This short course will look at the fast growth experienced by larger economies from the South, especially Brazil, the Russian Federation, India, China and South Africa (BRICS), since the beginning of the new millennium that raised many hopes on the role that these countries could have to counteract the most severe constraints to growth in the poorest economies and to foster the construction of a more sustainable and socially inclusive pattern of development. The close economic proximity of economies within the South, and the direct familiarity of the emerging donors with the challenges facing other developing countries seems indeed to favour a different approach to finance for development – one based on higher local ownership (and less conditionality) and centred in the infrastructure sector as compared with traditional donors’ initiatives. Furthermore, private capital flows and foreign direct investment (FDI) coming from emerging economies from the South may have an especially strong developmental impact for low-income countries. The first session will examine the main features that characterize the different types of capital flows from the BRICS to other developing countries and discuss in this context the creation of a new development bank of the BRICS nations announced last March in Durban, South Africa.
The course will also discuss the international capital flows into developing countries, where in recent years migrants' remittances have been growing most rapidly and providing these countries with a stable source of foreign exchange and resources. While these inflows are welcome, they pose a challenge to policymakers: how to best channel them so as to achieve a better impact on national development? Beyond remittances, emigrants can also contribute strongly to the development of their home country through their knowledge and business networks abroad. Mobilizing these resources for development requires, once again, action by national policymakers. The second part of the course will discuss which measures countries can take in order to strengthen the contribution of remittances and diasporas to national development.
Delivered by: the Division on Africa, Least Developed Countries and the Division on Globalization and Development Strategies
From 10 am to 1pm