Public policy can usher in SME adoption of sustainable devt
BANDAR SERI BEGAWAN
Tuesday, October 28, 2008
SMALL and medium enterprises (SMEs) play a big role in today's global commerce and in achieving sustainable development, but governments and public policy hold the key to paving the way for the attainment of such potential.
"Global companies are outsourcing so many of the business operations and SMEs are playing a very important role in providing products and services that are sold to (them)," said Dr Terry Yosie, president of The World Environment Center.
"The role of SMEs is becoming increasingly important in the evolution of both global commerce and the practical challenges of achieving sustainable development for several reasons," he stressed during the recently held Asia Inc's National Environment Conference.
SMEs have their own environmental, societal and energy impacts so their increasing role in global commerce also means that they are leaving a larger carbon footprint, he said.
"Because they are becoming more of the primary producers of products, they are the ones who are increasingly extracting resources from the earth."
It is for these reasons, he added, that the world has to pay more attention to the SMEs. To get them to start thinking more about sustainable development, Yosie said there is a need for leadership "within the SMEs, ... within the customers and a need for leadership on the part of the government and policies".
The consumers and buyers also play a very important role in taking the leadership role because at the end of the day it is the customers who buy the products.
Yosie doesn't expect SMEs to be charitable organisations and spend extra revenue to change their operations to become more sustainable, and this is where the government and public policy come into play.
"They have to integrate sustainability into the very nature of SME business and this has to be about creating business value for the SMEs."
There are many opportunities to do that by reducing cost and saving energy by reducing cost to prevent waste, practicing recycling and so on, he said.
"Governments can provide incentives for companies that want to be more energy efficient and want to have healthier and safer work places, so there are a lot of 'low hanging fruit' to reducing cost."
There will be different challenges for different segments but government policies and actions can come in to play, he added.
"I have seen many successful examples all around the world where governments can create resources for research and development, or governments can foster partnerships between SMEs and research organisations and the SMEs are in a position where they can transfer those innovations to the markets." Debbie Too
The Brunei Times
Tuesday, October 28, 2008
Tuesday, October 21, 2008
Inflation begins to gather strength in Brunei at 0.9%
Inflation begins to gather strength in Brunei at 0.9%
BANDAR SERI BEGAWAN
Tuesday, October 21, 2008
PRICES of basic goods and services in Brunei rose 0.9 per cent in August from the previous month, based on the consumer price index (CPI) released by the Department of Economic Planning and Development (JPKR).
Brunei's August inflation represents a significant uptrend when compared with monthly price changes in the first seven months of the year.
The increase in August prices is attributed mainly to the increase in clothing and footwear basket, and food and non-alcoholic beverages basket, which was 4.7 and 1.2 per cent, respectively.
On a year-on-year basis, prices in August this year were up 3.3 per cent from the same month last year.
A local economist said that one of the factors for this increase could be higher fuel prices in countries from where Brunei buys raw materials as well as flour prices.
JPKR attributed the August inflation in part to some prices reverting back to the original levels after the Mid-Year Sales which took place from June 22 to Aug 3 this year.
Household goods and services and operations also increased 1.7 per cent as a result of higher prices of floor covering, household furnishings, kitchen appliances and utensils and so on. The local economist said that the increase in clothing and footwear and food and non-alcoholic beverages is attributed mainly to external factors, such as increase in transportation, cost of raw materials and so on.
"In Brunei nearly 90 per cent of goods are imported so the price increase is not a matter of supply or demand, but mainly the cost of raw materials in other countries that contribute to the prices," he said.
The cost of food and non-alcoholic beverages in August rose 1.2 per cent over the previous month due to higher prices of flour, noodles, biscuits, fresh and frozen buffalo meat, seafood, vegetables and fruits and so on.
These price increases were the main contributing factors in the 5.5 per cent year-on-year increase for this sub-group.
Food items that recorded notable price increases were instant noodles, sawi hijau, squids, red spinach and rice flour.
"Instant noodle prices showed a 10.6 per cent increase mainly due to the increase in global flour prices," said the local economist. He added that some prices of items in the sub-group tend to go down very quickly.
Notable price drops in the food and non-alcoholic beverages sub-group were for small prawns, kangkong and long beans which dropped 6.9 per cent, 6.4 per cent and 4.9 per cent, respectively.
