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Arabica Robusta

Over Intransigence of Rich Countries, Developing Countries Win Mandate on Trade for Dev... - 0 views

  • While the International Monetary Fund (IMF), the World Bank, the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and others adhere to a rigid “neoliberal” ideology that favors deregulation, privatization, and the interests of the global North and the private sector over the poor, UNCTAD has a rich history of favoring people-centered development, promoting interests of the global South, and being a voice of the poor majority in international forums.
  • It is despicable that in a conference focused on trade and development, rich countries successfully prevented UNCTAD from calling for changes to the WTO, to allow more flexibility for development in poor countries. They even successfully blocked a call for a resolution to trade-distorting subsidies in agriculture that damage developing countries every day.
  • The EU and US even opposed inclusion of “Special and Differential Treatment” — the simple historical recognition of the fact that rich and poor countries have different economic capacities and need different rules to promote prosperity — although this was finally included.
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  • There are increasing efforts with global value chains, and a stronger mandate to work on their governance, so as to address unfair distribution of gains across the chain and the resulting detrimental impacts on employment conditions and inclusive growth .
  • Shockingly, developed countries even opposed inclusion of the issue of policy space. What is policy space? By this we mean that developing countries must be free from imposed international strictures and rules that go against their development needs.
  • After this conference, no country from the EU, nor the US or other developed countries, can claim to be in favor of developing countries’ escaping the debt treadmill.
  • Unfortunately, the rich countries’ club of the OECD has thus far dominated international discussions on taxation, which leave out developing countries and their development concerns. On taxation, UNCTAD 14 sadly became yet another example of how determined rich countries are to ensure the exclusion of developing countries, not just from decision making on tax matters, but also from the possibility of getting independent advice on how to stop the enormous losses of money they suffer from illicit financial flows,
Arabica Robusta

Major Summit Could Put World's Poorest Inhabitants on Corporate Chopping Block | Alternet - 0 views

  • Developing countries are also fighting to be permitted by WTO rules to invest in their own agricultural production and strengthen domestic food security programs that are currently permitted for rich but not developing countries, not even for Least Developed Countries (LDCs).
  • it seems that developed countries never intended to deliver on those development and agricultural reform promises, and have spent the last 14 years of the Doha Round sidelining development issues and instead working to expand the WTO’s neoliberal dictates on services, goods, agriculture and other issues. At the same time, they have taken their corporate wish lists to other forums, concluding the TPP and negotiating the TTIP, TiSA, ITA and EGA mentioned above.
  • This effort, which is the main fight in Nairobi, is even more pernicious because their goal is two-fold: abandon the development mandate, and then open up space to introduce all the new corporate issues they have been negotiating in the TPP, TTIP and other deals into the WTO, including investment, government procurement, disciplining state owned enterprises, and others. Many of these issues are not permitted to be on the agenda in the WTO while Doha is still being negotiated.
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  • In their letter, civil society highlighted that success in Nairobi must mean “[f]ulfilling the development mandate by strengthening SDT for all developing countries, removing WTO obstacles to food security, and operationalizing benefits for the [LDCs].”
  • The corporate and rich country government agenda of permanently abandoning the development mandate must be forestalled, along with the imposition of a set of already-rejected or ill-defined non-trade ‘new issues’.”
  • Experts have detailed how governments won’t be able to implement many aspects of the deal, however, if agreements like the TPP, TTIP [PDF] or TiSA come into force. Much the same could be said about the WTO. Developing country unity and North-South peoples’ solidarity will be essential to a positive outcome at the WTO. Let’s make sure that the United States, the EU, Japan, Australia and others realize that the imperative of development and public interests must come before corporate profit. A good deal should be struck in Nairobi. But if not, then no deal is better than a bad deal.
Arabica Robusta

