Obstacles to Development in the Global Economic System
I. Obstacles to Development Arising from the International System
As the international community wades into the political discussions regarding the alternatives to the Millennium Development Goals (MDGs) after 2015 and the design of the Sustainable Development Goals (SDGs) as mandated by the Rio+20 conference, it is timely to consider the question of whether development is a matter mostly of individual effort on the part of nation-states or whether there are elements in the international economic system that could serve as significant obstacles to national development efforts. (more…)
Crisis Mismanagement in the United States and Europe: Impact on Developing Countries and Longer-Term Consequences
There are two major failings in policy interventions in the crisis in the US and Europe: the reluctance to remove the debt overhang through timely, orderly and comprehensive restructuring and the shift to fiscal austerity after an initial reflation. These have resulted in excessive reliance on monetary means with central banks entering uncharted policy waters, including zero-bound interest rates and the acquisition of long-term public and private bonds. (more…)
Waving Or Drowning: Developing Countries After The Financial Crisis
Not only has the “Great Recession” led to a “Great Slowdown” in developing countries, but also their longer-term growth prospects are clouded by global structural imbalances and fragilities that culminated in the current crisis. (more…)
Statement to the UN High Level Thematic Debate on the State Of the World Economy, New York
1. Global economic conditions continue to have a strong bearing on production, trade and investment in developing economies (DEs). In this respect the current landscape is not very encouraging. After three years of recovery the world economy still remains highly fragile. (more…)
This paper argues that the unprecedented acceleration of growth in the developing world in the new millennium in comparison with advanced economies is due not so much to improvements in underlying fundamentals as to exceptionally favourable global economic conditions, shaped mainly by unsustainable policies in advanced economies. The only developing economy which has had a major impact on global conditions, notably on commodity prices, is China. (more…)
Statement at the high-level panel on Trade, at the LDC-IV conference, Istanbul
Trade has been at the centre of discussion of LDCs improving their economy and social conditions. It was said that LDCs are not integrated into the world economy; that is why they are marginalized. This is not true. Many LDCs have higher exports to GNP ratio than some developed countries. (more…)
Summary overview of the recent development of the agenda of financial reform.
A cursory read of the FSB’s report on progress in the implementation of G20’s reform agenda indicates how vast the agenda has become. Agreement on the international agenda is being accompanied by measures implementing this agreement at national level and at the level of the EU. (more…)
Capital Flows to Developing Countries in a Historical Perspective: Will the Current Boom End With a Bust?.
The paper argues that the policy of quantitative easing and close-to-zero interest rates in advanced economies, notably the US, are generating a surge in speculative capital flows to developing countries in search for yield and creating bubbles in foreign exchange, asset, credit and commodity markets. (more…)
The Impact of the Global Economic Crisis on Industrial Development of Least Developed Countries.
The South Centre has released a Research Paper which examines the impact of the external shocks from the global economic crisis on industrial development of Least Developed Countries (LDCs). These countries are heavily exposed to external shocks because of their extensive trade with the rest of the world. Yet, they are marginalized in terms of their share in international trade and output. (more…)
Statement at the UN General Assembly Extraordinary Thematic Dialogue on The World Financial And Economic Crisis And Its Impact On Development, New York
1. The extraordinarily serious global economic crisis has its origins in the developed countries. Developing countries are not responsible, but they are severely affected, and in ways that are worse than the developed countries, as they also lack the means to counter the effects. (more…)
From Declarations to Actions on Commodities: Marking the Turning Point at UNCTAD XII.
With the multilateral trade negotiations at an impasse, with the rising concern on climate change and energy insecurity, rising international food prices which disproportionately affect the poor, the time is ripe for all concerned on development to start taking concrete actions to address the plight of the commodity crisis. (more…)
Market Power, Price Formation and Primary Commodities.
There has been widespread concern for many years over the very abstract nature of orthodox economic theory, especially that of the neo-classical school which has dominated the profession since the late 19th century. Such disquiet is frequently felt among non-economists, but a great many dissident economists have also expressed their disquiet over the years. (more…)