In the Thunderous Sky of Greece a Lightning Bolt of Creative Destruction is about to Strike the Country

The most respectable German newspaper Handelsblatt, proclaimed Antonis Samaras as the greatest European politician for the year 2012. At the same time the illustrious former Foreign Minister of Germany Hans-Dietrich Genscher, also praised Samaras in glowing terms as the politician, who after admitting his own mistakes and the disastrous economic policies of Greece that brought the latter to the brink of insolvency, brought the country with remarkable celerity and unsurpassable decisiveness on the right course that would rekindle the economy and lead the country toward economic development. Goldman Sachs is predicting that in the next 10 years Greek GDP will increase by 30%. The rating agency Moody's increased the financial status of Greece by six points.

It’s for this reason that I’m republishing the following essay which was written on April 27, 2012, for the readers of this blog.


By Con George-Kotzabasis April 27, 2012

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%--18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmy’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt; particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician, that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government--which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate--will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would make harder rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month--that were reduced drastically by the second Memorandum under the austerity measures--and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion. Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made--to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta

In the Thunderous Sky of Greece a Lightning Bolt of Creative Destruction is about to Strike the Country

By Con George-Kotzabasis April 27, 2012

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating  such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%--18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically 'pigmyfied' parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt;  particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician,  that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

 In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government--which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate--will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it  by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would harden rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month--that were reduced drastically by the second Memorandum under the austerity measures--and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they  would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.  

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion.  Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made--to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta                             

Defection of Gaddafi's Foreign Minister Presages the Collapse of the Regime

The following short piece that was written on April 1, 2011, predicted the present collapse of the Gaddafi regime.

NATO in Libya Fraught with Peril April 01, 2011

By Sean Kay The Washington Note

A short reply by Con George-Kotzabasis

Sean Kay’s NATO in Libya Fraught with Peril, is politically inept and has already been overcome by events. As we had predicted, the end result of a decisive military intervention by Western powers would be to bring the collapse of the Gaddafi regime. Now the degringolade of the regime is imminent. This is clearly foreshadowed by the defection of foreign minister Moussa Koussa, a close collaborator of Gaddafi and a former director of Libyan Intelligence to boot, that sets the example for other high officials of the regime to follow.

Who would be a better qualified person than a former director of Intelligence to read correctly the vibes and disposition of the Libyan people toward the regime, and more importantly, the latter’s inability to suppress the bouleversement against it, and hence induce Mr. Koussa, for these reasons, to abandon the doomed sinking ship of Gaddafi?

Which Record is Worse Market Failure or State Failure?

By Con George-Kotzabasis

Those who so lackadaisically, ignorantly, and one-sidedly, like the liberal ‘questions’, dismiss the efficiency and effectiveness of the “free market” that since its origins and rise has increased by leaps and bounds the standard of living of the masses, according to the Indian economist Amartya Sen, should consider the following: if someone objectively and impartially contrasted historically “market failure” with “state failure” the latter would outweigh the former by tons. A recent egregious example of state failure is President Obama’s spending of a trillion dollars to create jobs. Not to mention the historical example of the failure of the Soviet Union, with its inherently command dirigiste policies, which economists of the stature of Ludwig von Mises had predicted all along.

Technology Despite its Discontents Opens the Door to Prosperity

By Con George-Kotzabasis

You place important questions in your post. Indeed, technology is an important, if not the most important, “driving force” to globalization, and whilst it unites the world on an economic and a scientific level it simultaneously sunders it on a geopolitical level as a result of the different strategic interests of the major players on the global chessboard.

Globalization however is no longer a choice as it has become virtually an elemental force and those who resist it are bound to suffer its inevitable tragic consequences. Also, whilst many governments that are aware of the problems posed by globalization will “work together”, as I adumbrated above, some will not. But those that will cooperate and deliver political stability and economic prosperity will have the majority of the world’s peoples on their side.

