Austerity's Wasted Years

Austerity has become the norm of economic management in the EU, Britain and the USA. In each it is offered as the answer to different problems but everywhere the result is cuts in public spending, higher unemployment and low growth, none of which helps recovery from recession. Labour's response should not be to endorse or continue austerity but to initiate a Keynesian expansionary stimulus based on borrowing and spending on a huge programme of building public housing for rent. This should be accompanied by a competitive exchange rate, an industrial policy to boost the manufacturing sector and a National Investment Bank, the aim being to expand the production base so that it can pay the nation's way in the World and support the structure and the improvements Labour needs. This makes the choice at the next election the issue of what kind of Britain the electorate wants to see: a low wage, mean economy or a determined attempt to rebuild a stronger nation with a more powerful economy.     

Change in state power,international conditions and peasant producers: The case of Kenya

Arguments for food self‐sufficiency at the level of small‐scale farms invariably refer to the need for national self‐sufficiency. This article shows that state‐inspired attempts to impose self‐sufficiency upon specialised middle peasant producers in Kenya have had the effect of reducing the supply of marketed food and increasing food imports. A change in the character of presidential power has also inhibited food production by large‐scale farms and this, together with imported price shocks, has reduced the supply of food for commercialised peasants who produce for international markets. Only very specific political conditions make it possible for international and internal circuits of capital and exchange to be harmonised through the power of a nation state.     

PUBLIC SECTOR PAY: JUSTICE WITHOUT INFLATION

This is the text of the second annual Redcliffe-Maud Memorial Lecture, organized by the RIPA and sponsored by PA Consulting Group, given in June 1985.