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The article discusses the neoconservative foreign policy and the New International Economic Order (NIEO) established in 1974 by the United Nations (UN) General Assembly. Topics explored include the reform of postwar economic order proposed by Third World representatives, the way neoconservatives acknowledged the revolutionary threat associated with NIEO with regard to the global power of the U.S., the conflict between then U.S. Ambassador to the UN Daniel Patrick Moynihan and U.S. State Secretary Henry Kissinger on NIEO policies, and the concerns raised by neoconservatives over U.S. foreign policies pertaining to the NIEO.

This article examines the economic development of Turkey from a comparative global perspective. With the help of GDP per capita and other series, it shows that Turkey's record in economic growth and human development since 1820 has been close to world averages and a little above developing country averages. The early focus of the article is on the proximate causes—average rates of investment, below‐average rates of schooling, low rates of total productivity growth, and low technology content of production—which provide important insights into why GDP per capita increases were not any higher. For the deeper causes, the article emphasizes the role of institutions and institutional change. Turkey's formal economic institutions had been influenced by international rules since the nineteenth century, and these rules did not always support economic development. Turkey's elites also made extensive changes in formal political and economic institutions. Formal institutions were only part of the story, however. The direction of institutional change also depended on the political order and the degree of understanding between different groups and their elites. When the political system could not manage the recurring tensions and cleavages between the different elites, economic outcomes suffered. [ABSTRACT FROM AUTHOR]

Mobilizing sufficient domestic and external resources to finance development goals is an intimidating task globally, especially in conjunction with the shortfalls in traditional resources that are no longer enough to bridge the ongoing financing gap in emerging and developing countries. This fact explains the scaled up interest in innovative financing for development as a new pragmatic approach to meet the sustainable development plans. Financing for development and the optimal exploitation of financing resources in boosting economic growth became a priority for developed and developing nations. In this regard, this study aims at testing the efficient utilization and exploitation of finance resources in a small open economy - namely Lebanon, with particular focus on the effect of these resources on economic activity represented by the central bank of Lebanon Coincident Index. The study exploits monthly data covering the period January 2002-June 2017 for: banking sector credit to resident private sector, FDI, remittances, government credit transfers, trade, government tax revenues, government expenditures, and public debt, as explanatory variables. Using a Vector Autoregressive framework, the empirical results reveal that both bank credit to resident private sector and government tax collections lower economic growth, while FDI promotes this growth. On the other hand, remittance inflows, government credit current transfers, external trade, government expenditures, and public debt do not affect significantly economic performance. The feedback effect running from economic growth to the exploited independent variables shows the following: (1) economic growth boosts bank credit supply firstly, then lowers the demand for these credit; (2) a slowdown of economic activity may boost foreign direct investment as the costs of capital and labor decline; (3) an improvement in economic performance allows the government to collect more taxes, and rely less on (or maybe become less illegible for) foreign grants and donations; (4) an increase in national output results in a lower reliance on importation, resulting in a decline in external trade. [ABSTRACT FROM AUTHOR]

The flows of foreign direct investment (FDI) to developing economies have been considered important for sustainable growth as they enhance job creation and the transfer of technology and management expertise. As a result, the attention of scholars has been drawn to examining the relationship between FDI and growth resulting in several studies in this area. Notwithstanding, few studies have been carried out on the impact of FDI on real sector growth, particularly in the Nigerian economy. Hence, this study examines the effect of FDI on the real sector in Nigeria between the periods 1981-2016 using the impulse response function (IRF) and variance decomposition (VDC) of VAR. The study found that agricultural sector output responded positively to shocks in FDI inflows but it was statistically insignificant. The IRF also revealed that industrial sector output responded positively to shocks in FDI and it was statistically significant. This presupposes that the inflows of foreign direct investment have positive effects on the growth of the industrial sector in Nigeria. The VDC showed that FDI inflows exert influence on both the agricultural sector output and industrial output. However, FDI inflows influence the industrial sector output in a greater proportion than the agricultural sector. Using the VAR Granger causality, the study also found that while FDI inflows cause growth in industrial sector output, they, however, do not cause growth in agricultural sector output. The implication of the study is hinged on the fact that FDI inflows have not been driving the growth of the agricultural sector in Nigeria. This could be adduced to some structural bottlenecks besetting the growth and competitiveness of the sector, which have made the sector unattractive to foreign investors. The study, therefore, recommends that the government should greatly invest in rural infrastructure development that will encourage foreign investment. Also, the government should intensify research and development institutions in order to seek new knowledge and enhance innovation in the agricultural sector. [ABSTRACT FROM AUTHOR]

