Global North–South Reparations: Demand‐side and Supply‐side Policies with a Dynamic View of International Trade and Finance

Abstract

ABSTRACTThis study begins with an overview of illustrative scenarios that historically have resulted in imbalances of economic well‐being, growth and stability which demarcate the Global South and the Global North. The authors examine alternative approaches to reparations for those structural imbalances, from monetary transfers that are more likely to have demand‐side implications to capacity‐building approaches that are more likely to affect supply‐side conditions for the Global South. Targeted supply‐side strategies lean more towards rehabilitation rather than purely compensatory measures aimed at redress for historical injustices and exploitations faced by the Global South. Economic analysis underpins a discussion of these different reparations strategies. The authors argue that a dynamic approach to understanding the impact of reparations is essential. This calls for a broader strategy to be adopted, offering unconditional support in practical areas such as industrial policy, investment in manufacturing, capacity building in research and development, and initiatives for general infrastructure development. More importantly, these policies must be guided by the needs identified by the people of the nations in the Global South. Moreover, for any reparations endeavours to have enduring effects, they must be reinforced by the elimination of current external imbalances that exist within the frameworks of international economic relations.