Financial Crisis

A World in Crisis Needs Both Trade and Aid

We are in the toughest period the world economy has faced since the creation of the multilateral system more than three-quarters of a century ago. A quadruple shock of COVID, climate change, conflict and cost-of-living has undone years of hard-fought development gains.

Stagflation: From Tragedy to Farce

Half a century after the 1970s’ stagflation, economies are slowing, even contracting, as prices rise again. Thus, the World Bank warns, “Surging energy and food prices heighten the risk of a prolonged period of global stagflation reminiscent of the 1970s.” In March, Reuters reported, “With surging oil prices, concerns about the hawkishness of the Federal Reserve and fears of Russian aggression in Eastern Europe, the mood on Wall Street feels like a return to the 1970s”.

April Fool’s Inflation Medicine Threatens Progress

The world economy is on the brink of outright recession, according to the International Monetary Fund (IMF). The Ukraine war and sanctions have scuttled recovery from the COVID-19 pandemic.

Neo-Colonial Currency Enables French Exploitation

Colonial-style currency board arrangements have enabled continuing imperialist exploitation decades after the end of formal colonial rule. Such neo-colonial monetary systems persist despite modest reforms.

Fear Returns to Argentina, Once Again on the Brink

Darío is a locksmith in Flores, a traditional middle-class neighborhood in the Argentine capital, who will have to stop working in the next few days. "Suppliers have suspended the delivery of locks, due to a lack of merchandise or because of prices," he laments. His case is an illustration of an economy gone mad in a country that once again finds itself on the brink of the abyss.

Smallholder Farmers in Uganda Recruit Black Soldier Fly for Green Fertiliser

The conflict in Ukraine has led to an increase in fertiliser prices in Uganda and neighbouring Kenya. Amidst the shortages, some farmers are shifting to a more sustainable way of enriching their soils using frass from the Black Soldier Fly.

World Faces Cascading Crises Causing Profound Suffering & Multiple Famines

Our world is in deep trouble – and so too are the Sustainable Development Goals (SDGs). Time is running out. But there is still hope. Because we know what we need to do:

Income-based Solutions Paramount for Addressing Food Insecurity – Experts

Lisa Argiropulos, a single mother of two teenage sons and a resident of Ottawa, Ontario, has been facing food insecurity since 2016, after an accident that left her with chronic pain and disabilities.

Recovering Edible Food from Waste Provides Environmental and Social Solutions in Argentina

For 30 years, Tomasa Chávez visited the Central Market of Buenos Aires and rummaged through the tons of fruits and vegetables that the stallholders discarded, in search of food. Today she continues to do so, but there is a difference: since 2021 she has been one of the workers hired to recover food as part of a formal program launched by the Central Market.

OECD’s Regressive World Corporate Income Tax Reform

After decades of rejecting international tax cooperation under multilateral auspices, rich countries have finally agreed. But, by insisting on their own terms, progressive corporate income tax remains distant. Tax avoidance and evasion by transnational corporations (TNCs) are facilitated by ‘tax havens’ – jurisdictions with very low ‘effective’ taxation rates. Intense competition among developing countries to attract foreign direct investment (FDI) makes things worse.

SWIFT Dollar Decline

US-led sanctions are inadvertently undermining the dollar’s post-Second World War dominance. The growing number of countries threatened by US and allied actions is forcing victims and potential targets to respond pro-actively. SWIFT strengthened dollar The instant messaging system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) informs users, both payers and payees, of payments made. Thus, it enables the smooth and rapid transfer of funds across borders.

US Leads Sanctions Killing Millions to No End

Food crises, economic stagnation and price increases are worsening unevenly, almost everywhere, following the Ukraine war. Sanctions against Russia have especially hurt those relying on wheat and fertilizer imports. Unilateral sanctions illegal Unilateral sanctions – not approved by the UN Security Council – are illegal under international law. Besides contravening the UN Charter, unilateral sanctions inflict much human loss. Countless civilians – many far from target countries – are at risk, depriving them of much, even life itself.

Developing countries and the Perfect Storm
Part II: What Developing Countries Need to Do

Developing countries are facing a combination of crises that are unprecedented in recent times. Over the last three years they have had to face the COVID-19 crisis, the food crisis, the energy crisis, the climate change crisis, the debt crisis and, on top of all this, a global recession. The crises have overlapped, and each has added to the problems created by the previous ones.

Developing Countries and the Perfect Storm
Part I: What Should Developed Countries Do?

Developing countries – in Africa, in Asia, in Latin America and in the Middle East - are facing a combination of crises that are unprecedented in recent times. Over the last three years they have had to face the COVID-19 crisis, the food crisis, the energy crisis, the climate change crisis, the debt crisis and, on top of all this, a global recession. The crises have overlapped, and each has added to the problems created by the previous ones.

Sanctions Now Weapons of Mass Starvation

US and allied economic sanctions against Russia for its illegal invasion of Ukraine have not achieved their declared objectives. Instead, they are worsening economic stagnation and inflation worldwide. Worse, they are exacerbating hunger, especially in Africa.

Davos Fails on Financial Transparency – And Everything Else

At this year’s World Economic Forum (WEF) at Davos which ended last week, the attention of the world’s financial and economic elite was captured by the war in Ukraine whose president Volodimir Zelensky used his address to call to “complete withdrawal of foreign businesses from the Russian market”, despite 380 of the largest multinational companies still operating in Russia.

Xenophobia-hit Zimbabweans Saving Country’s Dead Economy

Two decades ago, Trynos Mahamba left Zimbabwe for the United Kingdom, but back home, he has changed the lives of his relatives. Since the day after he left, Mahamba (53) has been sending money home while Zimbabwe’s economy faltered amidst violent land seizures from commercial white farmers during Zimbabwe’s land reform programme.

Fighting Inflation Excuse for Class Warfare

A class war is being waged in the name of fighting inflation. All too many central bankers are raising interest rates at the expense of working people’s families, supposedly to check price increases.

A Sliver of Hope for Lebanon?

In the midst of what has been an incredibly turbulent period for Lebanon, the conclusion of elections last week ought to be hailed as a chance to focus on the future. This, the first election since the mass uprisings in 2019 against what was seen as a corrupt ruling elite, has shown some signs of the drive for change.

When Saviours Are the Problem

Central bank policies have often worsened economic crises instead of resolving them. By raising interest rates in response to inflation, they often exacerbate, rather than mitigate business cycles and inflation.

Finance Drives World to Stagflation

The world is being pressed by financial interests to raise interest rates, ostensibly to check inflation. After the US Federal Reserve started raising interest rates, more central banks have been doing likewise. Considering inflation’s contemporary causes, such ‘follow the leader’ central bank mimicry cannot check it except by slowing economies. Worse, this has meant taking on huge new risks, seriously damaging world economic prospects in the medium and long-term.

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