US wants S&D on its export credits, NO to SSM and food security - 0 views

  • The HKMD reads: "We agree to ensure the parallel elimination of all forms of export subsidies and disciplines on all export measures with equivalent effect to be completed by the end of 2013. This will be achieved in a progressive and parallel manner, to be specified in the modalities, so that a substantial part is realized by the end of the first half of the implementation period. We note emerging convergence on some elements of disciplines with respect to export credits, export credit guarantees or insurance programmes with repayment periods of 180 days and below. We agree that such programmes should be self-financing, reflecting market consistency, and that the period should be of a sufficiently short duration so as not to effectively circumvent real commercially- oriented discipline."
  • In sharp contrast to the joint proposal, the US maintained that the deadline for phasing out export subsidies must remain the same for both industrialized and developing countries. Under Article 9.4 of the Agreement on Agriculture, the developing countries are provided a longer duration as part of special and differential treatment flexibility. But the US wants to deny that flexibility and by suggesting the same time period for everyone, the US is disregarding the existing WTO provisions and the ministerial mandates, developing country agriculture negotiators maintained.
  • In a nutshell, the developed countries have resorted to an unprecedented form of cherry-picking to suit their interests by altering the existing ministerial decisions and mandates underpinning the four elements in the export competition pillar. But the same developed countries along with some developing country allies have launched a war-like effort to deny minimal credible developmental outcomes such as the permanent solution for public stockholding programs for food security and the special safeguard mechanism for developing countries, trade envoys argued.
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  • At the chair's meeting on Wednesday, the US said it cannot accept even the diluted provisions for export credits in the joint proposal, according to agriculture negotiators present at the meeting. The US demands, said an agriculture negotiator, is "tantamount to special and differential treatment only for itself and a broad exemption from multilateral disciplines."
Arabica Robusta

The BRICS bank | openDemocracy - 0 views

  • This event raises several political questions for progressives: what type of ‘bank’ do the BRICS leaders propose; why is it needed; are these the appropriate leaders to organise and control the new institution; and is it something progressives should view favourably?
  • An international ‘development’ bank is a non-profit, cross-country, public sector institution that makes loans to governments for long-term projects, either directly productive ones (e.g., a hydro-electric dam) or supportive of productive activities (e.g., roads and highways).  A development bank's sine qua non lies in offering loans at more favourable terms than private banks.
  • For example, in place of a requirement that US$ 200 million to Zambia be used to build a hydro-electric damn, conditions would require the government to privatize public enterprises, savagely cut government employment, and drastically slash public spending.
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  • it is a bit geographically challenging to describe it as the development bank of the ‘South,’ given that Russia is one of the founding members; the largest founding member is entirely north of the Tropic of Cancer except for a tiny sliver (China); and a third was entirely north of the Equator the last time I checked a world map (India).
  • Many predict or at least hope that the new lending institution will improve the access of middle and low-income countries to financing for infrastructure.
  •  If the BRICS bank can operate less bureaucratically than the World Bank, that would be a substantial gain in itself.
  • why is it necessary for countries to borrow to build, for example a new airport? The problem is never ‘money.’  Any government of a country that has its own currency can borrow from the central bank (this would not apply to the 14 members of the West and Central African currency zones). Only one reason comes to mind about borrowing from abroad: that the project may require substantial imports of materials. Thus, the purpose of the borrowing is to obtain US dollars, yen, renminbi, etc.  
  • is this Gang of Five likely to shift international lending in a more humane and flexible direction as Oxfam hopes?  We should note that the voting proposal for the BRICS bank follows the IMF/World Bank model – money votes with shares, reflecting each government's financial contribution. The largest voting share goes to China, whose record on investments in Africa is nothing short of appalling (see my discussion of Chinese capital in Zambia).
  • Much better than a project bank for the ‘South’ would be an institution providing long-term loans in foreign currencies. This would have several major advantages over the BRICS bank as envisaged. First, the loans could be made on the basis of a judgment about the ability of the government to repay, not a narrow assessment of a specific project. This rather difficult judgment is the de facto basis of all loan repayment – can the country's export sectors generate the foreign exchange to service the debt? Second, the borrowing country's external debt would increase by the foreign currency component of the project; the rest would be financed domestically. This arrangement would be in line with the famous advice of John Maynard Keynes in 1933, ‘let goods be homespun whenever it is reasonably and conveniently possible, and, above all, let finance be primarily national’ (emphasis added). 
  • The suspicion uppermost in my mind is that the purpose of the BRICS bank, as a project funding bank, is to link the finance offered, to the construction firms and materials suppliers located in the BRICS themselves. Certainly, the Chinese Government is notorious for doing this (see 'China insists on "tied aid" in Africa').
Arabica Robusta

Brexit: A Nail in the Coffin of Neo-colonialism in Africa | Black Agenda Report - 0 views