I like your opening with caterpillars and butterflies which concisely illustrates the evolutionary development of all things, and in whose development “creativity” plays the primary role.

Obama Doctrine of Leading from Behind Leads to the Destruction of America's Preponderance

History teaches that weakness is provocative. Time and again weakness has invited adventures which strength might well have deterred. Donald Rumsfeld

By Con George-Kotzabasis—July 10, 2011

One of Obama’s advisers described oxymoronically the actions of the president in Libya as “leading from behind.” At a historic moment for the people of North Africa and the Middle East when the winds of change are sweeping away a caste of authoritarian regimes, the USA under President Obama, has chosen not to be the avant-garde promoter and backer of this change but its rearguard.

Not since Rome was saved by the cackling of the geese from a barbaric invasion has there been a great event happening as an outcome of a humdrum ‘insignificant’ action. But in Tunisia, in February 2011, a street vendor would save the Arab peoples from the rapacious and brutal clutches of a conglomeration of despotic leaders. In such graphic terms historians write about the fates of people: the catalysts of great events are often the most ordinary of people; and the abortionists and ‘stiflers’ of great events are often those who have power but who are too timorous and abhor to use it due to their  Lilliputian leadership. Hence, we see the ‘abortionist’ Obama contra Bouazizi, the Tunisian street vendor who by self-immolating himself in protest against the officials of a corrupt regime sparked the Arab revolt. President Obama as the leader of the most powerful nation of the world that is engaged in war with a mortal enemy, as Commander-in-Chief, instead of decisively helping and making sure that the Arab revolt against their oppressors succeeds, timidly decides, on so called pragmatic grounds, not to commit the necessary resources for such strategic, grandiose, and humane goal.

Furthermore, Obama’s strategic shift to “remove 10,000 of our troops from Afghanistan by the end of the year, and we will bring home a total of 33,000 troops by next summer,” irrespective of conditions on the ground, which was his previous position, and not heeding and rejecting all his military commanders, from Admiral Mike Mullen to General David Petraeus, who cautioned him that an unconditional withdrawal from the country could imperil all the advantages that the Coalition had won over the Taliban with last year’s military surge, and indeed, could increase the danger to the remaining U.S. and allied forces and hence augment the number of casualties among them. President Obama, however, who presumably is deeply concerned about American lives lost in the war, totally disregarded this pre-cautionary and prudent advice coming from his top commanders and stuck doggedly to his schedule of withdrawal, which proved as some commentators said, his pulling out the troops had more to do with his prospects of being re-elected as president in 2012 than with the strategic and security interests of the United States.  The sage commentator of the Washington Post, Charles Krauthammer poses the question: so why the choice of the end of summer 2012. The budget savings are trivial but the increased risk of mission failure in Afghanistan is great. The obvious answer is that domestic political considerations motivated President Obama to adopt this profoundly flawed strategy that will embolden its fanatic enemies to open new fields of battles against the U.S., and indeed attack it once again directly. Thus President Obama by disengaging from his implacable and irreconcilable foe externally he will be ‘inviting’ this sinister and deadly enemy to attack America internally.  

Afghanistan Remains Pivotal In The War Against Global Terror

The commanders on the ground aimed to consolidating the gains in southern Afghanistan and begin the major operations to secure the east, as their campaign plan had envisioned. With the announced ill-conceived withdrawal that will now be impossible. Moreover, as the outgoing Joint Chiefs of Staff Adm. Mike Mullen has warned, Obama’s decision will increase the risks to the troops and increase the chance that the mission will not succeed.

