Managing Capital Flows for Long-run Development

The Frederick S. Pardee Center for the Study of the Longer-Range Future at Boston University and the Initiative for Policy Dialogue convened a Pardee Center Task Force meeting on Sept. 16 on “Managing Capital Flows for Long-run Development.” Held in the Kenmore Conference Room at Boston University, the Task Force meeting was convened by Pardee Center Faculty Fellow Kevin Gallagher in collaboration with José Antonio Ocampo and Stephany Griffith-Jones of the Initiative for Policy Dialogue (IPD) at Columbia University.

The Pardee Center Task Force was convened specifically to address important questions concerning whether and how capital investments between developed and developing countries should be “regulated” or “managed.” While investment is essential for the development process, a growing proportion of foreign investment in developing countries is in the form of short-term “hot” money that has been shown to be extremely volatile and leaves developing country financial systems very vulnerable.