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Neoliberal Finance Poor Countries' Recovery Undermined


Neoliberal Finance Poor Countries Recovery Undermined
The New Nation
Inter Press Service:
After being undermined by decades of financial liberalisation, developing countries now are not only victims of vaccine imperialism, but also cannot count on much financial support as their COVID-19 recessions drag on due to global vaccine apartheid.
Developing countries have long been pressured to liberalise finance by the International Monetary Fund (IMF) and the World Bank. The international financial institutions claimed this would bring net capital inflows. This was supposed to reduce foreign exchange constraints to accelerating growth, creating a rosy scenario, indeed .
Globalisation s claim naively expects more birds to fly into, rather than out of an open birdcage . Instead, financial globalisation meant net capital flows from capital-poor developing countries to capital-rich developed countries, i.e., dubbed the Lucas paradox . A decade later, ....

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Prioritise Pandemic Relief, Recovery: No Time for Debt Buybacks


SYDNEY and KUALA LUMPUR, Mar 9 2021 (IPS) - Developing country governments are being wrongly advised to use their modest fiscal resources to pay down accumulated debt instead of strengthening pandemic relief and recovery. Thus, debt phobia risks deepening and extending COVID-19 recessions by prioritising buybacks.
Anis Chowdhury
Pandemic debt mounting
Nearly half (44%) of low-income countries were already debt-distressed or at high risk even before the COVID-19 pandemic was declared in March 2020. Limited fiscal space has constrained developing countries’ relief and recovery measures, making them far more modest than those of developed countries.
Nevertheless, their government debt ratios rose faster in 2020. Many developing countries have taken on more debt, typically on non-concessional terms from private lenders and non-Paris Club members. Public debt in emerging markets has thus surged to levels not seen in over half a century. ....

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