Transportation cost rose 0.3 per cent due to higher prices of motor vehicles, maintenance and air fares.
JPKR said that the inflation rate for Brunei Darussalam is significantly lower compared to those experienced by other countries in the region. Debbie Too
The Brunei Times
BANDAR SERI BEGAWAN
Tuesday, October 21, 2008
PRICES of basic goods and services in Brunei rose 0.9 per cent in August from the previous month, based on the consumer price index (CPI) released by the Department of Economic Planning and Development (JPKR).
Brunei's August inflation represents a significant uptrend when compared with monthly price changes in the first seven months of the year.
The increase in August prices is attributed mainly to the increase in clothing and footwear basket, and food and non-alcoholic beverages basket, which was 4.7 and 1.2 per cent, respectively.
On a year-on-year basis, prices in August this year were up 3.3 per cent from the same month last year.
A local economist said that one of the factors for this increase could be higher fuel prices in countries from where Brunei buys raw materials as well as flour prices.
JPKR attributed the August inflation in part to some prices reverting back to the original levels after the Mid-Year Sales which took place from June 22 to Aug 3 this year.
Household goods and services and operations also increased 1.7 per cent as a result of higher prices of floor covering, household furnishings, kitchen appliances and utensils and so on. The local economist said that the increase in clothing and footwear and food and non-alcoholic beverages is attributed mainly to external factors, such as increase in transportation, cost of raw materials and so on.
"In Brunei nearly 90 per cent of goods are imported so the price increase is not a matter of supply or demand, but mainly the cost of raw materials in other countries that contribute to the prices," he said.
The cost of food and non-alcoholic beverages in August rose 1.2 per cent over the previous month due to higher prices of flour, noodles, biscuits, fresh and frozen buffalo meat, seafood, vegetables and fruits and so on.
These price increases were the main contributing factors in the 5.5 per cent year-on-year increase for this sub-group.
Food items that recorded notable price increases were instant noodles, sawi hijau, squids, red spinach and rice flour.
"Instant noodle prices showed a 10.6 per cent increase mainly due to the increase in global flour prices," said the local economist. He added that some prices of items in the sub-group tend to go down very quickly.
Notable price drops in the food and non-alcoholic beverages sub-group were for small prawns, kangkong and long beans which dropped 6.9 per cent, 6.4 per cent and 4.9 per cent, respectively.
Transportation cost rose 0.3 per cent due to higher prices of motor vehicles, maintenance and air fares.
JPKR said that the inflation rate for Brunei Darussalam is significantly lower compared to those experienced by other countries in the region. Debbie Too
The Brunei Times
Wednesday, October 15, 2008
MIPR serious about food security
MIPR serious about food security
Attentive:(Top) Minister of Industry and Primary Resources, Pehin Dato Hj Yahya discussing during his working visit to KKP Lot Mobil (Cadangan Padi MOF & DOA) at Mukim Labi, Belait District. (Above) One and of the farmers planting padi during the visit by the Minister of Industry and Primary Resources. Pictures: BT/Zamri Zainal
NURUL ARIPIN
BELAIT
Wednesday, October 15, 2008
THE Minister of Industry and Primary Resources Pehin Orang Kaya Seri Utama Dato Seri Setia Hj Yahya Begawan Mudim Dato Paduka Hj Bakar made a whole-day working visit to the padi plantation areas in the Belait District yesterday.
In line with the ministry's efforts and initiative
through the Agriculture Department in dealing with the country's food safety issues, especially rice, the working visit aimed to observe closely the present padi plantation areas and other areas seen as having the potential to develop as well as to improve local padi production in the country, as to enhance domestic production.
The minister and officers were welcomed at the Labi multipurpose hall where they were briefed on the areas to be covered for the visit by Hj Kamarhan Atma, the village headman of Mukim Labi.
The minister made his first visit to Lot Sengkuang, Mukim Labi, the largest padi byproduct contributors for the Belait District. The area covered 155 hectares with 111 farmers and has currently produced 192.5 metric tonnes of padi.
During the working visit, the minister was also told of a new type of rice seed that is undergoing development by industrialists with the support of Agriculture Department.
Dubbed as BDR1, this rice seed is capable of producing twice as much production as the recent production capacity.
BDR1 is also capable of producing better quality rice that would be more in favour of the locals' taste.
