The biggest lesson we may learn from the current global economic crisis is that mainstream economic theories that have guided thinking for the last four or so decades have serious flaws. In sum these theories advocated the idea that things should be left to the markets and, the market via, the “invisible hand” would ensures that gains from trade and investment liberalization would “trickle down” to society. However, significant evidence, which had largely been ignored before, suggest that there was inadequate trickle down and, in some cases, there was “trickle up”, that is, resources flowing from the poor to the rich.
Archive for the ‘Labour and trade’ Category
Tracing the Root Causes of the Economic Crisis: Labour and Trade
Friday, April 10th, 2009Migration & Development: Tackling the Impact of the Financial Crisis
Thursday, March 26th, 2009The international financial crisis has affected migrants and remittance receivers worldwide. The loss of jobs in large economies, such as the United States, has led migrants to reduce the remittances they send to their families. The World Bank’s prediction for 2008 was a decline in remittances of 4.4% to Mexico, India and China, the top receivers of remittances in the world. Many low income countries may not be in a position to assist families that counted on the remittances for their basic needs. Governments may need to review their policies or implement new ones to fill this gap. The economic crisis may encourage or force migrants to return home. Despite the fact that government action is fundamental to deal with the economic crisis, collective efforts from different stakeholders, including diasporas, is highly recommended.
