Developing countries navigating global finance

Emily Jones (University of Oxford)
Summer Common Room (Magdalen College)
Start time:
14 September, 2016 at 9:00
Session slots:

Short abstract:

This panel examines the political economy of international finance in developing countries. Papers will focus on the role of the state, examining the ways in which developing country governments shape relations between domestic and global financial markets and financial sector development.

Long abstract:

Since the 1980s, unprecedented capital mobility has linked the financial markets of developing countries into an ever more tightly interconnected global system. In many developing countries, including in sub-Saharan Africa, finance is undergoing rapid transformation and expansion, changing the architecture of domestic financial systems and redefining their links with global markets. Connections to global financial markets are evolving and deepening, and the majority of financial flows to developing countries now come through private rather than official channels. Integration brings opportunities but exacerbates vulnerabilities. Developing countries are having to navigate the end of the commodity super-cycle and the 'normalisation' of United States' monetary policy; questions about the sustainability of new sovereign debt issuances; and global financial standards are having unintended adverse effects, including on remittances. Scholars have examined the liberalisation and integration of developing countries into global financial markets. The papers in this panel seek to go beyond this, examining the important role of the state in shaping the trajectory of financial sector development. Particular questions to be addressed include: to what extent, and in what ways does the international financial system structure the environment in which firms and governments in developing countries operate? How is the international and domestic political economy of finance shaping regulatory decisions? How and why does this vary across countries? What are the policy dilemmas and trade-offs that governments face, and how are they resolving them? What is the intersection between this debate and other debates on financialization or globalization and the state?