In addition, BDR1 also has the potential to take over traditional rice products such as PUSU, BARIO and ADAN.
The minister then proceeded with a visit to Kawasan Kemajuan Pertanian (KKP) Rampayoh, Mukim Labi, an area which consists of a fruit and vegetable production site and goat livestock on an area of 78.16 hectare, which is currently managed by 10 plantation companies.
This was followed by a visit to another padi plantation area, Ladang Perusahaan Warisan Jasa, which is managed by Datin Hjh Hazizah Hj Adam.
A mass Zohor prayer as well as lunch was held at Pehin Orang Kaya Seri Pahlawan Dato Seri Setia Major General (B) Hj Sahari Ahmad's residence.
The working visit concluded with afternoon visits to SCY Farm and the Forestry Department in Badas.
The Brunei Times
Attentive:(Top) Minister of Industry and Primary Resources, Pehin Dato Hj Yahya discussing during his working visit to KKP Lot Mobil (Cadangan Padi MOF & DOA) at Mukim Labi, Belait District. (Above) One and of the farmers planting padi during the visit by the Minister of Industry and Primary Resources. Pictures: BT/Zamri Zainal
NURUL ARIPIN
BELAIT
Wednesday, October 15, 2008
THE Minister of Industry and Primary Resources Pehin Orang Kaya Seri Utama Dato Seri Setia Hj Yahya Begawan Mudim Dato Paduka Hj Bakar made a whole-day working visit to the padi plantation areas in the Belait District yesterday.
In line with the ministry's efforts and initiative
through the Agriculture Department in dealing with the country's food safety issues, especially rice, the working visit aimed to observe closely the present padi plantation areas and other areas seen as having the potential to develop as well as to improve local padi production in the country, as to enhance domestic production.
The minister and officers were welcomed at the Labi multipurpose hall where they were briefed on the areas to be covered for the visit by Hj Kamarhan Atma, the village headman of Mukim Labi.
The minister made his first visit to Lot Sengkuang, Mukim Labi, the largest padi byproduct contributors for the Belait District. The area covered 155 hectares with 111 farmers and has currently produced 192.5 metric tonnes of padi.
During the working visit, the minister was also told of a new type of rice seed that is undergoing development by industrialists with the support of Agriculture Department.
Dubbed as BDR1, this rice seed is capable of producing twice as much production as the recent production capacity.
BDR1 is also capable of producing better quality rice that would be more in favour of the locals' taste.
In addition, BDR1 also has the potential to take over traditional rice products such as PUSU, BARIO and ADAN.
The minister then proceeded with a visit to Kawasan Kemajuan Pertanian (KKP) Rampayoh, Mukim Labi, an area which consists of a fruit and vegetable production site and goat livestock on an area of 78.16 hectare, which is currently managed by 10 plantation companies.
This was followed by a visit to another padi plantation area, Ladang Perusahaan Warisan Jasa, which is managed by Datin Hjh Hazizah Hj Adam.
A mass Zohor prayer as well as lunch was held at Pehin Orang Kaya Seri Pahlawan Dato Seri Setia Major General (B) Hj Sahari Ahmad's residence.
The working visit concluded with afternoon visits to SCY Farm and the Forestry Department in Badas.
The Brunei Times
Thursday, October 9, 2008
Does the financial crisis signal the end of free markets and a return to state intervention?
Does the financial crisis signal the end of free markets and a return to state intervention?
Submitted by Shanta on Thu, 10/09/2008 - 09:30.
At a recent videoconference with journalists, I was asked the question in the title of this post several times. Does the fact that private banks in the United States are going bankrupt mean that the free market system is a failure? Does the fact that the United States government is bailing out these banks and in some cases “nationalizing” them mean that state intervention is back?
In a word, “No.” First, any financial system needs some form of government intervention, a point lucidly made by Bob Shiller. The problem with some aspects of the financial system in the U.S. is not that there was no government intervention, but that it was flawed. The solution is to improve government regulation of the system. This however takes time. Meanwhile, there is a danger of the system collapsing, which is why the government is bailing out various institutions.
What are the lessons for developing countries in general, and Africa in particular? In many countries, the extent of government intervention in the financial systems was so great to begin with that the system had become “stuck.” Think of the various directed credit programs, where government banks lent only to politically-connected families, rather than the most productive people in the country. In these circumstances, less government intervention, not more, would improve access to finance. The key word here is “less”, and not “zero.”
