This book analyzes the process of international financial integration and the structural forces driving private capital to developing countries. Against this background, it details the potential benefits of integration and the implications of fast-moving global capital flows for emerging economics. Examining the experience of countries that have attracted substantial private capital flows, the book provides invaluable guidance as to what works and what doesn't during the transition to financial integration. It will be of compelling interest to policymakers and also to international investors and bankers, financial analysts, and researchers.
This publication incorporates the papers and proceedings of a Banking and Financial Services Symposium held in London in July 2002 on Enhancing Private Capital Flows to Developing Countries in the New International Context.
The Covid-19 pandemic has aggravated the tension between large development needs in infrastructure and scarce public resources. To alleviate this tension and promote a strong and job-rich recovery from the crisis, Africa needs to mobilize more financing from and to the private sector.
Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.
This paper focuses on the accession process for new WTO membership. The basic premise is that the commitments demanded are too onerous for new members. It argues that the whole process is fundamentally flawed and, in fact, forces applicant countries to accept demands that are not required under WTO agreements. Section 2 is a brief discussion of the process of accession and highlights the inherent flaws. Section 3 focuses on one of the crucial international trade agreements, the General Agreement in Trade and Services (GATS) and provides sector-specific commitments by countries. Section 4 uses a series of statistical tests to verify whether acceding countries have made significantly higher number of specific commitments than existing WTO members. Section 5 makes some concluding observations. The paper uses a strong body of econometric evidence to support its claim that acceding countries undertake greater commitments than those made by WTO members of a similar development status.
Multipleshift systems primarily aim to extend access and minimise unit costs. However, some systems only achieve these goals at the expense of educational quality. Policymakers may be faced by difficult choices in system design.
The Economic Paper series is designed to bring to public attention crucial economic issues which are of concern to developing countries. In recent years the series has examined issues such as the instability of capital flows, the position of small states in the global economy, the implications of new trade agreements, agriculture and food security, money laundering and the reform of global financial arrangements. The publications are readable and aimed at academics, policymakers, students and people with a general interest in understanding these topical issues.This publication is a follow-on from the Monterrey Conference on Financing for Development. The Monterrey Conference achieved a significant breakthrough in mobilising commitment on the part of key donors and developing countries to advance the development agenda. These commitments have been (at least partially) built upon at the recent G8 Summit and the World Summit on Sustainable Development. The Monterrey Consensus requires effective follow-up on the part of donors, developing countries and international financial institutions. This publication is based on the Special Theme of the Commonwealth Finance Ministers’ Meeting “Delivering the Millennium Development Goals” held in London, September 2002. Prof. Sen raises some “uncomfortable issues” regarding the soundness of the Monterrey consensus and the need for more inclusive and “interactive encounters” on the basic approach chosen. Ministers are warned that delivering the consensus “will demand from them more than simple midwifery”. This paper includes the report of Civil Society Consultations as an appendix.
As trade preferences disappear, least developed countries (LDCs) and small and vulnerable economies (SVEs) face problems in attracting private investment into small and medium-sized enterprises (SMEs).
The Middle East and North Africa (MENA) is an economically diverse region. Despite undertaking economic reforms in many countries, and having considerable success in avoiding crises and achieving macroeconomic stability, the region’s economic performance in the past 30 years has been below potential. This paper takes stock of the region’s relatively weak performance, explores the reasons for this out come, and proposes an agenda for urgent reforms.
Work is constantly reshaped by technological progress. New ways of production are adopted, markets expand, and societies evolve. But some changes provoke more attention than others, in part due to the vast uncertainty involved in making predictions about the future. The 2019 World Development Report will study how the nature of work is changing as a result of advances in technology today. Technological progress disrupts existing systems. A new social contract is needed to smooth the transition and guard against rising inequality. Significant investments in human capital throughout a person’s lifecycle are vital to this effort. If workers are to stay competitive against machines they need to train or retool existing skills. A social protection system that includes a minimum basic level of protection for workers and citizens can complement new forms of employment. Improved private sector policies to encourage startup activity and competition can help countries compete in the digital age. Governments also need to ensure that firms pay their fair share of taxes, in part to fund this new social contract. The 2019 World Development Report presents an analysis of these issues based upon the available evidence.
