Western governments have – formally and informally – met the compulsive need of the privileged investor community for higher profits
Harry Shutt is an economist who ‘occupies the dissident edge of his profession’. Now, in the midst of the worst global downturn for 70 years, Shutt’s words have an eerie prescience. ‘The lies and financial crimes that have underpinned this evanescent economic ‘miracle’ are only now being exposed as a result of a financial crisis, which, it is already clear, is the most catastrophic to hit the world since that of 1929-3.
”(Capital) is now almost as redundant as the coal industry in the modern economy – especially given the emergence of such phenomena as crowdfunding enabling entrepreneurs to bypass the City and Wall Street.
“Yet so far from facing this glaring truth and cutting the financial sector down to size, western governments have, since the 1980s, allowed it to become the tail that wags the capitalist dog.
“This has led not only to ever more wasteful and/or dangerous misallocation of resources (think funded pensions, privatisation, derivatives, High Speed 2); it has required subsidised diversion of an ever greater share of value added to meet the compulsive need of the privileged investor community for higher profits”.
Since 1979 Mr Shutt has been a consultant mainly to international development agencies, including the World Bank, United Nations (FAO, UNCDF, UNDP, UNIDO), European Commission (EDF, Europeaid), Asian Development Bank, Commonwealth Secretariat, DFID (UK), KfW (Germany).
Read more: http://harryshutt.com/
Posted on September 8, 2013, in Banking and finance, Conflict of interest, Corporate political nexus, Government, Vested interests and tagged Economist, Financial sector, Harry Shutt, the City, UN, Wall Street., World Bank. Bookmark the permalink. Leave a comment.