As nations across the world have been pooling their efforts to contain the COVID-19 spread, the looming economic crisis has caught the attention of global intelligentsia. In the light of health emergency, The policy makers of Asia, Africa and Latin America have been struggling to steer the economic vehicle back to normalcy. Although, the reason for the economic slump could be attributed to the pandemic, it is also important to cast light on the economics of these tricontinental nations. Been as colonies for more than two centuries, these players had adopted the style of economics which is a mix of market economics and socialism. The imperial powers of the then Europe had colonised these nations and had subjugated them with their military and political maneuvers. Under the banner of White man’s burden, the Imperial masters had subverted the political, economical, social and cultural spheres of the colonies and had transformed these self-reliant societies into the ones which depend on Europe for finished products. The onslaught on the economical systems of colonies was done through one way trade. Though, the western powers brought the modern values to the third world during colonial era, they were twisted to their advantage. The European industrial machines were depended on the blood, sweat and tears of the people of colonies. It is clear that the reason for the backwardness of these players is the force behind the imperial powers which had eventually pushed them towards these regions in search of raw materials and markets i.e., Capitalism. Needless to say, the competition for resources and disaccord over the distribution of wealth of colonies led to twin world wars. Capitalism, as an economic idea, cannot survive in an environment of a limited market and resources. It needs borderless access, restless labour and timeless profit. While the European imperial powers had expanded their influence over Asia and Africa, the US had exerted its influence over Latin America. Earlier, at the dawn of modern-day Europe, The capitalist liberal order had challenged the old feudal system and the authority of church. Subsequently, the sovereign power was shifted to monarchial king. With the rise of ideas like democracy and liberty, complemented by the rapid takeoff of industrialization, the conditions were set for the creation of new class i.e., capitalist class. On the one hand, Liberalism, a polical facet of capitalism, restricts the role of state(political) in economical matters but on the other hand it provides enough room for the elite class and those who have access to power corridors to persuade the authority(state) to design the policies to their advantage. Inequality is an inescapable feature of liberal economics.
The powerful nations cannot colonise these nations as once done. The Watchwords like interconnectedness, interdependency and free trade are being used to continue their domination on these players. As soon as the third world nations were freed from the shackles of colonialism, they were forced to integrate their economies into the global economical chain. Characterized by the imbalance, the globalization has been used as a weapon by the Western powers to conquer the markets of developing nations.
The Carrot and stick policy of the US is an integral part of its strategy to dominate global economical domain. The sorry state of affairs in the Middle East and Latin America could be attributed to the US lust for resources. In the name of democracy, the US has been meddling in the internal affairs of nations across the developing world. Countries like Iran, Cuba, Venezuela, Libya, Iraq and Syria have challenged the US,a global policeman. Back in the day,soon after assuming the power, the Left leadership in Latin American countries had adopted socialist schemes and had nationalised the wealth creating assets, which were previously in the hands of the US capitalists. Irked by the actions of these nations, the US had devised a series of stratagems to destabilize the regimes and to install its puppets through the imposition of cruel sanctions and by dubbing them as terrorist nations on the pretext of exporting violent communist revolution. With the exception of the regimes of Fidel castro in Cuba and Hugo Chavez in Venezuela, the US is largely successful in its agenda of destabilizing anti-American governments in the region. The US has a long history of mobilising anti-left forces in Latin America, the region which US sees as its backyard, in an attempt to oust socialist leaders. At present, by hook or by crook, the trump administration has been trying to depose Nicolas Maduro, the president of Venezuela, a socialist.
In addition,The US has been colonising the minds of the third world citizens psychologically with its cultural hegemony and anti-left indoctrination. It is important to understand that the reason for the neo-fascism, which is unfurling across the developing and developed world alike, is rooted in capitalism.The third world citizenry is disgruntled and the ultra-nationalist right wing forces in these countries have been channeling the distress amongst the working class to solidify their position. Growing inequalities, Falling living standards, Joblessness and Insecurity are exposing the incompetence of capitalism and have been pushing a large chunk of workforce in the developing countries into a state of despair.Adding to their woes, the Covid-19 has hit them hard.
The US, with the help of IMF and the world bank, had coerced the developing countries to shun welfare economics.The term “Development” is highly contested in the economic domain.Capitalists argue that the true development of an individual and the society depends upon economic progress and the free market is a panacea for all problems.Given the monopolistic tendencies in the economical systems across the developing world, the free market is a myth, especially in a societies where a few of business families, who have cronies in policy making circles, dominates the economical and social scene.The time has come for the governments of these nations to address these issues and ensure that the wealth would be distributed in a more equitable manner.
