Journal articles on the topic 'Financial deregulation policies'

Since the 1980s, South Asian countries have been implementing financial market deregulation policies continuously. Although the process of deregulations has been slow, many countries in the region are heading toward a more integrated market despite current global turmoil. Financial market integration in South Asia could have synchronised economic activities of the countries in the region due to the impact of consolidation. This suggests that when the region’s economies grow/contract, all countries could follow the same path demonstrating a co-movement of growth rates among countries. When economic growth rates are similar for a region, it may be easier to formulate economic policies to achieve a common goal. As the political leadership of South Asia has agreed to work towards forming an economic block similar to that of the European Union and ASIAN, examining co-movement of growth rates could shed more lights on the issue of the success of market integration in the region. The objective of this study is to study market integration by analysing financial markets, trade and economic growth data to spot whether there is any co-movement of growth rates among South Asian countries due to financial market deregulation policies implemented so far. As findings show mix results, we used region’s governance indicators to examine further and found that weak governance is a serious problem in the South Asian region.

According to Shaw (1973) and McKinnon (1973), the most important element of economic development is financial liberalization. This action will eliminate the distortion, as what the government of Indonesia did on June 1, 1983 through deregulation of banking. The government eliminated the ceiling of credit and gave a full authority to each bank to determine their interest rates. This study looks up to Fry (1995) model to test McKinnon-Shaw hypothesis. The models were regressed with dummy variable. This effort will give illustration or conclusion of the structural change, that happened specifically caused by environmental or policy changes.Generally, insignificant in the relationship between interest rates in national saving and investment in Indonesia could be caused by financial mechanisms those very long and complex channels. That is why real interest rates could not give effect to national saving directly. Export, especially from oil and gas and foreign debt were growth-stimulating factors. Meanwhile, money supply, which supported by tight money policy and balance budget policy caused Indonesian inflation along those periods. The periodically analysis shows that deregulation of June 1983(PAKJUN) were success to mobilize public fund, encourage investment on real sector, and increase the economic growth, but failed to control the inflation rate. The implementation of October 1988 deregulation (PAKTO) had flourished the establishment of new banks and created good competition among them. The competition had no longer on interest rate. Therefore, it can be said also the easy requirements of establishing banks become contra productive for PAKJUN policy, which had laid to the market mechanism.Basically, either PAKJUN or PAKTO was not policies in which urgently implemented in Indonesia. Those financial deregulations were not supported by the existence of deregulation on real sectors, so that the financial deregulations were not effective to achieve their goals.

The concept of flexicurity denotes the idea of compensating labour market deregulation (i.e. flexibilisation) with advantages in employment security and social security. This article presents a brief history of the concept and an operational definition which leads to indicators for monitoring the effects of flexicurity policies in Europe. Empirical study shows that, contrary to political promises and theoretical considerations, labour market deregulation has totally outweighed social development. The following measures are proposed with a view to overcoming contradictions between several European employment policies: (1) adoption of flexinsurance, which makes the employer's contribution to social security proportional to the flexibility of the contract and/or risk of unemployment, (2) introduction of elements of a basic minimum income, and (3) measures to constrain financial markets.

The latest period of expansion in the international economy has been characterised by the liberalisation of capital movements, the deregulation of major financial markets and the spread of neo-liberal beliefs in the merits of open and competitive trade, the disadvantages of big government and protectionist policies (Hirst, 1997). The rapid advancement of information and communication technology and the growth of knowledge-based economy have led to the gradual replacement of the conventional resource-based economies. ‘A techno-economic paradigm of information and communications technology and the knowledge-based economy has created a new knowledge-elite class that favours free markets in this post-industrial society, characterized by globalization, decentralization, deregulation and privatization’ (Low, 2003: 30–31).

Pakistan is a developing economy, which has adopted Structural Adjustment Programme (SAP) in the form of economic reforms initiated in early 1990s. Economic reforms related to privatisation of state-owned assets, deregulation, confiscation of price controls, trade liberalisation generally and financial reforms (especially to improve quality of financial institutions) particularly. The objective of such reforms was to improve the welfare of society but these reforms never fruited to every livelihood in the country. Perhaps, fruits of economic reforms are eaten up by poor governance, lack of transparency in economic policies, high level of corruption, high burden of internal and external debts and interest rate payments on these debts, weak situation of law and order, and improper implementation of economic policies.

In Korea, there is a big difference in the rise and fall of apartment prices by region, so it is expected that there will be differences in regional economic indexes. So, to capture the housing market conditions, we developed the housing cycle by using the factor-augmented vector autoregressive model (FAVAR). In addition, we estimated the impacts of the Korean government’s housing policies on the housing cycle. The first is a net policy effect model, and the second is a comprehensive model with macroeconomic variables and regional variables. To estimate the effects of the policies, we considered financial, tax, and housing transaction policies. In the net policy effect model, we found that all policies, including an increase in the DTI (debt to income) ratio, the LTV (loan to value) limit, an acquisition tax reduction, a transfer tax deregulation, deregulation of the housing subscription policy, and a housing purchase right transfer, impacted the housing cycles at the period t − 1. This is why the Korean government announced policy enforcement in advance a month ago before policy implementation. In the comprehensive model, we found that the policies had statistically significant effects on housing cycles at the period t − 1, and we also found that the regional variables had an influence on the housing cycle. Therefore, the Korean government should consider the regional characteristics and time lag when it attempts to intervene in the housing market.

The Washington Consensus policies of privatisation and deregulation promoted by the international financial institutions (IFIs) became increasingly controversial during the 1990s, and in 2004 the World Bank's president declared the consensus to be ‘dead’. However, a new push for across-the-board deregulation, notably in the area of workers’ protection, started in 2003 through an annual World Bank publication, Doing Business, which proclaimed a wide range of labour regulations to be nothing more than a hindrance to investment. The IFIs used it to pressure dozens of developing countries to do away with workers’ protection rules, contending that deregulation was necessary to stimulate employment growth, even though the Bank's own internal evaluators were unable to corroborate the claimed link between the Doing Business labour indicator and positive economic outcomes. Faced with mounting pressure from unions, the ILO and elected officials, the Bank finally instructed its staff in 2009 to stop using the indicator and removed it as a conditionality criterion, declaring that the global economic crisis justified adopting a different policy approach.

The nexus between Information Communication Technology (ICT) and stock market development has been predominantly based on studies of the developed markets and high-income economies of the world. The objective of this study was to examine the causal relationship between ICT adoption and stock market development in Africa. The study examined a panel of 11 African stock exchanges for the period 2008–2017 and employed the panel ARDL bounds testing procedure to test for cointegration and examine the causal relationship between ICT adoption and stock market development. The dependent variable employed was the stock market development index (FINDEX), while the independent variable was the ICT adoption index (ICTDEX), and the financial freedom index (FFI) was employed as a control variable. Firstly, the results of the study documented that the variables are cointegrated in the long term. Secondly, the results of the study documented a bi-directional causal relationship (complementarity) between ICT adoption and stock market development. In essence, ICT adoption and stock market development reinforce each other. Thirdly, the study established a causal relationship running from financial freedom to stock market development. This lends credence to the notion that financial market deregulation promotes stock market development. Lastly, a positive causal relationship that ran from financial freedom to stock market development was documented. This study contributes to the body of knowledge in the sense that it is the first study to examine the phenomenon of the ICT–stock market development nexus by employing a panel study. Hitherto, studies were mainly country-specific in nature. The findings of the research imply that policymakers should be more resolute when formulating ICT policies, as ICT adoption can drive stock market development and vice versa for better economic growth. Policymakers should embrace policies that support the deregulation of stock markets as this will lead to the development of the latter.

AbstractUnderstanding the nature of state financialisation is crucial to ensure de-financialisation efforts are successful. Therefore, this article provides a structured overview of the emerging literature on financialisation and the state. We define financialisation of the state broadly as the changed relationship between the state, understood as sovereign with duties and accountable towards its citizens, and financial markets and practices, in ways that can diminish those duties and reduce accountability. We then argue that there are four ways in which financialisation works in and through public institutions and policies: adoption of financial logics, advancing financial innovation, embracing financial accumulation strategies and directly financialising the lives of their citizens. Organising our review around the two main policy fields of fiscal and monetary policy, four definitions of financialisation in the context of public policy and institutions emerge. When dealing with public expenditure on social provisions, financialisation most often refers to the transformation of public services into the basis for actively traded financial assets. In the context of public revenue, financialisation describes the process of creating and deepening secondary markets for public debt, with the state turning into a financial market player. Finally, in the realm of monetary policy, financial deregulation is perceived to have paved the way for financialisation, while inflation targeting and the encouragement, or outright pursuit, of market-based short-term liquidity management among financial institutions constitute financialised policies.

The unprecedented subprime crisis, the deregulation of the market, bank credit and payment mechanisms have facilitated the spread of the risk to the whole of economy. This study examines the issue of the processes set up to save the management of the global banking system. To achieve our goal, we conducted a survey of the various techniques used by banks to prevent global financial crises. At the end of our study, we found that the banks while opting for different policies play the same role and are increasingly hard to avoid risk.

