Regionalization And Capital Movement

2276 words - 10 pages

Regionalization and Capital MovementIt is a well-known fact and dominant theory that development, defined as a process of improvements in a population's standards of living with associated structural or institutional change, requires access to and the accumulation of capital. Of course, capital, as wealth begetting wealth, or the sum total of society's productive resources, takes diverse forms: financial, physical, natural, human, and social. At issue in the development process is the accumulated stock of capital in these diverse forms, as well as their cross-national flows-international resource flows, if you will. As for money or financial capital, the most mobile form of capital, ...view middle of the document...

Another important factor in international resource transfers, or the flow of capital, is the composition of this flow. As indicated in the preceding table, some regions (e.g., sub-Saharan Africa) are more dependent on official financial resource transfers than private capital for their economic development. Elsewhere in the South, especially in Latin America, the dominant flow of capital is private and increasingly composed more of foreign direct investments and less of bank loans (debt financing) or official transfers. The reason for this, although not immediately evident from the data, has to do with the agenda of the World Bank and the International Monetary Fund in the 1980s: to push and pull Latin American governments into the "new world order" of globalized capital, deregulated markets, free trade, and private-sector-led development. The end result of these push and pull pressures was a deregulation of product, capital, and labor markets and a process of financial liberalization, as government after government in the region eliminated its restrictions on the operations of foreign direct investment. Much of this foreign direct investment was used not to induce a process of technological transformation, and thus increase productivity and economic growth, but to acquire the privatized public assets and forms put on the auction bloc in the 1990s.Conceptual OverviewThe 1980s gave rise to a counterrevolution, a movement to halt and backtrack on advances made all over the world on the basis of a state-led model of economic and social development. The counterrevolution included a call for a new world order in which global capital, the private sector, and trade would be allowed to operate free of restrictive government control in the search for profit, so as to usher in a new era of economic growth and general prosperity.Table 1 Capital Inflows: External Financing by Region in the Global South(U.S.$ billion)1995 1996 1997 1998 1999 2000 2001 2002 2003Latin America and the CaribbeanFDI 30.5 44.4 66.1 73.4 87.8 75.8 69.3 42.0 38.0Loans 61.3 36.0 24.3 37.9 12.3 -1.1 11.4 3.5 -Private 42.8 84.9 51.2 84.5 75.3 89.9 75.8 45.3 44.0Official 5.7 5.5 4.5 4.5 4.7 3.8 5.2 - -AsiaFDI 2.3 4.2 11.1 11.0 6.3 5.6 9.6 8.0 9.0Loans 5.2 0.1 -3.8 13.0 -1.7 -3.1 1.4 0.6 1.5Private 18.7 15.0 31.4 17.2 17.8 13.7 15.4 17.3 19.0Official 14.7 12.8 10.9 12.9 13.7 12.2 12.7 - -Sub-Saharan AfricaFDI 4.3 4.3 8.1 6.5 8.1 6.1 13.8 7.0 7.0Loans 7.6 3.2 4.5 -1.4 -0.9 -0.9 -1.0 0.2 -0.5Private 7.8 7.8 7.9 6.4 10.0 12.2 11.1 9.9 12.0Official 17.8 15.0 13.3 13.3 12.2 12.2 12.7 - -Source: World Bank, Global Development Finance (2004), pp. 181-186, 200. The tables combine the IMF's current account, foreign exchange, and net inward FDI data with the World Bank's portfolio equity/debtor reporting system (DRS) data to produce an overall tabulation of how regions finance themselves externally.Note: Private flows of capital recorded in this table occur in three basic forms and invo...


Strategic Directions-Formal And Informal

1536 words - 7 pages Free . A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis must be conducted to assess the firm's capabilities in relations to that of its competitors. Companies must develop their strategy around key strengths or core competencies. Their weaknesses must also be assessed. Poor judgment based on subjective reasoning must be avoided by acting on objective information.5) Discuss the relative advantages of globalization versus regionalization

“A Hanging” by George Orwell analysing the injustice of capital punishment - Higher English critical essay of A hanging - Essay

1599 words - 7 pages “A Hanging” by George Orwell is a piece of nonfiction which highlights the injustice of capital punishment. Through the clever use of language techniques such as symbolism, irony and metaphors Orwell skilfully engages the reader throughout his essay on the injustice of capital punishment. One of the key language techniques Orwell uses to sway readers is the use of descriptive language and setting. From the very onset Orwell hints at the issue of

World price of home bias critical review - Finance Waikato - Review

2231 words - 9 pages 410 critical review: The world price of home bias Cost of capital refers to cost of equity capital. Control for traditional risk proxies, country-specific characteristics and availability of market substitutions. Measure home bias by looking at how domestic mutual funds in different countries allocate their equity portfolios between domestic and foreign stocks. Analysis would be more accurate if they were based on individual and institutional

final exam for gust students spring - gust finance 301 - exam

2105 words - 9 pages ) Restructuring debt B) Ratio analysis C) Recapitalizing assets D) Capital budgeting 2) Fixed assets that provide the basis for the firm's profit and value are often called A) non-current assets. B) book assets. C) tangible assets. D) earning assets. 3) The final step in the capital budgeting process is A) re-evaluation. B) implementation. C) follow-up. D) education. 4) A $60,000 outlay for a new machine with a usable life of 15

