This study basically examines the relationship between government external debt, corruption, and ECNG in selected five ASEAN countries, by estimating the magnitude and direction of the regression relationship, as well as the causal relationship. In addition, as a contribution in the direction of government and economic policymakers, this study intends to proffer recommendations as to the efficient management of public resources, in order to cushion the adverse effects of external indebtedness on other macroeconomic variables and welfare standards. Such effects include high cost of servicing, corruption, and capital flight, considering that investors fear being highly taxed when debts get to a certain level by the government. The findings of the study have revealed the fact that the the negative results on the economy, there is need for addressing the threat of increasing debt by the government through using alternative sources of capital investment. This can include economy openness for capital and relaxing the import restrictions and increased valuable exports. Investment can be increased in the domestic economy and wealth can be created through realizing the in-tax revenue from capital imported, which is against the interest payment on external debt. Moreover, the investment can increase ECNG, which results in transfer of technology to the domestic economy increasing the probability of more employment opportunities.
What is stopping Governments from establishing a new economic order? What are the principal stages on the way to a truly international payment system? Would an international currency unit, to be issued by a “Central Bank of Central Banks”, remove or cure many instances of disorders? Furthermore, what advice have Germanophone economists of the past centuries provided to help us avert a crisis? How can their recommendations be reformulated and/or revived?
The paper deals with these concerns among others and mostly adopts a Quantum theoretical macroeconomic approach to analyze the (forgotten) contribution of the German economists in this respect. In addition, there is enough evidence to claim that ignorance of the findings of economic thought and history has led to unbelievable mistakes in the structure of the modern international payment system.