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Automatic transfer payments to developing countries

Building block for a new international economic order?

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Intereconomics

Abstract

As a more critical view is being taken of traditional development aid concepts, alternative means of advancing the resource transfer between industrialized and developing countries have attracted increasing attention in recent years. A system of tendentially automated transfer payments to developing countries is one of these alternatives. The author of the following article examines whether such a system has a chance of meeting common interests of industrialized and developing countries and how it could be elaborated to make it more effective.

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References

  1. Cf. UN General Assembly: Resolution 3362 (S-VII) on Development and International Economic Co-operation, Sept. 1975.

  2. On proposals of this kind cf., e.g., Angelos Angelopoulos: Zu einer Nach-keynesianischen Weltwirtschaftspolitik (On a post-Keynesian international economic policy), Wiesbaden 1978; the same author: Le tiers monde face aux pays riches (The Third World faces the rich countries), Paris 1972; Wissenschaftlicher Beirat beim

  3. Cf., e.g., Jan Tinbergen et al.: Reshaping the International Order—A Report to the Club of Rome, New York 1976; Mahbub ul Haq: Toward a new framework for international resource transfer, in: Finance and Development, No. 3, 1975; Pierre Moussa: Les nations proletaires (The proletarian nations), Paris 1959; Theodor Dahms: Weltwirtschaft im Umbruch (World economy in a state of Global Point of View. in: Jagdish N. Bhagwati (ed.): The New Dellafar: The Brain Drain and Income Taxation, in: World Development, 1974; Koichi Hamada: Taxing the Brain Drain: A Global Point of View, in: Jagdish Bhagwati (ed.): The New International Economic Order, Cambridge, Mass./London 1977.

  4. Cf., e.g., Jan Tinbergen et al., op. cit.,: Reshaping the International Order—A Report to the Club of Rome, New York 1976; UN Special Session of the General Assembly Devoted to Disarmament, Resolution S-10/2, July 1978; Report of the Secratary-General of the UN: Economic and Social Consequences of the Arms Race and its Extremely Harmful Effects on Peace and Security in the World, A/32/88, New York, Aug. 12, 1977; The Third Committee on High Level Government Experts of the Regional Commission for Latin America, E/CEPAL/1025, March 30, 1977; CEPAL, The Guatemala Appraisal, E/CAP/1030/Rev. 1, May 1977.

  5. Cf. Financamiento del desarrollo tecnológico: Propuesta andina (Financing the technological development: Andean proposals), in: Intal, BiEL No. 7, Buenos Aires 1979.

  6. On various forms and application areas of automation and regulation mechanisms and for a comparison with discretionary decision-making processes cf. Fritz Neumark: Ermessensfreiheit oder Automatismus? (Freedom of discretion or automated mechanisms?), Basler wirtschaftswissenschaftliche Vorträge No. 6, Zürich 1971; the same author: Wandlungen in der Beurteilung eingebauter Steuerflexibilität (Changes in the assessment of built-in tax flexibility), in: Kyklos, Vol. 32, 1979; Brita Steinbach: “Formula flexibility” —Kritische Analyse und Vergleich mit diskretionärer Konjunkturpolitik (Formula flexibility—critical analysis and comparison with discretionary cyclical policies), Frankfurt-Berne 1977; Wissenschaftlicher Beirat beim BMW: Regelmechanismen in der Wirtschaftspolitik (Regulation mechanisms in economic policy), in: BMW (ed.): Sammelband der Gutachten von 1948 bis 1972 (Collected expert opinions 1948–1972), Göttingen 1973.

  7. cf. Konrad Littmann: Problemstellung und Methoden der heutigen Finanzwirtschaft (Problems and methods of present-day public finance), in: Fritz Neumark (ed.): Handbuch der Finanzwissenschaft, 3rd ed., Vol. 1, Tübingen 1975; Brita Steinbach: Untersuchungen zur Steuerinzidenz (Studies on the incidence of taxation), Speyer 1978.

  8. Cf. Christel Bergmann, Helge E. Grundmann: Arbeitsplatzsicherung durch Entwicklungshilfe—Kredite und Exporte in Entwicklungsländer (Job security by development aid—credits and exports to developing countries), Prognos AG, Basle, April 1978; Helge E. Grundmann: The Effects of Development Aid on Exports, in: INTERECONOMICS, No. 9/10, 1978, p. 242 ff.; Guido Ashoff, Dieter Weiß: Binnenwirtschaftliche Wirkung der deutschen Entwicklungspolitik (The internal economic effect of German development policy), Deutsches Institut für Entwicklungspolitik Berlin, Feb. 1978; the same authors: Effects of German Development Aid on the Internal Economy, in: INTERECONOMICS, No. 5, Sept./Oct. 1979, p.215 ff.; and the statements of DIE, DIW and prognos AG at the public hearings of experts on the subject of “North-South ramifications” on April 23 and 25, 1979, in the Bundestag committee for economic cooperation.

  9. Cf. Günther Esters: Neuordnung der Weltwirtschaft, Nord-Süd-Dialog und Orientierung der Entwicklungspolitik: Die Notwendigkeit einer einheitlichen Perspektive (New International economic order, North-South dialogue and the orientation of development policy: The need for a uniform perspective), in: Günther Esters (ed.): Nord-Süd-Politik, Bonn 1977.

  10. Cf., e.g., Manfred Tietzel: Internationale Rohstoffpolitik (International raw material policy), 2nd ed., Bonn 1978: Günter Keiser: Die Energiesicherung (The safeguarding of energy supply), Munich 1979.

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The present article is based on a research project on international transfer policy which was made possible by a grant from the DGFK.

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Steinbach, B. Automatic transfer payments to developing countries. Intereconomics 15, 34–38 (1980). https://doi.org/10.1007/BF02924398

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