International economic policy as an environment for the implementation of development strategies of developing countries: from regulatory restrictions to institutional opportunities

Шлапак, Алла Василівна (2023) International economic policy as an environment for the implementation of development strategies of developing countries: from regulatory restrictions to institutional opportunities Вчені записки (31(2)). pp. 250-262. ISSN 2415-850X

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Abstract

The study of the regulatory potential of international economic policy made it possible to establish that an effective and reliable multilateral order requires a balance between the autonomy of national policy and the implementation of multilateral rules and obligations that shape the forms of manifestation of international economic relations. The aggravation of asymmetries in international economic development puts on the agenda the need to review the ability of supranational regulators to create an institutional basis for cooperation between countries that differ in their socio-economic development, and also creates a demand for a critical analysis of the benefits and losses from economic liberalization, which largely limits the room for maneuver at the level of national policies. In the conditions of global interdependence, where economic borders are mostly open to all forms of manifestation of international economic relations — flows of goods, services, capital and labor, the further limitation of the autonomy of economic policy occurs for at least two reasons: on the one hand, openness increases the influence of policies of foreign countries and terms of trade on economic activity on the national market and at the same time weakens the effectiveness of national policy instruments; on the other hand, control over the instruments of this policy is decreasing, since closer global integration is quite often accompanied by the entry into the systems of supranational governing institutions and an increase in international obligations assumed by governments. It has been established that the defining function of the international multilateral order is not so much the limitation of discrimination between countries as the limitation of state intervention in the activity of markets. The maneuverability of countries dependent on external financing is already limited by the requirements established at the mega-level of international economic policy, however, the conditions for receiving loans and grants from multilateral financial organizations and bilateral donors continue to narrow. The pursuit of greater liberalization than is warranted at the multilateral level has given rise to discriminatory bilateral and regional free trade agreements that are gradually eroding the most-favored-nation regime. Although rules and practices apply equally to all countries, as stipulated by most WTO agreements, due to the differences in the level of development of different countries, they have different effects on their space for choosing strategies. Another source of multilateral constraints on development policies is the structural conditions attached to loans provided by the International Monetary Fund and the World Bank Group. These conditions cover a range of areas, including trade, finance, state-owned enterprises, labor market regulation and the social security system. Multilateral rules and obligations recorded at the mega-level of international economic policy not only limit the use of discriminatory measures and beggar-thy-neighbour policy, but are also designed to curb manifestations of regulatory competition that can distort the market rules of the game. Nevertheless, it should also be recognized that in connection with the expansion of the system of multilateral restrictions, there is a risk of abandoning the commitments made and weakening trust in multilateral organizations as those that can implement the goals declared in their statutes and contribute to reducing the asymmetries of international economic development.

Item Type: Article
Uncontrolled Keywords: global interdependence; international economic policy; autonomy of national policy; supranational mechanisms of regulation of international economic relations; liberalization; deregulation
Subjects: Це архівна тематика Київського університету імені Бориса Грінченка > Статті у наукометричних базах > Erih Plus
Це архівна тематика Київського університету імені Бориса Грінченка > Статті у журналах > Фахові (входять до переліку фахових, затверджений МОН)
Divisions: Це архівні підрозділи Київського університету імені Бориса Грінченка > Факультет економіки та управління > Кафедра міжнародної економіки
Depositing User: Доцент Алла Василівна Шлапак
Date Deposited: 26 Jul 2023 06:19
Last Modified: 26 Jul 2023 06:19
URI: https://elibrary.kubg.edu.ua/id/eprint/45738

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