Whereas most of the literature related to the so-called “resource curse” tends to emphasize on institutional factors and public policies, in this research we focus on the role of the financial sector, which has been surprisingly overlooked. We find that countries that have financial systems with more depth, as well as those that actively manage their central banks’ balance sheets experience less exchange-rate appreciation than countries that do not. We analyze the relationship between these two findings and suggest that they appear to follow separate mechanisms.
The development of an effective state, a reliable infrastructure, and a dynamic private sector has long been hampered by political economy obstacles in the Democratic Republic of Congo. Resilience of an African Giant identifies these obstacles, which prevent the country from realizing its economic potential as the second-largest country in Sub-Saharan Africa, and outlines how they can be—and in some cases have been—overcome. Four instruments that have been used to boost economic development in the past and that can contribute to more development in the future are explored in the book: coordination among those who control or influence policy, application of new technologies, leveraging of external anchors, and development of social accountability networks. This book pulls together an impressive body of research on the exemplary transition of a country from a state of conflict to a post-conflict situation, and from there toward becoming a country with legitimate institutions created by free, democratic, and transparent elections.… I therefore wholeheartedly recommend it to all who are interested in development, particularly to policy makers in my country, as well as its partners.
The development of an effective state, a reliable infrastructure, and a dynamic private sector has long been hampered by political economy obstacles in the Democratic Republic of Congo. Resilience of an African Giant identifies these obstacles, which prevent the country from realizing its economic potential as the second-largest country in Sub-Saharan Africa, and outlines how they can be--and in some cases have been--overcome. Four instruments that have been used to boost economic development in the past and that can contribute to more development in the future are explored in the book: coordination among those who control or influence policy, application of new technologies, leveraging of external anchors, and development of social accountability networks. This book pulls together an impressive body of research on the exemplary transition of a country from a state of conflict to a post-conflict situation, and from there toward becoming a country with legitimate institutions created by free, democratic, and transparent elections. --publisher description.
Whereas most of the literature related to the so-called “resource curse” tends to emphasize on institutional factors and public policies, in this research we focus on the role of the financial sector, which has been surprisingly overlooked. We find that countries that have financial systems with more depth, as well as those that actively manage their central banks’ balance sheets experience less exchange-rate appreciation than countries that do not. We analyze the relationship between these two findings and suggest that they appear to follow separate mechanisms.
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