The Great Financial Crisis that broke in 2008 and the Great Recession that followed has led many to question the very structure of contemporary economies. Some argue that the economic model of the past forty years is now broken. Criticism has also been directed at the orthodoxies of economics. For example, neoclassical equilibrium economics, the mainstream economics of the day, is accused of failing to understand some of the most basic aspects of the modern economy (debt and money), of supporting policies that have led to the economic breakdown (deregulation), and of failing to see the crisis coming (Bezemer 2012, Keen 2011). Consequently, heterodox thinking in economics is getting a hearing as never before. Heterodox economics offers itself as the requisite radical reconstruction of the science of economics and also proposes policies for the radical reconstruction of the major economics.Yet to talk of the reconstruction of the modern market economy is at the same time to raise the ethical question: what shape ought the market economy to take? Heterodox economics may acutely analyse the inadequacies of real economies and propose plausible reforms, but as an essentially descriptive science there will be limits on its ability to state what ought to be. Rather, what is required seems to be a systematic prescriptive ethics. In other words, recent events in the world of economics have provided an opening for what ethical philosophy should be best at providing. Determining whether a specific ethical philosophy, to be identified shortly, has the capacity to address the questions raised by heterodox economics is the task of this paper.

In this paper we investigate the relationship between leverage and the level of economic activity in the United States, using quarterly data over the period 1951–2012. We address the question for five different measures of leverage—household leverage, nonfinancial firm leverage, commercial bank leverage, broker–dealer leverage, and shadow bank leverage—making a distinction between traditional banks and shadow banks, the latter being a consequence of financial innovation and deregulation in the financial services industry over the past 30 years. We investigate whether the relationship between leverage and the level of economic activity is nonlinear and asymmetric using slope-based tests as well as tests of the null hypothesis of symmetric impulse responses. Our results inform policymakers about the important distinction between traditional banks and the market-based financial intermediaries that have been at the center of the global financial crisis of 2007–2009. They also inform about the macroeconomic effects of the deleveraging process that began in 2008, as well as about the need for countercyclical macroprudential policies to reduce the procyclicality of the financial system.

<p><em>Banking industry worldwide has been transformed due to globalization, financial liberalization, technological developments, government policies, deregulation of financial services, financial crises and increase in mergers and acquisitions since 1980. With these changes, there is a trend towards decrease in the number of banks and increase in banking concentration. Increase in banking concentration might affect competition conditions in banking industry. The decrease in the number of banks and the increase in banking concentration dominate the Turkish banking industry after the banking crises in 2000 and 2001. This paper examines the relationship between concentration and competition in Turkish banking industry. I measure the size of banking concentration by concentration ratios and Herfindahl-Hirschman index with the data of commercial deposit banks in Turkey from 2000 to 2012. Competition degree is measured by using Panzar Rosse model. The results of the study suggest that there is no permanent relation between banking concentration and competition in Turkish banks.</em></p>

If a financial organization flops, it can impose an externality nationwide as a whole. Augmented globalization along with deregulation of financial organizations has not only given rise to competition, but it has also amplified the need for powerful policies to manage risk for the industry. Being cautious of elements which might direct to failure of banking organization support in future for evading losses by introducing preemptive initiatives to minimize damage caused by risk. This study analyzes the factors affecting total risk in banking sector of Pakistan using sample data from 2006 to 2013. The results revealed that the size of bank, financial leverage, liquidity, loan to asset ratio, growth in real GDP, supply of money and spread of interest rates all seem to be statistically significant with total risk faced by bank. However, the ratio of loan losses remained statistically insignificant. This study stresses the insertion of macroeconomic factor as a probable determining factor for total risk.

Globalization, or the worldwide movement towards a high measure of economic, financial, trade, technology and communications integration, is a concept in need of an overhaul. The roots which have rested largely on President Reagan’s economic policy foundations of the early 80’s are wearing off. Free market, deregulation, income and wealth tax cut, reduced government spending and tight fiscal and monetary policies are challenged by events and disruptions. Economic growth vehicles are shifting away from manufacturing and services and locus of economic activity is moving towards China and its environs. Progression towards protective politics in the United States as much as the adoption of Brexit in Britain have hastened the blur.

Abstract Financial market liberalizations are an integral part of economic development. While initial booms in investment and output are commonly seen as signs of successful deregulation, they often reverse at a later stage as international capital flows turn negative and economic growth slows markedly. Such reversals of fortunes have commonly been attributed to incorrect policies that supposedly followed the initial, appropriate measures. It is unclear, however, if capital flow reversals are actually the result of policy reversals, or if they occur as part of the normal transition when financial liberalization is accompanied by a single suboptimal policy. The later hypothesis has not been explored in the theoretical literature.We construct a general equilibrium growth model of a small open economy, in which capital flow reversals are the result of a single, suboptimal policy imposed at the beginning of the financial liberalization. We show how improper taxation of foreign borrowing initially leads to strong growth fuelled by an investment boom and foreign borrowing. Still along the transition, however, the model predicts that capital flows must reverse endogenously at a later stage, as the debt burden rises and the country-specific risk premium increases. Our data on the Latin American and East Asian countries provide strong support for our hypothesis.

The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.

In recent years, several prominent figures in Islamic Economics have called for a reform of the financial system from the concept of fiat money to return to the gold standard system (dinar dirham). The main reason for financial system reform is the perspective that fiat money is considered not resistant to inflation. However, the gold standard system is considered to have various weaknesses namely; physical size is relatively heavy, is not proven to be anti-inflation based on historical records, high production costs, inefficient utilization of production resources, only benefits certain groups, and is vulnerable to payment deficits. In theory, the problem of inflation is caused by the imbalance between supply and demand for money itself. If the money supply is greater than the demand, it will cause inflation. Conversely, if the money supply is less than the demand, then the economic activity will not be smooth. Therefore, this article believes that inflation is not due to the physical form of money (paper or gold ), but is caused by effective money supply and demand management. Therefore, government policies are needed including (a) deregulation of the banking system by nationalizing all banks, (b) playing an active role in intervening in the surge in prices of goods and services (c) promoting Ziswaf institutions.

The global financial crisis in 2008 was the reason for increasing the scale of interventionist economic policies in developed countries. The main instrument of this policy was the significant development of a mild monetary policy and interventionist measures aimed at forcing the restructuring processes of heavily indebted enterprises and stopping the decline in lending by commercial banks. As part of the pro-development activities of the state intervention, the Federal Reserve Bank applied a mild monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase from commercial banks of the most endangered assets. A few years later, the European Central Bank applied the same activities of activation monetary policy. The functioning of the financial system will not be fully corrected as long as there will be a message in the media encouraging the banks that the global financial crisis is primarily attributable to the Federal Reserve Bank in the USA. In many para-documentary films, which, as a para-scientific explanation and education of citizens, promote the philosophy of combining deregulation of financial markets with the development of a free market, and attempts to regulate markets are trying to implement the principles of real socialism, a system quite different from that considered an ultramarine US economy.

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.

On October 18, 2017, Chinese President Xi Jinping presented the blueprint for building a modernized socialist nation through the realization of the Xiao Kang (every nation enjoys a peaceful and affluent life; it is meaningless to eliminate the poor) social construction at the 19th Congress of China. Subsequent to the 2008 financial crisis, the world has moved on to the new economic status of the “new normal”. China has also entered the era of Xinchang Thai, which is moving from the high-growth to the moderate-growth phase. Therefore, the government of China emphasizes privatization, liberalization, and deregulation. China is also influenced by government policies due to the nature of socialism. This study confirms China’s current stage of economic development, based on Barro’s theory. Thus, we use a quantile regression model and examine the correlation between economic growth and functional classification of government expenditure during Xi Jinping’s term of office. Furthermore, we selected Korea as a comparative country, as the two countries have common features.

Abstract What are the impacts of the austerity reforms on the social protection network and the legacy of Social Security, enshrined in the 1988 Constitution of Brazil? The hypothesis of this article is that Brazil’s recent political economy demonstrates the antinomy between financial capitalism and representative mass democracy, which results in the corrosion of social protection policies and the regulation of capital/labor relations. The political economy is immunized against democratic grassroots pressure in a clear dispute over public funds and the growing commodification and deregulation of lucrative private activities in the social protection arena. This movement is favored by the existence of a political and electoral system that perpetuates the various conservative elites in a reactionary coalition that hinders the progress achieved in the expansion of citizenship and economic, cultural and social rights. Through national and international studies, as well as the analysis of political measures, we seek to justify this hypothesis.

Japan's foreign direct investment (FDI) began in the early 1950s but was conducted only on a small scale until the beginning of the 1970s. Until the 1970s, Japan's FDI was mainly in the mining sector for resource development, the commercial sector, and the labor-intensive manufacturing sector, directed toward developing countries. With the 1980s came deregulation of the financial sector as well as increased import barriers by major countries in North America and Western Europe, leading to an unprecedented increase in Japan's FDI in the finance and manufacturing sectors of these countries. The latter half of the 1980s was another period of a sharp increase in Japan's FDI, resulting from the large appreciation of the yen. Japan emerged as one of the top investor countries of the world. Except for resource development, government policies have neither restrained nor promoted FDI directly but have instead aimed at creating a generally favorable business environment in which FDI could be conducted.

