THE IRONY OF CAPITALIST LOGIC

Capitalism

Sbusiso Xaba explores the irony of capitalism in neo-colonial Africa

Neo-colonial governments in Africa are always trying to satisfy the needs and wants of the so called investors. There are two important constituencies in the minds of these puppets governments, namely tourists and investors. All institutional development viability is justified on the basis of these two pillars of economic mirage.

The recent jitters in international equity markets are evidence of crazy logic of international capitalist system. Why should Stock Market Index have a free fall in Africa or Brazil when America Companies have failed to manage the granting of loans? Why is it that when American corporation’s management steals from investors locally, the Stock Market in so called developing markets plunges? Why is it that when evidence of corrupt practices which caused the collapse of Asian Tigers a decade ago do not have the same effect on American accounting scandal? There are many examples of such inconsistencies and double standards.

Investors run most mediums of communication and these questions have been answered with the most ridiculous responses. The repetition of same line of lies time and again makes the most illogical answers normal and acceptable. They also will not forget to put an element of truth that the financial market system is driven by perceptions, however, without indicating whose interests drives such perceptions. It is for this reason that the formulae for evaluating economic indicators are so fluid, with most variables based on sentiment rather than empirical factors.

International Monetary Fund and World Bank informs African governments and governments of developing nations that fiscal deficit is a sin and should not be allowed hence the cutting of government spending in critical social needs including welfare, education and health. On the contrary, experts use different logic to explain the fiscal discipline of United States of America which is out of control.

These parasitic investors are interested in good infrastructure but do not want to be taxed by host countries. They are interested in crime free societies whilst they are first to run to government officials with bags of money to influence to gain favourable consideration in state projects. Investors want small weak government that does not interfere with their monopolistic tendencies while at the same time demanding strong protection of their investments from same government.

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