More generally, the discussion of state intervention and markets refers to other areas than finance, such as goods and labor markets, where also there are market failures but, as my friend and former colleague Bill Easterly points out, there are also potential “government failures”.
Submitted by Shanta on Thu, 10/09/2008 - 09:30.
At a recent videoconference with journalists, I was asked the question in the title of this post several times. Does the fact that private banks in the United States are going bankrupt mean that the free market system is a failure? Does the fact that the United States government is bailing out these banks and in some cases “nationalizing” them mean that state intervention is back?
In a word, “No.” First, any financial system needs some form of government intervention, a point lucidly made by Bob Shiller. The problem with some aspects of the financial system in the U.S. is not that there was no government intervention, but that it was flawed. The solution is to improve government regulation of the system. This however takes time. Meanwhile, there is a danger of the system collapsing, which is why the government is bailing out various institutions.
What are the lessons for developing countries in general, and Africa in particular? In many countries, the extent of government intervention in the financial systems was so great to begin with that the system had become “stuck.” Think of the various directed credit programs, where government banks lent only to politically-connected families, rather than the most productive people in the country. In these circumstances, less government intervention, not more, would improve access to finance. The key word here is “less”, and not “zero.”
More generally, the discussion of state intervention and markets refers to other areas than finance, such as goods and labor markets, where also there are market failures but, as my friend and former colleague Bill Easterly points out, there are also potential “government failures”.
Wednesday, October 8, 2008
Ensuring Brunei food security
Ensuring Brunei food security
Wednesday, October 8, 2008
THE key issue of improving national food security was the most important item in the titah of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam on the occasion of his 62nd birthday on July 15 this year. Highlighting the need to increase domestic rice production His Majesty asked why when countries which were already producing 70 per cent of their own needs were legislating to produce 100 per cent when Brunei which was only producing 3.12 per cent of its needs not making any effort to increase its rice production. Pointing to the current food crisis compounded by the diversion of grains to bio-fuel production, His Majesty stressed, "The attitude of completely relying on dollars to fill stomachs is no longer relevant with the emergence of this crisis."
There has been a dearth of discussion on this topic since it was highlighted. The Brunei Times in an article published on July 31, asked in the heading: "Is Brunei well-equipped to expand its agriculture industry?" The writer of the article noted production had fallen 74.5 per cent from 4,259 tonnes in 1977 to the current 1,084 tonnes. He notes that despite agriculture being a part of Brunei culture and tradition on a very small proportion of its population is still engaged in the sector — mainly retired military personnel and a few from the older generation. The younger set is drawn towards more glamorous professions such as banking, IT, SMEs or the civil service. The writer argues despite more land being made available such as the 484-hectare land at Bukit Sawat in the Belait District by the Agricultural Department and the small number of the younger generation taking up managerial or administrative positions in the agricultural sector in the near future, it may not be quite enough to achieve His Majesty's goal of self-sufficiency.
No blame is placed on the Agriculture Department which it was noted is assisting local co-operatives like the Koperasi Setia Kawan (Koseka), to increase Brunei's self-sufficiency rate by seven per cent by 2010 in the way of subsidies for fertilisers, pesticides and farming equipment. Like the cattle ranch at Willeroo in the Northern Territory of Australia to provide the Sultanate with beef, the possiblity of buying a piece of land outside the country to supply rice to Brunei is mooted. This is a real possibility and has been applied by some Middle-Eastern countries like Saudi Arabia.
However, can we just conclude that it is too costly to produce in Brunei as it makes good economic sense now in the light of costly subsidies and rising prices of fertilisers in the wake of rising oil prices. Brunei being also an oil producer can compensate for this. Its oil resources will not last forever and oil prices have begun falling in the wake of the onset the current global economic crunch and the ensuing panic in global stock markets. In any scenario, the current rice self sufficiency of 3.12 per cent and dropping is critical and unacceptable and must be addressed.
