OUR ECONOMY!

Surprisingly enough, a college graduate and a political militant has been worried about the international monetary and nobody understands his concern or want to defend his approach.

In my humble opinion, his concern was also shared by the famous Egyptian economist Samir Amin. Recently, I question publicly the way that the Québec deficit, its expenses, the addition of indirect taxes and new charges for existing and new services relative to the hypothetical jobs creation as well as the possible perverse effects of these measures on Québec economy and its revenues.

The egiptian economist Amin brought the following points (La Presse, 15 of May, 1996) « what impress me now that the world trade is very popular, it is the effort devoted by rich countries to the defense of their interest as a parish at the expense of international values. World trade represents actually the success of the capitalism, its technological, military and of public opinion domination as well as the absence of international projects of society and even of national projects in rich countries ». This is a personal translation of the french text.

For Amin, poor countries cannot growth because they cannot accumulate capital and they have to stay away form the international system and to proceed to a self directed development similar to the American revolution or the Chinese revolution. Samir Amin do not refer to be untied to the international system but to a global international project.

The worst, he says, consists in the fact that northern countries do not have any project. They manage crisis after crisis, retrieve according to their proper interests, emphasize the aspect financial of the economy and floating rates of exchange, deficit reduction measures and the debts management allowing high unemployment rates. They try to make money with money without going trough production circuits which constitutes the only way to stimulate the economy. The counter attack could be fascist as in Germany and Italy, or social democrat in the form of the New Deal in United Sates. Even the cool war lead to half of a century of exceptional stability with considerable projects such as the Welfare State, the socialism or various national projects in under developed countries.

Russia economical failure and its miserable political approach » lead to a capitalism savage and ethnic wars. The power regime of northern regions, the arrogance toward under developed countries and racist view of an Africa left aside conduct us all to a process of decadence. However the examples of Haiti, Benin, Lebanon show that the omnipresence of rich countries is limited. Progress achieved in Eastern Asia also illustrate this phenomena.

What can be observed is the absence of projects which could alleviate crisis. Every body rely on the market, the new utopia based on the self regulated power. Chaos is maintained and obscurantism is present. To remedy to this situation and fight decadence, it will be necessary to apply reasoning , dialogue and negotiate social rules to be accepted by and for all.

My colleague observes that the actual system aims at a production increase based on technology and leads to the concentration of profits. The number of hours worked weekly could be reduced as well as salaries because less workers are needed than available in other words the offer exceeds the demand

For said under developed countries, honest prices for theirs natural resources and their products would raised their salaries and better their living conditions. These countries to the mercy of prosperous countries which they could resist to take advantage of this situation. Some elements of our society consider as unfortunate that the communist system resulted in a demobilization namely in reason of egalitarian if non leveling objectives. The economy (national and international) being complex, it is hazardous to try to frame and to plan it rigorously without harming its dynamism, its initiative and creativity of very numerous elements of the society. Others dream at the monetary policies put forward by the old creditist party namely the printing of additional money in this period of rationalization. Dollars caring which value on international markets ?

An healthy diversification of investments particularly for the economy of a small country should minimize risks and maximize return on investments and however suppose that you invested in other countries and vice versa. Capital originating from various countries are welcome and stimulate jobs creation. Very well ! However, these investments will be here for a given period according to their profitability .One could ask what is the advisable level of self financing of public finances and others in our actual climate of world and free trades ? How much and where should we concentrate our belongings , our investments, our capitals in counting on our national potential.

The economy of a large country such as some European countries can absorb drastic reductions, trimmings namely in public services but for Québec what is the just measure, treatment ? What is the limit in between the fat and the useful meat to refer to a popular expression ? Some countries having adopted such measures and their economy is still in a difficult condition. We could ask ourselves and observe which economical policies our important and prosperous american neighbors have adopted and with which degree of success ?

Odilon Talbot, P. Eng., M. Sc. (Birmingham, UK), Commonwealth scholar

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