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…)
This paper argues that the unprecedented acceleration of growth in the developing world in the new millennium in comparison with advanced economies is due not so much to improvements in underlying fundamentals as to exceptionally favourable global economic conditions, shaped mainly by unsustainable policies in advanced economies. The only developing economy which has had a major impact on global conditions, notably on commodity prices, is China. (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…)
Why The IMF And The International Monetary System Need More Than Cosmetic Reform.
This Research Paper argues that the G20 agenda misses some of the key issues that need to be dealt with in order to effectively reform the international monetary system so as to avert future global financial crises. The missing issues include enforceable exchange rate and adjustment obligations, orderly sovereign debt workout mechanisms and the reform of the international reserves system. (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…)
Policy Response to the Global Financial Crisis: Key Issues for Developing Countries.
This new paper, authored by the Centre’s Special Economic Advisor, Dr Yilmaz Akyuz, deals with the global financial crisis and developing countries. The first part is on what is needed to support the required policy response in developing countries. The second part is on the required reform to the international financial architecture. A summary of policy conclusions and proposals is at the end. (more…)
Although the structure of International Trade has changed significantly in favour of manufactures, primary commodities remain extremely important for several developing as well as Least Developed Countries. A large number are still dependent on a limited basket of primary commodities for their exports.