Op-Ed by Joseph E. Stiglitz and Hamid Rashid. Published in Project Syndicate.
In Project Syndicate, Joseph E. Stiglitz and Hamid Rashid discuss the economic slowdown facing developing countries this year. Average growth for developing countries in 2015 was only 3.8%, according to the World Economic Situation and Prospects 2016 Report by the United Nations. While recessions in Russia and Brazil and the slowdown in China explain part of the stifled growth, massive capital outflows from developing countries also account for a large part of the economic decline. From 2009-2014, developing countries collectively received $2.2 trillion in net capital inflow. Yet in 2015, net outflows from developing countries exceeded $600 billion – more than one-quarter of the inflows they received during the previous six years. This could be extremely detrimental to the economic growth of developing countries.