Development Economics
Growth and Fluctuations: An Overview
Capitalism since its inception has been marked by large fluctuations. The resulting episodic unemployment has been very costly. This paper provides an overview of alternative theories
Development Economics
Addressing the debt and development crises in countries from the South in the year of the Jubilee
A group of academic experts, practitioners, finance ministers, policymakers, authorities from international financial institutions, religious leaders, and experts from civil society organizations met at the Pontifical Academy of Social Sciences (PASS) in the Vatican City on June 5, 2024, to discuss the current debt situation, especially in the Southern Hemisphere.
Business & Society
JGD: Public Webinar on Climate and Development
The Journal of Globalization and Development (JGD) will be hosting a webinar showcasing its Special Issue on Climate and Development. Moderated by Joseph Stiglitz, this event will feature authors from the issue presenting their research and insights. Attendees will have the opportunity to explore diverse perspectives on the intersection of climate change and development, including innovative strategies and policy implications. The webinar aims to foster a deeper understanding of the complex dynamics at play and inspire meaningful action.
Economics & Policy
Domestic Financial Regulations in Developing Countries
The view taken in this paper is that in order to provide advice to developing countries on how to improve regulation and supervision of financial markets, it is first necessary to answer (1) whether commonly used regulatory tools have been effective in reducing the adverse effects of capital flow volatility on domestic financial markets; (2) whether appropriate regulatory and supervisory tools in developing countries need to be different from those that work in industrial countries and even differ between developing countries at different degrees of financial sector development.
Economics & Policy
Effects of Financial Globalization on Developing Countries
This short article summarizes a recent IMF paper on the subject with the same title, which is a part of the IMF’s ongoing research program on globalization. The long version was published as IMF Occasional Paper 220. The main purpose of the paper is to provide an assessment of empirical evidence on the effects of financial globalization for developing economies. The paper focuses on three related questions: (i) does financial globalization promote economic growth in developing countries? (ii) what is its impact on macroeconomic volatility in these countries? (iii) what are the factors that appear to help harness the benefits of financial globalization?
Economics & Policy
Consequences of Liberalizing Derivatives Markets
This paper discusses the benefits and risks that financial globalization entails for developing countries. Financial globalization can lead to large benefits, particularly to the development of the financial system. But financial globalization can also come with crises and contagion. The net effect of financial globalization is likely positive in the long run, with risks being more prevalent right after countries liberalize. So far, only some countries, sectors, and firms have taken advantage of globalization. As financial systems turn global, governments lose policy instruments, so there is an increasing scope for some form of international financial policy cooperation.
Business & Society
Market Access
If the development focus of the Doha Round is to be a meaningful operating principle, then the overriding task of the Round must be to ensure that the liberalisation agreements promote development in poor countries.This note attempts to support that task by reviewing the potential benefits and costs of liberalisation across various trade and factor flows.
Business & Society
Implementation and Adjustment Costs
Special and differential treatment is both a cause of and a solution to political barriers to multilateral trade liberalization. SDT provisions need to be designed as part of a broad development package sensitive to the institutional weaknesses of different countries and linked to assistance packages.
Economics & Policy
The Virtues of Prudential Regulation in Financial Markets
The potential of a properly regulated financial system to dampen rather than exacerbate shocks to developing economies has too often been overlooked. This chapter explores the potential of prudential regulations to dampen international capital flows, limit certain kinds of risk taking and help guard against systemic failures and international contagion.
Capital Markets and Investments
Capital Market Liberalization, Poverty and Inequality
Research has typically addressed capital account liberalization in terms of its growth effects. While no systematic growth benefits have been identified, potentially damaging poverty and inequality impacts have been overlooked. This paper identifies a number of channels through which these may occur. For policymakers, these are: increased instability of government finances, restricted policy freedom through “market discipline” and the direct costs of managing inflows. Financial market and industrial structure effects include: greater volatility in access to finance for households and small businesses, increasing industrial concentration and shifts in taxation away from capital and towards labour and consumption.