[stop-imf] Africa should not pay its debts - Jeffrey Sachs
I happened upon this in the LBO-archive. Carl Remick asked a similar question about Jeffrey Sachs in 1998. CB ^^ Has Jeffrey Sachs changed his tune... Charles Brown CharlesB at CNCL.ci.detroit.mi.us mailto:lbo-talk%40lbo-talk.org?Subject=Has%20Jeffrey%20Sachs%20changed%20hi s%20tune...In-Reply-To= Tue Sep 15 06:34:34 PDT 1998 * Search LBO-Talk Archives Sounds like post-neo-neo-classical neo-keynesian globalism. Charles Brown Carl Remick cremick at rlmnet.com http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk 09/15 9:31 AM ...or am I just tone deaf? Just read a piece of his in the current Economist (9/12) Making It Work, where he emerges as a nemesis of the whole West-o-centric, top-down, model of global economic development. He says that a G16 (including eight LDC members) should be substituted for the G8, that there should be massive cancellation of external debt in the poorest nations and that developmental aid should shift from short-term loans to outright grants. He says it should be recognized that the IMF/World Bank have no political legitimacy in the developing world, e.g.: A G16 summit should take up fundamental reform of the international assistance process itself. The aim should be to restore legitimacy to local politics, and abandon the misguided belief that the IMF and World Bank can micro-manage the process of economic reform. To be sure, he also says: Developing countries are not trying to overturn Washington's vision of global capitalism, but rather to become productive players in it -- and that's what he want to help. Nonetheless, Sachs seems to be more fundamentally critical of central institutions of global capitalism than I had been aware. I'm confused. When The Wall Came Down, Sachs struck me as the embodiment of Western arrogance in his meddlesome, market-oriented prescriptions for Russian reform. When did he become such a bleeding heart? Carl Remick by Perelman, Michael I mentioned a couple days ago how much Jeffrey Sachs has moved to the left. Chris's message is further confirmation. As I said before, he has also been very strong on Haiti. Perhaps Paul A. has something to add about the relationship between Sachs and the United Nations. Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898 ^^
Re: Africa should not pay its debts - Jeffrey Sachs
From: Daniel Davies [EMAIL PROTECTED] I have not followed Sachs closely in most recent times but I think he would strongly object to being called a 'man of the left'. maybe I was being too charitable on this point ... I'd say he's a man of the left in the same sense in which Brad DeLong is ... [In other words, a man of the left as perceived by someone who needs a hit of clozapine. Here, chosen at random, is a recent selection from Brad-the-Celebrated Lefty's windy blog:] It may be because Barbara Ehrenreich is a typical voice of the American left that it will in all probability be a waste of ink and paper to put her on the Times op-ed page, but a waste of ink and paper it will most likely be. I agree that Barbara Ehrenreich is a very smart and graceful writer, a keen analyst of American culture and society--she is worth, say, ten of David Brooks. But her brand of left-wing politics is an infantile disorder. [More, much more, at: http://www.j-bradford-delong.net/movable_type/] Carl Well, Sachs writes better than DeLong, with much fewer cliches. -- Yoshie * Critical Montages: http://montages.blogspot.com/ * Bring Them Home Now! http://www.bringthemhomenow.org/ * Calendars of Events in Columbus: http://sif.org.ohio-state.edu/calendar.html, http://www.freepress.org/calendar.php, http://www.cpanews.org/ * Student International Forum: http://sif.org.ohio-state.edu/ * Committee for Justice in Palestine: http://www.osudivest.org/ * Al-Awda-Ohio: http://groups.yahoo.com/group/Al-Awda-Ohio * Solidarity: http://www.solidarity-us.org/
Re: Africa should not pay its debts - Jeffrey Sachs
I have not followed Sachs closely in most recent times but I think he would strongly object to being called a 'man of the left'. maybe I was being too charitable on this point ... I'd say he's a man of the left in the same sense in which Brad DeLong is; ie, the plain man would identify him as being a dangerous pinko subversive but by the relevant community standards of PEN-L, he's a lackey of capital. Oddly enough I mean by this no criticism of either BdL or PEN-L dd
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
One of the interesting things about the whole imbroglio is that very, very few African states have material debts to privately owned capital. It's almost all government-to-government debt or IMF debt apart from SA, Botswana and a bit of trade finance (which IMO shouldn't really be analysed as debt as it is self-liquidating working capital). dd Comment Correct again . . . to suggest that my debt be suspended because I have proven that I cannot and will not pay it is hardly radical . . . which was my real point. Africa really does not have a debt problem . . . the financial institutions - capital, have a debt problem.
