International finance and development / edited by José Antonio Ocampo, Jan Kregel, Stephany Griffith-Jones.

Format:

Book

Government document

Contributor:

Ocampo, José Antonio.

Kregel, J. A.

Griffith-Jones, Stephany.

United Nations Publications.

Language:

English

Subjects (All):

International finance.

Physical Description:

xi, 207 pages : illustrations ; 24 cm

Place of Publication:

Hyderabad, India : Orient Longman ; London ; New York : Zed ; Malaysia : Third World Network, 2007.

Summary:

International Finance and Development offers a comprehensive survey of the major financing issues influencing economic development since the historic Monterrey Consensus of the International Conference on Financing for Development in 2002. As most recent international private capital flows have been unlikely to significantly enhance new productive investments in the developing countries, it is necessary to design appropriate mechanisms to ensure they contribute to development. However, recent trends in official development financing offer some grounds for optimism, although much more needs to be done. External debt problems of many developing countries, especially the least developed countries, seem likely to continue to constrain their prospects for development. The final part on systemic issues highlights new concerns and the modest progress in ensuring that the international monetary and financial system better serves economic growth and development throughout the world, especially in the developing countries.

Contents:

International Private Capital Flows 2

Official Development Financing 6

External Debt 10

Systemic Issues 12

Chapter I International Private Capital Flows 17

Main Features of Private Flows to Developing Countries 18

Foreign Direct Investment 26

Trends and composition of foreign direct investment 26

How stable is FDI? 28

Particular benefits of FDI 30

Financial Flows 34

Bank credit 34

Portfolio flows 38

Impact of derivatives 41

Measures to Counter Pro-cyclicality of Private Capital Flows 45

Counter-cyclical financing instruments 45

Prudential capital account regulations 48

Counter-cyclical prudential regulation 52

Basel II and developing countries 55

A Greater Challenge: Encouraging Private Flows to Lower-Income Developing Countries 59

Chapter II Official Development Financing 65

Official Development Assistance 65

The origins and weakening of the commitment to ODA 65

The resurgence of ODA 67

ODA and the Millennium Development Goals 68

Volatility and conditionality of aid flows 71

Selectivity of aid flows 74

Aid effectiveness 77

Donor efforts to increase aid effectiveness 79

The Multilateral Development Banks 81

The role of multilateral development banks 83

Structure and trends 87

The debate around the multilateral development banks 93

The way forward 95

South-South Cooperation 97

Innovative Sources of Financing 99

Major mechanisms in the short run 101

Major mechanisms in the longer run 103

Chapter III External Debt 107

Debt and development 107

The post-war approach to lending to developing countries 107

Rapid external borrowing and debt rescheduling in the 1960s and 1970s 108

Debt resolution in the 1980s 112

Debt relief 112

The Heavily Indebted Poor Countries (HIPC) Initiative 112

The Multilateral Debt Relief Initiative 117

New measures for official debt relief for middle-income countries (Evian approach) 119

Debt sustainability 121

Debt sustainability analysis for low-income countries 121

An assessment of debt sustainability analyses 124

Debt resolution and debt relief involving private creditors 129

New approaches and initiatives 129

Chapter IV Systemic Issues 139

Global macroeconomic imbalances and the international reserve system 140

Changes in the structure of global financial markets 147

Risk implications of changes in global financial markets 147

Implications for prudential regulation and supervision 151

Crisis prevention and resolution 155

Domestic macroeconomic policies 155

Surveillance of national macroeconomic policies 157

The role of emergency financing and precautionary financial arrangements 158

Strengthening IMF financing of poor countries 161

Conditionality of IMF lending 162

The role of SDRs in the international financial system 164

The role of regional financial arrangements 166

Enhancing the voice and participation of developing countries in international financial decision-making 168.

Notes:

"Published in association with the United Nations."

Includes bibliographical references ([175]-195) and index.

ISBN:

9788125030652

8125030654

9781842778616

1842778617

9781842778623

1842778625

OCLC:

122400352

Online:

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