Regional Monetary Integration within Developing Countries: New Perspectives for Sustainable Economic Development?
Instituto de Estudios Latinoamericanos
The view on projects of regional monetary integration is dominated by the analysis of the Euro area. A series of regional monetary integration schemes are planned or already realized in other regions of the world such as Southern and Western Africa, Middle Eastern Europe, the Golf region, Asia, and Southern Latin America. While the Euro has to be seen as the key reference for these projects, most comparative research neglects the fact that the latter differ qualitatively from the European experience as in the case of regional monetary integration arrangements within developing countries none of the international key currencies is involved that would be able to function as a regional lender of last resort.
Even though, at least in some cases regional monetary integration schemes seem to be able to provide more gains in terms of economic sustainability than the unilateral defence of the currency at the national level. Therefore, it is necessary to analyze the specific conditions and requirements in terms of the governance structure of regional monetary integration schemes within developing countries, i.e. incentives, sequencing, and institutional outcome.