Hyderabad|India|April'2009: Under the Distinguished Lecture Series, Prof. David M.Kotz, Massachutes University, USA gave a lecture on ‘The Current Financial and Economic Crisis: A Systemic Crisis of Neoliberal Capitalism’ on 31 March, 2009 at Dr. B.R. Ambedkar Lecture Hall Complex in the University of Hyderabad campus.

Prof. Kotz talked extempore on the Neoliberal Capitalism in the USA and its ill effects on the US Economy. In early 90’s stock market prices did not actually reflect the true economic situation. He predicted that there will be more companies that will shortly come in the red. The bailout package announced by the governments will not completely take care of the current financial crisis. While talking on Real Sector Recession Prof. Kotz said that the housing bubble deflation is the real cause of Recession. He also said that Global spread of Recession will reduce export demand.

Prof. Kotz suggested that possible steps of restructuring the economy will be  1. Corporatist form of capitalism (State regulation of the Financial sector, Capital-Labour relation that keeps wages low and big state spending programme on infrastructure, technology, military & national security); 2. Social democratic form of capitalism (Restrained competition) and 3. Socialism (A socialist alternative to capitalism may receive another look due to the failure of capitalism to meet the needs of the majority).

Prof. JVM Sharma, Professor of Economics department presided over the lecture.

Reachout's News Bureau
 April' 2009