Abstract

In this paper the co-responsibility of the North for the development of the South, the chance of an authentic developmentand Rawls’s maximin rule are indicated as the ethical perspectives from which the financial integration of developing countries will beevaluated. It follows a brief economic analysis of possible problems of high inflows of portfolio investments for developing countries. They become more vulnerable to financial and monetary crises and their domestic banking systems are weakened by a higher risk of devaluation. This will lead to an outline of the goals for reshaping the financial integration: among others limitation of capital inflows,strengthening of the domestic banking system and further development of the country’s particular economic style. Finally someregulations of external financial relations and the proposal of a cooperative monetary arrangement between the South and the Northare discussed as possible measures to improve this integration.