What's So Dangerous About Austerity?

An interview with Mark Blyth, Triple Crisis blogger and author of Austerity: The History of a Dangerous Idea,  conducted by author and journalist C.J. Polychroniou, republished with permission from Truthout.

Austerity: The History of a Dangerous Idea, a book written by Brown University Professor of International Political Economy Mark Blyth and published last year by Oxford University Press, is one of the most important works to have emerged in recent years on the religion of austerity, the new dogma in neoliberal economics that is so perniciously enforced today in the peripheral countries of the Eurozone (Greece, Italy, Ireland, Portugal, and Spain) and loved by Republicans and all sorts of right-wingers in the United States. In his book, Blyth exposes how dangerous the policy of austerity has been in the past and explains why it resurfaced in the aftermath of the 2008 global financial crisis. With his critical analysis of austerity, Professor Blythe also provides a damning critique of orthodox economics and shows that class politics is very much alive in the actions of today’s governments and the rich.

Recently, Mark Blyth was interviewed by C. J. Polychroniou for Truthout (a shorter version of the interview appears simultaneously in Greek in Sunday’s edition of Eleftherotypia). They discussed why austerity is a dangerous idea and why it came to be seen as the only viable way out of the latest global financial crisis, with Professor Mark Blyth exposing the myth of Greece as a nation of lazy people and other propaganda, while showing who benefits from austerity.

Read the rest of this entry »

What’s So Dangerous About Austerity?

An interview with Mark Blyth, Triple Crisis blogger and author of Austerity: The History of a Dangerous Idea,  conducted by author and journalist C.J. Polychroniou, republished with permission from Truthout.

Austerity: The History of a Dangerous Idea, a book written by Brown University Professor of International Political Economy Mark Blyth and published last year by Oxford University Press, is one of the most important works to have emerged in recent years on the religion of austerity, the new dogma in neoliberal economics that is so perniciously enforced today in the peripheral countries of the Eurozone (Greece, Italy, Ireland, Portugal, and Spain) and loved by Republicans and all sorts of right-wingers in the United States. In his book, Blyth exposes how dangerous the policy of austerity has been in the past and explains why it resurfaced in the aftermath of the 2008 global financial crisis. With his critical analysis of austerity, Professor Blythe also provides a damning critique of orthodox economics and shows that class politics is very much alive in the actions of today’s governments and the rich.

Recently, Mark Blyth was interviewed by C. J. Polychroniou for Truthout (a shorter version of the interview appears simultaneously in Greek in Sunday’s edition of Eleftherotypia). They discussed why austerity is a dangerous idea and why it came to be seen as the only viable way out of the latest global financial crisis, with Professor Mark Blyth exposing the myth of Greece as a nation of lazy people and other propaganda, while showing who benefits from austerity.

Read the rest of this entry »

China-Latin America Economic Bulletin

Jill Richardson, Guest Blogger

This post is a summary of the inaugural China-Latin America Economic Bulletin, from the Global Economic Governance Initiative (GEGI) at Boston University. Triple Crisis contributors Kevin Gallagher and Cornel Ban are the co-directors of GEGI.

As 2013 drew to a close, Boston University’s Global Economic Governance Initiative inaugurated its annual China-Latin America Economic Bulletin. The Bulletin is intended as a go-to source for analyzing and synthesizing trends within the burgeoning China-LAC [Latin America and Caribbean] relationship. It can be a significant challenge to come by reliable data detailing this trade and investment relationship. By providing concrete figures and data, the Economic Bulletin helps to fill in these gaps as well as provide an evidence-based understanding of trends and developments in the increasingly important China-LAC connection.

Many of the key findings of the 2013 Economic Bulletin involve the evolving nature of China-LAC trade. As a whole, LAC exports to China have risen massively since 2000, averaging a 23 percent annual export growth rate. This relatively rosy picture obscures the fact that in recent years this rate has dropped precipitously, slowing to just 7.2 percent growth in 2012. Much of this slowdown can be attributed to falling commodity prices. Despite LAC exports to China growing in volume, price volatility has allowed for stagnant, or even declining, export values.

Read the rest of this entry »

Global Dollar-Based Financial Fragility in the 2000s, Part 3

This is the third in a four-part series excerpted from the Political Economy Research Institute (University of Massachusetts-Amherst) working paper “The Endogenous Finance of Global Dollar-Based Financial Fragility in the 2000s: A Minskian Approach,” by Junji Tokunaga and Gerald Epstein. Tokunaga is an Associate Professor in the Department of Economics and Management, Wako University, Tokyo. Gerald Epstein is a Professor in the Department of Economics, University of Massachusetts-Amherst, and Co-Director of the Political Economy Research Institute (PERI). See Part 1, Part 2, and the full paper.

