North Ignores ‘Perfect Storm’ in Global South

By Jomo Kwame SundaramKATHMANDU, Nepal, Feb 14 2024 (IPS) A gathering ‘perfect storm’ – due to various developments, several quite deliberate – now threatens much devastation in the global South, likely to most hurt the poorest and most vulnerable. Globalisation’s protracted decline The age of globalization had mixed consequences, unevenly incorporating national markets for labour, goods and even some services. It ended gradually, with the trend far more pronounced following the protracted worldwide stagnation since the 2008 global financial crisis. Jomo Kwame SundaramSometimes still referred to as the Great Recession, Western central banks resorted to unconventional monetary policies, mainly ‘quantitative easing’, to keep their economies afloat. But easier credit enabled more financialization and indebtedness, rather than recovery, let alone sustainable development. But the end of the era of globalization did not mean a simple return to the status quo ante. Most economies had been transformed irreversibly by economic liberalization, both nationally and internationally, with dire lasting consequences. Market pressures for fiscal austerity were strengthened by conditionalities and advice from international financial institutions. This inevitably led to deep cuts in government spending, leaving little for public investments, which might contribute to the recovery of the real economy. Interest rate hikes accelerate stagnation The 2008 Wolfowitz doctrine, from l...
Source: IPS Inter Press Service - Health - Category: International Medicine & Public Health Authors: Tags: Armed Conflicts COVID-19 Economy & Trade Financial Crisis Global Globalisation Headlines Labour Sustainable Development Goals TerraViva United Nations IPS UN Bureau Source Type: news