Focusing on the dynamics of capital flows, this book explores their rapid growth and significant impact on emerging markets. It assesses the benefits and drawbacks of volatile capital movements, highlighting the risks of currency crises in developing nations like Mexico and East Asia. By integrating economic theory, the author offers innovative strategies for national governments and international organizations to mitigate these crises and enhance financial stability.
Focusing on the evolution of international financial flows to Latin America since 1945, this work highlights how different agencies, including foreign investors, official aid agencies, and multinational banks, played pivotal roles in each decade. The absence of such support in the 1980s led to a significant economic debt crisis. The book critically examines necessary measures to address this crisis, aiming to promote Latin American development while preventing a broader international financial catastrophe.
This discussion paper explores the mobilization of private capital for sustainable infrastructure, focusing on the Asia Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB), also known as the BRICS Bank. These institutions enhance the development finance landscape. The paper outlines how development banks can address the global investment gap in sustainable infrastructure through targeted lending and diverse financial instruments. Drawing on experiences from the European Investment Bank and other multilateral and regional development banks, it identifies potential lessons for the AIIB and NDB. The paper examines various mechanisms to attract private capital that complement traditional credit financing for ecologically sustainable infrastructure. While such infrastructure may not currently be the most cost-effective option in many regions, making informed investment decisions is crucial, particularly for long-term projects like renewable energy. Development banks can facilitate projects that lack sufficient appeal for private investors, thereby preventing long-term investments in non-sustainable options. Strategies discussed include shadow carbon pricing, the European Investment Bank's Global Energy Efficiency and Renewable Energy Fund, and the Co-Lending Portfolio Programme managed by the International Finance Corporation. This analysis is informed by literature, personal experiences, and numerous interview