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1. Xi Demands Fealty Despite Domestic And Foreign Woes

Author:
Willy Wo-Lap Lam
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The Politburo held a “democratic life meeting (民主生活会)” on December 21–22, 2023, in which President Xi Jinping gave an internal, unpublished speech. According to accounts provided to the author by three officials at the rank of department head or above, Xi admitted that he had repeatedly postponed the Third Plenum of the 20th Central Committee (which according to Party norms should have taken place in October) because he “could not offer any viable solution for the nation’s problems.” Xi, who is general secretary of the Chinese Communist Party (CCP) and commander-in-chief, went on to blame the other 23 Politburo members and other senior cadres, not only for failing to give him good advice but also for demonstrating signs of disobedience. Reports of Xi’s frank admission of the dire straits of the Party’s leadership were widely circulated on social media. The official Xinhua read-out of the Politburo meeting also cited Xi as demanding “unison of thought” among top-tier officials. This entails adhering closely to the instructions of the “core leadership”—in other words, to Xi himself (Xinhua, December 25, 2023). The supreme leader raised the “two safeguards (两个维护),” a slogan that refers to “safeguarding the authority of comrade Xi Jinping as core of the party” and “safeguarding Xi Jinping Thought on socialism with Chinese characteristics for a new era.” President Xi also admonished his close advisors to “take a firm grip on the internal laws of developments [of issues]; accurately distinguish between events and trends, crises and opportunities, and benefits and harms … and effectively combat risks and take action on the basis of stability” (People’s Daily, December 23, 2023). This instruction tallies with caveats given by Xi throughout the past year, in which he has warned that China faces unprecedented challenges and that the party-state apparatus must ready itself to tackle “black swans and gray rhinos.”
Topic:
Financial Crisis, Leadership, Xi Jinping, Chinese Communist Party (CCP), and Banking
Political Geography:
China and Asia

2. China as an International Lender of Last Resort

Author:
Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper shows that China has launched a new global system for cross-border rescue lending to countries in debt distress. We build the first comprehensive dataset on China’s overseas bailouts between 2000 and 2021 and provide new insights into China’s growing role in the global financial system. A key finding is that the global swap line network put in place by the People’s Bank of China is increasingly used as a financial rescue mechanism, with more than USD 170 billion in liquidity support extended to crisis countries, including repeated rollovers of swaps coming due. The swaps bolster gross reserves and are mostly drawn by distressed countries with low liquidity ratios. In addition, we show that Chinese state-owned banks and enterprises have given out an additional USD 70 billion in rescue loans for balance of payments support. Taken together, China’s overseas bailouts correspond to more than 20 percent of total IMF lending over the past decade and bailout amounts are growing fast. However, China’s rescue loans differ from those of established international lenders of last resort in that they (i) are opaque, (ii) carry relatively high interest rates, and (iii) are almost exclusively targeted to debtors of China's Belt and Road Initiative. These findings have implications for the international financial and monetary architecture, which is becoming more multipolar, less institutionalized, and less transparent.
Topic:
Debt, Emerging Markets, International Trade and Finance, Financial Crisis, Belt and Road Initiative (BRI), and Sovereign Debt
Political Geography:
Africa, China, and Asia

3. COVID-19 and the Health of Banking Sector in Japan and South Korea: A Comparative Study

Author:
Munim Kumar Barai
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The economies of Japan and South Korea are dominated by banks. Both countries have created a complex financial structure, including a well-established banking industry at their heart that supports economic operations. However, both countries’ banking sectors have previously faced crises such as the Asian Financial Crisis (mostly in South Korea), the Japanese economic slowdown, and the financial crisis of 2007-08 (both). While the Bank of Japan (BOJ) approved the quantitative easing (QE) monetary policy and lowered interest rates to manage the crises, the Bank of Korea (BOK) pursued interest and financial restructuring as well as banking system digitization to overcome the crises. Covid-19 has disrupted the normal operation of banks, and the central banks and governments of both countries have implemented a variety of monetary and other measures to mitigate its economic and financial consequences. This study aims to identify and assess the health of domestic banks in Japan and South Korea for the Covid-19 ex-ante and interim periods. Several important variables, i.e., portfolios of assets and liabilities, asset productivity, stockholders' equity, profitability, and operating efficiency, have been included to evaluate the health of their banks. This compari-son of health metrics for 2010 to 2020 could help identify changes or shifts in the banking sector of Japan and Korea. The study has used ex-ploratory and descriptive methodologies to undertake qualitative and quantitative evaluations of important bank health indicators in the ex-ante and interim periods of Covid-19. It also used a hybrid method to produce research goals and arguments, including a framework based on what was already known in the field.
Topic:
Financial Crisis, Economy, COVID-19, and Banking
Political Geography:
Japan, Asia, and South Korea

4. The Long Search for Stability: Financial Cooperation to Address Global Risks in the East Asian Region

Author:
C. P. Chandrasekhar
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Forced by the 1997 Southeast Asian crisis to recognize the external vulnerabilities that openness to volatile capital flows result in and upset over the post-crisis policy responses imposed by the IMF, countries in the sub-region saw the need for a regional financial safety net that can pre-empt or mitigate future crises. At the outset, the aim of the initiative, then led by Japan, was to create a facility or design a mechanism that was independent of the United States and the IMF, since the former was less concerned with vulnerabilities in Asia than it was in Latin America and that the latter’s recommendations proved damaging for countries in the region. But US opposition and inherited geopolitical tensions in the region blocked Japan’s initial proposal to establish an Asian Monetary Fund, a kind of regional IMF. As an alternative, the ASEAN+3 grouping (ASEAN members plus China, Japan and South Korea) opted for more flexible arrangements, at the core of which was a network of multilateral and bilateral central bank swap agreements. While central bank swap agreements have played a role in crisis management, the effort to make them the central instruments of a cooperatively established regional safety net, the Chiang Mai Initiative, failed. During the crises of 2008 and 2020 countries covered by the Initiative chose not to rely on the facility, preferring to turn to multilateral institutions such as the ADB, World Bank and IMF or enter into bilateral agreements within and outside the region for assistance. The fundamental problem was that because of an effort to appease the US and the IMF and the use of the IMF as a foil against the dominance of a regional power like Japan, the regional arrangement was not a real alternative to traditional sources of balance of payments support. In particular, access to significant financial assistance under the arrangement required a country to be supported first by an IMF program and be subject to the IMF’s conditions and surveillance. The failure of the multilateral effort meant that a specifically Asian safety net independent of the US and the IMF had to be one constructed by a regional power involving support for a network of bilateral agreements. Japan was the first regional power to seek to build such a network through it post-1997 Miyazawa Initiative. But its own complex relationship with the US meant that its intervention could not be sustained, more so because of the crisis that engulfed Japan in 1990. But the prospect of regional independence in crisis resolution has revived with the rise of China as a regional and global power. This time both economics and China’s independence from the US seem to improve prospects of successful regional cooperation to address financial vulnerability. A history of tensions between China and its neighbours and the fear of Chinese dominance may yet lead to one more failure. But, as of now, the Belt and Road Initiative, China’s support for a large number of bilateral swap arrangements and its participation in the Regional Comprehensive Economic Partnership seem to suggest that Asian countries may finally come into their own.
Topic:
Regional Cooperation, Bilateral Relations, Financial Crisis, Central Bank, IMF, Liberalization, Financial Globalization, and Financial Integration
Political Geography:
China, Asia, and United States of America