  • For some, Brexit has called into question the purpose of the EU and for some white liberals it has sparked concern over the possibility that it marks the end of internationalism.
  • The 1993 formalizing of the EU was for Africa no different than the 1884 Berlin Conference where Europe united to regulate and cooperate in its Scramble for Africa during heightened colonial activity by European powers. This predecessor union of Europe eliminated or overrode most existing forms of African autonomy and self-governance. Today in Africa the EU plays the role of enforcing neo-colonialism through its Africa Working Party (COAFR) and so-called Africa-EU Strategic Partnership that ensure neo-liberal economic policies dominate Africa. We can be sure that when the partnership claims to cooperate on issues like governance and human rights it is not talking about how European countries are governed or human rights abuses in those countries. It is based on the paternalistic premise that Africa is inherently savage and contemporarily corrupt and naturally prone to abusing human rights.
  • elieving Brexit could represent the beginning of the end for international cooperation, as some have put it, is to believe that the world does or should revolve around Europe. The late Pan-Africanist Kwame Ture (aka Stokely Carmichael) pointed out that those whose thinking is dominated by Euro-centrism and white supremacy often mistakenly “make the particular history of Europe the general history of the world.”
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  • The epic tug-of-war between the internationalism of communist versus capitalist was not the only type of internationalism to emerge from the 20th century. A non-Western Euro-centric reflection recognizes the history of the movement for Pan-Africanism in the struggle for a united African continent under a socialist government. The original Organization of African Unity (OAU) – now the African Union (AU) – was a direct attempt toward that.
Arabica Robusta

BRICS' new financial institutions could undermine US-EU global dominance | Al Jazeera A... - 0 views

  • During the 1997–98 Asian financial crisis, when middle-income countries were hard hit by big capital outflows, there was an effort by China, Japan, Taiwan and other countries to put together an Asian Monetary Fund to offer balance of payments support. Washington vetoed the idea, insisting that all assistance had to go through the International Monetary Fund. The result was a mess, including an unnecessarily deep regional recession, as the IMF failed to act as a lender of last resort and then attached all kinds of harmful and unnecessary conditions to its lending.
  • Western media coverage of these developments has been mostly dismissive, but that primarily reflects the concerns of Washington and its allies. They have had unchallenged sway over the decision-making institutions of global financial governance for 70 years, and the last thing they want to see is competition. But competition is exactly what the world needs here.
  • Just look at Ukraine, where the economy is shrinking by 5 percent this year and the IMF is imposing austerity that will prolong and possibly deepen the recession.
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  • Although most economists and most of the major media have ignored it, the IMF’s loss of influence over economic policy in most middle-income countries is one of the most important developments in the international financial system in the past half-century.
Arabica Robusta

Victory at UNCTAD XIII - 0 views

  • In fact, in a private meeting between U.S. civil society and Robert Gerber, the Deputy Head of the U.S. delegation, he told us that he thought that analyzing “the global economic crisis” itself was outside of UNCTAD’s mandate, which was to focus on trade and development. I’m not sure how to make an argument that these things are not related, but I guess when you’re the United States at the United Nations, you don’t have to have a logical argument.
  • He also said the language in the text that was most important to the United States was on UNCTAD’s efficiency, effectiveness, transparency and accountability; we’re looking forward to seeing the U.S. push hard for similar issues regarding the International Monetary Fund (IMF) and U.S. aid in Haiti, among other places.
  • the non-EU bloc of developed countries) was asked directly at one point during the negotiations why he did not want this language included, the representative responded gruffly, “we don’t want any competition in intellectual thinking!”
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  • The former staff of UNCTAD were so concerned about the earlier drafts that they alerted the public through a letter, pointing out the spuriousness of the OECD countries’ objections, and highlighting the importance of UNCTAD’s role: This is neither a cost-saving measure nor an attempt to “eliminate duplication” as some would claim. ... [W]e all fervently believe in the value of maintaining an independent research capability that serves to focus inter-governmental debates on how the workings of the global economy affect developing countries.
  • Lobbying was also a key strategy. Jubilee USA and other allies successfully lobbied the U.S. to improve language on debt sustainability, and several European groups were able to mitigate the EU’s position through appealing to the Norwegian and Finnish governments.
  • On the third day of negotiations “upstairs” where the tough issues were being handled, Ambassador Wasescha made a surprising announcement. He said the JUSCANZ and the EU were prepared to accept the main controversial Paragraphs 16 and 17, if the G77 would give up the paragraphs supporting Cuba and Palestine. Delegates were outraged. It is common knowledge that countries utilize leverage in negotiations, and horse-trading is the norm. But rarely in diplomatic group negotiations is such tit-for-tat so explicitly expressed.
  • Next, the Palestinian negotiator took the floor. “I would like to inform you that a few minutes ago, the Israeli representative and I came to agreement on the text on Palestine. After futile meetings with the Europeans and the JUSCANZ in Geneva for months, we have come to agreement on language in fifteen minutes. So you cannot use this issue to obtain something else you want,” he said. Shortly after, the Cuban negotiator made a similar announcement that an agreement had been reached between his delegation and the United States.
Arabica Robusta

