Proceedings of the International Workshop on Capital Flows

The Asian financial crisis that exploded in 1997 exposed serious flaws
in the marketdominated economic and fiscal policies pursued by
governments and international financial institutions (IFIs) in the era
of economic liberalization. The massive flight of capital, which
deepened the crisis in the affected economies, made it apparent that
mechanisms to regulate short-term capital flows were vital if a
recurrence of the crisis were to be avoided. This argument is bolstered
by the fact that countries such as China and India, who have not opened
up their capital accounts, remained relatively insulated from the
crisis.

The Asian financial crisis that exploded in 1997 exposed serious flaws
in the marketdominated economic and fiscal policies pursued by
governments and international financial institutions (IFIs) in the era
of economic liberalization. The massive flight of capital, which
deepened the crisis in the affected economies, made it apparent that
mechanisms to regulate short-term capital flows were vital if a
recurrence of the crisis were to be avoided. This argument is bolstered
by the fact that countries such as China and India, who have not opened
up their capital accounts, remained relatively insulated from the
crisis.

The issue of capital flows generated much debate, albeit a debate
largely restricted to policymakers within governments and IFIs. If
there was one thing, however, that the Asian financial crisis so
strongly illustrated, it was that short-term capital flows impinged on
matters that should be the concern of broader sections of society,
matters such as livelihoods and basic services, government-financed
corporate bail-outs, etc.

It was in this light that the Asian Regional Exchange for New
Alternatives (ARENA) and the Action for Economic Reforms (Action)
embarked on a joint project to provide the venue and opportunity for
concerned scholars, as well as activists and civil society
organizations, to present, or propose specific and appropriate measures
to manage or regulate short-term capital flows.

It was hoped that the workshop would surface policy proposals and an
advocacy agenda regarding the regulation of short-term capital flows.

Read full text (.pdf, 174kb, 30pp.)

No comments yet.