The Age of Austerity: A Review of Public Expenditures and Adjustment Measures in 181 Countries.
This paper: (i) examines the latest IMF government spending projections for 181 countries by comparing the four distinct periods of 2005-07 (pre-crisis), 2008-09 (crisis phase I: fiscal expansion), 2010-12 (crisis phase II: onset of fiscal contraction) and 2013-15 (crisis phase III: intensification of fiscal contraction); (ii) reviews 314 IMF country reports in 174 countries to identify the main adjustment measures considered in high-income and developing countries; (iv) discusses the threats of austerity to development goals and social progress; and (v) calls for urgent action by governments to adopt alternative and equitable policies for socio-economic recovery. (more…)
The death of Hugo Chavez last week sparked an outpouring of grief in Venezuela and South America, but his legacy will live on in his policies and South-South initiatives.
The government spending cuts in the United States as the President and Congress fails to reach a deal will also affect poor developing countries as the aid budget especially for food and medicines is reduced.
Growth in the South: Resilience, Decoupling, Recoupling
By Yilmaz Akyuz
Rapid acceleration of growth in developing countries (DCs) and the widening of their growth gap with advanced economies (AEs) before the outbreak of the global financial crisis were widely interpreted as decoupling of the South from the North. In the early days of the crisis, there were also widespread expectations that growth in the South would be little affected by the difficulties facing AEs. In fact, DCs slowed considerably in 2009 as a result of contraction of exports to AEs and financial contagion. However, they recovered rapidly, with growth rates in 2010-11 matching or exceeding the levels seen before the crisis, while recovery in the US has remained weak and erratic, and Europe has gone into a second dip. This has again revived the decoupling thesis, notwithstanding the sharp slowdown in many major DCs over the course of the current year.
Resolving Debt Crises: How a Debt Resolution Mechanism Would Work
By Martin Khor
More countries are facing a debt crisis, and the world urgently needs an international system of debt arbitration and restructuring. This article describes the elements needed in such a system.
Capital Account Regulations and Investor Protections in Asia.
Since at least the early 1990s, countries that sought to regulate the capital account risked self-inflicted stigma in the international investment arena, even in the face of uncontroverted analytical reasons for their appropriateness.Subsequent events, including the Asian financial crisis in 1997, have not eliminated the stigma risk from capital account controls but the analytical discussion has shifted to when, not if, such controls are warranted. (more…)
In recent years financial policies in both industrial and developing countries have put increased emphasis on the market mechanism. Liberalization was partly a response to developments in the financial markets themselves: as these markets innovated to get round the restrictions placed on them, governments chose to throw in the towel. More important, however, governments embraced liberalization as a doctrine. (more…)
The Least Developed Countries (LDCs) have submitted a “duly motivated” request to the WTO TRIPS Council for an extension of the transition period for them to comply with the TRIPS Agreement “for as long as the WTO Member remains a least developed country”.
A proposed draft decision annexed to their request states that: “Least developed country Members shall not be required to apply the provisions of the Agreement, other than Articles 3, 4 and 5, until they cease to be a least developed country Member.”
Bilateral investment treaties pose many challenges to developing countries, and initiatives are underway to move towards a new framework. This message is contained in a closing speech by Mariama Williams on behalf of the South Centre at the 6th Annual Investment Forum for Developing Country Negotiators, Port of Spain, Trinidad and Tobago, 29-31 October 2012, which was co- organised by the South Centre.
Hazards in Bilateral Investment Treaties (BITs): Investors’ rights v. public health
By Carlos Correa
An arbitral tribunal is expected to issue soon a decision on jurisdictional matters in a case brought by Philip Morris against the government of Uruguay. The claim, based on a bilateral investment treaty (BIT) between that country and Switzerland, challenges packaging and labeling requirements for cigarettes adopted by Uruguay to reduce tobacco’s consumption. (more…)
National Financial Policy in Developing Countries.
A fundamental question raised by recurrent financial crises in mature and emerging economies is how to ensure that the financial markets and institutions serve growth and development rather than being a constant source of instability and disruption in pursuit of self-interest. (more…)
Climate Change UNFCCC Talks: The Interests of Developing Countries at COP18
This article is adapted from a presentation made by Vicente Paolo Yu III, Programme Coordinator, South Centre, to the first Ministerial Conference on Climate Change of the African, Caribbean, and Pacific Group of States (ACP) at the ACP House in Brussels on 7 November 2012.