Re: Africa should not pay its debts - Jeffrey Sachs
Paul wrote: I have not followed Sachs closely in most recent times but I think he would strongly object to being called a 'man of the left'. I have heard him point out that his macroeconomic views are thoroughly mainstream (akin to his Harvard ex-colleagues) and that indeed starting in Bolivia and Poland he argues that liberalization and market reforms had to proceed *faster* and more comprehensively than the IMF or the WB had thought possible (hence the appellation 'shock therapy'). I have refrained from saying anything about Jeffrey Sachs or (Joseph Stiglitz) being more to the left than other economists, especially in their role as window dressing at Columbia University--my employer. But one of these days, probably after I retire, I'll have plenty to say about the shock therapy that can go on at a place like Columbia University under the noses of these people. -- Marxism list: www.marxmail.org
Re: Africa should not pay its debts - Jeffrey Sachs
From: Louis Proyect [EMAIL PROTECTED] I have refrained from saying anything about Jeffrey Sachs or (Joseph Stiglitz) being more to the left than other economists, especially in their role as window dressing at Columbia University--my employer. Come, come. You're not threatening a crime against Columbia U. property a la 1968 -- occupying the president's office, smoking his cigars, etc. Just offering a bit of candor about one of the local all-stars. Surely Kings College can't be *that* repressive these days ;-) Carl _ Get fast, reliable Internet access with MSN 9 Dial-up now 2 months FREE! http://join.msn.click-url.com/go/onm00200361ave/direct/01/
Re: Africa should not pay its debts - Jeffrey Sachs
From: Daniel Davies [EMAIL PROTECTED] I have not followed Sachs closely in most recent times but I think he would strongly object to being called a 'man of the left'. maybe I was being too charitable on this point ... I'd say he's a man of the left in the same sense in which Brad DeLong is ... [In other words, a man of the left as perceived by someone who needs a hit of clozapine. Here, chosen at random, is a recent selection from Brad-the-Celebrated Lefty's windy blog:] It may be because Barbara Ehrenreich is a typical voice of the American left that it will in all probability be a waste of ink and paper to put her on the Times op-ed page, but a waste of ink and paper it will most likely be. I agree that Barbara Ehrenreich is a very smart and graceful writer, a keen analyst of American culture and society--she is worth, say, ten of David Brooks. But her brand of left-wing politics is an infantile disorder. [More, much more, at: http://www.j-bradford-delong.net/movable_type/] Carl _ Check out the latest news, polls and tools in the MSN 2004 Election Guide! http://special.msn.com/msn/election2004.armx
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
Sachs has always been basically a man of the left, and has been saying sensible things about sovereign default fo longer than anyone else I can remember (including me and Richard Portes). Perhaps the whole Harvard Institute thing should be viewed by revisionist historians as a brief aberration in the career of a basically good bloke. dd -Original Message- From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Perelman, Michael Sent: 09 July 2004 17:30 To: [EMAIL PROTECTED] Subject: Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs I mentioned a couple days ago how much Jeffrey Sachs has moved to the left. Chris's message is further confirmation. As I said before, he has also been very strong on Haiti. Perhaps Paul A. has something to add about the relationship between Sachs and the United Nations. Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
In a message dated 7/10/2004 12:27:28 PM Central Standard Time, [EMAIL PROTECTED] writes: Sachs has always been basically a man of the left, and has been saying sensible things about sovereign default fo longer than anyone else I can remember (including me and Richard Portes). Perhaps the whole Harvard Institute thing should be viewed by revisionist historians as a brief aberration in the career of a basically good bloke. dd Comment There is some basic economic common sense involved in exchange and debt. As long as I owe the banks and financial institutions $50,000 and a house mortgage I have a problem . . . a debt problem. When the banks allow me to run my debt up to $1,000,000 - and I am making ever humanly possible effort to attain this goal ... they have the problem. $50K . . . my problem . . . $1m . . . the banks problem. And I have forbidden the wife from us ever discussing insurance to cover our debt. Africa cannot pay its debt and the Russians are stopping payments here and there. Putin is burning the midnight oil . . . and the shift is going to hit the fan. What is taking place is the first wave of political assertions of the real social revolution. Sorry if it does not conform to the text in ones head. Melvin P.
