The Group of 20 (G20) recently endorsed the issuance of $250bn of Special Drawing Rights (SDR) by the IMF, but it made no arrangements for rich countries to transfer their allocations to poor ones. The idea was not even mentioned. Yet that is where the real benefits of an SDR issue would come from. It could fill two distinct gaps in the current financial architecture. A memorandum by George Soros
The IMF is faced with a novel task. It must protect the countries at the periphery of the global financial system from a devastating storm that emanated from the centre. The periphery countries need assistance: (1) to ensure the continued availability of credit; and (2) to enable them to engage in countercyclical fiscal policies. An SDR issue, with the rich countries transferring their allocation to the poorer ones, could help in both respects ... ... this article comes up in WDEV 3/May-Jun 2009 and is for subscribers only. For direct log in >>> click here.If you have no subscription >>> pick your option or >>>
At first glance, everyday life seems not to have changed in Istanbul. The streets are congested; people hurry to the ferry or the bus. For weeks, there has been no terror attack. Nevertheless, there are some visible changes. There are much more policemen in the streets. In some days, the Istiklal Caddesi, the main shopping street on the European side, seems to be under a state of siege. At every street corner, there is police van with the blue light switched on.
Recent disturbing trends in international finance have particularly problematic implications, especially for developing countries. The new United Nations report, World Economic Situation and Prospects 2017 (WESP 2017), is the only recent report of a multilateral inter-governmental organization to recognize these problems, especially as they are relevant to the financing requirements for achieving the Sustainable Development Goals (SDGs).
The Trump government signals unequivocally the end of international US hegemony. An international hegemon is able to define rules that find relatively broad acceptance internationally and plays a role in safeguarding international economic stability. The Trump government announced measures that go against the present economic rules while not proposing new ones.
The global deficit in quality jobs and deteriorating economic conditions in a number of regions threatens to undo decades of progress in poverty reduction, warns a new report by the International Labour Organization (ILO), the World Employment and Social Outlook (WESO) 2016.
Weakening of workers' rights in most regions is being aggravated by severe crackdowns on freedom of speech and assembly, according to the 2016 Global Rights Index. Restrictions on freedom of speech and assembly, including severe crackdowns in some countries, increased by 22%, with 50 out of 141 countries surveyed recording restrictions.