Income risks and expectation about future income play a fundamental role in the decision making of households. The analysis of income risk is particularly important for developing countries, where incomes are more volatile than developed countries, and credit and insurance markets are inadequately developed, limiting opportunities available to households to diversify their risks. When households have inadequate opportunities to diversify their risks, income risks may lead to relatively high fluctuations in consumption and thus greater levels of transient poverty. This may also lead to a poverty trap, as poor households may enter low-risk, low-return activities, and low-return and less capital-intensive activities. This paper analyses the pattern and determinants of (perceived) expected income and income risk in rural India. It uses unique primary survey data eliciting subjective income distribution from households in twelve villages in Bihar. The sample consists of 659 households with approximately 4,100 household members. The survey was designed to elicit the cumulative distribution function (cdf) of future household income. Using this information, it constructs household-specific subjective expected future income, its variance and coefficient of variation. It finds that both expected future income and income risks (variance and coefficient of variation) differ substantially across households. Both expected future income and its variance increase with current income, however, there is a significant negative association between the coefficient of variation of future income and current income, suggesting that low-income households face greater variability in their income. Upper caste households and households reliant on non-agricultural income have significantly higher expected future income and variance. To the extent income risks lead poor households to choose low income and low risk activities, public policies designed to reduce these risks, such as provision of insurance (e.g. rainfall insurance) and easier availability of consumer credit are likely to have a significant effect on poverty and inequality. Microfinance institutions and nongovernmental organizations can play an important role in the provision of insurance and labour market information. Public investment in irrigation, better weather information, and employment guarantee schemes, such as the National Rural Employment Guarantee Act, can reduce income and consumption risk. [ABSTRACT FROM AUTHOR]

The article explains the Bottom-of-the-Pyramid (BOP) business concept which was introduced by C. K. Prahalad and S. L. Hart. BOP contends that there is purchasing power and market opportunities in developing countries, that consumers are value-conscious and entrepreneurial, and that multinational business enterprises can help reduce poverty, as well as make significant profits from selling products to low-income consumers. The implementation of BOP strategies in Novozymes, a Danish biotechnology company, and the four organizational barriers that challenged the BOP project are discussed.

The article focuses on the outlook for capitalism in the 21st century and for prosperity in developing countries such as Brazil, Russia, India, and China which are referred to as the BRIC world. The influence of civil society, the not-for-profit sector, and non-governmental organizations on a country's transition from a state-controlled economy to a market economy is discussed, as well as the role of multinational business enterprises in the formation of civil-society institutions and on the stabilization of socioeconomic conditions in BRIC countries. The state's role in intervening and regulating its national economy in statist capitalism is also discussed.

The article discusses the role of market-driven forces in the alleviation of poverty. The authors focus on strategic business models that encourage better distribution of resources to the urban poor in order to provide access to the open market. Details are provided regarding the global poor in developing countries and the challenges that face proper distribution, including inadequate civil infrastructure, illiteracy, and underdeveloped skills. The authors suggest strategies to improve distribution including the elimination of distributive costs, creating new routes through which resources are distributed, and increasing private sector investing. Also discussed is the example of the Imperial Tobacco Company (ITC) Ltd. in alleviating poverty through the trading of commodities.

