"I would like to thank the business and education leaders who served on the CED Subcommittee on Finance and Third World Economic Growth for their diligent work and practical contributions. In particular I would like to thank Subcommittee Chairman James W. McKee, chairman of the executive committee of CPC International Inc., whose leadership, insight, and interest in these issues guided the subcommittee through to publication of the policy statement. I would also like to acknowledge the outstanding work of Professor Isaiah Frank of the School of Advanced International Studies at Johns Hopkins University, who served as project director. His knowledge in this field and expertise in drafting the statement clarified many complex issues. Thanks also go to Research Assistant Patricia Pollard of Johns Hopkins University, who was of valuable assistance to Dr. Frank in compiling the necessary research. William "
And major recommendations -- Domestic capital and internal policies in the Third World -- External finance and policies -- Official finance -- Foreign private investment -- Commercial lending.
This collection brings together a collection of theoretical and empirical findings on aspects of financial development and economic growth in developing countries. The book is divided into two parts: the first identifies and analyses the major theoretical issues using examples from developing countries to illustrate how these work in practice; the second part looks at the implications for financial policy in developing countries.
Although commercial banks have played an increasingly important role in providing capital to developing nations, many analysts argue that private financing poses risks both to borrowing nations and the stability of the international economic system. In response, Mr. DaCosta demonstrates that developing nations that adopt appropriate policies can gain substantially by drawing on private sources of capital. His analysis indicates that many criticisms of the role of commercial banks are unfounded and that debt problems in LDCs typically are related to inadequate reserve and external debt management policies in the borrowing countries themselves. Emphasizing that economic growth in LDCs often is constrained by balance-of-payment deficits, Mr. DaCosta shows that nations relying on private capital frequently experience higher-than-average growth rates and argues that the advantages of unconditional or untied aid generally outweigh the constraints imposed by the multilateral aid agencies. In conclusion, he outlines specific policies developing nations can adopt to reduce financial risk and, turning to the needs of the poorest of the LDCs, examines a variety of proposals aimed at increasing the flow of concessional assistance to those countries that cannot qualify for commercial bank funds.
An engaging look at the road to a sustained economic recovery The global finance system can be regulated to prevent massive credit fraud, tame capitalism, confront the sovereign debt crisis, and move towards investing in the real economy and full employment. "Obamanomics", and American reinvention can lead to a sustained economic recovery but only together with major domestic, European, and global monetary reforms in cooperation with emerging nations. For decades, the U.S. dollar has served as the world's reserve currency. But after the global market meltdown and the resulting massive stimulus spending meant to keep the Great Recession from becoming an even Greater Depression, confidence in America's ability to make good on its growing debt is at all-time lows. In Brave New World Economy: Global Finance Threatens Our Future, Wilhelm Hankel and Robert Isaak—two extremely controversial, yet highly respected experts on international economics and management—describe how "Obamanomics," the Euro crisis, and shift of economic growth from the West to emerging economies, if handled properly, can lead to true economic stability and job creation. Highlights America's 'Great Bluff' bail-out strategy to cope with the crisis and the reforms Obamanomics must make to bring about sustainable job recovery Describes the risks and rewards of borrowing from future generations—in the United States, Europe, and the developing world—to save the current generation Details how money became separated from government control and why the interbanking credit system threatens western nations with bankruptcy, undermining pensions, and the human right to work Points out why nation-states need to go back to helping themselves and not rely on the false promises of regional integration and globalization Shows how legalizing underground labor will create more jobs How we arrived at this economic crossroads isn't as important as the decision as to which path to take. The Brave New World Economy points us in the right direction.
Over a billion people still live in abject poverty. International aid, and its organs such as the World Bank, can claim only limited success. Indeed, in some parts of the world, especially Africa, they must acknowledge failure. William Ryrie analyses the record of international aid with ruthless honesty, while sympathising with its objectives. Aid has often had perverse and harmful effects. Probably its most basic failure has been to undermine the working of the market economy, which offers the best hope of rapid growth and declining poverty. Ryrie argues that a new intellectual basis for aid must urgently be found and the development task redefined, concluding this stimulating book with some novel and provocative proposals.
