B. The New Bank of England Rules for Provisioning

SUMMARY Stephany Griffith?Jones' article presents in some detail the new 1990 Bank of England matrix, which provides detailed rules for British banks' provisioning against possible Third World losses. RESUME L'article de Stephany Griffith?Jones présente en détail la nouvelle matrice de 1990 de la Banque d'Angleterre, qui fournit des règlements détaillés en ce qui concerne l'approvisionnement de capitaux utilisés en cas de pertes financières éventuelles du Tiers Monde. RESUMEN El artículo de Stephany Griffith?Jones presenta, con algún detalle, la nueva matriz del Banco de Inglaterra de 1990, la que proporciona normas pormenorizadas de previsión para los bancos británicos frente a posibles pérdidas del Tercer Mundo

‘Monetarism’: its effects on developing countries

Foreword in an issue of the IDS Bulletin: "‘Monetarism’: its effects on developing countries" edited by Stephany Griffith-Jones and Dudley Seers

3. The Costa Rican Debt Deal: Is Small Beautiful?

SUMMARY Stephany Griffith?Jones' paper examines the Costa Rican deal, reached in the context of the Brady Plan; this package has substantive debt and debt service reduction elements, with no ‘new money’ from the private banks. The paper examines the particular features of Costa Rica. (such as the total small size of its debt and its geo?political importance to the US), which, together with the government's bargaining skills, seems to explain the high quality of the package. RESUME L'article de Stephany Griffith?Jones étudie le marché de Costa Rica, dans le contexte du Plan Brady; ce marché a des dettes importantes et comprend des éléments d'un système de réduction de dettes, sans “nouvelles finances” provenant des banques privées. L'article étudie les caractéristiques particulières de Costa Rica (telles que la petite taille de son déficit et son importance géo?politique pour les Etats?Unis), qui, avec les talents du gouvernements en matière de négotiations semblent expliquer la haute qualité de ce marché. RESUMEN El artículo de Stephany Griffith?Jones examina el caso de Costa Rica en el contexto del Plan Brady. Este paquete tiene elementos de substancial reducción de la deuda y de su servicio, sin “dinero nuevo” de los bancos privados. Analiza las características particulars de Costa Rica, tales como el pequeño volumen del total de la deuda y su importancia geopolítica para los Estados Unidos, lo que junto con la capacidad negociadora del gobierno parecen explicar la alta calidad del paquete

Debt Relief for Child Development

SUMMARY Stephany Griffith-Jones' article examines the donations of Sudanese debts to UNICEF by Midland and other banks, and their use by UNICEF to expand its spending on clean water and reforestation projects in Sudan. The article also examines a new Inter?American Development Bank/UNICEF scheme for swaps in Latin America. RESUME Une baisse du déficit pour le développement des enfants L'article de Stephany Griffith?Jones examine les donations faites à l'UNICEF par la Banque “Midland” et d'autres banques au Soudan, et l'utilisation qu'en fait l'UNICEF pour élargir sa participation à installer l'eau potable et à des projets de reboisement au Soudan. L'article fait également l'étude d'un projet de développement inter?Americain banque/UNICEF pour un échange de dettes contre développement en Amérique Latine. RESUMEN Alivio de la deuda para el desarrollo de la infancia Este artículo examina las donaciones de la deuda sudanesa hecha por el Midland y otros bancos a UNICEF y el uso que esta institución ha hecho para expandir sus gastos en proyectos de agua potable y reforestación en Sudán. También analiza un nuevo esquema UNICEF/Banco Interamericano de Desarrollo para el enroque deuda/desarrollo en América Latina

GDP-Indexed Bonds: Making It Happen

There has been increasing interest in exploring financial instruments that could limit the cyclical vulnerabilities of developing countries and reduce the likelihood of defaults and debt crises. GDP-indexed bonds fall into this category and may also generate a wider range of benefits for issuer countries, investors and the global financial system. The authors also examine the concerns and obstacles relating to the introduction of this instrument, suggesting that some may be exaggerated while others could be overcome. The paper calls for international public action to help develop markets for GDP-linked bonds and proposes a number of actions, some of which would require collaboration between Governments, multilateral development banks and the private sector.GDP-indexed bonds, cyclical vulnerabilities, issuers, investors, public good, international public action

The New Basle Capital Accord and Developing Countries: Issues, Implications and Policy Proposals

Risk-management, Internal-ratings, Pro-cyclicality, Net impact

International Monetary and Financial Issues for Developing Countries after UNCTAD V