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
From: Daniel Davies [EMAIL PROTECTED] Sachs has always been basically a man of the left, and has been saying sensible things about sovereign default fo longer than anyone else I can remember (including me and Richard Portes). Perhaps the whole Harvard Institute thing should be viewed by revisionist historians as a brief aberration in the career of a basically good bloke. dd Like Paul Krugman's honorarium from Enron? Carl _ MSN Toolbar provides one-click access to Hotmail from any Web page FREE download! http://toolbar.msn.click-url.com/go/onm00200413ave/direct/01/
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
Really? That's quite an aberration-- participating in the dismantling of the Russian Revolution, transforming the remnants of socialized property into private fortunes. And now Sachs got religion? Yeah right, him and O'Neil. Save us from the basically good blokes and we can handle the rest. - Original Message - From: Daniel Davies [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Saturday, July 10, 2004 10:27 AM Subject: Re: [PEN-L] Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs Sachs has always been basically a man of the left, and has been saying sensible things about sovereign default fo longer than anyone else I can remember (including me and Richard Portes). Perhaps the whole Harvard Institute thing should be viewed by revisionist historians as a brief aberration in the career of a basically good bloke. dd
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
From: sartesian [EMAIL PROTECTED] Really? That's quite an aberration-- participating in the dismantling of the Russian Revolution, transforming the remnants of socialized property into private fortunes. Bingo. As with, Apart from that, how did you enjoy the play, Mrs. Lincoln? Carl _ FREE pop-up blocking with the new MSN Toolbar get it now! http://toolbar.msn.click-url.com/go/onm00200415ave/direct/01/
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
In a message dated 7/10/2004 1:11:33 PM Central Standard Time, [EMAIL PROTECTED] writes: Really? That's quite an aberration-- participating in the dismantling ofthe Russian Revolution, transforming the remnants of socialized propertyinto private fortunes. And now Sachs got religion? Yeah right, him andO'Neil. Save us from the basically good blokes and we can handle the rest. Comment Correct again . . . to suggest that my debt be suspended because I have proven that I cannot and will not pay it is hardly radical . . . which was my real point. Africa really does not have a debt problem . . . the financial institutions - capital,have a debt problem. This "thing" about the absolute general law of capitalist accumulation is . . . interesting. We are facing perhaps the greatest polarization between wealth and poverty in human history as the absolute _expression_ of the absoluteness of capital accumulation . . . in America . . . not overseas or somewhere else and apparently this is not understood. The industrial reserve army of unemployed belongs to another period of history - when the industrial system is in ascendency and the population is being converted into modern proletarians. The population of America is not being converted into modern proletarians but facing an absolute reduction in real wages that has been taking place for a solid thirty years. They were already proletarians. Perhaps it will take another ten years or so to understand that we are dealing with a different set of factors generated as the absolute _expression_ of the absoluteness of capital accumulation in America . . . not overseas or somewhere else. Seems to me that two sets of factors obscure what should be obvious. Monetary policy as US dominated exchange and debt structure . . . the printing of worthless money and the low wage structure in areas like China that allows that labor embodied in their commodities to fall faster than the real wages of the American consumer. This is not to say . . . it is China's fault . . . but rather the absolute _expression_ of the absoluteness of capital accumulation. And of course the low wages of the workers in China do not appear in the pay envelop of the American workers. What the American workers get is Wal Mart while their wages drift to the bottom or towards zero and not away from zero. And yes . . . China is currently hitting the wall as the absolute _expression_ of the absoluteness of capital accumulation . . . not the scrabble for "natural resources" and population matters. Securing oil reserves will save no one . . . which is why Putin is burning the midnight oil. Nothing short of proletarian revolution in Russiapromises even a glimmer of hope no matter how many "gangster capitalists "Putin steps on. I simply enjoy seeing capitalists jailed under any pretext. Why we always have to be the only ones in jail . . . although I enjoy your jail house rap. Billionaires in Russia . . . China . . . America is of course the absolute _expression_ of the absoluteness of capital accumulation . . . while the soup kitchens grow in America, and theseare working families . . . not the industrial army of reserve of one hundred . . . no . . . fifty . . . years ago. Social revolution does not require our working class to be reduced to the level of the India peasant of the past. "What is taking place is the first wave of political assertions of the real social revolution," means the bourgeoisie response to debt. Liquidating debt means you have a chance to accumulate it again . . . as the absolute . . . . Melvin P
