Financial Management of Globalization of Developing Countries

Any statement such as "Developing countries are now getting increasingly globalized" can be properly understood only in contrast with the paradigm of development that most developing countries were following in the ‘50s and ‘60s, and also by and large in the ‘70s. Developing countries have always been a part of the global economy. They all participated in international trade through exports and imports of goods and services. They received capital from abroad as foreign investment and as aid and transfers, and sometimes also as loans. They also exported a part of their savings not only as repayment of loans and repatriation of investments, but also as flight of capital through legal or illegal channels. They all felt, in different degrees, the impact of changes in the international economic environment such as business cycles, fluctuations in exchange rates or changes in terms of trade. So developing countries were never outside the arena of the global economy.