Remittances as Saviour C. P. Chandrasekhar and Jayati Ghosh

Once again, the World Bank has released a Brief declaring India to be the largest recipient of remittances from abroad. According to the Bank, remittances to India that totaled $65 billion in 2017, are likely to touch $80 billion this year, way ahead of China, the second largest recipient with $67 billion. The rise is in keeping with longer term trends, despite short periods when it appeared that remittance volumes were on the decline. Official Indian balance of payments data provide information on private transfers (which include (i) remittances for family maintenance, (ii) local withdrawals from Non-Resident Rupee Accounts (NRE…

“Wageless growth” not “Jobless growth” the new conundrum C. P. Chandrasekhar

The so-called ‘synchronised recovery’ that global policy makers periodically refer to, seems to have bypassed much of the world’s working people. According to the just released Global Wage Report 2018/19 of the International Labour Organisation (ILO), the rate of growth of average monthly earnings adjusted for inflation of workers across 136 countries registered in 2017 its lowest growth since crisis year 2008, and was well below figures recorded in the pre-crisis years 2006 and 2007. What is more, if China, where wage growth has been rapid and whose workforce size substantially influences the weighted average global figure, is excluded, the…

The Yellow Vest Movement Prabhat Patnaik

Nothing shows the crisis of neo-liberal capitalism more clearly than the popular uprising in France that is occurring under the banner of the “Yellow Vest” movement. Thousands are congregating in Paris over week-ends to protest against the intolerable burdens being imposed upon them in the name of “austerity” and to demand that resources be raised instead through taxing the rich. This movement had begun initially as a protest against the diesel price-hikes, but has now taken on a more general character and is drawing huge support from the people. There is an effort in liberal circles to portray the movement…

Big Business Capturing UN SDG Agenda? Jomo Kwame Sundaram and Anis Chowdhury

Over the last two decades since the Global Compact, the United Nations has increasingly embraced the corporate sector, most recently to raise finance needed to achieve the Sustainable Development Goals (SDGs), i.e., for Agenda 2030. But growing big business influence has also compromised analyses, recommendations, policies and programme implementation, undermining the SDGs. Changing financing arrangements Inadequate funding of the UN and its mandates by member States has required this search for additional finance, initially with philanthropy and ‘corporate social responsibility' efforts by private business, but increasingly, by viewing profit-seeking investments as somehow contributing to achieve the SDGs. While the global…

The Political Roots of Falling Wage Growth Jayati Ghosh

New findings from the International Labor Organization show that workers across many advanced and emerging economies continued to miss out on the gains from growth in 2017. Rather than trotting out the usual suspects – trade and technology – it is time for policymakers to place the blame where it belongs. For Full article please click here    

The Modi government, the RBI governor and the mess that is the Indian economy Jayati Ghosh

The sheer ineptitude of economic policymaking under prime minister Narendra Modi’s government has been evident from almost the beginning of its tenure. What is also now well-established is the aggressive and rigid approach of the political leadership, which generally pushes its own (often hare-brained) policies regardless of the views of experts and the wider impact on ordinary people, both of whom it tends to treat with disdain. Surely, any of the economic advisors and others in significant positions of economic policymaking would have known all this for some time now. Any self-respecting central bank governor (or indeed anyone described as…

The Emerging International Regime Prabhat Patnaik

Third world economies are now facing a reduced export demand for their goods and services for two distinct reasons. One is the world capitalist crisis which entails a reduced aggregate demand in the world economy and hence reduced aggregate exports for all countries taken together; the other is the protectionism of the U.S., which, by garnering for that country a larger share than it would have otherwise had of this reduced world market, leaves correspondingly less for others. Since the imports of several of these third world countries are more sluggish to change, these countries face an enlarged trade deficit,…

Is shadow banking a serious threat in emerging markets? C. P. Chandrasekhar and Jayati Ghosh

Everyone seems to have woken up to the fact that global debt levels are too high and portent difficulties ahead. As Figure 1 indicates, the levels of credit to GDP, which were so high as to be unsustainable and resulted in the big crisis of 2008, have increased even more since then. There was a phase of deleveraging in the advanced economies until around 2014, and in developing countries and emerging markets until 2011, but since then, credit/debt has been expanding again. So much so that the credit GDP levels in 2017 were 15 per cent higher than in 2008…

Contemporary Capitalism and The World Of Work Prabhat Patnaik

The most significant feature of contemporary capitalism which is of relevance to the world of work is its inability to provide work to a substantial proportion of persons looking for it. This is not just a matter of economic denial, which itself can have important implications for such phenomena as hunger and crime; it also has deep socio-psychological implications of which at least two must be noted. One is the loss of self-esteem among the unemployed which leads inter alia to drug and alcohol abuse and high mortality rates as a consequence. This has been noticed even in an advanced…

Multilateralism Undermined by Globalization’s Discontents Anis Chowdhury and Jomo Kwame Sundaram

On 24 October 1945, the world's most inclusive multilateral institution, the United Nations, was born to "save succeeding generations from the scourge of war, ... reaffirm faith in fundamental human rights, … establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained, and to promote social progress and better standards of life in larger freedom" (UN Charter: Preamble). Thus, one major purpose of the UN is to foster international cooperation to resolve the world's socio-economic problems and to promote human rights and fundamental freedoms (UN Charter: Article 1.3).…