Prospects for Development:
FROM CRISES TO CANCUN
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From 1990s Promise to Unfair Global Trade: Economic Crises & Development, Slides of Culture and Globalization
The economic crises of the 1990s, focusing on the promises of globalization and reform that failed to deliver prosperity for many countries. It explores the underlying problems, such as unfair global trading regimes and the role of the imf in pushing policies that led to instability. The document also suggests potential solutions, including the need for a more inclusive global economic order.
Typology: Slides
2012/2013
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Prospects for Development:
FROM CRISES TO CANCUN
PROMISES OF THE 90S
GLOBALIZATION AND “REFORM”
WOULD BRING UNPRECEDENTED
PROSPERITY
EUPHORIA OF EXPANDING TRADE AND
CAPITAL FLOWS
NEW TRADE AGREEMENTS HERALDED
NEW ERA
LATIN AMERICA
ENTERED A NEW LOST HALF DECADE
REFORM, GLOBALIZATION HAD FAILED
GROWTH JUST OVER HALF OF WHAT
IT HAD BEEN IN PRE-REFORM
DECADES
GROWING UNEMPLOYMENT
LITTLE IMPROVEMENT IN POVERTY
BIG QUESTION: WHAT ARE WE
TO MAKE OF THESE FAILURES?
“WRONG ECONOMIC MODEL”
BASED ON MARKET FUNDAMENTALISM SUCCESS OF SUCCESSFUL COUNTRIES— UNITED STATES, EAST ASIA—WAS BASED ON A QUITE DIFFERENT MODEL GOVERNMENT HAD LARGE ROLE E.G. INDUSTRIAL POLICIES (r & d), EDUCATION, DISTRIBUTION, EMPHASIS ON GROWTH AND EMPLOYMENT, NOT JUST PRICE STABILITY
FAILED TO ADDRESS FUNDAMENTAL
PROBLEMS OF GLOBAL ECONOMY
UNDERLYING SOURCES OF INSTABILITY
POOR COUNTRIES HAVE TO BEAR THE
RISK OF INTEREST RATE AND
EXCHANGE RATE FLUCTUATIONS
GLOBAL RESERVE SYSTEM
UNDERLYING PROBLEM:
GLOBAL GOVERNANCE
ECONOMIC GLOBALIZATION HAS OUTPACED POLITICAL GLOBALIZATION NOT JUST INSTITUTIONS, BUT FRAME OF MIND SOCIAL JUSTICE, SOLIDARITY STOPS AT THE BORDER WITH GLOBALIZATION, MORE NEED FOR GLOBAL COLLECTIVE ACTION SHORT SHRIFT TO PRINCIPLES OF DEMOCRACY UNILATERALISM OVER MULTILATERALISM
GLOBAL GOVERNANCE
SMOKESTACK STRUCTURE OF DECISION
MAKING
WITH TRADE MINISTERS MEETING WITH TRADE MINISTERS, FINANCE MINISTERS WITH FINANCE MINISTERS IMPACTS BROADER OTHER INTERESTS NOT SUFFICIENTLY PAID ATTENTION TO
LESSON OF MONTEREY MEETING
DEVELOPMENT TOO IMPORTANT TO
LEAVE JUST TO FINANCE MINISTERS
IMPLICATION: NEED TO HAVE A
ROLE FOR THE UN
“ECONOMIC SECURITY COUNCIL”
INITIAL ROLE: ADVISORY, PLATFORM
WITH POLITICAL LEGITIMACY AT
WHICH CENTRAL GLOBAL ECONOMIC
PROBLEMS COULD BE DISCUSSED
DELINEATE ISSUES THAT REQUIRE
GLOBAL COOPERATION, ACTION
EXAMPLE 2: SOVEREIGN
BANKRUPTCY
PROBLEMS USED TO BE SOLVED WITH MILITARY INTERVENTIONS PRINCIPLES OF “FRESH START” WELL ACCEPTED BUT BANKRUPTCY RULES AND PROCEDURES CANNOT BE SET BY A MAJOR CREDITOR— SUCH AS THE IMF NEED FOR ALTERNATIVE APPROACH IN WHICH ALL STAKEHOLDERS ARE REPRESENTED
EXAMPLE 3: IRAQ
RECONSTRUCTION
ENTAILS MOVEMENT FROM FORM OF
SOCIALISM TO A MARKET ECONOMY
COMBINED WITH PROBLEMS OF
RECONSTUCTION—DECADE OF
SANCTIONS PLUS WAR
DECADE OF EXPERIENCE WITH SHOCK
THERAPY—
QUICK AND FULL LIBERALIZATION QUICK AND FULL PRIVATIZATION
ECONOMIC STRATEGY FOR IRAQ
BASED NOT ON ECONOMIC SCIENCE BUT ON IDEOLOGY LIKELY ONLY TO WORSEN UNEMPLOYMENT PROBLEM AND INSTABILITY IF UN TAKES PART IN RECONSTRUCTION, IT MUST HAVE A VOICE IN DESIGN OF ECONOMIC POLICY OR AT LEAST ENSURE THAT VOICES OF IRAQI PEOPLE ARE HEARD BEFORE MAJOR CHANGE, THERE MUST BE A DEBATE