Addressing systemic issues

Abstract

This note provides an overview of interrelated systemic issues in the global economy and their impact on promoting developmental goals at the national and international levels. Decades of global deregulation of financial, labour, product and service markets have led to increasing global financial instability and international competition patterns that have substantively strengthened corporate market and political powers vis-à-vis national Governments and deepened global income inequalities. As a result, large global imbalances have built up in the global economy that are inimical to developmental interests, through worsening balance-of-payment constraints, increasing external debt burdens and reduced national policy space. This has become starkly obvious in the context of the coronavirus disease (COVID-19) pandemic.