International Business Environment

You are required to write a report on the following:

Cornbinia is an imaginary middle income developing country with a population of some 50 million. It has traditionally depended on primary exports and suffers from volatile commodity prices. The towns in Corbinia are growing fast and it is 55% urban but much of the population works in the informal sector. The new government has promised to be less corrupt and more efficient as well as to develop a programme of development which will lead to visible improvements for the majority of the population.

The IMF/World Bank(WB) is arguing that the government can best achieve this by following its advice. But others are saying this has not worked in the past. Joseph Stiglitz has recently visited to talk about alternative policies.

The government asks you to prepare a background paper on the advantages and dangers of a more interventionist approach to development and the types of things that might be done to help Cornbinia develop.