What Can the Advanced Countries Do?
Outlining the reforms that poor countries must take to harness the power of globalization and achieve rapid economic growth is easy—all it takes is ink and paper. Implementing these reforms, however, is very, very difficult. Not impossible, but difficult. As success stories like Singapore, Hong Kong, Taiwan, and Chile suggest, it can be done. International financial institutions like the IMF can help (particularly if it narrows its focus, improves its governance, and promotes a more open dialogue with developing countries), but the rich nations of the world also have a role to play. We in the affluent nations have a moral responsibility to help make globalization a force for good in the poorer countries. Yet it is not just altruism that should motivate us to help poorer countries. Helping them to develop economically and to grow will promote world stability and make our lives safer.
But what can we do? How can citizens in rich countries help poorer countries to get rich?
The financial crises in emerging market countries in recent years have sent economists and policymakers scrambling to discover a magic bullet to prevent them from occurring or to lessen their devastating impact. This search has led to calls for reform of the international financial architecture, that is, the institutions and rules that govern the flow of capital between countries. The amount of ink spilled on this topic is immense, and numerous proposals for reform by academics and