Resolving Debt Crises: How a Debt Resolution Mechanism Would Work
By Martin Khor
More countries are facing a debt crisis, and the world urgently needs an international system of debt arbitration and restructuring. This article describes the elements needed in such a system.
Capital Account Regulations and Investor Protections in Asia.
Since at least the early 1990s, countries that sought to regulate the capital account risked self-inflicted stigma in the international investment arena, even in the face of uncontroverted analytical reasons for their appropriateness.Subsequent events, including the Asian financial crisis in 1997, have not eliminated the stigma risk from capital account controls but the analytical discussion has shifted to when, not if, such controls are warranted. (more…)
Financial Liberalization: The Key Issues.
In recent years financial policies in both industrial and developing countries have put increased emphasis on the market mechanism. Liberalization was partly a response to developments in the financial markets themselves: as these markets innovated to get round the restrictions placed on them, governments chose to throw in the towel. More important, however, governments embraced liberalization as a doctrine. (more…)
LDCs seek exemption from WTO TRIPS agreement
By Kanaga Raja
The Least Developed Countries (LDCs) have submitted a “duly motivated” request to the WTO TRIPS Council for an extension of the transition period for them to comply with the TRIPS Agreement “for as long as the WTO Member remains a least developed country”.
A proposed draft decision annexed to their request states that: “Least developed country Members shall not be required to apply the provisions of the Agreement, other than Articles 3, 4 and 5, until they cease to be a least developed country Member.”
Challenges posed by BITs to developing countries
By Mariama Williams
Bilateral investment treaties pose many challenges to developing countries, and initiatives are underway to move towards a new framework. This message is contained in a closing speech by Mariama Williams on behalf of the South Centre at the 6th Annual Investment Forum for Developing Country Negotiators, Port of Spain, Trinidad and Tobago, 29-31 October 2012, which was co- organised by the South Centre.
Hazards in Bilateral Investment Treaties (BITs): Investors’ rights v. public health
By Carlos Correa
An arbitral tribunal is expected to issue soon a decision on jurisdictional matters in a case brought by Philip Morris against the government of Uruguay. The claim, based on a bilateral investment treaty (BIT) between that country and Switzerland, challenges packaging and labeling requirements for cigarettes adopted by Uruguay to reduce tobacco’s consumption.
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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…)
Climate Change UNFCCC Talks: The Interests of Developing Countries at COP18
This article is adapted from a presentation made by Vicente Paolo Yu III, Programme Coordinator, South Centre, to the first Ministerial Conference on Climate Change of the African, Caribbean, and Pacific Group of States (ACP) at the ACP House in Brussels on 7 November 2012.
Rethinking Regulation in Light of the Financial Crisis
By Yaga Venugopal Reddy
There is a recognition that policies relating to regulation of the financial sector must optimise the benefits of the financial sector while minimising the costs or risks associated with it. There are several dimensions to striking this balance, which this august audience is well aware of and involved with. I selected three themes for consideration today: the optimal level of financialisation, appropriate innovation in the financial sector, and the effectiveness of financial sector regulation.
South facing unfavourable global conditions; rethinking growth strategies is imperative
By Yilmaz Akyüz
The high-growth performance of many developing countries in 2003 to 2008 and then their quick recovery from the 2008-9 global financial crisis was largely due to favourable external conditions, including the policies in developed countries. (This was analysed in the previous issue of South Bulletin). However, these conditions do not exist today and in fact the global conditions have turned unfavourable. Hence developing countries are now facing serious vulnerabilities and risks to their economic situation, with each category of countries facing their own specific problems. Developing countries have to consider changing their growth and development strategies, in light of the changing global situation.
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…)
Financial Instability as a Threat to Sustainable Development.
As seen over and again during recurrent financial crises in both developing and advanced economies (DEs and AEs), including the recent global crisis originating in the US and Europe, financial instability and boom-bust cycles undermine all three ingredients of sustainable development – economic development, social development and environmental protection. (more…)
