Prabhat Patnaik’s Blog

The G-20 meeting in Delhi was occurring in the midst of an acute economic crisis of the world economy. The advanced capitalist economies are expected by the IMF to witness a growth slowdown from 2.7 per cent in 2022 to 1.3 per cent in 2023; according to an alternative estimate by the IMF their growth in 2023 could even fall below 1 per cent. Since their rate of growth of labour productivity is likely to exceed this figure, it would mean a substantial increase in unemployment in the metropolis. This would be compounded, especially in the case of EU by…

Liberal bourgeois writers tend to explain the problems that arise under capitalism not by the immanent tendencies of the system but by the capriciousness of particular governments. This way they can continue to believe in their own false theories that prettify capitalism, while putting the blame for the travails it generates on political bloody-mindedness. One such instance of prettification is the portrayal of the system as one where international trade is beneficial for all. Centuries of colonialism which played havoc with the economies of the conquered countries, causing poverty, unemployment and underdevelopment, by forcing an exploitative trade relation upon them,…

At the Johannesburg summit of the BRICS countries, it was decided to expand the group beyond its original five, namely, Brazil, Russia, India, China and South Africa, to include six more countries. These are: Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates. These six it appears were chosen out of a list of twenty-two countries which had been keen to join the BRICS grouping. What is more, government sources in South Africa which currently chairs BRICS have revealed that as many as 40 countries have been interested in joining the group. The question naturally arises: why has…

When BJP rule in the country is dead and gone, a good deal of the damage it has caused to the Indian society, polity and economy will no doubt be reversed. But there are at least two areas where such reversal will be difficult: one is the architectural vandalism it has perpetrated. This vandalism began with the destruction of the Babri Masjid, which, quite apart from stoking communal animosity, was an instance of barbarism: no civilized and sensitive group would wantonly destroy a 400-year old structure; and this vandalism has continued with the insertion of a structure next to the…

Much of the ex-colonial world, having set up dirigiste regimes to wrest control over its natural resources from metropolitan capital and to build up industries behind protectionist walls, was sought to be re-assimilated into imperialist hegemony through the neo-liberal economic order; but in one segment of this world decolonisation itself was never completed. The former French colonies of West Africa belong to this segment. Even though local personnel replaced French administrators, they did not effectively shake off French hegemony, and by implication metropolitan hegemony even temporarily. French troops continued to be stationed in each of those countries; and they were…

Many economists have been advocating a universal basic income for India, an idea that was mooted even in the official Economic Survey for 2016-17. Of course the practical proposals towards this end have varied, some suggesting a common universal transfer to all persons below a certain income, and others suggesting a graded transfer depending on how badly off an individual happens to be. But the vision is of a society where every citizen has a certain basic minimum level of money income through appropriate government transfers which would give the person command over a bundle of goods that assure a…

On April 3 this year, the minister of state for planning, Rao Inderjeet Singh, said in the Rajya Sabha that the government had no data after 2011-12 for estimating poverty, and therefore had no idea how many people had been lifted out of poverty since then. On July 18 however the UNDP announced that between 2005 and 2019, India had lifted 415 million persons out of poverty; it had of course no information for the post-pandemic period, but for the pre-pandemic period what it said generated much hype. What was missed in this hype however was not only that the…

Several major economists have put forward theories predicting a falling tendency of the rate of profit under capitalism; Marx had seen in this fact an awareness on their part of the essential transitoriness of the capitalist system. But while some of these theories have logical validity, others do not. Among the latter is Adam Smith’s theory. Adam Smith had attributed the falling tendency of the rate of profit to the fact of “excessive” capital accumulation. His argument was that in any particular industry, if more and more capital accumulates and more and more is produced, there would be a fall…

India and other third world countries can morally justify their being a part of G-20 alongside the imperialist powers, only if they raise common and pressing problems of the third world as a whole at G-20 meetings. Perhaps the most pressing of such problems today is the problem of external debt, which the current crisis of neo-liberal capitalism has brought to the forefront. India, as the chairman and host of the next G-20 meet, must raise the issue of relief from external debt for the third world at this meet. Much confusion however prevails on this issue which an excursus…

Fascistic elements exist in every modern society, but usually as fringe, marginal or minor elements. They move centre-stage only when they get the support of monopoly capital which provides them with ample money and media coverage; and this happens when there is a capitalist crisis that substantially increases unemployment and puts a question mark on the hegemony enjoyed by monopoly capital until then. The role of the fascistic elements in such a situation is to provide a diversion of discourse, so that the basic distress of living under a capitalism afflicted by crisis, is sought to be covered up through…