The Ivy League law professor, combined with the simplistic tasks of community organizer, who by the mere hateful animus a majority of Americans had against the Bush administration, and by association against Republicans, was pushed into the White House without anyone being genuinely concerned to scrutinize his political astuteness, mettle, experience , and ability to become  the Commander-in- Chief  in these most dangerous of times, does not comprehend the high stakes involved in a pre-mature withdrawal of U.S. forces from the battlefield of Afghanistan. He is incapable of seeing or unwilling to face the stark reality that America perforce after 9/11 put the flower of its youth in the frontlines of Afghanistan and Iraq for the purpose of defeating a dangerous and irreconcilable enemy, who would continuously threaten the security and well being of Americans until the day when he was totally disabled and beaten. Does the President seriously contemplate that by withdrawing his troops from Afghanistan, pulling them out of harm’s way, as he puts it, he will not be harming inevitably the vital geopolitical interests of the United States and the security and economic interests of its own people? Does he sincerely believe that by the cessation of U.S. military involvement in Afghanistan against the Taliban and the ‘compound’ of Islamist fanatics that are concentrated in the Pak/Afghan region, he will not confronting them again in the near future in the same areas or in other Muslim countries, and indeed, within the heartland of America itself, and that like King Canute he will stop the tidal wave of fanatic terrorism from advancing to the shores of America, especially when the withdrawal will be seen by the combatants of Islam as a decisive defeat, like the Soviet’s, of  the American Satan? Does he not understand the Rumsfeldian principle that “weakness is provocative?”

No serious political thinker sees the war against Islamist extremists as a mistake or as an exercise of American expansion and domination. On the contrary, it is seen as a rational and urgent pre-emptive defensive response to the greatest threat that Western civilization will be facing in the twentieth-first century with the possible coupling of terrorists with rogue states armed with weapons of mass destruction. And by its nature, this will be a long war that cannot be shortened by Obamanesque makeshift political contrivances that will satisfy the polloi, and by attitudinal changes toward this fanatical implacable foe.  The war can only be shortened, as was shown in Iraq, only when the enemy realizes that he is confronting an unflappable determined opponent who demonstrates his willingness to use his firepower relentlessly and remorselessly against him. It is by instilling the terror of annihilation into the hearts and minds of the terrorists that one can decisively subdue them.

The politically diffident and strategically un-savvy and poll-driven Obama is incapable of carrying on his politically rickety feet the heavy weight of statesmanship on his shoulders and thus protect America and the civilized world from the future ravages that the Islamist witches are concocting against the ‘infidels’. His rearguard presidency of “leading from behind,” saps the political oak of America of all its strength and makes it defenseless against the winds that are stirred up by Allah’s holy warriors. Obama’s unwillingness to engage the Gorgon of terror and its sponsors whenever and wherever it raises its head and cut it off, makes his presidency alien to the greatest danger the world is facing while at the same time enervates America’s preponderance in world affairs.  Only the removal of this totally inept and weak president will once again strengthen the United States against this infernal foe who threatens civilized life on a universal scale; only a new president with the daring and vitality of a Perseus to cut off the Gorgon’s head will rescue the ‘unbelievers’ from being decapitated by the scimitar of fanatic Islam.

I rest on my oars:your turn now...

Euthanasia of the Presidency under Obama

By Con George-Kotzabasis

President Obama is placing the vibrant presidency of the most powerful nation in the world in the hands of the practitioners of euthanasia as if America were in the agony of its death throes. Cynical about America’s global political and military power; cynical about its ability to win the war against its deadly and irreconcilable enemy; cynical about its peoples’ steadfastness and determination to wage war against the fanatical hordes of Islam that threaten America’s heartland; cynical of its European allies’ resolution--under indomitable and sagacious US leadership--to fight the same war; and cynical of the capacity of the best professionally trained armed forces in the world, i.e., the American, to defeat an impromptu organized group of terrorists, who bereft of cool strategic nous in comparison to its ‘infidel’ opponents, are impulsively fighting the Great Satan and all the other little Satans of  the West  with the fanatical cry of Allahu Akbar,  President Obama has chosen, due to this inveterate cynicism and to his guileful and odious politics as we shall  see further down, most imprudently strategically and politically and sans amour propre to retreat from the battlefield, with macabre geopolitical consequences for America’s prestige as a superpower, and take cover behind a no longer fortress America.

