Development and Development Policy in the Trump Era

Part of the European Institute of Development Research and Training Institutes' (EADI) 50th anniversary celebrations, the workshop investigated what a Trump second term might mean for development and development policy.

Drawing on classical insights from early development economics, Fischer sought to clarify that in the case of the hegemonic position of the US economy, its persistent trade deficits that emerged since the early 1980s are arguably a sign of US strength or even imperial privilege. 

He argued that this is demonstrated in the case of China: China’s external imbalances in large part reflect its integration into global production & supply networks and, correspondingly, a large part of US deficits reflect the profitability of US corporations dominating these networks, in terms of how they organise trade & financial flows to generate this profitability. 

Within this context, the trade war, with its fascistic discourse portraying dominance as being abused, is aimed at further subordinating trade partners within an imperial-like system of tribute, if not darker forms of neo-imperial control. Whilst other Global North countries or China might have the capacity to resist this, much of the Global South, already struggling with debt strain, will not.

The approximately 30 participants had a lively discussion on this topic. The German Institute of Development Policy will be producing a report of the workshop.