Brexit and the Economics of Political Change in Developed Countries Jayati Ghosh

The economic forces underlying Brexit, and the election of Donald Trump in the US, are similar, but they are also well advanced in many European countries, where much of the population faces similar material insecurity and stagnation. These frustrations can easily be channelled by right-wing xenophobic forces. To combat this, the EU needs to undo some of its design flaws and particularly its adherence to fiscal austerity rules. Only a more progressive and more flexible union based on solidarity of peoples is likely to survive. Brexit_Economics (Download the full text in PDF format)

Trade Finance: Effects Of The Basel Capital Framework and Other Regulatory Developments Andrew Cornford

The impact of the Basel III capital adequacy framework requires detailed analysis. Have the rules relating to trade finance slowed down world trade? What are the implications for money laundering, and changes in banks' operations in response to global environmental challenges? Trade_Finance (Download the full text in PDF format)

Beyond Fantasies of Industry 4.0, Where Global Capital Has No Answers Erinç Yeldan

Together with the collapse of the Soviet system, China’s and India’s opening up to the global markets have added 1.5 billion new workers to the world’s economically active supply of wage-labor.  This meant almost a doubling of the global labor force and a reduction of the global capital-labor ratio by half.  With intensified pressures of unemployment looming everywhere, wage earners had witnessed a race to the bottom not only of their wage remunerations, but also of their social rights and work conditions. Complemented with the neoliberal policies invoking flexibility and privatization, global wage-labor had suffered serious informalization and vulnerability, consequent…

After Neoliberalism, what Next? Jayati Ghosh

We may be living through one of those moments in history that future historians will look back on as a watershed, a period of flux that marked a transition to quite different economic and social arrangements. Unfortunately, in human history a ‘moment’ can be a very long time, so long that it could be decades before the final shape of the new arrangements are even evident; and in the interim, there could be many ‘dead cat bounces’ of the current system. What is clear is that the established order – broadly defined as neoliberal globalised finance capitalism – is no…

Progressive Mobilization in Europe Jayati Ghosh

Meetings of global leaders – such as recently occurred in the G20 meeting at Hamburg – increasingly have a ring of farce about them. The inability to come to agreement on pretty much anything of significance is leavened only by sideshows and media obsession with which global leader met with whom for how long, who sat in for which President at the “high table”, and similar trivia. Meanwhile, there is abject failure on the part of these leaders to recognize the pressing need for urgent and co-ordinated global action to solve so many current problems, ranging from the terrible state…

Three Deaths Prabhat Patnaik

When one reaches a certain age, one has to steel oneself to the idea of hearing periodically the news of one’s friends passing away. But when the passing of several friends gets concentrated within a very short span of time, when each of them has been a brilliant person whose loss the country, not just one personally, can ill-afford, and when their deaths, by modern-day standards, are pre-mature, then such news become difficult to bear. Three such outstanding individuals passed away in the course of the last six or seven weeks. I received the news of each passing with a…

The Hamburg Fiasco C. P. Chandrasekhar

The summit of the leaders of G20 meetings that met in Hamburg early July was nothing short of a fiasco. Outside the meeting, the massive protest demonstration and the unwarranted aggression of a huge police force made clear that these leaders lacked legitimacy. Inside, all that could be achieved was a “unanimous” communique, in which in language rendered almost meaningless by diplomacy, the contrary opinions of the leaders, especially the differences between the US and the other 19, were spelt out. To the credit of the drafters of the declaration it must be said that they managed one half-truth at…

The Rights of the Child and the G20 Summit Sir Richard Jolly & Gabriele Köhler

Nineteen rich counties and the EU are preparing for the G20 Summit. What brought this group together initially was their GDP size and their concern with the 2007/2008 massive financial crisis. After a brief flirtation with Keynesian ideas about governments’ responsibility in economic crises, they now cohere in their (misguided) belief in neoliberal policy making. As we know, the austerity and deregulation policies adopted by the majority of the G20 governments are extremely harmful. Decent jobs that are paid properly and come with social security guarantees for incidents of illness or accident, and for old age, have been replaced by…

“Fora Temer – Eleições Diretas Já!” Brazil’s Political Rupture and the Left’s Opportunity Alfredo Saad-Filho

The Brazilian Workers’ Party (Partido dos Trabalhadores, PT) won the country’s presidential elections four times in a row; first with Luís Inácio Lula da Silva (2003-06, 2007-10), then with his hand-picked successor, Dilma Rousseff (2011-14, 2015-16). During its 13 years in office, the PT changed Brazil in many ways; four are principally worth mentioning, as they would come to play key roles in the elite conspiracy to impeach Dilma Rousseff and destroy her party. First, the PT democratised the state. It implemented the social and civic rights included in the 1988 ‘Citizen’s Constitution’, and advanced Brazil’s emerging welfare state across…

One Belt, One Road, One Grand Design? Jayati Ghosh

It is a truism of history that rising powers tend to be the ones valorising “free” trade and more open and integrated national economies, just as waning powers tend to turn inwards. So it is no surprise that over the past half year, as the United States elected a President with an avowedly protectionist agenda (even if relatively little has been acted upon so far), China’s President has become the chief advocate of globalisation and more extensive trade and investment links across countries. This drumbeat reached a crescendo in mid-May 2017, at a summit in Beijing to celebrate the official…