Stories written by Jomo Kwame Sundaram
Jomo Kwame Sundaram is United Nations Assistant-Secretary-General for Economic Development.

International Finance Governance Undemocratic

Why is it so difficult to achieve meaningful coordination when everybody agrees that it is desirable, if not necessary? President Richard Nixon’s withdrawal of the US from and hence termination of the Bretton Woods system in 1971 confirmed the end of the post-war Golden Age. This led to slower growth, greater volatility, more instability, and reduced progress in raising economic welfare, among other consequences.

Genetically Engineered Disappointments

Advocates of genetically engineered (GE) crops have long claimed that genetic engineering is necessary to raise crop yields and reduce human exposure to agrochemicals. Genetic engineering promised two major improvements: improving yields affordably to feed the world, and making crops resistant to pests to reduce the use of commercial chemical herbicides and insecticides.

World Bank fudges on inequality

The 17 Sustainable Development Goals (SDGs) – collectively drafted and then officially agreed to, at the highest level, by all Member States of the United Nations in September 2015 – involves specific targets to be achieved mainly by 2030. The Agenda seeks to “leave no-one behind” and claims roots in universal human rights. Thus, addressing inequalities and discrimination is central to the SDGs. Poverty and Shared Prosperity 2016: Taking on Inequality is the World Bank’s first annual report tracking progress towards the two key SDGs on poverty and inequality.

Growing Inequality under Global Capitalism

Income and wealth inequality has increased in recent decades, but recognition of the role of economic liberalization and globalization in exacerbating inequality has never been so widespread. The guardians of global capitalism are nervous, yet little has been done to check, let alone reverse the underlying forces.

World Bank Must Stop Encouraging Harmful Tax Competition

One of the 11 areas that the World Bank’s Doing Business (DB) report includes in ranking a country’s business environment is paying taxes. The background study for DB 2017, Paying Taxes 2016 claims that its emphasis is “on efficient tax compliance and straightforward tax regimes”.

Dispute Settlement Becomes Speculative Financial Asset

Investor-state dispute settlement (ISDS) provisions in bilateral investment treaties (BITs) and free trade agreements (FTAs) have effectively created a powerful and privileged system of protections for foreign investors that undermines national law and institutions.

Economic Recovery Crucial to Sustainable Development

More than eight years after the global financial crisis exploded in late 2008, economic growth remains generally tepid, while ostensible recovery measures appear to have exacerbated income and other inequalities. Yet, despite the G-20 group of the world’s largest economies raising the level, frequency and profile of its meetings, effective multilateral cooperation and coordination remains a distant dream.

Catastrophic Antibiotic Threat from Food

The greatly excessive use of antibiotics in food production in recent decades has made many bacteria more resistant to antibiotics. The United States Department of Agriculture (USDA) has estimated that antibiotic use in animal husbandry, poultry farming and aquaculture in the US is over four times USDA recommended levels. Meanwhile, the US Food and Drugs Administration (FDA) has estimated that 80 percent of all antibiotics sold in the USA are used on animals.

Can the SDGs be financed?

Investment in the least developed countries (LDCs) will need to rise by at least 11 per cent annually through 2030, a little more than the 8.9 per cent between 2010 and 2015, in order for them to achieve the Sustainable Development Goals (SDGs). The United Nations’ World Economic Situation and Prospects (WESP) 2017 focuses on the difficulties in securing sufficient financing for the SDGs given the global financial system and current economic environment.

Sweetened Research, Sugared Recommendations

In 2015, Coca Cola’s chief scientist was forced to resign after revelations that the company had funded researchers to present academic papers recommending exercise to address obesity and ill health, while marginalizing the role of dietary consumption. Coca-Cola, the world’s largest producer of sugary beverages, had provided millions of dollars to fund researchers to downplay the links between sugar and obesity, tooth decay and non-communicable diseases (NCDs).

Most Financial Inflows Not Developmental

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).

Another Somalian Famine

Last month, the United Nations declared another famine threat in Somalia due to yet another drought in the Horn of Africa. Important lessons must be drawn from the Somalia famine of 2010-2012, which probably killed about 258,000 people, half of whom were under-five. This was the greatest tragedy in terms of famine deaths in the 21st century, and in recent decades since the Ethiopian famine of the late 1980s.

Stemming Illicit Financial Outflows

International capital flows are now more than 60 times the value of trade flows. The Bank of International Settlements (BIS) is now of the view that large international financial transactions do not facilitate trade, and that excessive financial ‘elasticity’ has been a major cause of recent financial crises.

Tax Evasion Lessons From Panama

Unlike Wikileaks and other exposes, the Panama revelations were carefully managed, if not edited, quite selective, and hence targeted, at least initially. Most observers attribute this to the political agendas of its main sponsors. Nevertheless, the revelations have highlighted some problems associated with illicit financial flows, as well as tax evasion and avoidance, including the role of enabling governments, legislation, legal and accounting firms as well as shell companies.

Washington Rules Change, Again

Over the last four decades, the Washington Consensus, promoting economic liberalization, globalization and privatization, reversed four decades of an earlier period of active state intervention to accelerate and stabilize more inclusive economic growth, associated with Franklin Delano Roosevelt and John Maynard Keynes.

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