News stories by Jomo Kwame Sundaram, page 30

SYDNEY and KUALA LUMPUR, Jul 16 (IPS) - On 17 June, a Facebook white paper proposed a new global digital currency it plans to launch in the first half of 2020. The Libra will be managed by a ‘not for profit' Swiss-based Facebook-led consortium of ‘for profit corporations', with Uber, eBay, Lyft, Mastercard and PayPal among its founding members.

KUALA LUMPUR, Malaysia, Jul 09 (IPS) - For decades, the two Bretton Woods institutions have rejected the contribution of industrial policy (IP), or government investment and technology promotion efforts, in accelerating and sustaining growth, industrialization and structural transformation.

Finally, two International Monetary Fund (IMF) staff members, Reda Cherif and Fuad Hasanov, have broken the taboo. They embrace industrial policy, arguing against the current conventional wisdom that East Asian industrial policies cannot be successfully emulated by other developing countries.

KUALA LUMPUR and PENANG, Jul 02 (IPS) - The relationship between finance and the real economy is arguably at the root of the contemporary economic malaise. Unlike earlier acceptance of simple linear causation, recent recognition of a curvilinear relationship between finance and economic growth, implying ‘diminishing returns', has important implications.

KUALA LUMPUR, Malaysia, Jun 25 (IPS) - With growing economic conflicts triggered by US President Donald Trump's novel neo-mercantilist approach to overcoming his nation's economic malaises, many voices now argue that bad free trade agreements are better than nothing.

After US withdrawal following Trump's inauguration in early 2017, there is considerable pressure on signatory governments to quickly ratify the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the successor to the TPP.

KUALA LUMPUR and PENANG, Jun 18 (IPS) - Financialization has involved considerable ‘innovation', often of opaque, complex and poorly understood financial instruments. These instruments typically have large debt components involving leveraging, deepening connections across markets and borders.

KUALA LUMPUR and PENANG, Jun 11 (IPS) - The emergence and growth of financialization from the 1980s has been driven by several factors operating at various levels – national and international, ideological and political, and of course, technological. The 1971 collapse of the Bretton Woods (BW) international monetary system arguably paved the way for financial globalization.

PENANG and KUALA LUMPUR, Jun 04 (IPS) - Finance has not stopped at dominating the real economy. The tentacles of finance have reached into significant, if not most parts of society.

Gerald Davis characterises modern society, where finance is dominant, as a ‘portfolio society', in which aspects of social life have been securitized and transformed into a kind of capital or investment to be managed.

KUALA LUMPUR and PENANG, May 28 (IPS) - Over recent decades, the scope, size, concentration, power and even the purpose and role of finance have changed so significantly that a new term, financialization, was coined to name this phenomenon.

Financialization refers to a process that has not only transformed finance itself, but also, the real economy and society. The transformation goes beyond the quantitative to involve qualitative change as finance becomes dominant, instead of serving the needs of the real economy.

KUALA LUMPUR, Malaysia, May 21 (IPS) - After the failure and abuses of privatization became apparent, public-private partnerships have since been promoted ostensibly to mobilize private finance for the public purpose. In all too many cases, PPPs have socialized costs and losses while ensuring private financial gains.After the failure and abuses of privatization and contracting-out services from the 1980s, there has been renewed appreciation for the role of the state or government. Earlier promoters of privatization have taken a step backward, only to take two more forward to instead promote public-private partnerships (PPPs).

KUALA LUMPUR, Malaysia, May 14 (IPS) - In order to make the case for privatizing state-owned enterprises, their real problems were often exaggerated in order to make the case for privatization from the 1980s.

Privatization has not provided the miracle cure for the problems (especially inefficiencies) associated with the public sector. The public interest has rarely been well served by private interests taking over from the public sector. Growing concern over the mixed consequences of privatization has spawned research worldwide.