CAPITALISM IN TROUBLE

The fall of communism in Poland 20 years ago heralded the end of communism. The last nail in the coffin came when the Berllin Wall fell. The rest of the Russian satellites countries abandon communism one by one. There was so much hope and euphoria in Eastern Europe when western style democracy was adopted. Along with it come capitalism and free market. It was supposed to bring better life and cure the ills of communism. The perennial food shortages and long queue were gone.

The present day global economic crisis had once again brings hardship to these ‘liberated’ countries. Capitalism is supposed to bring wealth and well being to mankind. But with the shutdown of shipyards and factories, many hard questions need to be asked. Has capitalism failed? The guns (western politicians and media) have gone silent. What happens to these champions of capitalism?

Capitalism has not only failed, but has compromised the future of next generations, not only in economic term but as well as the environment. The world resources have been plundered in the name of profit. The income gap between the rich and the poor diverge even more. Yes, lot of wealth is created, but it goes to the minority. The majority continues to struggle for basic needs. Capitalism has made the world economy far more volatile and poorer nation more vulnerable. Some example was the recent spike in world crude oil and commodities prices. The ordinary citizens just couldn’t afford to pay for these basic necessities.

This failure does not mean communism is better and it will make a comeback. Communism has failed miserably as it will never work because human beings are never altruistic. During the Asian Financial crises, I remembered IMF (headed and backed by West and US) lectured the world on free market. Weak companies must be allowed to fail and market forces will support the more efficient and strong. Today, America is saying the banks and auto industries are just too big to fall, hence the need to spend billions of taxpayer money and borrowed money from Asians to bailout out these failed companies. This is an overt omission of the failure of western style capitalism.

But there is no other alternative. Communism was a total failure. Capitalism is the only viable system available today. But this system must be properly regulated for the interest of the entire world and the majority. Specifically the financial industries need new set of regulation and oversight. The rich countries must not dominate and exploit the poor countries. Regulations must not be allowed to be manipulated by lobby and interest groups for self gratification. Corruption, financial scandals and abuse of power must be punished with sentences no different from that meted out to rapists and murderers.

During Deng’s era, China said, ‘Capitalism with Chinese characteristic’ may now be food for thoughts for those who has embraced unfettered capitalism. But china is still far from perfect and fari from developed status. And the western media should stop the ranking which countries are most ‘free’. Instead, rank countries which are most successful in term education, quality of life and living environment. This could provide a benchmark for weaker country a model to emulate. The good thing about this economic crisis is that Uncle Sam will not be lecturing the world on economic issues of good governance and prudence for a long time.




------------------Living to see the world--------------