Abstract
The decade of the 1970s saw major external shocks to the economies of developing countries. Oil prices increased almost threefold in real terms in 1973–4, this was followed by a 9 per cent decline in real terms in 1975–8, and an increase of over 80 per cent in 1979–80. These events in energy markets were accompanied by a marked slowing-down of the rate of growth of industrial countries — a process which had started already in 1970–71. The growth rate of industrial countries averaged 3.3 per cent a year in the 1970s, down from over 5 per cent in the 1960s; there were major variations in annual growth rates both among countries in the group and for the group as a whole. Furthermore, there was a marked acceleration in inflation in industrial countries and it became common to talk about ‘double-digit’ inflation, as well as about ‘stagflation’.
The views and interpretations in this paper are those of the author and should not be attributed to the World Bank, to its affiliated organisations, or to any individual acting on their behalf. The author gratefully acknowledges comments received from Helen Hughes and D. Joseph Wood.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Cheetham, R., Gupta, S. and Schwartz, A. (1979) The Global Framework, Washington DC, World Bank Staff Working Paper, No. 355, September.
Havrylyshyn, Oli and Wolf, Martin (1981) Trade among Developing Countries: Theory, Policy and Principal Trends, Washington DC, World Bank Staff Working Paper, No. 479, August.
Hughes, Helen and Lutz, Ernst (1981) ‘The Outlook for the 1980s with Particular Reference to Trade’, mimeograph, Washington DC, World Bank, April.
Kruger, Anne (1980) ‘Trade Policy as an Input to Development’, American Economic Review, vol. 70, no. 2, pp. 228–93.
Sapir, André and Lutz, Ernst (1980) Trade in Non-Factor Services: Past Trends and Current Issues, Washington DC, World Bank Staff Working Paper, No. 410, August.
Williams, Richard C, Johnson, G. G., and staff team (1981) International Capital Markets, Recent Developments and Short-Term Prospects (Washington DC: International Monetary Fund), August.
World Bank (1981) World Development Report (Washington DC: World Bank).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 1985 International Economic Association
About this chapter
Cite this chapter
Colaço, F.X. (1985). Capital Requirements in Economic Development: The Decade Ahead. In: Gutowski, A., Arnaúdo, A.A., Scharrer, HE. (eds) Financing Problems of Developing Countries. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06749-7_1
Download citation
DOI: https://doi.org/10.1007/978-1-349-06749-7_1
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-06751-0
Online ISBN: 978-1-349-06749-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)