Category: ECONOMY

By J C Suresh | IDN-InDepth NewsAnalysis

TORONTO (IDN) – A new report has underlined the interdependence of the world economy, which is expected to strengthen in 2014 with growth picking up in developing countries and high-income economies appearing to be finally turning the corner five years after the global financial crisis.

According to the World Bank’s Global Economic Prospects (GEP) report, the firming of growth in developing countries is being boosted by an acceleration in high-income countries and continued strong growth in China. However, growth prospects remain vulnerable to headwinds from rising global interest rates and potential volatility in capital flows, as the United States Federal Reserve Bank begins withdrawing its massive monetary stimulus.

By David Dapice* | IDN-InDepth NewsAnalysis

MEDFORD (IDN |Yale Global) – As the year that saw the world’s strongest economy brought to the precipice of a default comes to a close, and many wonder if 2014 promises more stability? Judging by most forecasts, including that of the International Monetary Fund, the global economy may grow about 3.5 percent, but confidence in that forecast is subject to more than usual hedging due to several policy unknowns and uncertainties.

As unemployment in the developed world remains steady and growth in the emerging economies dependent on lackluster performance of the industrialized economies, a question mark hangs over economic prospects worldwide.

By World Economy Desk | IDN-InDepth NewsAnalysis

BERLIN (IDN) – The South Centre, an intergovernmental organization of developing countries, has good news about developing economies. Contrary to the view promoted by ‘establishment institutions like the IMF’ (International Monetary Fund), recent events show that major developing countries have not “decoupled” their economies from those of advanced ones, avers Yılmaz Akyüz, chief economist of the Geneva-based organization.

By Martin Khor* | IDN-InDepth NewsAnalysis

GENEVA (IDN) – Negotiations for the Trans Pacific Partnership Agreement (TPPA) have been proceeding at full speed in recent months, giving rise to a lot of interest worldwide. The stated goal is to conclude the negotiations by the end of 2013. However there is only a slim prospect for this, as there are still many contentious issues to resolve.

By Martin Khor* | IDN-InDepth NewsAnalysis

GENEVA (IDN) – The world waited with bated breath as the deadline neared. And breathed a sigh of relief when at the last minute the United States avoided crossing its “debt ceiling” and a default on its debts.

The debt ceiling was raised, and the government shutdown also ended, after weeks of a high-profile standoff between U.S. President Barrack Obama and the Republicans in Congress. But this relief was mixed with incredulity and frustration.

Firstly, the respite is only temporary; the can is just kicked down the road. The deadlines for government shutdown and debt ceiling are shifted some weeks away to January and February 2014.

By J C Suresh | IDN-InDepth NewsAnalysis

TORONTO (IDN) – A new report has highlighted the importance of funds remitted home by migrants, which are now nearly three times the size of official development assistance given by rich developed nations and larger than private debt and portfolio equity flows to developing countries. They exceed the foreign exchange reserves in at least 15 developing countries, and are equivalent to least half of the level of reserves in over 50 developing countries, says the latest issue of the World Bank’s Migration and Development Brief.

Five years have passed since the Lehman Brothers collapse triggered U.S. and global financial crisis with grave consequences. But effective financial regulations are not yet in sight in developed countries. At the same time, the developing countries are confronted with huge new challenges.

By Martin Khor* | IDN-InDepth NewsViewpoint

GENEVA (IDN) – Lehman was the tip of the iceberg. Below the surface were many contributory elements. They include financial deregulation, the conversion of finance from serving the real economy to a beast that thrived on speculation, creaming layers off the productive sectors and unsuspecting consumers through new manipulative instruments.