Commodity Prices, Capital Flows and the Financing of Investment
Speaker(s): Supachai Panitchpakdi, Heiner Flassbeck; Professor Robert Wade
Chair: Professor Stuart Corbridge
Recorded on 2 September 2008 in New Theatre, East Building.
The report, which is under embargo until 4 September 2008, highlights the implications of commodity price volatility and one of the major paradoxes of globalization, namely that the "capital poor" developing world is exporting capital to the "capital rich" developed countries. Moreover, those developing countries that are the largest capital exporters tend to invest more domestically and to grow faster than those that still depend on capital imports. These facts create serious puzzles for mainstream economic models and reject most of their predictions.