National Financial Policy in Developing Countries.
A fundamental question raised by recurrent financial crises in mature and emerging economies is how to ensure that the financial markets and institutions serve growth and development rather than being a constant source of instability and disruption in pursuit of self-interest. (more…)
Statutory Sovereign Debt Workout Mechanisms: Why and How?.
Because of the absence of a multilaterally agreed legal system for debt workouts, the practice tends to be ad hoc and disorderly, generally favouring creditors. Often the IMF is involved in coordinating and resolving debt servicing difficulties, be it due to solvency or liquidity problems, based on an adjustment programme agreed with the debtor country. (more…)
Global slowdown hits developing countries
By Martin Khor
Developing countries are increasingly being adversely affected by the economic recession in Europe and the slowdown in the United States.
The hope that major emerging economies like China, India and Brazil would continue to have robust growth, de-coupling from Western economies and becoming an alternative engine of global growth has been dashed by recent data showing that they are themselves weakening.
What Explains the South’s Recent High Growth — And Can It Continue?
By Yilmaz Akyüz
Recently there emerged a view that developing countries had “de-coupled” their economies from the developed countries and had taken off to a path of high growth. But this is an overly-optimistic view. This article by the South Centre’s Chief Economist examines the growth record of developing countries and analyses how the good performance was based mainly on external factors that no longer exist. The next issue of SouthViews will have a follow-up article on the need for a new development strategy in the South.
Re-making Financial Policy to Meet Society’s Needs
By Yaga Venugopal Reddy
The future of finance, and in particular saving it from a popular backlash against the global financial crisis and related crisis-management policies, has rightly become a matter of great concern. There is broad agreement that finance has, as in the past, the potential to do good, which should be harnessed by all. However, it is essential to minimise its potential to do harm. From a central banker’s point of view, there are several issues in this search for good finance for the future, but there are three inter-related issues that I want to comment on today: (a) how to ensure that the financial sector serves the society better; (b) how to integrate financial sector policies better with national economic policies; and (c) how to ensure that the financial industry functions as a means and not as an end in itself?
Asian Initiatives at Monetary and Financial Integration: A Critical Review.
Whilst the first steps towards Asian trade cooperation stated in 1970s, it was the Asian Financial Crisis of 1997 that triggered Asian efforts at monetary and financial integration. This paper argues that the conditions for Asian monetary integration are not conducive but that efforts at monetary cooperation should proceed at three fronts – exchange rate cooperation, coordination of capital flows control, and strengthening of regional financial liquidity management as in the Chiang Mai Initiative and regional surveillance. (more…)
Sustainable Development as an Answer to Economic and Financial Crises
Below is the speech delivered by Dr Yilmaz Akyüz, Chief Economist of the South Centre on the Sustainable Development Dialogue Roundtable on the Global Financial Crisis, UN Conference on Sustainable Development 2012, in Rio de Janeiro on 16 June 2012. (more…)
Capital Flows to Developing Countries in a Historical Perspective: Will the Current Boom End With a Bust?.
The paper argues that the policy of quantitative easing and close-to-zero interest rates in advanced economies, notably the US, are generating a surge in speculative capital flows to developing countries in search for yield and creating bubbles in foreign exchange, asset, credit and commodity markets. (more…)
The Impact of the Global Economic Crisis on Industrial Development of Least Developed Countries.
The South Centre has released a Research Paper which examines the impact of the external shocks from the global economic crisis on industrial development of Least Developed Countries (LDCs). These countries are heavily exposed to external shocks because of their extensive trade with the rest of the world. Yet, they are marginalized in terms of their share in international trade and output. (more…)
Capital flows from South to North: a new dynamic in global economic relations.
This Analytical Note looks at the new dynamic of capital flows from the South to the North arising from unprecedented levels of capital reserve accumulation by the South. (more…)
Developments on Discussions for the Improvement of the Framework for ICSID Arbitration and the Participation of Developing Countries.
The International Centre for settlement of Investment Disputes (ICSID) is established by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) that entered into force on October 14, 1966. (more…)
