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Discussion note on the triple crisis

The current global crisis is so severe and encompasses so many areas – finance, climate, food, energy – that countries have been forced, willy-nilly, to coordinate with each other. The question is who has benefited from such coordination? What about the most vulnerable, especially those countries that already faced severe fiscal constraints even before these converging crises? How much have they been helped by the collective actions taken? Sadly, the responses thus far at the international level point to the existence of double standards in all key policy areas – fiscal policy, trade policy, and monetary / liquidity policy. One global inequality is the fiscal stimulus available to developed countries while developing countries face fiscal constraints and are often advised by creditor institutions and aid-giving countries, to use fiscal discipline and keep low budget deficits. In the area of international trade, developed countries have been able to subsidize industries that are…