[This was published in Dhaka Courier on 26
September and in silobreaker on 27 September and in the Daily New Nation under
the title ‘No economic theory in itself be blamed’ on 28 September 2013. This
is, in fact, an amplification of the article ‘Capitalism not be misunderstood’
published in the Daily Financial Express on 21 December and in Dhaka Courier on
29 December 2011 under the caption ‘ Capitalism: Not to be misunderstood’]
When a manufacturer/industrialist/businessman
does not feel shy of paying less than what a laborer deserves in exchange of
his services given or to be given then be sure that it is not within the basic
norms and values of capitalism. Therefore, if any wrong is done in the name of
the reign of capitalism one should then first of all look into the matter and
judge whether such wrong is permitted in the domain of capitalism. Capitalism
is, in fact, not a tool for suppression and oppression. Rather it carries a
clear message for building a welfare state based on justice, fairness and
cooperation. Is not it true that capitalism has now become a con of dour derailments?
Is it fault of capitalism or the persons who have been playing foul with it?
Capitalism is capitalism. It is neither crony
nor corporationistic nor free exercises of those who gather and swell under its
canopy One may agree or not but the truth is that it is such a concept, which
is atomic in nature and contents. The first and foremost condition of any
system like capitalism is to allow it to grow and thus get matured in its own
methodical mode and manner. Monastic walk or jumping from one stage to another
or even overlapping giving priority to the on the spot mere needs and so-called
expected successes can never be well-considered in the end. Here hardly there
is any span to play foul aggressively or ambitiously going beyond the limits.
Yes, both evolution and revolution, which are sometimes very much inter-twined
for proper flowering, may take place necessarily within the system because of
the call of time, space and dimension. But care must be taken by the persons
who run and control it. From these standpoints it needs to be noted seriously
that the welders under the specific circumstances must not die into oblivion to
handle the matters within the fold of capitalism mathematically and literally
since capitalism altogether and all the time passes mostly through the labyrinth(s)
and juxtaposition(s) of science, mathematics and arts. Therefore, first of all,
the best opportunity for us is to understand, realize what it does mean and
signify in its entirety. Let’s take a quick but calculated and firm decision
that ‘power of listening, power of understanding, power of digestion and power
of delivery(as and when required) must be well-tuned, rhythmic and mutually
benefitting for all concerned as a whole’. And I believe that’s the starting situate
of all that we long for.
Fundamentals of Inductive logic tell us that
(a) nothing comes out of nothing. Every event/occurrence is a result of
multiple causes, immediate or distant. For example, if a bomb explodes then it
needs to be noted carefully that it does not explode only for the immediate
reason of its switching on but also for the reasons of its planting in that
very mode and direction and, above all, the human brain behind all the plans
and technicalities must be taken into account and (b) nature behaves in the
same way under the similar circumstances, which implies that if there is a rain
today, there shall be rain tomorrow provided the same weather takes place
again. That’s why, instead of going for any kind of SOS services to meet with
the crises in the fold of capitalism, let the leaders of G-20 and EU face the
challenging question emanating from the reality is that ‘Has capitalism as a
model really failed? Or ‘Has it been strangulated by the political leaderships
of ‘Oligarchy’ in the name of so-called multi-party ‘Democracy’ allowing
unchecked monopolistic corporate Dinosaurs to grab the very concept and
purposes of welfare state paving further, to our utter surprise, the way for
consolidating and cementing the standing and march of corporationist state?
Definitely, capitalism as an ideological
content and model of politics has been made subservient to those forces that
are matured, clever and cunning enough to turn it into their self-targeted
ideological content and model of sweet-heaven squeezing ambits of the powers
and functions of state. Hence, the concept of ‘less interference by the state
means more development’ is another ill-motivated weapon being made and used by
them and their think-tanks, researchers, propagandists and advertisements in a
very planned, concerted and convincing manners, modes and fashions.
