This issue of the South Bulletin reports on the meeting between the South Centre’s Chairman, Mr. Benjamin Mkapa, and China’s President, Mr. Xi JinPing, held in Tanzania.

Mr. Mkapa explained the work and priorities of the Centre and President Xi praised the efforts of the Centre in promoting South-South cooperation and in increasing the representation of the Centre, and said China would continue to provide help to the Centre.

Initiative for Policy Dialogue and the South Centre Working Paper, March 2013

This paper: (i) examines the latest IMF government spending projections for 181 countries by comparing the four distinct periods of 2005-07 (pre-crisis), 2008-09 (crisis phase I: fiscal expansion), 2010-12 (crisis phase II: onset of fiscal contraction) and 2013-15 (crisis phase III: intensification of fiscal contraction); (ii) reviews 314 IMF country reports in 174 countries to identify the main adjustment measures considered in high-income and developing countries; (iv) discusses the threats of austerity to development goals and social progress; and (v) calls for urgent action by governments to adopt alternative and equitable policies for socio-economic recovery.

Policy Brief, January 2013

Since at least the early 1990s, countries that sought to regulate the capital account risked self-inflicted stigma in the international investment arena, even in the face of uncontroverted analytical reasons for their appropriateness.Subsequent events, including the Asian financial crisis in 1997, have not eliminated the stigma risk from capital account controls but the analytical discussion has shifted to when, not if, such controls are warranted.

Due to the global economic situation, many countries around the world are either facing debt crises or on the verge of falling into one.

This issue of South Bulletin focuses on resolving the debt crises, especially through the setting up of an international debt resolution mechanism, an idea whose time has come.

Reprint Series 1

In recent years financial policies in both industrial and developing countries have put increased emphasis on the market mechanism. Liberalization was partly a response to developments in the financial markets themselves: as these markets innovated to get round the restrictions placed on them, governments chose to throw in the towel. More important, however, governments embraced liberalization as a doctrine.

Policy Brief, December 2012

A fundamental question raised by recurrent financial crises in mature and emerging economies is how to ensure that the financial markets and institutions serve growth and development rather than being a constant source of instability and disruption in pursuit of self-interest.

Policy Brief, November 2012

Because of the absence of a multilaterally agreed legal system for debt workouts, the practice tends to be ad hoc and disorderly, generally favouring creditors. Often the IMF is involved in coordinating and resolving debt servicing difficulties, be it due to solvency or liquidity problems, based on an adjustment programme agreed with the debtor country.

This issue of South Bulletin focuses on trade – the WTO impasse and the possible roads ahead, the multilateral trading system and current topical WTO issues; and the IMF-World Bank Annual Meetings held in Tokyo on 9-14 October 2012.

Policy Brief, October 2012

As seen over and again during recurrent financial crises in both developing and advanced economies (DEs and AEs), including the recent global crisis originating in the US and Europe, financial instability and boom-bust cycles undermine all three ingredients of sustainable development – economic development, social development and environmental protection.

This issue of South Bulletin focuses on how developing countries in Asia, Latin America and Africa are now facing an economic slowdown with a deterioration in GDP growth, exports and lending conditions.  The effects of the Eurozone recession and the US slowdown are now increasingly felt in the South.

This issue of South Bulletin covers many interesting issues. Our two lead articles are on the BANKING CRISIS in developed countries.  The first by Martin Khor reviews how the LIBOR scandal has contributed to the loss of confidence on the ethics of the major banks.  The second article is by India’s former Central Bank Governor, Dr. Y.V. Reddy on the need to re-make the financial system to meet society’s needs.  He focuses on why trust has to be restored, how there has been “comprehensive regulatory capture” of the system, and the need for inclusive finance, as issues to address.

This issue of the South Bulletin focuses on the Rio Plus 20 Summit to be held in 20-22 June in Brazil.  The meetings actually begin on 13 June.

Twenty years after the Earth Summit the world faces even more serious crises in the environment and the economy.  Will Rio+20 do better in rising to the challenge of tackling the global crises?

After two years of negotiations, the Summit meetings are now underway.  But the outcome of the Summit is still far from decided.

Policy Brief, June 2012

The South Centre's Chief Economist, Dr. Yilmaz Akyüz, took part as a speaker at the UN General Assembly's two-day Thematic Debate on the State of the World Economy, held in New York on 17-18 May 2012. Below is the statement he presented to one of the four roundtables at the conference.

