Wednesday, November 10, 2010

What´s Better A Platypus Or A Dog



Federal Capital (Paco Urondo Agency, published in Buenos Aires Economico on 11/05/2010)

Many words have been said and written the last painful days on the legacy of Néstor Kirchner. Some emphasis on its role as driver of the process, others on their ideas, and others on the economic model that he bore.

The latter emphasized the specific measures that comprise the cluster of policies and macroeconomic management of the current management of Cristina. However, it is also important to highlight the importance of what Nestor taught us in terms of economic philosophy. There is a before and after Kirchner for Argentina's economic theory, we are experiencing a paradigm shift. Some of the dogmatic neo-liberal beliefs have come down by reality itself, and very hard to be reborn.

The first fundamental break with Kirchner's economic model compared to the neoliberal model is linked to the conception of the value creation. Neo-liberalism, from its implementation since '76, implicitly and explicitly proclaimed that the speculation generated higher level of profitability than production, and well adapted legal framework for financial recovery is available to anyone and that the production of goods, so characteristic of our economy and pass background . It hides behind the notion that money can generate money. You can generate wealth without human labor, regardless of human labor.

Of course, such a model is feasible, since high levels of unemployment and poverty that are generated and more consistent correlation with this model are at the same time, guarantee low wages and low levels of organization of the working class but also a time bomb that finally exploded in 2001. Today, in the context of international crisis and the collapse of several financial and real estate bubbles, this idea came quite in crisis, but our country has pioneered an alternative thinking and Kirchner was leading economic model: a model rethought reindustrialization with social justice.

Secondly, this economic model broke with the famous theory spill. Once the output stage of convertibility and initiated growth no economic or Nestor or Cristina formed in wait to grow enough so that some of this growth trickles down to the weakest. The theory of the spill involves at its core two basic assumptions: first, that capital is good and when I on, the "donate" to the homeless, becoming a sort of distribution of wealth "natural." On the other hand, closes the discussion about whether economic history processes, for example, Peronism, have failed because distributed ahead of time rather than spend that surplus on deepening industrialization. Who pays is the question: it also could have been deepened by reducing the capital gains rate rather than adjusting for the workers.

Kirchner's economic model in its growth stage, used the political definition and state intervention as key variables in the distribution of income. Do not let the invisible hand of market run roughshod, waiting for the "natural distribution" to arrive sometime while thousands of our compatriots were in the worst conditions. This practice showed that neither the capital will distribute what's left over (because you never spare), or workers may be an adjustment variable. Were terminated theory of the spill.

The third point of rupture is related precisely to the workers as an adjustment variable. Both the recovery of employment rates of workers' wages were the result of active policies of the State. As few times in our history, the wages of the workers were ahead of inflation, which means that wage increases are not absorbed by the market through inflation. This breaks the myth that wage increases generate inflation, and it exposes the real problem of inflation: the concentration of Argentina's economy that, in a policy of encouraging demand, aims to cut the largest piece possible that injection of money into the market.

Amid the worst international crisis, the Argentine government responded by injecting more money in the market but do not bet on the big banks, but betting on the job. Whether incorporation of new workers as wage increases, universal child allowance, pensioners and increased pensions and Argentina cooperative program works, entered by way of resources workers virtuous cycle of Argentina's economy producing the impact of the crisis is not felt at our country, but also the inflationary outbreaks show the paradox of an economy concentrated in large economic groups that are price and try to win that resources at the expense of workers. Distributive struggle is at its peak.

A fourth break point between the current neoliberal model and the model is to put to politics ahead of economics . From the neoliberal dogma preaches that the economy is something like a science that the less you play, the better it works. The success of a model depends on how the market works best alone. The economy understood as an entity in itself isolated from the definitions and political will, and as a science, can hardly be questioned. This scientistic idea of \u200b\u200bthe economy conceals the true essence of it: the study of social relations of production, including dominations, which transforms it into a social science absolutely and totally linked to politics.

Related to this is the fifth and final rupture can be observed Kirchner economic model with respect to the neoliberal model. How good is the exact science economy, according to neoliberal dogma, it is good and renowned scientists. These are coated in this case-neutral technical economist, a-values, objectives and bearers of knowledge. Technocracy perfect for implementing a measured plan for science, accurate, and can not fail. Like all science and like any scientist, is unquestionable, and not everyone carries that knowledge. While political activists must stay clear of both science and economists, the real gurus. The economy is a thing of economists .

But Kirchner's economic model is not only an economic model is an ongoing transformation process, and as such, large open channels which allowed popular participation many compatriots start discussing things that were unique to a dark science and inaccessible. The economy is not nothing but our daily lives in order, and maybe that was what was clearer Nestor, also nicknamed "the shopkeeper." He knew that a person who could manage the economy of a home, a store or company could discuss politics, so he took the reins of the economy of our country, subordinating the role of Minister of Economy to the executive. Is the subordination of economic power for political power.

Nestor

Thus, the grocer, opened the opportunity to discuss major economic issues by the people we all, by joining our daily problems with the future of the country. But these breaks do not mean that the great neoliberal dogmas are defeated, but they are only the beginning of the construction of a new hegemony for the masses.

For this task and as a good legacy, lack of followers, and they are but who are campaigning every day this project. This legacy means that we must continue this work, Nestor opened the door must not only remain open but more open, we must continue to unite our neighborhood really, university, labor, reindustrialization economic model with social inclusion, because this and this only strengthens the level of popular organization, which are the sine qua non not only to continue this legacy, but in order to deepen this national and popular.

The author is a sociologist of the Research Group of National Economy and Popular (GEENaP) www.geenap.com.ar (Paco Agency Urondo)

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