5. China’s FDI in Europe and Europe’s Policy Response

Author:
Pyoung Seob Yang, Cheol-Won Lee, Suyeob Na, Taehyn Oh, Young Sun Kim, Hyung Jun Yoon, and Yoo-Duk Ga
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
China’s investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU’s policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU.
Topic:
Foreign Direct Investment, Financial Crisis, European Union, Economy, Economic Growth, Global Value Chains, and COVID-19
Political Geography:
China, Europe, Asia, Korea, and United States of America

6. Responding to the Coronavirus Crisis: Selected Ideas and Learnings for Asia’s Finance Management Leaders

Author:
David Hoffman
Publication Date:
01-2020
Content Type:
Special Report
Institution:
The Conference Board
Abstract:
Measures to contain the Novel Coronavirus (COVID-19) outbreak – including factory shutdowns, town-level lockdowns and quarantines, and transport bans affecting regional, national and international movement of goods and people – are resulting in a steep decline in household consumption. In parallel, ongoing disruptions of production, distribution, and retail have brought key industrial sectors to near standstill, set off ripple effects throughout regional supply chains, and created intense cash flow shortages from beginning to end of value chains. As of March 1, 2020, there has yet to emerge a definitive path to containment and remission of the crisis. Financial pressures on firms are increasing. The challenges wrought by the crisis for Finance managers are complex and cascading: cash flows are strained by stalled supply chains and channel operations, increasing uncertainty requires wider scenario forecasting, and access to capital has tightened. If virus containment and remission cannot be achieved in the short-term, financial markets are vulnerable to both private sector bankruptcies and household mortgage defaults. The specter of financial crisis looms large. The following assemblage of insights and learnings from our internal experts and member network will hopefully provide some helpful guideposts. The catalog below[1] essentially resolves down to three executive actions to address the challenges ahead:
Topic:
Financial Crisis, Business, Coronavirus, Industry, and COVID-19
Political Geography:
Asia

7. Global Financial Imbalance: Firm-level Evidence from Korea

Author:
Tae Soo Kang, Kyunghun Kim, and Yuri Kim
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the global financial crisis, low interest rates have continued throughout the world. However, financial imbalance has deepened as much of the expanded investment during low interest rates did not lead to increased productivity. This study focused on the increase of marginal firms as a result of the adverse effects of financial imbalances on firms. The marginal firms were identified based on the company's financial statement, and the share of marginal firms by country was compared and analyzed using Worldscope data. As a detailed analysis on the marginal firms, the impact of borrowing interest rate on the possibility of becoming a marginal company was analyzed in the case of Korea with KED data. According to the international comparison, East Asia including Korea, China and Japan has shown a lower share of marginal companies than Europe, South Asia and Latin America. Empirical results through Panel Logit with Sector Fixed Effect Model show that the borrowing rate has a negative correlation with the probability the company will become a marginal company in the case of Korea. However, the impact of an increase in borrowing rates on the likelihood of becoming a marginal company depends on the degree of financial vulnerability. Specifically, an increase in the borrowing rate has a greater impact on the possibility to become ICR<1 in the companies with higher financial vulnerability indexes.
Topic:
Financial Crisis, Business, and Business Management
Political Geography:
Asia and South Korea

8. Financial Inclusion Through Fintech in the Digital Economy

Author:
Eunsook Seo and Kyeongwon Yoo
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the 2008 global financial crisis, including the recent COVID 19 pandemic, low interest rates and low economic growth have continued around the world. In spite of this low interest rate trend, as the economic downturn prolongs, there is a situation of concern called the “new normal” of low interest rates and low economic growth, and low prices. In this new normal economic structure, the rapid progress of aging is increasing the necessity and desire for asset accumulation. In addition, digital finance such as Fin-tech with the evolution of the underlying technologies and the emergence of new technologies has replaced or improved many functions of existing finance in the advent of the 4th industrial revolution era. These changes are expected to bring benefits to the individual and corporate finance sectors, which have been subject to financial inclusion. On the other hand, digital finance, which is changing at such a rapid pace, may further isolate some individuals who were in the blind spot of finance, such as the elderly, and a support system for this is an issue that should be included in the policy of financial inclusion in each country. In this paper we find that Asian countries like other regions have achieved tangible results in financial inclusion while achieving financial deepening. When looking through various financial inclusion indicators such as holding accounts and loans, ATMs, and bank branches, the Asian region has achieved similar or superior performance to other regions. Compared to the income level, the growth of financial inclusion in Asia was found to be attributable to better performance in middle-income countries than in other similar regions. High-income countries in Asia are performing somewhat lower than similar peer groups in other regions, but this seems to be due to stagnation of growth. More seriously, financial inclusion in low-income countries in Asia is not appearing faster than in other income groups. In Asian countries there appears to be a wide variation in regional financial inclusion. However, Asian countries are expanding around the younger generation in the use of ICT technology that is helpful in spreading financial inclusion so if digital inclusive finance centered on Fintech is properly applied, Asian countries will become a new model for digital financial inclusion. However, since the gap in the use of Fintech in the region is large, how to fill this gap is being raised as an important policy task for each country as well as the whole region. We also tentatively examined the effects of financial inclusion and digital financial inclusion in the Asian region using the Asian country panel data collected from WDI and Global Findex data. Looking at the implications of the empirical analysis results even though it is very cautious to interpret the results of this analysis due to the lack of data of inclusive finance in Asia., first, the expansion of financial inclusion(such as ATM) in Asia seems to have some relationship with the reduction of poverty rates and income inequality which is measured with Gini coefficient. And the expansion of internet usage in Asia seems to have some relationship with the reduction of poverty rates and income inequality although we use it as the proxy variables instead of the digital financial inclusion variables. Lastly, the higher share of rural population which is used as a proxy for digital divide, which may occur due to the expansion of digital inclusive finance in Asia, has the potential to erode some of these achievements, but there is still a possibility that the expansion of inclusive finance will be effective. Despite the likelihood of success in digital inclusive finance in the future, digital divide spreads due to various gaps such as between urban and rural areas, between young and old, between low and high income, and between men and women, occurring in Asian countries and may worsen the performance of inclusive finance. Thus the governments in the region need to actively intervene to resolve these gaps. In addition, it is necessary to close the digital gaps that is occurring between countries through policy cooperation among APEC members. Considering the situation that the degree of development of Fintech in each member is expanding financial inclusion, it is necessary for Korean financial companies to set up an advancement strategy that focuses on the financially marginalized class based on the advanced system strategy of credit rating based on big data. Our analysis results will give some implications for the New Southern Policy. Personal and SME finance are very important business areas when financial companies currently enter the ASEAN region, and accurate analysis of each member' current status for Fintech or digital finance and financial inclusion should be given priority in terms of business expansion.
Topic:
Poverty, Financial Crisis, Finance, Income Inequality, COVID-19, Inclusion, and Digital Finance
Political Geography:
Asia and Global Focus