The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural experiment: not only did minimum wages in Indonesia increase sharply between 1990 and 1996, but the resultant increment in average wages varied markedly across different areas in Greater Jakarta. The authors use household-level labor market data to determine the extent of compliance with the legislation, then estimate the employment impact in the clothing, textiles, footwear, and leather industries based on a census of all large and medium-sized establishments. The evidence suggests that there was no negative employment impact for large establishments, either foreign or domestic, but that workers in smaller, domestic establishments may have suffered job losses as a result of minimum wage increases. [ABSTRACT FROM AUTHOR]

Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. We analyze the impact of these factors on Latin American bank spreads during the late 1990s. Our results suggest that foreign banks were able to charge lower spreads relative to domestic banks. This was more so for de novo foreign banks than for those that entered through acquisitions. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related to both higher spreads and costs. [ABSTRACT FROM AUTHOR]

In countries with more secure property rights, firms might allocate resources better and consequentially grow faster as the returns on different types of assets are more protected against competitor's actions. Using data on sectoral value added for a large number of countries, we find evidence consistent with better property rights leading to higher growth through improved asset allocation. Quantitatively, the growth effect is as large as that of improved access to financing due to greater financial development. Our results are robust using various samples and specifications, including controlling for growth opportunities. [ABSTRACT FROM AUTHOR]

We propose that the limited financial development of emerging markets is a significant factor behind the large share of dollar-denominated external debt present in these markets. We show that when financial constraints affect borrowing and lending between domestic agents, agents undervalue insuring against an exchange rate depreciation. Since more of this insurance is present when external debt is denominated in domestic currency rather than in dollars, this result implies that domestic agents choose excessive dollar debt. We also show that limited financial development reduces the incentives for foreign lenders to enter emerging markets. The retarded entry reinforces the underinsurance problem. [ABSTRACT FROM AUTHOR]

The paper reviews the main challenges faced by policymakers in emerging market economies, EMs, in light of recent financial crises, and taking into account salient factors like the existence of partial dollarization, imperfect credibility, weak financial systems, and contagion. The standard theory of optimal currency areas is discussed and criticized for omitting the above factors. When these factors are taken into account, an extreme foreign exchange regime like dollarization is shown to become much more attractive. The paper discusses the pros and cons of dollarization and, among other things, shows that the lack of a lender of last resort is not necessarily a major drawback in EMs. The paper also discusses inflation targeting, IT. In a formal model, it is shown that IT could be subject to credibility problems similar to those found in exchange rate-based stabilization programs. [ABSTRACT FROM AUTHOR]

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Of the 17 Sustainable Development Goals articulated by the United Nations, number one is the elimination of extreme poverty by 2030. While future economic growth should continue to reduce poverty, it will not solve the problem by itself; thus, there is a potentially important role for national-level transfer programs that assist poor families in developing countries. Such programs are often run by developing country governments. Many countries have implemented transfer programs that seek to target beneficiaries: that is, to identify who is poor and then to restrict transfers to those individuals. Some people have begun to advocate for "universal basic income" programs, which dispense with trying to identify the poor and instead provide transfers to everyone. We begin by considering the universal basic income as part of the solution to an optimal income-taxation problem, focusing on the case of developing countries, where there is limited income data and inclusion in the formal tax system is low. We examine how the targeting of transfer programs is conducted in these settings, and provide empirical evidence on the tradeoffs involved between universal basic income and targeted transfer schemes using data from Indonesia and Peru—two countries that run nationwide transfer programs that are targeted to the poor. We conclude by linking our findings back to the broader policy debate on what tools should be preferred for redistribution, as well as the practical challenges of administering them in developing countries. [ABSTRACT FROM AUTHOR]

