World Bank Dispossessing Rural Poor Jomo Kwame Sundaram and Anis Chowdhury

The World Bank's Enabling the Business of Agriculture (EBA) project, launched in 2013, has sought agricultural reforms favouring the corporate sector. EBA was initially established to support the New Alliance for Food Security and Nutrition, initiated by the G8 to promote private agricultural development in Africa. The New Alliance has been touted as "a new model of partnership" for agricultural transformation in Africa. The Bank has used the EBA to address the land issue in developing countries, particularly in Africa. The effort is strongly supported by the US and UK governments as well as the Gates Foundation, all strong proponents…

Ignorance – Inspired Brexit Imperial Nostalgia Jomo Kwame Sundaram and Anis Chowdhury

As the possible implications of Britain's self-imposed ‘no-deal' exit from the European Union loom larger, a new round of imperial nostalgia has come alive. After turning its back on the Commonwealth since the Thatcherite 1980s, some British Conservative Party leaders are seeking to revive colonial connections in increasingly desperate efforts to avoid self-inflicted marginalization following divorce from its European Union neighbours across the Channel. Imperial nostalgia Part of the new Brexit induced neo-imperial mythology is that its colonies did not provide any significant economic benefit to Britain itself. Instead, it is suggested that colonial administrations were run at great cost…

Taking Away the Ladder Jomo Kwame Sundaram and Anis Chowdhury

The notion of the BRICS (Brazil, Russia, India, China, and later, South Africa) was concocted by Goldman Sachs' Jim O'Neill. His 2001 acronym was initially seen as a timely, if not belated acknowledgement of the rise of the South. But if one takes China out of the BRICS, one is left with little more than RIBS. While the RIBS have undoubtedly grown in recent decades, their expansion has been quite uneven and much more modest than China's, while the post-Soviet Russian economy contracted by half during Boris Yeltsin's first three years of ‘shock therapy' during 1992-1994. Unsurprisingly, Goldman Sachs quietly…

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…

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).…

Inequality undermines democracy Jomo Kwame Sundaram and Anis Chowdhury

Economic inequality – involving both income and wealth concentration – has risen in nearly all world regions since the 1980s. Gross economic inequalities moderated for much of the 20th century, especially after World War Two until the 1970s, but has now reached levels never before seen in human history. No more inclusive prosperity The World Inequality Report 2018 found that the richest 1% of humanity captured 27% of world income between 1980 and 2016. By contrast, the bottom half got only 12%. In Europe, the top one percent got 18%, while the bottom half got 14%. OXFAM's Reward Work, Not…

Improving Infrastructure Planning In Developing Countries Jomo Kwame Sundaram and Anis Chowdhury

Infrastructure investment is necessary, but hardly sufficient to enable developing countries to transform their economies to achieve sustainable prosperity, according to this year's UNCTAD Trade and Development Report: Power, Platforms and the Free Trade Delusion (TDR 2018), released in late September. For various reasons, infrastructure projects in developing countries are receiving broad endorsement. Multilateral financial institutions – such as the Asia Infrastructure Investment Bank – are scaling up investment, and several international initiatives – such as the Belt and Road Initiative of China – prioritize infrastructure. Yet, such efforts may still not accelerate industrialization. Nevertheless, most recent discussions still tend…

Trade War Due To Deeper Malaise Anis Chowdhury and Jomo Kwame Sundaram

The world economy remains tepid and unstable a decade after the 2008 financial crisis, while growing trade conflicts are symptoms of deeper economic malaise, according to a new United Nations publication. While the global economy has picked up since early 2017, growth remains hesitant, with many countries operating below potential. The year ahead is unlikely to see much improvement as the world economy is under stress again, with rising tariffs and volatile financial flows. Underlying such threats to global economic stability is the failure to address fundamental weaknesses in global economic governance which have been fostering global economic inequities and…

Another Global Financial Crisis for Developing Countries? Anis Chowdhury and Jomo Kwame Sundaram

George Soros, Bill Gates and other pundits have been predicting another financial crisis. In their recent book, Revolution Required: The Ticking Bombs of the G7 Model, Peter Dittus and Herve Hamoun, former senior officials of the Bank of International Settlements, warned of ‘ticking time bombs' in the global financial system waiting to explode, mainly due to the policies of major developed countries. Recent events vindicate such fears. Many emerging market currencies have come under considerable pressure, with the Indonesian rupiah, Indian rupee and South African rand all struggling since early this year. Brazil's real fell sharply in June, and Argentina…

Great Recession, Greater Illusions Anis Chowdhury and Jomo Kwame Sundaram

In 2009, the world economy contracted by -2.2%. Growth in all developing countries declined from around 8% in 2007 to 2.6% in 2009 as the developed world contracted by -3.8% in 2009. The collapse of the Lehmann Brothers investment bank in September 2008 symbolized the US financial crisis that triggered the Great Recession of 2008-2009. Demise of Keynesian consensus In its immediate aftermath, a new consensus reversed the neoliberal Washington Consensus of the last two decades of the 20th century. Proclaimed by the G20's London Summit of 2 April 2009, it envisaged return to Keynesian macroeconomic policies, including large-scale fiscal…