Adjustment with Growth-Changing Perceptions in International Balance of Payments Policy for Developing Countries

Adjustment with Growth Changing Perceptions in International Balance of Payments Policy for Developing Countries Arjun K Sengupta The change in the international balance of payments policy for developing countries discussed here was reflected clearly in the speech of US Treasury Secretary James Baker at the Seoul Fund-Bank Annual Meeting of 1985. That was the first major occasion when an important industrial power clearly admitted that contractionary balance of payments policies were neither desirable nor sustainable for an orderly evolution of the international economic system and that, for achieving medium-term viability, balance of payments adjustment policies in developing countries must ensure a reasonable and sustained economic growth. Other industrial countries also endorsed this view.