Capitalism, in fact, does speak of a welfare
state based on multi-party democracy, human rights and economic development
with due respects to culture and religion of various folds and beliefs. All
these ingredients assert, affirm, confirm and conform a society and state where
there must have a balance, befitting, qualified or unqualified, so that the
range and extent of inequalities, opportunities and privileges in almost all
sectors cannot under any circumstances emerge and continue as threats to each
other and one another; where resources are not to be concentrated in the hands
of few; where powers are not to be vested in the hands of opportunists and
demagogues; where science and technology shall be used for the benefits and
development of the people, not for the satisfaction of a few and ,above all,
where due care must be ensured so that the stages of the development of
capitalism with a responsible and responsive role of ‘national bourgeois (as
opposed to the rise and expansion of modern monopolistic corporate Dinosaurs)
might not be disturbed or foiled. And to tie and integrate all these, state
shall play and continue her role as a friend, philosopher and guide ensuring
territorial integrity, security and sovereignty internally and externally to
the best of its capabilities, capacities and strengths. Therefore, the very
question of her (state) becoming a ‘post-office or a mere ‘director of
orchestra’ is just a negation to the very basis and aims of the birth of state
since a welfare state cannot sit and remain idle leaving all the keys of
welfare vulnerable to others considering the area as ‘discretionary zone’ of
those who can afford and like to do so. Sovereignty lies inherently in the hand
of state and it should be there undeniably based on monism. But while applying
such power a state must have to be careful enough so that question or chance of
misuse may not jeopardize or frustrate its sanctity and purpose(s). Pluralistic
approach to sovereignty is very soothing to hear but in reality it weakens or
makes inoperative of the sovereignty of state as a whole.
But as ill luck would have it, the world of
today’s capitalism is just a U-turn from the very vision and mission of
capitalism proper and that’s why it’s beyond doubt a misnomer to title
‘perversion’ as ‘proper’. Had there been appropriate treatments and preventive
measures to detect and fight the immediate and remote causes of the ‘Great
Depression of 1930’ and ‘Black Tuesday’ there possibly could have taken place
no further ‘Crisis’ in the almost similar vein and nerve. Alas! It has recently
started plaguing the domain of capitalist world. Communist Manifesto of 1848
followed by Das Kapital of 1867, translated into Capital: Critique of Political
Economy, came into being not because of the momentary outbursts of the emotions
and protests of Karl Marx and Friedrich Engels rather it was also a clear
message to the welders of politics of capitalistic hemisphere of those days as
to what ought to be done in the face of new challenges. Adam Smith’s ‘Wealth of
Nations’ does not contain a single sentence in favor of exploitation by a few
over the majority. Economists, researchers, think-tanks, media etc supporting
the negative escalation of capitalism in line with the expansion of
corporationist state either failed to realize what they are exactly doing or
they have taken the course deliberately to suit their vested purposes closing
eyes to in and around or setting aside the call of time, space and dimension.
In this regard two examples, inter alia, may
largely be illustrative. One is the repealing part of Glass-Steagall Act of
1933 and enactment of Gramm–Leach–Bliley Act (GLB), also known as the Financial
Services Modernization Act of 1999, USA and the other is genesis of off-shore
banks.
Today it is well-understood that in the name
of de-regulation, repealing part of the Glass-Steagall Act of 1933 and passage
of the Gramm–Leach–Bliley Act (GLB), also known as the Financial Services
Modernization Act of 1999, during Clinton administration (1993-2001) removing
barriers in the market among banking companies, securities companies and
insurance companies that prohibited any one institution from acting as any
combination of an investment bank a commercial bank, and an insurance company
caused a havoc in the financial and banking sectors in USA with its blasts in
UK because of Blaire’s following the same pursuits in line with the thoughts of
his mentor Professor Anthony Giddens. With the passage of the
Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms,
and insurance companies were allowed to consolidate.
Many believe that the Act directly helped
cause the 2007 subprime mortgage financial crisis. President Barack Obama has
stated that GLB led to deregulation that, among other things, allowed for the
creation of giant financial supermarkets that could own investment banks,
commercial banks and insurance firms, something banned since the Great
Depression. Its passage, critics also say, cleared the way for companies that
were too big and intertwined to fail. Economists Robert Ekelund and Mark
Thornton have also criticized the Act as contributing to the crisis. They state
that "in a world regulated by a gold standard, 100% reserve banking, and
no FDIC deposit insurance" the Financial Services Modernization Act would
have made "perfect sense" as a legitimate act of deregulation, but
under the present fiat monetary system it "amounts to corporate welfare
for financial institutions and a moral hazard that will make taxpayers pay
dearly. Joseph Stiglitz, 2001 Nobel laureate for economics and former World
Bank Chief Economist also argued that the Act helped to create the crisis
(Gramm-Leach-Bliley Act, Wikipedia, the free encyclopedia).
