Centre for Global Development

2008 Global Financial Crisis in a Long-term Perspective: The failure of neo-liberalism and the future of capitalism

Ha-Joon Chang, University of Cambridge; author of ‘Kicking Away the Ladder’

Location: Conference Auditorium 2HaJoonChang

Presented by the Centre for Global Development (CGD) and Applied Institute of Research in Economics (AIRE)

The 2008 global financial crisis has been portrayed as a ‘perfect storm’, which no one could have predicted, by the proponents of free-market, neoliberal capitalism, which has dominated the world in the last three decades. However, even before the crisis, anyone who was interested in knowing had known that not all was well with neo-liberal capitalism – not just in terms of inequality but also in terms of stability and, most importantly, economic growth. The 2008 crisis was only the culmination of the neoliberal failure, at whose heart was the deregulated financial system with excessive complexity and very short time horizon.

Unfortunately, five years after the crisis, few necessary reforms have been made. Financial reforms in the rich countries have been limited and what changes that are to be made are introduced only very slowly. The developing countries are struggling to cope with inflows and outflows of capital, while being increasingly restricted in policy measures that they can use to promote high-productivity sectors.

In this talk, Ha-Joon Chang will discuss what reforms need to be made to the financial system of the rich countries and the global regime for international trade and investment, without which we are destined to repeat the last three decades of low growth, high inequality, and repeated financial crises in the coming years.

** Followed by a wine reception in the Conference Auditorium Galery

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