1887

Trade and Development Report 2007

Regional Cooperation for Development

image of Trade and Development Report 2007

The current edition of the Report anticipates a fifth consecutive year of overall output growth and continued strong demand for primary commodities contributing to an overall increase in per capita gross domestic product in developing countries. The main risk to this positive scenario, the Report warns, is that a major recession in the United States could sharply curtail exports from China and India, which are setting the pace for this growth. The report says regional cooperation can help reduce the vulnerability of developing nations to current account imbalances such as that of the US, and also reduce their vulnerability to major shifts in exchange rates caused by speculative capital flows.

English

.

Regional financial and monetary cooperation

Financial and monetary cooperation has been a longstanding and repeatedly recurring issue in international economic integration. Long before modern pressures from a globalized market emerged, exchange of trade and services between countries with different monetary units has been accompanied by attempts to simplify the final settling of bills and to smooth the financial implications of real resource transfers. The leading idea behind international financial cooperation has been the conviction of early global traders that only a monetary system comparable in its efficiency to the monetary systems prevailing in the nation state would allow to exploit fully the benefits of a global division of labour. However, after the failure of early global monetary systems like the Gold Standard and the end of the most recent global monetary system, Bretton Woods, disintegration in monetary affairs has ruled the day.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error