Twenty Years after The Asian Financial Crisis Prabhat Patnaik

Exactly twenty years ago, a major financial crisis had hit the countries of East and South East Asia in July 1997. This crisis was a watershed in the history of third world development, in the sense that these “tiger economies” which had seen extraordinarily high growth rates until that time, remained permanently crippled thereafter. Just around the time that they were shaking off the effects of the 1997 crisis on their respective economies, the collapse of the “housing bubble” in the United States plunged the entire world capitalist system into a crisis which also affected them, so that they could…

Most Financial Inflows Not Developmental Jomo Kwame Sundaram and Anis Chowdhury

Recent disturbing trends in international finance have particularly problematic implications, especially for developing countries. The recently released United Nations report, World Economic Situation and Prospects 2017 (WESP 2017) is the only recent report of a multilateral inter-governmental organization to recognize these problems, especially as they are relevant to the financing requirements for achieving the Sustainable Development Goals (SDGs). Resource outflows rising Developing countries have long experienced net resource transfers abroad. Capital has flowed from developing to developed countries for many years, peaking at US$800 billion in 2008 when the financial crisis erupted. Net transfers from developing countries in 2016 came…

India and the World Economy C.P. Chandrasekhar

Boosted by media reports and assessments by public and private financial institutions of India’s high growth potential, capital inflows have seen a major surge in India resulting for one in huge foreign exchange reserves. But expectations that India is out to share in the spoils of global dominance may be misplaced since these fail to take account of the kind of liabilities that India is accumulating in order to finance its still incipient global expansion. Also, the more the investor and lender confidence results in capital flows in excess of India’s current account financing needs, the greater is the possibility…