Political Economy of International Finance

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Political Economy of International Climate Finance: Navigating Decisions in PPCR and SREP

Political Economy of International Climate Finance: Navigating Decisions in PPCR and SREP

The decision to invest in grid-based geothermal and wind energy projects in Ethiopia was driven by a strong consensus narrative that diversifying energy technologies would be transformative move that would drive economic growth. This was supported by a clear policy incentive to scale up grid based energy for growth under the country’s growth and Transformation Plan. Available co-finance from other sources as well as co-financing as a measure of good performance (within the SREP results framework) provided an economic incentive for investing in large-scale projects. Policymakers also had evidence that climate variability is already affecting existing energy supply. Actors with alternative views argued for providing much-needed energy in rural areas — but these ideas failed to influence and translate into investments. In Nepal, narratives around SREP’s pathway to transformational change were more diverse and diffused, and priorities were very different from Ethiopia’s. In the SREP investment plan these diffused narratives translated into a mix and match of off-grid and grid-tied technologies in hydropower, solar and waste- to-energy. There has recently been substantial changes to the implementation plan, with the small hydro (grid- tied) component now planned to be replaced with grid-tied solar. In the absence of strong networks, unresolved disagreements between actors has delayed implementation in Nepal. However, the National Rural Renewable Energy Plan provides a strong policy incentive in steering the country towards investing in proven technologies that enhance energy access in rural areas, i.e. harnessing and expanding Nepal’s existing national arrangements, which heavily focus on hydropower and biogas. There is little clarity about why this shift happened at the last minute 5 .
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IMPACT OF WORLD BANK, INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL FINANCE CORPORATION ON THE NIGERIAN ECONOMY (1990-2010)

IMPACT OF WORLD BANK, INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL FINANCE CORPORATION ON THE NIGERIAN ECONOMY (1990-2010)

The result above indicates that the model explained about 97% systematic variation in the dependent variable RGDP. After adjusting for the degree of freedom, the adjusted R-squared Bar coefficient of determination accounted for 97%; leaving 3% unaccounted for due to the presence of stochastic error terms. Using the individual coefficient, it can be observed that a unit change in World Bank loan brings about (-3.68) unit decrease in the Nigerian economy and is statistically insignificant at 95% level. A suggestion that the loans from World Bank to Nigeria over the years have not improved the economy. This may be due to the poor political leadership and the ascendancy of corruption as well as constant embezzlement, which over the years have increased capital flights. A unit change in International Development Association Grants (IDAG) was observed to improve the Nigerian economy under the period considered with (9.57); though is statistically insignificant at 95% level. Similarly, a unit change in exchange rate leads to a (-219) unit decrease in the Nigerian economy. This indicates that the exchange rate has not really aided the impact of these assistants from the international bodies on the Nigerian economy. The Durbin-Watson statistic value of 2.19 points out the presence of serial autocorrelation in the result is unlikely, thus making it useful for policy perspective.
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The Political Economy of Restructuring and Subsidisation: An International Perspective

The Political Economy of Restructuring and Subsidisation: An International Perspective

More specifically, we consider a home country, i.e. a transition economy, that consists of n small and medium-sized enterprises (SMEs), which represent the new sector, and 1 state- owned enterprise (SOE), which represents the old industry. The latter is a normalisation, since one can think of different firms in the old industry as business units of the larger state- owned company. The SMEs produce a horizontally differentiated good for the local home market and each firm makes a positive profit F n > 0, because free entry in the SME sector has not yet driven all positive profits to zero — a plausible scenario in an emerging market economy or for a growing industry. Note also that sector profits F are completely exogenous to the model. Our SOE, on the other hand, produces for and exports to a foreign market (e.g. the EU). 12 ,13 Hence, the old and new sectors of the home country do not compete with one another either domestically or abroad. Other topologies can be envisaged (e.g. the new and old sectors compete), but the focus in this paper is on competition between the declining sector and the foreign firm, where the locally producing sector — in the case of subsidisation — is taxed to cross-finance subsidies to the ailing industry.
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Bifurcated banking: the political economy of inclusive finance in Pakistan

