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Brown: Lessons from the Efforts to Manage the Shift Away from Defined Benefit Plans to Defined Contribution Plans in Australia, the United Kingdom, and the United States

pension

ABSTRACT: This Article examines what lessons may be learned from examining how Australia, the United Kingdom, and the United States have tried to manage the shift away from defined benefit plans towards defined contribution plans.  This shift has fundamentally changed the relationship between workers and

Garcia-Cicco & Kawamura: Central Bank Liquidity Managemen tand “Unconventional” Monetary Policies

Currency-Revaluation

ABSTRACT: This paper presents a small open economy model to analyze the role of central bank liquidity management in implementing “unconventional” monetary policies within an inflation targeting framework. In particular, the paper explicitly models the facilities that the central bank uses to manage liquidity in

Walborn: The Americas in the Balance – National Security Implications of Chinese Influence in Latin American

1500px-Flag_of_the_People's_Republic_of_China.svg

ABSTRACT: The United States has recently announced a “pivot” or “rebalance” of its foreign policy away from the Middle East and towards Asia. The focus on Asia is in large part due to the rise of China during the last decade. However, it is no

Sahu & Gahlot: Perception about Corruption in Public Servicies – A Case of Brics Countries

Corruption

ABSTRACT: Purpose: As is increasingly recognized in academic literature and by international organizations, corruption act as major deterrent to growth and development. The aim of this paper is study the perception of general public about the corruption in BRICS countries (Brazil, Russia, India, China and

Lawrence: Definancialisation – A democratic reformation of finance

shadow-banking

From the Summary: An effective financial sector is vital to the UK’s future prosperity. Yet too often finance is divorced from the real economy, prone to generating macroeconomic instability and remote from the concerns of society. Moreover, the design of the financial sector has not

Brown: Lessons from the Efforts to Manage the Shift Away from Defined Benefit Plans to Defined Contribution Plans in Australia, the United Kingdom, and the United States

pension

ABSTRACT:

This Article examines what lessons may be learned from examining how Australia, the United Kingdom, and the United States have tried to manage the shift away from defined benefit plans towards defined contribution plans.  This shift has fundamentally changed the relationship between workers and the financial industry.  While defined contribution plans provide employees with some advantages over defined benefit plans (e.g., portability, early vesting, greater autonomy), they also force employees to manage certain risks (longevity risk, investment risk) that they are ill prepared to manage.  In addition, the differences in the way funds in defined contribution plans and defined benefit plans are managed affects the distribution of funds within financial markets that is potentially damaging to the economy.  For example, these differences can lead to decreases in efficient allocation of investments and the creation of asset bubbles. These factors played a role in the recent financial crisis and, if left unaddressed, may contribute to future financial crises.

 

Available for download here.

Garcia-Cicco & Kawamura: Central Bank Liquidity Managemen tand “Unconventional” Monetary Policies

Currency-Revaluation

ABSTRACT:

This paper presents a small open economy model to analyze the role of central bank liquidity management in implementing “unconventional” monetary policies within an inflation targeting framework. In particular, the paper explicitly models the facilities that the central bank uses to manage liquidity in the economy, which creates a role for the central bank balance sheet in equilibrium. This permits the analysis of two “unconventional” policies: sterilized exchange-rate interventions and expanding the list of eligible collaterals accepted at the liquidity facilities operated by the central bank. These policies have been recently implemented by several central banks: the former as a way to counteract persistent appreciations in the domestic currency, and the latter as a response to the recent global financial crisis in 2008. As a case study, the paper provides a detailed account of the Chilean experience with these alternative tools, as well as a quantitative evaluation of the effects of some of these policies.

Available for download here.

Walborn: The Americas in the Balance – National Security Implications of Chinese Influence in Latin American

1500px-Flag_of_the_People's_Republic_of_China.svg

ABSTRACT:

The United States has recently announced a “pivot” or “rebalance” of its foreign policy away from the Middle East and towards Asia. The focus on Asia is in large part due to the rise of China during the last decade. However, it is no secret that the impact of China’s rise is not limited to the Asian region. Moreover, China’s rise is due in large part to its aggressive economic engagement with other regions, notably Africa and Latin America.

