How Lending to Eastern Nations Affects the Developing World
Abstract
This report examines the relationship between capital flows to the Eastern bloc and capital flows to the developing nations of the world. It is clear that a diversion of capital flows from the East to the South might be to the strategic advantage of the West and to the economic advantage of the South. This might be more true in the coming decade than in the past decade: capital surpluses from the oil producing nations are likely to shrink or disappear. The competition between the South and the East for capital imports is likely to become more intense. If Western governments can agree, a reduction in subsidized flows to the East is a particularly advantageous policy: both the West and the South might gain economically. A reduction in commercially justified flows, however, is less beneficial to the West and is a nightmare to administer. Alternative policies to promote flows to the South or discourage flows to the East might better serve the dual goals of Western security and Southern prosperity.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1983
- Accession Number
- ADA157354
Entities
People
- Donald P. Henry
Organizations
- RAND Corporation