The above is the title of a paper presented by an economist Brian Browne at an event organised, last month by Atayese, a Pan Odua Socio-political self determination group, in Ibadan, to mark the 90th birthday of distinguished Prof. Adetoun Ogunsheye. 

Browne, by the way, is an African American, who with Asiwaju Bola Tinubu, co-authored “FINANCIALISM”, an explosive exposé on the inherent economic oppression confronting countries which embrace the injustice of Mainstream Economics. The following narrative is the second  of a 2-part summary of Browne’s observation, and should provoke a deeper reflection on a realistic exit plan from our eternal subjugation by financial predators. Please read on …  
“I will offer a few ideas on how to reshape our economies to provide more, but equitably for all.  These ideas are founded on empirical evidence; unlike mainstream economics, I have tried to make my ideas fit reality instead of trying to amend reality to accord with my thoughts. 

1). We must end the implicit peg to the dollar: African nations are commodity exporters. They create a new amount of national currency based on export dollar income. This way of determining the flow of national currency into the economy is an artificial, self-imposed limitation on fiscal policy. By pegging government expenditure to dollar intake, we allow the whims of foreign consumers to shape our fiscal policies. There is no sound economic reason to perpetuate this servitude, which clearly undermines Africa’s fiscal independence, and it is no less capricious than pegging government fiscal policy to how many stars are visible in the evening sky, on the third Monday of every odd numbered month.
It is a strange notion that foreign currency earnings are the best determinant of optimal fiscal spending levels. Instead of pegging our fiscal projections to foreign consumption patterns and foreign currency, African nations should peg their fiscal policy to the amount of money which they calculate will produce the optimal level of shared growth without sparking harmful levels of inflation.

2). Have the courage of deficit spending: Government deficit spending is basic to economic growth. When government runs deficits, the private sector runs a surplus and expands in socially beneficial ways. Greece perfectly demonstrates the utter failure of mainstream austerity economics; for example, when the IMF and EU imposed massive budget cuts on Greece, so that it could repay its debts to private banks, the private sector inevitably fell into a depression with such reduction in government spending and Greece is now a ghost economy  with deepening poverty and jobless rates that are typical of third World Nations.

Despite the obvious failure of their approach, the IMF and EU’s insistence that Greece continue to slice its budget is clearly a case of premeditated murder of a national economy. 
If the private sector is collapsing, government deficits are needed to extricate the private economy from recession’s gravitational pull. Spending must, however be geared to projects that yield jobs as well as those that spark follow-on economic activity.
3. Greater deficit but no greater debt: Increased spending should not, also be linked to new borrowing. The model of government borrowing money, that it has the sovereign right to print, is one of the world’s greatest scams.  Mainstream economists say this ruse prevents governments from causing inflation by printing too much money; this is a lie! This contraption was invented to provide banks with sure profit, as banks know that a government with its own currency can never default on a loan denominated in that currency. In essence, such  Institutional lending to government is actually the largest welfare scheme ever developed and trillions of dollars have gone to the largest banks under this guise.
 4. Industrialize:  The steep decline in commodity prices teaches an age-old lesson that a populous nation cannot attain prosperity based on natural resource exportation. A nation is better off manufacturing sturdy affordable cars or inexpensive machinist tools, than in cultivating a perfect cassava or tomato plant. Government must also institute a package of tax credits, subsidies and protection from imports for industries vital to national development, and committedly nurture domestic demand and intro-Continental trade through such groups as ECOWAS and other institutional mechanisms.
Undeniably, most African states require national industrial plans, with the same policies that moved my country from a weak pioneer nation in the 19th century to becoming the strongest industrial power within a century.  US policies strategically featured high import tariffs on foreign manufactured goods, the promotion of local industries and government funding of infrastructure. China has similarly, rapidly transformed from a backward agrarian nation to the world’s second largest economy with the same template.

Mainstream economists will complain that this undermines their beloved theory of comparative advantage. Conversely, I say judging by its practical effects, their theory undermines itself. They parade the theory as one of general application; I contend nonetheless, that it is one of limited application, and can only be beneficial if items traded between two nations may be different, but are at rough parity regarding the values of the traded products and the value of the inputs required to make the product.

However, such a confluence of parity is very rare; consequently, I offer the theory of “initial advantage” as being of more general application. For example, if two nations trade with each other, but one has a clear, even if small advantage, over the other concerning the export of a manufactured good, unless something occurs to change the terms of trade, the initial advantage of the one nation will compound over time to the benefit of that nation, but to the compounded detriment of the other. Although such trade imbalance in this instance might be called free, however, to call it fair is to insult moral decency. This is why America opposed free trade in the 19th century, but later changed its tune to free trade after it became the world’s most dominant economy. 
Under free trade the rich get richer and the poor can’t figure out why they are falling deeper into the ditch.

5. Help the farmer:  Governments should consider establishing commodity boards which ensure minimum prices for certain crops. Improved warehousing systems
will add to food security and lower prices and also enhance farm incomes. For their produce, farmers will receive warehouse scrip or tickets which they can also use to borrow money in the short-term, while agricultural mortgage loan corporations should be seriously supported.

The preceding suggestions are just a few ideas to consider in the search for a more just and prosperous global economy. Opposition to ideas which promote a more equitable trade model is as old as it is strong, and this is the fight of our times.

In conclusion, I leave you with these thoughts:  
Our political economy can never be perfect, as it is, but a human enterprise. Yet, its imperfection cannot be used as a pretext for wanton injustice and disregard for most of humanity. We must cling to the belief that man can attain higher levels of economic cooperation, in order to increase wealth for all and reduce scarcity worldwide. For this reason, we must all be compelled to raise the alarm against debt peonage and its fusion with Financialism to reshape the majority in their harsh image. We are in a fight pitting the imperfect against the utterly venal; while the former has civic purpose, the latter has no purpose, save the incessant feeding of its own selfishness. There really is no choice in deciding which side to join. We must do what we can to uphold the imperfection of man’s collaborative endeavors against the perfection of his selfish designs”.