Historical Perspective Of Co-Operatives In Indian Context

6920 words - 28 pages impetus for organization of primary credit societies and stress was laid on promoting agricultural credit. There were 8187 societies by 1912, which had a membership of 4lakhs and working capital of 3357.7lakhs. One of the major features was that the government was the prime mover of this movement but the credit was marked by insufficiency and delay, and the recoveries were far from satisfactory.The loans system was also defective. Mr. C.S

Essay analysis of Lear and Gloucester - KU ENGL 350 - essay

760 words - 4 pages the ferocious lending strategies and foreign investments are consequence of a cultural zeitgeist that seeks to create more consumers and capital at any cost and will in turn push our planet and our societies to the brink of destruction for the benefit of a few plutocrats and oligarchs. The documentary presents an argument that I find myself agreeing with, however, the culprit is never named and even in other influential spheres of discussion the

Examine The Claim That Cities Have Recently Entered A "Postmodern" Stage In Their Development

1636 words - 7 pages passing of "modernity and modernism to postmodernity and postmodernism" (Featherstone, 1991).Various factors lead to the emergence of the Postmodernist movement. Among these is certainly the failure of much modernist housing projects for instance, but also the gradual process of deindustrialisation in cities (Harvey, 1989). These processes were accompanied by a change of values and the increased importance of cultural capital in urban areas as cities

business test review grade 12 unit 4 - business - review

592 words - 3 pages the economy begins to grow again Peak: The economy stops expanding and beings contracting Embassies: located in the capital cities of countries and provides a full range of services Develop Countries: First-World countries Developing Countries: emerging countries Undeveloped Countries: Third-World countries Dumping: Selling products in a foreign country below the cost of production in home country Globalization: The movement of the goods, services

Migration & urban slums in Nigeria & its environmental impact - University of Lagos, Department of Sociology, 300level - Assignment

3491 words - 14 pages the destruction of the urban landscape and aesthetics through environmental degradation such as erosion, indiscriminate dump of refuse, open defecation and many more. THE CONCEPT: MIGRATION Migration is simply the movement of people from one place to another involving a change of usual residence. From a technical point of view, Migration is conceived as a form of geographical or spatial mobility between one geographical entity and another generally

Information on three mile island - APUSH - Research Paper

1921 words - 8 pages mass movement creating Earth Day - Environmental Protection Agency - Environmental Protection Agency was bipartisan bill with wide support requiring developers to file impact statements assessing their project’s effect on ecosystem - Republicans and Democrats agreed but Corporations and workers opposed regulations believing that their jobs were threatened dividing nation - Nuclear Power - Seemed like godsend with oil crisis because didn’t produce

production possibilities curves - Year 11 - Essay

808 words - 4 pages , causing an outward movement of the production possibility frontier. In such case, the economy at Point A could move to Point C, and the economy at Point B could move to Point D, with both of the economies enjoying higher living standards now, but also increasing their productive potential in the future by increasing their production of capital goods. This means that both economies could enjoy higher living standards in the future. In conclusion

Efficient Market Hypothesis In Pakistan: Comparing Other Countries' Markets With Pakistan

5696 words - 23 pages capital markets.This report describes the basic concept of market efficiency and efficient market hypothesis and their implications.Other parts of report include the, forms of EMH along with their limitation including concept of risk, arbitrage and time value of money in it. Then it comes to the evidence based on the EMH from Ukraine, Africa and than Pakistan, and last session conclude the whole report.In conclusion some problems with the Pakistan

The Homestead Act

605 words - 3 pages reap in profits, and fraud and corruption, and often marked the process farmland for transportation (the railroads). The Homestead Act's biggest weakness however, was not taking into account conditions on the frontier. I also think that the eastern framers did not consider that some of their land was too large for irrigated farming and too small for dry farming. The role of the private capital in the American West was towards the rich. The poor

advatange and disadvantage for glabalization - Econ 251 - Essay

1120 words - 5 pages . - Globalisation has resulted in increased international trade, a company operating in more than one country, greater dependence on the global economy and free movement of capital, goods, and services. Advantage 1. Increase in economy of scales - Through globalization, When countries are specialized in producing the goods and services where they have a comparative advantage in producing at lowest opportunity cost, the fixed cost would be lower when there

The Tropicália Movement, Cultural Anthropophagism, and Sociopolitical Revolution in 1960s Brazil - Centre College - Humanities - Research Paper

3029 words - 13 pages The Tropicália Movement, Cultural Anthropophagism, and Sociopolitical Revolution in 1960s Brazil Matheus Marlisson Humanities 120 - Spring 2018 Dr. Seebacher May 2018 Music, since the colonization period, has been used as a tool of resistance that helped Brazilian marginalized groups to protest against the injustices they have faced in the course of their country’s difficult history. In 1964, however, this scenario changed drastically. A new