Micro, Small, and Medium Enterprises are one of Indonesia's economic buffer pillars. However, its position as a financial buffer still faces various problems. The purpose of this research is to examine the reduction of digitalization policies for Indonesian MSMEs and their implications for the development of the Islamic economy. This research is normative legal research with a statutory approach. The results showed that the provisions in the Copyright Law that require the digitization of MSMEs make its management more efficient and straightforward. During the COVID-19 pandemic, there has been a twofold increase in the number of businesses transitioning to the digital ecosystem. MSMEs are present in the development of the Islamic economy, with the possibility of managing MSMEs in the technology-based halal industry. Deregulation is carried out by simplifying regulations in order to improve the flow of bureaucracy. However, behind the ease, there are obstacles experienced by MSMEs in their digitalization efforts, including blocks in terms of community culture, regulation, and structure

Since the beginning of the financial crisis of 2008, authors and politicians have regularly reminded us of the duality of crisis and opportunity. For policymakers, administrations, and candidates, crises represent opportunities to implement long-desired reforms, seize the public stage, and reframe old arguments in the light of today's urgency. As the books under review here suggest, crises also represent opportunities for scholars. Arguments that failed to gain traction in the past may now deserve new attention as they help us understand the roots of crisis or how to recover from it. New audiences may be receptive to established arguments, now that other policies have caused us grief and are failing to promote recovery. The public and decision makers could be open to listening to these arguments and their implications, now that crisis has revealed deep vulnerabilities.The three books that form the basis of this review essay represent trenchant critiques of neoliberal economic theory and policies, including such foundational policy assumptions as globalization, deregulation, and reliance on sophisticated financial tools. Their authors, three prominent economists, draw our attention to problems of market failure, such as rampant rent-seeking behavior and externalities. By focusing on entrenched dilemmas that include widening inequality and the compatibility of democracy and globalization, they remind us of the ways in which markets are embedded in social institutions, and how such institutions both respond to markets and shape market outcomes. All bring with them a deep commitment to understanding the functioning of society and how to maintain the benefits of global capitalism while reining in its most destructive implications.

The end of a bipolar regime after the collapse of the Soviet Union diverted the world economies to globalization regime, where economic freedom and liberalization were adopted as most powerful and popular philosophies of the economic welfare and development. The origination of a free trade regime, decentralization in public finance, and revival of the classical school of thought in economic policies are the natural outcomes of the global failure of centrally controlled economic planning experiences. Autonomy of the central banks, market-oriented exchange rates, convertibility of the currencies, privatization, deregulation, and free trade are the banners of classical economic thoughts in the present regime. Meanwhile, the International Monetary Fund (IMF) came into force when the world was divided into left and right arms. The IMF conditionality and recommended measures are still based on demand management mechanism where most of the advices belong to exchange rate mechanism (devaluation), increase in interest rate, increase in tax revenue, reduction in subsidies, transfer payments, so on. The core objective of this study is to review the IMF policies and practices in the contemporary world where supply-side policies and classical theories are regaining their importance in post-Soviet regime. Before any recommendation and contemplating the role of the IMF in the contemporary world, it will be appropriate to review and analyze the current practices of the IMF by three dimensions: History and cause of the creation of the IMF, its governance and financial structure, and its role in global economy and lending activities. The study suggests the change in the IMF governance structure and the coordination between World Trade Organization (WTO), World Economic Forum (WEF), and IMF policies.

Banking is one institution that an important role in the economic field of a country. Banking is anything about the bank, including institutions, business activities, and ways and processes in carrying out its business activities. The development of BPR businesses that continue to show positive performance is driven by three main factors: government policies that provide opportunities for BPR establishment, banking deregulation that enlarges the BPR space and the large needs of the community, especially in rural and urban areas, towards banking services. This research was conducted to know the analysis of the difference of health level in matters of Capital aspect, Asset, Management, Rentability, Liquidity and Capital between Conventional BPR and Syariah. Population in this research is all financial data of Conventional Rural Bank and BPR Syariah Kota Batam registered at Bank Indonesia. The sample in this research is the financial data of Conventional BPR and BPR Syariah in Batam for 2 years. Data analysis method used is CAMEL method. To measure the level of health of banking companies in general use Ratio Asset Quality and Earnings ,. Judging from the method of Quality Asset Ratio and Earning is generated a very good weight value so it can be concluded that the Conventional and Syariah Banks in 2014 and 2015 are in the healthy category.

The Korean real estate market is currently slowing down due to the global economic crisis, which resulted from subprime mortgage crisis in the United States. In response, the Korean government has adopted various policies in an attempt to deregulate real estate speculation. For example, the Loan to value ratio (LTV) has been increased in order to stimulate housing supply, demand, and housing transactions. However, these policies could potentially result in a mortgage crisis due to an increase in over‐amplified and high‐risk derivatives in Korea's secondary mortgage market. Consequently, the housing market could fall into such deep confusion that it will be even more difficult to perform empirically based housing market forecasting. Therefore, a comprehensive and systematic method is required to analyze the real estate financial market and the causal relationships between market influence factors. With an integrated perspective and an application of a system dynamics methodology, this paper proposes Korean Real Estate and Mortgage Market dynamics models based on the fundamental principles and causal loops of housing markets, which are determined by the economic activities of consumers, financial agencies, and real estate financing investors. The potential effects of the Korean government's deregulation policies are also considered by focusing on the main factor of these policies: the mortgage loan. Santruka Korejos nekilnojamojo turto rinka šiuo metu išgyvena nuosmuki del pasaulines ekonomines krizes, kuri kilo del JAV būsto paskolu rinkos krizes. Reaguodama i tai, Korejos Vyriausybe emesi ivairiu politikos priemoniu, siekdama užkirsti kelia nekilnojamojo turto spekuliacijai. Pavyzdžiui, buvo padidintas paskolos ir vertes santykis (angl. LTV), siekiant skatinti būsto pasiūla, paklausa ir būsto sandorius. Tačiau šios politicos priemones galetu lemti būsto krize del per daug išplestos ir dideles rizikos išvestinemis priemonemis, didinant Korejos antrinio būsto rinka. Tačiau būsto rinka gali atsidurti tokioje painioje situacijoje, kad bus dar sunkiau atlikti empiriškai pagrista būsto rinkos prognoze. Todel reikalingas išsamus ir sisteminis metodas, padedantis analizuoti finansine nekilnojamojo turto rinka ir priežastini ryši tarp rinka veikiančiu veiksniu. Be integruotos perspektyvos ir dinamiško sistemingu metodu taikymo, šiame straipsnyje siūlomi Korejos nekilnojamojo turto ir paskolu rinkos dinamikos modeliai, pagristi pagrindiniais principais ir pagrindinemis nesekmemis būsto rinkose, kurios nustatomos pagal ekonomine vartotoju veikla, finansuojančias institucijas, ir nekilnojamaji turta finansuojančiais investuotojais. Galimas Korejos Vyriausybes pertvarkymo politicos rezultatas - sutelkti demesi i svarbiausia šiu politikos krypčiu rodikli - būsto paskolas.

Abstract The most recent phase of global capitalism has been characterised by neoliberal arguments which have supported the deregulation of large sectors of world financial markets. This phenomenon has led to so-called financialization with capital attempting to separate itself from the material base of the economy. The instability of this form of economic activity in addition to the highly attractive short-term returns the financial sector has offered has been the main driver of the current global financial crisis. This article will seek to examine the manners in which global regulatory frameworks can be reformed to ameliorate the current crisis and create an institutional architecture that will be robust to future shocks. It will be argued that reform needs to proceed in two directions depth and breadth. During the neoliberal phase of economic development, the public discourse on economic policy has centred on arguments based solely upon economic value, it will be suggested that a reformed framework needs to take into account and admit into the space of public reasons, ethical, aesthetic and civic arguments. This is due to the highly volatile nature of economic value and the necessity to acknowledge that in addition to being producers and consumers economic agents are also people. In a similar vein following the work of Karl-Otto Apel on the public sphere, international regulatory institutions should take into consideration and be accountable to all those effected by their policies and actions. Given the increasingly integrated nature of the European and World economies agencies need to be rendered democratic

This article begins by challenging the widely held view in neoliberal discourse that there is a necessary trade-off between higher efficiency and lower reduction of inequalities: the article empirically shows that the liberal, U.S. model has been less efficient economically (slower economic growth, higher unemployment) than the social model in existence in the European Union and in the majority of its member states. Based on the data presented, the authors criticize the adoption of features of the liberal model (such as deregulation of their labor markets, reduction of public social expenditures) by some European governments. The second section analyzes the causes for the slowdown of economic growth and the increase of unemployment in the European Union—that is, the application of monetarist and neoliberal policies in the institutional frame of the European Union, including the Stability Pact, the objectives and modus operandi of the European Central Bank, and the very limited resources available to the European Commission for stimulating and distributive functions. The third section details the reasons for these developments, including (besides historical considerations) the enormous influence of financial capital in the E.U. institutions and the very limited democracy. Proposals for change are included.

