Dear Editor,
The global financial crisis has its origins in the critical shortcomings of the capitalist system, namely the absence of guarantees by governments to monitor greed and corruption in the private sector; governments’ lack of enforcement of practical and correctly balanced regulatory interventions; and lastly, the sheer extent of government spending, even with legislative oversight. This was the situation existing in the United States which has caused havoc to the world economy. All those pundits who were foretelling the decline and collapse of the United States as opposed to the advance of countries like China, can now see that the USA got a ‘cold’ and then the whole financial world got a global ‘flu,’ including China.
But amidst all this financial turmoil, the USA will show the world its resilience, unity and tenacity in dealing with the causative factors of this financial crisis at home and abroad. Mr Bush has already started those processes; for example, individuals in corporate America are already been investigated at the grand jury level for possible corruption charges; Mr Bush is currently meeting major European leaders to formulate new agendas in dealing with the crisis while initiating a worldwide chain reaction of government intervention into private sector (banking in particular) domains by his $700 billion bail-out.
But political events in the USA hold unusual portents for the future, not only of financial markets, but of science and technology, arts and entertainment, conservation and energy independence and construction and infrastructural works related to the art of living. The general election on November 4, will show the real democratic nature of the American constitution when a truly epic modern political battle will conclude to produce changes long overdue; the last year has shown the world the strength of the democracy which Americans hold dear: McCain down , then he’s up; Clinton down but coming back; Obama catching hell for the Pastor Wright story and the world has been captivated. Democracy in action and the world knows it! And now, a President named Barack Obama and democracy is really fully back on track and it is the very American democratic traditions and values which will fuel the financial recovery in the global arena.
Capitalism has always faced crises and it is for its survival that unity in action on a world scale should be employed, and that is exactly what is being done in the face of a global recession. Modern capitalism has, by necessity, to become a more − as Bill Gates said − “creative capitalism” and that is exactly what is coming around the corner, but creativity in the free enterprise system is dependant on the political will and vision of those who run the government. That is why the changes which President Obama will bring will reverse the three tendencies which I referred to in the beginning of this letter; government spending will be cut, increased regulatory measures will be undertaken and corruption and skullduggery will be monitored and prosecuted more frequently.
The world capitalist system is the only viable economic avenue open to development and progress and it has proven its durability over the last few centuries. The underlying strength of this system is evident in the democracy which accompanies it − in the case of America, new barriers are being broken down with the elevation of Barack Obama. With America as the world leader, and with President Obama at the head, creative capitalism is poised to accomplish great victories.
Yours faithfully,
Cheddi (Joey) Jagan (Jr)
