Reducing Vulnerability to Speculative Attacks
PREMNote 16
A speculative attack on domestic assets can occur irrespective of a country’s fiscal situation – and political economy considerations may be the reason. What are the sources and risk factors of speculative attacks? And how can countries reduce their vulnerability?

 

February 1999

Using Markets to Deal With Commodity Price Volatility
PREMNote 13
What can governments and donors do to develop markets that ameliorate commodity price volatility? Commodities provide raw materials for processors food and jobs for families and communities and export earnings for governments. According to UNCTAD in 1995 57 countries depended on three commodities – fuels grains and oilseeds - for more than half their exports. Commodity prices however are notoriously volatile creating uncertainty for governments producers processors traders and local financial institutions.

 

January 1999

Export Processing Zones
PREMNote 11
Export processing zones are potentially useful tools for export promotion. To foster development however zones must be set up properly managed well and integrated with other reforms.

 

December 1998

Private infrastructure, public risk
PREMNote 10
Whether private infrastructure will realize its expected benefits depends on how governments allocate risks. Many governments have assumed risks that private investors should bear, reducing incentives for efficiency and exposing governments to contingent liabilities. Governments can, however, reduce project risks and improve how guarantees are measured and budgeted

 

November 1998

Contingent Liabilities – A Threat to Fiscal Stability
PREMNote 9
Many governments have faced serious fiscal instability as a result of their contingent liabilities. But conventional fiscal analysis fails to address contingent fiscal risks. What should be done?

 

November 1998

Can backward subnational regions catch up with advanced ones?
PREMNote 6
There are big differences between the per capita incomes of backward and advanced regions in developing countries - and little reason to believe that these differences will disappear very quickly. Addressing poverty may require direct policy interventions that encourage the faster development of poorer regions.

 

July 1998

Trade and the East Asian Crisis
PREMNote 3
Trade shocks appear to have played a role in the East Asian crisis. A key part of the recovery will be growth in net exports from the region which will require supportive trade structural and macroeconomic policies both in the region and in its major export markets.

 

April 1998

What Effect Will East Asia’s Crisis Have on Developing Countries?
PREMNote 1
East Asia’s currency crisis has already wreaked havoc on currencies and financial markets inside and outside the region. What lies ahead? This note answers that question using recent projections by the Development Prospects Group.

 

March 1998