As we predicted early in 2009, during the long gestation of the president’s ‘new strategy’ for Afghanistan which under the pretence of giving serious consideration to the request of his senior commander in Afghanistan General McChrystal to increase the troops by 40,000, he dithered his decision not however for the purpose of how to win the war but for the purpose of weighing the political costs that would accrue to him if he had accepted the advice of his general. And when finally he made his decision, he increased the troops by 30,000 while handing to his National Security team a memo setting the strict terms that this increase included the July 2011 start date for a US troop withdrawal. Hence, Obama as Commander-in-Chief, whilst his brave soldiers and astute generals were spilling their blood in the rugged terrain of Afghanistan fighting the Taliban with the aim of defeating them, all he was thinking about were the political costs that would bear upon him as a result of his apparent greater involvement in the unpopular war. So Obama’s ‘serious’ and long deliberations before he made his decision had nothing to do with a new strategy, emanating from his status as Commander-in-Chief, to defeat the Taliban but had everything to do with his status as political shyster who was only concerned about his polls.

The increase of troops by 30,000 was strategically meaningless as it had not the aim of defeating the enemy since it merely served Obama’s political rationale of not seeming to be weak on war while at the same time placating the anti-war crowd by announcing the withdrawal of all US forces from Afghanistan. What strategist of any substance would increase his forces in the field of battle only to withdraw them without inflicting upon his enemy a mortal blow? And what kind of leader would place an increased number of his soldiers in danger and continue a war that he thinks is unwinnable when his main purpose was to withdraw them from such war, why would he have increased them in the first place if he was planning to withdraw them if not for his concealed ill-design to dupe the American people, to present himself as both a war president and a peaceful one? In reality of course, Obama is neither of these but a political Shylock who demands his pound of flesh from his troops fighting in Afghanistan in order to play his despicable politics at home so he can placate both those Americans who support the war and those who are against it.

From Alexander, Hannibal, Caesar, Charles Martel, to Napoleon all strategies had a clear and unique goal, to defeat the foe. Only President Obama, who as the most repulsive of political manipulators is wantonly sacrificing the interests of the nation to his own narrow political interests, is disgracefully and timorously traducing this irreversible principle of war and turning himself into a cartoonist mockery as Commander-in-Chief of a great nation.

Afghanistan during Obama’s political campaign was a “war of necessity” that was neglected by President Bush and a war that must be won. But according to Bob Woodward’s new book titled Obama’s Wars, this is no longer so. Obama is quoted as saying, “This needs to be a plan about how we are going to handed it off and get out of Afghanistan.” And the outcome of the policy review and its long deliberations was the offspring of “political considerations,” according to a State Department official. Obama himself reportedly said to Senator Lindsey Graham, “I can’t lose the whole Democratic Party” on the issue of Afghanistan. General Petraeus felt so affronted by White House demands for an exit strategy at all costs that he told his aids, “They are f...king with the wrong guy.” Another senior general said that the announcement of the withdrawal by President Obama, gave “sustenance to the Taliban.” Moreover, the policy review has engendered serious divisions within the Joint Chiefs of Staff, National Security Council, and the Defense Department and between American and Afghan officials. Jim Jones, the National Security adviser, calls the ‘bosom’ advisers of Obama, David Axelrod and Rahm Emanuel variously as the “mafia” the “campaign set” and the “politburo.” And General Petraeus has dubbed Axelrod as the spin artist in residence, and I would add the spin-master who can win elections and lose wars. 

