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Book Details
Abstract
Bringing together some of the foremost authorities in their fields, this book is the result of work carried out on behalf of the G24, the world's only research effort devoting to furthering the interests of developing countries and bringing their needs to global attention. The book gives a voice to the developing nations of the world through its powerful essays and its fresh perspective.
This challenging and unique new volume examines some of the most burning issues on the economic agenda in the world today. Bringing together some of the foremost authorities in their fields, this book is the result of work carried out on behalf of the G24, the world's only research effort devoting to furthering the interests of developing countries and bringing their needs to global attention. The book gives a voice to the developing nations of the world through its powerful essays and its fresh perspective. Challenging the existing mechanisms for the governance of the world economy, the chapters in this book consider the current approaches of the World Bank and IMF, and the operations of financial markets, and offer alternative proposals for the effective participation of developing countries. In doing so, the volume ranges from discussions on reforming the IMF and its conditionality, debt workouts and restructuring, through management of capital flows, debt sustainability and insurance against crisis, to Millennium Development Goals and the 'global partnership development'.
'Nowhere is the voice of the developing nations expressed as cogently and powerfully as in these fresh and controversial essays.' —Dani Rodrik, Professor of International Political Economy, John F. Kennedy School of Government, Harvard University
Ariel Buira is Director of the G24 Secretariat. He has been Special Envoy of the President of Mexico for the UN Conference on Financing for Development, Ambassador of Mexico, Member of the Board of Governors of the Bank of Mexico and Executive Director of the IMF.
'This is a very refreshing and thorough critique of today's development orthodoxy represented by the World Bank and the IMF. The combination of iconoclastic perspectives and detailed knowledge of the subject matter makes it particularly powerful.' —Ha-Joon Chang, Director of Development Studies, University of Cambridge
'Incisive and powerful… "Challenges to the World Bank and IMF" is a unique book, providing the reader with a collection of highly professional papers from the perspective of developing countries, covering their economic problems and their relations with International Financial Institutions.' —Claudio M. Loser, Inter-American Dialogue
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Front Matter | i | ||
| Half Title | i | ||
| Advance Reviews | ii | ||
| Title | iii | ||
| Copyright | iv | ||
| Table of Contents | v | ||
| List of Contributors | vii | ||
| Foreword | ix | ||
| Main Matter | 1 | ||
| Introduction, by Ariel Buira | 1 | ||
| 1. Governance and key policy issues | 6 | ||
| 2. Managing capital movements and preventing crises | 8 | ||
| 3. Millennium Development Goals and the provision of global public goods | 9 | ||
| Notes | 10 | ||
| Chapter 1: The Governance of the IMF in a Global Economy, by Ariel Buira | 13 | ||
| Abstract | 13 | ||
| 1. Introduction | 13 | ||
| 2. Votes and decision-making | 14 | ||
| 3. Consensus and qualified majorities | 17 | ||
| 4. Review of quota formulas | 19 | ||
| 5. The size of the IMF | 21 | ||
| 6. On reforming the governance of the IMF | 22 | ||
| 7. Concluding remarks | 27 | ||
| Appendix: Executive Directors and Voting Power | 28 | ||
| Notes | 35 | ||
| Bibliography | 35 | ||
| Chapter 2: Who Pays for the IMF? by Aziz Ali Mohammed | 37 | ||
| Abstract | 37 | ||
| 1. Introduction | 37 | ||
| 2. Cost of IMF lending through the General Resources Account (GRA) | 38 | ||
| 3. The burden-sharing mechanism | 39 | ||
| 4. Additional creditor contributions to burden-sharing | 41 | ||
