Lack of international coordination of interest rates
Volatility of interest rates
There is a lack of adequate coordination between the interest policies of different countries. This is complicated by conflicts between internal and external considerations. Thus, when inflationary pressure coexists with a payments surplus in one country and unemployment with a deficit in another, there is a natural reluctance for the former to lower interest rates and for the latter to raise them in order to ensure equilibrating capital movements, and to avoid unilateral restrictions.
In the 1980s, the world's biggest debtor nation, the USA, has maintained a policy of high interest rates to attract large foreign capital imports. This denies capital to Europe and to the developing countries. It forces massive annual increases in debt servicing charges for debtor countries. The 1984 Latin American foreign debt of $350,000 million is estimated to increase about $1,700 million for each half-point increase in the USA prime rate of interest.
The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.
The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.
Non-profit, apolitical, independent, and non-governmental in nature, the UIA has been a pioneer in the research, monitoring and provision of information on international organizations, international associations and their global challenges since 1907.