Fiscal and monetary policies and problems in developing countries
Consideration on the use of fiscal and monetary policies in less developed countries to overcome the three sets of obstacles to development largely because of socio-political constraints. The three major obstacles to development are: inadequate investment; misallocation of investment resources; and internal and external imbalance i.e. inflation and balance of payments deficits
Print Book, English, 1983
Cambridge University Press, Cambridge [Cambridgeshire], 1983
bibliography
xxii, 287 pages : illustrations ; 23 cm
9780521249003, 9780521270496, 0521249007, 0521270499
8845577
The Meaning and the Strategy of Economic Development
The meaning and measurement of economic development
The process of growth
Economic welfare index
Essential and inessential investment and consumer goods
Lop-sided development
Strategy of development
Raison d'etre for government intervention
Lower efficacy of the market mechanism
Unequal distribution of income
Divergence between private and social costs and benefits
Long-term dynamic considerations
Shadow pricing
The key role of socio-political factors in development
Quality of the administration
The Scope and Role of Fiscal and Monetary Policies
Background to the modern approach
The management of demand and production
Keynesian model of income determination
Fiscal and monetary measures
The effect of changes in the supply of money on private demand and on prices
Monetary policy and private consumption
Monetary policy and private investment
Monetary policy and the price level
The counter-revolution against Keynes
Financing of economic development
Kalecki's model
Formal model
Foreign trade and capital
The role of fiscal and monetary policies in development
The neo-monetarist approach
The key propositions of monetarism
Excess money balances
Changes in the supply of money
Laissez-faire aspect of neo-monetarism
Policy prescriptions
Financing Economic Development (1) Domestic Savings
Public consumption
Expenditure on defence, education and health
Fiscal policy and private consumption
Taxation target and potential
Tax ratios
Organisation of Petroleum Exporting Countries (OPEC)
Guidelines on taxation
Essential characteristics of a taxation system
Taxation measures
Indirect taxes
Direct taxes outside agriculture
Direct agricultural taxes
Land reform and farm co-operatives
Wealth, gift and inheritance taxes
Financing Economic Development (2) Foreign Capital
The dual function of foreign capital in development
Absorptive capacity for foreign capital
Major types of capital flow
Economic aid and its cost to donors
Volume, composition and distribution of capital flows
Composition and distribution of capital
Development potential of different categories of external capital
Grants and concessional loans (ODA)
Tied aid
Non-concessional loans
Direct investment
Drawbacks, compared with loans
Special advantages
Evaluation of the actual contribution of foreign capital to development
International aid and capital flow targets
Recommendations
Compliance with recommendations
Growth in external debt of developing countries
The Pattern of Investment
Investment in the public sector
Guidelines on the choice of public investment projects
Pricing policies in the public sector
Private investment
Fiscal measures
Tariffs and quotas
Tax concessions
Subsidies
Multiple exchange rates
Monetary instruments
Industrial development banks
Sources of funds
Investment policies
Agricultural credit institutions
Development potential
Distribution of institutional credit
Subsidised credit
Internal and External Equilibrium
The meaning and significance of equilibrium
Internal equilibrium
External equilibrium
Causes of disequilibrium
The structure of production
Supply of food
Production bottlenecks and sectoral demand pressures
Size of harvests
The structure of foreign trade
Diagnosis of imbalances
Analysis of demand conditions
Inflationary pressures
External imbalances
Remedies for imbalances
Direct controls and selective measures
Global deflationary measures
Foreign loans
The IMF monetary approach to the balance of payments
The basic propositions of monetarism
IMF edecticism
The organisation, resources and credit facilities of the IMF
The organisation and resources of the IMF
Quotas and SDRs
The IMF regular credit facilities
Conditionality of the IMF credit facilities
IMF stabilisation policies
Restriction of effective demand
Promotion of the market mechanism
Foreign exchanges and devaluation
IMF special facilities
Compensatory Financing Facility (CFF)
The Buffer Stock Financing Facility
The Oil Facility
Extended Fund Facility (EFF)
Supplementary Financing Facility (SFF)
The Trust Fund
General Arrangements to Borrow (GAB)