| 5. Rising cost of running the IMF | 43 | ||
| 6. Gold and the GRA | 44 | ||
| 7. Other proposals for improving burden-sharing in the GRA | 46 | ||
| 8. Concessionary lending | 47 | ||
| 9. Summary and conclusions? | 49 | ||
| Notes | 51 | ||
| Bibliography | 53 | ||
| Chapter 3: An Analysis of IMF Conditionality, by Ariel Buira | 55 | ||
| Abstract | 55 | ||
| 1. Introduction | 56 | ||
| 2. Some unresolved questions on conditionality | 57 | ||
| 3. The nature and purposes of conditionality | 58 | ||
| 4. The rise and fall of structural conditionality | 61 | ||
| 5. Does conditionality safeguard Fund resources? | 63 | ||
| 6. The new guidelines on conditionality | 67 | ||
| 7. Adjustment and financing: a shifting balance | 70 | ||
| 8. Excess demand and structural imbalances | 74 | ||
| 9. Capital-account crises | 76 | ||
| 10. Conclusion | 78 | ||
| Appendix I: The Origins of Conditionality | 82 | ||
| Appendix II: The Rise of Structural Conditionality | 86 | ||
| Notes | 87 | ||
| Bibliography | 89 | ||
| Chapter 4: Achieving Long-Term Debt Sustainability in Heavily Indebted Poor Countries (HIPCs), by Bernhard G Gunter | 91 | ||
| Abstract | 91 | ||
| 1. Introduction | 92 | ||
| 2. Background | 93 | ||
| 3. Key Problems of the Enhanced HIPC Initiative | 95 | ||
| 4. Suggested changes in the HIPC Initiative framework | 99 | ||
| 5. Key issues related to a new aid architecture | 103 | ||
| 6. Necessary structural changes | 106 | ||
| 7. Conclusion | 113 | ||
| Notes | 114 | ||
| Bibliography | 115 | ||
| Chapter 5: The Poverty Reduction Strategy Paper Approach: Good Marketing or Good Policy? by Jim Levinsohn | 119 | ||
| Abstract | 119 | ||
| 1. Introduction | 119 | ||
| 2. The PRSP process | 121 | ||
| 3. Conclusion | 132 | ||
| Notes | 138 | ||
| Bibliography | 139 | ||
| Chapter 6: Capital Management Techniques in Developing Countries, by Gerald Epstein, Ilene Grabel and KS Jomo | 141 | ||
| Abstract | 141 | ||
| 1. Introduction | 141 | ||
| 2. Case studies | 143 | ||
| 3. Lessons and opportunities for capital management in developing countries | 163 | ||
| Notes | 170 | ||
| Bibliography | 172 | ||
| Chapter 7: International Reserves to Short-Term External Debt as an Indicator of External Vulnerability: The Experience of Mexico and Other Emerging Economies, by Javier Guzman Calafell and Rodolfo Padilla del Bosque | 175 | ||
| Abstract | 175 | ||
| 1. Introduction | 176 | ||
| 2. Background | 177 | ||
| 3. IMF methodology for calculating the appropriate vulnerability indicator | 178 | ||
| 4. Estimating the vulnerability indicator for a sample of countries | 179 | ||
| 5. Estimating the vulnerability indicator for Mexico | 193 | ||
| 6. Concluding remarks | 198 | ||
| Notes | 200 | ||
| Bibliography | 201 | ||
| Chapter 8: Mechanisms for Dialogue and Debt-Crisis Workout that can Strengthen Sovereign Lending to Developing Countries, by Barry Herman | 203 | ||
| Abstract | 203 | ||
| 1. Introduction | 204 | ||
| 2. The value of a continuous conversation on crisis prevention | 205 | ||
| 3. Policy in the event of sovereign default | 208 | ||
| 4. Conclusion: more work needed on debt restructuring | 220 | ||
| Notes | 221 | ||
| Bibliography | 225 | ||
| Chapter 9: Developing a Global Partnership for Development, by Martin Khor | 227 | ||
| Abstract | 227 | ||
| 1. Introduction | 227 | ||
| 2. Integrating developing countries in the world economy | 229 | ||
| 3. Trade, development, and reform of the multilateral trading system | 231 | ||
| 4. Conclusions | 238 | ||
| Appendix 1: Millennium Development Goals (MDGS) | 244 | ||
| Notes | 249 | ||
| Bibliography | 250 | ||
| Chapter 10: International Financial Institutions and International Public Goods: Operational Implications for the World Bank, by Ravi Kanbur | 251 | ||
| Abstract | 251 | ||
| 1. Introduction | 251 | ||
| 2. IPG theory | 252 | ||
| 3. World Bank Practice | 256 | ||
| 4. Reform to promote IPGs | 261 | ||
| 5. Conclusion | 263 | ||
| Notes | 265 | ||
| Bibliography | 265 | ||
| Index | 267 |