Pakistan’s Financial Crisis Puts China’s Belt and Road on the Spot

Pakistan’s Financial Crisis Puts China’s Belt and Road on the Spot

Increased Pakistani dependence on China to help it avert resorting to the International Monetary Fund (IMF) to avoid a financial and economic crisis spotlights fears that the terms of Chinese investment in massive Belt and Road-related projects would not pass international muster. Concerns that China’s US$ 50 billion plus investment in Pakistani infrastructure and energy,…

The Arab World and the Struggle Against Austerity

The Arab World and the Struggle Against Austerity

For five days, Jordanians took to the streets to protests measures by the government to increase taxes. Demonstrators also demanded access and improvements to city services, the lack of which compounds the high rate of unemployment to which Jordan’s population is subjected. In the largest protests the country has seen since 2011, Jordanians unseated prime…

How Jordan Brought Its Economic Woes on Itself

How Jordan Brought Its Economic Woes on Itself

As protests continue in Jordan, the kingdom has put the blame for the economy’s lacklustre performance and controversial tax reforms on IMF-backed austerity measures and a drop in foreign aid. But in reality, say analysts, the economy has been badly managed for decades, while significant amounts of government spending remain undisclosed. ‘The problems were there…

How China Became the World’s Number One International Financial Donor

How China Became the World’s Number One International Financial Donor

At the spring meeting of the International Monetary Fund (IMF) and the World Bank (WB), the head of the US Treasury Department, Steven Mnuchin, touched upon a delicate subject: the financing of IMF and WB members by China and several other developing countries. He called these countries “non-transparent creditors” that do not coordinate their operations with…

Monetary Imperialism

Monetary Imperialism

In theory, the global financial system is supposed to help every country gain. Mainstream teaching of international finance, trade and “foreign aid” (defined simply as any government credit) depicts an almost utopian system uplifting all countries, not stripping their assets and imposing austerity. The reality since World War I is that the United States has…