13.05.2007
Editorial: What economic model for Burma?
_ By Taisamyone
When Karl Marx set out his model for a utopian society, he envisaged that economies based on socialist principles would evolve into communes in which groups of individuals would take responsibility for their work and that human society would develop in a harmonious and fair manner. Revolution and the class struggle were seen as the only manner in which the workers of the capitalist economies of Europe could create a better world. When adherents to Marx’s principles took up the gun, they created not a state of tranquillity and prosperity for all, but a state of terror and poverty. Perverse distortions of Marxist thought have been used to impose totalitarian regimes on unwilling peoples across the globe, with the horrors inflicted by Josef Stalin and Mao Zedong creating slave states of suffering and fear. Russia had to abandon the centrally planned economy as a disaster. China managed to keep their political grip, by adopting and adapting the capitalist market economy. We just need to compare the achievements of East Germany versus West Germany, or Taiwan and South Korea versus China or North Korea – to see how prosperous market economies can grow under (loosely) democratic non-‘Communist’ control. Marx’s vision has been betrayed by those who espouse his theory and practice the opposite.
Marx was right to demonise the 19th century capitalism as anathema; it exploited the peoples of Europe and its militarist expansion overseas led to the colonisation and exploitation of Africa, and much of the Americas and Asia. It wasn’t until after the second World war that old capitalism was dismantled along with the colonial empires – those who tried to hold on to them soon became embroiled in wars of independence. European countries brought about nationalisation and welfare state control of health and education, and a degree of centrally planned economies. Modern economies are about change, not stagnation; de-nationalisation, privatisation and the beginnings of dismantling of welfare state systems is going hand in hand with globalisation and increasing global prosperity. Centrally planned economies have failed; open market economic models have been shown to succeed in achieving some of the goals that Marx sought for the impoverished workers of the world.
Burma’s road to socialism was a disaster to the economy from which the country has not yet recovered. The military have attempted to introduce a market economy, but one which they control and which their officers and officials use as a means of extracting personal wealth, not national growth. Western capitalism has only delivered prosperity for the home population because it has been regulated or controlled by an independent legal and judicial system that sets the ground rules for commerce, employment, trade and business dealings. This is government’s role in the economy; not one of control and supply in the hands of one dictator; but rules setting out the framework, guidelines and boundaries for business to operate in an ethical, safe and successful manner.
By selling Burma’s natural resources at below world market prices, the junta are selling short the people of Burma, and acting in much the same attitude of the European colonialists – extract the resources and add value at home. The examples shown by Burma’s neighbours offers a view of how it can be; an educated workforce undertaken contract assembly, basic processing locally and a growing economy based on a market economy that encourages foreign investment. Until the military regime has been dissolved and a democratic government empowered to transform the economy, foreign investors will stay away.
So, what are the policies of a market economy government and how will they affect our lives in Burma?
Economic issues:
Government spending should be reduced and so low taxes should be expected – however any government needs to ensure adequate spending on defence, law and order, infrastructure and social welfare programmes. Land doesn’t ‘belong’ to the government, so private ownership returns land to individuals and commercial organisations, subject to sorting out land claims and registration. An open free market economy is encouraged by economic development zones, targeted incoming foreign investment, and fostering of entrepreneurial skills. Once the economy starts to move and people have money to spend on consumer items, so the local economy is boosted. As China found out when they started on the market economy, those who work harder and longer earn more money.
Politics
Something the regime doesn’t want people to be involved with, but an essential ingredient for a democratic nation; the constitution will need an overhaul – federalism is in, central totalitarian control is out. More power and autonomy is divested to local state governments, able to understand and respond quickly to local conditions and local customs. Central government sets the framework for a society to work and takes its hands off the rudder, and its fingers out of the cashbox! Politics centres on developing a national spirit that holds it head high in the world, not one that has to apologise for, or be ashamed of, a fascist dictatorship military regime dragging the country down.
Society
As people in New Zealand are finding, the cost of the welfare state is one that must be paid for, either through taxes or through individual payment and insurance schemes. A healthy country (especially and developing one) needs a basic government backed provision to ensure the health, welfare, nutritional and educational needs of the population are met; not necessarily by government owned subsidiaries, but mostly provided by suitably regulated private contractors or suppliers. Numerous countries have a wide range of models to study and adapt for local conditions and resources. The basis of the welfare state is that the individual has to take responsibility for themselves, with ‘safety net’ provision and support from the state. It goes without saying that the Universal Declaration of Human Rights and subsequent UN declarations form the basis for developing social policy and encouraging respect for individuality and freedom of choice.
Burma will no doubt adopt an open market economy when the military regime is gone; a government that sets rules complying with international standards of finance, commerce, transparency and legality will encourage incoming investment in everything from mining to tourism. It will be the responsibility of the people and government of Burma to enact legislation that stimulates the economy from its current stagnation and at the same time protects the freedoms and rights of every individual. Marx is dead. Long live Marx!
For further information
¨ Walking around streets: Glimpses of country's economy and society
¨ EU to Design Bilateral Trade Deals, Supporting WTO-type Pact
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