Bifurcated banking: the political economy of inclusive finance in Pakistan

Because the recent popularity of a financial inclusion agenda has coincided with two key shifts in the global financial landscape, inclusive finance has come to be not only very much like shadow banking, but also an extension of the same shadow banking industry associated with the volatility and fragility of the global financial crises of 2007- 9. One of these shifts is the commercialisation of inclusive finance, which has resulted in the dependence of the microfinance industry on wholesale sources of funds. These are often provided by international institutions attracted by high rates of returns and the profitability of microfinance banks and also relate to earlier concerns expressed by scholars about the financialisation of development (Mawdsley, 2018; A. Roy, 2010). More recent concerns about the role of global finance in development relate to initiatives such as From Billions to Trillions and Maximizing Finance for Development (Financial Times, 2018a). Initiatives such as these have amplified concerns that shadow banking is not only occurring, but is also poised to expand in the Global South. 54 This is a departure from earlier thought about shadow banking which was engrossed in the context of the 2007-9 financial crises. For instance, Gabor (2018) comments that in the past, the closest the Financial Stability Board came to considering countries that were not advanced capitalist economies was when it included South Korea in its first monitoring exercise. Even then, unease about shadow banking in emerging economies only became prominent when FSB head, Mark Carney issued warnings about systemic risk and financial instability.
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Gendering international political economy

Gendering international political economy

regulatory systems and institutions,. These are together referred to as ‘global governance’. Countries and populations are increasingly (but unevenly) feeling the ‘unmediated effects’. The result is a global economy with a fragmented political system with states becoming more concerned to attract foreign investment and provide a compliant labour force than to sustain their own citizens. This has been described as the competition state replacing the welfare or development state (Strange (1995: 55-74). States are losing their mediating role. Others, like Cox have argued that what we are witnessing is not the demise of the nation-state but its ‘internationalisation’; not its destruction but its transformation. In brief, Cox argues that from being bulwarks against the global intrusions into national economies, today’s states are becoming mediators, adapters and negotiators within the global political economy. To perform this changed role they have to reconfigure the power structures of government, giving, for example, far more emphasis to the role of finance and trade in economic regulation than to industry and labour. The state’s role, therefore, becomes one of helping to adjust the domestic economy to the requirements of the world economy rather than mediating its consequences (1996). The impact of this repositioning on individual lives and on social relations is critical.
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The Political Economy of the State-Finance Nexus: Public Debt, Crisis and Bank Business Models

The Political Economy of the State-Finance Nexus: Public Debt, Crisis and Bank Business Models

In the ten years since the outbreak of the global financial crisis, social sciences have increas- ingly dealt with its causes, characteristics and consequences as central research themes (Louns- bury & Hirsch 2010; Wolfson & Epstein 2013; Mayntz 2017). Several studies from political economy and economic sociology focus on the tectonic shifts in the national financial sectors of all advanced capitalist economies in the pre-crisis decades that were made possible by de- regulatory reforms and ultimately led to these crisis developments (Davis 2009; Hardie & Howarth 2013). Certain bank business models – mainly characterized as market-based or in- vestment banking implying extraordinary deliberate exposure to risk – have been identified as particularly vulnerable, creating instability throughout the banking sectors (Hardie & Howarth 2009; Mayntz 2017). The question of what has caused the emergence of specific bank strategies and business models is examined primarily for the US and UK (Fligstein & Goldstein 2012; Bell & Hindmoor 2015), while the literature largely misses out systematic historical analyses for specific banking groups and markets in other European countries. For Germany, which was also severely affected by a banking crisis in 2008, the focus of the few existing studies is largely reduced to the analysis of the famous three pillar banking groups (commercial, public sector and cooperative banks) that have been increasingly engaged in international investment bank- ing activities since the 1980s (Seikel 2013; Trampusch, Linden & Schwan 2014; Detzer et al. 2017). However, some of the most intriguing cases of the German banking crisis lead us outside the three pillar universal banking groups (Laeven & Valencia 2010). Next to the Landesbanken and the big commercial banks, it was private mortgage banks that specialized in public sector lending, which ran, shortly before or in the course of the crisis, systematically into problems. The demise of Hypo Real Estate (HRE), with its spectacular rescue and nationalization, is only the most prominent crisis case from this specialist banking group (Sanio 2008; Expertenrat 2011). Thus, this explaining-outcome process-tracing study aims to explain why several Ger- man mortgage banks ended up in a highly risky business model that was prone to crisis.
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International Political Economy

