FINANCIAL GLOBALIZATION AND THE EMERGING ECONOMIES Editors José Antonio Ocampo ...

326 Pages·2000·0.91 MB·English

FINANCIAL GLOBALIZATION
AND THE EMERGING ECONOMIES
Editors
José Antonio Ocampo
Stefano Zamagni
Ricardo Ffrench-Davis
Carlo Pietrobelli
ECONOMICCOMMISSIONFOR Santiago,Chile,2000 INTERNATIONALJACQUES
LATINAMERICAANDTHECARIBBEAN MARITAININSTITUTE
LC/G.2097-P
May2000
ThisdocumenthasbeenpreparedandpublishedjointlybytheEconomicCommission
forLatinAmericaandtheCaribbean(ECLAC)andtheInternationalJacquesMaritain
Institute.ItscontentswereeditedbyJoséAntonioOcampo,ExecutiveSecretaryofthe
Economic Commission for Latin America and the Caribbean (ECLAC); Stefano
Zamagni,ProfessorofEconomicsattheUniversityofBologna;RicardoFfrench-Davis,
Principal Regional Adviser of ECLAC; and Carlo Pietrobelli, Professor of
DevelopmentEconomicsattheUniversityofMolise,Campobasso.
Thisbookhasbeenpublishedwithaspecialgrantfrom:
CompagniadiSanPaolo(Turin,Italy)
andwiththecontributionsof:
CoopérationetSolidarité(Brussels),EndesaGroup(Madrid),FondazioneMondo
Unito (Vatican City), Ministry for University and Scientific Research of Italy,
Ministry of Finance of Chile, Ministry of Foreign Affairs of Italy, Sanpaolo IMI
(Turin),SwissFederalOfficeforForeignEconomicAffairs.
Applicationsfortherighttoreproducethisworkarewelcomedandshouldbesentto
theSecretaryofthePublicationsBoard,UnitedNationsHeadquarters,NewYork,N.Y.
10017,U.S.A.MemberStatesandtheirgovernmentalinstitutionsmayreproducethis
workwithoutpriorauthorization,butarerequestedtomentionthesourceandinform
theUnitedNationsofsuchreproduction.
UNITED NATIONS PUBLICATION
Sales No. E.00.II.G.39
ISBN 92-1-121265-0
Copyright©UnitedNationsandInternationalJacquesMaritainInstitute,2000
Allrightsreserved
PrintedinChile
ECLAC 5
CONTENTS
(cid:1)
Page
Foreword ............................................... 7
AbouttheEditors............................................ 9
INTRODUCTION .......................................... 11
1 InternationalFinance:FactorofPeaceorofConflict?,
RobertoPapini............................................ 13
2 WheredoweStand?,JoséAntonioOcampo................... 19
3 GlobalizationasanEconomicandSocialForce:Opportunities
andRisksfromaHumanisticPerspective,EduardoAninat...... 25
4 FinancialMarketsandGlobalization:ThePerspectiveof
EmergingEconomies,EduardoFreiRuiz-Tagle................ 31
I INTERNATIONALFINANCIALREFORM ................ 39
5 ABroadAgendaforInternationalFinancialReform,
JoséAntonioOcampo ...................................... 41
6 InternationalFinancialArchitecture:Foundationsand
Framework,GavinBingham................................ 63
7 TheNewGlobalFinancialLandscapeUnderStress,
HansBlommestein......................................... 77
8 TowardsaNewFinancialArchitecture:TheManagement
ofCrises,StephanyGriffith-Jones ............................ 103
9 BeyondBrettonWoods:WhatInternationalMonetaryand
FinancialSystemfortheTwenty-FirstCentury?,
AlexanderK.Swoboda...................................... 123
10 TaxationandtheArchitectureoftheInternational
EconomicSystem,VitoTanzi............................... 139
6 FINANCIALGLOBALIZATIONANDTHEEMERGINGECONOMIES
Page
II NATIONALPOLICIESTOFACEVULNERABILITY........ 151
11 StabilizingCapitalSurgesinEmergingEconomies,
RicardoFfrench-Davis ..................................... 153
12 AnAsianPerspectiveontheDesirableInternationalFinancial
Architecture,KoichiHamada............................... 175
13 TheImpactofFinancialGlobalizationonTransitionEconomies,
BernardSnoy............................................. 193
14 CrisisandContagion:SomeNewandOldIdeas,
JoséLuisMachinea........................................ 211
15 CapitalFlowsinChile:ChangesandPoliciesinthe1990s,
CarlosMassad............................................ 219
16 EconomicPolicyOptionsandFinancialGlobalization:
Mexico,1988–99,RocíoRamosdeVillarrealandRenéVillarreal... 233
III STATEMENTS:THESOCIALACTORSINTHEFACEOF
VULNERABILITY....................................... 253
17 TheResponsibilityofFinancialActors,AngeloCaloia.......... 255
18 InternationalFinancialFlows:ALabourPointofView,
LuisAnderson ............................................ 267
19 WhyCommonGoodMatters,Jean-LoupDherse .............. 273
20 EthicsandtheFinancialCommunity,AndrewHilton........... 279
21 AChallengetoGlobalizationTheory,WilliamPfaff............ 287
22 Dealingwith‘TheGlobalGovernance’and‘TheDual
Constituency’SyndromesinEmergingCountries,
LouisSabourin............................................ 293
23 GoingwiththeFlowoftheMarket,JustinWelby.............. 303
CONCLUSIONS............................................ 311
24 TheEmergingEconomiesintheGlobalFinancialMarket:Some
ConcludingRemarks,CarloPietrobelliandStefanoZamagni..... 313
ECLAC 7
FOREWORD
(cid:1)
F
inancial globalization has been a most dynamic component of the
continued globalization experienced by the world in recent years. Capital
flowstoalargenumberofemergingeconomiesexpandedrapidlyduringthe
1990s. Such capital surges were often followed by financial crisis affecting
severalemergingeconomiesofAsiaandLatinAmericainthe1990s.