9. Indonesian Political Economy: A Historical Analysis

Author:
Tommaso Rossotti
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
Indonesia is one of the largest countries in the world in demographic, geographical and economic terms. Rich in natural resources, it is a member of the G20 and one of the fastest-growing economies in the world. From its independence in 1949, Indonesia lived dramatic changes in its political and economic system, moving from being an authoritarian state with a quasi-planned economy to being a (albeit flawed) democracy with a free market system. This paper is aimed to analyse briefly the most important phases of the post-colonial development path of the country, trying to highlight the events which mainly changed Indonesian economy and from this understand which are its sources of strength and weakness. The paper is therefore divided into three main parts. The first covers the most salient events that occurred in the country from its independence till mid-1990s, with a particular emphasis on Suharto’s “New Order” regime. The second part mainly focuses on the Asian Financial Crisis, explaining its causes and its political and economic effects on Indonesia. Finally, the last part deals with Indonesia in XXI century, focusing on the similarities and differences with the previous period and on the effects of the Global Financial Crisis on Indonesia.
Topic:
Emerging Markets, Political Economy, Natural Resources, and Financial Crisis
Political Geography:
Indonesia and Asia

10. Corporate Debt Market in Korea

Author:
Paul Moon Sub Choi
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This report conducts an analysis of the corporate bond market in Korea and the changes in interest rates and term structure since the 1997 Asian financial crisis. The potential risks and solutions for stabilizing the corporate debt market are discussed. Corporate bonds not only play an important role in financing long-term corporate investments but also have a positive and persistent influence on enhancing the capital markets. Thus, the authorities in Korea have attempted to increase the proportion of corporate bonds, which is a means of direct financing, rather than bank loans. Implementing specific plans to stabilize the corporate debt market that are mentioned in this report are critical to sustaining the Korean capital markets as a means towards continued economic growth and prosperity.
Topic:
Debt, Markets, Financial Crisis, Economy, and Investment
Political Geography:
Asia, South Korea, and Korea

11. The Financial Sector and Growth in Emerging Asian Economies

Author:
William R. Cline
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The financial sectors in Asian emerging-market economies are now relatively unlikely to provoke new financial crises, either because of reforms after the East Asian financial crisis in the later 1990s or because of the dominance of state-owned banks not subject to bank runs. Financial intermediation is surprisingly high and is consistent with higher rates of saving and investment and hence growth in the main economies of the region (as compared to, say, counterparts in Latin America). Nonetheless, there are sharply diverging patterns (e.g., high foreign ownership of banks in Korea versus minimal presence in China) and differing national structures (bank dominated, portfolio oriented, and diversified) within Asia. Cline recommends establishing long-term plans to improve efficiency in state-owned banks or reduce their dominance and pursuing bank capitalization targets at least as ambitious as those of Basel III. Cline also calls for ensuring adequate regulation of growing nonbank intermediaries, reversing a recent trend toward national barriers to foreign banks in some economies, and improving the legal security of bank regulators.
Topic:
Economics, Emerging Markets, Financial Crisis, and Reform
Political Geography:
Asia

12. Examining China’s Assertiveness through the Eyes of Chinese IR Scholars

Author:
Huiyun Feng and Kai He
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
Since the 2008 global financial crisis, China‟s diplomacy has moved towards a more confident or even assertive direction in international politics. Economically, the Chinese Premier refused to re-value the Chinese currency as the United States requested and instead started to lecture about U.S. economic mismanagement during the 2008 financial meltdown (Pomfret, 2010). Diplomatically, China responded furiously to Obama‟s decision of arms sales to Taiwan and meeting the Dalai Lama in early 2010, threatening to place sanctions on American companies. Politically, China reluctantly cooperated with Western countries, especially the United States, to punish either North Korean or Iranian provocations to the international order. Many other examples, from the Copenhagen Conference to the diplomatic standoffs between China and its neighbours, have also been listed as indications of China‟s assertive behaviour since 2008 (Swaine, 2010, 2011; Swaine and Fravel 2011; Perlez 2012; Ross 2012; He and Feng 2012). In particular, the 2012 Scarborough Shoal crisis with the Philippines, the still on-going flare-ups with Japan on the Senkaku/Diaoyu disputes, and the recently intensified tension with Vietnam in the South China Sea seemingly have further intensified regional concerns over China‟s rise. It is worth noting that some scholars have started to question the validity of the discourse regarding China‟s assertiveness in diplomacy. For example, through critically examining the “assertiveness” meme in the U.S. pundit and academic circles, Johnston questions: “How new and assertive is China‟s new assertiveness?” (Johnston, 2013). Although the extent and the nature of the assertiveness are still debatable, it is clear that China‟s foreign policy has shifted to a new direction, albeit temporarily. The goal of this paper is not to debate the temporal origins or intensity of China‟s assertiveness. Instead, it focuses on examining the perceptual roots of China‟s policy changes. As David Shambaugh (1991) points out, behaviour is principally a function of perception. In order to make sense of Chinese behaviour, we need to dig into the mindset of Chinese leaders. However, it is difficult to gauge what political leaders really perceive due to the political hierarchy and the complex nature of the decision-making process in any state system, especially China. In this research we examine Chinese leaders‟ perceptions and attitudes regarding Chinese foreign policy through the eyes of China‟s International Relations (IR) scholars. We use Chinese IR scholars as a “proxy measure” to make sense of Chinese leaders‟ perceptions because Chinese IR scholars serve as the mediator between the Chinese leadership and the general public (Shambaugh, 1991; Saunders, 2000). Based on an original opinion survey of Chinese IR scholars at the annual conference of the Chinese Community of Political Science and International Studies (CCPSIS) in Beijing in July 2013, we empirically test the perceptual roots of Chinese scholars‟ preference for an assertive diplomacy. In particular, we examine two competing arguments about China‟s assertiveness. Some scholars suggest a “power perception” argument in which China‟s assertiveness is rooted in Chinese leaders‟ changing perceptions regarding its power status versus the United States. In other words, as the 1 United States and other Western countries were troubled by their economic downturn, Chinese leaders became overly confident with China‟s rise and thereby started to say “no” to the United States as well as show its “teeth” to its neighbours (Nye, 2010; Green, 2010). Others advocate a “policy reaction” argument, which attributes China‟s assertiveness to a nationalist reaction to unfriendly international forces, especially from the West, which threatened to block China‟s rise. Continuous economic growth also instigated the rise of nationalism in Chinese society, which in turn pushed the Chinese government to react to Western criticisms and “plots” with more fury and toughness (Carr, 2010; Small, 2010; Swaine, 2011; Ross, 2012). In other words, China‟s assertiveness in diplomacy grew from an intentional reaction to the strategic pressure from the United States and the outside world. There are three parts in the paper. First, we briefly introduce our original survey conducted in the summer of 2013. Second, we develop two hypotheses based on the current debate about China‟s assertive diplomacy and test them by using the structural equation modeling (SEM) technique. We suggest that both the “power perception” and “policy reaction” arguments make sense in explaining China‟s assertiveness in diplomacy. However, our findings suggest that a more pessimistic perception regarding Chinese power is more likely to be associated with a preference for an assertive foreign policy. In other words, it is not a confident or an overly confident China but a lack of confidence instead, which is more likely to trigger an assertive foreign policy in China. In the conclusion section we discuss the implications of our findings for China‟s future international relations
Topic:
Diplomacy, Imperialism, International Cooperation, and Financial Crisis
Political Geography:
United States, China, Iran, Middle East, Asia, and North Korea

13. The Urban Regeneration Experience of The United Kingdom: Lessons for Turkey

Author:
Fatih Eren
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
The United Kingdom (UK) is the most experienced country regarding the theories, policies, strategies and practices of urban regenerations in the world. This study firstly outlines UK’s urban regeneration experience and then discusses how Turkey can benefit from this experience in the best way. The global financial crisis emerged in 2008 forced the UK to go a change in its national urban regeneration policy. Therefore, this paper has been divided into two parts as UK’s urban regeneration policy before and after 2010.
Topic:
Economics, International Cooperation, Financial Crisis, and Urban
Political Geography:
United Kingdom, Europe, Turkey, and Asia

