Global Austerity Alert: Looming Budget Cuts in 2021-25 and Alternative Pathways
Working Paper #0
This paper warns of an emerging post-pandemic fiscal austerity shock—one that is far more premature and severe than the one that followed the global financial crisis—and presents alternative options to ensure that populations do not yet again have to suffer austerity cuts. It does so by: (i) examining IMF government expenditure projections until 2025; (ii) summarizing the most common austerity measures to be avoided, given their negative social impacts; (iii) calling on governments to urgently create fiscal space to finance an equitable socio-economic recovery and progress toward the Sustainable Development Goals (SDGs).
About the Authors
Global Social Justice Program Director
Initiative for Policy Dialogue
Isabel Ortiz is Director of the Global Social Justice Program at the Initiative for Policy Dialogue, Columbia University. Earlier, she was Director at the International Labour Organization/ILO and UNICEF, and senior advisor at the United Nations and at the Asian Development Bank. She has an MSc and a Ph.D. from the London School of Economics. She worked in more than 50 countries, and has written about 60 publications translated in several languages.
Social Policy and Economic Specialist
Matthew Cummins leads research and is an advisor on real-time monitoring, fiscal space and social budgeting issues, as well as on designing policies to protect children and poor households from the impacts of macroeconomic shocks. He has worked on social policy issues for more than ten years with the Inter-American Development Bank, United Nations Development Programme, U.S. Peace Corps and the World Bank. He holds a MA in International Economics from Johns Hopkins SAIS and has published widely in international development books and journals.