Donors' Support for Microcredit as Social Enterprise: A Critial Reappraisal

microfinance, microcredit, poverty, microenterprises, donor assistance, aid effectiveness

Debt Dynamics and Contingency Financing: Theoretical Reappraisal of the HIPC Initiative

Sovereign debt management, External debt, Foreign aid, Growth models, Economic development

A Quest for Pro-Poor Globalization

pro-poor globalization, inequality, poverty

The Case for an Intermediate Exchange Rate Regime with Endogenizing Market Structures and Capital Mobility

Set in the context of the recent theoretical and policy debates on appropriate exchange rate regimes for emerging market economies in a world of free capital mobility, the paper attempts to present the case for an intermediate exchange rate regime, drawing on recent theoretical and empirical literatures on behavioural finance and currency market structures; and to examine empirically the experiences and evolution of Brazil.s foreign exchange market under different exchange rate regimes.exchange rate management, emerging markets, Brazil

Financial Globalization and Economic Development: Toward an Institutional Foundation

On the promise of enormous benefits from financial openness, many developing countries have embraced financial globalization by adopting internal and external financial liberalization. Yet, despite the rhetoric of its proponents, there is little evidence of enhanced development finance or any concomitant improvement in economic development. We critically examine the mainstream theoretical rationale for financial globalization and liberalization as well as their explanations of the widespread financial instability and crises that have been associated with financial openness. The paper also draws on broader theoretical traditions to explain the ubiquity of recent financial crises. Pointing to an alternative more dynamic analysis of the symbiotic relationships between finance and economic development, we propose an institutional-centric approach that forms a basis for understanding the transformation required for financial development. For development to occur, financial flows need to feed into real sector circuits to enhance expansion and accumulation, whilst national flows need to tap into international flows to complement the speed and capacity of the domestic flows.Developing Countries; Development; Finance; Financial Liberalization

A quest for institutional foundations towards inclusive development in Sub-Saharan Africa

The paper explores the paths towards building institutional foundations for inclusive development in Sub-Saharan Africa. Viewing institutional configurations as a system of multiple equilibria, the concepts of endogenous institutions and institutional changes are used to address the question of how to build institutional foundations on a self-sustained basis. The paper discusses how institutional configurations have been shaped in Sub-Saharan Africa under prevailing domestic and international conditions. A resulting negative feedbacks loop in public-private interfaces has been detrimental to inclusive development. To overcome this, a strong coalition between governments and stakeholders should be developed as a social contract embedded in the taxation-public goods provision nexus

Channels and Policy Debate in the Globalization-Inequality-Poverty Nexus

globalization, growth, inequality, poverty

Exploring macroeconomic frameworks conducive to structural transformation of sub-Saharan Economies

The conventional macroeconomic policy framework, with its focus on maintaining macro stability is inadequate for the purpose of accelerating the structural transformation of African economies. This ‘policy position’ paper explores an alternative framework, wherein macroeconomic policies are applied coherently to one another and in coordination with other policies, and a resolution of the short-run trade-off between the macroeconomic policy objectives of stabilisation and development is sought in terms of a long-term development approach for enhancing both aggregate demand and supply capacity as an anchor for navigating a path towards structural transformation. After presenting a working definition of structural transformation, the paper presents the core elements of such a framework and discusses the corresponding policy agenda under five headings. Using this agenda as a benchmark, it discusses how to approach the debates on fiscal, monetary and financial policies, avoiding the limitations of standard macroeconomic literature, in order to make those policies conducive to Africa’s structural transformation

Institutional Analysis of Financial Market Fragmentation in Sub-Saharan Africa: A Risk-Cost Configuration Approach

financial markets, institutions, risk-cost analysis, sub-Saharan Africa

Linking Globalization to Poverty

While the economic opportunities offered by globalization can be large, a question is often raised as to whether the actual distribution of gains is fair, in particular, whether the poor benefit less than proportionately from globalization and could under some circumstances be hurt by it. This Policy Brief summarizes and examines the various channels and transmission mechanisms, such as greater openness to trade and foreign investment, economic growth, effects on income distribution, technology transfer and labour migration, through which the process of globalization affects different dimensions of poverty in the developing world.globalization, growth, inequality, poverty, pro-poor, distribution, labour mobility, capital, technology, vulnerability,