14. Development: Advancement through International Organizations

Author:
Rohinton Medhora and David Malone
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The familiar world of international organizations principally devoted to development has been upended by two phenomena. First is the emergence of sustained economic success in the developing world (mostly in Asia, but increasingly also in Africa and, in a less spectacular way, Latin America) amid compelling, continuing need among the world's poor. Second, the slow-moving, serious financial and economic crisis of the industrialized world since 2008 has reordered priorities in many of their capitals toward domestic spending and away from costly international projects.
Topic:
Development, Economics, International Cooperation, International Organization, and Financial Crisis
Political Geography:
Africa, Asia, United Nations, and Latin America

15. Understanding Differences in Growth Performance in Latin America and Developing Countries between the Asian and Global Financial Crises

Author:
Roberto Alvarez and José De Gregorio
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Latin American performance during the global fi nancial crisis was unprecedented. Many developing and emerging countries successfully weathered the worst crisis since the Great Depression. Was it good luck? Was it good policies? In this paper we compare growth during the Asian and global fi nancial crises and fi nd that a looser monetary policy played an important role in mitigating crisis. We also fi nd that higher private credit, more fi nancial openness, less trade openness, and greater exchange rate intervention worsened economic performance. Our analysis of Latin American countries confi rms that eff ective macroeconomic management was key to good economic performance. Finally, we present evidence from a sample of 31 emerging markets that high terms of trade had a positive impact on resilience.
Topic:
Economics, Global Recession, Monetary Policy, and Financial Crisis
Political Geography:
Asia and Latin America

16. Understanding Differences in Growth Performance in Latin America and Developing Countries between the Asian and Global Financial Crises

Author:
Roberto Alvarez and José De Gregorio
Publication Date:
11-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Latin American performance during the global financial crisis was unprecedented. Many developing and emerging countries successfully weathered the worst crisis since the Great Depression. Was it good luck? Was it good policies? In this paper we compare growth during the Asian and global financial crises and find that a looser monetary policy played an important role in mitigating crisis. We also find that higher private credit, more financial openness, less trade openness, and greater exchange rate intervention worsened economic performance. Our analysis of Latin American countries confirms that effective macroeconomic management was key to good economic performance. Finally, we present evidence from a sample of 31 emerging markets that high terms of trade had a positive impact on resilience.
Topic:
Emerging Markets, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
Asia and Latin America

17. Sovereign Debt Restructuring: Old Debates, New Challenges

Author:
James A. Haley
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Ten years ago, in the wake of the Asian financial crisis and subsequent Argentine default, the international community debated how to best promote the timely, effective restructuring of sovereign debt. The debate then focused largely on the relative merits of a so-called statutory approach for sovereign restructurings, with features of domestic bankruptcy regimes, versus the voluntary use of contractual terms designed to facilitate restructurings. At the time, the statutory approach did not have the support necessary to move from proposal to policy and efforts to improve the framework of sovereign debt restructuring rested on the contractual approach.
Topic:
Economics, International Trade and Finance, and Financial Crisis
Political Geography:
Asia

18. Asian and European Financial Crises Compared

Author:
Edwin M. Truman
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The European and Asian financial crises are the two most recent major regional crises. This paper compares their origins and evolution. The origins of the two sets of crises were different in some respects, but broadly similar. The two sets of crises also shared similarities in their evolution, but here the differences were more significant. The European crisis countries received more external financial support, despite the fact that they involved more solvency issues while the Asian crises involved more liquidity issues. On balance, the reform programs in the European crises were less demanding and rigorous than in the Asian crises. Partly as a consequence, the negative impacts on the global economy have been larger. I draw three lessons from this analysis: First, history will repeat itself; there will be other external financial crises. Second, other countries have a stake in appropriate crisis management. Third, the IMF and other countries were mistaken in treating the European crises as individual country crises rather than as a crisis for the euro area as a whole that demanded policy conditionality on all members of the euro area.
Topic:
Economics, International Trade and Finance, International Monetary Fund, and Financial Crisis
Political Geography:
Europe and Asia

19. Reshaping the Security Order in Asia-Pacific

Author:
Alain Guidetti
Publication Date:
11-2012
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
The international strategic landscape is evolving at an unprecedented pace. The widespread assumption is that the global balance of power is shifting from the West to the East (and the South), as a consequence of the convergence of two variables: the sustained economic growth of China and Asia over recent decades, and the Western economic downturn since the 2008 global financial crisis. Though interpretations differ on the meaning and magnitude of this power shift, the prevailing assumption is that it reflects the weakness, and for some the relative decline, of the US and the West against Asia's and primarily China's strong rise. The implications of these developments across the Asia-Pacific are deep and have already led to growing strategic competition between Beijing and Washington for preeminence over the Asia-Pacific and new uncertainties over global and regional governance.
Topic:
Economics, Human Rights, and Financial Crisis
Political Geography:
United States, China, Washington, Beijing, Asia, Australia, and Asia-Pacific

20. Policy Roundtable on Asian Non-Traditional Security

Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
On 30–31 July 2012, a Policy Roundtable on Asian Non-Traditional Security was held at the Hotel Novotel Beijing Peace, China, with the aim of sharing the research findings of participating institutions. The Roundtable was organised by the Center for Regional Security Studies (CRSS), Chinese Academy of Social Sciences (CASS); the Centre for Non-Traditional Security (NTS) Studies, S. Rajaratnam School of International Studies (RSIS); the National Institute of International Strategy (NIIS), CASS; and the Center for Non-Traditional Security and Peaceful Development Studies (NTS-PD), Zhejiang University.
Topic:
Security, Climate Change, Environment, Human Rights, Human Welfare, Political Economy, Natural Disasters, and Financial Crisis
Political Geography:
Israel, Asia, and Australia/Pacific

21. A New Paradigm? Prospects and Challenges for U.S. Global Leadership

Author:
Tural Ahmadov
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Global Political Trends Center (GPoT)
Abstract:
Throughout the years the overwhelming preponderance of US global leadership is debated by scholars and politicians. In light of the 'rise of the rest', this preponderance is either diminishing or still standing. As of now, yet again, the US is a dominant player both economically and militarily. However, economic recession is likely to make the United States put more emphasis on domestic problems and less emphasis on foreign challenges. Since political and economic landscape is swiftly changing overseas, the United States should act accordingly and cooperate with regional powers on issues of mutual interest. Similarly, as current development is under way in the Middle East, the United States should staunchly back Turkey as the regional hub in dealing with Syrian crisis and foiling Iranian menace.
Topic:
International Relations, Foreign Policy, Arms Control and Proliferation, Economics, and Financial Crisis
Political Geography:
United States, Middle East, and Asia