International Political Economy

work, which carefully unearths the role of moral tropes and technical instruments in constituting finance as a productive and rational aspect of economy. Beneath all this historical detail is a more fundamental invitation to view ‘the economy’ itself as a product of discursive (which is to say ‘social’) practices. De Goede’s is thus a radical post-structuralism in which political economies must first be made before they can make things like goods, services, or profits. This is by now an established move within the IPS canon (for example see Reid 2007). It is also, however, a move that bears some resemblance to Richard Ashley’s (1983) earlier critique of economism, which cast the instrumental logic of economy as an incursion into the lifeworld of society. We raise this here because it is precisely such an opposition between economy and society that David Blaney and Naeem Inayatullah (2010) have sought to challenge in their recent work. For these authors, Ashley and other critics of economy miss the irreducibly social aspect of economism itself, which is what enables economies to produce subjects that think and act instrumentally. They thus reject the critique of economism, but only in order to recognize political economy as a both contested and polarizing social project.
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International political economy, Part II: key factors and controversies

International political economy, Part II: key factors and controversies

The hitherto obscure ‘Group of 20 Finance Ministers and Central Bank Governors’ suddenly emerged as a key actor in IPE amidst the backdrop of the ‘Credit Crunch’ global recession in 2008-9. This G20 was not the same as the G20 WTO caucus group of the most powerful developing states, referred to earlier. It includes the following 19 states: US, Japan, UK, Germany, France, Canada, Italy, Spain, Russia, Australia, China, Brazil, India, South Africa, Mexico, Argentina, South Korea, Turkey, Indonesia and its 20th member is the EU. G20 was set up by G7 in 1999 in response to the Asian financial crisis in order to coordinate monetary planning with key economies affected by the downturn (which spread to Latin America). Once the global economy began slumping in 2008, however, low key annual meetings of finance minsters and the heads of the Central Banks became high profile twice yearly summits inclusive of heads of government.
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Information and quality in international trade and the political economy of trade protection

Information and quality in international trade and the political economy of trade protection

Second, the chapter endogenously determines national minimum quality standards through the strategic interaction between policy-makers. To the best of my knowledge, this is the first analysis th a t endogenises national de­ cisions to regulate quality in an international context. The industrial organ­ isation literature has widely analysed the effects of minimum standards in a single country, but has done so by introducing minimum standards as exoge­ nous constraints. Only recently has the issue of endogenous determination of quality standards begun to be addressed. Ecchia and Lambertini (1997) endogenously determine the minimum quality standard in the context of one country where a social planner sets the standard to maximise national welfare. This chapter extends to two policy-makers, each of which unilaterally selects their national minimum quality standard to maximise national welfare. The individually optimal standard are shown to be jointly suboptimal as a result of the cross-country externalities.
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International political economy, the globalisation debate and the analysis of globalisation discourse

International political economy, the globalisation debate and the analysis of globalisation discourse

The redrawing of the relationship between state, citizen, economy and polity they refer to here is the apparent relocation of the state into the economic realm. The state, in a material sense, has always been an economic actor or institution; now, however, it is exclusively economic, subject to economic logic rather than capable of reflexively shaping the economic realm from a partially independent vantage point, and able to relate to its citizens in only economistic terms. The development of ‘global governance’ mechanisms such as the WTO is accounted for in a similar fashion. The WTO, among other international institutions, is not divorceable from the economy, and more specifically the global, offshore, state-less economy. As such ‘the purpose of the WTO as a whole is less to regulate trade per se than to regulate the behaviour of states engaging in trade’ (Cameron & Palan 2004: 124, emphasis original). It is merely an institutional representation of the immutable, global economic space. This point goes beyond simply arguing that the WTO is hostage to corporate interests. Cameron and Palan are fully aware that although the globalisation narrative has ‘very quickly taken a concrete form in institutional structures outside the state’, the state itself is implicated in these structures. It is therefore ‘seen to survive’, even to have been ‘rejuvenated’. Nevertheless it is left ‘profoundly altered’ (2004: 124-5). This argument about the WTO is extremely interesting, given that the current round of liberalisation has subsequently stalled, albeit with little or no effect on the UK government’s trade policy agenda – perhaps suggesting the disposability of the WTO to the globalisation narrative.
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International political economy (IPE) and the demand for political philosophy in an era of globalisation

