According to conventional wisdom, capital flows are fickle. They are fickle more or less independent of time and place. But different flows exhibit different degrees of volatility: FDI is least volatile, while bank-intermediated flows are most volatile. Other portfolio capital flows rank in between, and within this intermediate category debt flows are more volatile than equity-based flows.
Ace IDS researcher Naomi Hossain introduces the first results of a big Oxfam/IDS research project on food price volatility
If the point of development is to make the Third World more like the First, then we aid-wallahs can pack our bags and go home. Job done.
The most striking finding of Squeezed, the first year results from the four year Life in a Time of Food Price Volatility research project, is how like the people of the post-industrial North the people from the proto-industrial South now sound:
- Stressed and tired
- Juggling work and home
- Surrounded by selfish individualists, led by uncaring politicians
- In strained relationships
- Constantly pressed for time
- Never enough money, even for the basics.
The accelerated changes in communication flows are posing both opportunities and challenges in the global system. A recently published book entitled ‘Diplomacy, Development and Security in the Information Age,’ edited by Shanthi Kalathil (a former colleague and contributor to this blog), seeks to better understand the changing face of international relations in a new era, by examining two emerging themes: heightened transparency and increased volatility. Leading up to the publication, practitioners grappled with these themes, and how they are affecting international affairs. Craig Hayde, one of the authors, notes that transparency and volatility are increasingly inextricable concepts. He says “transparency does more than simply put information out there – it inculcates a shared value that information should be available”, but that it is also “facilitated by the same technologies that promote instability, risk, and uncertainty in the business of international relations.”
The collection of essays provides fresh thinking in an area that has mainly focused on the use and impact of information and communication technologies (ICTs). While several essays discuss ICTs, Kalathil points out that “the premise for the series is not to minutely examine new forms of technology and their impact. Rather, the premise for the series is that ubiquitous global communication flows have, over time, created an encompassing information environment that nurtures transparency and volatility in pervasive conditions and/or guiding norms.”