22. Credit at Times of Stress: Latin American Lessons from the Global Financial Crisis

Author:
Liliana Rojas-Suarez and Carlos Montoro
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The financial systems in emerging market economies during the 2008–09 global financial crisis performed much better than in previous crisis episodes, albeit with significant differences across regions. For example, real credit growth in Asia and Latin America was less affected than in Central and Eastern Europe. This paper identifies the factors at both the country and the bank levels that contributed to the behavior of real credit growth in Latin America during the global financial crisis. The resilience of real credit during the crisis was highly related to policies, measures and reforms implemented in the pre-crisis period. In particular, we find that the best explanatory variables were those that gauged the economy's capacity to withstand an external financial shock. Key were balance sheet measures such as the economy's overall currency mismatches and external debt ratios (measuring either total debt or short-term debt). The quality of pre-crisis credit growth mattered as much as its rate of expansion. Credit expansions that preserved healthy balance sheet measures (the “quality” dimension) proved to be more sustainable. Variables signalling the capacity to set countercyclical monetary and fiscal policies during the crisis were also important determinants. Moreover, financial soundness characteristics of Latin American banks, such as capitalization, liquidity and bank efficiency, also played a role in explaining the dynamics of real credit during the crisis. We also found that foreign banks and banks which had expanded credit growth more before the crisis were also those that cut credit most. The methodology used in this paper includes the construction of indicators of resilience of real credit growth to adverse external shocks in a large number of emerging markets, not just in Latin America. As additional data become available, these indicators could be part of a set of analytical tools to assess how emerging market economies are preparing themselves to cope with the adverse effects of global financial turbulence on real credit growth.
Topic:
Debt, Economics, Emerging Markets, Globalization, and Financial Crisis
Political Geography:
Europe, Asia, and Latin America

23. China's Global Rise

Author:
Lowell Dittmer
Publication Date:
10-2012
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
In the "new" developing world, China looks for trade partners-not revolutionary allies.
Topic:
Cold War, Development, United Nations, and Financial Crisis
Political Geography:
China, Beijing, and Asia

24. Will Europe Fall into a Japanese-Style Stagnation Trap?

Author:
Peter Harrold
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Center for Social and Economic Research - CASE
Abstract:
Can Europe avoid falling in to a Japanese-style stagnation trap? In this type of trap, we see a repeated cycle of a financial crisis leading to a fiscal crisis, leading to a decline in consumer and investor confidence, and a resulting fall in demand. The decline in growth that inevitably follows simply causes the cycle to repeat itself. In theory, this should lead to improved competitiveness, but in Japan the forces of decline outweighed any boost in export demand. This E-brief is based on Peter Harrold’s presentation at the CASE 2011 International Conference on "Europe 2000: Exploring the Future of European Integration" held on November 18-19, 2011.
Topic:
Financial Crisis, Crisis Management, Economic Policy, Exports, Macroeconomics, and Strategic Competition
Political Geography:
Japan, Europe, and Asia

25. The ABCs of the General Capital Increase (ABCs of IFIs Brief)

Author:
Todd Moss, Sarah Jane Staats, and Julia Barmeier
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The international financial institutions dramatically increased their lending in 2008–09 to help developing countries cope with the global financial crisis and support economic recovery. Today, these organizations are seeking billions of dollars in new funding. The IMF, which only a few years ago was losing clients and shedding staff, expanded by $750 billion in 2009. The World Bank and the four regional development banks for Africa, Asia, Europe, and Latin America have asked to increase their capital base by 30 to 200 percent. A general capital increase (GCI) for these development banks is an unusual request. A simultaneous GCI request is a oncein- a-generation occurrence.
Topic:
Development, Foreign Aid, and Financial Crisis
Political Geography:
Africa, Asia, Latin America, and Ethiopia

26. Global fiscal consolidation

Author:
Warwick McKibbin
Publication Date:
05-2011
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
The build up in government debt in response to the 'great recession' has raised a number of policy dilemmas for individual countries as well as the world as a whole. Where the government fiscal stimulus was seen as necessary to restore confidence to markets and stimulate deteriorating economies in the aftermath of the 'great recession' by 2010 the massive fiscal stimulus programs and associated run-up in debt had, for many economies, become a confidence sapping exercise. This need for a change of fiscal policy stance has fuelled another debate that has two related aspects. One is the impact of fiscal consolidation on economies that are tightening and the flow-on effects to the world economy. The other debate is how much tightening there should be and how quickly.
Topic:
Debt, Economics, Global Recession, and Financial Crisis
Political Geography:
Asia and Australia/Pacific

27. G7 to G8 to G20: Evolution in Global Governance

Author:
Gordon S. Smith
Publication Date:
05-2011
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper provides a brief history of the evolution of the Group of Seven (G7) from its origins in the aftermath of the 1971 breakdown of the Bretton Woods system of exchange rates and the oil crisis in 1973. It then discusses Russia's participation at summits after the fall of the Berlin Wall, formally joining the group in 1997, thus becoming the Group of Eight (G8). The paper gives a concise account of the formation of the Group of Twenty (G20) finance ministers and central bank governors in the late 1990s, in the wake of financial crises in Asia and Latin America, which was elevated to a leaders' summit forum at the outbreak of the global financial crisis in 2008. The paper wraps up with a discussion of the differences in the G8 and G20 models, concluding that the G20 process is still the best option for meeting the challenges of complex global governance issues.
Topic:
International Cooperation, International Organization, International Trade and Finance, Financial Crisis, and Governance
Political Geography:
Russia, Asia, and Latin America

28. Between Revolution and Stagnation: Perspectives for Belarus

Author:
Anna Maria Dyner
Publication Date:
08-2011
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
Belarus faces a serious economic and financial crisis, which may have a significant impact on the political transformation of that country. Because of increases in living costs, which are part of the aftermath of the devaluation of the Belarusian ruble and rapidly rising inflation, an explosion of mass public protests is forecast for the autumn. However, it is not expected that the protests will bring about a rapid (pro-European) turn in the political situation in Belarus. Moreover, the weakness of the opposition, which after the presidential election of 2010 became even more divided than before and still has no charismatic leader, is not propitious to radical, pro-European changes.
Topic:
Economics, Social Stratification, and Financial Crisis
Political Geography:
Europe and Asia

29. Quantitative Easing and Bank Lending: Evidence from Japan

Author:
David Bowman, Fang Cai, Sally Davies, and Steve Kamin
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Prior to the recent financial crisis, one of the most prominent examples of unconventional monetary stimulus was Japan's "quantitative easing policy" (QEP). Most analysts agree that QEP did not succeed in stimulating aggregate demand sufficiently to overcome persistent deflation. However, it remains unclear whether QEP simply provided little stimulus, or whether its positive effects were overwhelmed by the contractionary forces in Japan's post-bubble economy. In the spirit of Kashyap and Stein (2000) and Hosono (2006), this paper uses bank-level data from 2000 to 2009 to examine the effectiveness in promoting bank lending of a key element of QEP, the Bank of Japan's injections of liquidity into the interbank market. We identify a robust, positive, and statistically significant effect of bank liquidity positions on lending, suggesting that the expansion of reserves associated with QEP likely boosted the flow of credit. However, the overall size of that boost was probably quite small. First, the estimated response of lending to liquidity positions in our regressions is small. Second, much of the effect of the BOJ's reserve injections on bank liquidity was offset as banks reduced their lending to each other. Finally, the effect of liquidity on lending appears to have held only during the initial years of QEP, when the banking system was at its weakest; by 2005, even before QEP was abandoned, the relationship between liquidity and lending had evaporated.
Topic:
Economics, Financial Crisis, Lending, and Banking
Political Geography:
Japan and Asia

