Managing Capital Flows: Challenges for Developing Economies

May 5, 2017 — Livingstone, Zambia

The past two decades have seen unprecedented private capital inflows to developing economies in response to favorable global economic conditions and broad financial integration. However, at the current juncture of weaker external economic conditions – slowing global growth, tightening liquidity, and a sharp decline in international commodity prices – capital flows to developing economies are receding and becoming more volatile. How should policymakers deal with these challenges? This high-level conference will provide a forum for policy makers from developing economies to share their experiences on managing capital flows and, along with academics and market participants, discuss the policy options available today.

Program

Friday, May 5
9:00–9:30am Registration and Coffee
9:30–10:15am Opening Remarks

Felix Mutati (Minister of Finance, Zambia)
David Lipton (First Deputy Managing Director, IMF)
Speech
10:15am–12:15pm

Session I. Recent Experiences with Capital Flows in Low-Income Countries This session will discuss the recent trends and behavior of capital flows to low-income countries in the current juncture of weakened external economic conditions. How does experience differ according to country characteristics? How are policymakers responding in these challenging circumstances?

Chair: Seán Nolan (IMF)

Plenary Speech: Gita Gopinath (Harvard University) |30 minutes|

Panelist 1: Yvette Babb (Executive Director, J.P. Morgan)
Presentation

Panelist 2: Louis Kasekende (Deputy Governor, Bank of Uganda)

Panelist 3: Rogerio Zandamela (Governor, Central Bank of Mozambique)
Presentation

Open Discussion |15 minutes|
12:15pm–2:15pm

Lunch
2:15pm–4:15 pm

Session II. Managing Capital Flows in a Globalized World: Policy Challenges This session will discuss the policy tools that can be deployed to manage the challenges posed by capital flows: macroeconomic policies; macro-prudential policy; and capital controls. How effective are the various tools? Should the policy toolkit in low-income countries be calibrated differently from emerging market economies?

Chair: Jonathan D. Ostry (IMF)

Plenary Speech: José Antonio Ocampo (Columbia University) |30 minutes|

Panelist 1: José de Gregorio (Former Governor, Central Bank of Chile)
Presentation

Panelist 2: Mthuli Ncube (Oxford University)
Presentation

Panelist 3: José Antonio Ocampo (Columbia University)
Presentation

Open Discussion |15 minutes|

4:15pm–4:45 pm Coffee Break
4:45pm–6:45 pm

Panel Discussion. Capital Flows: Lessons from Experience

Moderator: John O’Sullivan (Economics Editor, The Economist)

Keynote Speech: Paul Krugman (CUNY) |30 minutes|
Presentation

Panelist 1: Antoinette Monsio Sayeh (Distinguished Visiting Fellow, Center for Global Development (CGD); Former Director, African Department, IMF; and Former Minister of Finance, Liberia)

Panelist 2: Denny Kalyalya (Governor, Bank of Zambia)
Presentation

Panelist 3: Daniel Mminele (Deputy Governor, Reserve Bank of South Africa)
Presentation
     
Open Discussion |30 minutes|
           

6:45 pm–7:00 pm

Concluding Remarks

Abebe Selassie (Director, African Department, IMF)
7:30pm Reception and Dinner