This essay aims to deepen our comprehension of the economic ethics of different peoples in Asia, as well as realizing a degree of cultural relativism, in order to enhance amicable economic associations. It counterbalances the conventionally strong West-oriented views which regard exotic features of non-Western economies as backward and illogical elements that disturb smooth and orthodox development and, hence, should be eradicated. The author, first, recalls a number of facts which depict the eruptive economic transformation in Asia. He, then, criticizes the imposition of Western-style development and exploitation without excluding Japan's colonialism in Taiwan and Korea, and pleads for multiple forms of development and modernity. Economic transactions should be analysed in relation to sociocultural aspects, and, therefore, communities and ethics groups play a substantive role between the public and private sectors, the market, and individuals. For instance, small farmers in Southeast Asia, struggling with the weakness of tenant farmers and pressures of the market mechanism, developed ingenious and participatory forms of survival, increasingly supported by non-governmental organizations. Case studies from Thailand, Malaysia, and the Philippines give a vivid picture of these activities. Because the developing economies are composed of market and non-market sectors, reasonable attention should be given to the ethics beyond market principles, with particular emphasis on community as foundation. [ABSTRACT FROM AUTHOR]

Drawing both on the literature as well as field research on companies operating in transitional economies, this article describes the ways in which marketing environments in transitional economies are typically different from those in more developed countries, as well as recent trends in these environments. Managerial implications concerning appropriate marketing strategies and tactics are then drawn, both for multinationals operating in transitional economy markets as well as local companies. [ABSTRACT FROM AUTHOR]

Joint ventures predominate in business formats used by multinational corporations in developing countries. It is believed that joint ventures in these countries suffer more conflicts and performance problems than joint ventures in developed countries. However, there is little empirical research into understanding the nature of joint venture problems in less developed countries. Furthermore, what little research exists examines the issue from the perspective of the parent company at the expense of the local partner's point of view. The study reported here is intended to fill this void. Specifically, the study examines severity of various conflicts in Saudi-U.S. joint ventures operating in Saudi Arabia from the perspective of Saudi partners. Three critical sources of conflict are identified and analyzed in detail. The discussion concludes by recommending a dynamic approach to conflict management with a special emphasis on developing communication capabilities. [ABSTRACT FROM AUTHOR]

The article presents an exploration into the addressing of the sovereign debt issues of developing countries which have failed to meet external debt contract requirements. Discussion is given outlining several ameliorative policies, such as debt forgiveness, additional fund allocation, and rescheduling as alternatives to declarations of default. Particular challenges of debt overhang are mentioned. Examinations are also given into the enforceability of debt contracts through export production management and the tradeable goods sector.

The author discusses the article "Inefficiencies from Financial Liberalization in the Absence of Well-Functioning Equity Markets," by Cho Yoon Je, which appeared in the May 1986 issue. Cho argued that economic development in developing countries was predicated on the development of an efficient financial system which includes equity markets. He argued against the liberalization of private sector banks to avoid adverse selection and incentive effects. The author cites issues with principal-agent relationships, informational imperfections, and legal corporate structures such as limited liability companies.

The article examines the institutional constraints of monetary control in developing countries. A hypothesis is tested which claims that the seasonal reserve movements observed in Costa Rica, El Salvador, and Nicaragua in the 1950s were primarily caused by the liberal rediscounting policy followed by the central banks in these countries during that period. The movements in domestic credit which are associated with seasonal agricultural trade financing and the absence of monetary control in these countries have mostly proved the hypothesis.

The article discusses economic models with particular focus on the application of the Lucas closed economy model to small, specialized economy. The Lucas model was developed by Robert E. Lucas in 1973 in relation to theoretical island markets. The Lucas model focuses on understanding the fluctuations in cyclical production in a closed economy which come from domestic price level shocks. The model is used here to determine the essential factors of small developing economies which were found to be a high degree of specialization, export orientation, and price taking.

The article focuses on the relationship between financial conditions, savings behaviors, and economic growth. Empirical research of seven developing countries in Asia is provided to review the hypothesis of the influence real interest rates can have on a country's savings and growth patterns. Additional discussion is given regarding the theoretical debate between Robert I. McKinnon and Edward S. Shaw over the transmission media of such changes, contrasting demand for money constructions against self-financed investment models.

