DVM 3140 Lecture Notes - Lecture 10: Remittance, Informal Sector, Neoliberalism

• School: University of Ottawa
• Department: International Development and Globalization
• Course: DVM 3140
• Professor: Salamat Tabbasum

Document Summary

Oecd less austerity and more public investment: cutting back public social programs for because of debt. Austerity is the way to address economic crisis in the world: this is what politicians think. Jimmy carter calls us campaign finance ruling legalised briber". There would be a debt repayment crisis, if the ppl in the country are unable to pay for their basic nessity programs they will riot. Remittance makes more than any other investments besides fdi flows. Remittance is encouraged bc they depend on economic boom and bust in the bubble of fdi, Pro: there is consumption in the local economy developing countries go into crisis. Remittance do not depend on economic boom and bust. Cons: no taxation so the government is not getting anything. Bc the money ends up in the pockets of bureaucrats in the formalized economic system, and that is why there is a huge informal economy in developing nations.