Sunday, December 23, 2012


The recent austerity programmes in Europe are funded by the Central Bank , but run by templates of the IMF.

The track-record of the IMF in other places has caused a lot of concern and even more damage as its prescriptions have devastated the abilities of countries under its sway from recovering without foregoing their financial sovereignty and falling into a deeper vicious cycle of dependency and vulnerability to external interference without their best long term interests at heart.

The leader of Malaysia regarded withstanding the IMF dictates for South East Asia as one of the most imperative decisions he ever made , whilst the former President of Brazil considered the paying of  all debts and escaping the policies of the IMF as the first essential steps for one of the greatest Poverty Alleviation programmes in the History of Mankind , only bettered by China , and matched by Iran ( countries that also escaped the influence of the IMF).

In this vital contribution Stiglitz speaks from personal experience of being head advisor of the World Bank and Economic policy adviser to many Governments about the destructive negative role past and current IMF programmes and policies have for any nation unfortunate enough to have to suffer them.

Neo-Liberalism should be recognised as a phenomenon that thrived more under Democrat (The Clinton Years) and New Labour ( the reign of Brown) than necessarily being only viable under Republican or Conservative Governments.To this end the blame of the establishment of an unfair order of Globalisation has to go to the decade in which so-called social security administrations  were in place than the sterner right-wing orientated ones.

It takes a former Nobel Prize Winner to give weight to the mountains of critiques by many opposing the corporate led Globalisation Project. "Now he speaks out against it: how the IMF and WTO preach fair trade yet impose crippling economic policies on developing nations; how free market 'shock therapy' made millions in East Asia and Russia worse off than they were before.."

Coming from where he does , Stiglitz is going to come up for strong criticism for being less a gamekeeper turned  poacher.But rather as a gamekeeper who thinks the reservation and poacher-management could be better organised as this review clearly shows in pointing out the shortcomings of the Stiglitz narrative of macro-economic management of world trade.

Meanwhile, Stiglitz presents his argument as one of common sense versus the doctrinaire “market fundamentalists”. He attacks the ideological motivation of the Washington Consensus, yet his own prescriptions are often no more commonsensical, and certainly just as ideological. The only difference is that where the IMF takes its cue from Hayek, Stiglitz takes his from Keynes.

Here explains why using the GDP figures are not the best or even a reliable measure of a Nations overall wealth.

This comment on the video sums it up pretty well:

 "Simon Kuznetsk, the individual who created the formula in 1934 warned when presenting it to Congress, that “The welfare of a nation can scarcely be inferred from a measurement of national income.” He know that the government could use the formula to paint whatever picture they wanted based on spending. For example, the "New Deal" was championed as a miracle yet it was governmental spending that put it in a positive light not the true health/strength of the American economy."

And here The Nobel winning Economist explains how the disastrous Iraq War led to the recession.


Saturday, December 22, 2012


This book was written at the closing of the 19th Century , a work HG Wells considered his favourite.The author was passionate in making this a success for both publisher and himself , suggesting a sophisticated advertising campaign of enigmatic themed posters in several locations to build up an curiousity , intrigue and fever pitch anticipation in the weeks prior to launch date.A Century later this type of synthesised ad campaign prior to launch of products is still considered the best publicity strategy for modern age products.

The story is of faux pas issues of someone entering a new status or community.The strength of the story is that it not only deals with material slap-stick situations , but is a sympathetic portrayal of the emotional , moral and intellectual issues about who is setting the rules for society , and how we judge whom is in the right or wrong in these assimilation conflicts , it also makes one ponder if the larger society is there to enhance the individual members to achieve full benefit or to restrict behaviour and curb development.This question is highly essential in that if it is the former Society will genuinely progress and adapt to situations , whilst the later can lead to corrosion within , corruption and ultimately implosion when faced with new challenges.