Articles by Prabhat Patnaik

While internationalisation of capital has entailed the end of the old fashioned agenda of economic nationalism, it does not logically entail an end to the agenda of economic nationalism per se, it is no accident that the only success stories of growth from within the third world in the context of internationalisation of capital have been countries which have pursued a relentless policy of economic nationalism, while those that pursued a

Devaluation, Dual Exchange Markets and Existence of an Equilibrium in a Flexible-Rates Regime A Theoretical Note Prabhat Patnaik This paper argues that a transition to an open economy flexible exchange rate regime may not be followed over time even by successful export-led growth. This point is being made by many; a possible theoretical under- pinning for it is provided here, namely, that allowing freedom to capital flows in third world conditions is likely to create a situation where more capital wishes to flow out of the country than wishes to flow in; and, under such conditions, reducing the level of activity in the country via a squeeze on real wages and investment caused by a depreciating exchange rate, as a means of stabilising the economy is both economically absurd as well as socially pernicious.

Aspects of the World Capitalist Economy in the 1980s Prabhat Patnaik Economic booms, characterised by rapid capital accumulation and a plethora of new processes and new products, are founded on crises, which periodically purge the economy of obsolescence. Artificially arresting the crises, through budgetary deficits, as is being done today in the US, can only lead to the 'crisis of postponed crisis'. The capitalist world may well attempt solutions to its current crisis which augur ill for the third world.

Some Comments Prabhat Patnaik In an economy of the size and with the characteristics that India has, the stimulus for industrialisation has to come from agriculture rather than from the external sector. Industry has to grow by 'exporting' domestically to the agricultural sector, rather than abroad. For this an acceleration of agricultural growth is necessary which in turn requires a restructuring of agrarian relations, larger public outlays directed towards agriculture and with better regional spread, and fair' terms of trade and marketing arrangements.

New Turn in Economic Policy Context and Prospects Prabhat Patnaik The growth strategy being pursued by the government, it is argued here, apart from its other economic, social and political consequences, does not even promise any great achievements. This is not to plead for a restoration of the earlier economic regime whose contradictions have paved the way for 'liberalisation' in the first place. Rather, these contradictions have to be overcome, but in a manner completely different from, and opposed to, what the World Bank and other agencies have been advocating. Not only must the orientation of economic policy change visibly in favour of the working people, but the implementation of policy must itself be based upon the active participation of the working people. Such a change would also have the effect of raising the working people above their preoccupation with economism and narrow sectional interests.