SEPTEMBER 11, 2013

The counter summit showed the way out of the crisis

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To defeat the crisis, the governments must begin managing processes in the real economy, stimulating consumption, protecting and expanding markets. The replacement of the orientation towards "free trade" within the WTO's with a new regulatory policy, concentrating resources in the hands of the state and completely rejecting austerity measures is needed. In the field of new technologies truly revolutionary solutions are required to reduce the cost of the goods without searching for cheaper labour. The experts of the counter-summit, organised by the international initiative "Post-globalization” on 3-4 September in St. Petersburg, called for the implementation of such policies and establishing an economy of "expensive labour". The counter summits results were announced on 5 September in Moscow.

Government neoliberal policies are a major obstacle to the transition to a sustainable world economy and rapid growth. G20 is not able to eliminate this obstacle, although some countries already have the opportunity to change their socio-economic policies. The transition to a new state policy will lead to the collapse of U.S. hegemony and the formation of a multipolar world with  strong competitive economies and currencies. The revival of democracy in the world (not limited to procedures) is going to provide grassroots control over the social, economic and foreign policy actions.

The counter summit was held in a complex international environment in order to discuss the principles of a new economic and political order of the world. It issued an appeal on the crisis in Syria, condemning calls for bombing the country and called on the governments to find diplomatic solutions. The convening of an international conference with a wide participation of those involved in the Syrian conflict, as well as of foreign powers was proposed. At the end the counter summit adopted a common declaration.

In the field of economic policy the counter summit pointed out the need for a redistribution of the financial flows. "The funds should not go to banks, but create stimuli for the real economy and demand. This will lead to the emergence of new strong national markets, regulation, and social states", said the Egyptian economist Samir Amin. According to him, the countries must emancipate themselves from the U.S. and the neoliberal rules of the "Washington consensus." To overcome the crisis independent economic projects are needed. It is equally important to develop collective consumption. 

Currently, there is a risk that the crisis will intensify. "The change in Fed's policy has led to the growth of financial and market pressure on the BRICS and other countries," noted Laurence Brahm, an economic adviser to the Chinese government. He said the U.S. is trying to get out of the crisis at the expense of other states. Carlos Konsenday head of the International Secretariat of the Ministry of Finance of Brazil admitted the riskiness of the new financial situation. His colleague from Latin America Head of the Antimonopoly Service of Ecuador Pedro Paez stressed that stock market bubbles still remain due to the United States involvement.

"Without state support the derivatives market would have collapsed long ago," said the American economist Steve Suppan, analyst at the Institute for agriculture and trade policy. But, according to him, the U.S. government and business do not seek to curtail speculation.

The counter-summit identified the major problems of the world economy and proposed a new anti-crisis plan. In addition to the rejection of the principles of "free trade," the creation of a new regulatory strategy for marketing and production, as well as the concentration of resources in the hands of the state and public structures, revolutionary technological solutions are also needed. They should cover three areas: industrial robotics, power generation and new materials. Public transport and new technical solutions in the field of goods and passengers transportation are of great importance. Recent scientific developments allow us to rely on a prompt technological revolution in the world. It will provide a reduction in the production cost of goods, expand the assortment and accelerate the transition to a new system of economic management. The rejection of the prime orientation towards foreign markets will require deep integration with the neighbours, which will lead to the emergence of new and the strengthening of old big markets.

The initiative «Postglobalization» was formed on the 30th of April in Moscow with the participation of the Institute of globalisation and social movements (IGSO), the Transnational institute (TNI), Focus on the Global South, Institute for Policy Studies, ATTAC FRANCE and other international institutes. The international Postglobalization initiative aims to find new ways to recover the economy that suffers from the failure of the neoliberal project. The experts of the initiative are convinced that in 2008 a new era began. The crisis signalled the end of the financial globalisation (1982-2008) and paved the way for a development based on new economic and socio-political principles.

Postglobalization Initiative:

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