Wednesday, May 10, 2006

Globalisation....

In order to examine the implications of globalisation, let us first look at the problems faced by the global economy. We would then examine how helpful this process is likely to be to address these problems.
Generally speaking, I would like to suggest that effective working of the global economy should include policies or mechanisms to address the following five interrelated problems;
1 - “ Marx problem”: The problem of labour discipline. That is to say that the capitalists should ensure that workers work hard enough to maintain the profitability of capitalist production.
2 - “ Keynes problem”: The problem of effective demand. That is; the ability of capitalists to find markets for their products.
3 - “ Minsky problem”: The problem of financial stability. To ensure that markets are stable enough to prevent bankruptcies, financial panics, debt deflation and depression .
4 - “ Kalecki problem”: The problem of competition. The ability of capitalists to maintain high enough profit margin in the face of domestic and foreign competition.
5 - “ Gramsci problem”: The problem of hegemony. This concerns the necessity to form a political bloc which is coherent and co-operative enough to manage the global economic and political system.

Looking at these problems would be the subject matter of my future posts, but, in the meantime, I would appreciate it if you could kindly share your views on them with me:
What do you think about them?
Do you support this approach to examine the global economy, if not, please tell me why?
More importantly, what is your alternative approach?

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