@article{Arcand:293772,
      recid = {293772},
      author = {Arcand, Jean-Louis L},
      title = {Options for trade, finance and development: getting the  institutions right},
      publisher = {International Centre for Trade and Sustainable Development  (ICTSD) ; World Economic Forum},
      address = {Geneva. 2016},
      number = {BOOK},
      series = {Policy options paper},
      pages = {25 p.},
      year = {2016},
      abstract = {The basic tenet of the present policy paper is that  economic institutions are the key determinant of economic  growth and development, and that policy-makers and  developing country governments dealing with trade and  finance must concentrate on “getting the institutions  right.” In order to be implementable, policy  recommendations must correct inefficiencies that the market  system will not, implying that correcting market (and  institutional) failures constitutes the crux of the policy  options. These fall under four headings,informed by the  standard list of canonical market failures. First, the  widespread existence of externalities and coordination  failure imply that: (i) strategic use should be made of  official development assistance and blended finance; (ii)  domestic resources in developing countries should be better  mobilized through stronger domestic tax institutions and a  more transparent international tax system; (iii) guidelines  should be adopted for broadly-used private standards that  affect trade; and (iv) duty-free and quota-free  preferences, alongside liberal rules of origin with  extended cumulation provisions, should be extended to all  least developed countries. Second, standard public goods  arguments imply a pressing need for: (i) development-led  legal and regulatory reform; (ii) the implementation of a  long overdue trade facilitation framework for services;  (iii)the realignment of incentives that determine the  sectoral allocation of Aid for Trade funds towards  the  services sector; (iv) ensuring the availability of  correspondent banks in all low-income  countries which are  otherwise largely cut off from the trading system; and (v)  contributing to the construction of a global coordination   mechanism for trade and supply chain finance. Third,  natural monopoly arguments at the regional  level call for:  (i) enhanced mechanisms for regional regulatory cooperation  in general and financial services in particular; and  (ii)  enhanced regional aid for trade. Fourth, the existence of  asymmetric information problems  faced both by developing  country governments and international investors suggest a  pressing need to: (i) improve technical advice on  international economic agreements (including public-private  partnerships) available to developing country governments;  and (ii)adopt model solvency schemes and debt restructuring  approaches. The paper concludes with a recommendation on  measuring progress on these policy options through the  construction of an aggregate index of “institutional  readiness.”},
      url = {http://repository.graduateinstitute.ch/record/293772},
}