Fighting Global Poverty: Economic Policy Strategies for Developing Countries

Description

This book presents paths developing countries can pursue in order to reclaim their ability to take action and improve people’s living conditions in the long term. According to dominant economic theory, markets are the essential engines of growth and poverty reduction in developing countries. However, the track record so far is disappointing. On the other hand, poor countries, which are exposed to the dynamics of global capitalism, have little chance to implement alternative development strategies. Policy actions for a fairer income distribution or for more public investment run the risk of being punished by financial markets and capital flight. The book presents solutions to these issues, considering key economic foundations, and outlining feasible development strategies. It is, therefore, a must-read for policy-makers and practitioners working on fighting global poverty, as well as scholars and students of economics, interested in a better understanding of development economics, economic growth, and financial economics. Abstract Contents Chapter 1: Introduction Chapter 2: Are Current Policies on Track to Eliminate Poverty? References Chapter 3: How Mainstream Economics Works References Chapter 4: Basic Principles to Understand Macroeconomics 4.1 Money 4.2 Production, Not Only Exchange 4.3 Profitability References Chapter 5: Markets Alone Make No Development 5.1 The Role of Policy Intervention in the Economic System 5.2 How the Mainstream Argues Against Policy Intervention 5.3 The Private Sector Benefits, Too: Crowding-In 5.4 Active Economic Policy for Development References Chapter 6: Developing Countries in Global Capitalism 6.1 International Trade and Financial Flows 6.2 Explanation of Exchange Rate Fluctuations 6.3 No Trade Equilibrium Guaranteed 6.4 Trying to Control the Exchange Rate 6.5 Capital Controls as Part of the Solution 6.6 The Balance-of-Payments Restriction 6.7 Global Markets Make Economic Policy Powerless 6.8 Trade and Financial Liberalization Cannot Solve the Problem References Chapter 7: Reclaiming Economic Policy 7.1 Interest on External Debt Is Paid Twice 7.2 Deficit Countries in a Vicious Cycle 7.3 The Keynes Plan 7.4 The One-Country Solution Example 7.5 Exchange Rate Stability and A Growing Resource Pool Example 7.6 Making Capital Flight Harmless References Chapter 8: Macroeconomics for Development References Chapter 9: Economic Growth Forever? References Chapter 10: New Perspectives