A painful lesson from Brexit: Why DiEM25 needs a simpler message | openDemocracy - 0 views

  • Since the mid-1970s, once the first post-war capitalist phase ended (with the collapse of the New Deal-inspired Bretton Woods system), those relying on wage income to live have fallen off the escalator. Most of the gains from technology, productivity, globalisation, have gone to the top 1% and none to the bottom 80%. People can put up with poverty, but not with humiliation – not with having their noses rubbed in their poverty by people in yachts, golf clubs and Mercedes Benzes, telling them that their poverty is self-inflicted.
Arabica Robusta

Africa Working Party (COAFR) - Consilium - 0 views

Arabica Robusta

http://eeas.europa.eu/cfsp/sanctions/docs/measures_en.pdf - 0 views

Arabica Robusta

Brexit Is Bad News for Africa. Period. | Foreign Policy - 0 views

Arabica Robusta

What is the partnership? | The Africa-EU Partnership - 0 views

Arabica Robusta

http://abahlali.org/files/3295358-walter-rodney.pdf - 0 views

Arabica Robusta

Does the Brexit Vote Mark the End of Internationalism? - FPIF - 0 views

Arabica Robusta

European Union - EEAS (European External Action Service) | Sanctions policy - 0 views

Arabica Robusta

Piketty and the Crisis of Neoclassical Economics | John Bellamy Foster | Monthly Review - 0 views

