Two prominent features of the current global economy are the world-wide recession brought about by the recent financial crisis, and the emergence of major economic powers from within the developing world such as Brazil, China and India. The former represents the failure of global regulatory policies and macroeconomic imbalances between surplus and deficit countries; the latter is symptomatic of a partial shift in economic power towards developing nations, who are often collectively labelled the global South.
The macroeconomic imbalances are unsustainable in the longer run as they mean greater absorption relative to income in deficit nations; they require corrective action and international policy coordination. Reducing imbalances also requires large developing countries to raise their domestic consumption and also imports from the rest of the world and international financial institutions to operate as a lender of last resort. Furthermore, the engines of global growth, especially for developing countries, may no longer lie solely in the traditional developed country markets in the USA, Europe and Japan, known collectively as the global North. Rather South-South trade is growing rapidly, and that could be an engine of growth for the global economy, including both developed and developing countries. The various chapters in this edited volume address issues surrounding global imbalances and the prospects for growth in developing countries propelled by South-South interaction.
This book should be of interest to students and researchers focussing on political economics, international economics, globalization, global imbalance and the world-wide recession after 2008.
'The global economic landscape is changing at a dazzling pace with the surge of economic giants in the South. The change will be lasting but its implications are yet to be fully understood. This book takes us a long way towards such understanding.' - José Antonio Ocampo, Columbia University, USA.
'This book is an important addition to the literature on how to rebalance the world economy. It provides considerable insight into underlying trends in globalization and the nature of global imbalances and how the new dynamics of adjustment and change in the world economy may be shaped by the shifting balance of power between the north and the south.' - Yilmaz Akyüz, Special Economic Advisor and Chief Economist, South Centre, Switzerland
‘This important set of studies presents a fresh look at Globalization. It takes the perspective of South-South relations in a world of growing economic contrasts, with rapid growth in China, India and much of the South while the North faces austerity and recession. It is all the more impressive as a contribution of the next generation of professionals as well as those who have arrived.’ - Sir Richard Jolly, University of Sussex, UK, and co-director of the UN Intellectual History Project
Part 1: Trends in Globalization 1. Globalization and the South at the Crossroads of Change S. Mansoob Murshed, Pedro Goulart and Leandro A. Serino 2. New Directions for Globalization in Times of Crisis Rob Vos 3. Global Imbalances, Financial Crisis and Globalization Rudiger von Arnim 4. Global Imbalances and the US Crisis: Is a Bad Excuse Really Better than None? Kunibert Raffer 5. Employment in the South Rolph van der Hoeven and Malte Lübker Part 2: Engines of Growth in the South 6. The Asymmetry of North-South Regional Trade Agreements Parthapratim Pal 7. The Multi Fibre Arrangement and South Asia Saibal Kar 8. The Geography of Trade and the Network Effects of Economic Diplomacy in the South Marie-Lise van Veenstra, Mina Yakop and Peter A.G. van Bergeijk 9. Value Chain Responsibility in the Global South Peter Knorringa 10. The Diverse Dynamics of Deindustrialisation Internationally Fiona Tregenna Part 3: Country Case Studies 11. The ‘Dragon’ and the ‘Elephant’ and Global Imbalances Max Spoor 12. Trade Integration After the Great Recession: The Case of Argentina Leandro A. Serino 13. The Macroeconomics of Remittances: The Case of the Philippines Veronica Bayangos and Karel Jansen 14. Regional Integration and South-South Trade Expansion: The Case of Senegal in WAEMU Diadie Diaw and Tran Thi Anh-Dao