economic crisis

Such options range from Grexit to his preferred alternative of breaking the eurozone into several subgroups, each with its own currency.

Varoufakis and Galbraith would likely sympathize with his proposal and clearly regret that Greece lacked the political courage to forsake the system earlier, when it could have done so more easily. Yet even the radical step of breaking up the eurozone, Stiglitz makes clear, would probably help deficit countries only if Germany agreed to increase domestic spending, rein in speculation, and reduce deficits

As Varoufakis writes, “All talk of gradual moves toward political union and toward ‘more Europe’ are not first steps toward a European democratic federation but, rather, and ominously, a leap into an iron cage that prolongs the crisis and wrecks any prospect of a genuine federal European democracy.” Thus, one is forced to conclude that short of a catastrophic economic crisis, Europe can do little more than continue to muddle through in a self-induced state of austerity, thereby undermining its future prospects and global standing.

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,

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.