Crisis, Emergency Measures and the Failure of the ISDS System: The Case of Argentina
This brief gives an account of Argentina’s experience with investor-state dispute settlement in 2001-2014. Between 2002 and 2007, Argentina was the subject of a quarter of all the cases initiated within the framework of the International Centre for Settlement of Investment Disputes (ICSID) Convention. These cases were triggered by changes within the regulatory framework for international investments –particularly in sectors related to the provision of public services– as a result of the implementation of a package of measures aimed at tackling one of the worst economic crises in Argentina’s history. (more…)
South Centre Statements on Sovereign Debt Restructuring Processes
The following are two Statements presented by the South Centre on Options for moving forward and Crisis Resolution & International Debt Workout Mechanisms for a multilateral legal framework for sovereign debt restructuring processes. (more…)
Internationalization of Finance and Changing Vulnerabilities in Emerging and Developing Economies
After a series of crises with severe economic and social consequences in the 1990s and early 2000s, emerging and developing economies (EDEs) have become even more closely integrated into what is widely recognized as an inherently unstable international financial system. Both policies in these countries and a highly accommodating global financial environment have played a role. Not only have their traditional cross-border linkages been deepened and external balance sheets expanded rapidly, but also foreign presence in their domestic credit, bond, equity and property markets has reached unprecedented levels. (more…)
Resolving Debt Crises: How a Debt Resolution Mechanism Would Work
The issue of foreign debt has made a major comeback. This is due to the crisis in Europe, in which many countries had to seek big bailouts to keep them from defaulting on their loan payments.
Before this, debt crises have been associated with African and Latin American countries. In 1997-99, three East Asian countries also joined the indebted countries’ club. (more…)
Below is a report of the presentation of economics professor Dr. Deepak Nayyar at the South Centre Conference in Geneva. He addresses the situation of developing countries in the aftermath of the financial crisis, while focusing on their real economy variables.
Dr. Deepak Nayyar, emeritus professor of economics at Jawaharlal Nehru University and member of the South Centre’s board, addressed the situation of developing countries in the aftermath of the financial crisis, while focusing on their real economy variables. He noted that developing countries on the whole have fared better than industrialized and transition economies in the aftermath of the crisis. Yet, some high-income emerging economies that depend on exports to the United States and the European Union were hard hit, Nayyar noted. In contrast some large developing countries did not fare badly. For example, the growth performance of Sub-Saharan Africa and some least developed countries has been robust. (more…)
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…)
Statement to the Ministerial Meeting of the Group of 24, Washington DC
Weak and uncertain global economic conditions
Before the world economy has been able to fully recover from the crisis that began more than five years ago, there is a widespread fear that we may be poised for yet another crisis, this time in emerging economies. (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…)
Financial crisis deepens: will the lessons be learnt?
By Martin Khor
This time it is Cyprus’ turn to face bitter financial crisis as bank depositors get hit and capital controls are imposed. Will the lessons about these crises ever be learnt?
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.
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.
