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Capitalism’s insoluble crisis

Recently the world’s central bankers gathered in Jackson Hole, Wyoming for their annual meeting. Having experienced the biggest banking crisis in history, there was a sense of relief at having avoided a complete collapse. The talk now was of the dust settling. Ben Bernanke, chairman of the US Federal Reserve, despite saying a month earlier that the outlook was “unusually uncertain”, said he was now “confident”. But such confidence is very much misplaced. With the world economy facing at best a painful recovery, and slow anaemic growth, the world’s bankers are deeply troubled as to what steps to take next.

Nigeria: Obasanjo’s Economic Reform - A blessing or a curse?

By Ola Kazeem in Lagos
Wednesday, 28 March 2007

Nigeria has never had it so good, at least that is what the economic strategists of this regime say. Nigeria economy has been growing at an impressive rate of 6.5% since 2003 as against 2.8% in the 1990s, (how reliable this figure is, is another question) the inflation rate has dropped from 26% to 9% (December 2006), and the Naira has now appreciated against international currencies. Foreign reserves have grown from $4 billion in 1999 to $43.5 billion as at December 2006, even after paying $14 billion to the Paris and London club. This regime has also celebrated a huge debt relief of $33 billion from Paris and London club.

According to their figures - and only their figures using their own formulae - the unemployment rate has declined from 18% in the 1990s to 5.3% in 2006. Even more laughable is the figure on the percentage of the population living below the poverty line, which according to them moved down from 70% in the 1990s to 54% in 2004, while the figure for 2005-2006 has to be kept from the public for "strategic reasons".

Capital inflow has been doubling every two years and stood at about $4 billion in 2006. Suffice it to say, that the budget has always been based on the price of oil at $40 since 2003, whereas the price in the market has been between $67-$71 for the larger part of the period in consideration, and this fact the Nigerian ruling class always leaves out of its analysis.
The reality of the Nigerian situation

Global Food Crisis: Any way out for Nigeria?

Introduction

71% of Nigerian workforce engages in Agriculture. Over 90% of Nigeria’s Agricultural output comes from peasant farmers who dwell in remote rural areas where 60% of 150 Million of total population lives. Agricultural landholdings is generally small and scattered, average number of farm plots per household ranges between 2 and 28 plots increasing from South to North. Nigeria cultivates over 25 Millions hectares of land for various food crops.

Despite all these obviously abundant human and natural resources, Nigeria is still unable to feed her citizens. Nigeria produces only 500,000 tonnes of rice while the annual consumption is 2.5 million tones. Nigeria is the world's second-largest rice importer after Singapore. Before now, Nigeria spent over $350 Million on rice importation alone. Now there is a global food crisis; can Nigeria ruling class turns things round overnight?

Impending World Economic Crisis: How Hard or Soft Will It Touch Nigeria?

Introduction

Nothing can be truer than the graphic description of the present economic mess, as described by Mick Brooks on “World economy in crisis - The financial panic: where are we now?” of 23 of January, 2008, as published on www.marxist .com, he said and I quote:

“The upswing since 2001 has been one of the most lopsided in the history of capitalism. It has been powered by the American consumer, referred to by some economists as ‘the consumer of last resort,' so important are they conceived to be to the functioning of the world economy. Though comprising less than 5% of the world's people American consumers' demand has been responsible for an incredible 19% of the growth of the world economy in recent years. How is this possible? After all American workers' incomes (and most American consumers have to work for a living) have not risen in real terms for three decades. Yet they have more money in their pockets to spend, and to buoy up a world economy of six billion souls in the process. The answer to this question is because of what is called the wealth effect. House prices have been going up so Americans have felt richer. Consumers have been able to borrow against the rising value of their houses. In effect they have been using their homes as ATMs, spending like there's no tomorrow. Now tomorrow has arrived.”