Code of Liberalisation of Capital

There is also the questions of freedom for movement of capital and the freedom for movement of persons.

E. The international environment Financial liberalization and capital flows

Agreement on Investment and Free on Arab Movement of Arab Capital among Arab Economic

32. One lesson learned from the volatility of capital markets is that liberalization of trade is not the same as liberalization of capital flows.

There was the view that, in capital markets, long term flows should be liberalized before short term ones.

Its currency is freely convertible, and there are no controls on capital movement.

This approach would also mean that the true liberalization of services, understood as free services , would include significant advances towards the free movement not just of goods and capital, but also of people.

In the view of the United States of America, privatization unleashed a spontaneous flow of capital if everything was privatized, then capital would flow wherever it might be needed.

Freedom in capital movements should not be introduced until national institutions are ready, and a number of measures can be introduced to reduce the mobility of capital in an emerging economy.

Freer capital flows will give poor countries precisely this access, as the greed of investors in rich country leads them to venture into poor regions where capital is scarce.

31. Mr. Buira (Banco Nacional de México) replied that, while he understood the advantage of freedom of capital movements and capital investment, he had also witnessed the terrible impact that a reversal in capital flows could have.

They have the potential to seriously impede trade liberalization and deter the international flow of capital.

Freedom of movement and of choice of residence

8. The liberalization of cross border flows had led to the internationalization of investments by institutional funds.

Capital flows

(b) The basic contradiction of liberal style globalization, which is fostering movements of capital, goods and information, as opposed to those of people this contradiction characterizes the European immigration policy

He also noted that, in a globalized world economy, the free flow of labour was as important as the free flow of capital, and this issue warranted further attention in UNCTAD apos s work.

C. Investment and capital flows

Freedom of movement

Investments and technology must be allowed to flow freely in that region.

In fact, it was clear that the culprits were the International Monetary Fund and the US Treasury, which had encouraged a shift to capital account convertibility without understanding that the case for free capital flows was not symmetrical with the case for free trade.

18. The pace and sequencing of liberalization of capital flows should be determined by each country in light of its specific circumstances and needs.

Thus, one could well ask whether, in current conditions, the full liberalization of capital movements was an appropriate measure.

Capital flows and remittances

INCLUDING CAPITAL FLOWS INVESTMENT TRADE

To address in the relevant international fora the urgency of measures at the global level to monitor short term capital flows, particularly in respect of the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime.

Fostering an enabling environment for development financial flows, including capital flows investment trade

Noting that capital flows, in particular private capital flows, to developing countries have been increasing strongly but that not all countries have benefited from such flows and that short term capital movements can be unpredictable,

The root causes of displacement must be addressed and the right to freedom of movement guaranteed, without imposing sanctions on those who moved without permission.

In its original formulation, financial liberalization did not extend to international financial flows.

The free movement of persons within the national territory is a constitutional principle in Guinea.

13. Resource flows are analysed in this section under two main concepts aggregate net resource flows and net resource transfers.6

Among the factors that were found to encourage firms to increase these flows were political stability, a sound macroeconomic environment, free movement of capital, availability of skilled labour, a transparent legal environment and a reasonably well developed infrastructure.

Economic openings to Central Asia and to ASEAN (specifically to Vietnam) are well underway, and reform will include further international opening. The Third Plenum s decisions follow the launch in September of the Shanghai Free Trade Zone, which will open new sectors to foreign investment and permit largely market based financial transactions and capital flows.

Unlike capital flows, which vary according to the economic environment, remittances tend to stay stable and are less volatile over time.

Encouraging private capital flows and remittances

Because of international financial liberalization, capital flows from capital rich to capital poor countries had increased, the cost of finance had gone up and the international system had grown both more volatile and more vulnerable, with less scope for developmental finance.

There is complete freedom of movement in Pakistan.

Table 3 External trade indicators for developing countries and territories,

FDI from developing countries is emerging as a new source of capital inflows.

Migration should be a central element of any fair global trading system. If capital could move and markets were free, the other factor of production, labour, should enjoy similar freedom.

With much fanfare, the IMF recently embraced a new institutional view that seemingly endorses re regulating global finance. While the Fund remains wedded to eventual financial liberalization, it now acknowledges that free movement of capital rests on a much weaker intellectual foundation than does the case for free trade.

(e) To mainstream human rights education in educational activities, in order to strengthen respect for human rights and fundamental freedoms

20.75 This subprogramme will be carried out by the Division of Natural Resources and Infrastructure.