frames of reference and pose the questions in different ways. 

Brown will be very diplomatic but there is no reason why he should not
subtly exploit the embarrassment to have an opportunity to make his own
mark on history.



Charles Brown commented

But doesn't the central committee of the dictatorship of the bourgeoisie
sit above both the IMF and its member governments, really , anyway ? 
"Who" is the IMF ?

You mean the executive committee? and you are referring to the US
government? Interesting point but when we come to look at these things
close up they are not homogeneous entities. They have their own divisions
within them. Also I would suggest that capitalism has developed to a size
where some of its interests are not mainly located in a particular state
but are located in the globe. 



Rod Hay wrote


The issue of world government is much more complicated than Chris indicates. 

I am sure that is right. I wanted to risk the subject and get some debate
going by writing up the news reports about this Geneva report on the IMF.

I don't see how the IMF could be made independent of the USA. The technical 
constitution may be rewritten, but the practical matter is that the USA 
would not agree unless it a strong say in who these technical experts were. 
Without approval no appointment.

Sure. It cannot be made totally independent. The Geneva Report seems to
suggest some technical devices to make them *less* immediately dependent -
longer term offices and a code of practice etc.


A world government is more likely to come about in the same way that 
national governments did by the force of arms. That is the way it happened 
in Britain, France, the USA, etc. That is the way it will happen in the 
world. It will not happen by way of a committee report in Geneva.

It will come about pragmatically. I agree it is like the nation states
being formed at the end of the middle ages by all sorts of semi-random
iniatives, and coalescences. Part of that will be about who manages
international armed forces. The US did not get it all their own way. The
British general defied the US general at Pristina airport and failed to put
tanks on the runway to block the Russians landing. He got away with it, and
the British defence minister got made head of NATO. 

Whether Europe is dependent on US arms to sort out a conflict in Moldova in
2005 will matter. But I would have thought the big decisions will be about
the economic trading blocs.



Globalisation is a fact that lefties have to deal with. It is futile to 
oppose it. 

Good


Chris is pointing in the right direction but he is point at the 
wrong path. Capitalism may have some room for progressive action. There are 
still feudal institutional remnants around the world. But it is not the 
place of leftist to cheer the progress of capitalism. Or to worry about the 
institutional arrangements of international financial regulators. It is the 
place of leftist to champion the rights of workers. To insist that workers 
have their rights inforced, that everyone has enough to eat, that health 
care be available to those who need it, that good free education be 
available, etc., etc., etc. 

Important, but to limit the struggle to this is economist. 

Even more important than trying to get more buns for the workers is to take
over the bakery.


It is this opposition that will build socialism 
not an uncritical promotion of elite institutional reform. World government 
is of interest only because it helps break down national barriers to the 
self-organisation of the working classes of the world.

No no. As with the individual state, so the argument also applies to the
world: "the first step in the revolution of the working class is to raise
the proletariat to the position of ruling class, to win the battle of
democracy." 

"Centralisation of credit in the hands of the state, by means of a national
bank with state capital and an exclusive monopoly."

Unless we watch the skirmishing about the IMF we will not be able to
formulate demands that will initially weaken the hold of the capitalists
over the IMF and then take it from them, perhaps after restructuring into a
more appropriate institution. But there should be no compromise on the
ultimate objective: the 

[PEN-L:10898] Re: Re: Varoufakis book as course textbookaccompaniment

1999-09-14 Thread Rob Schaap

G'day Michael,

Is Stretton's *Political Essays* (1987) available in the UK?  I ask because
Oz is his focus in this excellent collection of essays.  But then, the
issues he writes about are as central to the Pommie or Kiwi experience as
they are here.  His essays on 'deregulation', the damage wrought by 'sloping
credit' in the context of volatile inflation (and, boy, did that one come
home to roost six months later), trying to make sense of social democracy in
an institutional setting that rewards desertion from principle, and the need
for political self-awareness and the dangers of narrowness in economic
explanation - well, they're ALL terrific actually.  Something for everybody,
and the sort of thing an economics teacher could use to instil the values of
general knowledge, looking out the window once in a while, and applying
several modes of thought to each problem.  In short, the voice of the sort
of public service that built a damned comfy little society (comparatively
speaking, anyway) and the one we've spent thirteen years consigning to the
dustbin.  

Methinks our order is gonna learn the hard way how much it depended on these
types, and how hard it is to get their like back.  

Oh, well.  Worse is better, right?  

Right?

Cheers,
Rob.

PS.  Enjoyed this little Keaneyism:  "Meanwhile, that glorious exception to
the otherwise universally
applicable law of diminishing marginal returns, the universal applicability
of marginal analysis."

--
 From: "Michael Keaney" [EMAIL PROTECTED]
 To: [EMAIL PROTECTED] 
 Subject: [PEN-L:10895] Re: Varoufakis book as course textbook
accompaniment
 Date: Mon, 13 Sep 1999 10:09:35 + 
 

Bill Lear wrote:

Folks here might be interested in Yanis Varoufakis, *Foundations of
Economics: A Beginner's Companion* (Routledge, 1998), which I think
might make a very useful supplement to a standard textbook.

I would second that recommendation wholeheartedly. Varoufakis is very
readable, and is eager to engage readers in critical appraisal of the
"truths" they would otherwise forcibly digest. I reviewed the MS of this
for
Routledge.

Another MS I reviewed for Routledge, which that publisher eventually
refused, but which will now see the light of day thanks to the folks at
Pluto Press, is "Economics: A New Introduction", by Hugh Stretton. It is
being launched at this fall's European Association for Evolutionary
Political Economy conference in Prague. Further details of it can be found
at

https://secure.metronet.co.uk/pluto/cgi-bin/web_store/web_store.cgi?sc_quer
y
_subject=Economics

It's an excellent, thoroughly heterodox introduction, quite unlike anything
I've seen before. By all means give it a look.

Pluto is also going to publish Doug Dowd's latest, entitled "Triumph or
Calamity: A History of Capitalism and its Dismal Science".

Michael