Today, with the financial crisis which have turn into an economic crisis and which will probably lead to a social crisis, all the members of the G20, which possess about 80% of the world resources, have agreed to take some measures in April 2009 during the London summit to 'moralize capitalism' in order to prevent a future financial crisis and they have even advertise these yardsticks to the world as a great historic advancement in the financial sphere. Let me tell you that this is just a great bluff!
Indeed, on the socioeconomic ground, capitalism cannot be moralized because any moral component like income parity and social justice was excluded from the basic foundation of capitalism since its creation. In fact, capitalism is based on market liberalism, individualism as well as on money, money and still money. This may not yet changed. Today, in the current globalized context, the wage differentials between the poor and the rich worldwide is wider as never and the safety nets of the have-nots are constantly diminishing. Unfortunately, the measures taken by the G20 to 'moralize capitalism' will not solve these desperate problems.
You may ask me what are these contestable measures? I will tell you right now. There were 2 main decisions taken at the London summit. Firstly, the 20 most industrialized nations have decided to impose a strict regulation control on financial activities, specially on the speculative market and secondly, they were resolved to eliminate all fiscal paradises. Try to tell me how these resolutions will reduce high income disparity or, otherwise, will protect the socially vulnerable groups. In fact, I strongly believed that these actions have just been taken to bring business confidence, which is highly important in the real economy, on the world market so as to stimulate investment. This is not a moralization process. Indeed, the terms 'moralize capitalism' has just been used as a propaganda slogan to tranquillize the population by generating the notion of moral responsibility.
Besides, I also want to point out that these 2 resolutions, specially that one concerning fiscal paradises, were insincerely adopted. Let me explain. Some powerful countries of the G20 have negotiated toughly about some points concerning the set up of a fiscal paradises' black list. For instance, China has required that Hong Kong does not form part of the black list while the UK and the USA has demanded the same thing for London and Delaware respectively and this has been accepted by the G20! This is revolting that Hong Kong, London and Delaware, which are huge fiscal paradises, certainly less known than Luxembourg, Switzerland or Bahamas by the general public, do not figure in this black list. Now, no one can tell me that the G20 is convicted when it talks about the ' moralization of capitalism'. It just wants to give the impression.
Finally, the funny part is that this G20 summit, where 'historical decisions' have been supposedly taken about fiscal ethics, was held in London, a fiscal paradise. It is as if an alcoholic anonymous meeting is held in a bar...
Indeed, on the socioeconomic ground, capitalism cannot be moralized because any moral component like income parity and social justice was excluded from the basic foundation of capitalism since its creation. In fact, capitalism is based on market liberalism, individualism as well as on money, money and still money. This may not yet changed. Today, in the current globalized context, the wage differentials between the poor and the rich worldwide is wider as never and the safety nets of the have-nots are constantly diminishing. Unfortunately, the measures taken by the G20 to 'moralize capitalism' will not solve these desperate problems.
You may ask me what are these contestable measures? I will tell you right now. There were 2 main decisions taken at the London summit. Firstly, the 20 most industrialized nations have decided to impose a strict regulation control on financial activities, specially on the speculative market and secondly, they were resolved to eliminate all fiscal paradises. Try to tell me how these resolutions will reduce high income disparity or, otherwise, will protect the socially vulnerable groups. In fact, I strongly believed that these actions have just been taken to bring business confidence, which is highly important in the real economy, on the world market so as to stimulate investment. This is not a moralization process. Indeed, the terms 'moralize capitalism' has just been used as a propaganda slogan to tranquillize the population by generating the notion of moral responsibility.
Besides, I also want to point out that these 2 resolutions, specially that one concerning fiscal paradises, were insincerely adopted. Let me explain. Some powerful countries of the G20 have negotiated toughly about some points concerning the set up of a fiscal paradises' black list. For instance, China has required that Hong Kong does not form part of the black list while the UK and the USA has demanded the same thing for London and Delaware respectively and this has been accepted by the G20! This is revolting that Hong Kong, London and Delaware, which are huge fiscal paradises, certainly less known than Luxembourg, Switzerland or Bahamas by the general public, do not figure in this black list. Now, no one can tell me that the G20 is convicted when it talks about the ' moralization of capitalism'. It just wants to give the impression.
Finally, the funny part is that this G20 summit, where 'historical decisions' have been supposedly taken about fiscal ethics, was held in London, a fiscal paradise. It is as if an alcoholic anonymous meeting is held in a bar...
I’ve to admit it; you’ve got a great sense of humour. Concerning the article, I think that this moralization of capitalism is just a masquerade. How can we moralize a system which disregards moral values by promoting both social and income inequalities??? It’s all a damn masquerade!
ReplyDeleteYou are totally right, Sheik! Capitalism cannot be associated with moral values. Unfortunately, today, it is the unique economic system in the world which can enable countries to generate economic growth and development. Communism has completely failed in achieving this purpose.
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