Publisher's Synopsis
In a volatile world economy, developing countries are vulnerable to changes in the international trading environment, particularly in the level of commodity prices. Indeed much money has been spent by national and international organizations on compensating producers and countries for shortfalls in their export earnings as a result of such instability. Much has also been written on the adverse effects of export instability on economic growth, yet there is no comprehensive account of these effects or of the effectiveness of the existing compensatory financing facilities in dealing with them.;"Export Instability and Compensatory Financing" fills this gap at a time when there have been calls to establish additional compensatory financing schemes. After examining the existing schemes, David Lim concludes that the case for an additional scheme is not clear. The problem of export instability should be seen as an integral part of the general problem of economic underdevelopment and should be dealt with by a broadly-based programme concerned with creating greater growth and stability. This implies not the establishment of an additional facility but for the IMF, the World Bank and other international organizations to pay adequate attention to the instability issue in their adjustment programme.
