Market-Friendly Reforms:

One main shortcoming of present development cooperation is that recipients of development cooperation is that recipients of development finance are denied any form of protection usual in all other cases. This shows in cases of violation of membership rights as well as regarding professional best practice. Damage done by grave negligence must always be compensated unless done the contest of development cooperation. Donors and multilateral institutions are totally exempt from any liability. 

The increased role of the BW institutions in international capital markets since 1982 contrasts sharply with a total lack of financial accountability. They may and often do gain institutionally and financially from crisis or from their own errors and failures, even if they cause damages by grave negligence. Another loan may be granted to repair damages done by he first loan, increasing the institutions income stream - a severe moral hazard problem and an economically totally perverted incentive system. 

International financial institutions should be held financially accountable, differentiating between programmes and projects. To increase BW institutions efficiency and to improve their role in capital markets, market incentives must be brought to bear. The international public sector must become financially accountable for their own errors in the same way as consultants are liable to pay damage compensation if / when negligence on their part causes damage.

Posted Date: 11/9/2012 6:39:33 AM | Location : United States

Ask an Expert

Related Discussions:- Market-friendly reforms, Assignment Help, Ask Question on Market-friendly reforms, Get Answer, Expert's Help, Market-friendly reforms Discussions

Write discussion on Market-friendly reforms
Your posts are moderated

Write your message here..

Related Questions

Difference between accounting profit and economic profit, Difference betwee... Difference between accounting profit and economic profit: The difference between accounting profit and economic profit is that economists include in total cost of production b

Explain the concept of opportunity cost, The concept of opportunity cost oc... The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed

What is meant by the circular flow of income, Problem 1: a. Briefly exp... Problem 1: a. Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. b. According to you, which type of economic system is most desira

Net exaim help, net preparation ranjna baghel net preparation ranjna baghel

Public goods, True public goods are those goods which can't be provided to ... True public goods are those goods which can't be provided to one group of consumers, without being provided to any other consumers who desire them. Thus they are "non-excludable."

Scitovsky contour, I don''t really understand how scitovsky contour is form... I don''t really understand how scitovsky contour is formed.

How to manufactured capital and natural capital, What two measures have bee... What two measures have been developed in recent years that subtract for the depreciation of both manufactured capital and natural capital? The environmentally adjusted Net Dome

Supply decisions, \-6 6\ Why\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\... \-6 6\ Why\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

Economic reforms and foreign investment inflows, Economic Reforms and Forei... Economic Reforms and Foreign Investment Inflows: A major objective of economic reforms was to increase foreign investment, which helps to increase capital formation of the eco

Find out market equilibrium price and quantity , Question Suppose you w... Question Suppose you work for the state government of California. Due to the heavy traffic jam on I-880, the state has decided to decide to construct a new highway. To fund a p