Given Latin America’s proximity to the United States and each nation’s shared responsibility for regional stability, the United States must not overlook the effects of China’s rise in the Western Hemisphere. Indeed some countries such as Chile and Brazil continue to thrive with the opportunities brought on by increased Chinese engagement. However, other countries such as Venezuela and Argentina struggle with turning Chinese engagement into national benefit.

This paper will identify some of the causes of these struggles and how they affect the stability of the Western Hemisphere and ultimately the national security of the United States. Additionally, this paper will identify some future areas of concern as well as methods by which the United States can best engage Latin American nations. The author aims to demonstrate why the United States must further develop its relationship with its Latin American neighbors in order to address national security implications resulting from China’s expanding influence in the Western Hemisphere.

 

Available for download here.

Sahu & Gahlot: Perception about Corruption in Public Servicies – A Case of Brics Countries

Corruption

ABSTRACT:

Purpose: As is increasingly recognized in academic literature and by international organizations, corruption act as major deterrent to growth and development. The aim of this paper is study the perception of general public about the corruption in BRICS countries (Brazil, Russia, India, China and South Africa). Research Methodology: This research is based on primary data i.e. questionnaire. The questionnaire were distributed in capital of each country i.e. Brasília in Brazil, Moscow in Russia, Delhi in India, Beijing in china and Pretoria in South Africa. The questionnaire was mailed and uploaded on Facebook. The questionnaire was distributed to 150 people of each country. The data is analyzed with the help of graph and tables. Findings: It was found that state authorities initiate corruption. The main causes behind corruption are Public tolerance towards corruption, Absence of political will, Dominance of personal interest over state interest, Ineffective administration, Inefficient control and punishment mechanisms and Lack of independence of the judiciary system. It was observed that Police is the most corrupt service in BRICS countries. Majority of people from Russia, China and South Africa believe that their Government is effective in fighting with corruption while people of Brazil and India don’t have faith in their Government regarding fighting with corruption. Media was found to be most trusted institution in fighting with corruption. The Judiciary should formulate strict law regarding corruption. Originality/value: This research will help Government to get idea about the thinking of general public about corruption in their country.

 

Available for download here.

Lawrence: Definancialisation – A democratic reformation of finance

shadow-banking

From the Summary:

An effective financial sector is vital to the UK’s future prosperity. Yet too often finance is divorced from the real economy, prone to generating macroeconomic instability and remote from the concerns of society. Moreover, the design of the financial sector has not only led to the misallocation of capital. ‘Finance capitalism run amok’, in the words of Thomas Piketty, also distributes power in a way that entrenches unjustifiable inequalities of influence and reward. These inequalities threaten the strength of our economy and the vitality of our democracy.

The process driving these shifts – financialisation – is arguably the most important structural change in British capitalism in the last 30 years. Financialisation is defined for our purposes as the ‘increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies’ (Epstein 2005). The rise in the scale, scope and profitability of financial activity relative to the size of the UK’s economy in this period is well known. For example, the balance sheet of the UK banking sector grew from 40 per cent of GDP in 1960 to 450 per cent in 2010 (Davies et al 2010), with predictions it will reach as high as 900 per cent by 2050 (Wolf 2013a); the proportion of pre-tax profits of financial corporations as a percentage of total UK pre-tax profit rose from 7 per cent to nearly 35 per cent from the mid-1980s to 2007/08 (Lapavitsas 2013); while the total amount of financial assets and liabilities of the UK rose from four to five times yearly national income to 20 times by 2010 (Piketty 2014). The consequences of financialisation more broadly, both positive and negative, are also well understood.

The purpose of this report is therefore not to add greatly to this literature. Instead it is to set out a number of principles for ‘definancialisation’, for rolling back the socially useless aspects of contemporary finance and advancing in their place the many creative and productive forms of finance the UK undoubtedly possesses and could nurture better. In particular, our goal is to establish policies that reassert democratic influence over the banking and ‘shadow banking’ systems, especially over the production and allocation of credit, which gives financial capitalism its power. By doing so, we want to reanchor finance in the real economy, as a productive servant of society, not a promiscuous master.

 

Available for download here.