The article looks at how the balance of payment methods used in Brazil and Chile determines how the money supply is managed by the government, particularly what impact payment imbalances have on the supply. The economies of less developed countries (LDC's) such as those in South America have an interest inelastic money demand, meaning that alterations to economic policy often causes fluctuations in the interest rate. Many mathematical equations are used to examine the impact of international finance on the money supply and factors like interest rate, gross national product (GNP), exports, and balance of trade.

The article focuses on the interrelationships between money, credit, and banking. Discussed are the nature of credit control in developing countries. The article comments that credit controls are based on the theory that the private profitability to the banks and the social benefits are different in regards to loans granted to the different sectors. Article topics include the distribution effects of credit controls and the welfare costs. Also discussed are alternative approaches and political-economic considerations for credit control.

The article explains a technique for determining which developing countries have creditworthiness and which are likely to reschedule their debt by using historical precedent and a credit-scoring rule that classifies all observations as good risks. Other factors in the forecasting method include the individual country's per capita income and debt service ratio in its credit rating. The precedent-based approach reduces the error rate for predicting good risks. The ten explanatory variables, or debt-related characteristics, which are indicators of debt repayment prospects include the annual inflation rate, international reserves, and gross domestic product. The debt scores are given for 49 countries, which were calculated from 90 observations during the 1960 through 1975 period.

Several sets of results have been obtained which show the superiority of multinational diversification within an IU over investment in single countries, even if the portfolios are constrained to consist of equal proportions of stocks from each country. Although all the results reflect the difficulties of examining historical data to estimate future outcomes, their general agreement and consistency over time support the inference that an IU would result in considerable gains. The results of the multivariate analysis are especially important since they show that (1) substantial gains are likely to result from a wide range of investment strategies and that (2) the results are substantially the same for different time periods and can therefore be taken as predictions of the future with some confidence if interpreted in a general manner. The four countries chosen for this study probably do not form a viable grouping for an IU. However, the sample is sufficiently representative to show that, contrary to a common assumption, a great deal of diversification can take place among developing countries in a single geographical area. [ABSTRACT FROM AUTHOR]

Comments on the economic problems associated with the Third World. Distribution pattern of population growth; Rate of destruction and deterioration of tropical forests; Decline in the per capita food production in Sub-Saharan Africa.

The article focuses on technology as an important factor in the economic development of developing countries. The self-sufficiency of developing countries is posing a threat of the supremacy of the West, particularly that of the U.S. The role of technology in industrial development, creating employment and increasing trade has been explored by leaders of developing countries in the early 1970s. They wanted a minimum 25% increase in their output in manufactured goods of the world. Policy makers consider the fact that technology ultimately leads to economic development. The transfer of technology has affected the U.S. trade balance.

MNC-Third World business undertakings have often faced disappointing results. Partly because of this, the environmental forces in the developing nations have become more constraint-ridden for the operation of multinational firms. In this article, proposals are made on how the results of business co-operation between MNCs and Third World regions may be improved by attempting to structure appropriate linkages among product/market choices, types of business agreements and generic strategy considerations. [ABSTRACT FROM AUTHOR]

This article examines the budgetary process of the Confederate government, an aspect of the Confederacy generally ignored by Civil War historians. The budgetary process of the Confederacy resembled that employed by contemporary poor countries, and using a model of budgeting developed by Wildavsky, it is shown that the Confederacy's budgetary process should have been conflict-laden, as indeed it was. The Confederate budgetary process was repetitive in terms of both requests and appropriations, and since it lacked predictability, participants could not take their bearing from it. In addition to adding to our general knowledge about an important period of American history, this analysis describes how a budgetary process similar to the United States federal model operated under extreme pressure. Further, it gives an insight into the kinds of problems experienced by governments undergoing periods of development while experiencing extreme financial crisis. [ABSTRACT FROM AUTHOR]