RanneyMobile Capital and Economic Development Planning Mobile Capital and Economic Development Planning

The importance of the globalization of the economy is often discussed in terms oftrade and its impact on employment. Less attention has been given to investment or the liberalization of capital accounts around the world. Proponents of capital account liberalization contend that what they advocate simply enables capital markets to work properly. In this article, I argue that the structure and operation of markets are the creation of public policies. These policies generate both benefits and costs. The issue is not whether there should be global capital movement, but how its benefits and costs are distributed. In the discussion to follow, I contend that capital account liberal-ization has been operationalized in the context of a broad set of policies that together constitute a model of economic development. Furthermore, this model fails to distrib-ute benefits and costs of economic integration in a manner that improves the living conditions of people most in need. Moreover, policies governing capital account liber-alization limit options for economic development policy makers whose mission is to improve such living conditions. These limits not only apply in nations where the liberal-ization rules are in force but are also becoming generalized as standard planning prac-tice globally. I conclude with a discussion of implications for planning and alternativ