Front Matter
Author:
Mr. David A Lipton
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Language:
English
Keywords:
SPE; client country; economy; position of the IMF; The Treasury; country
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Abstract

This paper explores how poor countries might take advantage of globalization to raise their living standards and converge toward the advanced economies. The poor country, which has cheap labor and inadequate capital, acquires the supe¬rior technology that the rich country has. With everyone rationally expecting greater things in the poor country, investment there takes off. People in the rich country save more to invest and take advantage of the new higher returns in the poor country. The poor country runs a substantial current account deficit and imports needed capital that the rich country happily, and profit¬ably, provides. The developing countries showed limited willingness and capacity to open up to competition. They had only a limited ability to attract foreign investment. The IMF ended up studying why some members failed to progress despite prolonged use of IMF resources. The Philippines, for example, had about 20 nearly consecutive IMF lending programs.

David Lipton

Can Globalization Still Deliver?

The Challenge of Convergence in the 21st Century

Peterson Institute for International Economics Washington, D.C. · May 24, 2016

IMF First Deputy Managing Director David Lipton delivered this speech at the 16th Annual Stavros Niarchos Foundation Lecture series at the Peterson Institute for International Economics in Washington, D.C., on May 24, 2016, where he was introduced by former U.S. Secretary of the Treasury Lawrence Summers

Copyright © 2016

International Monetary Fund

Washington, D.C. 20090, U.S.A.

All Rights Reserved.

ISBN: 978-1-51354-912-5 (paper)

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Contents

  • Introduction

  • Can Globalization Still Deliver? The Challenge of Convergence in the 21st Century

    • From Theory to Practice

    • Global Reality Bites

    • The “Rise of China” and “Africa Rising”

    • From Global Financial Crisis to the New Mediocre

    • Emerging and Developing Economies— Struggling to Catch Up

    • Collective Action

    • Looking on the Bright Side

    • Political Economy Challenges

    • Conclusion

  • Collapse
  • Expand
Cover Can Globalization Still Deliver? The Challenge of Convergence in the 21st Century
Can Globalization Still Deliver? The Challenge of Convergence in the 21st Century
Author:
Mr. David A Lipton
ISBN:
9781513549125
Publication Date:
18 Jul 2016
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781513549125.076
Pages:
16