The International Monetary and Financial System: Developing-Country Perspectives

504 Pages·1996·46.86 MB·English

by  G. K. Helleiner (eds.)

THE INTERNATIONAL MONETARY AND
FINANCIAL SYSTEM
Also by G. K. Helleiner
AGRICULTURAL PLANNING IN EAST AFRICA (editor)
A WORLD DIVIDED: The Less Developed Countries in the
International Economy (editor)
FOR GOOD OR EVIL: Economic Theory and North-South
Negotiations (editor)
FROM ADJUSTMENT TO DEVELOPMENT IN SUB-SAHARAN
AFRICA: Conflict, Controversy, Convergence, Consensus (editor with
Giovanni Andrea Cornia)
INTERNATIONAL ECONOMIC DISORDER: Essays in North-South
Relations
INTERNATIONAL TRADE AND ECONOMIC DEVELOPMENT
INTRA-FIRM TRADE AND THE DEVELOPING COUNTRIES
MANUFACTURING FOR EXPORT IN THE DEVELOPING WORLD:
Problems and Possibilities
PEASANT AGRICULTURE, GOVERNMENT AND ECONOMIC
GROWTH IN NIGERIA
PROSPERITY AND THE WORLD ECONOMY: Essays in Memory of
Sidney Dell (editor with S. Abrahamian, E. Bacha, R. Lawrence and P.
Malan)
THE IMF AND AFRICA (editor)
THE NEW GLOBAL ECONOMY AND THE DEVELOPING
COUNTRIES: Essays in International Economics and Development
THE OTHER SIDE OF INTERNATIONAL DEVELOPMENT
POLICY: Non-Aid Economic Relations with Developing Countries in
Canada, Denmark, The Netherlands, Norway and Sweden (editor)
TRADE POLICY, INDUSTRIALIZATION AND DEVELOPMENT:
New Perspectives (editor)
TRADE POLICY AND INDUSTRIALIZATION IN TURBULENT
TIMES
The International
Monetary and Financial
System
Developing-Country Perspectives
Edited by
G. K. Helleiner
Professor of Economics
University of Toronto
First published in Great Britain 1996 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-1-349-24416-4 ISBN 978-1-349-24414-0 (eBook)
DOI 10.1007/978-1-349-24414-0
First published in the United States of America 1996 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-12974-3
Library of Congress Cataloging-in-Publication Data applied for
©UNCTAD 19%
Softcover reprint ofthe hardcover 1st edition 1996 978-0-333-64247-4
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Transferred to digital printing 1999
Contents
List o.f Tables ix
Preface XI
List of Abbreviations Xlll
Notes on the Contributors XVI
1 Introduction
G.K. Helleiner 1
PART I GLOBAL MACROECONOMIC MANAGEMENT
AND THE INTERESTS OF DEVELOPING
COUNTRIES 13
2 Implications for IMF Policies arising from
Effects on Developing Countries of Industrial
Country Macroeconomic Policies
Azizali F. Mohammed 15
3 Global Macroeconomic Management and the
Developing Countries
Yung Chul Park and Sang moon Hahm 28
Comments
Antonieta Del Cid de Bonilla 46
Shahen Abrahamian
PART II INTERNATIONAL LIQUIDITY, CAPITAL
MOBILITY AND THE DEVELOPING COUNTRIES 53
4 International Liquidity and the Needs of the World
Economy
Ariel Buira 55
5 The Management of Capital Flows: Domestic
Policy and International Cooperation
Guillermo A. Calvo 85
v
VI Contents
Comments
Christian Ossa
Faika El-Refaie
Yilmaz Akyii.z
M.A. Uduebo
Miguel Urrutia Montoya 113
PART III DEVELOPMENT FINANCE 133
6 Foreign Resource Flows and Financing
of Development in Sub-Saharan Africa
Benno J. Ndulu 135
7 Financing Economic Development in Low-Income
Countries
Joseph Abbey 157
Comments