Read the rest of this entry »

Governments and Activists are Fighting the Corporate "Right" to Sue Governments

Robin Broad

This post is drawn from a new article regular TCB contributor Robin Broad wrote with John Cavanagh, “A Strategic Fight Against Corporate Rule,” The Nation, February 3, 2014.

Over the past several decades, multinational corporate Goliaths have helped to write and rewrite hundreds of rules skewing tax, trade, investment and other policies in their favor. The extraordinary damage these policies have caused has become increasingly apparent to the communities and governments most directly affected by them. This, in turn, has strengthened the potential of a movement that’s emerging to try to reverse the momentum. But just like David with his slingshot, the local, environmental and government leaders seeking to revise rules to favor communities and the planet must pick their battles carefully.

We have come to believe strongly that one of the most promising of these battles takes aim at an egregious set of agreements that allow corporations to sue national governments. Until three decades ago, governments could pass laws to protect consumers, workers, health, the environment and domestic firms with little threat of outside legal challenge from corporations. All that changed when corporations started acquiring the “right” to sue governments over actions—including public-interest regulations—that reduce the value of their investments. These rights first appeared in little-known bilateral investment treaties. Twenty years ago, corporate lawyers embedded them in the North American Free Trade Agreement (NAFTA). Today, more than 3,000 trade and investment agreements and even some national investment laws grant foreign investors these powers.

The Obama administration is attempting to insert similar anti-democratic investor protections in new trade and investment agreements with countries that border the Pacific and with the European Union. Hoping to expedite the so-called Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), in early 2014, U.S. congressional leaders introduced fast-track trade promotion legislation that would severely limit Congress’s ability to amend such agreements. The widely anticipated move set off a storm of protest from unions, environmentalists, liberal members of Congress and others, and will likely remain a high-profile fight in the United States in the coming months.

Read the rest of this entry »

Governments and Activists are Fighting the Corporate “Right” to Sue Governments

Robin Broad

This post is drawn from a new article regular TCB contributor Robin Broad wrote with John Cavanagh, “A Strategic Fight Against Corporate Rule,” The Nation, February 3, 2014.

Over the past several decades, multinational corporate Goliaths have helped to write and rewrite hundreds of rules skewing tax, trade, investment and other policies in their favor. The extraordinary damage these policies have caused has become increasingly apparent to the communities and governments most directly affected by them. This, in turn, has strengthened the potential of a movement that’s emerging to try to reverse the momentum. But just like David with his slingshot, the local, environmental and government leaders seeking to revise rules to favor communities and the planet must pick their battles carefully.

We have come to believe strongly that one of the most promising of these battles takes aim at an egregious set of agreements that allow corporations to sue national governments. Until three decades ago, governments could pass laws to protect consumers, workers, health, the environment and domestic firms with little threat of outside legal challenge from corporations. All that changed when corporations started acquiring the “right” to sue governments over actions—including public-interest regulations—that reduce the value of their investments. These rights first appeared in little-known bilateral investment treaties. Twenty years ago, corporate lawyers embedded them in the North American Free Trade Agreement (NAFTA). Today, more than 3,000 trade and investment agreements and even some national investment laws grant foreign investors these powers.

The Obama administration is attempting to insert similar anti-democratic investor protections in new trade and investment agreements with countries that border the Pacific and with the European Union. Hoping to expedite the so-called Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), in early 2014, U.S. congressional leaders introduced fast-track trade promotion legislation that would severely limit Congress’s ability to amend such agreements. The widely anticipated move set off a storm of protest from unions, environmentalists, liberal members of Congress and others, and will likely remain a high-profile fight in the United States in the coming months.

Read the rest of this entry »

Most African Leaders Not Making Promised Investments in Agriculture

Timothy A. Wise

Cross posted from Global Post.

ADDIS ABABA, Ethiopia — The African Union commemorated the 10-year anniversary of the Maputo Declaration on agricultural development with the launch of the “Year of Agriculture and Food Security” last week at its summit in Addis Ababa.

Around the summit, following discussions of the political and humanitarian crises in South Sudan and the Central African Republic, I heard the talk turn to agriculture. And African governments certainly have a lot to talk about.

Since Maputo, which mandated that African governments commit to spending at least 10 percent of their budgets on agriculture by 2015, 20 nations have pledged to do so under the rubric of the Comprehensive African Agricultural Development Program (CAADP). Agricultural spending has doubled across the continent, a notable achievement that has shown solid results in increased food production and economic growth for those countries that have fully invested in the sector.

But there is a long way to go. According to a new report from the nonprofit ActionAid, most governments are not “walking the talk” – they are failing to live up to their CAADP commitments.

Read the rest of this entry »