Workshop:

The major challenge the president will face in the 2014 election will be taking into consideration new world changes inside internationalized chains to implement a diversified economy that is less depending to hydrocarbons rent. And this is only possible with the rule of law and a renovated governance.

Economic dynamics do modify power relations at worldwide scale and affect also political reconstruction inside countries at regional level. Energy especially is at closely linked to states sovereignty and their security policies. Energy can boost regions in the Mediterrean area. This contribution presented at the IPEMED on December 5th 2013 is oriented toward this topic and assessing the emergency of developing a well energy management transition. This is required according to Dr Mebtoul in order to develop a new energy consumption model at worldwide level which encourage energy efficiency.

The idea that a deeper integration of developing economies-and especially those who are more developed- in the worldwide economy could foster growth and catching up is widely shared. This supposed positive link between foreign capital entry and economic growth was based until 1997 on a dozen of South East Asia countries experience. Success achieved by these countries especially in term of industrialization and technologies acquisition have been explained in part by foreign capital effects in particular through their form as direct foreign investment. The growth comeback in latin America emerging countries in the 1990 decade in a context of massive influx fo capital has also strengthen the idea of positive link between a country or an economic area stronger participation to a financial globalization process and its economic development. If we suppose that this link –we are not trying to discuss it right now- is relevant as proven by these few experiences, we are proposing in this paper to show that the financial globalization is above all a dynamic where developing countries are excluded(I). This allows to weaken the thesis multilateral international institutions and a majority of economists is defending. In a second step, using the experience of emerging latin America countries, we will show that influx of foreign capital according to their structure(debts, DFI, portofolios investments into assets and obligations etc), their sectorial destination (in particular export sector or not) will foster –in opposition to ongoing thesis-external constraint especially and do provoke economic growth instability.

Authors: Mamadou CAMARA & Pierre SALAMA ; Economists, CEPN-cnrs and Greitd, Paris 13 University.