Responding to a thread entitled
>Re: A long way to go still ....
started off by Ian with an article from the FT of the previous day which said:
>The champions of liberal markets are in full retreat. There is only one
>way they can make themselves heard again over the angry shouts of the
>protesters. They must stop making the case for globalisation - and start
>fighting the cause of better globalisation.
Brad:
>The world structure of relative prices is stacked against them. Because
>current exchange rates for poor countries are far below
>purchasing-power-parities, it requires a *huge* proportional sacrifice in
>terms of current consumption to produce even a small domestically-financed
>investment effort.
>
>This is one of the biggest of the vicious circles that keeps poor
>countries poor.
Yes, my impression too. Any illustrative data of what we are talking about?
Above all *why* are the exchange rates for poor countries far below purchasing power parities?
Is this an effect of something else?
Chris Burford