Financial Crisis

Beware UN Food Systems Summit Trojan Horse

Undoubtedly, the world needs to reform existing food systems to better serve humanity and sustainable development. But the United Nations World Food Systems Summit (UNFSS) must be consistent with UN-led multilateralism. For the first time ever, the World Economic Forum (WEF), a partnership of some of the world’s most powerful corporations, is partnering the UN in launching the Summit, now scheduled for September, with its ‘Pre-Summit’ beginning today.

Myths, Lobbies Block International Tax Cooperation

Too many have swallowed the myth that lowering corporate income tax (CIT) is necessary to attract foreign direct investment (FDI) for growth. Although contradicted by their own research, this lie has long been promoted by influential international economic institutions.

Southeast Asia and Food Price Inflation: Double Whammy

In 2020, Southeast Asian countries were already facing varied challenges that affected the region’s food supplies and prices. The onset of the Covid-19 pandemic later in the year exacerbated the region’s food insecurity and poverty. Southeast Asian countries need to take a hard look at food security, even as the double challenges — climate change and the Covid-19 pandemic — continue to fester.

New global index seeks to transform how developing nations are supported

The Commonwealth Secretary-General Patricia Scotland has spoken today urging the international community to make crucial changes to how it delivers finance to developing nations, proposing a new system that moves beyond the use of GDP as the sole criteria for receiving certain types of support.

Boldly Finance Recovery to Build Forward Better

COVID-19 has become a “developing country pandemic”, retreating from the North’s mass vaccination. With developing countries heavily handicapped, the International Monetary Fund (IMF) warns of a “dangerous [new] divergence”.

Powerful States Push Tax Race to the Bottom

Last week, the largest rich countries, home to most major transnational corporations (TNCs), agreed to a global minimum corporate income tax (GMCIT) rate. But the low rate proposed and other features will deprive developing countries of their just due yet again.

Paltry International Support for Spending Needs Sets South Further Back

With the pandemic setting back past, modest and uneven progress, huge disparities in containing COVID-19 and financing government efforts are widening the North-South gap and other inequalities once again.

Indian Muslim Minority Targeted During COVID-19 Pandemic

A Muslim call centre operator at a COVID-19 ‘war room’, who once saw himself a COVID-warrior, is now unemployed after being falsely branded by a top politician as a key member of a bed-for-bribe scam. He is a victim of the rise in Islamophobia in India as the country grapples with the COVID-19 pandemic – with scant evidence of condemnation from the authorities, say activists.

Why Investing in Women Is Key to Achieving the Sustainable Development Goals

Last year, the Asia-Pacific region recorded its worst economic performance in decades. With the pandemic far from over, the region’s recovery is slow, fragile and highly uneven both across and within countries. As the region struggles to recover, how can countries rebuild their economies and revive their development?

Pandemic Relief Policies Need More Resources, Better Design

Pandemic relief measures in developing countries have been limited by modest resources, fear of financial market discipline and policy mimicry. COVID-19 has triggered not only an international public health emergency, but also a global economic crisis, setting back decades of uneven progress, especially in developing countries.

Developing Countries Desperately Need COVID-19 Financing

Failure to sufficiently accelerate comprehensive efforts to contain COVID-19 contagion has greatly worsened the catastrophe in developing countries. Grossly inadequate financing of relief, recovery and reform efforts has also further set back progress, including sustainable development.

Global Austerity Alert: Looming Budget Cuts in 2021-25 and Alternatives

Last week Ministers of Finance met virtually at the Spring Meetings of the International Monetary Fund (IMF) and the World Bank to discuss policies to tackle the pandemic and socio-economic recovery.

Only Multilateral Cooperation Can Stop Harmful Tax Competition

US Treasury Secretary Janet Yellen has urged all governments to support a global minimum corporate tax rate of at least 21%. The US is working with other G20 nations to get other countries to end the “thirty-year race to the bottom on corporate tax rates”.

IMF, World Bank Must Support Developing Countries’ Recovery

The COVID-19 pandemic continues to take an unprecedented human and economic toll, wiping away years of modest and uneven progress towards the Sustainable Development Goals (SDGs). Developing countries now need much more support as progress towards the SDGs was ‘not on track’ even before the pandemic.

UN Leadership Necessary for Fairer Tax Cooperation

Illicit financial flows (IFFs) hurt all countries, both developed and developing. But poor countries suffer relatively more, accounting for nearly half the loss of world tax revenue. IFFs refer to cross-border movements of money and other financial assets obtained illegally at source, e.g., by corruption, smuggling, tax evasion, etc. This often involves trade mis-invoicing and transnational corporations’ (TNCs) transfer pricing via ‘creative’ accounting or book-keeping.

Developing Countries COVID-19 Debt Crisis Could Put SDGs & Climate Agreement Completely Out of Reach

The inability of developing nations to spend on post COVID-19 recovery and resilience has placed the world on the "the verge of a debt crisis". “We face the spectre of a divided world and a lost decade for development,” United Nations Secretary-General António Guterres said on Monday, Mar. 29, during a high-level meeting on financing development post COVID-19.

IMF, World Bank Must Urgently Help Finance Developing Countries

COVID-19 has set back the uneven progress of recent decades, directly causing more than two million deaths. The slowdown, due to the pandemic and policy responses, has pushed hundreds of millions more into poverty, hunger and worse, also deepening many inequalities.

Nobel Economist and 100 Experts Condemn Corporate Action against Argentina and Bolivia after Rollback of Failed Pension Privatization

Nobel Laureate Joseph Stiglitz, Juan Somavia, Jeffrey Sachs, Jose Antonio Ocampo and more than 100 high-level development experts have issued a statement protesting insurance corporations suing Argentina and Bolivia over the reversal of their failed pension privatizations at closed sessions of the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank. If Argentina and Bolivia lose the disputes, it means that impoverished citizens and elderly pensioners will have to compensate wealthy financial corporations. Read their letter:

Brexit Shows Why Traders Need Reliable Information But Many Are Ahead of the Game

It’s now almost three months since the United Kingdom entered into a new trade agreement with the European Union. During that time, we’ve seen traders struggle to get to grips with the new arrangements. From lorry drivers having their sandwiches confiscated by Dutch customs officers to estimates of additional paperwork costs of $7 billion a year, and pig breeders watching their meat rot on the quayside for want of the correct forms.

Prioritise Pandemic Relief, Recovery: No Time for Debt Buybacks

Developing country governments are being wrongly advised to use their modest fiscal resources to pay down accumulated debt instead of strengthening pandemic relief and recovery. Thus, debt phobia risks deepening and extending COVID-19 recessions by prioritising buybacks.

The Mexican Economy: A Short or Long Recession Cycle?

The trend of the Mexican economy during the last two years has not been positive. INEGI, the official bureau of statistics, has just reported that GDP registered a fall of 8.5 percent compared to 2019 with seasonally adjusted figures. But in 2019 GDP also receded, although in far less measure, less than one percentage point. However, it must be considered that the Mexican economy has been falling for 6 quarters (compared to the previous year). Considering the population growth rate (1.2 percent per year), the fall in the GDP per capita is close to 11 percent. This figure matters because it gives a more accurate idea of the size of the downturn. It is also necessary to take into account the two years, since our interest should be now to try to figure out how long the recession will be the endure, that is, when will Mexico reach the pre-pandemic level of GDP.

Next Page »