NeoLiberalism 101

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WTO: The Irationality of Neoliberalism Rationality

July 29th, 2008 · No Comments

fao-1.jpgWhy there are phenomena of poverty in the lands of plenty? Why do thoseagrarian-related capitalists enter the small group of world richest when food insecurity increases? Why do so many people world wide suffer hunger and poverty when there is enough food and other resources globally? Why there is an oversupply in real estate industry when so many people are down and out and become homeless.? Those are small examples of the irationality of neoliberalism “instrumental rationality” which make famine and food insecurity become essential or inseparable feature of modern global capitalism.

Those market fundamentalists argue that agreeing Doha trade round would reduce global poverty. The developed countries (i.e. the G8) in 2005 asserted that base upon their rational estimation, as many as 140 million people would be lifted from poverty as a result of a further push to remove remaining trade barriers. It is for the sake of fredom — yet it’s freedom of movement for capital and product that concern them most, and it has nothing to do with freedom from insecurity for the majority of less developed countries, Their proponent have repeatedly in various mass media and inter-governmental meetings that trade rules make it impossible for agricultural producers in less developed country to benefit equally with their partners in developed countries. It is obvious that they refers “agicultural producers” are farmers like Aburizal Bakrie, or other conglomerats, etc, not Marhaen nor small scale independent farmers whose export ability are very limited, e.g. to meet criteria on quality control, correct labeling and packaging. Mayority of independent agricultural producers will definitely suffer if all countries have equal access to all markets.

Even worse, the push toward free trade that include agricultural products, take place when the global trade remained too skewed, in which the less developed countrie are primary resource exporter and importer of manufactured products.

What rational about a development that suffer the less fortunate people?

Tags: political economy