Aid ineffectiveness, fragmentation, and volatility have already been highlighted by scholars and OECD studies. Far fewer studies have been devoted to another problem of capital flows: herding behaviour. Building upon a methodology applied to financial markets, where herding is a common feature,...

In this paper we test the impact of elections on fiscal policy in Latin American economies in comparison to OECD countries over the period 1990-2006. We find that in Latin American countries, the average primary balance declines by an amount close to 0.7 per cent of GDP during an election year,...

The “raw materials curse” is far from being an inevitability, as shown by Norway and Chile. Both examples offer valuable lessons to developing countries on how to sensibly manage mining and oil resources. Following Norway’s example, Chile could build upon its experience and become a key...

Financial actors from developing countries are playing with other OECD financial giants as equals through their Sovereign Wealth Funds (SWFs). SWFs could become major actors of development finance if they chose to allocate 10 per cent of their portfolio to emerging and developing economies over...

New actors and instruments have increased the complexity of the international development-finance architecture Efficient aid delivery confronts challenges: multilateral duplication, mission creep and loss of leverage. Specific measures of multilaterals’ contributions to the MDGs could promote...

While the overall picture for gender equality is still gloomy, recent changes in family institutions in come countries provide an enlightening example.

The Democratic Banker (03/2007) (Other Languages : FR / ES) Policy Insights No.38 by Javier Santiso Banks contribute not only to the economic development of emerging countries but also to political development. International bank flows in an emerging country tend to grow during the three years...

China helps growth and debt sustainability in Africa through debt relief, infrastructure investment and higher exports. China and other emerging lenders should engage in a debt transparency initiative that considers such growth effects. This will encourage emerging lenders to co-operate with the...

China's growing influence on Africa and on Latin America has, to some extent, overshadowed the rise of another emerging market giant in the East: India. This other Asian emerging presence is also symbolic of the rapid redesigning of the global economic map. Europe, Japan and the United States...

Cancelling of poor-country debt does not mean that the best way to give aid is through grants only. Aid through loans may often prove superior, provided that it maintains debt sustainability. A new scheme for soft loans is suggested, with higher interest rates and cancellation provisions if bad...