These revelations of Bob Woodward are toxic to Obama’s presidency and threaten to unleash a spate of resignations of top echelons of the Administration. In short, the presidency at this critical moment of national security and war is in a state of disarray. And no matter how he is going to re-arrange the musical chairs of his sinking presidency after losing the better performers, the future ones that will occupy them will be the worst performers that he could get. No one of sterling qualities, of the best and the brightest, will have an inkling to join an intellectually, politically, morally, and strategically bankrupt administration and be branded everlastingly with such an ignominiously failed presidency. Obama by debasing the political currency of a great nation will become the victim of Gresham’s Law. The bad and base currency of circulating officials that will bid for the positions of the Administration will drive the good and golden currency of officials out of circulation for these posts. Hence Obama’s future administration will be filled by political parvenus, professional opportunists, and Cagliostro like political impostors and all ‘playing their tunes’ under the conductors of spin. Such an outcome will seriously undermine America’s prestige and éclat as a superpower. It will momentously endanger the vital interests of the nation and its security by enticing its mortal enemies to attack it, as they see that the rudder of America in the rough seas of the world is in the hands of an incompetent and weak president. The question is whether Americans will allow this to happen and whether they will have the intelligence and courage to use all means to stop it and put an end to Obama’s Directorate of social democracy and to stop at the eleventh hour the euthanasia of the presidency.

I rest on my oars: Your turn now     

Homegrown Terror Copycats Baghdad

By Con George-Kotzabasis

The latest attempts in London, Glasgow, and New York by home grown terrorists to strike innocent civilians and kill them in their hundreds that failed only because of the clumsiness of the terrorists, despite their godly-inspired guidance, are a dress rehearsal of the mise en scene that home-grown terror is staging for the cities of Western civilization. The car bombs of Baghdad that are being such successful deadly instruments in killing hundreds of civilians at a time, are now being imported into the shopping and leisure malls of the West by the western Muslim ensconced terrorists. This will be the greatest danger that city commuters will be facing in the very near future by the suicidal fanatics who while burning alive will still call “Allah, Allah”, during the execution of their murderous deeds.

The use of car bombs is not only effective in inflicting widespread carnage, but is also economically cheaper and most of all harder to detect. And because of the greater difficulties that terrorists are encountering in hijacking aircraft as a result of the greater security in airports, they will opt therefore for the car bombs and bomb belts that are by far more elusive in being identified as such, and hence, “leapfrog” this greater security that has been set up by governments in Western countries.

It’s therefore for the above three reasons, that we will be seeing home grown terror bringing the meme of Baghdad on western streets and spreading death and havoc in the metropolises of  Europe, America, and Australasia. 

           

Mount Globalization or be its Prey

The following paper was written and published on September 2001. It's republished here for the readers of this new blog.

By Con George-Kotzabasis

A tiger is stalking the world the tiger of globalization. Nations and peoples who, gazelle-like, are frightened and take flight before the huge ferocious “life-threatening” leaps and bounds of this tiger, are to be mauled and be eaten, as no swift flight can make them escape from the lightning speed with which globalization pursues its quarry.

For this will be the fate of nations and peoples who chose to be the prey instead of being the “hunter” of globalization. To be the hunter however, does not imply that one has to slay the “beast” of globalization. Instead, it implies that like a consummate broncobuster, one has to mount the tiger and adapt to its fast and sinewy movements while at the same time “taming” it.

This is the only way that countries can save themselves from the threatening onslaught of globalization. More importantly still, to be among its winners. But it’s fundamentally important to be prudent winners, that is, the winner does not take all. No clever country or wise person would desire to be an absolute winner. Only gamblers would crave to be so. But the wins of a casino are ephemeral wins, and soon and inevitably are followed by loses. Hence, if the winners of globalization wish and aspire to keep and to augment their gains, it’s necessary that they look after and take care of the losers of globalization. As the latter can only be politically sustained and continue to succeed and be beneficial to mankind if it’s a “caring globalization”, if its heart is the “make –up” of its robust mien. If not, it will face the freezing winds of a backlash of a ‘winter of discontent’, of all the countries and peoples who are fearful of its storming of the globe. Its losers therefore will be diffident and distrustful of the touted benefits that could accrue to them, and hence reluctant to admit the Lexus into the groves of their olive trees, to paraphrase Thomas Friedman, of the New York Times.

