DRM Arguments Flashcards
1
Q
DRM BreakDown
A
- Introduction
- Argument
- Argument 1: External Borrowing + Capital Flight
- Argument 2: FDI failures
- Argument 3: Taxation Benefits
- Issues of DRM
- Ways Forward
2
Q
DRM Introduction
A
- DRM is important because development is domestically funded/ Public Savings Definition
- Arthur Lews 12%
- Development is funded Public, Private, Domestic, External
3
Q
DRM Argument
A
DRM is Good Because:
- External Borrowing = Capital Flight
- FDI is good, but dangerous without savings
- Taxation makes state legitimate
4
Q
Argument #1: External Borrowing = Capital Flight
A
- Aid is unreliable +Volatile/ High Liquidity = Consumption
- Ndikumana + Boyce = Capital Flight = money overseas, 1$/80c, positive + significant impacts on CF
- Lucas Paradox
5
Q
Argument #2: FDI Doesn’t Solve Problems
A
- FDI Flows + Gaps in Investment + Savings
- Marginalization + Stock Markets
- Trade + Financial Liberalization
6
Q
Argument #3: Taxation is the Key
A
- Di John + North
- Determinants of Tax Capacity
a) supply + demand
b) initial conditions - Issues of Taxation
a) Trade liberalization
b) household constraints - Moore
a) tax bargaining/ social contract
b) redistribution
c) state building
d) Senegal
7
Q
Issues of DRM
A
1) Banking systems
- Development banks and Local Banks
2) Financial Repression + Neoliberal Economics
3) Resource Curse
8
Q
DRM Ways Forward
A
1) EA Miracle - Autonomous Revenue Agencies
2) Pensions
3) Development Banks