The Great Recession and its Global Implications
What happened to the US real estate market?
Banks and mortgage lenders gave out subprime loans to people who couldn’t afford them, often using deceptive practices. These loans were then bundled into complex financial products called mortgage-backed securities (MBS) and collateralized debt obligations (CDOs), which were sold to investors as safe.
Credit rating agencies falsely rated these products as high-quality. When homeowners began defaulting on their loans, the entire system collapsed, triggering the global financial crisis.
What are the SDGs and when were they introduced? How are they different from the MDGs?
Bonus: Can you name at least five?
The Sustainable Development Goals (SDGs), introduced by the UN General Assembly, are 17 global goals adopted by the United Nations in 2015 to guide development efforts through 2030. They build on and expand the earlier Millennium Development Goals (MDGs), which focused mainly on poverty, health, and education in developing countries. Unlike the MDGs, the SDGs apply to all countries and address a broader range of issues, including climate change, inequality, and sustainable economic growth.
When did financial actors first get brought into government positions and what did they do? What was the outcome?
The film "Inside Job" explains that financial insiders began entering government roles in the 1980s under the Reagan administration, a trend that grew under Clinton and Bush.
These individuals, often from Wall Street firms like Goldman Sachs, pushed for deregulation, including the repeal of key protections like the Glass-Steagall Act. Their policies weakened oversight and allowed excessive risk-taking, which ultimately contributed to the 2008 financial crisis.
When did the Brundtland Report come out and how did it define sustainable development?
The Brundtland Report was published in 1987 by the World Commission on Environment and Development. It defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
According to James, what undermined U.S. legitimacy?
The 2003 Iraq War: The aftermath of this conflict damaged the perceived legitimacy of U.S. leadership in global affairs.
The 2007–08 Financial Crisis: This crisis, rooted in American capitalism, was seen as an indictment of the U.S. economic model. It further diminished trust in the U.S. as a global leader, eroding the foundations of its "soft power" and its role in maintaining a multilateral political and economic order
According to Goldman, when and why did "green neoliberalism" emerge?
According to Goldman, "green neoliberalism" emerged in the early 1990s as part of a shift in global environmental governance. It developed in response to growing international concern over ecological degradation and was shaped by institutions like the World Bank, which sought to integrate environmental goals with market-based reforms.
The emergence was closely tied to broader neoliberal structural adjustment policies of the 1980s and 1990s. Goldman explains that it arose as a way to "green" these policies—essentially, to make them appear environmentally sustainable—by promoting market mechanisms, privatization, and decentralized governance as tools for environmental management.
What impact did the Great Recession have on EU countries and EU politics?
The Great Recession deeply affected EU countries, especially in Southern Europe, leading to high unemployment, economic contraction, and rising debt. In exchange for bailouts, the EU and IMF imposed austerity measures, prompting cuts to public spending and services. These policies triggered mass protests, widened inequality, and fueled political instability. Mainstream parties lost ground as populist and anti-EU movements gained traction, such as Syriza in Greece. The crisis also revealed weaknesses in the eurozone’s structure and sparked lasting debates over European integration.
Under "green neoliberalism," what do states need to do to ensure sustainability?
Under “green neoliberalism,” states are expected to ensure sustainability by reorienting themselves to attract international investment, create enabling environments for market-led conservation, and devolve environmental governance to non-state actors. This includes crafting policies that commodify nature, fostering public-private partnerships, and establishing institutions to facilitate ecosystem service markets. Rather than directly managing ecosystems, states act as facilitators of neoliberal reforms by implementing legal frameworks, securing property rights, and ensuring that markets for environmental goods and services function smoothly.
What contributed to a rise in anti-immigrant sentiment in the EU?
The Great Recession led to unemployment, austerity, and reduced social services across the EU, fueling competition for resources and scapegoating of immigrants. The 2015 Refugee Crisis further strained public services and sparked fears over cultural change. Far-right populist parties gained traction by exploiting anti-immigrant sentiment, portraying outsiders as threats to national identity and security. Media and political narratives often amplified these fears, deepening tensions in already vulnerable communities.
What are some critiques of sustainable development?
Common critiques include...
1. Vague and ambiguous-- The concept is often criticized for being too broad or vague, making it easy for different actors to interpret it in self-serving ways without meaningful change.
2. Growth contradiction-- Critics argue that sustainable development still relies on economic growth, which can be fundamentally at odds with ecological limits and environmental sustainability.
3. Greenwashing-- Governments and corporations may use the language of sustainability to appear environmentally responsible while continuing harmful practices.
4. Global inequities-- Some argue that the sustainable development agenda reflects Western priorities and may impose development models that don’t align with local contexts, particularly in the Global South.
5. Poorly enforced-- There are few binding mechanisms to ensure countries or corporations meet sustainability goals, leading to inconsistent implementation.
6. Technocratic bias-- Emphasis on technical solutions can overlook political, social, and cultural dimensions of sustainability, sidelining local knowledge and participation.