This issue of South Bulletin focuses on the UNCTAD XIII conference in Doha at the end of April. It ended with the adoption of a Doha Mandate, which gave UNCTAD a new and broad 4 year mandate to continue to work on a wide range of issues, including the global financial crisis, macro-economic policy and debt, as well as other trade and development issues.  

This issue of South Bulletin highlights a keynote speech made by the Chairperson of the South Centre, H.E. Mr. Benjamin W. Mkapa, former President of Tanzania, in which he made a critical analysis of the Economic Partnership Agreements (EPAs) that the African countries are negotiating with the European Union, and the alternatives for the East African Community and for African countries.

Research Paper 44, March 2012

This paper argues that the unprecedented acceleration of growth in the developing world in the new millennium in comparison with advanced economies is due not so much to improvements in underlying fundamentals as to exceptionally favourable global economic conditions, shaped mainly by unsustainable policies in advanced economies. The only developing economy which has had a major impact on global conditions, notably on commodity prices, is China. However, growth in China has been driven first by a rapid expansion of exports to advanced economies and more recently, after the global crisis, by an investment boom, neither of which is replicable or sustainable over the longer term. To maintain a rapid growth, export-led Asian economies need to reduce their dependence on foreign markets. For Latin American and African commodity exporters, gaining greater autonomy and achieving rapid and stable growth depend on their success in reducing reliance on capital flows and commodity earnings – the two key determinants of their growth which are largely beyond national control.

The South Centre organised a Workshop on the State of the Global Economy, and Reflection on Recent and Future Multilateral Negotiations. The Workshop provided a forum at the beginning of 2012 for policy makers, diplomats and experts of developing countries to reflect on the state of the global economy and prospects for developing countries, and on the implications of important multilateral negotiations that have recent taken place, and that will take place this year.

This issue of the South Bulletin focuses on the recent deterioration in the state of the global economy and the effects this will have on developing countries.

The Bulletin also gives details of the Conference co-organised by the South Centre on Options that developing countries have in facing the global financial turmoil.

This issue of South Bulletin focuses on the adverse effects of the boom and bust cycle in capital flows into and out of developing countries, which has caused adverse effects in many economies.

After the financial crisis, capital flows resumed their large surge into some developing countries.  This has caused them many problems, such as currency appreciation affecting their trade, excess money, asset price boom and inflation.

Research Paper 37, March 2011

The South Centre is releasing a new research paper by its Chief Economist, Y?lmaz Akyüz.

The paper argues that the policy of quantitative easing and close-to-zero interest rates in advanced economies, notably the US, are generating a surge in speculative capital flows to developing countries in search for yield and creating bubbles in foreign exchange, asset, credit and commodity markets. This latest generalized surge constitutes the fourth post-war boom in capital flows to developing countries. All previous ones ended with busts, causing serious damages to recipient countries.  The conditions driving the current boom in capital flows and commodity prices are not sustainable and they are likely to be followed by a sharp downturn.  Various scenarios that can bring them to an abrupt end are discussed.  Examining the policy responses and financial and macroeconomic developments in major emerging economies, the paper concludes that deficit commodity-rich economies that have been enjoying the dual benefits of global liquidity expansion - that is, the boom in capital flows and commodity markets - are most vulnerable to a possible reversal, and urges them to manage capital flows more effectively.

Research Paper 32, November 2010

This South Centre report argues that the G20 agenda misses some of the key issues that need to be dealt with in order to effectively reform the international monetary system so as to avert future global financial crises. The missing issues include enforceable exchange rate and adjustment obligations, orderly sovereign debt workout mechanisms and the reform of the international reserves system.

The paper also points out that there are no effective rules to control the unstable global financial market, no multilateral discipline over misguided monetary and exchange rate policies, and national policy makers are preoccupied with resolving crises by supporting those responsible for these crises rather than introducing measures to prevent future crises. This may sow the seeds for future problems.

This issue of South Bulletin focuses on the key issues in the international monetary system, many of which are missing from the agenda of the G20 which will hold a Summit in November. Three articles deal with the need to reform the IMF and the global financial systems.

Other articles deal with recent emerging issues in the global economy – the currency chaos, volatile capital flows, and a new protectionism in the U.S.

This latest issue of South Bulletin focuses on why China and other East Asian developing countries require a rethinking of the growth strategies, as the global economic slowdown has exposed their over-reliance on exports.

The articles include estimates on the dependence of China on exports for its growth (much higher than previously estimated), why the trade surplus of China with the US is much smaller than widely thought, and the way forward for future growth in China. Another aricle discusses why other East Asian countries face deeper problems and also need a policy re-thinking.