The non-profit sector remains relatively small and underdeveloped in Pakistan. During the decade of the 1990s, it has demonstrated some nascent growth resulting from a number of favourable factors like the return to democracy, the growing push towards deregulation and privatisation, the process of globalisation and the emergence of international coalitions of civil society and the deterioration in the financial position of governments which has limited the public provision of social services. The objective of this paper is to examine the role played by government policy in fostering this process of growth of the non-profit sector of Pakistan and to review the key issues faced by the sector at this time. Of particular concern are, first, the overall posture of the government towards the non-profit sector, the types of policies in place, and the underlying philosophy or principles that guide policy-making. Second, the forms of support to the non-profit sector by different levels of government. Third, the posture of international organisations and supranational governments towards local non-profit organisations and, forth, the major issues facing the non-profit sector at the present time.

During the 1970s and 1980s the Australian and New Zealand economies have been passing through a period of restructuring. This has had important impacts upon the housing sector, leading to rises in house and land prices, in interest rates, and therefore in the costs of house purchase. Under these conditions a new agenda of housing issues has appeared concerning the affordability of housing and the continued access of modest and lower income households to the dominant form of tenure, owner-occupation. The 1980s saw the election of Labour governments committed to action in the area of housing. However, somewhat paradoxically, both in Australia and in New Zealand the policies pursued have been those of deregulation to produce a more competitive financial market. To preserve access to housing, new mortgage schemes have been designed. Two such schemes, the Capital Loan Scheme of Victoria and New Zealand's Equity Share Scheme are evaluated in the paper to show the nature of the adopted policy-response. The article is concluded with the demonstration of the limitations of such policy-based solutions to what are macroeconomic problems which are produced by moving towards an economic and social policy shaped by market monetarism.

Deteriorating and troubled assets must be subjected to enhanced risk oversight and monitoring to ensure that appropriate action is taken in a timely manner, allowing a high level of obligor turnaround success and reduced risk of loss for the Lender/Financial Institution/Bank. It’s important for a Bank to harmonize Distressed Debt Management approach, called the Watch List (WL) Framework, and details the requirements to ensure timely adherence to regulatory requirements. The impairment requirements of International Financial Reporting Standards (IFRS 9) Financial Instruments, effective as of 1 January 2018, are based on an Excepted Credit Loss (ECL) model and replace the IAS 39 Financial Instruments; Recognition and Measurement incurred loss model. IFRS 9, recognizes impairment allowances on either a 12-month or lifetime ECL basis, dependent on whether there was a significant increase in credit risk (SICR) since initial recognition (being either asset origination date or ‘base date’, whichever is most recent). The measurement of ECL reflects both a probability-weighted outcome and the time value of money, using the best available forward-looking information. There should be relevant policies that would require to be read in conjunction with relevant manuals and Accounting Standards. It’s equally important to detail the monitoring objectives for consistent management of wholesale impairment and the provisions necessary to meet regulatory requirements. It is imperative that when dealing with Distressed Debt/Assets, that attention is given to the requirements detailed under Conduct Risk and that client confidentiality is maintained. Mostly, business failure is a result of financial and/or economic distress. A firm in financial distress experiences a shortfall in cash flow needed to meet its debt obligations. Its business model does not necessarily have fundamental problems and its products are often attractive. In contrast, firms in economic distress have unsustainable business models and will not be viable without asset restructuring. In practice, many distressed firms suffer from a combination of the two. Many factors contribute to the high number of business failures. Some common failures include and are not limited to the below. Poor operating performance and high financial leverage. A firm's poor operating performance may result from many factors, such as poorly executed acquisitions, competition, overcapacity, new channels of competition within an industry (e.g., retail), commodity price shocks (e.g., energy), and cyclical industries (e.g., airlines). High financial leverage exacerbates the effect of poor operating performance on the likelihood of corporate failure. Lack of technological innovation. Technological innovation creates negative shocks to businesses that do not innovate. The arrival of a new technology often threatens the survival of firms that possess related, yet less competitive, technologies. There needs for a business to strategically position itself in the market through digital transformation in its processes, product development and operations Liquidity and funding shock. In periods of weak credit supply, some businesses are unable to roll over maturing debt because of illiquidity in credit markets. Relatively high new business formation rates in certain periods. New business formation is usually based on optimism about the future. But new businesses fail with far greater frequency than do more seasoned entities, and the failure rate can be expected to increase in the years immediately following a surge in new business activity. Deregulation of key industries. Deregulation removes the protective cover of a regulated industry (e.g., airlines, financial services, HealthCare, energy) and fosters larger numbers of entering and exiting firms. Competition is far greater in a deregulated environment. Unexpected liabilities. Businesses may fail because off-balance sheet contingent liabilities suddenly become material on-balance sheet liabilities.

This analysis of “neoliberalism” and its economic and social consequences is presented in six sections. Section I begins by describing the impact of neoliberal public policies on economic growth and inflation, on business profits and business investments, on productivity, on business credit, on unemployment and social inequalities, on social expenditures, and on poverty and family debt. The author shows that, except in the area of business profits and control of inflation, neoliberal policies have not proved superior to those they replaced. Section II deals with unemployment and social polarization in the developed capitalist countries. The author criticizes some of the theories put forward to explain these social problems, such as the introduction of new technologies and globalization of the economy, and suggests that a primary reason for these problems is the implementation of neoliberal policies. Section III challenges the widely held neoliberal perception that the U.S. economy is highly efficient and the E.U. economies are “sclerotic” due to their “excessive” welfare states and “rigid” labor markets. The author shows that the U.S. economy is not so dynamic, nor the E.U. economies so sclerotic. Some developed countries with greater social protection and more regulated labor markets are shown to be more successful than the United States in producing jobs and lowering unemployment. The reasons for the growing polarization in developed capitalist countries, rooted in political rather than economic causes, are discussed in section IV—especially the enormous power of the financial markets and their influence on international agencies and national governments, and the weakness of the labor movements, both nationally and internationally. Section V questions the major theses of globalization. The author shows that rather than globalization of commerce and investments, we are witnessing a regionalization of economic relations stimulated by political considerations. He also analyzes the globalization of capital finance, criticizing the thesis that capital markets are determining public policies. The economic determinism that underlies the globalization position is questioned, uncovering the importance of political explanations for understanding major social problems such as unemployment. Finally, section VI shows that neoliberal public policies on the deregulation of labor markets are creating enormous instability in the labor force, worsening the living conditions of the majority of the populations.

Until the mid-1970s, governments all over the world (especially in the developing economies), intervened in markets on the pretext of market failure arising from externalities, decreasing cost industries, and equity considerations for maximising social welfare. In Pakistan, where the private sector has played a dominant role, except probably for the 1970s,1 private sector activities have all along been regulated through various types of controls and regulations on entry and exit, prices, credit, foreign exchange, imports, investments, etc. These regulations were imposed with a view to ensuring that private sector allocations were in accordance with the national priorities [see Pakistan (1983-84)]. However, the objectives were rarely realised and, in fact, these regulations have been responsible for red-tapism and corruption. On the grounds of government failure, privatisation and deregulation policies are being practised almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been effected in Pakistan over the last two decades. Investment and import licensing have been withdrawn, most of the foreign exchange restrictions have been removed, capital market regulations have been simplified, price controls have been lifted, and interest rates have been deregulated. However, there is considerable room for further regulatory reforms. Similarly, various public enterprises in the manufacturing and financial sectors have been privatised, telecommunication, airlines, and energy firms have been partially divested, and the government has an ambitious privatisation programme of divestiture in various other fields. The main force behind the process of privatisation is the need to address the problems of mismanagement of resources, overstaffing, inappropriate and costly investments, poor quality of services, and heavy losses of various public enterprises.

Cross-border merger and acquisitions (hereinafter, M&A’s) have increased exponentially in Asia since the mid-1990s due to the liberalization of the economy, the deregulation of the service sector, privatization of state-owned public enterprises, and the relaxation of regulatory controls over cross-border M&A's. ASEAN economies and India are significant players in the global arena for cross-border M&A's, and thus, their importance cannot be undermined. Cross-border M&A's have distinctive implications on the socio-economic scenario of a Nation, and most importantly, it impacts substantial change in legal dimensions, involving compliance requirements, acquisition procedures, and tax liabilities. The present study is a doctrinal one; the primary objective being, a legislative frame analysis of select ASEAN countries and India with regards to cross-border M&A’s. The top five ASEAN countries, viz., Indonesia, Malaysia, the Philippines, Singapore, and Thailand were selected on account of the cross-border trade volume over the past decade. The authors applied comparative and analytical methods to pursue the research inquiry. The second objective was to ascertain the vital macro-economic factors playing a decisive role in the outcome of cross-border M&A’s in the select region. Here the authors highlighted the relationship between certain macro-economic factors like trade openness, financial integration, increased inflation, increased GDP, etc. which positively impact M&As. The third and final objective was to analyze the trends of cross border M&A’s in the select region for the past decade, i.e. 2008 to 2018, as this period perfectly encapsulates a complete economic cycle from depression to boom alongside major legal developments in the field of cross-border M&A’s around the world. Furthermore, while undergoing the study, the authors highlighted certain risk factors in terms of competition, transaction, and people with regards to cross border M&A’s in the select region. Findings from the study indicated that ASEAN economies have little experience in framing and enforcing competition policies, hence, a suitable policy to reduce risk is the immediate need of the hour.

