Investors desire to reach bigger and more lucrative markets but fascinatingly they do not want the majority to hold wealth. They also do not want to pay labour for what is worth. Investors are limiting their own market potential by squeezing wealth that falls in the hands of the working class, which is the productive majority, in collaboration with neo-colonial government in so-called developing nations.
It is not surprising that in countries like ours, monetary policies are not managed by government but by private companies such as the Reserve Bank. In West Africa, France has a veto power in monetary policies in a number of countries. South African Reserve Bank (SARB) was listed on Johannesburg Stock Exchange until few years ago but its shares are mainly held by private interests of financial institutions. The monetary policy of South Africa displays the greatest madness of capitalism. The policy thrust in South Africa is to maintain inflation within the range of 3% to 6%.
Every year when organized labour negotiates salaries above 6% then the SARB increases interest rate thus further making doing business expensive as all business maintains some loan therefore pushing inflation up. Whenever the price of oil on the international markets increases thus contributing to operational cost pressures the interest rates are also increased. Surely the tool used to control inflation is the very source of inflation that brings along side effects like un-affordability of home loans thus insolvency, stress among workers leading to low productivity and a host of other hardships.
Experience has shown that Capitalism is a very short-sighted system that is hindering progress in human civilization and Socialism which empowers majority in society remains the hope for development of humanity. African workers have the responsibility to take power and change this madness and illogical distribution of wealth created by capitalism.
By Sbusiso Xaba