Africa Taken for ‘Neo-Colonial’ Ride Anis Chowdhury and Jomo Kwame Sundaram
Like so many others, Africans have long been misled. Alleged progress under imperialism has long been used to legitimize exploitation. Meanwhile, Western colonial powers have been replaced by neo-colonial governments and international institutions serving their interests. ‘Shithole’ pots of gold US President Donald Trump’s “shitholes”, mainly in Africa, were and often still are ‘pots of gold’ for Western interests. From 1445 to 1870, Africa was the major source of slave labour, especially for Europe’s ‘New World’ in the Americas. Walter Rodney’s How Europe Underdeveloped Africa noted “colonised Africans, like pre-colonial African chattel slaves, were pushed around into positions which suited European interests…
Aid for Power in New Cold War Anis Chowdhury and Jomo Kwame Sundaram
Long a means for powerful nations to influence developing countries, development finance has gained renewed significance in the new Cold War. Unlike during the US-Soviet Cold War, the rivalry now is between mixed market capitalist systems. Development aid rivalry After reneging repeatedly on development aid and climate finance promises, the G7 big rich nations dutifully lined up behind US President Biden’s Partnership for Global Infrastructure and Investment (PGII) at their 2022 Summit in Schloss Elmau, Germany. With a $200bn US commitment, the G7 promised to mobilize $600bn in public and private funds for infrastructure investments in developing countries to compete with China’s multitrillion…
Climate Hypocrisy Ensures Global Warming Anis Chowdhury and Jomo Kwame Sundaram
Rich country governments claim the high moral ground on climate action. But many deny their far greater responsibility for both historic and contemporary greenhouse gas (GHG) emissions, once acknowledged by the Kyoto Protocol. Climate injustice Worse, responsibility has not been matched by commensurate efforts, especially by the largest rich economies in the G7, which dominates the G20. Its continued control of international economic resources and policy making blocks progress on climate justice. “That is the greatest injustice of climate change: that those who bear the least responsibility for climate change are the ones who will suffer the most”, says Mary Robinson,…
SWIFT Dollar Decline Anis Chowdhury and Jomo Kwame Sundaram
US-led sanctions are inadvertently undermining the dollar’s post-Second World War dominance. The growing number of countries threatened by US and allied actions is forcing victims and potential targets to respond pro-actively. SWIFT strengthened dollar The instant messaging system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) informs users, both payers and payees, of payments made. Thus, it enables the smooth and rapid transfer of funds across borders. Created in 1973, and launched in 1977, SWIFT is headquartered in Belgium. It links 11,000 banks and financial institutions (BFIs) in more than 200 countries. The system sends over 40 million messages daily,…
US Leads Sanctions Killing Millions to No End Anis Chowdhury and Jomo Kwame Sundaram
Food crises, economic stagnation and price increases are worsening unevenly, almost everywhere, following the Ukraine war. Sanctions against Russia have especially hurt those relying on wheat and fertilizer imports. Unilateral sanctions illegal Unilateral sanctions – not approved by the UN Security Council – are illegal under international law. Besides contravening the UN Charter, unilateral sanctions inflict much human loss. Countless civilians – many far from target countries – are at risk, depriving them of much, even life itself. Sanctions, embargos and blockades – ‘sold’ as non-violent alternatives to waging war by military means – economically isolate and punish targeted countries,…
Sanctions Now Weapons of Mass Starvation Anis Chowdhury and Jomo Kwame Sundaram
US and allied economic sanctions against Russia for its illegal invasion of Ukraine have not achieved their declared objectives. Instead, they are worsening economic stagnation and inflation worldwide. Worse, they are exacerbating hunger, especially in Africa. Sanctions cut both ways Unless approved by the UN Security Council (UNSC), sanctions are not authorized by international law. With Russia’s veto in the UNSC, unilateral sanctions by the US and its allies have surged following the Ukraine invasion. During 1950-2016, ‘comprehensive’ trade sanctions have cut bilateral trade between sanctioning countries and their victims by 77% on average. The US has imposed more sanctions regimes, and…
When Saviours Are the Problem Anis Chowdhury and Jomo Kwame Sundaram
Central bank policies have often worsened economic crises instead of resolving them. By raising interest rates in response to inflation, they often exacerbate, rather than mitigate business cycles and inflation. Neither gods nor maestros US Federal Reserve Bank chair Jerome Powell has admitted: “Whether we can execute a soft landing or not, it may actually depend on factors that we don’t control.” He conceded, “What we can control is demand, we can’t really affect supply with our policies. And supply is a big part of the story here”. Hence, decisionmakers must consider more appropriate policy tools. Rejecting ‘one size fits…
Out of Africa: Rich Continent, Poor People Jomo Kwame Sundaram
Capital flight from the global South is immense, with widespread adverse effects. A new book proposes measures to curb, even reverse capital flight from Africa. It also offers pragmatic lessons for many developing countries. Out of Africa On the trail of capital flight from Africa extends pioneering work begun much earlier. The editors – Leonce Ndikumana and James Boyce – estimate Sub-Saharan Africa (SSA) has lost more than US$2 trillion to capital flight in the last half century! SSA currently loses US$65 billion annually – more than yearly official development assistance (ODA) inflows. The book’s studies carefully investigate natural resource exploitation – of South African…
Russian Aggression in Ukraine, Western Sanctions & Crisis for Developing Countries Jomo Kwame Sundaram
Western sanctions on Russia, a major global exporter of grain (esp. wheat), energy and fertilizers will have negative implications on developing and poor countries on their debt, food security and nutrition. These price rises from supply-side disruptions cannot be solved by raising interest rates at the national level, as many countries are attempting today. Full video available at: https://www.youtube.com/watch?v=rI9Wt0WWP94
Modern Monetary Theory & Central Bank Financing for Development Financing in SE Asia Jomo Kwame Sundaram
Modern Monetary Theory (MMT) gains traction and calls for increased central bank financing to solve the lack of fiscal space, especially in SE Asia, Indonesia & Philippines. The existing international and national monetary order constrains development due to inflation targeting for example. Full video available at: https://www.youtube.com/watch?v=rI9Wt0WWP94