Thereisabroadrecognitionthatfinancialinstabilityisdeeplyrootedin
thepresentoperationofmarkets,whichhasbroughtconsensusontheneedto
examinetheissueindepth,inordertourgentlyfindbettersolutionsforcrises
preventionandcrisesmanagement.ThemeetingsofInternationalFinancial
Institutions, G-7 and various groupings of developing economies have
directedtheirattentiontothisissue.
This collection of essays results from an international conference
convenedbyECLACandtheInternationalJacquesMaritainInstituteofRome
inSantiagodeChilein1999.Thisconferencebroughttogetherpolicy-makers,
academics, members of international institutions (BIS, EBRD, IMF, OECD),
andsocialactors(massmedia,labourunions,churchesandfinancialactivity).
The book includes four parts. The Introduction collects the opening
statements in the conference. Part I contains a discussion of the issues and
proposals on how to reform the international financial structure. Part II
discusses the national policies to face financial instability, and their role in
stabilizingcapitalflows.PartIIIincludesstatementsbydifferentsocialactors
ontheirviewsonfinancialglobalizationandtheirmessagestopolicy-makers.
Santiago,Chile,January2000
8 FINANCIALGLOBALIZATIONANDTHEEMERGINGECONOMIES
ECLAC 9
ABOUTTHEEDITORS
(cid:1)
Ricardo Ffrench-Davis, Ph.D. in Economics, University of Chicago (1971).
PrincipalRegionalAdviser,ECLAC,SantiagodeChile. DirectorofResearch
(1990-92)oftheCentralBankofChile. Co-founderof CenterforEconomic
ResearchonLatinAmerica(CIEPLAN),SantiagodeChile(1976-89).Professor
ofEconomicsatUniversidaddeChile;visitingprofessoratOxfordandBoston
Universities. Author or editor of thirteen books and about one hundred
articles on international economics, development strategies, foreign
financing,andLatinAmericaneconomies.Hismostrecentpublicationsare
Reforming the reforms in Latin America: macroeconomics, trade, finance, 1999
(MacmillanandStMartin’sPressinEnglishandMcGraw-HillinSpanish)and
BetweenneoliberalismandgrowthwithequityinChile,1999(DolmenEdiciones,
inSpanish).
JoséAntonioOcampo,Ph.D.inEconomicsfromYaleUniversity.Executive
SecretaryoftheEconomicCommissionforLatinAmericaandtheCaribbean.
Former Minister of Finance and Public Credit, Director of the National
PlanningDepartment,MinisterofAgricultureandDirectoroftheFoundation
forHigherEducationandDevelopmentofColombia.ProfessorofEconomics
atUniversidaddelosAndesandUniversidadNacionaldeColombia;visiting
ProfessoratYaleandOxfordUniversities.Heisauthorofnumerousbooks
and articles on macroeconomic policy and theory, economic development,
international trade and economic history. His more recent publication are
Foreign Capital in Latin America (co-edited with Roberto Steiner), 1994
(Inter-American Development Bank) and La Reforma del Sistema Financiero
Internacional:UnDebateenMarcha,1999(FondodeCultura Económica).
10 FINANCIALGLOBALIZATIONANDTHEEMERGINGECONOMIES
Carlo Pietrobelli, Ph. D. in Economics, Oxford University. Professor of
EconomicsattheUniversityofMolise,Campobasso,andattheUniversityof
Rome3.HehasbeenaconsultanttotheEuropeanUnion,theWorldBank,the
IADB, UNCTAD, UNIDO, ECLAC. He has published extensively in
specialisedinternationaljournalsandhislastbookIndustry,Competitiveness
andTechnologicalCapabilitieswaspublishedbyMacmillanin1999.
Stefano Zamagni, Professor of Economics at the University of Bologna;
adjunct professor at Johns Hopkins University, Bologna Center; visiting
professoratBocconiUniversity,Milan.MemberoftheExecutiveCommittee
of the International Economic Association (1989-99). President of ICMC
(International Catholic Migration Commission, Geneva). Author of
Microeconomic Theory, 1987 (Blackwell); History of Economic Thought, 1993
(Oxford University Press); The Economics of Altruism, 1995 (E. Elgar); The
EconomicsofOrganizedCrimeandIllegalMarkets,1999(E.Elgar).
ECLAC 11
INTRODUCTION
12 FINANCIALGLOBALIZATIONANDTHEEMERGINGECONOMIES