Financial Cooperation among Developing Countries: issues and opportunities*
This chapter sets out the issues believed to be central to financial cooperation among developing countries and explores in particular the case for the establishment of a bank for developing countries. The Jamaica Expert Group handled both the balance-of-payments and the development finance aspects of a possible financial cooperation, in accordance with the Caracas terms of reference. The idea to establish a South Bank as a major powerful lending institution inevitably dominates one’s thinking of financial cooperation among developing countries. The Jamaica Expert Group was called upon to advise on the future of the Non-Aligned Solidarity Fund and to consider the earlier proposals for the establishment of a bank for developing countries. The Caracas programme represents an agreed compromise base for further negotiations among developing countries. The need for guarantees has been stressed frequently in the past by spokesmen and writers from the surplus developing countries.