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The Broken Economic Model (by Kamran Mofid)

Dear HumanDHS friends,

our friend and esteemed member of the HumanDHS Global Advisory Board Kamran Mofid has sent us the article below. Recommended reading!

Kind regards,
Uli Spalthoff

Friends,

Do you remember that Margaret Thatcher, the so-called Iron Lady!! She told the Brits that she was going to put the “Great” back into the “Great” Britain. Do you remember? Then, she told us this can only happen if we accept and implement the “Washington Consensus”, the so-called dreaded neo-liberalism. She told us that there was no alternative. She told us we will all prosper and develop more fairly and equitably. She won election after elections. Everything was privatised, deregulated, self-regulated. Industry, manufacturing, (the real economy) was destroyed. Instead, the banks and the bankers were encouraged to rule the world. The economists with no principles and values were “bought” and the business schools, such as Harvard and Columbia were showered with money to act as “Cheer Leaders” for the dreaded neo-liberalism (see the Inside Job for evidence). Communities were dis-mantled and dis-organised. We were told that there is nothing as a society and community. We are all in it just for ourselves, we were told. Destructive competition at the expense of life-enhancing cooperation, collaboration and dialogue was greatly prompted. We were told to say no to love, kindness, generosity, sympathy and empathy and say yes to selfishness, individualism and narcissism, as these values will fire the engine of capitalism and wealth creation! In short, the hell with the common good, we were encouraged to believe.

We were brained-washed. Our other Prime Ministers repeated her nonsense and have carried on her footsteps. It is now over 30 years since the neo-liberalism experiment in Britain. Are we any “Greater” than we were in 1979? Are we any fairer or more equitable? The country is nearly bankrupt, with public and private debt at unprecedented levels, with greatest levels of poverty and wealth disparity ever. The house of neo-liberal capitalism is now at nadir of decadence.

See the article below: it seems to me that the British Business Secretary agrees with what I have said above.

“We have had a very, very profound crisis which is going to take a long time to dig out of. It is about the deficit, but that is only one of the symptoms. We had the complete collapse of a model based on consumer spending, a housing bubble, an overweight banking system – three banks each of them with a balance sheet larger than the British economy. It was a disaster waiting to happen and it did happen. It has done profound damage and it is damage that is going to last a long time.”…Vince Cable, British Business Secretary

Read the article: http://www.guardian.co.uk/politics/2011/may/20/vince-cable-economy

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The most immediate question is: is there an alternative to the “madness” of the ”Washington Consensus”, the so-called neo-liberalism? Yes, of course. That is, if we decide to Lead with Wisdom. For example see:

Small is Beautiful: The Wisdom of E.F. Schumacher

http://gcgi.info/news/128-small-is-beautiful-the-wisdom-of-ef-schumacher

“Education of My Dream”

http://gcgi.info/news/129-education-of-my-dream

The Correlation Between Ethics and Economics: My Story and Journey

http://gcgi.info/news/130-the-correlation-between-ethics-and-economics-my-story-and-journey

 

Kamran

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Kamran Mofid PhD (ECON)

Adjunct Professor, Dalhousie School of Business,

Dalhousie University, Canada

http://sba.management.dal.ca

Founder, Globalisation for the Common Good Initiative

www.gcgi.info

Member of the International Coordinating Committee (ICC), the World Public Forum, Dialogue of Civilisations

http://www.wpfdc.org/

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