The substantial literature examining risk-sharing practices in rural villages in developing countries has typically taken the social institutions in these communities as given. Using data from India, this column challenges this assumption by showing how the costs and benefits of risk-sharing arrangements can shape these social institutions. The results suggest that the size and nature of these risk-sharing groups may evolve over time as their environment changes. Public policy to reduce consumption fluctuations can be counterproductive in the standard model because of a strong crowding-out effect.
Tessa Bold, Tobias Broer, 16 February 2017
Viral Acharya, Stephen Cecchetti, José De Gregorio, Sebnem Kalemli-Ozcan, Philip Lane, Ugo Panizza, 05 October 2015
Emerging market firms have borrowed in foreign currency to take advantage of low interest rates. This column argues that when the Fed inevitably raises rates, such borrowing will be a threat to emerging economy financial systems. Yet so long as authorities use their existing prudential tools wisely, the risks appear manageable.
Demián Dalle, Verónica Fossati, Federico Lavopa, 13 April 2014
Discussions of global value chains (GVCs) have permeated international organisations’ research and policy agendas. This column presents a critical view on some of the recent policy recommendations that urge for as much liberalisation of trade in goods and services as possible. These proposals cannot be automatically applied to developing countries without some type of government intervention.
Maximiliano Sosa Andrés, Christiane Krieger-Boden, Peter Nunnenkamp, 08 March 2012
Investors from emerging and developing economies are becoming bigger players in FDI, particularly in developing countries. While some raise concerns that emerging economies might gain control over raw materials, others are hopeful that non-traditional investors might provide new opportunities for development. This column analyses these new FDI flows and finds that while fears may be exaggerated so too is the optimism.
Francisco Rodríguez, 23 February 2009
The development theme in the Global Crisis Debate has elicited many important and novel contributions on what the crisis means for the developing world and how developing nations should react. This column provides a synthesis and commentary of the key proposals.