Akhilesh Chandra Prabhakar (Universiti Utara Malaysia (UUM), India)

The Current Global Recession

ISBN: 978-1-78635-158-6, eISBN: 978-1-78635-157-9

Publication date: 19 December 2016


Prabhakar, A.C. (2016), "Prelims", The Current Global Recession, Emerald Group Publishing Limited, Leeds, pp. i-xxiii.



Emerald Group Publishing Limited

Copyright © 2017 Emerald Group Publishing Limited

Half Title Page


A Theoretical and Empirical Investigation into Developed and BRICS Economies

Title Page


A Theoretical and Empirical Investigation into Developed and BRICS Economies



Universiti Utara Malaysia (UUM), India

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Group Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2017

Copyright © 2017 Emerald Group Publishing Limited

Reprints and permissions service


No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-78635-158-6


Dedicated to the memory of my father Ram Singh with reverence and affection.

List of Tables

Chapter 1
Table 1.1 World GDP. 22
Chapter 5
Table 5.1 The TRPF in Percentage. 161
Chapter 7
Table 7.1 GDP Growth Estimates and Projections: IMF and World Bank (in Percentage). 205
Table 7.2 World Bank Global Economic Prospects, June 2010 (in Percentage) 206
Table 7.3 Global Outlook for Growth of GDP in Percentage, 1996–2012 (January 2012). 207
Table 7.4 Comparison of Base Scenario with Optimistic and Pessimistic Scenarios, 2012–2025. 209
Table 7.5. Growth of World Output 2007–2015. 216
Table 7.6 Total 474 Banks Collapse in the United States in the Last Five Years, and It Is Continued. 220
Table 7.7 GDP Falling (in Percentage). 221
Chapter 8
Table 8.1 Income Inequality Gap in India (in %). 261
Table 8.2 Rate at which Markets Are Willing to Lend to Governments (in %) for 10 Years 270
Table 8.3 Overview of the World Economic Outlook Projections (Percent Change Unless Noted Otherwise). 283
Chapter 9
Table 9.1 Intra-BRICS Balance (Outflow–Inflow) of FDI in US$ Million. 300
Table 9.2 Bilateral FDI among the Five Countries (January 2003–July 2013 in US$ Million). 301
Table 9.3 Chinese FDI into Other BRICS. 302
Table 9.4 Indian FDI into Other BRICS. 305
Table 9.5 Russian FDI into Other BRICS (in %). 308
Table 9.6 South African FDI into Other BRICS 310
Table 9.7 Brazilian FDI into Other BRICS (in %). 311
Table 9.8 Brazilian Exports to Other BRICS (Primary Commodities and Middle- and Low-Technology Products). 313
Table 9.9 Brazilian Imports to Other BRICS (Primary Commodities and Middle- and Low-Technology Products). 314

List of Figures

Chapter 7
Figure 7.1 Bank Collapse in the United States (2008–2018). 211
Figure 7.2 GDP Falling per Year (in Percentage). In the EU, the GDP ratio is negatively growing with 12% unemployment rate. Unemployment rates in Greece are 52% and Spain are 25%, respectively. 212
Figure 7.3 World GDP (in %). 212
Figure 7.4 GDP of United States, China and India (in %) 213
Figure 7.5 GDP of World, Developed and Developing Countries (in %). 213
Figure 7.6 World Output Growth and World Trade (in %) 214
Figure 7.7 Economic Development (in %). 214
Figure 7.8 BRICS’ Economic Performance in Terms of GDP (in %). 215
Chapter 9
Figure 9.1 GDP Performance of the BRICS 215

List of Abbreviations

DCIT Developing Countries in International Trade
E7 Seven Emerging Economies
EU European Union
EU15 EU Member States before 2004
EU10 EU Member States that Acceded in 2004
EVI Economic Vulnerability Index
GDP Gross Domestic Product
GNI Gross National Income
GNTB Group of Eminent Persons on Non-tariff Barriers
ICT Information and Communication Technology
Input MI Input Measure Index
LDC Least Developed Country
MID Middle-income Developing Country
NBER National Bureau of Economic Research
NTBs Non-tariff Barriers
Outcome MI Outcome Measure Index
PCA Principal Component Analysis
PPP Purchasing Power Parity
SIC Structural and Institutional Context
TDI Trade and Development Index
TDP Trade and Development Performance
TPP Trade Policies and Processes
TRAINS Trade Analyses and Information System
UNDP United Nations Development Programme
QE Quantitative Easing


We are very lucky today. Our generations have an opportunity to see the implosion of socialism in the last decade of the twentieth century, and the great depression of capitalism in the first decade of twenty-first century. This study provides an overview of recent global economic performance and short-term prospects for the world economy and of some key global economic policy and development issues. One of its purposes is to serve as a point of reference for discussions on economic, social and related issues. The study discusses several policy directions to stimulate more direct job creation and investment in infrastructure, energy efficiency and sustainable energy supply, and food security; stronger financial safety nets; better coordination between fiscal and monetary policies; and the provision of sufficient support to developing countries in addressing the fallout from the crisis and the coordination of policy measures at the international level.

This book is designed for use in courses that focus on the effected countries from global economic depression (especially) in the United States and the EU, and Chinese responses to the global crisis. The study is based on theoretical and empirical investigation. It has designed to meet the requirements of the economic researchers as well university students who study the courses of economics, finance, banking and management at graduate and postgraduate levels, and various educational and research institutions and libraries, NGOs, Government Offices, etc. This study resulted from 10 years of teaching of development economics at various universities like Universiti Utara Malaysia (UUM), Addis Ababa University, Gondar University and Debre Birhan University in Ethiopia as well as travel Kenya as a researcher. These experiences have helped shape and refine a book that is unique in approach, organization and pedagogy in the context of a major set of problems, such as capitalist crisis, development problems, poverty, inequality, unemployment, environmental decay and rural stagnation. It proceeds to evaluate the economic growth in historical context, and focuses on major economic trends and current international trade trends as well as cooperation among the developing countries.


I am grateful to Prof. Dato’ Wira Dr. Mohamed Mustafa bin Ishak, Vice-Chancellor of UUM, who have given me an opportunity to serve UUM. I am immensely indebted to Prof. Dr. Yusnidah Bt Ibrahim, the Dean of SEFB, COB for inspiring me to write this book. My gratitude to Dr. Siti Aznor Ahmad, the Deputy Dean of SEFB, Dr. Noor Azam, Head of the Department of Economics, and all colleagues and non-academic staffs including Assistant Registrar of SEFB, UUM. I am also very thankful to Prof. Prabhat Patnaik (Member of Planning Commission of India and the Dean of SSI, JNU, New Delhi), Prof Jayati Ghosh (JNU), Prof. Samir Amin (France) and many reviewers, both in Malaysia and abroad, who provided detailed and insightful comments for this book. I thank my current and former colleagues and friends who have provided a lot of suggestions and information, Dr. Mohammad Azam (Pakistaan), Dr. Rabiul Islam (Bangladesh), Prof.Asish Saha (India), Dr. Ahmad Sahidah (Indonesia), Dr. B. Bakhtiyar (Iran) and Dr. Abdullah Sumrahadi (Indonesia). I thank the several thousand students whom I have been privileged to teach. The instant response that comes from the look of puzzlement or enlightenment has taught me how to teach economics. Finally, I thank my mother Laxmi Devi, my life partner Julie Rani and lovely kids Raj and Neel, without whose generous cooperation and help this book would not have been possible.

Suggestions for improvements in the book from fellow teachers and readers are most welcome.