THE UNRAVELING of Tony Blair's government has accelerated since he lost his key adviser Peter in a sleaze scandal late last year. Since the crisis in the Labour Party in Wales and in Scotland, followed by the news that Ken Livingstone will challenge Blairite attempts to exclude him as the candidate for London mayor, have made it the deep dissatisfaction with New Labour is expression within the party itself-And all this comes before the worst of the recession hits the economy and before the government faces industrial struggle. Lindsey German charts the decline in Blair's fortunes and outlines a alternative to New Labour. ECONOMIC TURMOIL is still spreading across the globe more than a year after it first hit South East Asia. In our last issue we examined this crisis in detail. Here The Guardian's economic analysts Dan Atkinson and Larry Elliott use the account of the world economy first developed in their book 7beAge of Insecurity to present a Keynesian perspective on some aspects of the crisis. A new collection of essays by another new Keynesian, 7be Observer editor Will Hutton, is reviewed by Peter Morgan. Rob Hoveman brings this issue's continuing coverage of key debates in economics to a close with his review of a recently published account of the changes in post-war capitalism by Marxist writer Robert Brenner. JOHN MOLYNEUX'S defence of modern art in International Socialism 80 has proved controversial and here we publish a critical response by Chris Nineham. Our book reviews are Paul McGarr's examination of Jim Wolfreys' and Pete Fysh's Tbe Politics of Racism in France and Brian Manning's appreciation of Norah Carlin's new account of the causes of the English Revolution. SCOTIAND'S INDEPENDENCE has always had a fierce left wing champion in Tom Nairn, whose work has done much to shape socialist thinking on the future of the British state. Neil Davidson's detailed examination of Nairn's work, the latest in our 'In perspective' series, carefully exposes the weaknesses in his position and suggests a more theoretically consistent alternative.