‘Ethno-populism’ has emerged and spread in recent decades in response to the mixed consequences of neoliberal globalization. It appropriates nationalist rhetoric for narrow ethnic, religious, cultural or other communal ends, typically with a chauvinist, jingoist rejection of selected Others as politically expedient.
In recent decades, many contemporary macroeconomic and financial problems have been blamed on ‘soft budget constraints’ (SBCs), with the term becoming quite popular in the economics lexicon, financial media and political discourse.
With many in the world experiencing declining living standards, there has been growing frustration. Many hope that progressive taxation will improve things. While some economies once had progressive tax systems, recent decades have seen regression.
After accusing the World Health Organization (WHO) of pro-China bias, President Donald Trump announced US withdrawal
from the UN agency. Although the US created the UN system for the post-Second World War new international order, Washington has often had to struggle in recent decades to ensure that it continues to serve changing US interests.
The World Bank leadership must urgently abandon its ‘Maximizing Finance for Development
’ (MFD) hoax. Instead, it should resume its traditional multilateral development bank role of mobilizing funds at minimal cost to finance developing countries.
With the Covid-19 contagion from late 2019 spreading internationally this year, governments have responded, often in desperation. Meanwhile, predatory international law firms are encouraging multimillion-dollar investor-state dispute settlement (ISDS) lawsuits citing Covid-19 containment, relief and recovery measures.
Developing country debt has continued to grow
rapidly since the 2008-2009 global financial crisis (GFC). Warnings against debt
have been reiterated by familiar prophets of debt doom such as new World Bank chief economist, Carmen Reinhart
, once dubbed the ‘godmother of austerity
The Trans-Pacific Partnership (TPP) Agreement should be dead and buried after President Trump announced US withdrawal immediately after his inauguration in January 2017. After all, most major US presidential candidates in the last election, including Hillary Clinton, had opposed the TPP.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned
that developing countries would need more than the earlier estimated
US$2.5 trillion to provide relief to affected families and businesses and expedite economic recovery.
The 2020 State of Food Security and Nutrition in the World
, issued by the Food and Agriculture Organization and its United Nations partners in mid-July, reports that chronic hunger continued to increase to 690 million worldwide in 2019, 60 million more than in 2014.
Covid-19 threatens economic life the world over. The most urgent and important need is for governments, businesses and families to survive. Governments must revive economies and livelihoods to prevent Covid-19 recessions from becoming protracted depressions.
The Covid-19 crisis is clearly a ‘black swan event’, threatening both public health and livelihoods. Both the pandemic and containment efforts are not due to business operations and decisions, but nonetheless have compelling consequences for them.
With uneven progress in containing contagion, worsened by the breakdown in multilateral cooperation due to mounting US-China tensions, recovery from the Covid-19 recessions of the first half of 2020 is now expected to be more gradual than previously forecast
Pandemic response measures
In the face of the Covid-19 pandemic, many governments, especially of Organization for Economic Cooperation and Development
(OECD) economies, have introduced massive fiscal and monetary packages for contagion containment, relief and recovery.
Covid-19 is expected to take a heavy human and economic toll on developing countries, not only because of contagion in the face of weak health systems, but also containment measures which have precipitated recessions, destroying and diminishing the livelihoods of many.
GDP has been increasingly challenged on many grounds as a measure of economic and social progress. Clearly, GDP does not take account of other dimensions of wellbeing, natural resource depletion or environmental damage.
Announcing an independent evaluation of the global Covid-19 response on 9th July, World Health Organization (WHO) Director-General Dr Tedros Adhanom Ghebreyesus
asked why it has been “difficult for humans to unite and fight a common enemy that is killing people indiscriminately?”.
The recent explosion of private finance has nursed the hope
, dream or illusion that it can be mobilized for the public good, e.g., to achieve the Sustainable Development Goals, associated with Agenda 2030. However, such hopes ignore how changes in financial investing have deeply transformed corporations, national economies and prospects for the world economy and social progress.
The 1971 Bretton Woods (BW) system collapse opened the way for financial globalization and transnational financialization. Before the 1980s, most economies had similar shares of trade and financial openness, but cross-border financial transactions have been increasingly unrelated to trade since then.
In his early February annual State of the Union address
, US President Donald Trump typically hailed his own policies for increasing wages and jobs to achieve record low US unemployment. Directly appealing to labour for a second term, Trump claimed exclusive credit for the US “blue-collar boom”.
The Covid-19 crisis has had several unexpected effects, including renewed attention to food security concerns. Earlier understandings of food security in terms of production self-sufficiency have given way to importing supplies since late 20th century promotion of trade liberalization.
Seventy-five years ago, on 26 June 1945, before the Japanese surrender ending the Second World War, fifty nations gathered at San Francisco’s Opera House to sign the United Nations (UN) Charter
Katharina Pistor’s recent book, The Code of Capital: How the law creates wealth and inequality
shows how law has been crucial to the creation of capital, and how capital continues to survive, evolve and enhance its ability to ‘make money’, or secure wealth legally, i.e., through the law.