The challenge of economic development during the financialised phase of capitalism

THE CHALLENGE OF ECONOMIC DEVELOPMENT DURING THE FINANCIALISED PHASE OF CAPITALISM

Professor Seeraj Mohamed, economist

Tuesday 21 January  1.00 pm  COURSE FEES R110; Staff and students R55

Many commentators blame the government, state capture, collapsing state owned enterprises (SOEs) such as Eskom and Transnet, and poor levels of education for the moribund state of the economy. But the South African economy was struggling long before state capture, mismanagement and corruption at SOEs. Poor education outcomes, at least for the majority of the population, was a policy of the apartheid government. These commentators blame the symptoms rather than the causes of South Africa’s economic problems.

They do not mention the extreme levels of market and wealth concentration in the economy. They do not examine how the choices of powerful corporations shape the economy. They ignore the powerful influence of domestic and global financial corporations and institutions like credit ratings agencies, which ordain whether governments have credible economic policies.

Many developing countries that had widespread corruption, poorly performing SOEs and poor education outcomes have managed to industrialise, grow and significantly reduce unemployment, poverty and inequality. This lecture will show that current attempts at economic and industrial development must be analysed and understood within the shift to the new, financialised phase of capitalism and the imposition of neoliberal practices, interests and ideologies within countries and the effect it will have on their international economic and financial relations.

Recommended reading

Fine, B. 2010. Can South Africa be a Developmental State in Edigheji, O. (Ed.). The Potentials for and Challenges of Constructing a Democratic Developmental State in South Africa. Pretoria: HSRC Press.

Fine, B. and Seeraj, M. 2022. Locating Industrial Policy in Developmental Transformation: Lessons from the Past, Prospects for the Future, SOAS Department of Economics Working Paper No. 246. London: SOAS: University of London.

Mohamed, S. 2017. Financialization of the South African Economy. Development Journal. Vol. 59, issue 1–2.

pp. 137–142.

Mohamed, S. 2024. Persistent and Obscene Inequality: A Post-apartheid Policy Choice. New Agenda: South African Journal of Social and Economic Policy. no 93. pp. 17–32.

Polychroniou, C. 2017. Financialization has turned the global economy Into a house of cards: An Interview With Gerald Epstein, in Truthout. Available at https://truthout.org/articles/financialization-has-turned-the- global-economy-into-a-house-of-cards-an-interview-with-gerald-epstein/)

TO BOOK: https://www.webtickets.co.za/v2/performance.aspx?itemid=1554927233