Debt Dynamics in China – Serious problems but an imminent crisis is unlikely
Recently, there have been many articles in the international media predicting that China is facing an imminent financial/debt crisis worse than the 2008 US sub-prime crash. However, a closer look at the debt dynamics in China highlights some fundamental differences be-tween the debt situation of the source country of the 2008 global financial crisis and that of China. (more…)
Investment Treaties: Views and Experiences from Developing Countries
About the book: This book discusses the relationship between foreign direct investment, investment agreements and economic development. It examines the experiences of five developing countries reviewing their approach to international investment agreements and seeking alternatives in this area, including South Africa, Indonesia, India, Argentina, and Ecuador. Through reviewing investor-state dispute settlement cases, the book highlights how investment protection rules and the way they have been interpreted by arbitral tribunals have undermined the states’ right to adopt measures to protect public health and challenged the use of policy tools essential for industrialization. The book also discusses options for rethinking investment-related dispute settlement, including the option to reform the arbitration rules that apply to the disputes, and poses the question “What should investment-related dispute settlement look like if we were to start anew?”.
Liberalization, Financial Instability and Economic Development
About the book: Weighing up the costs and benefits of economic interdependence in a finance-driven world, this book argues that globalization, understood and promoted as absolute freedom for all forms of capital, has been oversold to the Global South, and that the South should be as selective about globalization as the North. The book challenges the orthodoxy on the link between financial deepening and economic growth, as well as that between the efficiency of financial markets and the benefits of liberalization. Ultimately, the author urges developing countries to control capital flows and asset bubbles, preventing financial fragility and crises, and recommends regional policy options for managing capital flows and exchange rates.
Financial Crisis and Global Imbalances: A Development Perspective
About the book: This book examines – from a standpoint of promoting stability and growth in developing countries – key policy lessons to be drawn from the devastating global economic crisis of 2008-09. In this collection of papers on the 2008-09 Great Recession and its implications, leading economist Yılmaz Akyüz underlines the need for economic restructuring along the above lines with a view to more effective crisis prevention and intervention. Given their vulnerability to shocks and limited capacity to respond, he says, this reform process is an endeavor in which developing economies have a crucial interest.
The Right to Development, Small Island Developing States and the SAMOA Pathway
In 2015, the United Nations community reached agreements on updating the financing for development mechanisms, Agenda 2030 and an updated climate change regime. The SAMOA pathway is an important resource and an input to these efforts. (more…)
The outcome of the Third International Financing for Development Conference held in Addis Ababa on 13-16 July 2015 exposes the waning state of multilateral development cooperation today. In the outcome, which was nevertheless grandly called the “Addis Ababa Action Agenda” (AAAA), there were no new commitments and no proposed actions that can properly be deemed responsive either to (1) the flimsy state of international financing today or (2) the financing requirements of the UN’s new development agenda based on the 17 sustainable development goals (SDGs). (more…)
This policy brief is based on the working paper “The Decade of Adjustment: A Review of Austerity Trends 2010-2020 in 187 Countries” by Isabel Ortiz, Matthew Cummins, Jeronim Capaldo and Kalaivani Karunanethy, published by (more…)
The Decade of Adjustment: A Review of Austerity Trends 2010-2020 in 187 Countries
By Isabel Ortiz, Matthew Cummins, Jeronim Capaldo, Kalaivani Karunanethy. Geneva: ILO, IPD Columbia University and the South Centre.
This paper: (i) examines the latest IMF government spending projections for 187 countries between 2005 and 2020; (ii) reviews 616 IMF country reports in 183 countries to identify the main adjustment measures considered by governments in both high-income and developing countries; (iii) applies the United Nations Global Policy Model to simulate (more…)
Foreign Direct Investment, Investment Agreements and Economic Development: Myths and Realities
Foreign direct investment (FDI) is one of the most ambiguous and the least understood concepts in international economics. Common debate on FDI is confounded by several myths regarding its nature and impact on capital accumulation, technological progress, industrialization and growth. It is often portrayed as a long term, stable, cross-border flow of capital that adds to productive capacity, helps meet balance-of-payments shortfalls, transfers technology and management skills, and links domestic firms with wider global markets. However, none of these are intrinsic qualities of FDI. (more…)
Internationalization of Finance and Changing Vulnerabilities in Emerging and Developing Economies: The Case of Malaysia
Developing countries have become more closely integrated to the unstable international financial system in recent years. The traditional cross-border financial and trade linkages been deepened; but also the foreign presence in their domestic credit, bond, equity and property markets has reached unprecedented levels. New channels have thus emerged for the transmission of financial shocks from global boom-bust cycles. Almost all emerging and developing economies are now vulnerable to instability and shocks originating from the global financial system. (more…)
Financing for Development Conference 2015: A View from the South
On 19 July 2014 the Open Working Group on Sustainable Development Goals (SDGs) of the United Nations agreed on a draft of a set of 17 Sustainable Development Goals, taking the first steps toward a renewed development agenda for after 2015. The effort to agree on the SDGs was the follow up to the Millennium Development Goals (MDGs), whose end-date is 2015. Aside from the 17 specific goals, the draft SDGs included 169 associated targets. (more…)