A Journal of People report
The economic impact of violence and conflict to the global economy was $13.6 trillion in 2015, said a report of the Institute for Economics and Peace (IEP). The figure is equivalent to 13.3 percent of the world GDP or $1,876 PPP per annum, per person. To further break it down, that figure is $5 per person, per day, every day of the year. When one considers that according to the most recent World Bank estimates 10.7% of the world’s population are living on less than $2 per day, it shows an alarming market failure.
The figures in the report are expressed in purchasing power parity (PPP) terms.
The IEP said:
Iraq, Afghanistan and Venezuela are the countries where the impact of violence is more than 40 percent of GDP, and the Syrian economy is the most affected by violence, at 54.1 percent of GDP. Regionally, the cost of violence has surged in the Latin America, the Middle East and North Africa.Read More »
No Free Lunch: Or Is There?
by Ellen Brown
It has been called “a bigger risk than Brexit”– the Italian banking crisis that could take down the eurozone. Handwringing officials say “there is no free lunch” and “no magic bullet.” But UK Prof. Richard Werner says the magic bullet is just being ignored.
On December 4, 2016, Italian voters rejected a referendum to amend their constitution to give the government more power, and the Italian prime minister resigned. The resulting chaos has pushed Italy’s already-troubled banks into bankruptcy. First on the chopping block is the 500 year old Banca Monte dei Paschi di Siena SpA (BMP), the oldest surviving bank in the world and the third largest bank in Italy. The concern is that its loss could trigger the collapse of other banks and even of the eurozone itself.Read More »
by Amit Bhaduri
Frontier | Vol. 49, No.13-16, Oct 2 – 29, 2016
Analogies can mislead, but also illuminate at times by providing fresh perspective to a complex problem. The analogy that comes to my mind is the law of gravitation for discussing the link between inequality and economic power. Inequality is visible, even statistically measurable in many instances, but economic power that drives it is invisible and not measurable. Like the force of gravity, power is the organizing principle. Of inequality, be it of income, wealth, gender, race, religion or region. Its effects are seen in a pervasive manner in all spheres, but the ways in which economic power pulls and tills visible economic variables remain invisibly obscure. It defies direct empirical analysis, and has to be analysed through its effects.Read More »
by Swatahsiddha Sarkar
Frontier | 18 August , 2016
Globalization, a buzzword, has been variously interpreted and analysed. In its most widest and comprehensive manifestation globalization is understood primarily as an economic process that gradually absorbs the other domains of life like politics, culture, ethics, and morality. As an economic process it advocates the absorption of some policy measures which will revamp the economy of a national society in tune with the terms of global trade and market relations. The policy measures are aimed at opening up of a national economy so that the free flow of capital, technology, goods and services, and labour across national boards could be ensured. Viewed as such globalization thus contributing towards lengthening of connections between places in ‘a novel way’ which were otherwise afar and making the world becoming more deeply interconnected through the churnings of – what has been called as – ‘living globally’. The turning of a rather economic process into cultural, social and political one depends upon several key factors and forces. These factors and forces – culminating in a new market mantra – are actualized through several agencies like Trans-national Corporations (TNCs), Information and Communication Technology (ICT), and the International Non-Governmental Organizations (INGOs).Read More »
by S G Vombatkere
Frontier | Vol. 49, No.2, Jul 17 – 23, 2016
This agenda of economic growth has become the focus of economic thinking and is institutionalized in countries across the globe with impetus imparted by the economic clout of IMF-WB-WTO. The reason that this was accepted by countries across the globe is that it admirably suited the elite politician-corporate nexus which governs all countries, including democracies.
Neoliberalism is personal (corporations are legal persons) profit-at-any-cost from capital-intensive economic growth, reckoned using economic parameters like GDP growth and per capita consumption. This model of economic development promotes debt, global trade and consumerism, subordinating or negating democracy, equity, social justice and freedom. Indeed, Kofi Annan, UN Secretary General, speaking at the World Summit on Sustainable Development in Johannesburg (2002), said: “Let us face an uncomfortable truth. The model of development that we are accustomed to has been fruitful for a few and flawed for many. A path to prosperity that ravages the environment and leaves a majority of humankind behind in squalor will soon prove to be a dead-end road for everyone”.Read More »
20 July, 2016
WASHINGTON – A United Nations global development summit begins its fourth day of difficult negotiations in Nairobi, Kenya. The member countries of the UN Conference on Trade and Development (UNCTAD) define the institution’s purpose and economic and development focuses every four years. The more than 10,000 attendees include UN Secretary General Ban Ki-moon, the Vatican’s Cardinal Peter Turkson, heads of state and finance ministers. As delegates tire of round the clock negotiations, less than 48 hours remain to reach a deal that renews the UN agency’s mandate.Read More »