Why capitalism is not the solution

Samir Amin, renown economist and director of the Third World Forum, explain through what he calls crony capitalism, why the neo-liberal policies have failed to promote social development in developing countries:

Very briefly, it has never been proven through logical reasoning that the free play of general markets, even on the (unrealistic) extravagant assumption of the existence of so-called transparent competition, would produce a balance between supply and demand (which moreover, would be socially optimal). On the contrary, logical reasoning leads to the conclusion that the system shifts from one imbalance to another without ever seeking to obtain equilibrium.


When implemented worldwide, the principles of liberalism create nothing, in the peripheries of the ‘Global South’ that agree to submit, but a crony capitalism based on a Comprador State, in opposition to the National State committed to sustainable economic and social development. Crony capitalism (and no other form is possible) thus does not produce development, but rather a lumpen-development.

Read the full article on Pambazuka.

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