The book addresses senior policy makers interested in understanding and debating key issues currently faced by the better performing emerging markets throughout the world. Papers in the volume address international capital flows, financial markets, globalization, and private participation in infrastructure development.
The papers included in this book were among those discussed at the Emerging Markets Forum meeting in Jakarta, Indonesia in September 2007. The underlying premise of the book is that growth and development in emerging market economies is now heavily dependent on: international private capital flows; development of financial markets; the countries ability to integrate successfully with the global economy through trade and investment; and their ability to forge public private partnership, including, in infrastructure development. A particular emphasis is on contrasting and comparing experiences in Asia and Latin America.
Global Imbalances, Oil Revenues and Capital Flows to Emerging Market Countries
The US current account deficit continues its inexorable rise; it is set to hit US$ 900 billion this year. However, the steady rise in that deficit masks a change in its composition. With the growing surpluses of oil exporting countries, mirroring the increase in oil prices, it now accounts for nearly half of the counterpart to the US deficit. This chapter raises a number of issues related to this changing profile of the global imbalances and asks what implications they may hold for the adjustment process and for global capital flows, especially to the Emerging Market Countries (EMCs).1 On the adjustment process:
- The (probably appropriate) ...