30. The Sustainability of China's Recovery from the Global Recession

Author:
Nicholas R. Lardy
Publication Date:
03-2010
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
China's policy response to the global financial and economic crisis was early, large, and well-designed. Although Chinese financial institutions had little exposure to the toxic financial assets that brought down many large Western investment banks and other financial firms, China's leadership recognized that its dependence on exports meant that it was acutely vulnerable to a global recession. Thus they did not subscribe to the view sometimes described as “decoupling,” the idea that Asian countries could passively weather the financial storm that originated in the United States and other advanced industrial economies. They understood that absent a vigorous policy response China inevitably would suffer from the backwash of a sharp economic slowdown in its largest export markets—the United States and Europe.
Topic:
Economics and Financial Crisis
Political Geography:
United States, China, Europe, and Asia

31. Billions More for International Institutions? The ABCs of the General Capital Increases (GCI)

Author:
Todd Moss, Sarah Jane Staats, and Julia Barmeier
Publication Date:
06-2010
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
The international financial institutions dramatically increased their lending in 2008–09 to help developing countries cope with the global financial crisis and support economic recovery. Today, these organizations are seeking billions of dollars in new funding. The IMF, which only a few years ago was losing clients and shedding staff, expanded by $750 billion last year. The World Bank and the four regional development banks for Africa, Asia, Europe, and Latin America are asking to increase their capital base by 30 to 200 percent. A general capital increase (GCI) for these development banks is an unusual request. A simultaneous GCI request is a once-in-a-generation occurrence.
Topic:
International Relations, International Monetary Fund, Financial Crisis, and World Bank
Political Geography:
Africa, Europe, Asia, and Latin America

32. The evolving post-crisis world

Author:
Stephen Grenville
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
The worst of the global financial crisis (GFC) is over, but it has left scars, principally in the form of fiscallydriven debt increases, balance sheets that still need repair and high unemployment in the principal crisis countries. There is also unfinished business from the precrisis period, in the form of external imbalances. More positively, the crisis offers lessons about economic policymaking that may improve the way things are done. Of course the main lessons are for the developed countries that were at the centre of the crisis. But the countries of the region had to cope with the backwash, and in doing so lessons were learned. In addition, the lessons in the crisis countries, learned in an environment of extreme stress, may have relevance for the emerging market economies of this region.
Topic:
Development, Emerging Markets, and Financial Crisis
Political Geography:
China, India, and Asia

33. The Great Crash of 2008: Causes and Consequences

Author:
Deepak Lal
Publication Date:
06-2010
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In the early 1980s, I was working as the research administrator at the World Bank, while the Third World was engulfed by a debt crisis. The current global financial crisis has eerie similarities, but different outcomes. Why?
Topic:
Third World and Financial Crisis
Political Geography:
Africa, Asia, and Latin America

34. The G-20 and International Financial Institution Governance

Author:
Edwin M. Truman
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper addresses the agenda for the Group of Twenty (G-20) leaders' meeting in Seoul, Korea in November 2010. This is an opportunity and challenge for Asian leaders in particular. Their test will be, first, to demonstrate that they can responsibly advance economic recovery. They must also deliver on institutional reform, in particular of the International Monetary Fund (IMF). I advocate a substantial expansion of the IMF's role as lender of last resort that is integrated with the surveillance role of the IMF in the form of comprehensive prequalification for IMF assistance and policy advice and a substantial increase in the IMF's financial resources. I also propose an approach to meaningful reform of the distribution of IMF quotas along with limiting European seats on the IMF executive board.
Topic:
Economics, Emerging Markets, Global Recession, Financial Crisis, and Governance
Political Geography:
China, Israel, Asia, and Korea

35. Special Assessment: Asian Regionalism

Author:
Amy Searight
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
After a decade of rising regionalist aspirations and a flurry of community-building initiatives, the past year and a half has seen a slight shift in the momentum and direction of Asian regionalism. While the signing of regional free trade agreements continues apace and discussions on regional cooperative mechanisms proceed unabated, the perceptions and political goals of many in the region have been recalibrated in the face of new challenges and new opportunities. By far, the biggest challenge was the global economic crisis, which had a mixed impact on Asian regionalism. On one hand, it spurred calls for regional action, much in the way of the financial crisis that hit Asia hard in 1997-98. Moreover, the relatively swift recovery of Asian economies seemed to highlight the fact that world economic power is shifting to East Asia. On the other hand, crisis revealed the extent to which East Asia remains deeply integrated with the global economy, in both trade and finance, and it called into question the relevance of regional solutions for dealing with global challenges.
Topic:
Financial Crisis
Political Geography:
East Asia and Asia

36. Regional Monetary Cooperation in East Asia

Author:
Melissa Murphy and Wen Jin Yuan
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
After a decade of negotiations revolving around regional monetary cooperation, the Association of Southeast Asian Nations (ASEAN) plus China, Japan, and South Korea (ASEAN+3) finally reached agreement to establish a regional foreign reserve pool in February 2009. The launch of the Chiang Mai Initiative Multilateralization (CMIM) came amid the global financial crisis, when the ASEAN nations hit so hard during the 1997 Asian financial crisis were once again reminded of the utility of a joint policy initiative to ensure regional financial stability.
Topic:
Economics, Monetary Policy, and Financial Crisis
Political Geography:
Israel and Asia

37. Why Didn't the Global Economic and Financial Crisis Have More of an Impact on International Migration?

Author:
Khalid Koser
Publication Date:
09-2010
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
Economic and financial crises have always impacted on international migration patterns, processes, and policies. The Great Depression (1929- 33) resulted in massive repatriations of Latin Americans from the United States and the introduction of highly restrictive immigration policies in a number of industrialized countries, including France and Canada. The Oil Crisis (1973) resulted in severe restrictions on labour migration, a concomitant growth in asylum applications and irregular migration in Europe, and the emergence of new flows of labour migration to emerging industrial centres in Asia and Latin America. As a result of the Asian financial crisis (1997-99) several South-East Asian countries introduced policies of national preference and sought to expel migrant workers. The Russian financial crisis (1998) accelerated rates of emigration from Russia, in particular of Russian Jews and the highly-skilled. The gravity of the Latin American financial crisis (1998- 2002) also resulted in a significant exodus, in particular from Argentina.
Topic:
Economics, Migration, Global Recession, and Financial Crisis
Political Geography:
Russia, Asia, and Latin America

38. While global FDI falls, China's outward FDI doubles

Author:
Ken Davies
Publication Date:
05-2009
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
In 2008 global FDI fell by around 20%, while outward FDI from China nearly doubled. This disparity is likely to continue in 2009 and 2010 as China invests even more overseas. What is driving this continuing surge in China's outward FDI?
Topic:
International Trade and Finance, Foreign Direct Investment, and Financial Crisis
Political Geography:
China and Asia

39. The Global Economic Crisis and Its Implications for Asian Economic Cooperation

Author:
Michael G. Plummer
Publication Date:
10-2009
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The economic crisis of 2008–09 is the second major crisis in just over a decade that Asia has endured. Unlike the Asian crisis of 1997–98, however, the current crisis originated mainly in the West. Asia's excessive reliance on net exports as the principal driver of economic growth since the 1997–98 crisis rendered it especially vulnerable to external shocks, and most Asian countries have paid dearly. The more open the economy, the more vulnerable it is to such shocks. The newly industrialized Asian economies (Singapore, Hong Kong, South Korea, and Taiwan), which are among the most open and dynamic in the world, are expected to contract by about 6 percent in 2009.
Topic:
Emerging Markets, International Trade and Finance, Regional Cooperation, Global Recession, and Financial Crisis
Political Geography:
Taiwan, Asia, South Korea, Singapore, and Hong Kong

