Podcasts Government Asia's Developing Future Developing countries need to fix domestic problems to best benefit from globalization

Developing countries need to fix domestic problems to best benefit from globalization

Published: March 1, 2018, 12:03 a.m.

b'Developing countries can benefit from globalization if they fix potential problems at home before opening their economies. Failing to do so can multiply local problems as money streams across borders, suggests ADBI research. For a number of reasons, developing countries might end up worse off if they allow their currencies to float freely and remove controls on money flowing in and out of their country before putting in place strong financial foundations.\\n\\nEconomists generally agree that imposing controls on capital flows acts as a tax on an economy. Those controls can make it harder for companies to find investors and for local investors to seek better returns for their money. \\n\\nWhat\\u2019s more, greater integration into the global financial system means a developing economy is less exposed to any volatile growth swings at home. \\n\\nRead the transcript\\nhttp://bit.ly/2ozkJha\\n\\nRead the working paper\\nhttps://www.adb.org/publications/managing-financial-globalization-guide-developing-countries\\n\\nRead the blog post\\nhttp://bit.ly/2GtrUiC\\n\\nAbout the author\\nShang-Jin Wei is a professor at Columbia University\\u2019s School of International and Public Affairs and Graduate School of Business.\\n\\nKnow more about ADBI\\u2019s work on global finance\\nhttp://bit.ly/2FGnWmH\\nhttp://bit.ly/2owtvww'