The currently unstoppable revolution in technology, finance, and information, has made all nations vulnerable to the waves of global competition. Only those nations that swim on the crests of these waves will survive and be the winners in this relentless struggle. This implies moreover, that no nation can economically survive in isolation even if it possesses unique and an abundance of natural resources. Nor can it appeal to the bungled remedies of the past, such as the provision of subsidies to defunct industries. Nor can it depend on the invention of new populist nostrums, such as “fair trade” proposed by the dinosaur delegates in a Labor Party Conference in Hobart. On the contrary, only through the process of creative reconstruction in the economic, industrial, commercial, and social structures of a country, is the "waydrome" to success. In this context, to talk about fair trade is to live in dodo fairyland. Indeed, it’s like asking Olympian super athletes, like Cathy Freeman, to be fair to their lesser competitors.


How to Deal with the Challenge of Globalzation

Thomas Friedman in his book, The Lexus and the Olive Tree, argues, that ‘the revolution in technology, finance, and information did three things. It lowered the barriers of entry into almost any business, and it rapidly increased competition and the speed by which a product moves from being an innovation to being a commodity.’ Technology expands production to global dimensions, ‘knitting the world together.’ Finance with the collapse of regulated exchange rates, penetrates all the profitable niches of the world in its avaricious dynamic drive for profit. No raising of granite protective walls or the setting up of any barriers can prevent the ‘ “Electronic Herd’s” ‘ power to move its capital on world markets. Furthermore, information technology ‘brings home to everyone how ahead or behind they are in contrast to other countries.’ This provides a cue and spurs people to invest in countries where lucrative profits can be made by ‘investing through the internet on a global scale.’ Hence, the world is no longer carried on the back of the slow moving Atlas, but on the back of the swift electron-moving Microchip. In such a world all kind of barriers have the strength of a plastic balloon. But even if it were possible to erect impenetrable barriers, the countries that did so would bring upon themselves “the day after”, the consequences of “nuclear” economic and social devastation. That is, the result for these countries would be to throw themselves into the abyss of poverty and squalor, and hence unwittingly deprive their people the opportunity to become wealthier by being on the trajectory of globalization.

It’s by accepting the challenges of globalization with imagination and boldness that countries and their peoples will not only be strengthening their intellectual and moral fiber that will position them on the launching pad of globalization, but will also be transporting them to the land of cornucopia, to material and spiritual abundance. It’s imperative therefore, that political leaders deliberately and consciously decide to prepare their people to enter into this benign circle of feedback. That is, the intellectual and moral strength and knowledge of their people will maximize the benefits accruing from globalization and minimize its disadvantages. And the successes of actively being engaged with the cutting-edge of the globe will in turn further enhance this intellectual and moral vigor and knowledge of their people. In such a brave new world, one has to tell people to ‘remove their belongings’, to use a phrase of Vladimir Nabokov, of moaning. There is no room for resentment and gripe against countries and peoples who succeed. Success itself will be redistributed and will not remain in the same hands. Everyone will have the opportunity, endowed with grit, chutzpah, and entrepreneurial flair, to succeed.

For the first time in human history, globalization has the potential to bring in its wake the “democratization of success”. No scion of elites will be able to capture its benefits and lock them up ever safely and ever after in their vaults. The microchip is sovereign. Hence the corridors of wealth will be accessible to all who have the knowledge and ambition to use it. And if Shakespearian sovereigns could trade their kingdoms for a horse, business scions, like James Packer, will have to trade their wealth and power for a microchip.
Globalization also has the potential to usher in the empowerment of all classes and creeds. Ironically, capitalist globalization might realize Marx’s dream- the fulfillment of the individual who performs his practical affairs during the day, fishes in the evening, and writes and “practices” poetry during the night. And to cap it all, the Communist Manifesto’s slogan, “workers of the world unite”, could be accomplished by globalization. The only difference being that the unity of workers will not arise out of enmity against capitalist entrepreneurs, but out of the benign desire to emulate the achievements of the latter, as every worker with the required training and knowledge will have the ability of doing so.


