Your browser does not support the HTML5 canvas tag.
Εγχειρίδιο χειρισμού κρίσεων λόγω πολιτικών ΔΝΤ από τη CIA! / Already confirmed: Civil liberties under attack! / Greece's creditors gone completely insane! / How the global financial mafia sucked Greece's blood / ECB's economic hitmen / Η Μέρκελ επιβεβαιώνει τα σχέδια των γραφειοφασιστών! /Greece: the low-noise collapse of an entire country/ How the neoliberal establishment tricked the masses again, this time in France / Ενώ η Γερμανία προετοιμάζεται για τα χειρότερα, η Ελλάδα επιμένει στο ευρώ! / Ένας παγκόσμιος "proxy" πόλεμος κατά της ελευθερίας έχει ξεκινήσει! / McCarthyism 2.0 against the independent information / Ο επικεφαλής του "σκιώδους συμβουλίου" της ΕΚΤ επιβεβαιώνει ότι η ευρωζώνη είναι μια χρηματοπιστωτική δικτατορία! / Venezuela case as an emphatic example of why the mainstream media propaganda in the West was so successful in previous decades / Δημοψήφισμα για Grexit: η τελευταία ευκαιρία να σωθεί η Ελλάδα και η τιμή της Αριστεράς / Populism as the new cliche of the elites to stigmatize anyone not aligned with the establishment / Δεν γίνεται έτσι "σύντροφοι" ... / Panama Papers: When mainstream information wears the anti-establishment mask / The Secret Bank Bailout / The head of the ECB “shadow council” confirms that eurozone is a financial dictatorship! / A documentary by Paul Mason about the financial coup in Greece / The ruthless neo-colonialists of 21st century / First cracks to the establishment by the American people / Clinton emails - The race of the Western neo-colonialist vultures over the Libyan corpse / Επιχείρηση Panama Papers: Το κατεστημένο θέλει το μονοπώλιο και στις διαρροές; / Operation "looting of Greece" reaches final stage / Varoufakis describes how Merkel sacrificed Greece to save the Franco-German banks / France officialy enters the neo-Feudal era! / The US establishment just gave its greatest performance so far ... / A significant revelation by WikiLeaks that the media almost ignored / It's official: the US is funding Middle-East jihadists! / Οι αδίστακτοι νεο-αποικιοκράτες του 21ου αιώνα / How to handle political unrest caused by IMF policies! / Πώς το νεοφιλελεύθερο κατεστημένο ξεγέλασε τις μάζες, αυτή τη φορά στη Γαλλία / Οι Γάλλοι νεοαποικιοκράτες επιστρέφουν στην Ελλάδα υπό 'ιδανικές' συνθήκες

25 August, 2017

After Neoliberalism, what next?

The crisis consists precisely in the fact that the old is dying and the new cannot be born; in this interregnum a great variety of morbid symptoms appear. (Antonio Gramsci)

by Jayati Ghosh

Part 3 - Global Transfers

The financial bubble in the US attracted savings from across the world, including from the poorest developing countries, so that for at least five years the global South transferred financial resources to the North.

Developing country governments opened their markets to trade and finance, gave up on monetary policy and pursued fiscally ‘correct’ deflationary policies that reduced public spending. Development projects remained incomplete and citizens were deprived of the most essential socio-economic rights.

A net transfer of jobs from North to South did not take place. In fact, industrial employment in the South barely increased in the past decade, even in the ‘factory of the world’, China.

Instead, technological change in manufacturing and new services meant that fewer workers could generate more output. Old jobs in the South were lost or became precarious and the majority of new jobs were fragile, insecure and low-paying, even in fast-growing China and India.

The persistent agrarian crisis in the developing world hurt peasant livelihoods and generated global food problems. Rising inequality meant that the much-hyped growth in emerging markets did not benefit most people, as profits soared but wage shares of national income declined sharply.

Almost all developing countries adopted an export-led growth model, which in turn suppressed wage costs and domestic consumption in order to remain internationally competitive and achieve growing shares of world markets. This led to the peculiar situation of rising savings rates and falling investment rates (especially in several Asian countries) and to the holding of international reserves that were then placed in ‘safe’ assets abroad.

This is why the boom that ended in 2007/8 was associated with the South (especially in developing Asia) subsidising the North: through cheaper exports of goods and services, through net capital flows from developing countries to the US in particular, through flows of cheap labour in the form of short-term migration.

Source, links:


[1] [2] [4] [5] [6] [7] [8] [9]

No comments:

Post a Comment