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1. IMF Social Spending Floors: A fig leaf for austerity?

Author:
Alexandros Kentikelenis and Thomas Stubbs
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The International Monetary Fund has said that it protects spending on education, health and social protection from cuts in its loan programmes through social spending floors. These measures are a welcome step forward, but are they effective? Analysis of all 17 IMF loan programmes (Extended Credit Facilities, or ECFs, and Extended Fund Facilities, or EFFs) for low- and middle-income countries during the first two years of the pandemic shows that these floors are deeply inadequate, inconsistent, opaque and failing. They are little more than a fig leaf for harmful austerity, which is driving inequality, poverty and suffering.
Topic:
Finance, Austerity, IMF, and Social Spending
Political Geography:
Global Focus

2. Lessons for the Age of Consequences: COVID-19 and the Macroeconomy

Author:
Servaas Storm
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Based on comparative empirical evidence for 22 major OECD countries, I argue that country differences in cumulative mortality impacts of SARS-CoV-2 are largely caused by: (1) weaknesses in public health competence by country; (2) pre-existing country-wise variations in structural socio-economic and public health vulnerabilities; and (3) the presence of fiscal constraints. The paper argues that these pre-existing conditions, all favorable to the coronavirus, have been created, and amplified, by four decades of neoliberal macroeconomic policies – in particular by (a) the deadly emphasis on fiscal austerity (which diminished public health capacities, damaged public health and deepened inequalities and vulnerabilities); (b) the obsessive belief of macroeconomists in a trade-off between ‘efficiency’ and ‘equity’, which is mostly used to erroneously justify rampant inequality; (c) the complicit endorsement by mainstream macro of the unchecked power over monetary and fiscal policy-making of global finance and the rentier class; and (d) the unhealthy aversion of mainstream macro (and MMT) to raising taxes, which deceives the public about the necessity to raise taxes to counter the excessive liquidity preference of the rentiers and to realign the interests of finance and of the real economy. The paper concludes by outlining a few lessons for a saner macroeconomics.
Topic:
Global Recession, Economic Inequality, Macroeconomics, Austerity, Public Health, COVID-19, Health Crisis, and Public Spending
Political Geography:
Global Focus

3. Public Debt in an Unequal World

Author:
Sandy Brian Hager
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
City Political Economy Research Centre (CITYPERC), University of London
Abstract:
Public debt levels have risen across the advanced capitalist world over the past four decades. Who exactly is purchasing these ever-growing piles of public debt? How do rising levels of public indebtedness relate to growing wealth and inequality? This paper presents some of my own findings, which indicate a rapid concentration in ownership of the US public debt since the early 1980s. Focusing on the Eurozone, the paper then goes on to discuss the difficulties in extending this type of research to other countries. The absence of reliable data on ownership of the public debt reinforces the need for a global registry that tracks the distribution of financial wealth.
Topic:
Debt, Capitalism, Inequality, Austerity, Public Debt, and Ownership
Political Geography:
Global Focus