Wednesday, October 8, 2008
THE key issue of improving national food security was the most important item in the titah of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam on the occasion of his 62nd birthday on July 15 this year. Highlighting the need to increase domestic rice production His Majesty asked why when countries which were already producing 70 per cent of their own needs were legislating to produce 100 per cent when Brunei which was only producing 3.12 per cent of its needs not making any effort to increase its rice production. Pointing to the current food crisis compounded by the diversion of grains to bio-fuel production, His Majesty stressed, "The attitude of completely relying on dollars to fill stomachs is no longer relevant with the emergence of this crisis."
There has been a dearth of discussion on this topic since it was highlighted. The Brunei Times in an article published on July 31, asked in the heading: "Is Brunei well-equipped to expand its agriculture industry?" The writer of the article noted production had fallen 74.5 per cent from 4,259 tonnes in 1977 to the current 1,084 tonnes. He notes that despite agriculture being a part of Brunei culture and tradition on a very small proportion of its population is still engaged in the sector — mainly retired military personnel and a few from the older generation. The younger set is drawn towards more glamorous professions such as banking, IT, SMEs or the civil service. The writer argues despite more land being made available such as the 484-hectare land at Bukit Sawat in the Belait District by the Agricultural Department and the small number of the younger generation taking up managerial or administrative positions in the agricultural sector in the near future, it may not be quite enough to achieve His Majesty's goal of self-sufficiency.
No blame is placed on the Agriculture Department which it was noted is assisting local co-operatives like the Koperasi Setia Kawan (Koseka), to increase Brunei's self-sufficiency rate by seven per cent by 2010 in the way of subsidies for fertilisers, pesticides and farming equipment. Like the cattle ranch at Willeroo in the Northern Territory of Australia to provide the Sultanate with beef, the possiblity of buying a piece of land outside the country to supply rice to Brunei is mooted. This is a real possibility and has been applied by some Middle-Eastern countries like Saudi Arabia.
However, can we just conclude that it is too costly to produce in Brunei as it makes good economic sense now in the light of costly subsidies and rising prices of fertilisers in the wake of rising oil prices. Brunei being also an oil producer can compensate for this. Its oil resources will not last forever and oil prices have begun falling in the wake of the onset the current global economic crunch and the ensuing panic in global stock markets. In any scenario, the current rice self sufficiency of 3.12 per cent and dropping is critical and unacceptable and must be addressed.
Tuesday, October 7, 2008
Six lessons from Wall Street
Six lessons from Wall Street
PROF JAMES PETRAS
CALIFORNIA
Tuesday, October 7, 2008
THE ongoing collapse of the stock market and the loss of hundreds of billions of dollars managed by Wall Street investment banks illustrate the pitfalls and danger of free market capitalism facing the entire working population of the United States.
1. The near bankruptcy of Social Security. The attempt by the White House and leading Republican and Democrat congresspersons as recently as 3 years ago to "privatise" Social Security — essentially turning over the management and investment of trillions of dollars in Social Security funds to Wall Street — with the argument that private investors would earn more, would have led to the bankruptcy of the entire Social Security fund. Privatisation would have allowed the major private investment banks to speculate and leverage even riskier financial instruments with the disastrous results we are witnessing today. While private pension funds go belly up - Social Security continues. It is the private pensions, which have gone bankrupt - not the publicly managed Social Security fund, contrary to the experts and critics of Social Security. Clearly the current private debacle argues for public control and management of pension programs.
2. All the major private pension funds for public and private employees, including TIAA CREF, Calpers and labour union pensions have lost anywhere between 23 per cent to 30 per cent since January and show negative growth over the past 5 years. Clearly linking pension funds to the stock market has severely reduced the living standards of retirees, forcing many to remain in the labor force into their seventies and beyond or to sink into poverty. Pensions linked to publicly funded productive activity would avoid the losses and risks embedded in investing in the stock market.
3. The bipartisan strategic decisions to convert the US into a "service" economy as opposed to an advanced and diversified manufacturing economy is the root cause of the collapse of the US financial system and the emerging long-term recession. From the 1960s onward, the political elite adopted policies that promoted finance, real estate and insurance, the so-called Fire sectors which raised rents, redirected subsidies, provided tax concessions and subsidies, and destroyed and displaced industry. The re-conversion of the Fire economy back to a balanced manufacturing economy and welfare state, essential for reversing the collapse of the US economy, will require a major political upheaval.
4. The massive flight of capital from productive sectors to Fire was accompanied by the huge surge of capital overseas, making the domestic economy over dependent on "services", particularly volatile and risky "financial services" and highly indebted consumers.
