Peace and imperialism is an oxymoron.
Private capital has failed to reduce poverty and inequality – on the contrary. It has failed to invest in the infrastructure and technology to raise living standards globally and reduce carbon emissions – on the contrary, fossil fuel production and profits continue to rise. It’s clear, even if the IMF experts do not admit it, that public investment for common good should replace capitalist investment for profit to meet the needs of the many and to introduce the technology to reduce emissions and expand vaccines And fossil fuel companies need to be brought under public ownership and control and phased out. Global coordination is impossible while imperialist powers dictate the terms. Peace and imperialism is an oxymoron.
Inflation, risk of global recession, growing inequality and rising debt for the global south, global warming, war – I could go on. These are the fault-lines exhibited in the world economy in 2022. What is to be done about it? It is revealing to consider the solutions offered by analysts writing for the IMF in its monthly Finance and Development (F&D) journal.
The new chief economist for the IMF, Pierre-Oliver Gourinchas kicks off in the June issue of F&D. “Like an earthquake, the war has an epicenter, located in Russia and Ukraine. The economic toll on these two countries is extremely large.” Gourinchas lists the toll. The first impact is on the price of commodities. Second, trade flows have been heavily disrupted, Third, the war caused financial conditions to tighten.
He continues: “the earthquake analogy is perhaps most apt because the war reveals a sudden shift in underlying…
View original post 1,815 more words
DAMIJAN blog 