Leadership Failure Perpetuates Stagnation Jomo Kwame Sundaram

What kind of leadership does the world need now? US President Franklin Delano Roosevelt's leadership was undoubtedly extraordinary. His New Deal flew in the face of the contemporary economic orthodoxy, begun even before Keynes' General Theory was published in 1936. Roosevelt's legacy also includes creating the United Nations in 1945, after acknowledging the failure of the League of Nations to prevent the Second World War. He also insisted on ‘inclusive multilateralism' – which Churchill opposed, preferring a bilateral US-UK deal instead – by convening the 1944 United Nations Conference on Monetary and Financial Affairs at Bretton Woods with many developing…

The Global “New Normal” Is Not New – But it is still a real concern C.P. Chandrasekhar and Jayati Ghosh

Many different explanations have been proffered for the “new normal” of “secular stagnation” in the global economy ever since the Great Recession. This is supposed to be exemplified by low growth, verging on stagnation, in the advanced economies, now combined with slower growth in the developing world. Certainly the recovery from the Great Recession of 2008-09 has been anaemic at best, even as it has failed to generate much employment outside of the US (and even there it has created mostly casual, part-time and poor quality jobs). Deflation has persisted in Japan for many years now, and has become evident…

The Global “New Normal” is Not New- But it is still a real concern C.P. Chandrasekhar and Jayati Ghosh

lobal growth rates of the last five years are similar to those in the past, but now they are accompanied by unprecedented monetary expansion that seems to have little impact. Global_New_Normal   (Download the full text in PDF format) ( This article was originally published in the Business Line on June 20, 2016.)

World Recession Set to Worsen Prabhat Patnaik

More than seven years after the world capitalist crisis began, not only is there no sign of any recovery from it, but the prospects appear even bleaker today than ever before. In fact, while the advanced capitalist world continues to remain mired in crisis, it is now spreading across the globe, even to countries like India and China that had appeared initially to have escaped its impact. India’s GDP growth rate is slowing down; what is more, the manufacturing sector continues to witness almost absolute stagnation. The 2.3 percent growth rate in manufacturing in 2014-15, meagre though it was, had…

Trapped in a Recession C.P. Chandrasekhar

When the recently held annual meetings of the IMF and the World Bank ended, the only news to report was that confusion and disagreement afflicts the leaders and institutions charged with jointly managing the international economy. The absence of certainty and agreement was specially visible with respect to one issue: whether governments should revert to using fiscal policy measures and not just monetary policy initiatives to revive a global economy poised to slip into another deep recession. Years of “quantitative easing’ or injection of liquidity into the system through bond purchases by the US Fed, and similar moves elsewhere in…

Austerity Measures Threaten Children and Poor Households : Recent Evidence in Public Expenditures from 128 Developing Countries Isabel Ortiz, Jingqing Chai and Matthew Cummins

In the wake of the food, fuel and financial shocks, a fourth wave of the global economic crisis began in 2010, viz., fiscal austerity. Updating earlier research by UNICEF, this working paper examines the latest IMF government spending projections for 128 developing countries, comparing the three periods of 2005-07 (pre-crisis), 2008-09 (fiscal expansion) and 2010-12 (fiscal contraction). It discusses the possible risks of the adjustment measures for social expenditures and summarises a series of alternative policy options. poor_households (Download the full text in PDF format)

World Economic Situation and Prospects (WESP) 2011 Mid-year Update

According to the mid-year update of the UN’s WESP 2011, the world economy continues to recover from the global economic crisis, but the pace remains uneven across countries. There is an urgent need to find ways to arrive at credible and effective policy coordination among major economies. Watch the press conference at the launch of the WESP mid-year update here. http://www.unmultimedia.org/tv/webcast/2011/05/press-conference-jomo-kwame-sundaram-and-rob-vos-on-the-report-world-economic-situation-and-prospects-2011.html

Prioritizing Expenditures for a Recovery for All Isabel Ortiz, Jingqing Chai, Mathew Cummins, Gabriel Vergara

This UNICEF paper examines government expenditure projections for 126 low and middle income countries and their potential implications for children and poor households during the ongoing fragile economic recovery. While recognizing the importance of macroeconomic stability, the paper questions if the projected fiscal adjustment trajectory in a number of countries is conducive to the objective of protecting vulnerable households and the achievement of development goals such as the MDGs. (Financing options for pro-poor social spending are also explored). unicef (Download the full text in PDF format)

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