Since the collapse of the centrally-planned system, countries in transition have walked a rough road to recovery. Almost instantly, national economies opened to global markets, enforced price liberalization measures, combined with macroeconomic stabilization policies and structural reforms. At the beginning of the 1990s, they experienced a fall in output, accompanied by other deteriorating features, such as high unemployment, emigration, high level of informal economy, deteriorating balance of payments, growing debt, wars, ethnic problems etc. The annual real GDP per capita growth of most transitive economies during the early periods of transition (1990-1993) was. A major caveat in assessing the depth of the output fall is that it refers to official estimates and thus ignores the shadow economy or informal sector, which has grown very rapidly in the early transition years. The South-East European countries, additionally affected by the wars of Yugoslav secession, recorded notably larger output losses at the beginning of the transition than Central-East European Countries, reaching a negative peak of -20%, and an average decline of 10.90%, but exhibited high growth rates in the mid and late 1990s, as hostilities ended, macroeconomic stabilization took hold and structural reforms advanced. The speed of recovery differed significantly across countries, particularly in the period 1994-2001.This is particuly case in countries from Western Balkan where they were faceing and still face many economic problems like as prolonged recessions, due to differing reform progress, varying impact of the war, unemployment, poverty, low living standards and inflation. Thus, these countries always try to increase their national income and hence create more jobs with maintained economic growth. Bearing this in mind it is essential the countries from this region consider steps towards financial liberalization and deregulation which will help open the borders for capital flows and attract new investments. In fact, financial and banking sector development leads to the increase in economic growth in any economy through financing economic development.Banking system is important to the economic growth through its ability in gathering and attracting deposits from savers. Secondly, its role in providing loans to encourage investment and production. Thirdly, its ability in creating economic expansion to the most of economic sectors such as; Agriculture, industry and trade sector. Fourthly, its intermarry role between savers and borrowers. Finally, banking industry provide entrepreneurs with required loans in order to finance the adoption of new production techniques. This paper examines the question whether in 6 countries from Western Balkan the banking sector influences economic growth. The empirical investigation was carried out using fixed effect model. In this study we use two measures for the level of banking development bank credit to private sector in relation to GDP (private credit) and interst margin. Namely, private credit still appears a superior option to the pure ratio of broad money to GDP used in some studies, because it excludes credits by development banks and loans to the government and public enterprises. We expect positive relationship between private credit and economic growth. The second variable is interest margin is likely a good estimator for efficiency in the banking sector as it describes transaction costs within the sector. If the margin declines due to a decrease in transaction costs, the share of savings going to investments increases. As growth is positively linked to investment, a decrease in transaction costs should accelerate economic growth. The results suggests that credit to the private sector is positively and significant, while interes margin is negatively and insignificant related to economic growth.

Abstract The law reform process entails government policies and plans for the liberalization, privatization and deregulations of the economy including the banking and money markets. The International financial institutions (IFIs), International Development Agencies (IDAs) and the International Financial Architecture have pioneered law reform initiatives based on the rule of law practice and good governance. The dominant theory advocated by Perry-kessaris postulates that a sound legal system is attractive for foreign direct investment (FDI). The bilateral investment treaties (BITs) contain international law standards which can be used as a model for reforming laws and institutions in the host state including prudential regulation of banking and finance. Iran – a resource-rich country has signed many BITs with capital-exporting countries indicating its willingness to enforce the rule of law on the international level.

The problem of population decline and local annihilation is directly linked to the problems of national existence and balanced national development. Despite massive fiscal and population growth policies to solve the problem of low fertility and aging according to the Framework Act on Low Fertility and Aging, the population fertility rate is 0.81 in 2021, which is the lowest in the world. As the phenomenon of concentration in the metropolitan area accelerated due to a decrease in local jobs and unbalanced development of the region, the Special Act on Balanced National Development, the Metropolitan Area Reorganization Planning Act, and the Local University Promotion Act have been enacted and implemented to solve the problem. development is not resolved. The government enacted the Special Act on Support for Depopulated Areas in June 2022 to respond to local annihilation. In the same law, local governments lead crisis response in areas with reduced population, national customized comprehensive support, strengthening cooperation between local governments and countries, and special provisions for childcare, medical care, housing, transportation, culture, and immigration in areas with reduced population is putting. Although it is necessary to distinguish between population reduction and local annihilation, the Special Act on Support for Depopulation Areas defines only the term “depopulation area” and does not define the concept of “local annihilation”. It is necessary to conceptually define a region that requires special social, economic, financial, and administrative measures from the state as local governments cannot survive on their own or are in danger of extinction as an area with a low population density. In this paper, after examining the main contents of Korea's Constitution, the Special Act on Balanced National Development, and the Special Act on Support for Depopulated Areas, to find implications for Korea and propose public law tasks by reviewing the Spanish Constitution and the legislative examples of Castile-La Mancha in Spain, present. First, although the Korean constitution provides for balanced national development, the principle of solidarity stipulated in Articles 2 and 138 of the Spanish Constitution is stipulated to provide positive preferential treatment to areas in danger of late extinction or concern, so that the lives of the residents of the area are made. quality should be improved. Second, shared accommodation through settlement subsidies, tax reductions, and vacant home village regeneration should be made to activate residential mobility and sedentity in areas with reduced population and local extinction. Third, the Special Act on Support for Areas with Decreased Population has special regulations regarding the establishment of childcare facilities and universities, hearing opinions from the heads of local governments when kindergartens and elementary schools are closed, subsidizing expenses, and special measures for school establishment. Since it is necessary to substantially guarantee the right to education and access to education, etc., legal and institutional arrangements should be made to ensure the right to access public education, maintain schools, guarantee equal access to education for students, internship programs, non-compulsory education programs, and vocational training. Fourth, since the expansion of jobs and local labor force is the key to recovering the lost population and suppressing the disappearance of local areas, it is possible to create effective and suitable jobs in the depleted areas, as well as incentives for workers in the depleted areas, and to develop public and private projects and projects. Promotion, deregulation, and simplification of administrative procedures, project projects and plan implementation management systems for local extinction areas, and funding programs (subsidies) should be introduced.

The article reviews the macroeconomic consequences of natural disasters based on the ECLAC methodology, which separates direct physical damage from indirect damage and additional or secondary effects. A study of the impact of natural disasters on long-term economic growth and development has shown that the scarcity of financial resources after a natural disaster reduces future growth and requires the disclosure of risks associated with dangerous natural phenomena for three reasons. Firstly, there are large opportunity costs associated with diverting scarce financial resources into relief and disaster recovery efforts. Secondly, natural disasters can damage an already complex budgeting process. Thirdly, natural disasters place high demands on international aid resources, diverting resources from development. Natural disasters have a negative impact on both the short and long term. These developments refute the somewhat simplistic notion of a general decline in vulnerability to natural disasters as the economy grows. Instead, a more sophisticated perspective needs to be adopted and applied when conducting detailed macroeconomic risk assessments. Based on the results of such assessments, the risks associated with natural hazards should be included in general development policies and plans. Risk management strategies should also reflect the fact that disasters occur in different hazard categories (climatic, geophysical or epidemic) and entail different risk reduction options. It is also necessary to assess the experience gained from specific events and, if necessary, take appropriate action. Disasters can cause policy and institutional innovation changes that ultimately benefit, in some cases, not only in reducing vulnerability but also in supporting economic growth and development: deregulating agricultural investment, applying climate forecasting to reduce the impact of climate variability, financial risk management mechanisms. In order to manage risks and mitigate the effects of natural disasters by informing users of financial statements about possible side effects of the pandemic, the issue of disclosure and recalculation of financial statements was considered to reflect the effects of coronavirus on companies and assess financial risks.

