The Guardian view on globalisation’s discontent: it’s not right for poor countries to fund the rich | Editorial
Wealthy nations exploit their position as the world’s bankers to siphon off hundreds of billions from the needy
Developing nations have long complained that globalisation has enthroned western currencies in such a way as to subsidise living standards in the rich world. Last year, Brazil, Russia, India, China and South Africa – the Brics – even talked of an alternative common currency to replace the dollar. Wealthy countries, perhaps, think that their ambitious goals for aid defuse arguments over their “exorbitant privilege”.
As TS Eliot put it, “between the idea and the reality … falls the shadow”. A paper out last week calculates that the bottom four-fifths of humanity finance the richest fifth to the tune of $660bn a year. The reason, say Gastón Nievas and Alice Sodano of the Paris School of Economics, is that wealthy countries have become the world’s bankers, able to squeeze debtors. Poor nations borrow in rich-world currencies because they run deficits in energy and food, while exporting low-value goods relative to their imports. Markets are liberalised in poor countries and profits flow to the global north.
Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here.
Continue reading...Date: |
Filter
-
Inside the closets of the ultra-rich
Watch islands, beauty pantries and magic mirrors — dressing rooms have become more than just a place to keep one’s clothesFinancial Times - World -
The rise of Sweden's super rich
Why the Nordic nation, despite its reputation for social equality, has so many billionaires.BBC News - Top stories -
Societe Generale Shares Climb on Above-Forecast First Quarter
Societe Generale’s results were better than expected at the revenue and underlying profit levels and showed early recovery signs in French retail banking, analysts said.The Wall Street Journal - World -
Give This Rich Dude $1 or The Onion Disappears Forever
Entrepreneur Jeff Lawson’s plan to revive venerable satirical outlet The Onion involves borrowing from the playbook of the founders of WhatsApp.Wired - Tech -
Americans' views divided on US policy toward Israel-Hamas war: POLL
More Americans trust former President Donald Trump than President Joe Biden to handle the Israel-Hamas war, though few call it critical in their choice of a candidate.ABC News - Top stories - Israel -
Denmark increases defense spending in view of Russian long-term war
Yahoo News - World - Russia -
‘There’s never a last opportunity:’ relative of Hamas captive offers view on hostage negotiations
Moshe Lavi, brother-in-law of Hamas captive Omri Miran, joins Meet the Press NOW to discuss his family's situation as negotiations continue to free the hostages held in GazaNBC News - Politics -
Warren Buffett’s shopping extravaganza kicks off with Squishmallows pit, 'Poor Charlie’s Almanack'
The Oracle of Omaha's annual event kicked off with wares from See's Candies to the latest Squishmallows of Warren Buffett and Charlie Munger.CNBC - Business -
John Rich says he'll perform at UNC frat's 'rager'
Country music artist John Rich said he is willing to play at a “rager” for members of a fraternity at the University of North Carolina at Chapel Hill. “I reached out and I said, ‘Boys, I sure am proud of you. When you have that big rager you guys ...The Hill - Politics -
Super-rich spending up to $500,000 on exclusive Paris Olympics packages
Third-party hospitality packages are outlawed, yet agency part-owned by associates of Rafael Nadal and LeBron James promises access to top events as well as to stars. Members of the global super-rich are spending as much as $500,000 (£400,000) on ...The Guardian - World - Olympics
More from The Guardian
-
Israel shuts down local Al Jazeera offices in ‘dark day for the media’
Foreign Press Association decries move under new law based on claim network is a threat to national security . Israeli authorities shut down the local offices of Al Jazeera on Sunday, hours after a government vote to use new laws to close the ...The Guardian - World - Israel -
Xi Jinping arrives in France with Ukraine and an EU trade row at the top of his agenda
On his first visit to Europe since 2019, Xi is set to meet with Emmanuel Macron before heading to Serbia and Hungary. President Xi Jinping has lauded China’s ties with France as a model for the international community, as he arrived in Paris for a ...The Guardian - World - Ukraine -
Missing surfers died from gunshots after attempted robbery, Mexican officials say
Families of two Australians and American who went missing in Baja California have identified the bodies, officials say. Mexican authorities have identified the three dead bodies found in a well in Mexico as Australian brothers Callum and Jake ...The Guardian - World -
Flooding death toll in south Brazil rises to 75 as over 100 people remain missing
Officials in Rio Grande do Sul state say more than 80,000 have been displaced by record water levels. Seventy-five people are now known to have died in the flooding in Brazil’s southern Rio Grande do Sul state, while more than 100 people remain ...The Guardian - World - Brazil -
Eurovision winner Jamala says Ukraine ‘cannot afford’ to boycott contest
Singer says her country needs the opportunity to remind Europe of Russia’s invasion. Ukraine’s former Eurovision winner Jamala has said her country “cannot afford” to boycott the song contest because it needs the opportunity to remind Europe of ...The Guardian - World - Ukraine