Showing category "Political Economy" (Show all posts)

IMF Reforming?

Posted by Nicholas Dietrich on Wednesday, June 22, 2011, In : Political Economy

On June 8, 2011 the Department of Economic Affairs of the African Union officially stated that the departure of Mr. Dominique Strauss-Kahn from his position at the helm of the International Monetary Fund (IMF), presented “a prime opportunity for the IMF and developed countries to deliver on their commitment to implement major reforms … including those relating to governance” (African Union, 2011: 1). The statement reflects the ongoing discontent amongst member states regarding the legit...

Is income inequality necessary for or does it undermine economic growth?

Posted by on Friday, May 27, 2011, In : Political Economy

The contemporary global economy is characterised by great income inequalities that exists through the current liberal economic paradox. There are developing nations experiencing high levels of economic growth, but still have great income divisions. Some have argued that income inequality and economic growth go hand in hand, while others have argued that income inequality has to be addressed as it hinders the full potential of economic growth.

According to Nel (2003:614) inequality refer...

What are structural adjustment programmes and why are they so controversial?

Posted by Trevor Kana on Friday, May 13, 2011, In : Political Economy

Structural adjustment programmes (SAP) are a product of International Financial Institutions (IFIs). These IFIs or Bretton Woods Institutions, as they famously known, are the International Monetary Fund (IMF) and the World Bank (Levin Institute, 2009:3). According to the Levin Institute (2009:8), the overall purpose of the IFIs was to push neo-liberal policies called the “Washington Consensus.” The Consensus had ten core points (Levin Institute, 2009:8): fiscal discipline, redirection ...