Africa should not pay its debts - Jeffrey Sachs
I have not followed Sachs closely in most recent times but I think he would strongly object to being called a 'man of the left'. I have heard him point out that his macroeconomic views are thoroughly mainstream (akin to his Harvard ex-colleagues) and that indeed starting in Bolivia and Poland he argues that liberalization and market reforms had to proceed *faster* and more comprehensively than the IMF or the WB had thought possible (hence the appellation 'shock therapy'). One place Sachs has differed from his ex-colleagues is his willingness to also criticize the donor countries/IFI's strongly and publicly for not providing the financing and market access that would fund these free market reforms. Also, unlike many of his colleagues, he has not held a post in these governments or institutions nor received a large part or his financing from them (he has only a recent part-time advisor/commentator role at the U.N.). Most of the time he has been brought in as a consultant to a government that supports greater free market policies (the Haiti case is more complicated) but seeks to have an advocate in negotiating a better financed deal, with more debt relief. So the Africa statement is not a departure from his past record. Sachs also differs in his preparedness to delve into U.S. congressional insider politics (his late father, a prominent lawyer, was a significant figure in Chicago democratic politics, including I believe a role in support of the Civil Rights movement in the '50s which Jeffrey cites as an influence in his support for social services in the 3rd world). Paul Sachs has always been basically a man of the left, and has been saying sensible things about sovereign default fo longer than anyone else I can remember (including me and Richard Portes). Perhaps the whole Harvard Institute thing should be viewed by revisionist historians as a brief aberration in the career of a basically good bloke. dd
Re: Africa should not pay its debts - Jeffrey Sachs
I wonder how many economists come to their work through political families. Paul Romer Sam Bowles come to mind. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
- Original Message - From: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Friday, July 09, 2004 5:10 AM Subject: [stop-imf] Africa should not pay its debts - Jeffrey Sachs http://news.bbc.co.uk/2/hi/business/3869081.stm BBC News July 6, 2004 Africa 'should not pay its debts' A special adviser to the United Nations secretary general Kofi Annan has said African countries should refuse to repay their foreign debts. Mr Annan's economic adviser Jeffrey Sachs first called on developed countries to cancel Africa's debts. But failing that, he said Africa should ignore its $201bn (£109bn) debt burden. Economic analysis, he said, had shown that it was impossible for Africa to achieve its development goal of halving poverty if it had to repay the loans. The time has come to end this charade, he said. The debts are unaffordable. If they won't cancel the debts I would suggest obstruction; you do it yourselves. 'A serious response' Africa should say: 'thank you very much but we need this money to meet the needs of children who are dying right now so we will put the debt servicing payments into urgent social investment in health, education, drinking water, control of aids and other needs,' he told the BBC's World Business Report. Mr Sachs insisted that such a response was serious and responsible, providing that the money was used transparently and channelled only into urgent social needs. And he denied that it would bar African countries from accessing money from the capital markets in the future. They won't be able to access those markets anyway until the debt is forgiven, he explained, adding that there is no reason why they shouldn't be able to borrow again provided the forgiveness was negotiated in a cooperative manner. Mr Sachs is special adviser to Kofi Annan on global anti-poverty targets. Reluctance He made his comments at a conference on the eve of a summit of the heads of state of the African Union in Ethiopia. He called on the developed world to double aid to Africa to $120bn a year in order to meet commitments made in 1970. There is some sympathy in some of the rich donor countries for the idea of debt cancellation. The British Chancellor of the Exchequer or finance minister Gordon Brown, did float the idea before the recent summit of the G8 major powers in the United States, although there has been no decision and some creditor countries do have a history of reluctance on debt relief issues. But none would be likely to welcome a unilateral decision by the poor countries themselves simply to stop paying their debts, which are owed mainly to international organisations such as the World Bank and to rich country governments. ___ stop-imf mailing list [EMAIL PROTECTED] http://lists.essential.org/mailman/listinfo/stop-imf To subscribe or unsubscribe by e-mail, send a message to [EMAIL PROTECTED], with your administrative request in the subject line. Or go to http://lists.essential.org/mailman/listinfo/stop-imf
Re: Fw: [stop-imf] Africa should not pay its debts - Jeffrey Sachs
I mentioned a couple days ago how much Jeffrey Sachs has moved to the left. Chris's message is further confirmation. As I said before, he has also been very strong on Haiti. Perhaps Paul A. has something to add about the relationship between Sachs and the United Nations. Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901
