The financial crisis as a historic opportunity

“Crises are inherent to the capitalist system. They are at the heart of it”, says Barry Gills, professor of Global Politics at Newcastle University. What we see today, Gills states, is a crisis that is taking place because of global capitalism. The extreme volatility and the extreme risks that were taken, spurred by the much-supported logic of deregulation, have caused this crisis. Of course they saw it coming. But it was forbidden to interfere, the market would regulate itself. Blind market fundamentalism has caused this crisis, and because of its size, this is no longer a crisis in the system, but a crisis of the system itself.
Again, the South is likely to be the biggest victim of it all. If the world economy slows down, that has an impact on the sweatshops, the assembly-firms, and the tax-free export-zones, since our markets are intensely knit together.
But that is not all. When the housing market in the US collapsed, speculators invested their money in the grain market. This gulf of speculation was one of the main factors to make the food prices go through the roof. Several countries in the South had, as agreed in the Washington Consensus, phased out their local food production, because import was cheaper.
The group of people suffering from famine, has increased from an embarrassing 850 million to one billion. Who still believes that the world is serious about the Millennium Goals ? Not only will those goals never be achieved in this economic system. What is worse, is that no-one really seems to loose its sleep over the fact that poverty and famine are increasing. There seems to be a total lack of sense of urgency to change the inhuman poverty in this world . Or a lack of political will? And this amidst of billion dollar loans to rescue banks in trouble.
During a recent meeting of the European Council, the aid for Africa was scheduled. But the meeting didn’t even reach that issue, because the financial crisis attracted all the attention. The problem is not a lack of money. Twelve trillion dollar have been put away safely in tax-havens. Fortis money as well is rumoured to be parked on offshore bank accounts.
It is time to replace this risky capitalist system with a system that prevents crises and is based on solidarity, not on competition. Such a system would remit the debts of the South and would invest in projects that call global warming to a halt. It would invest in green economy, in renewable energy, in decent work, housing, education and health care for everyone. It is predicted that this crisis will go on for five more years. Let us spend this time well to create something different and better. Make change happen ! 
With thanks to the TNI panel with Susan George, Howard Wachtel, Barry Gills and Myriam Vander Sticele.