Thread by @GiladIsaacs

1/ Thoughts on @UNCTAD #TDR 2019, Financing a Global #GND.

THREAD for @IEJ_SA (page numbers of quoted sections in brackets, words in CAPS are headings.)

https://twitter.com/GiladIsaacs/status/1176491919326793728

@UNCTAD @IEJ_SA 2/ Finance nerds amongst us will be pleased with the report. However, climate issues could feature more strongly throughout. Still, an excellent summary and useful political tool.

CC: @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves 3/ Finance needed for a GND is immense. Rapid decarbonisation requires additional investment of 1-2% of GDP for decades (of course, costs much higher). The report = detailed discussion of what a developmentally orientated financial architecture looks like.

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves 4/ ANALYSIS: Financialisation, neoliberalism and fantasies of equitable market-led development are what has gotten us into this mess (p.45,29-30,32).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves 5/ Problems we face are interconnected (p.25).

CC: @bhbradlow

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow 6/ STATE-LED INVESTMENT: Relying on pvt sector finance to save us is a bad idea. Blended finance, PPPs, private ownership are part of the problem and = public sector “de-risking” and subsidising pvt profits. (p.iv,32)
cc: @Mskaydee @DanielaGabor @SDG2030

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 7/ We must recentre the role of the state and push the transformative potential of state-led processes (p.46).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 8/ International coordination is crucial. An internationalist approach must also centre issues of global equity (p.46,48,55).
Cc: @adam_tooze @jasonhickel @BrankoMilan @ranacelal

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal 9/ The falling labour share and rising inequality is unsustainable.
Cc: @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen 10/ Austerity is hurting not helping. Fiscal expansionism is vital. This must be targeted at sectors with highest multipliers.
CC: @nssylla @social_rights @IEJ_SA @budgetjusticesa @WomensBudgetGrp @IPPR

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR 11/ Industrial policy and state-led investment are crucial. This must be linked to appropriate fin sector policy [often under emphasised within existing industrial policy frameworks.]
CC: @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi 12/ Investment in greener energy production is critical to avoid climate breakdown and has the potential to yield multiple other benefits, e.g. (local-level) employment (p.60,52).
CC: @ilo @Numsa_Media @COPAC_SA @DoctorVive @bhbradlow

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @DoctorVive 13/ This combination – increasing the labour share, fiscal expansionism, green investment, international coordination – are modelled to show significant benefits (p.63).

CC: @SOASEconomics

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA 14/ DEBT: Current patterns of credit allocation are dysfunctional.

CC: @DanielaGabor @anninak82 @AnnPettifor @ChangeFinance_ @BBonizzi @Powell_J_R @ingridharvold @cacrisalves @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @IEfinanceHRs @JWMason1 @its_mccarthy

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood 15/ Developing countries face particularly challenging conditions, circumstances created beyond their control. Response needed. (p.72-3).

Cc: @anninak82 @BBonizzi @Powell_J_R @JoMicheII @susanamynewman @B_Eichengreen @JosephEStiglitz @EwaKarwowski @Jayati1609

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @B_Eichengreen @JosephEStiglitz @EwaKarwowski @Jayati1609 16/ Current debt trends see pp. 74-83. The scale of investment needed to meet SDGs cannot be debt-financed. Therefore: reduce external vulnerabilities, break dollar hegemony, manage credit creation (p.90,92),

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @B_Eichengreen @JosephEStiglitz @EwaKarwowski @Jayati1609 17/ debt relief through meeting ODA targets, strengthen regional monetary cooperation, fair procedures for sovereign debt resolution (p.96,97,100).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman 18/ MAKE PVT CAPITAL WORK: Private capital is not panacea but should do more. IFFs must be halted and a global minimum effective corporate income tax rate implement (108,111).

CC: @TaxJusticeNet @TheTaxcast @ICTDTax @OECDtax @TaxJusticeAfric @budgetjusticesa @IEfinanceHRs

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet 19/ Tax digital economic transactions (VAT and corporate tax). Potential income for developing countries: $11 - $28 billion. (p.112,115).

CC: @IEJ_SA @anticorruption @illicit @amazon @social_rights @amnesty

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet @anticorruption @illicit 20/ Nature of financial integration is key, look at gross capital flows and negative net gains for developing countries. (p.117,120,124)

CC: @BBonizzi @JosephEStiglitz @rodrikdani @Jayati1609

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet @anticorruption @illicit @JosephEStiglitz @rodrikdani @Jayati1609 21/ Capital controls have a role to play (p.125).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet @anticorruption @illicit @JosephEStiglitz @rodrikdani @Jayati1609 22/ Capital controls have a role to play (cont.) (p.128-9).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet @anticorruption @illicit @JosephEStiglitz @rodrikdani @Jayati1609 23/ MAKING BANKS WORK FOR DEV: A growing trend but more is needed. (p.143)

Cc: @natalyanaqvi

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @TaxJusticeNet @anticorruption @illicit @JosephEStiglitz @rodrikdani @Jayati1609 24/ Challenges for public banks. (p.148-9)

@AfDB_Group

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman 25/ Central banks can and should do more, including in “going green”. (p.30,153-4)

CC: @DanielaGabor @EveForster @KateAronoff @SAReserveBank @federalreserve @ecb @bankofengland

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @EveForster @KateAronoff @SAReserveBank @federalreserve @ecb @bankofengland 26/ National public banks, including national development banks have a critical role to play (p.157,160)

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @plbds @Frances_Coppola @graceblakeley @AHAkramLodhi @DougHenwood @JoMicheII @susanamynewman @EveForster @KateAronoff @SAReserveBank @federalreserve @ecb @bankofengland 27/ What developing countries can do now (I’m running out of steam, sorry) (p.165-166).

@UNCTAD

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold 28/ CONCLUSION: Rolling back financialisation and averting climate breakdown go hand in hand (p.33).

Cc: @graceblakeley @DoctorVive @JasonPremo @JoMicheII @JWMason1 @UNCTAD @adam_tooze @jasonhickel @its_mccarthy @ProfSteveKeen @GretaThunberg @ClimateDesk @IPCC_CH @NaomiAKlein

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @graceblakeley @DoctorVive @JoMicheII @its_mccarthy @GretaThunberg @ClimateDesk @IPCC_CH @NaomiAKlein 29/ Finance must be tamed, to be the servant not the master (p. 53).

@UNCTAD @IEJ_SA @DanielaGabor @anninak82 @AnnPettifor @JWMason1 @BBonizzi @Powell_J_R @JasonPremo @cacrisalves @bhbradlow @Mskaydee @SDG2030 @adam_tooze @jasonhickel @BrankoMilan @ranacelal @ilo @PikettyLeMonde @LSEInequalities @Wits_SCIS @JimboStanford @ProfSteveKeen @nssylla @social_rights @budgetjusticesa @WomensBudgetGrp @IPPR @NimrodZalk @NeilColemanSA @sjwrenlewis @natalyanaqvi @Numsa_Media @COPAC_SA @ChangeFinance_ @ingridharvold @graceblakeley @DoctorVive @JoMicheII @its_mccarthy @GretaThunberg @ClimateDesk @IPCC_CH @NaomiAKlein 30/ The report is not perfect. Would have liked environment to feature throughout, some disaggregated analysis, e.g. especially around gender impact, and other quibbles. But it is a very useful, tight and coherent summary of dysfunction of contemporary finance and some ways out.