Playing with Financial Fire: A South Perspective on the International Financial System
Playing with Fire (PWF) is a continuation of the analysis of the integration of Emerging and Developing Economies (EDEs) into the international financial system which Yılmaz Akyüz has carried out in his roles as senior economist for many years responsible for UNCTAD’s Trade and Development Report and Chief Economist at the South Centre. The treatment covers cross-border financial flows, increased commercial presence of foreign financial institutions in EDEs and their increased participation in their local financial markets as well as policy and regulatory issues. PWF deploys data on major cross-border financial flows on a gross as well as a net basis. This innovative approach facilitates identification of financial stability issues posed by the increased participation of EDEs in international financial markets.
South Centre Statement to the Ministerial Meeting of the Group of 24
Below is the statement by the South Centre’s Executive Director Mr. Martin Khor which was distributed during the Ministerial Meeting of the Group of Twenty-four held in Washington DC on 12 October 2017.
The Financial Crisis and the Global South: Impact and Prospects
The world economy has not still recovered from the effects of the financial crisis that began almost a decade ago first in the US and then in Europe. Policy response to the crisis, the combination of fiscal restraint and ultra-easy monetary policy, has not only failed to bring about a robust recovery but has also aggravated systemic problems in the global economy, notably inequality and chronic demand gap, on the one hand, and financial fragility, on the other. It has generated strong destabilizing spillovers to the Global South. (more…)
The Financial Crisis and the Global South: Impact and Prospects
The world economy has not still recovered from the effects of the financial crisis that began almost a decade ago first in the US and then in Europe. Policy response to the crisis, the combination of fiscal restraint and ultra-easy monetary policy, has not only failed to bring about a robust recovery but has also aggravated systemic problems in the global economy, notably inequality and chronic demand gap, on the one hand, and financial fragility, on the other. (more…)
On the Existence of Systemic Issues and their Policy Implications
Systemic issues are issues that arise from the built-in features of the global system and the impact of the interaction of its parts; as implied in the chapter title in the Monterrey Consensus, it pertains to the coherence and consistency of the monetary, finance and trade systems. Systemic issues point at the weak points in the whole global financial “architecture,” the international structures and mechanisms that are beyond the control of individual countries. Systemic issues are a particular concern to developing countries, which have experienced their greatest development reversals during international payments crises. (more…)
South Centre Presentation to the Special Event of the Second Committee of the UN General Assembly
UNCTAD organized a special event of the Second Committee of the United Nations General Assembly on 26 October 2016 in New York on “SOVEREIGN DEBT RESTRUCTURINGS: Lessons learned from legislative steps taken by certain countries and other appropriate action to reduce the vulnerability of sovereigns to holdout creditors”. Ms. Yuefen Li, Special Advisor on Economics and Development Finance of the South Centre, spoke as a panelist and alerted the UN Member States of the current legislative challenges facing the sovereigns when it comes to the need for sovereign debt restructuring including the impact of the plurilateral and bilateral trade and investment agreements.
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.
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…)
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…)
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