International political economy (IPE) and the demand for political philosophy in an era of globalisation

First, empirical theorizing allows us to look at both persistence and change in values and practices over time. It is especially an invaluable approach to adopt when working at the interface of international and comparative political economy. Narrative approaches concentrate on processes and anchor research in historical perspective. The language changes but very often the issues, questions and agendas remain directly similar in substance. Second, an inductive experiential narrative approach, in contrast to a deductive approach, finds it easier to identify path dependence and sequencing. Third, a narrative approach/ empirical theory in IPE has assisted institutionalism and history to reassert themselves in the closing stages of the 20 th century after a period in which both were marginalised in favour of social ‘science’, narrowly defined as validity and falsifiability, during the late 1950s through early 1970s (see Apter, 2002: 256). Without history international relations (and IPE) cannot identify the kinds of patterns of which they are so fond. Narrative (and also inter-textual) methodologies allow us to address broader issues of language and meaning and an ability to bring these to bear in empirical contexts.
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Hotels and tourists in an international political economy perspective: The case of Thailand

Hotels and tourists in an international political economy perspective: The case of Thailand

American Airways (Pan Am), then the dominant US international airline, was the main civilian contractor to the Air Force for the transport of personnel and supplies to Germany and across the Pacific. The Pacific Airlift ended, however, in 1953 and hence a valuable source of revenue was lost (PAA, 1952; 1953). This was followed by an independent change in government policy that limited Pan Am's income even more, through the removal of the mail subsidy. The airline had been receiving lucrative mail contracts from its earliest days, as Bender and Altschul {op. cit. :91) noted. ’’Pan American Airways, the nation's first, and for a long while only, airline in foreign service, was built in Washington D.C... [where]... mail routes were created in the office of the Post-master General... [and]... in the cloakrooms of Congress’’. Hence, from "... Caribbean mail carrier to circumnavigator of the globe, Pan American's growth was nourished by subsidy concealed in the revenues collected from the US Post Office. As late as 1950, almost one-fourth of the company's total operating revenues represented mail payments." {ibid. :476). When, in 1954, the airline was eventually forced to detail the accounts of its mail payments, the subsidy alone was over US$20 million, in a year when gross operating profit was US$17 million. In addition to the subsidy, the airline also receive a mail service payment of almost US$13 million, bringing the total revenue from mail contracts to nearly 20 per cent of operating revenues (PAA, 1954; 1962). However, the subsidy was sharply reduced in the following year and, in 1957, was cancelled completely (PAA, 1957).
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Margaret Benston's "Political Economy of Women's Liberation": International Impact

Margaret Benston's "Political Economy of Women's Liberation": International Impact

Marguret Benston's "Political Economy of Women's Liberation" International Impact by Angela Miles L 'article a The Political Economy of Women ' S Liberation w publit en 1969 et duns ZequelMaggie Benst[.]

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Three essays in imperfect competition, political economy
and international trade

Three essays in imperfect competition, political economy and international trade

Given the equilibrium of product market competition and cooperative advertising is the equilibrium type of investment, in the first stage of the game the government of country i chooses [r]

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Global coal trade: An international political economy approach

