Racism and Recession in Europe

Jayati Ghosh

Of the many undesirable effects of the ongoing – and increasingly policy-induced – recession in Europe, one has received relatively less public attention: the resurgence of racist and xenophobic attitudes. This was already something of a problem especially in western Europe in the past decade when rightwing political forces demanded major restrictions on immigration and sporadic episodes of violence broke out against migrant and Roma groups.

As the economic crisis bites deeper and as the “austerity measures” enforced by governments cause more unemployment and more failure of small family-run businesses, bitterness and anger among the population will inevitably grow. The danger is that it will be directed not at powerful financial or even against governments that seem to bend like willows to every dictate of the market, but against more vulnerable targets that can be more easily attacked. The most obvious targets, of course, are the migrants, who often stand out also because of their perceived racial differences.

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The Global Financial Crisis: Other issues to watch

Ilene Grabel

Over the last many months, TripleCrisis bloggers and readers have written about many dimensions of the crisis. I would like to raise here several issues that warrant attention by progressive observers of the crisis.

1) The credit rating agencies and Polanyi rise again in Mediterranean Europe

We are now seeing that the government in Spain is trying to get ahead of a Greek-like fate by imposing its own extremely severe austerity measures that involve myriad types of budget cuts and recasting of its (inflexible) labor laws. Certainly the situation in Greece (and the protracted negotiations over its bailout) gave these moves particular impetus. But so did the downgrade of Spain by the credit rating firms.

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Help Us Evaluate the Triple Crisis Blog

To mark our first four months, the Triple Crisis Blog wants to take stock of how we’re doing.  And we want your feedback: how do you like the blog, and why do you keep reading?  How well have we tied together the crises in finance, development and environment?  Are there issues we’ve missed?

Please feel free to provide your feedback in the form of comments to this post.

And thanks!

Triple Crisis Blog

Gulf Oil Spill: America's Chernobyl

Alejandro Nadal

The Deepwater Horizon disaster has the familiar ingredients of deregulation, deception, and destruction that characterize the relations between governments and multinational corporations. It was a man-made disaster, like Chernobyl. And like the global financial crisis, it all started with the explosion of a bubble, this time of methane gas.

The Wages of Deregulation

In 2008 the Bush-Cheney duo lifted the executive order banning offshore drilling, and the House of Representatives agreed to let a 26-year-old moratorium on offshore drilling expire. Deregulation was moving full speed ahead.

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Gulf Oil Spill: America’s Chernobyl

Alejandro Nadal

The Deepwater Horizon disaster has the familiar ingredients of deregulation, deception, and destruction that characterize the relations between governments and multinational corporations. It was a man-made disaster, like Chernobyl. And like the global financial crisis, it all started with the explosion of a bubble, this time of methane gas.

The Wages of Deregulation

In 2008 the Bush-Cheney duo lifted the executive order banning offshore drilling, and the House of Representatives agreed to let a 26-year-old moratorium on offshore drilling expire. Deregulation was moving full speed ahead.

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U.S. Financial Reform: The roots of the problem go deeper

Robert Wade, guest blogger

What should we make of the financial reform laid out in the Congress’ bill? The approach is based on the assumption that the financial system is basically sound but needs “more government” in the form of more regulation — as distinct from structural change (for example, to downsize very large banks or to separate deposit-taking banks from investment banks). The Democrat who shepherded the legislation through the Senate, Christopher Dodd, said that improving regulation made more sense than restraining an industry that was critical to the American economy and that faced fierce competition from foreign banks which would not be placed under similar restrictions.

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The Greek Tragedy and the Political Roots of Fiscal Crisis

Sanjay G. Reddy

The economic crisis in Greece, which has roiled all of Europe, has been presented by the mainstream media as arising from the mismanagement of economic resources.  In fact, the real roots of the crisis and others like it are in the malfunctioning of political institutions.

Politics, according to the famous formulation of Harold Lasswell, is about who gets what, when and how.  Although all political institutions produce an answer to these questions, well-functioning ones must produce answers that are, at a minimum, not manifestly irrational (for instance, in the sense that they are worse for nearly everyone than those which some alternative would have brought about) nor manifestly unjust  (for instance, in the sense that they systematically favor the already advantaged over the already disadvantaged).  However, many political institutions fail to satisfy one or both of these criteria.

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The IMF's mid-life crisis

Ilene Grabel

Many Triple Crisis bloggers have been examining the effects of the global financial crisis on decision makers at the IMF, particularly as concerns the policy space of developing countries. In these two interviews, Triple Crisis blogger Ilene Grabel considers the effect of the crisis on the economics profession and, in particular, on the policy advice proffered to developing countries by the IMF during the current financial crisis. Ilene focuses on whether the crisis has created more space for developing countries to implement capital controls, and she also discusses the draft proposals for taxing the financial sector that the IMF has presented to the G20 for consideration at its June meeting in Toronto.