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Capital Management Techniques In Developing Countries

An Assessment of Experiences from the 1990s and Lessons for the Future

Gerald Epstein, Ilene Grabel, Jomo Kwame Sundaram

Paper  410kb pdf

The paper presents seven case studies of the diverse capital management techniques employed
in Chile, China, Colombia, India, Malaysia, Singapore and Taiwan Province of China during
the 1990s. The cases reveal that policymakers were able to use capital management techniques
to achieve critical macroeconomic objectives. These included the prevention of maturity and
locational mismatch; attraction of favoured forms of foreign investment; reduction in overall
financial fragility, currency risk, and speculative pressures in the economy; insulation from the
contagion effects of financial crises; and enhancement of the autonomy of economic and social
policy. The paper examines the structural factors that contributed to these achievements, and
also weighs the costs associated with these measures against their macroeconomic benefits.

About the Authors

Gerald Epstein
Professor of Economics
University of Massachusetts, Amherst

Ilene Grabel
Professor of Global Finance
University of Denver

Jomo Kwame Sundaram
Assistant Secretary General for Economic Development
United Nations

Jomo Kwame Sundaram has been Assistant Director General and Coordinator for Economic and Social Development (ADG-ES), Food and Agriculture Organization of the United Nations since 2012. He was Assistant Secretary General for Economic Development in the UN Department of Economic and Social Affairs (DESA) from 2005 until 2012, and Research Coordinator for the G24 Intergovernmental Group on International Monetary Affairs and Development from 2006 until 2012. He has received several honours and awards for his work including the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought.

Publication Information

Type Network Paper
Program Capital Market Liberalization
Posted 03/01/04
Download 410kb pdf
# Pages 48