The conversion of the US from a diversified economy to a "Fire" monoculture increased the probability of a general collapse if and when the financial/real estate market went under. Recovery and sustained growth can only occur with the return of a diversified economy, the retention of capital from overseas flight and large-scale, long-term public investment and incentives for the productive and social service sectors.
5. The pursuit of military-driven empire building at the expense of joint ventures and reciprocal trade agreements with countries with expanding markets, strategic energy sources and large populations and markets, created enormous budget and trade deficits and alienated potential sources of markets and strategic commodities.
Trillion dollar military expenditures in pursuit of prolonged, costly colonial wars (without end), diverted funds from the application of technological advances and high-end manufacturing, which would have lowered costs and increased market competition. Equally important, by shifting from market-driven domestic expansion to overseas military-driven conquest, the entire axis of economic power shifted from industrial to financial capital. Finance capital essential to funding government budget deficits incurred through military expenditures, grew in influence — Wall Street replaced the steel-belt as the axes of power in Washington.
6. The ascendancy of militarism and financial capital facilitated the increase of influence of a virulent power configuration promoting the regional hegemonic interests of a colonial-militarist state specifically, a previously marginal political lobby - the pro-Israel-Zionist power configuration (ZPC).
The military-driven empire builders saw in the ZPC a strategic ally in pursuit of their global conquests; the ZPC saw an open door to high office and multiple opportunities to promote Israel's expansionist agenda through their influence in Congressional Committees, electoral campaigns and direct White House appointments. The ZPC surge to the top echelon of power was aided and abetted by the increase of financial support they received by members in strategic positions in the most lucrative financial institutions. The ZPC was an economic beneficiary of the speculative bubble: it was the massive infusion of financial contributions that allowed the ZPC to vastly expand the number of full-time functionaries, influence peddlers and electoral contributors that magnified their power - especially in promoting US Middle East wars, lopsided free trade agreements (in favour of Israel) and unquestioned backing of Israeli aggression against Lebanon, Syria and Palestine. Economic recovery is contingent on ending budget busting military imperialism. That will not happen unless there is a wholesale replacement of the political elite nurtured on the metaphysics of military-based global power.
No economic recovery is possible now or in the foreseeable future as long as the US Congress and executives provide trillion dollar bailouts to Wall Street's insolvent speculators, bankroll US$700 billion budgets of ever expanding war spending and while Zionist power brokers dictate US Mideast policies.
The lessons of the past tell us a great deal about what paths we should and shouldn't take.
Social Security still exists precisely because the US public rebelled and defeated its proposed handover to Wall Street and it remained a publicly run program. The financial system collapsed because the US economy "specialised" in a single crop - finance - at the expanse of a diversified productive economy. The political system is totally discredited because it is run by a failed political elite which blatantly represents and acts on behalf of a few thousand financial oligarchs; a couple hundred militarist oligarchs and a few dozen zealous Zionist organisations.
The "power elite" is only as powerful as it is able to manipulate, intimidate and beguile three hundred million plus US citizens into thinking that they are indispensable to their lives. The overwhelming popular rejection of the privatisation of social security and the Wall Street bailout suggests that the ruling oligarchy is not invincible.
Global Research
PROF JAMES PETRAS
CALIFORNIA
Tuesday, October 7, 2008
THE ongoing collapse of the stock market and the loss of hundreds of billions of dollars managed by Wall Street investment banks illustrate the pitfalls and danger of free market capitalism facing the entire working population of the United States.
1. The near bankruptcy of Social Security. The attempt by the White House and leading Republican and Democrat congresspersons as recently as 3 years ago to "privatise" Social Security — essentially turning over the management and investment of trillions of dollars in Social Security funds to Wall Street — with the argument that private investors would earn more, would have led to the bankruptcy of the entire Social Security fund. Privatisation would have allowed the major private investment banks to speculate and leverage even riskier financial instruments with the disastrous results we are witnessing today. While private pension funds go belly up - Social Security continues. It is the private pensions, which have gone bankrupt - not the publicly managed Social Security fund, contrary to the experts and critics of Social Security. Clearly the current private debacle argues for public control and management of pension programs.