The Bulletin reports on the latest June climate talks in Bonn:  how developing countries suffered a setback in a new text, and how the talks reveal continuing deep differences.Another article reports on a dire warning by climate scientists why the "paltry pledges" of the Copenhagen Accord are driving the world to a temperature increase of 3 to 4 degrees.

Research Paper 28, May 2010

South Centre has released a Research Paper which examines the impact of the external shocks from the global economic crisis on industrial development of Least Developed Countries (LDCs).  These countries are heavily exposed to external shocks because of their extensive trade with the rest of the world.  Yet, they are marginalized in terms of their share in international trade and output.  They suffer from structural weaknesses and chronic balance-of-payments and fiscal deficits.  They are heavily dependent on commodity exports and external financing.The global economic crisis is a wake-up call for LDCs to reconsider their long-term industrial and development strategies.  

Research Paper 27, April 2010

The South Centre has published a research paper by its Special Economic Advisor and Chief Economist Yilmaz Akyuz, addressing export dependence and their contribution to growth in China and its supplier developing economies in East Asia, in the context of re-examining their growth strategies in light of the global economic crisis and medium term global growth prospects.

Research Paper 26, March 2010

The South Centre releases a new research paper which throws interesting light on the global economic imbalances, the situation in the major countries, and what needs to be done.

The paper recognises that the US economy has to adjust, and its over-consumption problem has to be tackled. But in the debate on the global economy, attention has focused on US-China relations, to the neglect of the role of Germany and Japan.

Research Paper 24, May 2009

This new paper, authored by the Centre's Special Economic Advisor, Dr Yilmaz Akyuz, deals with the global financial crisis and developing countries.

The first part is on what is needed to support the required policy response in developing countries. The second part is on the required reform to the international financial architecture.  A summary of policy conclusions and proposals is at the end.

South Bulletin Issue 38 (7 July 2009) Articles

Article 7: Click  here to download

South Bulletin Issue 38 (7 July 2009) Articles

Article 6: click  here to download

South Bulletin Issue 38 (7 July 2009) Articles

Article 5: click  here to download

By Martin Khor

South Bulletin Issue 38 (7 July 2009) Articles

Article 4: Click  here to download

By Bhumika Muchhala

 

South Bulletin Issue 38 (7 July 2009) Articles

Article 3: click  here to download

 

South Bulletin Issue 38 (7 July 2009) Articles

Article 2: click  here to download

By Martin Khor 

South Bulletin Issue 38 (7 July 2009) Articles

Article 1: Click  here to download

 By Dr. Yilmaz Akyüz

 

South Bulletin Issue 37 (6 June 2009) Articles

Article 2: click  here  to download

South Bulletin Issue 37 (6 June 2009) Articles

Article 1: Click  here to download

 

 

5 April 2009

Although the G20 Summit in London was publicised as providing $1 trillion for developing countries, in fact the extra funds are much less.  Moreover, the IMF is to get more resources but without undergoing the necessary reforms. South Centre's Executive Director, Martin Khor, commented on the G20 Summit in London on 2 April.

 

Published in The Star, 23 March 2009

At the African Union's Trade Ministers' conference in Addis Ababa in mid-March, there was great anxiety about the growing effects of the global recession.  In particular, African countries are worried about the Economic Partnership Agreements being negotiated with the European Union.  

This article by South Centre Executive Director Martin Khor was published in the Malaysian newspaper The Star on 23 March 2009, as part of the column Global Trends.

Published in The Star, 30 March 2009  

In the column Global Trends in the Malaysian newspaper, The Star, the South Centre's Executive Director Martin Khor writes on the G20 Summit taking place this week in London.

Hopes that the G20 Summit will make decisions adequate to address the global economic crisis are fading.  The danger is that the leaders will give more resources to the IMF, while not reforming the IMF.  Meanwhile the UN has just held a special dialogue on the crisis, with Prof. Stiglitz presenting a summary of the report of the UN Commission.

The South Centre Executive Director, Martin Khor, presented a statement to the UN General Assembly on 25 March, detailing the effects of the economic crisis on developing countries and making proposals for changes to the international finnacial and economic order.

 

This Issue of the South Bulletin focuses on the global economic and financial crises. The Editorial by Dr. Yash Tandon, the outgoing Executive Director of the South Centre is on "Recalling Nyerere".

Articles and commentaries appearing in this Issue include, Financial Crisis: Bailing out the North when Justice Eludes the South, Global Financial Crisis: How to deal with it?, Learnings from China: Bailing out the Poors First amidst Financial Crisis, Poverty of Africa in the Richly Endowed Basin, and Work Together to Write a New Chapter of China-Africa Friendship.

