BEST’s Contracting-Out of Bus Services: A Case Study in Privatisation

— RUPE

[Read complete article (as revised March 6, 2019) in PDF format]

According to the currently dominant ideology, privatisation is identified with greater ‘efficiency’ (the meaning of which term is kept vague). Privatisation may take different forms: the handing over of existing public sector assets to private investors; permitting private investors to enter sectors hitherto reserved for the public sector; opening up the exploration and mining of mineral wealth to private investors; promoting insurance schemes in place of universal provision of basic services; contracting out to private firms jobs hitherto done by the public sector; and so on.

But whatever the form, the dominant ideology claims that privatisation delivers the goods more effectively, and more cheaply. Private firms are said to be driven by the profit motive to lower costs and compete with other firms. Even if the activity to be privatised is a monopoly, it can be awarded to a private firm through competitive bidding, in which the State can specify the fulfilment of various criteria/targets as part of the contract. A firm which does not fulfil its contract can be penalised or replaced with another firm. In this way, we are told, the building of a public sector institution, with an experienced workforce developed over years of stable employment, is no longer necessary. The magic of the ‘market’ will do the job.

Read Full Post »

‘Imperialism in the Twenty-First Century’ – A Review

‘Imperialism in the Twenty-First Century’ – A Review[1]

— Rahul Varman[2]

 We apologise for the long delay in publishing this review. Nevertheless, it remains relevant. — RUPE

 Imperialism in the Twenty-First Century by John Smith, Monthly Review Press, 2016.

Even in the days of Brexit and Donald Trump, the dominant theme of the corporate media remains that the rising tide of ‘globalisation’ will lift all boats. Some go so far as to claim that the UK and the US are not for globalisation because it  favours the developing nations. Others do recognise the division between the exploited multitude and the exploiting elite, but they pose such divisions at a global level, independent of the division between developed and developing nations. Even those who discuss imperialism have focussed on the spheres of finance and/or the realm of extractive industries, and may ignore the sphere of manufacturing.

Smith’s work argues that globalisation is all about imperialism, that is, the systematic exploitation of people and resources of the so-called developing nations of the South[3] by the corporate interests and the states of the North. More importantly, he contends that the shift of global manufacturing to the South is at the heart of the “imperialism of the twenty-first century.” Given the significance of Smith’s work, I have attempted here, not so much a review, but a detailed presentation. The purpose is to persuade a potential reader to go through the original, as well as to aid those who may not be able to access or read the whole book (in part II some of the details and the data are provided; those looking for the basic argument may skip it).

Read Full Post »