  • But Piketty advances such an argument without breaking completely with the architecture of neoclassical economics. His theory thus suffers from the same kind of internal incoherence and incompleteness as that of Keynes, whose break with neoclassical economics was also partial. Deeply concerned with issues of inequality, just as Keynes was with unemployment, Piketty demonstrates the empirical inapplicability over the course of capitalist development of the main conclusions of neoclassical marginal productivity theory. His work has thus served to highlight the near-complete unraveling of orthodox economics—even while staying analytically within the fold.28
  • This overall incoherence, as we shall see, ultimately overwhelms Piketty’s argument. He is unable to explain why capitalist economies tend to grow so slowly as to generate such a divergence between wealth and income (and between capital and labor). Hence, while his analysis sees slow growth or relative stagnation as endemic to this system, he neither explains this nor is concerned directly with it. Significantly, he replaces more traditional notions of capital as a social and physical phenomenon with one that equates it with all wealth.29
  • Nor does he address the relations of power—principally class power—that lie behind the inequality that he delineates. His analysis is confined largely to distribution rather than production. He neither follows nor (by his own admission) understands Marx, though at times clearly draws inspiration from him.31
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  • But even with these and other deficiencies, Piketty, nevertheless, brings a certain degree of reality—even a sense of “class warfare” (if only implicitly)—back to bourgeois economics. The result is to heighten the crisis of neoclassical theory. Moreover, he argues—even though he dismisses the idea as “utopian”—for the imposition of a tax on wealth.33 Piketty thus represents a partial revolt within the inner chambers of the economics establishment.
  • Edward Wolff has pioneered the study of wealth data in the United States. In his most recent paper, he finds that the average (mean) net worth of the wealthiest 1 percent in 2010 was $16.4 million. By contrast the average for the least wealthy 40 percent was $–10,600 (that is, it was negative!).39
  • Piketty has no notion of capital as an exploitative social relationship.
  • However, beginning in the mid–1970s, capital made a remarkable comeback, and the ratio began to climb, and is now approaching the level that existed at the start of the First World War. Public capital has been privatized and political regimes throughout the world have been very well disposed toward the interests of wealth-holders.43
  • He shows that throughout the eighteenth and nineteenth centuries, and right up until the First World War, wealth in most rich nations equaled six to seven years of national income.
  • If the rate of return on capital r is greater than the growth rate of the economy g, then capital’s share of income will rise. Piketty shows that over very long periods of time, r has in fact been greater than g; in fact, this is the normal state of affairs in capitalist economies.
  • He finds that there is a direct and significant correlation between the size of the endowment and the rate of return on it. Between 1980 and 2010, institutions with endowments of less than $100 million received a return of 6.2 percent, while those with riches of $1 billion and over got 8.8 percent. At the top of the heap were Harvard, Princeton, and Yale, which “earned” an average return of 10.2 percent.49 Needless to say, when those already extraordinarily rich can obtain a higher return on their money than everyone else, their separation from the rest becomes that much greater.
  • Reality could not be more different than what neoclassical theory leads one to expect. In the United States, real weekly earnings for all workers have actually declined since the 1970s and are now more than 10 percent below their level of four decades ago. This reflects both the stagnation of wages and the growth of part-time employment.50 Even when considering real median family income that includes many two-earner households there has been a decrease of around 9 percent from 1999 to 2012.51
  • But how does this relate to issues of class struggle and class power? What are the consequences of these realities in terms of control of corporations, the economy, the state, the culture, and the media? Piketty, though making a few tantalizing allusions, tells us next to nothing about this.
  • “The neglect of power in mainstream economics,” as the heterodox Austrian economist Kurt Rothschild wrote in 2002, “has its main roots…in deliberate strategies to remove power questions to a subordinate position for inner-theoretic reasons,” such as the search for mathematical models with a high degree of mathematical certainty.
  • It goes without saying that Piketty’s acceptability to neoclassical economics is dependent on his avoidance of the question of inequality and power.
  • Just as class power tends to concentrate, so does the power of the increasingly giant, oligopolistic firms which, in economic parlance, reap monopoly power, associated with barriers to entry into their industries and their ability to impose a greater price markup on prime production costs (primarily labor costs).
  • Writing for the Wall Street Journal, Peter Thiel, co-founder of PayPal, declared that “Capitalism is premised on the accumulation of capital, but under perfect competition, all profits get competed away…. Only one thing can allow a business to transcend the daily brute struggle for survival: monopoly profits…. Monopoly is the condition for every successful business.” Indeed, this might even stand as the credo of today’s generalized monopoly capital.64
  • For Piketty himself there is no organic relation between the two main tendencies that he draws in Capital in the Twenty-First Century—the tendency for the rate of return on wealth to exceed the growth of income and the tendency toward slow growth. Nor is his analysis historical in a meaningful sense, which requires scrutiny of the changing nature of social-class relations. Increasing income and wealth inequality are not developments that he relates to mature capitalism and monopoly capital, but are simply treated as endemic to the system during most of its history.
  • Here it is useful to recall that for Keynes the danger was not only one of secular stagnation but also the domination of the rentier. He thus called for the “euthanasia of the rentier, and consequently the euthanasia of the cumulative oppressive power of the capitalist to exploit the [artificial] scarcity-value of capital.”69 In today’s financialized capitalism, we face, as Piketty recognizes, what Keynes most feared: the triumph of the rentier.70 The “euthanasia of the cumulative oppressive power of the capitalist” is needed now more than ever. This cannot be accomplished by minor reforms, however—hence Piketty’s advocacy of what he calls a “useful utopia,” a massive tax on wealth.71
  • It is significant that imperialism plays no role in Piketty’s analysis, neither in explaining the growth of wealth and wealth inequalities, nor even in the analysis of past growth, or prognostication of future growth. On the contrary the book is informed by a perception according to which capitalist growth in one region…is never at the expense of the people of another region, and tends to spread from one region to another, bringing about a general improvement in the human condition.
  • Significant in this respect is that he chose as the epigraph of his book a line from the Declaration of the Rights of Man and Citizen from the French Revolution: “Social Distinctions can be based only on common utility.”75
  • One could hardly pick a statement more opposed to the system in which we live, which seeks not the common but the individual utility.
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