Foreign direct investment, Business Economics

The Basic assumption which underlay the government of international economy has been that the economies of the world would converge around a capitalist model. The details of such a capitalist model might differ but the essentials would remain the same: market allocation of resources, Privatization of state owned assets, preference for private investment over state direction of the economy. This model was sufficiently flexible that it could encompass different style if capitalism: the free market of the U.S., the social market of Europe, state directed capitalism of Japan and South Korea, the hybrid economy of China.

Beginning with secretary of the Treasury Baker's speech in Seoul Korea in October 1985 to joint annual meeting of the World Bank and IMF, the United States determined the use of the IFIs to impose a single model of capitalism on their borrowing member countries: the United States model. The principles outlined in Baker speech were then codified in Washington Consensus and became the basis of the "conditionality" which attached to the financing of the World Bank and IMF.

What were the Factors that led to undermining this strategy? Can the tolerance for different strategies of development be reconciled with desire for a rule based system of international trade? Does a tolerance for different strategies of development undermine the conditions which have accompanied IFI financing of the 80s and 90s? Do you see a role for the IFIs in the future? If so, what is it?

Posted Date: 5/8/2013 2:44:32 AM | Location : United States







Related Discussions:- Foreign direct investment, Assignment Help, Ask Question on Foreign direct investment, Get Answer, Expert's Help, Foreign direct investment Discussions

Write discussion on Foreign direct investment
Your posts are moderated
Related Questions
factors that affect the volume of production in economy

Explain about theories and models linked to development. • There is no one agreed theory of development. All models, as Rostow, provide an insight in one or two dimensions of t

Is dependency a problem in Less Developed Countries? Problem: DCs exploit Less Developed Countries by extracting their surplus value. This value becomes the difference among

What is the social capital? Social Capital: Social capital is related with Putnam: Social capital considers to as features of social life as networks, norms and trust whi

Capital gains and losses are regarded as wind falls. Fluctuation in the stock market prices in one of the most common sources of the wind falls. In a progressive society accordin

using 8 units of production resource to produce 10,000 c0ws by a farmer how many sheep could he have produced

You are given the following functions in a fully competitive market: Market demand function: Qd = 20 – 3P Market supply function: Qs = 4 + P Where P is price A) In which price s

First, explain the concepts of income, wealth and money and show how each is related to the other. Next, explain the concept of the monetary base and indicate its economic signific

QUESTION 1 (a) Explain the meaning of asymmetric information, adverse selection and moral hazard and their implications on the role of commercial banks in the financial interme

Situation: Only a few astute operatives say the crash in real estate prices as the USA entered the summer of 2007.  You were one of the few that appreciated that real estate price