ABSTRACT
The main objective of this paper is to review the theoretical issues and available empirical evidence on capital account liberalization, which in addition to being of interest in their own right are of importance to present multilateral discussions in two international policy contexts. First, they are a concern in the debate on the New International Financial Architecture (NIFA). Second, they are part of the post-Doha agenda in the WTO, in relation to FDI flows. The focus of this paper is on developing countries and it considers policy from the perspective of (1) economic development and (2) the global rules of the game rather than the economic policy within individual countries. The paper essentially examines the question: What kind of global economic order in relation to capital flows can best serve the interests of developing countries?