In this issue of Journal of Disaster Research, we introduce nine papers on societal responses to recent catastrophic disasters with special focus on long-term recovery processes in Japan and the United States. As disaster impacts increase, we also find that recovery times take longer and the processes for recovery become more complicated. On January 17th of 1995, a magnitude 7.2 earthquake hit the Hanshin and Awaji regions of Japan, resulting in the largest disaster in Japan in 50 years. In this disaster which we call the Kobe earthquake hereafter, over 6,000 people were killed and the damage and losses totaled more than 100 billion US dollars. The long-term recovery from the Kobe earthquake disaster took more than ten years to complete. One of the most important responsibilities of disaster researchers has been to scientifically monitor and record the long-term recovery process following this unprecedented disaster and discern the lessons that can be applied to future disasters. The first seven papers in this issue present some of the key lessons our research team learned from the studying the long-term recovery following the Kobe earthquake disaster. We have two additional papers that deal with two recent disasters in the United States – the terrorist attacks on World Trade Center in New York on September 11 of 2001 and the devastation of New Orleans by the 2005 Hurricane Katrina and subsequent levee failures. These disasters have raised a number of new research questions about long-term recovery that US researchers are studying because of the unprecedented size and nature of these disasters’ impacts. Mr. Mammen’s paper reviews the long-term recovery processes observed at and around the World Trade Center site over the last six years. Ms. Johnson’s paper provides a detailed account of the protracted reconstruction planning efforts in the city of New Orleans to illustrate a set of sufficient and necessary conditions for successful recovery. All nine papers in this issue share a theoretical framework for long-term recovery processes which we developed based first upon the lessons learned from the Kobe earthquake and later expanded through observations made following other recent disasters in the world. The following sections provide a brief description of each paper as an introduction to this special issue. 1. The Need for Multiple Recovery Goals After the 1995 Kobe earthquake, the long-term recovery process began with the formulation of disaster recovery plans by the City of Kobe – the most severely impacted municipality – and an overarching plan by Hyogo Prefecture which coordinated 20 impacted municipalities; this planning effort took six months. Before the Kobe earthquake, as indicated in Mr. Maki’s paper in this issue, Japanese theories about, and approaches to, recovery focused mainly on physical recovery, particularly: the redevelopment plans for destroyed areas; the location and standards for housing and building reconstruction; and, the repair and rehabilitation of utility systems. But the lingering problems of some of the recent catastrophes in Japan and elsewhere indicate that there are multiple dimensions of recovery that must be considered. We propose that two other key dimensions are economic recovery and life recovery. The goal of economic recovery is the revitalization of the local disaster impacted economy, including both major industries and small businesses. The goal of life recovery is the restoration of the livelihoods of disaster victims. The recovery plans formulated following the 1995 Kobe earthquake, including the City of Kobe’s and Hyogo Prefecture’s plans, all stressed these two dimensions in addition to physical recovery. The basic structure of both the City of Kobe’s and Hyogo Prefecture’s recovery plans are summarized in Fig. 1. Each plan has three elements that work simultaneously. The first and most basic element of recovery is the restoration of damaged infrastructure. This helps both physical recovery and economic recovery. Once homes and work places are recovered, Life recovery of the impacted people can be achieved as the final goal of recovery. Figure 2 provides a “recovery report card” of the progress made by 2006 – 11 years into Kobe’s recovery. Infrastructure was restored in two years, which was probably the fastest infrastructure restoration ever, after such a major disaster; it astonished the world. Within five years, more than 140,000 housing units were constructed using a variety of financial means and ownership patterns, and exceeding the number of demolished housing units. Governments at all levels – municipal, prefectural, and national – provided affordable public rental apartments. Private developers, both local and national, also built condominiums and apartments. Disaster victims themselves also invested a lot to reconstruct their homes. Eleven major redevelopment projects were undertaken and all were completed in 10 years. In sum, the physical recovery following the 1995 Kobe earthquake was extensive and has been viewed as a major success. In contrast, economic recovery and life recovery are still underway more than 13 years later. Before the Kobe earthquake, Japan’s policy approaches to recovery assumed that economic recovery and life recovery would be achieved by infusing ample amounts of public funding for physical recovery into the disaster area. Even though the City of Kobe’s and Hyogo Prefecture’s recovery plans set economic recovery and life recovery as key goals, there was not clear policy guidance to accomplish them. Without a clear articulation of the desired end-state, economic recovery programs for both large and small businesses were ill-timed and ill-matched to the needs of these businesses trying to recover amidst a prolonged slump in the overall Japanese economy that began in 1997. “Life recovery” programs implemented as part of Kobe’s recovery were essentially social welfare programs for low-income and/or senior citizens. 2. Requirements for Successful Physical Recovery Why was the physical recovery following the 1995 Kobe earthquake so successful in terms of infrastructure restoration, the replacement of damaged housing units, and completion of urban redevelopment projects? There are at least three key success factors that can be applied to other disaster recovery efforts: 1) citizen participation in recovery planning efforts, 2) strong local leadership, and 3) the establishment of numerical targets for recovery. Citizen participation As pointed out in the three papers on recovery planning processes by Mr. Maki, Mr. Mammen, and Ms. Johnson, citizen participation is one of the indispensable factors for successful recovery plans. Thousands of citizens participated in planning workshops organized by America Speaks as part of both the World Trade Center and City of New Orleans recovery planning efforts. Although no such workshops were held as part of the City of Kobe’s recovery planning process, citizen participation had been part of the City of Kobe’s general plan update that had occurred shortly before the earthquake. The City of Kobe’s recovery plan is, in large part, an adaptation of the 1995-2005 general plan. On January 13 of 1995, the City of Kobe formally approved its new, 1995-2005 general plan which had been developed over the course of three years with full of citizen participation. City officials, responsible for drafting the City of Kobe’s recovery plan, have later admitted that they were able to prepare the city’s recovery plan in six months because they had the preceding three years of planning for the new general plan with citizen participation. Based on this lesson, Odiya City compiled its recovery plan based on the recommendations obtained from a series of five stakeholder workshops after the 2004 Niigata Chuetsu earthquake. <strong>Fig. 1. </strong> Basic structure of recovery plans from the 1995 Kobe earthquake. <strong>Fig. 2. </strong> “Disaster recovery report card” of the progress made by 2006. Strong leadership In the aftermath of the Kobe earthquake, local leadership had a defining role in the recovery process. Kobe’s former Mayor, Mr. Yukitoshi Sasayama, was hired to work in Kobe City government as an urban planner, rebuilding Kobe following World War II. He knew the city intimately. When he saw damage in one area on his way to the City Hall right after the earthquake, he knew what levels of damage to expect in other parts of the city. It was he who called for the two-month moratorium on rebuilding in Kobe city on the day of the earthquake. The moratorium provided time for the city to formulate a vision and policies to guide the various levels of government, private investors, and residents in rebuilding. It was a quite unpopular policy when Mayor Sasayama announced it. Citizens expected the city to be focusing on shelters and mass care, not a ban on reconstruction. Based on his experience in rebuilding Kobe following WWII, he was determined not to allow haphazard reconstruction in the city. It took several years before Kobe citizens appreciated the moratorium. Numerical targets Former Governor Mr. Toshitami Kaihara provided some key numerical targets for recovery which were announced in the prefecture and municipal recovery plans. They were: 1) Hyogo Prefecture would rebuild all the damaged housing units in three years, 2) all the temporary housing would be removed within five years, and 3) physical recovery would be completed in ten years. All of these numerical targets were achieved. Having numerical targets was critical to directing and motivating all the stakeholders including the national government’s investment, and it proved to be the foundation for Japan’s fundamental approach to recovery following the 1995 earthquake. 3. Economic Recovery as the Prime Goal of Disaster Recovery In Japan, it is the responsibility of the national government to supply the financial support to restore damaged infrastructure and public facilities in the impacted area as soon as possible. The long-term recovery following the Kobe earthquake is the first time, in Japan’s modern history, that a major rebuilding effort occurred during a time when there was not also strong national economic growth. In contrast, between 1945 and 1990, Japan enjoyed a high level of national economic growth which helped facilitate the recoveries following WWII and other large fires. In the first year after the Kobe earthquake, Japan’s national government invested more than US$ 80 billion in recovery. These funds went mainly towards the repair and reconstruction of infrastructure and public facilities. Now, looking back, we can also see that these investments also nearly crushed the local economy. Too much money flowed into the local economy over too short a period of time and it also did not have the “trickle-down” effect that might have been intended. To accomplish numerical targets for physical recovery, the national government awarded contracts to large companies from Osaka and Tokyo. But, these large out-of-town contractors also tended to have their own labor and supply chains already intact, and did not use local resources and labor, as might have been expected. Essentially, ten years of housing supply was completed in less than three years, which led to a significant local economic slump. Large amounts of public investment for recovery are not necessarily a panacea for local businesses, and local economic recovery, as shown in the following two examples from the Kobe earthquake. A significant national investment was made to rebuild the Port of Kobe to a higher seismic standard, but both its foreign export and import trade never recovered to pre-disaster levels. While the Kobe Port was out of business, both the Yokohama Port and the Osaka Port increased their business, even though many economists initially predicted that the Kaohsiung Port in Chinese Taipei or the Pusan Port in Korea would capture this business. Business stayed at all of these ports even after the reopening of the Kobe Port. Similarly, the Hanshin Railway was severely damaged and it took half a year to resume its operation, but it never regained its pre-disaster readership. In this case, two other local railway services, the JR and Hankyu lines, maintained their increased readership even after the Hanshin railway resumed operation. As illustrated by these examples, pre-disaster customers who relied on previous economic output could not necessarily afford to wait for local industries to recover and may have had to take their business elsewhere. Our research suggests that the significant recovery investment made by Japan’s national government may have been a disincentive for new economic development in the impacted area. Government may have been the only significant financial risk-taker in the impacted area during the national economic slow-down. But, its focus was on restoring what had been lost rather than promoting new or emerging