ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

International Economic AffairsSubscribe to International Economic Affairs

Making Third World Pay for Overvalued Dollar

Making Third World Pay for Overvalued Dollar ISG IF dollar has to stay overvalued, let us impose an import surcharge. That is the conclusion of the Morgan Guaranty economists. The US Congress has already passed a non-binding resolution urging the President to consider imposing a surcharge on Japanese imports. This shows that even those who are convinced about the substantial overvaluation of the dollar have more or less reconciled themsleves to the view that a major rectification, however desirable, is not practical. Not in the near future, in any case.

Farce of Fund Surveillance

THE Bonn Economic Summit of the industrialised countries of the West has, as we know, been conspicuous for its failure to agree on almost any major issue. It could not agree on the timing and agenda of the next round of negotiations on trade or on the participants in it. Nor could it agree on the discussion of the reform of the monetary system. As it turned out, differences were quite sharp on both the issues of trade as well as money, but they were clearly sharper on money, What is so different about the agreement reached at the IMF's Interim Committee meeting towards the end of April this year that "effective Fund surveillance was necessary as a means of promoting sound economic policies and convergence of performance among member countries", that "steps be taken to strengthen surveillance over the policies of all Fund countries'', and that in that context consideration be given "to means of increasing effectiveness of surveillance over the policies of those industrial and developing countries which have a significant impact on the functioning of the world economy"?

Flaws in Locomotive Theory

Flaws in Locomotive Theory I S G THERE is not much new about the locomotive theory. All that it says is that economic growth in certain countries provides the stimulus to other countries, through their exports to the former. Two aspects of the proposition need to be noted: (1) the growth process is mutually supportive

Technology Import-Liberalisation Is Not the Answer

Technology Import Liberalisation Is Not the Answer ISG WE, economists, are very fond of drawing a distinction between 'necessary' and 'sufficient' conditions, almost to the point of making it a cliche. I am tempted to draw the same distinction, in the present context; to ask how necessary it is to import technology in order to modernise our economy. I have no doubt that modernisation is absolutely necessary for our economic progress and that we cannot modernise without updating our technology. But will the import of technology be sufficient to ensure modernisation?

Gold Smuggling- What Is behind Its Acceleration

GOING by the cases of gold smuggling coming to light, it would appear that the smuggling of gold into the country is again on the rise. Several factors operate behind gold smuggling. Not that the demand for gold is generated only by the black economy, but it is true that the black economy is expanding and if it is valid to assume that a part—that too the larger part—of the income/assets generated in the black economy tends to be kept in the form of gold, the growth of the black economy itself could be a continuing source of additional demand for gold.

World Monetary Reform Core Issue Ignored

November 3, 1984 plains the present stagnation in the industry. The affinity for trading margins, exhibited by the manufacturers, has on the one hand been pushing up the foreign exchange outlay for electronic goods and components, and. on the other hand, has meant no serious efforts to reduce costs through innovations introduction. The high costs have in turn adversely affected the competitiveness of electronic exports and also dampened the growth in domestic demand.

Tackling the Debt Crisis

Tackling the Debt Crisis ISG AS an international political forum, the Commonwealth is probably one of those very nebulous institutions today whose impact on the policy-makers of its member countries is best not assessed, for any such attempt is unlikely to yield much. That such a forum has, all the same, survived for so long may, for some, only go to prove how institutions have a way of outliving their usefulness. A more positive way of looking at the continuation of the Commonwealth is to view it not as a policy-making institution but as a body that serves to influence thinking on world issues, economic as well as political, of not only its member countries but also non-members. This it seeks to do less through the meetings of ministers and other functionaries from its member countries and more through the studies it commissions on various important world issues. It is this aspect of the Commonwealth's functioning that has come into the forefront more and more in recent years.

What about an Edible Oil Reserve

last October which showed conditions on Finlay estates in Bangladesh, protesters at the company's AGM carried a symbolic tea packet marked 'Finlay puts the T in exploitation'

Undervalued Yen or Overvalued Dollar

Undervalued Yen or Overvalued Dollar? ISG JAPAN'S economy after the Second World War was a highly controlled economy with restrictive tanit and non-tariff barriers applying to trade rigid control on movement of funds not only out of Japan but also into Japan. Over the years, Japan has liberalised trade and dismantled most of its non-tariff barriers except those meant to protect its high-cost primary sector. Rice and beef are the two principal commodities enjoying this protection. Also, tariffs have come down considerably over the years. In regard to control on funds, Japan has been more cautious.

Interest Rate Hike-Needed a Common Third World Stand

crisis-ridden structure by action from the top. The most important point for re-examination is the Section 112 of the CPI(M) Progamme. which really means the entire constitutionalist orientation of the party. Can it really undertake such a review7 This, of course, does not mean that the party's 'style of work' does not demand a second look. It really does and on a wide scale. To quote some glaring examples: should the CPI(M) transport minister have passed the time in the company of the fashionable crowd in the Eden Garden to watch a game of test cricket when the Congress (I) hoodlums were burn- ing buses and trams for hours and thus creating transport chaos? or should the chief minister have gone on his China trip leaving his junior and undistinguished colleagues to deal with the ravaging enteric epidemic which has so far taken a toll of over 2,000 lives? or, and even more important, should the Left Front government so zealously condone the atro cities of the police and remain largely indifferent to so many cases of suspicious death of undertrails in police custody?

The Fox and the Chicken-house

The Fox and the Chicken-house G P D SOMETIME in 1983 an American political scientist published an article in Asian Survey which began with the following question: Does anyone care to remember how long ago it was that the US chose China as an nlly against the Soviet Union? Well, Petrov would have his answer now. The Soviets do remember. They remember it with a degree of sullen- ness surprising in a people who dominate world politics. They have never forgotten it. After the none- too-successful visit of Reagan to China the proposed visit of Arkhipov has hsen cancelled, No details have been given. There is only a bland announcement that the visit which was to have been the first major visit of a Soviet politician to Beijing in fifteen years has been indefinitely postponed

US Arguments against SDRs

SUPPRESSION OF OPPOSITION The failures of development strategy coupled with ruthless personal dictatorship of Sekou Toure generated a considerable opposition to his regime. Sekou Toure opted to deal with his opponents by suppressing the dissent. Even the former Secretary General of the OAU named, Diallo Telli. was arrested in 1975 in an alleged plot to topple the Toure regime. Continuous harassment of the opposition compelled the regime's opponen's to take asylum in neighbouring states like Senegal and Ivory Coast. Human rights organisations constantly questioned Toure's rule, while Toure tried to answer his critics by raising the bogey of 'complot permenente' (permanent plots). According to this theory. to topple his regime a permanent plot was being hatched "by external reactionaries supported by paralysing manoeuvres of internal reactionaries".6 Due to the state of permanent plo's. Sekou Toure launched innumerable purges and went to the exent of accusing countries such as Ivory Coast, Senegal. Portugal. France. West Germany, and even the Soviet Union and he United States, at different stages, of attempting to top- ple his regime.


Back to Top