Global coal trade: An international political economy approach

corporations (MacCharles 1987) . This intra-firm trade has lead to the recognition of new determinants of trade like the corporate promotion of brand names, marketing of differentiated products to maintain marketshares and the creation of barriers to restrict the entry of new producers. The role of large international producers is recognised as an important feature of international trade. The accurate measure of the amount of intra-industry trade which is conducted internally within transnational corporations is difficult because of limited reporting by firms. Despite the limitations of data, intra-firm trade in the 1970s was estimated to account for 70% of USA exports and 75% of UK exports (Strange 1988:173; Meyer 1978). Other studies suggested that 25% of global trade in manufactured goods was among international branches of integrated companies (Watts 1987). Transnational corporations are thus major actors in inter-industry trade where resources, goods and services are exchanged across national borders, yet within the same company (Taylor and Thrift 1982). Under these circumstances, trade becomes a function of transfers within vertically integrated companies and only follows the pattern of integrated specialisation predicted by neo-classical economics to the extent that the companies' assets follow the same pattern.
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The political economy of finance and production: For countries of Tunisia, Morocco and Mauritania

The political economy of finance and production: For countries of Tunisia, Morocco and Mauritania

La nécessité que ces pays développent leurs secteurs financiers se justifie par l’état de «finance rudimentaire» 18 . Klein et Olivei 19 (1999), avaient abouti aux mêmes résultats que plusieurs autres chercheurs, mettant en évidence un lien positif entre libéralisation financière et développement financier. La libéralisation financière aurait un impact positif sur la croissance, et ce principalement pour les pays de l’OCDE. Cette affirmation n’a pas été confirmée pour les pays d’Amérique Latine. Par ailleurs, G. Bekaert, C. R. Harvey et C. Lundblad (2004) ont contredit empiriquement les idées de ceux qui
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The Political Economy of International Debt and Third World Development

The Political Economy of International Debt and Third World Development

Once the Third World country's external debt had increased at rates from 20-30 percent over a period of ten years, and the levels of external debt had begun to approach 40-50 percent or [r]

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The political economy of international regulatory convergence in public utilities

The political economy of international regulatory convergence in public utilities

The second political economy feature that we add to our study is the importance of ‘institutional fit’. As argued by North (1990) and proponents of the New Institutional Economics (NIE), policies developed successfully in certain countries might be failures in other countries because those policies don’t fit with other countries’ underlying institutional conditions. A country’s institutional conditions and specific arrangements determine key aspects of how individuals behave with respect to each other (degree of opportunism and self-interest, for example), and therefore significantly affect transaction costs and the expected outcomes of regulatory policies (Levy and Spiller, 1994). As argued by Mukand and Rodrik (2005), if a country imitates a policy that has been successfully implemented in a very institutionally distant country, this same practice is unlikely to improve the local situations. Regulatory imitation and convergence might not improve welfare, which should be taken into account in the regulatory authority’s decision. In our model, the regulatory authority will thus be influenced not only by the lobbying of incumbents and by new entrants but also by social welfare, i.e., through the reluctance to select a policy that is far from the country’s underlying institutional conditions.
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The+Implications+of+Global+Financial+Crises+on+International+Political+Economy

The+Implications+of+Global+Financial+Crises+on+International+Political+Economy

全球金融危機對國際政治的啟示 The Implications of Global Financial Crises on International Political Economy 楊惟任 William Yang 醒吾科技大學國際商務系教授 Professor of Department of International Business Hsing Wu Un[r]

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Essays in political economy: elections, public finance and service delivery in South Africa

Essays in political economy: elections, public finance and service delivery in South Africa

community. In the introduction to this thesis, I argued that the availability of high quality data speaks in favour of using South Africa as a testing ground. Here I would like to add to this point that availability does not necessarily imply user friendliness. The budget information obtained for chapter 2, for example, is readily available from the South African Treasury’s website, but only in portable document format such that budget information cannot be directly converted into tables. Instead, putting together a dataset from the available information required time intensive data entry. The result is a new longitudinal data set, consisting of annual observations of all nine provinces for the period 1995 to 2010. Researchers can build on this by adding additional years of budget information in the coming years. This year’s twentieth anniversary of South Africa’s first democratic election presents a particularly exciting opportunity to extend existing datasets with a fifth election and further develop our understanding of South Africa’s political economy. Fortunately, this will be a much easier task as the South African Treasury now makes budgetary and financial information available in number format.
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