The process began in the very face of the
continuation of Glass-Steagall Act of 1933 even a year before the new law was
passed. Citicorp, a commercial bank holding company, merged with the insurance
company Travelers Group in 1998 to form the conglomerate Citigroup, a
corporation combining banking, securities and insurance services under a house
of brands that included Citibank, Smith Barney, Primerica, and Travelers.
Because this merger was a violation of the Glass–Steagall Act and the Bank
Holding Company Act of 1956, the Federal Reserve gave Citigroup a temporary
waiver in September 1998. Less than a year later, GLB was passed to legalize
these types of mergers on a permanent basis. Yes, be sure, it happened due to
indomitable rise and walk of monopolistic corporate empire in the fold of
capitalism.
Creation of Off-Shore banks (while the term
originates from the Channel Islands being "offshore" from the United
Kingdom, and most offshore banks are located in island nations to this day, the
term is used figuratively to refer to such banks regardless of location,
including Swiss banks and those of other landlocked nations such as Luxembourg
and Andorra ) within the fold of capitalist empire is another landmark addition
to the protection of the deposits of those who earn a lot through various
sources, legal or illegal, open or underground, crime or plunder, taking
resorts to tax evasion, money laundering, or non-declaration of the income by
the tax-payer to the authorities concerned in the nation-states and
jurisdictions. Interestingly enough, such protections include greater privacy
in the name of bank secrecy, a principle born with the 1934 Swiss Banking Act,
low or no taxation called tax heavens, easy access to deposits at least in
terms of regulation and protection against local political or financial
instability.
.
Feedbacks and impacts of such off-shore
banking on the nation-states are well understood today. In their efforts to
stamp down on cross border interest payments EU governments agreed to the
introduction of the Savings Tax Directive in the form of the European Union
withholding tax in July 2005. A complex measure, it forced EU resident savers
depositing money in any country other than the one they are resident in to
choose between forfeiting tax at the point of payment, or allowing notification
by the offshore banks to tax authorities in their country of residence. This
tax affects any cross border interest payment to an individual resident in the
EU. Following September 11, 2001, offshore banks and tax havens, along with
clearing houses, have been accused of helping various organized crime gangs,
terrorist groups, and other state or non-state actors. Since then there have
been many calls for more regulation on international finance, in particular
concerning offshore banks, tax havens, and clearing houses such as Clearstream,
based in Luxembourg, being possible crossroads for major illegal money flows.
However, offshore banking is a legitimate financial exercise undertaken by many
expatriate and international workers.
In the 21st century, regulation of offshore
banking is allegedly increasing, although critics maintain it remains largely
insufficient. The quality of the regulation is monitored by supra-national
bodies such as the International Monetary Fund (IMF). Banks are generally
required to maintain capital adequacy in accordance with international
standards. They must report at least quarterly to the regulator on the current
state of the business.
Since the late 1990s, especially following
September 11, 2001, there have been a number of initiatives to increase the
transparency of offshore banking, although critics such as the Association for
the Taxation of Financial Transactions for the Aid of Citizens (ATTAC),
non-governmental organization (NGO) maintain that they have been insufficient.
A few examples of these are:
*The tightening of anti-money laundering
regulations in many countries including most popular offshore banking locations
means that bankers are required, by good faith, to report suspicion of money
laundering to the local police authority, regardless of banking secrecy rules.
There is more international co-operation between police authorities.
*In the US the Internal Revenue Service (IRS)
introduced Qualifying Intermediary requirements, which mean that the names of
the recipients of US-source investment income are passed to the IRS.
*Following 9/11 the US introduced the USA
PATRIOT Act, which authorizes the US authorities to seize the assets of a bank,
where it is believed that the bank holds assets for a suspected criminal.
Similar measures have been introduced in some other countries.
*The European Union has introduced sharing of
information between certain jurisdictions, and enforced this in respect of
certain controlled centers, such as the UK Offshore Islands, so that tax
information is able to be shared in respect of interest (Off-shore bank,
Wikipedia, the free encyclopedia).
Therefore, the question is, how long shall
this very unethical standing of Off-shore bank continue? Is it not a curse for
capitalism proper and civilization? Voicing of the same is much more reflected
truly in a prose-poetry mode as follows:
O United
Nations----------------------------------
Behold, behold, behold
In the name of privacy, secrecy and safety of
Money, bonds and securities going on what a
Wonderful legally protected guarantee under
the canopy of
Off-shore and Swiss banks
Certainly, certainly within the wrinkle of
Capitalism!!!
