• Multidimensional Poverty in India

    If government sources — and the World Bank — are to be believed, poverty in India has declined significantly in the past two decades.  Even as newer assessments of income poverty emerge (as with the Report of the Tendulkar Committee on Poverty Estimates) that raise the proportion of people below the poverty line, it is […]

  • Coping with Global Crises: A Tale of Two Countries

    Even before the turmoil caused by the global financial crisis has been adequately dealt with in terms of the adverse effects on employment and living conditions, governments across the world are being told that fiscal consolidation is the most important macroeconomic policy to be addressed.  The calamities resulting from sovereign debt crises are widely advertised […]

  • Fiscal Discipline and All That

    Rarely has an economic idea had such a brief revival.  After several years of almost undisputed sway of monetarist ideology over economic policy makers across the world, suddenly Keynesian ideas were back in fashion, in particular the idea that active state intervention in the form of increased state expenditure is necessary to bring a market […]

  • India: The Oil Price Hike

    What on earth are they thinking?  In the midst of an almost unprecedented and continuous increase in the price of necessities, which is increasingly translating into generalised inflation, the UPA government has chosen to “free” the price of petroleum products, to bring them in line with international prices.  What this translates into is a significant […]

  • Eurozone Crisis: The Germans Have Gone Mad

      Jayati Ghosh: It wasn’t an actual transfer of one trillion dollars.  It was a notional thing.  It was a credit line.  It was basically the European Central Bank telling private banks across the region: if you are indeed distressed, we will bail you out, we have a credit line ready for you.  Now, the […]

  • Revisiting Global Imbalances

    Until recently, the discussion on global imbalances focused on the current account deficit of the US and the current account surplus of China, making this a bilateral rather than a multilateral problem.  As a result, the process of rebalancing was seen as involving adjustments in either or both of these countries, and not so much […]

  • Restructuring the Bretton Woods Twins

      Prabir Purkayastha: The BRIC and IBSA Summits seem to have been indicating that G20 is the solution to the problems of the world, and they are happy that they have come out of the grip of G7 as it were.  Do you really think that this is something that is going to happen? Jayati […]

  • No Indian Miracle

      Paul Jay: So there’s a lot of talk about the growth and expansion in India and China, and especially India these days.  We’re hearing again about the Indian miracle.  Whose miracle is it, anyway?  And is it such? Jayati Ghosh: No, it’s not actually a miracle.  First of all, let me clarify.  India and […]

  • Thailand: Economic Background to Political Crisis

    The ongoing political crisis in Thailand has been capturing headlines for some time now, and now even appears to be heading towards some kind of climax.  This political instability reflects more than the resistance of the existing establishment to the increasingly vociferous demands of those who have been marginalised from most of the benefits.  It […]

  • On the Greek Crisis

      Jayati Ghosh: What’s happening to Greece is in an interesting way what many developing countries have gone through.  It’s really an inability to have independent monetary and fiscal policies, combined with a fact that during the boom it was chosen as a favorite destination, which creates a situation where you then become uncompetitive.  Suddenly […]

  • Poverty Reduction in China and India: Policy Implications of Recent Trends

    China and India are generally regarded as the two large countries in the developing world that are the “success stories” of globalisation.  This success has been defined by the high and sustained rates of growth of aggregate and per capita national income; and the substantial reduction in income poverty.  Further, both China and India are […]

  • The Risks of 21st Century Stagflation

    Well before the global financial crisis finally broke in September 2008, most people in developing countries were already reeling under the effects of dramatic volatility in global food and fuel markets.  From late 2006, prices of most primary commodities first increased very rapidly, then collapsed even more sharply from their peaks in May-June 2008. This […]

  • The Crisis and Employment in Asia

    Ever since the global financial and economic crisis broke, the International Labour Organisation (ILO) has been regularly tracking its impact on the level and quality of employment.  In January 2009, the ILO (International Labour Office 2009) indicated that, under alternate scenarios, global unemployment could increase by between 18 million and 51 million people worldwide from […]

  • The WTO as Barrier to Financial Regulation

    In most parts of the world today (except perhaps in India, where optimism about the benefits of unregulated financial markets still seems to dominate over the undisputable evidence of their many fragilities) most policy makers talk about imposing regulations on the financial sector.  Of course, the events of the past two years in the world […]

  • Can the Euro Survive?

    Among the many unfortunate features of capitalist history that tend to repeat themselves with depressing regularity is the conversion of crises of private activity in financial markets into fiscal crises of the state.  This is already happening once again, as the very expansion of public expenditure that was necessitated by the financial crisis (which itself […]

  • Are We Heading for Another Global Primary Commodity Price Surge?

    Well before the financial crisis broke out so violently in the US and caused ripple effects all over the world, most people in developing countries were already reeling under the effects of dramatic volatility in global food and fuel markets.  In 2007 and 2008 prices of most primary commodities first increased very rapidly, to a […]

  • Beyond Ecological Imperialism

    So the Copenhagen summit did not deliver any hope of substantive change, or even any indication that the world’s leaders are sufficiently aware of the vastness and urgency of the problem.  But is that such a surprise?  Nothing in the much-hyped runup to the summit suggested that the organisers and participants had genuine ambitions to […]

  • The Impact of the Crisis on Women in Developing Asia

    Introduction: As developing Asia is the most “globalised” region of the world in terms of both trade flows and financial flows, it was expected that the global crisis would adversely affect the region.  However, while the impact has indeed been strong, Gross Domestic Product (GDP) growth has, as of yet, not been negative; rather, the […]

  • Global Imbalances: Remarkable Reversal

    An important feature of the global monetary regime of the last three decades is the imbalance in the distribution of current account balances across countries and country groupings.  Recently, the most glaring discrepancy is the fact that a huge US balance of payments deficit is being substantially financed by developing countries and not largely by […]

  • IMF: Back from the Dead

    The International Monetary Fund (IMF) has definitely had a very good crisis.  Just over a year ago, it was an institution on life support: ignored by most developing countries; derided for its failure to predict most crises in emerging markets and its often counterproductive responses to such crises; even called to book by its auditors […]