LWM’s co-founder Colin Hines writes, “The old idea was that we can compete in export markets to strengthen our economy. That increasingly looks like clutching at straws”.
Barriers to destructive flows of capital
In developing countries barriers to destructive flows of capital are being erected. Brazil, Argentina and Costa Rica have used various measures, including Brazil’s insistence that short-term investors deposit funds with the central bank for a year which the mainstream media – including the FT – has not reported -perhaps fearing ‘copy-cat’ action. See Deloitte’s website.
These countries seek long-term, job-generating capital, rather than the casino bets of the feckless financial herd. Long-term investment in the real economy encourages and enables countries to rebuild and re-diversify their economies by limiting what goods they let in and what funds they choose to enter or leave the country.
Most importantly, in the process they will wean themselves off their export dependence. This will allow space for domestic funding and business to meet most of the needs of the majority in society.
Europe could do this
Of course such a radical change in economic direction could not be introduced in one country alone, since the money markets would ferociously destabilise such a challenge to their present dominance of the world economy.
Europe – though facing huge threats from the forces of international finance – would be powerful enough to implement such a programme.
Should the politically active start to campaign for such radical change?
To read a detailed treatment of this subject, click on www.compassonline.org.uk