M.A. Uduebo
Norman Girvan
Mbaya Kankwenda
Yilmaz Akyii.z 178
PART IV ISSUES IN TRANSITION AND ADJUSTMENT
AND THE INTERNATIONAL FINANCIAL
INSTITUTIONS 191
8 Structural Adjustment and Reform in
Developing Countries
Montek S. Ahluwalia 193
9 Transition and International Financial Institutions
Dragoslav Avramovic 229
PART V RELATIONS BETWEEN THE IMF,
THE WORLD BANK AND
THE DEVELOPING COUNTRIES 243
10 The Roles of International Financial Institutions:
A Latin American Reassessment
Patricio Meller 245
Contents vii
11 IMF-World Bank Policy Advice:
The Coordination/Cross-Conditionality Question
Roberto Junguito 272
PART VI GOVERNANCE ISSUES WITHIN THE IMF
AND THE WORLD BANK 291
12 From Supplicants to Shareholders:
Developing Countries and the World Bank
Moises Nairn 293
13 Governance of the Fund
Alexandre Kafka 324
Comments
Guillermo C. Mungi 341
PART VII THE REGIONAL DEVELOPMENT BANKS
·AND THE WORLD BANK 345
14 The Evolution of the Multilateral Development Banks
Devesh Kapur and Richard Webb 347
15 Regional Development Banks and the Objectives of
the Bretton Woods Institutions
Delphin G. Rwegasira and Henock Kifle 383
Comments
Cristian Ossa 417
PART VIII THE DEVELOPING-COUNTRIES' INFLUENCE
WITHIN THE INTERNATIONAL MONETARY
ANDFINANCIALSYSTEM 421
16 Developing Country Cooperation in International
Financial Institutions
Lal Jayawardena 423
17 Back to the Future: Small Developing Countries
in the International Monetary System
Terrence W. Farrell 452
viii Contents
Comments
Norman Girvan 474
APPENDIX CONFERENCE OPENING ADDRESS
Cesar Gaviria Trujillo
President of the Republic of Colombia 477
Author Index 482
Subject Index 486
List of Tables
4.1 Estimates of Demand for International Reserves based
on the Equilibrium Model (GLS) 61
4.2 Estimates of Demand for International Reserves based
on the Equilibrium Model (OLS) 62
4.3 Elasticities of Demand for Reserves of Reserve
Currency and Non-Reserve Currency Countries 64
4.4 Estimates of Demand for International Reserves based
on the Disequilibrium Model 65
4.5 Total Reserves and their Composition 67
4.6 Currency Composition of Reserves 68
4.7 Ratio of IMF Quotas to Merchandise Trade 71
4.8 Distribution of International Reserves by Groups of
Countries 74
4.9 Import Coverage of International Reserves 75
4.10 Projections of the Demand for International Reserves 79
5.1 Latin America: Balance of Payments, 1985-94 88
5.2 Asia: Balance of Payments, 1985-94 89
5.3 Key Indicators for Selected Latin American and
Asian Countries 90
6.1 Key Macroeconomic Balances, Sub-Saharan Africa,
(averages) 137
6.2 Evolution of Debt Stock Ratios, Sub-Saharan Africa,
1970-91 140
6.3 Evolution of the Structure of Debt Stock, Sub-Saharan
Africa, 1970-91 141
6.4 External Debt Service Ratios in the 1980s, Sub-Saharan
Africa 144
6.5 Average Terms of New Debt, Sub-Saharan Africa 147
6.6 External Net Resource Flows, Sub-Saharan Africa,
1970-90 150
6.7 External Net Transfers adjusted for Terms of Trade
Losses, Sub-Saharan Africa 152
9.1 Growth in GDP in Eastern Europe and the Former
Soviet Union 230
9.2 Gross Fixed Investment in Eastern Europe and the Former
USSR 231
9.3 Unemployment Rates in Eastern Europe 238
ix