The planned US border tax would most likely violate WTO rules
By Martin Khor
As the US Congress and President consider whether to introduce a border adjustment tax, a major question is whether such a measure will violate the rules of the World Trade Organization. Experts have good reason to believe the tax in several ways go counter to the WTO. But there are also shortcomings in the WTO system that could limit its usefulness in stopping the US if it is determined enough. A shorter version of this article was published by the IPS. This is the second of a two part series on the US border tax plan. (more…)
Beware of the new US protectionist plan, the border adjustment tax
By Martin Khor
A new protectionist device is being planned in the United States that could devastate the exports of developing countries and cause American and other foreign companies to relocate. The complexities and implications of the proposed border adjustment tax are explained in this article. A version of this article was published by IPS. A second article on this issue will be published soon. (more…)
The failure of exceptional monetary measures pursued in response to the financial crisis in advanced economies to achieve a strong recovery has created a widespread concern that these economies suffer from a chronic demand gap and face the prospect of stagnation. This paper reviews and discusses the alternative views on the causes of the slowdown in accumulation and growth and the policies implemented and proposed to deal with it. (more…)
On the Existence of Systemic Issues and their Policy Implications
Systemic issues are issues that arise from the built-in features of the global system and the impact of the interaction of its parts; as implied in the chapter title in the Monterrey Consensus, it pertains to the coherence and consistency of the monetary, finance and trade systems. Systemic issues point at the weak points in the whole global financial “architecture,” the international structures and mechanisms that are beyond the control of individual countries. Systemic issues are a particular concern to developing countries, which have experienced their greatest development reversals during international payments crises. (more…)
Shocks for developing countries from President Trump’s first days
By Martin Khor
His first days in office indicate that President Donald Trump intends to implement what he promised, with serious consequences for the future of the United Nations, trade, the environment and international cooperation, and developing countries will be most affected. Those who hoped Trump would be more statesman-like in style and middle-of-the-road in policy matters after his inauguration had their illusions dashed when the new United States President moved straight into action to fulfil his election pledges. (more…)
2017 — a thunderous clash of politics, economies and policies
By Martin Khor
Yet another new year has dawned. But 2017 will be a year like no other. There will be a thunderous clash of policies, economies and politics worldwide. We will therefore be on a roller-coaster ride, and we should prepare for it and not only be spectators on the side-lines in danger of being swept away by the waves. (more…)
The Chairman of the South Centre, H.E. Benjamin Mkapa, former President of Tanzania, has sent a letter to the President of Cuba H.E. Raul Castro to extend the Centre’s condolences on the passing away of President Fidel Castro, who was a friend and supporter of the Centre and the South Commission. Below is the letter.
Initial Global Effects of Trump Even Before Taking Office
By Martin Khor
Even before taking office, President-Elect Donald Trump and the policies he promised during his campaign are already having a worldwide impact in at least three areas — global finance, trade and climate change. If his election is described as an earthquake, the aftershocks are now being felt. Global funds are starting to move out of many developing countries, reducing the value of their currencies and causing great economic uncertainty. (more…)
Global debt has jumped alarmingly to US$152 trillion and as capital flows out from developing countries, some facing new debt crises. Debt worldwide has grown to unprecedentedly high levels and has to be brought down to prevent another financial crisis. This was highlighted by the International Monetary Fund at its annual meeting in Washington earlier this month.
Recovering Sovereignty Over Natural Resources: The Cases of Bolivia and Ecuador
This document analyzes the renegotiation process of oil and gas contracts in two Latin American countries, Bolivia and Ecuador, from 2003 to 2010 and the measures taken for sectorial policy reform in the hydrocarbon sector and our conclusions are that it has been favourable. (more…)
The EPA issue has once again re-emerged when Tanzania informed EAC Members and the EU that it would not be able to sign the Economic Partnership Agreement (EPA) between EU and the six EAC Member States in early July. The European Commission reportedly proposed signature of the EAC EPA in Nairobi, on the sidelines of the 14th session of the UN Conference on Trade and Development (UNCTAD XIV). (more…)
