The world stage is chaotic and dangerous. Some of its characteristics are the following: 1) Populist leaders since 2000 have doubled in 40 countries, 2) The power conflict between the US and China creates a competition of allies and enemies, 3) Peace in Ukraine does not come because Trump wants the region occupied by Russia in Ukraine that has wealth in rare earths and other technological inputs. Putin does not accept it, 4) There is a long-lasting conflict in the Middle East. Trump’s proposal to make Gaza a “resort” is delusional, 5) Putin wants to destroy the European Union and NATO, 6) Trump’s tariffs already affect consumers in the US and the world, 7) the US has withdrawn from almost 50 international agreements related to health, justice, education and culture, development assistance, Climate Change, among others. This erodes its global influence, 8) The international security and cooperation system is in crisis.
Developing countries live marginalized from the support of international institutions and countries that, due to their power, exercise leadership.
In the past, many developing countries carried out mediocre reforms, worsening inequality.
Below are some essential issues for developing countries.
1.- Institutional quality: It means respect for the law and public and private property rights. Balance between the State and the market. Pay attention to the distribution of income.
2.- Macroeconomic prudence: To achieve it, financial, monetary, fiscal and debt policies are required that are flexible and avoid imbalances.
3.- Coordination of economic policy instruments: A synchronization of public policies for regulation, exports, production, and technological innovation is necessary. It leads to creating a competitive microeconomy that allows increasing the overall productivity of the economy, productive and profitable investment.
4.- Trade and development: US protectionism is affecting all countries that export to the US. It is desirable, as has happened on other occasions, that appropriate rectifications be made through international bodies.
5.- International financial institutions: Developing countries are underrepresented in these institutions and there are proposals for their correction, although there is resistance from the US that opposes the reforms of the World Bank and the IMF.
6.- Migration: Migratory movements are useful for the world economy. Therefore, a set of rules is required to guide cross-border movement. Remittances from emigrants are an important income for their countries and for the families that receive them.
7.- Climate Change: The deadly meteorological phenomena that are occurring, as a result of Climate Change, demand the responsibility of applying policies on the part of all countries.
