Agricultural Trade Liberalization Undermined Food Security Jomo Kwame Sundaram and Anis Chowdhury

Agriculture is critical for achieving the Sustainable Development Goals (SDGs). As the Food and Agriculture Organization (FAO) notes, ‘From ending poverty and hunger to responding to climate change and sustaining our natural resources, food and agriculture lies at the heart of the 2030 Agenda.' For many, the answer to poverty and hunger is to accelerate economic growth, presuming that a rising tide will lift all boats, no matter how fragile or leaky. Most believe that market liberalization, property rights, and perhaps some minimal government infrastructure provision is all that is needed. The government's role should be restricted to strengthening the…

Once again, the Oil Price Scare C.P. Chandrasekhar and Jayati Ghosh

The news last week that prices of Brent Crude oil (which is used as a global benchmark) had crossed $80 a barrel in some markets must have created shock waves in policy circles of many countries, especially India. Many oil-importing countries had grown comfortable with – and even complacent about – the relatively low oil prices that persisted after their precipitous drop in the middle of 2014. As Chart 1 shows, average oil prices feel very sharply after June 2014, falling by 56 per cent just in the months until January 2015, and by more than 70 per cent from…

The So-called “Consumers’ Interest” Prabhat Patnaik

In the wake of the take-over of Flipkart by Walmart, one is once again hearing an argument which one has often come across before, namely that having a large multinational in this sphere, which can do global sourcing for its products, will make goods cheaper for buyers and therefore be in the “consumers’ interests”. This argument is so old that it even goes back to the colonial times, when it was argued by many that imports from Britain, which had caused domestic deindustrialization by outcompeting the local craftsmen, had cheapened goods for the consumers and were therefore in the “consumers’…

The Banking Conundrum: Non-performing assets and neo-liberal reform C.P. Chandrasekhar and Jayati Ghosh

As fiscal year 2017–18 drew to a close, the Government of India decided to bite the bullet and implement a proposal to “resolve” what was being presented as one of the leading challenges then facing the Indian economy: large non-performing assets (NPAs) on the books of the banks, especially the public sector banks (PSBs).The Recapitalisation plan, first announced in October 2017, involved infusing ‘2.11 lakh crore of new equity into the PSBs, of which ‘1,35,000 crore would be new money from the government, financed with recapitalisation bonds. Another ‘18,139 crore was the balance due under the ‘70,000 crore Indradhanush plan…

Lucrative Defaults by Hungry Corporates C.P. Chandrasekhar

The deadline for the completion of the resolution process under the Insolvency and Bankruptcy Code (IBC), 2016 for the first set of cases taken up has neared or even passed. The IBC provides for a time limit of 180 days (extendable by 90 days) once a case of default is brought to the National Company Law Tribunal (NCLT), following a joint decision of creditors accounting for a dominant share of claims on a company. If no resolution plan drawn up under the supervision of a resolution professional can be agreed upon, liquidation must follow to recover whatever sums are possible.…

The return of the Oil Threat C. P. Chandrasekhar

On the morning of April 24, the price of Brent crude, the global benchmark for oil prices, rose above $75 a barrel, touching its highest level since 2014 and signalling the return of an era of high oil prices. That is a $30 per barrel or 66 per cent rise from the previous low of around 10 months ago. As expected, this has made oil importers nervous. But, despite the benefits it would bring US shale producers, even President Donald Trump is rattled. In one more of his infamous early morning tweets he declared: “Looks like OPEC is at it…

Agricultural Tenancy in Contemporary India Vaishali Bansal, Yoshifumi Usami and Vikas Rawal

The problem of tenancy -- informal, insecure, exploitative, and often unfree and interlocked contracts for leasing land that have been both growth-retarding and unjust -- has been central to the agrarian question in India. Along with an uneven and distorted penetration of capitalist relations in the Indian countryside, there have been significant changes in the extent of use of tenancy, in the class configuration of tenants and lessors, and in the form of tenancy contracts over the last few decades. With the state unwilling to effectively implement land reforms in most parts of India, tenancy relations have continued to be…

G7 Policies and their implications for Global Stability and Growth Andrew Cornford

Comments prepared for the debate sponsored by the South Centre on Revolution Required The Ticking Time Bombs of the G7 Model, book authored by Hervé Hannoun and Peter Dittus,    Palais des Nations, United Nations, Geneva, 13 April 2018 For reasons explained at length by the authors the principal focus of Revolution Required (RR) is the monetary policy in the Advanced Economies (AE), which has been the main response to the Global Financial Crisis (GFC). This response the authors view as leading to an unsustainable increase in debt levels in the medium term and to investment which may not be viable…

The return of a Housing Bubble C. P. Chandrasekhar and Jayati Ghosh

Even while optimistic assessments of growth trends in the global economy proliferate, concerns that the unwinding of inflated asset price markets could abort the recovery are being expressed. Interestingly, there appears to be a substantial degree of agreement on the cause for such uncertainty, which is an excessive dependence on monetary measures in the form of quantitative easing and the associated extremely low interest rate environment to address the post-crisis recession. That lever was not the most effective from the point of view of lifting growth. While the early resort to fiscal stimuli delivered a sharp recovery, the retreat from…

May Day 2018: A Rising Tide of Worker Militancy and Creative Uses of Marx C. J. Polychroniou (A Truthout Interview with Prof. Jayati Ghosh)

International Workers' Day grew out of 19th century working-class struggles in the United States for better working conditions and the establishment of an eight-hour workday. May 1 was chosen by the international labor movement as the day to commemorate the Haymarket massacre in May 1886. Ever since, May 1 has been a day of working-class marches and demonstrations throughout the world, although state apparatuses in the United States do their best to erase the day from public awareness. In the interview below, one of the world's leading radical economists, Jawaharlal Nehru University Professor Jayati Ghosh, who is also an activist…