Protecting the Poor:
Global Financial Institutions and the
Vulnerability of Low-Income Countries
Edited by Jan Joost Teunissen and Age Akkerman
Low-income countries are highly vulnerable to exogenous shocks such as sudden
drops in the prices of their exports, hurricanes, droughts, shortfalls in aid flows,
and volatile private capital flows.
Rich countries and global financial institutions recognise the need to avoid or
mitigate the effects of these shocks to poor countries, but they only see a limited
role for themselves. Poor countries and their advocates, on the other hand,
stress that the international community should do more since shocks cause
severe harm to developing country economies and, especially, the poor.
Protecting the Poor: Global Financial Institutions and the Vulnerability of
Low-Income Countries brings together in-depth analyses and valuable policy
proposals of both officials and critical observers. It spells out what poor
countries, rich countries and the international financial institutions can do to
address the vulnerabilities of low-income countries.
It also addresses why the governance of the international financial system should
be improved. Contributing authors advocate that improvements should go
beyond the short-term agenda of policymakers – such as the latest financial crisis
or the newest debt relief proposal. “Fundamental” reforms are needed, they say.
Contributors also review the role of the IMF in low-income countries. Some of
them see the design of proper “exit strategies” as one of the main future challenges
of the IMF, whereas others stress the need for the Fund to recast itself in the role
of partner in development rather than macroeconomic master.
The Hague, The Netherlands
Hannah Bargawi, Caoimhe de Barra, Ariel Buira, Stijn Claessens,
Kees van Dijkhuizen, Ernst van Koesveld, Matthew Martin, José Antonio Ocampo,
Geoffrey Underhill, John Williamson and others
Global Financial Institutions
and the Vulnerability
of Low-Income Countries
Jan Joost Teunissen and
9 789074 208260