Thursday, December 06, 2012

Food for thought

Will this coal or any other resource bonanza, mean a better life for the workers of that region? For the answer to that we go to Mozambique, one of the poorest countries in the world, torn by war and failed 'Marxist' economic policies (this is the New York Times reporting). Now, however, due to the discovery of large coal and gas reserves it has become an African Lion. World Bank estimates run to $70 billion for the gas alone. Far from the expected 'good' jobs in mining, the local workers were moved 40 kilometres away, housed in leaky buildings, and given barren plots from which to eke out a living. Just a bump on the road to prosperity you say? The rising tide will raise all boats? In Gabon and Angola, two more countries experiencing the curse of high growth, poverty has spiked. Probably the worst thing for an underdeveloped country is the discovery of something valuable to capitalism. Primitive accumulation -- moving people out of the way, by force if necessary and with government compliance, and the theft of those resources -- is a precondition of capitalism. John Ayers

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