How to Raise all Boats and Canoes in this inundation of globalization

We need however to be critically aware of the downside of globalization and treat its blemishes effectively. It’s a truism that not all people will benefit from globalization. There will be losers! In all civilizations there have been winners and losers. The human race cannot jump over the shadow of this accursed fact. Either as a result of individual propensities or lack of resilience and ability to adapt to the new, and strenuous circumstances of globalization, many people will fall behind and will be disadvantaged. But because of globalization’s vast production of wealth, it has the capacity to compensate the losers, and indeed, to pull them out of their disadvantaged position. In this task governments will play a decisive role.

First, they will have to deal with the backlash that arises from people who are struck with the dire effects of globalization. While globalization shortens the distances of the world and makes it accessible to many people and improves economically their well-being, at the same time it lengthens the rusty chain of un-economic and defunct industries in many developed and developing countries. Many workers, therefore, who for years worked in these industries, are thrown out of them and find themselves unemployed and unemployable. The direct beneficiaries of globalization therefore, not only have a moral responsibility, but also a vested interest, to take care of the disenfranchised from the advantages of globalization, if the latter are to be prevented from being converted into modern Luddites, and start smashing the machine of globalization, by means of war, terrorism, and computer hacking.

Secondly, to head off and pacify this backlash, governments will have to prise open new thinking horizons, and to transform this resentment into support for globalization. Since inequality among human beings, as well as of other primates, is nature’s regime, governments must contrive clever policies to redress and reverse this order of inequality and bring some sort of balance in this inequity of nature. In the “clever” country, prosperity does not have to be equated with “equality”. People do not have to be equal in certain natural endowments with those who generate wealth and prosperity, to share the fruits of this prosperity. The process of globalization begets such huge wealth that it would not be difficult for governments to impose the burden upon, and indeed persuade, its producers, that it’s to their own interest to share part of this wealth with the disadvantaged of globalization. Especially, when this divestment of wealth will not diminish the capital investment funds of the former, as we will show below.

Thirdly, governments will redistribute this part of wealth by the following international multilateral policy mechanism, by imposing a levy or surtax on the profits of all “globetrotting” corporations, financial institutions, and foreign currency speculators. Once, these funds of the levy are collected by governments, they will be transmitted to an international body set up by these governments. Let us name this body the International Globalization Fund (IGF). The central task of this entity will be (a) to identify those nations and peoples whose livelihood has been affected negatively by globalization, and (b) to subsidize the buying of shares in multinational corporations and world financial institutions, by these nations and peoples. In the case of some people who might not have any financial savings of their own, the IGF will provide them with special securities or bonds, thus enabling them, despite their lack of savings, to be shareholders in this international economy. Moreover, such a policy will not engender any disincentives to private enterprise. As the funds accruing from the levy will not be spend by governments in fuzzy, boondoggle industrial plans or in subsidizing defunct industries, at the expense of the private sector. The build up of a “hydraulic pipe” between the international economy and the disadvantaged of this economy, will allow the funds that are transmitted to the latter in the form of subsidies and securities by the IGF, to be sluiced back through this pipe to the multinational corporations in the form of equity capital. Hence, the investment funds of these entrepreneurial entities will not be diminished.

Thus, the eyes of all, not only of those who gain directly from their engagement with globalization, will be focused on the screens of the computers. Even people who lack knowledge and adeptness to use the modern technology will enter and be denizens of this brave new world of the internet, as equity holders. Sharing the wealth that is spawned by the Midas microchip touch of globalization. The magic flying carpet of globalization will have everyone aboard.

It depends on the creative thinking, imagination and Thatcherite will and determination of governments whether globalization will be politically and economically sustainable. And whether by riding it, the fruits of its wealth will also be distributed to all those nations and peoples whose livelihoods are going to be lost in this process of ‘creative destruction’. Whether the opening of the floodgates of globalization will raise all boats and canoes in this global inundation of its waters.

HIC RHODUS HIC SALTA

The article was written on September 17, 2001, and was first published in the English supplement of Neos Kosmos on the same date