economic development. Thus, there may have been a missed opportunity to provide incentives or put pressure on major businesses and industries to develop new businesses and attract new customers in return for the public investment. The significant recovery investment by Japan’s national government may have also created an over-reliance of individuals on public spending and government support. As indicated in Ms. Karatani’s paper, individual savings of Kobe’s residents has continued to rise since the earthquake and the number of individuals on social welfare has also decreased below pre-disaster levels. Based on our research on economic recovery from the Kobe earthquake, at least two lessons emerge: 1) Successful economic recovery requires coordination among all three recovery goals – Economic, Physical and Life Recovery, and 2) “Recovery indices” are needed to better chart recovery progress in real-time and help ensure that the recovery investments are being used effectively. Economic recovery as the prime goal of recovery Physical recovery, especially the restoration of infrastructure and public facilities, may be the most direct and socially accepted provision of outside financial assistance into an impacted area. However, lessons learned from the Kobe earthquake suggest that the sheer amount of such assistance may not be effective as it should be. Thus, as shown in Fig. 3, economic recovery should be the top priority goal for recovery among the three goals and serve as a guiding force for physical recovery and life recovery. Physical recovery can be a powerful facilitator of post-disaster economic development by upgrading social infrastructure and public facilities in compliance with economic recovery plans. In this way, it is possible to turn a disaster into an opportunity for future sustainable development. Life recovery may also be achieved with a healthy economic recovery that increases tax revenue in the impacted area. In order to achieve this coordination among all three recovery goals, municipalities in the impacted areas should have access to flexible forms of post-disaster financing. The community development block grant program that has been used after several large disasters in the United States, provide impacted municipalities with a more flexible form of funding and the ability to better determine what to do and when. The participation of key stakeholders is also an indispensable element of success that enables block grant programs to transform local needs into concrete businesses. In sum, an effective economic recovery combines good coordination of national support to restore infrastructure and public facilities and local initiatives that promote community recovery. Developing Recovery Indices Long-term recovery takes time. As Mr. Tatsuki’s paper explains, periodical social survey data indicates that it took ten years before the initial impacts of the Kobe earthquake were no longer affecting the well-being of disaster victims and the recovery was completed. In order to manage this long-term recovery process effectively, it is important to have some indices to visualize the recovery processes. In this issue, three papers by Mr. Takashima, Ms. Karatani, and Mr. Kimura define three different kinds of recovery indices that can be used to continually monitor the progress of the recovery. Mr. Takashima focuses on electric power consumption in the impacted area as an index for impact and recovery. Chronological change in electric power consumption can be obtained from the monthly reports of power company branches. Daily estimates can also be made by tracking changes in city lights using a satellite called DMSP. Changes in city lights can be a very useful recovery measure especially at the early stages since it can be updated daily for anywhere in the world. Ms. Karatani focuses on the chronological patterns of monthly macro-statistics that prefecture and city governments collect as part of their routine monitoring of services and operations. For researchers, it is extremely costly and virtually impossible to launch post-disaster projects that collect recovery data continuously for ten years. It is more practical for researchers to utilize data that is already being collected by local governments or other agencies and use this data to create disaster impact and recovery indices. Ms. Karatani found three basic patterns of disaster impact and recovery in the local government data that she studied: 1) Some activities increased soon after the disaster event and then slumped, such as housing construction; 2) Some activities reduced sharply for a period of time after the disaster and then rebounded to previous levels, such as grocery consumption; and 3) Some activities reduced sharply for a while and never returned to previous levels, such as the Kobe Port and Hanshin Railway. Mr. Kimura focuses on the psychology of disaster victims. He developed a “recovery and reconstruction calendar” that clarifies the process that disaster victims undergo in rebuilding their shattered lives. His work is based on the results of random surveys. Despite differences in disaster size and locality, survey data from the 1995 Kobe earthquake and the 2004 Niigata-ken Chuetsu earthquake indicate that the recovery and reconstruction calendar is highly reliable and stable in clarifying the recovery and reconstruction process. <strong>Fig. 3.</strong> Integrated plan of disaster recovery. 4. Life Recovery as the Ultimate Goal of Disaster Recovery Life recovery starts with the identification of the disaster victims. In Japan, local governments in the impacted area issue a “damage certificate” to disaster victims by household, recording the extent of each victim’s housing damage. After the Kobe earthquake, a total of 500,000 certificates were issued. These certificates, in turn, were used by both public and private organizations to determine victim’s eligibility for individual assistance programs. However, about 30% of those victims who received certificates after the Kobe earthquake were dissatisfied with the results of assessment. This caused long and severe disputes for more than three years. Based on the lessons learned from the Kobe earthquake, Mr. Horie’s paper presents (1) a standardized procedure for building damage assessment and (2) an inspector training system. This system has been adopted as the official building damage assessment system for issuing damage certificates to victims of the 2004 Niigata-ken Chuetsu earthquake, the 2007 Noto-Peninsula earthquake, and the 2007 Niigata-ken Chuetsu Oki earthquake. Personal and family recovery, which we term life recovery, was one of the explicit goals of the recovery plan from the Kobe earthquake, but it was unclear in both recovery theory and practice as to how this would be measured and accomplished. Now, after studying the recovery in Kobe and other regions, Ms. Tamura’s paper proposes that there are seven elements that define the meaning of life recovery for disaster victims. She recently tested this model in a workshop with Kobe disaster victims. The seven elements and victims’ rankings are shown in Fig. 4. Regaining housing and restoring social networks were, by far, the top recovery indicators for victims. Restoration of neighborhood character ranked third. Demographic shifts and redevelopment plans implemented following the Kobe earthquake forced significant neighborhood changes upon many victims. Next in line were: having a sense of being better prepared and reducing their vulnerability to future disasters; regaining their physical and mental health; and restoration of their income, job, and the economy. The provision of government assistance also provided victims with a sense of life recovery. Mr. Tatsuki’s paper summarizes the results of four random-sample surveys of residents within the most severely impacted areas of Hyogo Prefecture. These surveys were conducted biannually since 1999,. Based on the results of survey data from 1999, 2001, 2003, and 2005, it is our conclusion that life recovery took ten years for victims in the area impacted significantly by the Kobe earthquake. Fig. 5 shows that by comparing the two structural equation models of disaster recovery (from 2003 and 2005), damage caused by the Kobe earthquake was no longer a determinant of life recovery in the 2005 model. It was still one of the major determinants in the 2003 model as it was in 1999 and 2001. This is the first time in the history of disaster research that the entire recovery process has been scientifically described. It can be utilized as a resource and provide benchmarks for monitoring the recovery from future disasters. <strong>Fig. 4.</strong> Ethnographical meaning of “life recovery” obtained from the 5th year review of the Kobe earthquake by the City of Kobe. <strong>Fig. 5.</strong> Life recovery models of 2003 and 2005. 6. The Need for an Integrated Recovery Plan The recovery lessons from Kobe and other regions suggest that we need more integrated recovery plans that use physical recovery as a tool for economic recovery, which in turn helps disaster victims. Furthermore, we believe that economic recovery should be the top priority for recovery, and physical recovery should be regarded as a tool for stimulating economic recovery and upgrading social infrastructure (as shown in Fig. 6). With this approach, disaster recovery can help build the foundation for a long-lasting and sustainable community. Figure 6 proposes a more detailed model for a more holistic recovery process. The ultimate goal of any recovery process should be achieving life recovery for all disaster victims. We believe that to get there, both direct and indirect approaches must be taken. Direct approaches include: the provision of funds and goods for victims, for physical and mental health care, and for housing reconstruction. Indirect approaches for life recovery are those which facilitate economic recovery, which also has both direct and indirect approaches. Direct approaches to economic recovery include: subsidies, loans, and tax exemptions. Indirect approaches to economic recovery include, most significantly, the direct projects to restore infrastructure and public buildings. More subtle approaches include: setting new regulations or deregulations, providing technical support, and creating new businesses. A holistic recovery process needs to strategically combine all of these approaches, and there must be collaborative implementation by all the key stakeholders, including local governments, non-profit and non-governmental organizations (NPOs and NGOs), community-based organizations (CBOs), and the private sector. Therefore, community and stakeholder participation in the planning process is essential to achieve buy-in for the vision and desired outcomes of the recovery plan. Securing the required financial resources is also critical to successful implementation. In thinking of stakeholders, it is important to differentiate between supporting entities and operating agencies. Supporting entities are those organizations that supply the necessary funding for recovery. Both Japan’s national government and the federal government in the U.S. are the prime supporting entities in the recovery from the 1995 Kobe earthquake and the 2001 World Trade Center recovery. In Taiwan, the Buddhist organization and the national government of Taiwan were major supporting entities in the recovery from the 1999 Chi-Chi earthquake. Operating agencies are those organizations that implement various recovery measures. In Japan, local governments in the impacted area are operating agencies, while the national government is a supporting entity. In the United States, community development block grants provide an opportunity for many operating agencies to implement various recovery measures. As Mr. Mammen’ paper describes, many NPOs, NGOs, and/or CBOs in addition to local governments have had major roles in implementing various kinds programs funded by block grants as part of the World Trade Center recovery. No one, single organization can provide effective help for all kinds of disaster victims individually or collectively. The needs of disaster victims may be conflicting with each other because of their diversity. Their divergent needs can be successfully met by the diversity of operating agencies that have responsibility for implementing recovery measures. In a similar context, block grants made to individual households, such as microfinance, has been a vital recovery mechanism for victims in Thailand who suffered from the 2004 Sumatra earthquake and tsunami disaster. Both disaster victims and government officers at all levels strongly supported the microfinance so that disaster victims themselves would become operating agencies for recovery. Empowering individuals in sustainable life recovery is indeed the ultimate goal of recovery. <strong>Fig. 6.</strong> A holistic recovery policy model.

