ILO Leadership Election Must not be Another Charade Jayati Ghosh

Later this month, the governing body of the International Labour Organisation is due to elect a new director-general. This election has not received as much attention as the recent appointments of other institutions like the IMF and the World Bank. Even so, it could have important consequences for the world and most of its population. The candidacy of Jomo Kwame Sundaram represents an important chance for the ILO to move to centre stage in developing strategies to counter the global turbulence and move towards more stable, equitable and democratic paths. The past two decades have not been particularly kind to…

Is More Mobility Good? Firm Mobility and the Low Wage – Low productivity trap Stephanie Seguino

This paper explores the possibility that unregulated FDI flows are causally implicated in the decline in labor productivity growth in semi-industrialized economies. These effects are hypothesized to operate through the negative impact of firm mobility on worker bargaining power and thus affecting wages. Downward pressure on wages can reduce the pressure on firms to raise productivity in defense of profits, contributing to a low wage-low productivity trap. The paper presents empirical evidence based on panel data fixed effects and GMM estimation for 37 semi-industrialized economies, which supports the causal link between increased firm mobility and lower wages, as well as…

Can the US continue to rule the World Economy? Jayati Ghosh

Historically, international capitalism has tended to thrive more when one clear power has established its hegemony over the world economy. There have been at least two major phases when this was indisputably true: the period of the Gold Standard in the late 19th and early 20th centuries, when Britain was the economic superpower; and the two decades after the Second World War in the mid-20th century of the Bretton Woods-dollar standard, when the United States ruled the roost. In both of these periods, the ability of the major power to control the broad pattern of international trade and capital flows…

Argentina Since Default: The IMF and the depression Alan B. Cibils, Mark Weisbrot and Debayani Kar

More than eight months since the economic crisis has passed and Argentina's economy continues to decline, with the recession now having lasted more than four years. This paper looks at Argentina's crisis since the default in an attempt to find a way out of the Depression. argentina_default (Download the full text in PDF format)