Articles
An empirical test of a new theory of economic reforum using Indonesia as a case study 1988 to 2005
Abstract
Debate regarding key factors determining the success or failure of policies of liberalization and privatization, illustrates the need for a concise theoretical foundation to guide decision makers as to how, when, and where to apply policies that change underlying economic structures. Theories of economic growth have failed to identify key factors underlying economic growth, as well as develop adequate yardsticks of development. Moreover often economic growth is taken as a measure of success without considering the underlying social development and distribution of wealth. A new theory is expounded herein and tested using Indonesian time series data. The results of the empirical tests of this theory reported herein add another dimension to the debate on emerging markets. One factor appears vital to the success of such policies. This is the education level of females. It is the only factor that appears consistently correlated with successful achievement of reform packages, measured by two new criterion of economic and social development.
The actual and potential use of unregulated financial instituitons for transnational crime
Abstract
The problems of hedge funds, mortgage brokers, and finance companies have several common themes. First a lack of prudential supervision; second, an ability to abort anti money-laundering legislation using cross-border transactions; third, a common escape clause of “natural market forces” being used by regulators; and fourth, benefits accruing to the originators. In view of the potential of these types of non-bank financial institutions (NBFI’s) to generate systemic crisis by avoiding the new Operating Risk requirements of Basel II, the effectiveness of the new capital adequacy regime is now highly questionable. Unregulated NBFIs by offering a regulatory black hole, appear to have become the home of the new transnational criminal.
The Banking Crisis of the New Millenium – why it was inevitable.
Abstract
Under the new theory of financial regulation developed by this author, collapse in the US financial system was inevitable. Removal of protective measures accompanied by failure to increase prudential measures, accompanied by conflicting State/Federal relations, barriers to entry to the real estate industry, together with regulatory confusion resulting in regulatory arbitrage, set the scene for not only erosion from within, but for transnational crime to destabilise the entire fabric of the world financial system. Understanding causes helps in rectify the financial architecture. This article after detailing the enormous numbers of regulatory models that can exist, outlines formulas to assess the type of regulatory model that should be imposed on a system, after assessing the stage of economic and social development.
Read more: The Banking Crisis of the New Millenium – why it was inevitable.
PUBLIC PRIVATE SECTOR PARTNERSHIPS, PUBLIC FINANCE INITIATIVES OR PRIVATISATIONS – HOW BEST TO DEVELOP INFRASTRUCTURE AND PROMOTE ECONOMIC REFORM
Debate about how best to promote economic reform through infrastructure development illustrates the need for a concise theoretical foundation as to how, when and where policies that change underlying economic structures can be applied. This paper outlines such a model, which is based on the perception of gradations in the process of development, and that the introduction of new ownership structures, market mechanisms and financing techniques are not necessarily solutions without providing for changes in economic, societal and legal infrastructures. Often privatisation is advocated as a solution to a deterioration in the industry – for instance in the supply of electricity. However this paper points out the preconditions for privatisation, and suggests that PPPs should be considered as a halfway house where those preconditions are not present.
Are unregulated financial institutions the new home of the transnational criminal?
Written by Carolyn Currie Monday, 15 September 2008 05:20
The most commonly taught theory at business schools is “to never worry about stock market crashes”. Why? The answers derive from multiple theories. One is “it is a random walk” – that is unpredictable but that “the market knows best” It will see through creative accounting. But when? In time, like Enron?
Is privatizing power a real turn-off?
Written by Carolyn Currie Monday, 15 September 2008 01:23
In Sandra Jobson’s On Line Opinion article on a history of electricity in Sydney ("Power for the People: A history of electricity in Sydney", August 25, 2004), Sandra paints a most fascinating picture of an industry with mixed leaps between private and public provision.