This article makes case of how South Africa has been able to use its laws and policies to achieve its objectives of regulating private higher education. This happened in the context of an ascendancy of neo-liberal policies which favoured deregulation and the rolling back of the state. Through these policies the government was able to protect the public even during the global financial crisis as it had registered credible and financially sound institutions which could weather off the financial crises which affected many private companies worldwide.

The pre-reform policies, coupled with an acute and prolonged economic crisis which severely damaged the financial system in Ghana, caused policymakers to address the institutional deficiencies of the financial system through the Financial Sector Adjustment Program. This paper investigated the pre- and post-reforms policies to determine whether those policies have helped to eradicate problems that have hindered the effectiveness of the financial system. The liberalization of Ghanas financial system has included the relaxation of interest rate controls, credit ceiling, partial privatization of the governments own banks, restructuring of public sector banks, capital markets developments, and deregulation of the prudential system. The performance of the financial sector has been substantial and healthy since the reforms. Overall, the financial liberalization strategy pursued in Ghana has been supportive of wider economic development.

This work investigated the relationship between interest rate deregulation and performance of Nigerian deposit money banks for the period 1996-2018. Interest rate deregulation was disaggregated into prime lending rate, maximum lending rate, 3-months deposit rate and over 12-months deposit rate while return on assets (ROA) was used as a proxy for deposit money banks’ performance. Data on the above variables were sourced from the Central Bank of Nigeria Statistical Bulletin (2018 edition) and the World Bank data base. The data were tested for stationarity using the Dickey-Fuller (D-F) test, for long-run relationship using Bound’s co-integration test, and for reliability of ARDL results using serial correlation, heteroscedasticity and normality tests. The results of the tests revealed that all the variables were integrated of order zero or one, and that a long-run relationship exists between the variables. Consequently, ARDL model for parameter estimation process revealed that only prime lending rate was positively related to ROA of banks while none of the explanatory variables was statistically significant. The researcher then submitted that there is no significant relationship between interest rate deregulation and the performance of Nigerian deposit money banks for the period considered. Hence, deposit money banks should strive to mobilize adequate savings from surplus spenders by offering them deposit rates that are capable of inducing savers to increase their savings and boost the availability of loanable funds. Also, there is urgent need to restructure the Nigerian financial system whereby policies by the monetary authorities will achieve pre-determined goals. In essence, to make interest rate policies meaningful, there is need to curtail financial transactions that escape the banking system.

History shows that the major economic crises in the last century were triggered by three factors closely interconnected: financial deregulation, leading to irresponsibility of the intermediaries; strong polarization in the distribution of income usually associated with a huge rise in household debt; economic policies unable of keeping aggregate demand at a level corresponding to an adequate utilization of resources. Governments should both avoid the insurgence of the crises and solve them through suitable policies.

The beginning of the 21st century, the phenomenon of globalization, the IT revolution and the financialization of the economy have also changed the terms of the comparison among capitalist countries. At global level, the rapid expansion of the financial sector was also encouraged by an increase in innovative financial products. Regulators and supervisors have not been able to adequately identify and address the growing risks in the financial system. The beginning of the financial crisis has brought to light such weaknesses. And it is from this negative experience that the major world authorities have intervened, trying to set up plans and regulations to protect the financial system and consumers. The analysis of the framework that comes with the financial crisis of 2007-2013 is thus a starting point for this work to understand the new features of world capitalism. American and European capitalist systems seem to diverge above all on the policies and instruments for regulating the financial system. The aim of the work is to show the differences between the US and European financial and banking regulation. The former is geared towards reviving deregulation and financial innovation while the latter is more geared towards redesigning a more accentuated regulatory model with a governance of the economy that always sees the presence of a mixed welfare and market system.

PurposeThe purpose of the study is to explore the implications of global financial integration on host economies in Sub-Saharan Africa (SSA). The study tests the competing views on the impact of foreign bank penetration on private sector access to credit in developing host economies.Design/methodology/approachUsing data on a panel 25 SSA economies over a period of 22 years from 1995 to 2016, the study employs fixed effects and Prais-Winsten estimations as well as generalized methods of moments (GMM) to test the foreign bank impact.FindingsThe findings show support for the hypothesis that global financial integration has positive implications for participating economies. In other words, financial sector liberalization and deregulation leading to the influx of foreign banks has positive implications for access to credit by the private sector in SSA economies. The study also finds other standard determinants of access to credit like lending rate and broad money supply conforming to the existing literature in terms of impact.Originality/valueOverall, the findings hold relevant implications for banking sector policies and the financial sector in general regarding the priority that policy makers and advisors attach to reforming financial sector policies.

Global economic growth is forecast to pick up from 3.0 per cent in 2016 to 3.1 per cent in 2017 and 3.5 per cent in 2018 – a slightly weaker acceleration than projected last November.The unexpected result of the US presidential election has dominated recent financial market developments, with hikes in bond yields, a further appreciation of the US dollar, and rises in stock market prices reflecting expectations of US tax cuts, infrastructure spending, deregulation and trade measures.Our forecast assumes established policies. Potential policy changes in the US and any response in the rest of the world therefore pose significant risks to our projections.

According to a common recurring analysis approach, most studies have defined the present external and universal internal deficit crisis, as the result of a wrong financial deregulation appearing in most modern financial markets. Speculation pressures, relaxing policies, monitoring over banks capital and bank governance models, seem as paying a widespread role as well. On the contrary, some historical and present new behavioral viewpoints show a uniform result of new general widespread monetary mismanagement attitudes, in a global new monetary perspective. Both Western financial markets and the new European single currency creation are showing same surfacing effects, which are generally large internal national deficits, huge trade imbalances and growing unemployment rates. The general market collapses that occurred up to the last 2008 unexpected monetary disintegration, considered firstly as the logical final effect of deep systematic crisis, as never before interlinked during the the twentieth century, has brought to a confused and contradictory row of financial irrecoverable shocks. Stemming from the monetary dissolution materialized during the First World War and never recovered, but for the short Bretton Woods interlude, the international and most of national payment systems are nowadays in a liquidity, interest rates and severe taxation single trap. My firm belief is that what happened at the end of the last century is not the consequence of some specific well-defined deregulation or mismanagement of financial institutions and markets, neither a structural collapse of some previous deteriorated model, or a cyclical evolving of market tendencies. On the contrary, what surfaced from September 1987 to August 2008 and after, has been as well unfolding up to now as an unavoidable effect of the single monetary secular debasement and unproductive and inefficient macroeconomic policies and the disregard of minor welfare and micro-economic frontiers and boundaries inconsistent in a fast enlarging competitive world. In 2016, the 1987-2008 global financial bubbles, from peripheral defaults or market plunges, has become the “final euro crisis." As well, the 19 countries of the EMS, issuing the single euro currency, apart from symptoms of economic stagnation and useless recurring monetary policies, acknowledged internal and external huge rigid trade unbalances. Some countries have been sliding into deficits for years, while the governing powers of the Eurozone have intervened from emergency to emergency, most deeply in Greece. In the Euro contest, Nobel Prize-winning economist Joseph E. Stiglitz (Stiglitz, 2016) has been dismantling the first hour prevailing consensus around, which affected Europe, demolishing the stronghold of austerity, and has been offering a series of discussible plans that could rescue the continent and the related parties from further depression.

AbstractFinancial deregulation after financial repression during 1980s and 1990s has stimulated a fierce competition among banks across the world. In pace with this, banking industry of Bangladesh is also experiencing an intense competition, since it is composed of a large number of banks. Considering this upsurge, our study aims to explore the impact of competition and efficiency on financial stability of Bangladeshi banks over 2009–2017. For exploring this nexus, we calculate Boone indicator and Z-score, construct banking efficiency index by principal component analysis, using bank-level data to measure competition, stability and efficiency, respectively, and analyze the impact of efficiency on financial stability at different levels of competition. We address the endogeneity of the estimation by employing two-step system GMM and different robustness checks. The findings of our study suggest a nonlinear competition–stability relationship, and though efficiency contributes to stability, the impact is moderated in the presence of competition. Our findings are robust to alternative measures of competition, stability and control variables, which could be useful for policy makers to formulate strategies and policies to maintain financial stability.