The Op-Ed is by Vice Yu on "Developed Country Climate Financing Initiatives Weaken the UN Climate Convention".

Mr. Vice Yu, Coordinator, Global Governance for Development Programme of the South Centre, made a presentation on " The Future of Global Economic Governance in the Face of Global Crises – South Perspectives" at CIDSE Expert Meeting: Crises in global governance, opportunities for global justice  organized by CIDSE (Internacional Cooperation for Development and Solidarity), Brussels on 12 February 2009.

The meeting summary is available at: http://www.cidse.org/aboutus/?id=1011

This Issue of the South Bulletin reflects upon the recently held G-20 Meeting, the upcoming Financing for Development Conference in Doha, and the Climate Change Conference in Poznan. The Editorial by Dr. Yash Tandon, Executive Director of the South Centre is on “Why the Ecuadorian Proposal May Be a Better Response to Financial Crisis than the G20 Declaration”. Under the “Leader Speak” section you can read some of the messages shared by the Heads of the State of developing countries who participated in the recent G-20 Summit on Financial Crisis in Washington DC. 

Analysis and commentaries appearing in the Bulletin, include on Rhetoric vs. Reality: The Real Issue of Global Sustainability; Poznań Climate Conference: Overview and Submissions by Developing Countries; Doha Financing for Development Talks: What Should Developing Countries Push for?; The Ecuadorian Proposal for a Crisis Response Agenda from the South; and Development Through Choice.

According to the South Centre, the global economic system is at a turning point, and the need to rethink the Financing for Development (FfD) concepts proposed by the World Bank and International Monetary Fund (IMF) is becoming increasingly apparent. It is unlikely that leaders from the North and South will rise to this challenge when they meet for the UN conference on development finance in Doha later this month. The FfD conference in Doha will most likely come up with language to address the concerns of the South without embarrassing the North. The final document will probably be in favour of globalisation, minimising its downsides.

 

The financial crisis has shown how dysfunctional the current international financial architecture is to manage the global economy of today, with its myriad of interconnections through which financial turmoil spreads across the world and with its revealed and significant regulatory deficit. In the 1980s, the debt crisis in Latin America, Africa and other parts of the developing world, and in the late 1990s the succession of the Asian, Russian and Latin American crises, had already revealed that something was deeply wrong with that architecture. The industrial world did not understand the need for serious rethinking of the governance of global finance.The fact that this time developed countries are at the center of the storm may now lead them into action.

Press ReleaseOctober 29, 2008  

 click here to download 

Statement by Board Members of the South Centre

The financial crisis has shown how dysfunctional the current international financial architecture is to manage the global economy of today, with its myriad of interconnections through which financial turmoil spreads across the world and with its revealed and significant regulatory deficit. In the 1980s, the debt crisis in Latin America, Africa and other parts of the developing world, and in the late 1990s the succession of the Asian, Russian and Latin American crises, had already revealed that something was deeply wrong with that architecture. The industrial world did not understand the need for serious rethinking of the governance of global finance.The fact that this time developed countries are at the center of the storm may now lead them into action.

This Issue of the South Bulletin reflects upon the ongoing financial crisis originating from US and bringing more countries into its fold. The Editorial by Dr. Yash Tandon, Executive Director of the South Centre is on “Time for a New Bretton Woods Conference”.

Analysis and commentaries appearing in the Bulletin, include on Financial Crisis: Lessons for the EPA Trade Negotiations; African Countries and the EPAs: Do Agriculture Safeguards Afford Adequate Protection?; The IBSA Summit and the Political Economy of the Global South; Communiqué on Global Financial Situation; SECURE: Ensuring Transparency and a Legitimate, Member-driven Process, and on Group of 77 and the Reform of the United Nations.

This Issue reflects upon the recent financial crisis in the US which threatens the global economy. The Editorial by Dr. Yash Tandon, Executive Director of the South Centre is on “Global Financial Meltdown and Lessons for the South”. The Op-Ed is on "Rebalancing the TRIPS Agreement and Strengthening Enforcement for Development" by Ambassador Sun Zhenyu, Permanent Representative of China to the WTO in Geneva.

Analysis and commentaries appearing in the Bulletin, include on Global Challenges 2008 and the Group of 77, Citizen Mobilisation Needed to Prevent Financial Crisis Impacts, South American Unity Taking Shape, Climate Change under Neo-liberal Capitalism and Trade Liberalisation Fails to Improve Africa's Export Performance.