 

Ryan: The Global Pension Cliff – Myths, Realities, and Courses of Action

pension

ABSTRACT:

In the late 1990s, pension plans did not use their big surpluses to immunize their liabilities. They believed that weighting equity investments and achieving a return-on-assets objective would ensure a fully funded plan. Pensions are now running critical deficits. Solving the pension crisis requires realistic accounting rules, a redefinition of traditional asset allocation and risk practices, and a focus on the custom liability index.

 

Available for download here.

Matijascic: Public Pension Re-Reforms in the American Hemisphere – A Preliminary Comparative Perspective

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ABSTRACT:

Paradigmatic reforms did not achieve their goals. Parametric reforms were concerned about improving pension systems but their limit, usually, is that those reforms do not deal with low densities of contribution. The pragmatic solutions were built on the tax-financed universal approach, since they reduced deprivation in family’s income. They have major potential since it deals successfully with persistent informality, labor market precariousness and social heterogeneity by reducing poverty based on fiscal transfers. Targeted cash transfers present encouraging performance, but universal programs seems to be even more effective.

 

Available for download here.

Carney: Promoting Ethics when Partnering with the Private Sector for Development

private

From the Executive Summary:

Development cooperation actors across the globe are increasingly engaging in opportunities with the private sector to achieve development objectives such as reducing poverty, advancing human rights and democracy, promoting health and protecting the environment. In working toward these objectives, actors have certain expectations from their constituents to act in an ethical manner, and have obligations as stewards to their constituents to select and manage partners in a way that promotes widely accepted ethics principles. While many development cooperation actors recognize the role of ethics in guiding their behaviour and actions, a number of questions remain regarding the role of ethics in partnerships with the private sector: What ethics principles have been applied to private sector partnerships? How do development cooperation actors around the world act to promote ethics principles?

Development cooperation actors included in this analysis are those that utilize public resources to achieve development outcomes, and engage as mutual partners with the private sector. The analysis is based on a qualitative review of Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) members’ and United Nations (UN) organizations’ published policies and strategy papers and presents which ethics principles development cooperation actors use. The report examines the terms and nature of these principles, and how actors take action to promote ethical partnerships with the private sector for development.

The study revealed six key ethics principles applied to partnerships with the private sector. Development cooperation actors take responsibility for the consequences of their own actions in order to maintain integrity, credibility and accountability. They also focus on fairness by not giving special treatment to special interests; they seek to remain impartial and independent. Development cooperation actors strive to be honest and ensure transparency in their partnerships while avoiding conflicts of interest. Some development cooperation actors make reference to supporting social justice by aiming to ensure the activities they support benefit the poor over the rich. Gender equality, environmental sustainability and human rights also tend to be cross-cutting themes that apply to partnerships with the private sector. Finally, development cooperation actors promote democracy through the application of principles for equitable participation.

 

Available for download here.

Wang & Wang: Benefits of Foreign Ownership – Evidence from Foreign Direct Investment in China

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ABSTRACT:

To examine the effect of foreign direct investment, this paper compares the post-acquisition performance changes of foreign- and domestic-acquired firms in China. Unlike previous studies, we investigate the purified effect of foreign ownership by using domestic-acquired firms as the control group. After controlling for the acquisition effect, we find no evidence in the data that foreign ownership can bring productivity gains to target rms. In contrast, a strong and robust finding is that foreign ownership significantly improves target firms’ financial conditions and exports relative to domestic-acquired rms. Foreign acquisition is also found to improve output, employment and income for target rms. These findings highlight the financial channel through which FDI benefits income and economic growth of host countries.

Available for download here.

James: U.S. State Fiscal Policy and Natural Resources

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ABSTRACT:

An analytical framework predicts that, in response to an exogenous increase in resource-based government revenue, a benevolent government will partially substitute away from taxing income, increase spending and save. Fifty-one years of U.S.-state level data are largely consistent with this theory. A baseline fixed effects model predicts that a $1.00 increase in resource revenue results in a $0.25 decrease in non-resource revenue, a $0.43 increase in spending and a $0.32 increase in savings. Instrumenting for resource revenue reveals that a positive revenue shock is largely saved and the rest is transferred back to residents in the form of lower non-resource tax rates.

Available for download here.

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