40. The United States and the Asia-Pacific Region: National Interests and Strategic Imperatives

Author:
James J. Przystup
Publication Date:
04-2009
Content Type:
Working Paper
Abstract:
From its earliest days, the United States has been engaged in trade with East Asia. In February 1784, the Empress of China left New York harbor, sailing east to China, arriving at Macau on the China coast in August of that year. The ship returned to the United States the following May with a consignment of Chinese goods, which generated a profit of $30,000. In 1844, China granted the United States trading rights in the Treaty of Wanghia.
Topic:
Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
United States, China, Asia, and Australia/Pacific

41. Soft budget constraints in China: Evidence from the Guangdong hospital industry

Author:
Karen Eggleston, Mingshan Lu, Congdong Li, Jian Wang, Zhe Yang, Jing Zhang, and Yu-Chu Shen
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Using data from 276 general acute hospitals in the Pearl River Delta region of Guangdong Province from 2002 and 2004, we construct a preliminary metric of budget constraint softness. We find that, controlling for hospital size, ownership, and other factors, a Chinese hospital's probability of receiving government financial support is inversely associated with the hospital's previous net revenue, an association consistent with soft budget constraints.
Topic:
Government, Health, and Financial Crisis
Political Geography:
China and Asia

42. Mass poverty in Asia and the GFC

Author:
Peter McCawley
Publication Date:
06-2009
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
What is the problem? In addition to the current Global Financial Crisis (GFC), there is a second global crisis: long-term mass poverty in the third world. While the rich world worries about a repeat of the Great Depression, today more than a billion people in Asia live in conditions of bitter poverty which are much worse than those of the 1930s. As a result of the GFC, poverty in developing Asia is now likely to increase.
Topic:
Development, Economics, Poverty, and Financial Crisis
Political Geography:
Asia

43. Assessing the slowdown in China

Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Oxford Economics
Abstract:
Growth in China has slowed dramatically over the past year from a blistering pace of over 13% in 2007 to just 6.1% in 2009 Q1. A turning in the domestic investment cycle has been coupled with a dramatic slowdown in external demand. Despite an unprecedented fiscal package, in the near term we expect growth to dip below 6% but it should begin to recover strongly towards the end of this year as the fiscal stimulus comes on stream, rising to 10% by end-2010. Indeed, some green shoots of recovery are already emerging with a pickup in manufacturing new orders and strong growth in credit. Domestic demand may be recovering but the impact of the external crisis on China’s growth prospects is uncertain. Nevertheless, more fundamental downside risks remain if rising unemployment leads to social instability or if an increase in loss-making investments uncovers weakness in the banking sector. By looking at what has driven the recent slowdown and how this compares with previous downturns, we can shed light on China’s prospects going forward and the major risks.
Topic:
Economics and Financial Crisis
Political Geography:
China and Asia

44. Global Outlook 2010: What lies ahead for the global economy

Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
Leo Abruzzese, Editorial Director for North America, discusses the latest EIU forecast for the world. Forward-looking economic indicators have continued to improve in many countries in recent months, suggesting that the worst of the contraction in global GDP is over. The improvement has triggered hopes of an imminent and sustained global economic recovery. But does this signal the start of a genuine strong recovery, or is it a false dawn, to be followed by months—or even years—of anemic growth? What is the outlook for the US, Canada, and Asia, as well as the major emerging markets, over the next couple of years? And what are the downside risks to this outlook?
Topic:
Economics, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
United States, Canada, Asia, and North America

45. The Impact of the Financial Crisis on Emerging Asia

Author:
Morris Goldstein and Daniel Xie
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper analyzes how the global financial crisis has affected emerging Asia and identifies key characteristics that have made these economies more or less vulnerable to a transmission of crises from the advanced economies. After reviewing how economic outcomes in emerging Asia have evolved since the crisis began in the summer of 2007, we review several studies of the effect of financial stress and/or growth slowdown in advanced economies on emerging Asia. We then discuss how emerging Asia is “different” in ways that matter for the contagion of crises, with the emphasis on currency and maturity mismatches, the nature of the region's foreign trade links (product composition, the geographic pattern of trade, and the degree of net export-led growth), financial market integration with the advanced economies, and the scope for implementing countercyclical monetary and fiscal stimulus.
Topic:
Economics and Financial Crisis
Political Geography:
Asia

46. Is the world addicted to bubbles? EIU's Quarterly Global Outlook webinar series

Author:
Robert Ward
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
Global: Recoverology Bounce-back theory: "V". The sharper the contraction, the stronger the recovery Financial-impairment theory: "U", "L" Recoveries following financial crises are much slower than normal recoveries Borrowed-time theory: "W" Stimulus boosts economy at the cost of weakness later Armageddon theory: "Q" Too grim to talk about.
Topic:
Economics, Markets, and Financial Crisis
Political Geography:
Asia

47. Sharing the Pain: The Global Struggle Over Savings

Author:
Michael Pettis
Publication Date:
11-2009
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
In September, the Obama administration imposed tariffs on Chinese tires. In October, the U.S. Department of Commerce announced it would launch an investigation into imports of seamless steel pipes from China. That same month, the U.S. Chamber of Commerce and the U.S.–China Business Council, two groups that in the past have defended Chinese policies, testified to the Office of the U.S. Trade Representative that Chinese contracting rules, technical standards, and licensing requirements were protectionist.
Topic:
Economics, Globalization, Foreign Direct Investment, and Financial Crisis
Political Geography:
China, Middle East, and Asia

48. How the Asia Pacific Can Drive the Global Recovery

Author:
Peter A. Petri
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The transition to a new, sustained global growth path is still precarious and will require concerted policy actions by many countries. Leadership by the G-20 will be essential for coordinating the global effort. But due to the central importance of the Asia Pacific in the world economy, regional institutions such as ASEAN+3, ASEAN+6, and APEC could also play large roles in the next phase of the recovery.
Topic:
Economics and Financial Crisis
Political Geography:
Israel and Asia

49. "Can't Buy Me Love": Will the global economic downturn help Russia consolidate its influence in post-Soviet Eurasia?

Author:
Igor Torbakov and Vadim Kononenko
Publication Date:
09-2009
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the Kremlin believes that the global economic downturn is increasing the trend towards greater regionalism, the strategic conclusion is to strengthen Russia's position as the centre of its "own region" - post-Soviet Eurasia. In order to enhance its geopolitical posture in the ex-Soviet area, Russia has been pursuing a two- track policy: it is buying up assets from, and giving out loans to, its distressed neighbours on a massive scale. Several forces appear to be working at cross-purposes with the Kremlin's ambitions: 1) the state of Russia's own economic system; 2) the wiliness and cunning maneuvering of Moscow's "allies"; and 3) the growing competition on the part of the other centres of power - the European Union and China. Ultimately, the Kremlin's desperate efforts to turn Russia into a geopolitical leader of the Commonwealth of Independent States (CIS) are likely to be frustrated by Russia's lack of a coherent long-term strategy and by its socio-political system's dearth of appeal.
Topic:
Globalization and Financial Crisis
Political Geography:
Russia, China, Europe, Asia, and Soviet Union