Bearing on the other side of coin c as a
Corollary to all such capitalistic boundaries
a
Merciless, crude and brute hidden truth
Full of suspense, sensation and thrills
leading, leading to
Tragic culmination while so-called
invulnerable diamond-fenced
Privacy, secrecy and safety wither away in
moments
As soon as whistling starts followed by
Ringing of the bells of fall of such
account-holder(s);
Dazzling recent examples are---
Former Egyptian President Hosni Mubarak
Tunisian President Zine al-Abidine
Pilipino Dictator Marcos and so on.
Therefore, O United Nations, tax heavens are
not safe
Not safe even for the Dinosaur
account-holder(s) in time of
Distress and necessity
So the logical asking crops
up-----------------
Are not forts remaining unsafe finally?
Is not it a shame for mankind and
civilization?
How long, O United Nations, how long such tax
havens
Even in refined, redirected form shall continue
to be justifiable?
Cannot, cannot we get rid of it
Paving, paving a right way out?
(Page 36 in the Author’s book O United
Nations at www.sinha-onitednations.com)
Therefore,
there needs a great overhauling in capitalism with clear focuses on wherefrom
it started, wherefrom it got derailed and how such derailments can be
compensated, stitched, tailored and tuned to move with time, space and
dimension. Let all perceptions and senses of
frustrations centering in and around capitalism as a viable contents of
politics be revisited, recast and refueled. Let us not utter nostalgically and
conclusively that ‘the ‘days of capitalism are over’ rather let us sound on a
high volume that ‘Let the days of corporationist state foisted as a heavy
weight upon the natural course of development of capitalism be over’.
Similarly,
there should be no hide and seek in affirming that socialism as a content of
politics has not failed rather it was mishandled by the managerial management after the spirit of the
dictatorship of the proletariat. Almost all the condition precedents were
ignored or set aside. Neither Marks nor Engels nor any book on socialism
including the Communist Manifesto ever made a pen-picture of a socialist state,
which emerged and continued under the leadership of pre-disintegrated USSR,
then a leader of bi-polar world.
Further,
between the two systems basic differences by and large come from that
capitalism sticks to a multi-party democracy with propensity towards both
state(where essential or unavoidable) and private ownerships while socialism
believes in single party democracy and state ownership with less or no interest
in religion even as a faith. To be noted here is that capitalism is more
dynamic, accommodative while socialism is more stereotyped and
non-accommodative. Capitalism has every avenues, lane and by-lane to continue
with state ownership and private ownership, which for socialism implies
deviation from the root. From this point of view, the concept of mixed economy
is very much inherent to capitalism or rather says that mixed economy is a
phase or variety of capitalism. When China adopts and continues with ‘two
economy’ it indicates the worthiness and sustainability of capitalism and
limitations of socialism. So, capitalism can never wither away or die since it
is organically tied to the fundamentals of human race, spirit, needs and
development.
Therefore,
when it is heard that neither capitalism nor socialism is in a position to meet
with the needs of time, in both cases the outright reply is, although
comparatively capitalism is viable, accommodative please be sure ad confident
that the unfolding certainty is that neither capitalism nor socialism was
allowed to flower, develop and, accordingly, stand by the people because of
poverty of leaderships with firmness, determination, courage, honesty and
commitments predominantly. Vision and mission need to be backed befittingly by
those who put the cap(s) to run it. We
must not forget even for a second that any content of politics may meet with
failure or extinction also because of those who for a particular period of time
take the helms to lead, guide and direct. That's why, more focuses should be
made on the men behind the machines such as Stalin, Brezhnev, Gorbachev, Regan,
Bush, Clinton and Obama and so on. Therefore, it is a ‘Hobson’s choice’ for
today’s world, which is called ‘global village’ as well, to be free, fair and
transparent about this inseparable area of development for the existence,
survival and continuance of capitalism. No SOS formula even after the model of
‘social business’ now being preached by Nobel Laureate Professor Dr. Muhammad
Yunus can stand for a long yielding
expected results before the challenges on
account of the wrong and arbitrary exercises
of capitalism, emerged or emerging. There should be no finding the
middle ground between the matching and synchronization of capitalism and the
persons in and around it in various forms and dimensions including leaderships.
Hence, the most pertinent asking is ‘What is
the best for the countries like Bangladesh, India, Nepal, Pakistan etc in their
respective contexts and realities? Let the matter be critically looked into by
our leaders, researchers, think-tanks and policy-makers in particular.
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