2. All the major private pension funds for public and private employees, including TIAA CREF, Calpers and labour union pensions have lost anywhere between 23 per cent to 30 per cent since January and show negative growth over the past 5 years. Clearly linking pension funds to the stock market has severely reduced the living standards of retirees, forcing many to remain in the labor force into their seventies and beyond or to sink into poverty. Pensions linked to publicly funded productive activity would avoid the losses and risks embedded in investing in the stock market.
3. The bipartisan strategic decisions to convert the US into a "service" economy as opposed to an advanced and diversified manufacturing economy is the root cause of the collapse of the US financial system and the emerging long-term recession. From the 1960s onward, the political elite adopted policies that promoted finance, real estate and insurance, the so-called Fire sectors which raised rents, redirected subsidies, provided tax concessions and subsidies, and destroyed and displaced industry. The re-conversion of the Fire economy back to a balanced manufacturing economy and welfare state, essential for reversing the collapse of the US economy, will require a major political upheaval.
4. The massive flight of capital from productive sectors to Fire was accompanied by the huge surge of capital overseas, making the domestic economy over dependent on "services", particularly volatile and risky "financial services" and highly indebted consumers.
The conversion of the US from a diversified economy to a "Fire" monoculture increased the probability of a general collapse if and when the financial/real estate market went under. Recovery and sustained growth can only occur with the return of a diversified economy, the retention of capital from overseas flight and large-scale, long-term public investment and incentives for the productive and social service sectors.
5. The pursuit of military-driven empire building at the expense of joint ventures and reciprocal trade agreements with countries with expanding markets, strategic energy sources and large populations and markets, created enormous budget and trade deficits and alienated potential sources of markets and strategic commodities.
Trillion dollar military expenditures in pursuit of prolonged, costly colonial wars (without end), diverted funds from the application of technological advances and high-end manufacturing, which would have lowered costs and increased market competition. Equally important, by shifting from market-driven domestic expansion to overseas military-driven conquest, the entire axis of economic power shifted from industrial to financial capital. Finance capital essential to funding government budget deficits incurred through military expenditures, grew in influence — Wall Street replaced the steel-belt as the axes of power in Washington.
6. The ascendancy of militarism and financial capital facilitated the increase of influence of a virulent power configuration promoting the regional hegemonic interests of a colonial-militarist state specifically, a previously marginal political lobby - the pro-Israel-Zionist power configuration (ZPC).
The military-driven empire builders saw in the ZPC a strategic ally in pursuit of their global conquests; the ZPC saw an open door to high office and multiple opportunities to promote Israel's expansionist agenda through their influence in Congressional Committees, electoral campaigns and direct White House appointments. The ZPC surge to the top echelon of power was aided and abetted by the increase of financial support they received by members in strategic positions in the most lucrative financial institutions. The ZPC was an economic beneficiary of the speculative bubble: it was the massive infusion of financial contributions that allowed the ZPC to vastly expand the number of full-time functionaries, influence peddlers and electoral contributors that magnified their power - especially in promoting US Middle East wars, lopsided free trade agreements (in favour of Israel) and unquestioned backing of Israeli aggression against Lebanon, Syria and Palestine. Economic recovery is contingent on ending budget busting military imperialism. That will not happen unless there is a wholesale replacement of the political elite nurtured on the metaphysics of military-based global power.
No economic recovery is possible now or in the foreseeable future as long as the US Congress and executives provide trillion dollar bailouts to Wall Street's insolvent speculators, bankroll US$700 billion budgets of ever expanding war spending and while Zionist power brokers dictate US Mideast policies.
The lessons of the past tell us a great deal about what paths we should and shouldn't take.
Social Security still exists precisely because the US public rebelled and defeated its proposed handover to Wall Street and it remained a publicly run program. The financial system collapsed because the US economy "specialised" in a single crop - finance - at the expanse of a diversified productive economy. The political system is totally discredited because it is run by a failed political elite which blatantly represents and acts on behalf of a few thousand financial oligarchs; a couple hundred militarist oligarchs and a few dozen zealous Zionist organisations.
The "power elite" is only as powerful as it is able to manipulate, intimidate and beguile three hundred million plus US citizens into thinking that they are indispensable to their lives. The overwhelming popular rejection of the privatisation of social security and the Wall Street bailout suggests that the ruling oligarchy is not invincible.
Global Research
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