by Bhumika Muchhala, Third World Network June 15, 2010, New York
Development-oriented macroeconomic policies, debt mechanisms and innovative financing measures are critical to achieve the SDGs of the United Nations
In the last few years, as the world economy has experienced both a financial and an economic crisis of magnitude proportions, the predominant arrangements and assumptions of the model for economic development and global finance has also come into a fundamental crisis of its own. As the shock waves of the global financial crisis rippled over the developed world, painful repercussions were generated for developing countries, which are still reeling from the deep contraction in world demand and the consequent decreases in export earnings, FDI and private capital flows, and remittances, despite news headlines and official reports that say the world is now in a ‘post‐crisis mode.’ These effects not only exacerbate the already existing challenges in achieving the MDGs, but also point to systemic flaws and gaps in the economic development model pursued by most developing countries, such as macroeconomic policies, debt measures and financial liberalization.
A central challenge in creating this basis is not the lack of explicitly economic goals in the SDG framework, but rather the challenge of formulating a policy strategy, in the context of an imbalanced global financial and trade system, that would back up the human‐development ambitions of the SDG framework.
Read full paper >>>
.....................................................................................................................................................