Towards a development-oriented approach to the BOP INLDCS

Abstract EN

The main argument here is that the conventional approaches to the Balance of Payments (BOP) deal with the symptoms but not with the original causes or sources of BOP difficulties in Least Developed Countries (LDCs).

Trying to benefit from the current world economic situation, this article calls for a development-oriented approach to BOP adjustment in LDCs which refreshes and extends calls and suggestions, of few economists during the last three decades, that emphasized the need to deal with BOP difficulties of these countries in the context of a structural transformation process.

The suggested development-oriented approach represents a general guideline and thus supposes that the detailed policy prescription must be left to the peculiarities of every economy to determine what is needed.