Midwest Book Review wrote “Informed, analytical, and informative, “Capital And The Debt Trap” will prove to be thoughtful, thought-provoking, and usefully instructive, making it especially recommended for professional, governmental, and academic library Economic Studies reference collections and supplemental reading lists.”

Hi, we are delighted to share this new development with you.  The Midwest Book Review provides books reviews, resources and advice for writers and publishers. In its November 2011 number, volume 6, number 11, the Economic Studies Shelf  <http://www.midwestbookreview.com/lbw/nov_11.htm> it has taken up our book to say the following:

“Capital And The Debt Trap
Claudia Sanchez Bajo & Bruno Roelants
Palgrave Macmillan
175 Fifth Avenue, New York, NY 10001
www.palgrave-usa.com
9780230252387, $100.00, www.amazon.com

In every financial crisis there is also financial opportunity. What economists have known from the days of 19th Century ‘Boom & Bust’ cycles, through the 20th Century ‘Great Depression’ driven reforms, down to the economic disasters (both foreign and domestic) of the present day, is that debt can be a useful tool to regulate the economic system, bringing order and stability out of chaos and volatility. That is the central message of “Capital And The Debt Trap: Learning From Cooperatives In The Global Crisis”, a 288-page compendium by the team of Claudia Sanchez Bajo and Bruno Roelants in which the authors draw upon four ‘real world’ case studies of how cooperatives have been able to generate wealth despite significant regional and global financial disruptions. Of special note is the concluding chapter ‘The Global Crisis: Mother of All Warnings”. Informed, analytical, and informative, “Capital And The Debt Trap” will prove to be thoughtful, thought-provoking, and usefully instructive, making it especially recommended for professional, governmental, and academic library Economic Studies reference collections and supplemental reading lists.”

We would just like to add that we are very happy. We also thank the Midwest Book Review for its critique.

The Midwest Book Review is an organization serving community and academic library organizations. It is located in California, Wisconsin and the Upper Midwest and all its reviews are indexed by Gale Research.

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One Response to Midwest Book Review wrote “Informed, analytical, and informative, “Capital And The Debt Trap” will prove to be thoughtful, thought-provoking, and usefully instructive, making it especially recommended for professional, governmental, and academic library Economic Studies reference collections and supplemental reading lists.”

  1. Journal of Global Economy (ISSN 0975-3931),
    Volume 8 No 1, January-March, 2012
    3
    Book Review
    Capital and Debt Trap
    Authors- Claudia Sanchez and Bruno Roelants
    Publisher –Palgrave Macmillan, New York
    J K Sachdeva1
    ‘Creation of real wealth can only be long term, which is what cooperatives do in
    the essence, whereas economic transactions based solely on the remuneration of the
    capital either do not create wealth or directly destroy it’. This requires the
    development of relationships based on trust rather than economic war or the survival
    of fittest; the cooperative rationality is precisely based on the generation of trust
    among economic actors, both the member-stakeholders who own cooperatives and
    among cooperatives themselves. The creation of wealth also requires openness, which
    cooperatives structurally promote where as closedness intrinsically dries up economic
    dynamics and can even lead to recession.
    The eighteenth centuries cooperatives based on these socioeconomic principles
    were under pressure to enlist as companies which were under environmental pressure
    to develop new financial marketing models to create more wealth in the twenty first
    centry. Until 1980s financial shareholders were predominantly concerned with the
    expected financial dividend delivered by the enterprises in which they held shares,
    forgetting their roles as controllers. As a consequence, managers tended to have a de
    facto predominant power over the organization and strategy of economic entities even
    if they did not hold shares.
    One of the main critical limits to the expansion or reproduction of capitalism was
    the risk of too great a level of exploitation of industry by business, namely financial
    concerns. When this happens, too much of the surplus is distributed to activities such
    as takeovers, speculations, advertising, warfare, and so on and not enough going to
    activities that enhance productivity, productive investment, knowledge and skills. The
    development of global supply chains, together with the use of debt mechanism has
    altered the order. Tensions arise between the rationality of financial interests in the
    short term returns and long term development of firms.
    1 Dr J K Sachdeva, Editor in Chief, Journal of Global Economy, Mumbai, India email
    editor@rcssindia.org
    JGE
    Journal of Global Economy (ISSN 0975-3931),
    Volume 8 No 1, January-March, 2012
    4
    Individualistic behaviour , monetary causes , new business models and systematic
    finical reproductive techniques lead to three traps –consumption trap, liquidity trap
    and debt trap.
    Claudia Sanchez Bajo and Bruno Roelants have explored the learning from
    cooperatives in the global crisis. The present crisis is about debt in its underlying
    mechanism and authors feel that without a change in trajectory we are going to have
    more booms and busts through indebtedness.
    The book – Capital and Debt Trap, learning from cooperatives in the Global Crisis
    – has 9 chapters. The crisis and its causes have well been explained in chapter 1 and 2.
    Ownership and rational behaviour pattern have discussed in Chapters 3 and 4. The
    cases –Nativadad Island Divers and Fishermen’s cooperatives, Ceralap Societe
    Novelle, The Desjardins Cooperatives Group, and the Mondragon Cooperative Group
    – have been explored in chapter 5, 6, 7 and 8 to testify the theories and are pillars of
    this project. Chapter 9 warns that it is not the mother of crisis but mother of all
    warnings.
    Through the four cases, this book explores their strategies providing and in-depth
    analysis within a broader debate on wealth generation and a sustainable future. To all
    those interested in political economy, enterprise governess, development studies and
    cooperatives, the Capital and Debt Trap opens up a new way of thinking. The book is
    equally good for social scientists, planners, teachers and students.
    Editor, Journal of Global Economy

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