Changing perceptions and altered reality: emerging economies in the 1990s, Page 428

366 Pages·2000·1.05 MB·English

by  Shahid Javed Burki

Changing Perceptions and Altered Reality :
title:
Emerging Economies in the 1990s
author: Burki, Shahid Javed.
publisher: World Bank
isbn10 | asin: 0821345923
print isbn13: 9780821345924
ebook isbn13: 9780585162744
language: English
Developing countries--Economic policy,
Economic development, Poverty--
subject Developing countries, Financial crises--
Developing countries, Economic history--
Developing countries.
publication date: 2000
lcc: HC59.7.B857 2000eb
ddc: 338.8/009172/4
Developing countries--Economic policy,
Economic development, Poverty--
subject: Developing countries, Financial crises--
Developing countries, Economic history--
Developing countries.
Page i
Changing Perceptions and Altered Reality:
Emerging Economies in the 1990s
© 2000 The International Bank for Reconstruction
and Development / THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing January 2000
1 2 3 4 5 03 02 01 00
This report has been prepared by the staff of the World Bank. The judgments expressed do not necessarily reflect the views of the Board of Executive Directors or of the governments they
represent.
The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly.
Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank, provided that the
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For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax [phone].
All other queries on rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422.
The painting on the cover is by Jamaican artist Ken Spencer and is in the Latin American and Caribbean collection of the author.
Library of Congress Cataloging-in-Publication Data
Burki, Shahid Javed.
Changing perceptions and altered reality : emerging economies in the 1990s / Shahid Javed Burki
p. cm.
Includes bibliographical references.
ISBN 0-8213-4592-3
1. Developing countriesEconomic policy. 2. Economic development. 3. PovertyDeveloping countries. 4. Financial crisesDeveloping countries. 5. Economic historyDeveloping countries. I. Title.
HC59.7.B857 1999
338.8'009172'4dc21 99-047581
CIP
CIP
Page iii
CONTENTS
Preface v
Part I: An Evolving View of Development Challenges 3
Chapter 1: Changing Perceptions and Altered Reality 5
Chapter 2: Development Challenges: Reaching a Better 23
Understanding
Chapter 3: Toward Open Regionalism in LAC 33
Part II: Alleviating Poverty 47
Chapter 4: Global Economic Crisis and Poverty 51
Chapter 5: Protecting the Poor during Periods of 53
Economic Crises
Chapter 6: Crime and Poverty 61
Chapter 7: Poverty Returns to Pakistan 69
Part III: Globalization, Financial Crises, and Volatility 81
Chapter 8: Globalization: Institutional and Organizational 83
Imperatives for the Developing World
Chapter 9: Latin American Economic Crises and 91
Prospects
Chapter 10: New Initiatives to Tackle International 101
Economic Turmoil: A Comment

Page iv
Chapter 11: Latin American Economies and the Global 105
Economic Turmoil
Chapter 12: Volatility, Contagion, and Possible 111
Dollarization
Part IV: Countries in Economic Crises 119
Chapter 13: The Language of Economic Discourse 121
Chapter 14: From Globalization to Localization 129
Chapter 15: Pakistan in Crisis: A Diagnosis of Its Causes 133
and an Approach for Resolving It
Chapter 16: A Fate Foretold: The World Bank and the 175
Mexican Crisis
Chapter 17: The Relevance of the Chinese Model for 187
Bringing Cuba into the International Economic System
Chapter 18: Integrating Small States in a Fast-Changing 195
Global Economy
Page v
PREFACE
This Small Volume is Being Published Under the auspices of the
knowledge management program of the World Bank's Latin American
and Caribbean Region (LAC). An important part of this program is to
assist staff to reflect upon their experiences in the World Bank for the
benefit of their colleagues. I am leaving the Bank after 25 years, 12 of
which were spent in operations. I was the director of its China
Department for nearly seven years and regional vice president for
LAC for five and a half years.
A South Asian, arriving to work in Latin America and the Caribbean
after having spent some time working on China, was bound to look at
the countries for which he was now responsible from a different angle.
That is the subject of the first section of the book. It tells how I first
saw the Latin America region in early 1994, and how my perceptions
changed over time. It also details some of the initiatives I took to
improve ourin particular myunderstanding of the economic and social
problems faced by the countries of the region.
The second section of the book deals with povertya long-time concern
of mine. Throughout my stay at the World Bank, I was involved in
one way or another with our work on poverty. When I moved to LAC,
I brought this interest with me. From the very beginning I focused on
two characteristics of Latin American and Caribbean poverty: the fact
that most of it is urban, and that its incidence changes dramatically
over time. Economic ups and downs have a profound impact on the
number of people living in poverty. This is the subject of a several
speeches included in this volume. This section also includes a speech I
gave in Pakistan on poverty in that country. It is included in this
volume to underscore an important point: unless policymakers are
vigilant, even when it is reduced significantly, as was the case in
Pakistan, poverty can return with a vengeance.
The third section includes a number of speeches on various aspects of
globalization. My emphasis in dealing with this subject was on three
questions: what was meant by globalization, how did it affect the
developing world, and was it possible to control the volatility
associated with it by devising something called a new financial
architecture.
The last section of the book presents four case studies dealing with
countries in crises. The main point of including these case studies is to
underscore the view that