Recent economic performance of developing countries

Robert Lynn and F. Desmond McCarthy

No 228, Policy Research Working Paper Series from The World Bank

Abstract: The GDP growth rate in the developing countries averaged 4.1 percent between 1980 and 1988. Many dynamic countries - chiefly in Asia - did exceedingly well during this period, but many others - typically in Sub-Saharan Africa - regressed. In general, the highly indebted countries have stagnated. If the prospects for the most deprived and highly indebted countries are to be improved, they will need to channel significant real flows into investments. This could be done through a combination of new external debt initiatives and growth inducing domestic policies. Appropriate domestic policies are essential so that external inflows are not negated by higher consumption levels. Perhaps it is time to reassess the Marshall Plan that reinvigorated the depleted post-war Europe. The Marshall Plan provided needed resources in a relatively short period, and since the aid did not carry an interest burden the authorities were not preoccupied with financial engineering.

Keywords: Banks & Banking Reform; International Trade and Trade Rules; Macroeconomic Management; Armed Conflict; Commodity Risk Management (search for similar items in EconPapers)
Date: 1989-07-31
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Citations: View citations in EconPapers (2)

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