50. Financial Crises in Asia and Latin America: Then and Now

Author:
G. L. Kaminsky and C. M. Reinhart
Publication Date:
09-2009
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
2 Temmuz 1997 tarihinde Tayland Bahtı'nın devalüe edilmesinin ardından para ve menkul değerler piyasalarında, 1994 yılında Meksika Pesosu'nun devalüe edilmesinin ardından yaşanan “tekila” etkisini fazlasıyla aşan ölçülerde bir dalgalanma meydana gelmiştir. Kriz, ilk olarak, Doğu Asya'nın diğer ülkelerine bir dizi devalüasyon ve borsa çöküşü biçiminde yansımıştır. Sorunun derinlik kazanması ile birlikte, Hong Kong ve Güney Kore dahil, bölgedeki diğer ülkelerin para birimleri spekülatif baskılara maruz kalmıştır. Öte yandan kriz bölge dışına da taşmıştır. Arjantin, Brezilya ve Rusya gibi ülkelerin hisse senedi piyasalarında sert düşüşler yaşanmış ve ulusal para birimlerine dönük spekülatif saldırılar olmuştur. Döviz piyasalarında durum düzeldikçe, Tayland ve Güney Kore'de olduğu gibi, ülkelerin önemli bir bölümünde bankacılık sorunları, belki bunun da ötesinde büyük ölçekli bankacılık krizleri ortaya çıkmıştır.
Topic:
Financial Crisis
Political Geography:
Asia and Latin America

51. The Future of the Chiang Mai Initiative: An Asian Monetary Fund?

Author:
C. Randall Henning
Publication Date:
02-2009
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In September 1997, at the outset of the last global financial crisis, the Japanese Ministry of Finance proposed the creation of an Asian Monetary Fund. Although this particular proposal was scuttled, the idea of a common regional fund on which East Asian governments might draw in times of financial turmoil survives. The region's disaffection from the International Monetary Fund (IMF), stemming from the 1997–98 crisis, sustains this idea and a desire on the part of individual countries to self-insure with large holdings of foreign exchange reserves. East Asian governments and central banks have created a set of bilateral swap arrangements (BSAs) dubbed the Chiang Mai Initiative (CMI) and are negotiating among themselves to build these BSAs into a more comprehensive facility. Some Asian officials hope that such a facility could underpin exchange rate cooperation and monetary integration in the region, although such proposals remain for the moment long-term visions.
Topic:
Economics, International Cooperation, International Trade and Finance, Regional Cooperation, and Financial Crisis
Political Geography:
Japan, Israel, and Asia

52. Russia and the Global Meltdown: Domestic and Foreign Policy Responses to the International Financial Crisis

Author:
Robert Jellinek
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
This paper has its origins in the observation that government responses to the global financial crisis are as much political phenomena as they are economic. The current global financial crisis, among its many consequences, has on a very high level shaken up the world political order. And while the crisis is international in origin—its roots lie in the breadth and the degree of the dispersal of risk associated with mortgagebacked securities, as well as the growing imbalance in international capital flows—its resolution is necessarily being carried out first and foremost on a domestic level. This is not least of all because, in the decade since the Asian financial crises, states have begun to play a dramatically increased role in international finance in relation to both multilateral financial institutions such as the IMF and traditional private actors. In an age where global economic ties are integral to domestic economies and where states themselves are becoming some of the biggest players in international capital markets, a state's global financial standing will more than ever determine its political clout on the world stage. With states acting as market makers, lenders of last resort, and regulators of last resort, the key to understanding the future of individual states in the global economic order can be found only by analyzing states' domestic and foreign policy decisions within the context of the specific constraints facing those states at home and abroad.
Topic:
Economics, Emerging Markets, Human Rights, International Trade and Finance, and Financial Crisis
Political Geography:
Russia and Asia

53. China-Southeast Asia Relations

Author:
Robert Sutter
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
Asian commentators who asserted that China and its neighbors could ride out the economic crisis in U.S. and Western financial markets appeared in retreat during the quarter as the impact of the financial turmoil and recession in America and Europe began to have a major effect on China and the region's trade, manufacturing, currency values, and broader economic stability. The hope that China could sustain stable growth independent of the U.S. and Europe and thereby provide an engine of growth for export-oriented Southeast Asian countries was dented by Chinese trade figures that nosedived in November, especially Chinese imports, which fell by 18 percent. The financial crisis also dominated the discussion at the ASEM summit in October. Meanwhile, China continued to pursue infrastructure development projects with its neighbors to the south, resolved the land boundary dispute with Vietnam, and signed a free trade agreement with Singapore. Talk of a planned Chinese aircraft carrier caused some controversy, but on the whole assessments of China's rise were notably more balanced than in the past.
Topic:
Economics, Financial Crisis, and Reform
Political Geography:
United States, China, America, Europe, Asia, and Southeast Asia

54. The Asian Financial Crisis, Uphill Flow of Capital, and Global Imbalances: Evidence from A Micro Study

Author:
Brahima Coulibaly and Jonathan Millar
Publication Date:
08-2008
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This study assesses the role of the Asian Önancial crisis of the late 1990s in the emergence and persistence of the large current account surpluses across non-China emerging Asia, which have been a signiÖcant counterpart to the U.S. current account deÖcit. Using panel data encompassing nearly 3,750 Örms, we trace the current account surpluses to a marked and broad-based decline in corporate expenditures on Öxed investment in the aftermath of the crisis that cuts across a wide spectrum of countries, industries, and Örms. The lower corporate spending in turn depressed aggregate investment rates, widened the saving-investment gap, and allowed the region to turn into a net exporter of capital. We then consider the factors behind this reduction in postcrisis corporate investment. While weaker Örm-level fundamentals in the postcrisis period seem to explain part of the drop in investment rates, ongoing re-structuring owing to large debts accumulated and excess investment undertaken in the run-up to the crisis has been the main source of restraint postcrisis corporate investment. The results suggest that even after a decade, the e§ect of the Önancial crisis is still a§ecting corporate investment decisions in emerging Asia, and that as the restructuring completes its course, investment rates will likely rise to contribute to a gradual reduction in the regionís current account surpluses.
Topic:
Emerging Markets, Financial Crisis, Economic Inequality, and Investment
Political Geography:
Asia

55. The Impact of the Crisis - Decline and Recovery

Author:
Joseph J. Stern
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
When the Asian financial crisis broke in mid-1997, the expectation was that Indonesia would weather the crisis with minimal damage. Actual events soon proved these expectations widely wrong and the Indonesian economy was more severely affected than other Asian countries. In part this outcome reflected Indonesia's fundamental institutional weakness that had been overlooked in the euphoria that marked international financial markets during the 1990s, and in part the impact of the financial crisis was magnified by inconsistent internal policies and by an overly ambitious IMF program that tried to achieve too much in to short a period of time. The result was not only a severe economic contraction with rising poverty levels and growing social unrest, but a political change that resulted, in the short-run, in further economic instability and effectively delayed Indonesia's recovery.
Topic:
Politics, Financial Crisis, Banks, Currency, IMF, and Economic Recovery
Political Geography:
Indonesia, Asia, and Southeast Asia

56. Replacing Potemkin Capitalism: Russia's Need for a Free-Market Financial System

Author:
Kurt Schuler and George A. Selgin
Publication Date:
06-1999
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
On August 17, 1998, Russia devalued the ruble and stopped payment on its government debt, creating a financial crisis that continues today. Some observers have blamed the financial crisis, and the poor performance of the Russian economy generally, on government policies that they claim are rigidly laissez faire. However, a closer look at the Russian financial system reveals that it remains fundamentally socialist, though it has superficial capitalist features.
Topic:
Debt, Economics, Government, and Financial Crisis
Political Geography:
Russia, Europe, and Asia