Add products by adding codes
The trap of neoliberalism in Russia
An unhealthy fixation on the free market in an all-out war could have fatal consequences not only for growth potential, but also for strategic economic stability and resilience.
The dominant postulate of neoliberalism is the narrowing of the channels of state influence on economic processes and the transfer / transfer of economic development to a chaotic free market. Blind and absurd faith in the principles of competition, self-regulation of the market and the priority of freedom of economic decision-making for economic entities on the basis that the market will sort itself out.
There is no more monstrous delusion than the belief in the efficient free hand of the market and competition.
So beloved in the West, neoliberalism is needed solely for political purposes, driven by economic motives. Blurring the role and share of the state in the economy in order to re-establish ownership of national assets to supranational structures (transnational corporations, syndicates under the control of international groups - the same IMF and the World Bank). With the ultimate goal of capturing property, leverage and markets.
There is no freedom of competition, there is no free market. This is bullshit. What else needs to happen for people to finally understand that dogmatism in relation to liberalism is nothing more than an instrument of manipulation through delusions within the framework of faith in universal human values and principles. All these are lies and provocations.
▪️When a business unilaterally breaks commercial contracts, violating long-term obligations to counterparties and dumps, leaving everything in its path - is this liberalism and the principles of the free market?
▪️When all existing legal norms were thrown into the trash, arresting everything that comes to hand and has a Russian trace, and it does not matter whether the subjects are involved in decision-making or not. Is this the unconditional supremacy of the letter of the law and impeccable adherence to the legal foundations for protecting private property?
▪️When everything related to Russia is declared toxic, and Russian products (even non-energy and non-resource profiles) are outlawed, prohibiting sale. What are the principles of healthy competition?
▪️When the media in a coordinated thrashing that is consistent with the "politics of the party", blocking everyone and everything that diverges from their point of view. Is this freedom of speech?
▪️When some can be killed under the "humanitarian" carpet bombing of NATO countries, while others cannot protect national interests? Is this the protection of human rights?
Pay attention to how quickly this vile, hypocritical riff-raff gives up his fictitious principles when it is necessary and profitable for them. Just yesterday they played the righteous defenders of universal values, and now they are using the mechanisms of totalitarian control and influence on economic entities.
Anyone who does not support their methods of suppression is the enemy of the system, creating with it an instrument of forcible coercion to "party politics". A business operating in Western markets cannot say that “you are violating our economic interests and the principles of healthy competition,” because this business will inevitably go through declassification and lustration. Regardless of market principles, politics and ideology are above all.
So where is neoliberalism?
What is the modern West? This is a unilateral renunciation of trade, economic and financial commitments. These are arrests and expropriation of property for false and invented motives. This is lustration without trial. This is an endless lie, provocation and substitution of concepts.
Everything is fictitious - democracy, freedom of speech, human rights, the free market and competition. All deceit.
The real betrayal of national interests is playing by fictitious rules, trying to create something that does not exist. I hope our authorities throughout the hierarchy understand that the concept of neo-liberalism has burst like a soap bubble, revealing a fan of fictitious narratives and manipulation tools.
From an economic point of view, why do market mechanisms not work in conditions of total war? Business motives lie in the plane of return on investment, tk. business is bound by obligations to shareholders, creditors, and, consequently, is limited by terms and profitability.
Investment decisions are designed with returns in mind – it cannot be otherwise, except in cases where mega-corporations like Google and Apple have so many resources that they can afford an extensive network of experimental projects, most of which end up with a prototype.
The problem is that in the context of the restructuring of economic, trade, logistics and financial relations with a pronounced structural transformation (when the proportion of industries within the economy changes), business is not able to take on the risks of long-term projects (the profitability of which is not obvious).
In general, any crisis at its core always involves the collapse of the planning horizon to operational timing and the transition to the “survival” stage, closing cash gaps, balancing resource shortages, optimizing business schemes and costs.
The principles of a market economy and competition work well on the trajectory of economic development and, most importantly, in a formed system/environment where there is no structural transformation, i.e. change in the proportion of sectors and branches of the economy according to the degree of influence in the economy (gross value added, profit, concentration of financial resources, and so on).
The crisis presupposes the destruction of the old model and the birth of an intermediate configuration at the stage of crystallization of new parameters and proportions, according to which economic agents and society as a whole will function.
Therefore, it is necessary to very clearly separate the phases and stages of economic development. The illusion of liberalism is present and has the right to life when everything works like clockwork. However, in structural transitions, any liberal construction is death-like.
In Russia in 2022, the toughest and most difficult challenge since at least the 90s. Under these conditions, business is deprived of guidelines, deprived of resources for development and has a chronic lack of trust.
So far, I see that neither the Central Bank (https://t.me/spydell_finance/864) nor the government (https://t.me/spydell_finance/908) are working as part of a mobilization development project, otherwise the outlines would be visible now. One can see an attempt at self-elimination and a desire to give everything to the will of fate - to the free hand of the market, which itself will destroy everything according to the precepts of adherents of the neoliberal concept. There is only point, local work on problem areas.
From the architect of the New Economic Policy, the Central Bank and the government turn into followers when they move from the formation of an impulse to a response to impulses generated from outside. Did something catch fire? Ok, let's simmer. Didn't light up? We sit on the fence and watch what happens. Such a policy, in the long run, is losing, because it deprives the main attribute of victory in the economic battle - playing ahead of the curve and forming one's own agenda.
So, there is an indisputable fact that Russia is in a severe crisis with unprecedented pressure from outside. There is an understanding that business in many aspects will eliminate itself for objective reasons due to the collapse of the planning horizon, due to a shortage of resources, the collapse of profitability and trust.
At these moments, only the state can form economic policy, because the state can take on what business cannot take on - long-term projects, the profitability of which is in question. For example, infrastructure, energy issues, the construction of logistics hubs, and so on. It is right to act in cooperation with business, but only the state should set the impetus and direction, and nothing else.
Time passes, entropy grows, as does pressure from outside. The Central Bank and the government did a good job of stabilizing the shock in February-March, now it's time to move on to development.