EURODAD Conference 2017: Development Finance Landscape: Why Alternatives are needed

Second Plenary Session of Eurodad Conference 2017 Speakers: Professor Jayati Ghosh (Jawaharlal Nehru University) Kavaljit Singh (Madhyam) and Mikaela Gavas (Overseas Development Institute) Moderator: Penny Davies (Diakonia) Jayati Ghosh, Kavaljit Singh and Mikaela Gavas discuss the current capitalist stagnation after the global crisis, in which finance has re-emerged as a dominant player and global concentration is adding to inequality. Instead of prioritising the uses of scanty international aid, what is required is political leadership that ends fiscal austerity and ensures more democratic control over finance, as well as trade policies that enable industrialisation and structural transformation. Click here for more…

Fiscal austerity has been blocking economic recovery Jomo Kwame Sundaram

Instead of concerted and sustained efforts for a strong, sustained economic recovery to overcome protracted stagnation, the near policy consensus on fiscal austerity in the G7 and the G20 OECD countries, except for the US and Japan, has dragged down economic recovery in developing countries. After seven years of lackluster economic performance and rising tensions over the Eurozone straightjacket on fiscal stimuli, there are signs of a growing willingness to reconsider earlier policies. While it is not yet clear whether this will lead to significant enough policy changes, this may well led to the long awaited turning point the world…

Expansionary fiscal consolidation myth Jomo Kwame Sundaram, Anis Chowdhury

KUALA LUMPUR, Malaysia, Aug 11  - The debt crisis in Europe continues to drag on. Drastic measures to cut government debts and deficits, including by replacing democratically elected governments with ‘technocrats', have only made things worse. The more recent drastic expenditure cuts in Europe to quickly reduce public finance deficits have not only adversely impacted the lives of millions as unemployment soared. The actions also seem to have killed the goose that lay the golden egg of economic growth, resulting in a ‘low growth' debt trap. Government debt in the Euro zone reached nearly 92 per cent of GDP at…

Is Sustainable Development Hindering Economic Recovery? Jomo Kwame Sundaram

The global economic and employment situation is alarmingly protracted, with recovery not expected any time soon. In October 2012, then IMF chief economist Olivier Blanchard indicated he did not see a global economic recovery before 2016. Now, in mid-2016, it is clear that the global crisis has dragged on for several reasons; many governments, especially in advanced economies, still prioritize fiscal austerity and tough labour market reforms, even though such measures undermine livelihoods, incomes, the social fabric and economic recovery prospects. Meanwhile, despite ‘quantitative easing', investments remain depressed, blocking employment creation. Easy credit before the crisis led to over-investment in…

The Dangers of Fiscal Austerity Jayati Ghosh

It may be true that there is nothing new under the sun: it certainly feels like it when it comes to economic policy debates. The debate on the need for fiscal austerity in India is now particularly tiresome because it has been going on for the better part of three decades, spurred by governments who have declared their intention to balance budgets even when their actions have hardly suggested such an inclination. But it moves from being simply tiresome to actually dangerous when it determines policies that will actually encourage economic contraction rather than recovery while simultaneously reducing the kinds…

Prospects for the World Economy in 2012 C. P. Chandrasekhar and Jayati Ghosh

2011 revealed that the much vaunted economic recovery after the Great Recession was not inherently sustainable, as the recent problems of global capitalism, including those associated with excessive debt build-up, were reflected in new areas and caused economic slowdown across the world. Against the backdrop of economic trends in 2011, this article assesses the prospects for the world economy in 2012. World_Economy (Download the full text in PDF format) (This article was originally published in the Business Line on December 26, 2011)

What World Leaders Need to Do Urgently (but are not) Jayati Ghosh

During the height of the Global Financial Crisis in 2008, President Nicolas Sarkozy of France was seen carrying around a copy of ''Capital'' by Karl Marx. Maybe he should now pick up a copy of another book (''Anti-Duhring'') by Marx's collaborator Friedrich Engels. In this book Engels made a persuasive argument about the anarchic nature of capitalism. ''Anarchy reigns in socialised production. But the production of commodities, like every other form of production, has its peculiar, inherent laws inseparable from it; and these laws work, despite anarchy, in and through anarchy. They reveal themselves in the only persistent form of…

Employment shifts after the Global Crisis C.P. Chandrasekhar and Jayati Ghosh

For more than a year now, it has been evident that the ''recovery'' from the Great Recession, which has been visible if sputtering in terms of output growth in the core capitalist countries, has not delivered anything like the increases in employment that were expected. A recent report of the ILO (''Short-term employment and labour market outlook and key challenges in G20 countries'', ILO and OECD September 2011, page 1) points out: ''With economic activity slowing in several major economies and regions, earlier improvements in the labour market are now fading, hiring intentions are softening and there are greater risks…

The Scariest Thing about the World Economy Jayati Ghosh

We are definitely in uncharted territory now. The global economy is looking more fragile and vulnerable than it has at any time since the collapse of Lehmann Brothers nearly three years ago. In fact, the concerns about its future trajectory should be even greater than they were at that time if the underlying and persistent problems are taken account of. Two big issues have dominated headlines in the past week: sovereign debt problems in the two biggest economic groupings, the United States and the European Union. To a dispassionate observer, it can be a source of wonder that what began…

Tottering on the Brink Jayati Ghosh

What is it with women and high heeled shoes? Such shoes are known to be uncomfortable, unhealthy and even dangerous for those wearing them. Not only do they force the wearer's feet and body into unnatural positions, they are hard to stand or walk around in for any extended time, and prolonged use can lead to damage of internal reproductive organs. Despite what appear to be these rather obvious drawbacks, they still dominate in high-fashion female footwear – to the point where the higher the heels, the more expensive and fashionable the shoes are likely to be. They remain popular…

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