SUMMARY This article describes and evaluates the main international monetary and financial issues discussed at UNCTAD V. One of the Conference's main achievements was the attempt by the Group of 77 to elaborate a more comprehensive critique of the existing financial system than they had previously done. After an analysis of the UNCTAD V critique of IMF policy, proposals for more concrete modifications of IMF conditions are suggested here. The UNCTAD proposal for a ‘massive transfer of resources’ is examined in the light of former experiences of massive aid; the need to consider the almost inevitable link between large volumes of aid and an increase in the conditions imposed by donor countries is stressed. Some issues and problems raised by the recent large growth of developing country borrowing from private multinational banks are discussed here, even though they were hardly mentioned at UNCTAD V. It is suggested that, to avoid conditions being imposed on developing countries by financial institutions controlled by developed countries, alternative financial institutions collectively run by the Third World could be created. RÉSUMÉ Les questions financières et monétaires internationales pour les pays en développement après la cinquième CNUCED Cet article décrit et évalue les principales questions financières et monétaires internationales débattues à la cinquième CNUCED. L'une des principales réalisations de la Conférence a été la tentative faite par le Groupe des 77 pour élaborer une critique plus exhaustive du système financier international. Aprèsune analyse de la critique de la politique du FMI, viennent des propositions visant des modifications plus concrètes des conditions imposées par celui?ci. La proposition de la CNUCED relative à un ‘transfert massif de ressources’ est examinée à la lumière des expériences antérieures d'aide massive; l'article souligne à cet égard la nécessité de prendre en compte le lien presque inévitable entre l'intensification de l'aide et l'imposition de conditions plus lourdes par les pays donateurs. Certaines des questions soulevées par la rapide croissance des emprunts des PVD auprès de banques transnationales privées sont étudiées ici, bien qu'elles aient été à peine mentionnées à la CNUCED. Il est suggéré que pour éviter l'imposition aux PVD de conditions exigées par les établissements de financement contrôlés par les pays développés, on pourrait envisager de créer des établissements financiers gérés collectivement par le tiers monde. RESUMEN Aspectos financieros y monetarios internacionales para los países en vías de desarrollo después de la UNCTAD V En este artículo se describen y evalúan los principales aspectos financieros y monetarios internacionales debatidos en la UNCTAD V. Uno de los principales éxitos de la conferencia fue la la tentativa del Grupo de los 77 de elaborar una crítica más completa sobre el sistema financiero actual que lo habían hecho anteriormente. Después de un análisis de la crítica de la UNCTAD V sobre la política del FMI, se sugieren aquí propuestas para modificaciones más concretas de las condiciones del FMI. La propuesta de la UNCTAD para un ‘traspaso masivo de recursos’ se examina teniendo en cuenta las anteriores experiencias de la ayuda masiva y se pone de relieve la necesidad de examinar el vínculo casi inevitable entre una ayuda muy amplia y un aumento en las condiciones impuestas por los países donantes. También se analizan en este artículo algunos puntos y problemas suscitados por el gran aumento reciente de los fondos que han tomado prestados los países en vías de desarrollo de los bancos privados multinacionales, aunque apenas se mencionaron en la UNCTAD V. Se sugiere que para evitar que las instituciones financieras controladas por los países desarrollados impongan condiciones sobre los países en vías de desarrollo, podrían crearse instituciones financieras alternativas regidas de manera colectiva por el Tercer Mundo

A counter-cyclical framework for a development-friendly international financial architecture

The major task of a development-friendly international financial architecture is to mitigate pro-cyclical effects of financial markets and open “policy space” for counter-cyclical macroeconomic policies in the developing world. This paper explores a series of policy instruments for this purpose: counter-cyclical prudential regulatory and supervisory frameworks; market mechanisms that better distribute the risk faced by developing countries through the business cycle; multilateral instruments that encourage more stable private flows; and better provision of counter-cyclical official liquidity. It also suggests that regional macroeconomic consultation, and common reserve funds or swap arrangements among developing countries can play a role in this regard.volatility, contagion, financial crises, counter-cyclical macroeconomic policies, counter­cyclical prudential regulation, GDP-indexed and local currency bonds, regional macroeconomic cooperation.

Capital account regulations for stability and development: a new approach

This repository item contains a single issue of Issues in Brief, a series of policy briefs that began publishing in 2008 by the Boston University Frederick S. Pardee Center for the Study of the Longer-Range Future.In the wake of the financial crisis numerous emerging market and developing countries have been deploying what have traditionally been referred to as ‘capital controls’ to curb excessive speculation on their currencies and domestic assets. In response to those efforts, French President Nicolas Sarkozy called on the International Monetary Fund to develop a set of guidelines for the use of capital controls. The goal is for the President to present such guidelines at the G-20 Summit in Cannes this year. The IMF has published a preliminary set of guidelines to that end. This policy brief provides a critical review of those guidelines and offers an alternative protocol for a development friendly-approach to capital account regulation. In this policy brief, the co-conveners of the Pardee Center Task Force on Managing Capital Flows for Long-Run Development argue that capital account regulations (CARs) should be viewed as an essential tool in the macroeconomic policy toolkit. Based on discussions that occurred at the Task Force meeting in September 2011, the authors present an alternative set of guidelines for how and when CARs should be employed, and call for international financial institutions and international trade agreements to ensure that policy space remains available to allow developing countries to employ CARs when deemed necessary for financial stability and economic development