A framework for regulating microfinance institutions : the experience in Ghana and the Philippines

An earlier Policy Research Working Paper (Hennie van Greuning, Joselito Gallardo, and Bikki Randhawa,"A Framework for Regulating Microfinance Institutions,"WPS 2061, February 1999) presented a regulatory framework that identifies thresholds in financial intermediation activities that trigger a requirement for a microfinance institution to satisfy external or mandatory guidelines-a tiered approach to regulation and prudential supervision. The model focuses on risk-taking activities of microfinance institutions that must be managed and prudentially regulated. The author reports on the results of the field testing and assessment of the tiered approach, focusing on the experience of Ghana and the Philippines. The two countries both have a wide range of informal, semi-formal, and formal institutions providing financial services to the poor, but differ in how they regulate financial intermediation activities by microfinance providers. In his assessment and a comparative analysis, the author focuses on key issues in the regulatory and supervisory environment for microfinance-and in the legal system and judicial processes-being addressed by government authorities and microfinance stakeholders in both countries. He gives particular attention to the thresholds at which intermediation activities become subject to prudential regulation and regulatory standards for capitalization and capital adequacy, asset quality and provisioning for nonperforming loans, and liquidity management. seeks to identify the key elements and characteristics of the microfinance regulatory experience of Ghana and the Philippines and to draw the lessons that may be useful for other countries interested in establishing a regulatory environmentconducive to the development of sustainable microfinance institutions. The experience of Ghana and the Philippines shows that a transparent, inclusive regulatory framework is indispensable for enabling microfinance institutions to maintain market specialization and to pursue institutional development that leads to sustainability. Clear pathways for institutional transformation facilitate the integration of microfinance institutions into the formal financial system.Payment Systems&Infrastructure,Banks&Banking Reform,Rural Finance,Financial Intermediation,Decentralization,Banks&Banking Reform,Rural Finance,Financial Intermediation,Governance Indicators,Poverty Assessment

The role of urban design in South African corridor development

The joyous advent of democracy in South Africa in 1994 brought real promise of an improvement in the life chances for millions of marginalised South Africans. There was reason for many citizens to have great faith in the new order after decades of sustained struggle. Effective state intervention and the spatial reorganisation of society seemed a realistic prospect in a country blessed with abundant natural resources and an established industrial base. The power of the state to affect change at the grassroots level was however soon compromised by the substitution of the populist Reconstruction and Development Programme with the neoliberal Growth, Employment and Redistribution Strategy (GEAR) by mid 1996. South Africa was now part of the international community and the new government's gaze was directed away from its popular support base. The radical and risky policy shift was influenced by demands of an international investor community and by the dictates of international donor organisations. Announcement of the policy shift was a low profile affair and few citizens had any real comprehension of the impact the shift would have on the capacity of the new ANC government to deliver on its electoral promises. Change in the macro economic policy reverberated within the lower tiers of government and in local authorities. Urban development policy was repeatedly rewritten; first in response to the dictates of the socialist RDP in 1994, and again in response to a neo-liberal GEAR in 1996. In 2000 the fragmented urban management system of appointed officials was replaced by an elected metropolitan government system. This initiated a third, profound shift in the policy context as each metropolitan government sought to formulate its own, context-specific policies. The most recent shift is significant since it has resulted in massive organisational upheaval and restructuring. However, it has opened new laboratories, which generates new opportunities for more responsive and accountable policy-making and planning. These new opportunities emerge against a backdrop in which the comedy of policy shifts that have occurred during the past nine years have resulted in little action and a growing crisis on the ground. Despite the policy shifts, corridor development has remained a constant feature of post apartheid urban development frameworks. Initially it made sense as a mechanism to physically integrate fragmented cities. It fitted a populist agenda, had political currency and was an easy sell. After the adoption of neo-liberal strategies it would receive another label; that of an accessible armature for private investment. Importantly, the latest policy shift in 2000 offered an opportunity to consider the city in a holistic and integrated fashion. This represents the belated death of the Apartheid City, which was characterised by fragmented, sub-regional councils linked to racially defined urban enclaves. New metropolitan governments arguably have greater capacity to facilitate and co-ordinate action in the extended corridor zone than has ever been possible. Effective implementation of a regional capital web of minimal public investment now becomes a distinct possibility. The recent adoption of a metropolitan government system and the associated strategic urban management approach offers an opportunity for reflection and for the construction of an informed vision of the role of urban design in corridor development. Whilst the corridor concept has survived, its purpose has become confused. While not discarding the corridor idea, many proposals that originated during the early post apartheid years are being questioned by new metropolitan governments. The new crisis is largely the result of the private sector having shown reluctance to invest in marginal zones of the city. Since corridors were originally conceived as devices which aim to link marginal zones to the core of opportunity, their capacity to facilitate change is limited by the sustained lack of market interest. While the market remains reluctant to invest in the areas of greatest need in corridors, requirements for improved mobility and access amongst the urban poor have escalated dramatically as millions of migrants from the rural hinterland and the African sub-continent flock to the urban peripheries. Migrants squat on the verges of highways or crowd into the backyards of apartheid-era townships. They are effectively constructing their own informal corridors along lines of access. This dynamic adds to the emerging crisis associated with an uninterested private sector. This thesis responds to the crisis from an urban design perspective. It evaluates the actions of urban designers in the corridor context during the past decade, and tests the perceptions of ordinary citizens who are affected by corridor development. While doing this it questions the predominance of generic approaches to corridor development and draws on insights gained from international fieldwork in Malaysia, Australia and Peru. Finally, it presents a strategic approach that indicates ways in which urban design may realise its potential to become an enabling discipline in the participatory development of the post apartheid integration corridor

Immigrant community integration in world cities

As a consequence of the accelerated globalization process, today major cities all over the world are characterized by an increasing multiculturalism. The integration of immigrant communities may be affected by social polarization and spatial segregation. How are these dynamics evolving over time? To what extent the different policies launched to tackle these problems are working? These are critical questions traditionally addressed by studies based on surveys and census data. Such sources are safe to avoid spurious biases, but the data collection becomes an intensive and rather expensive work. Here, we conduct a comprehensive study on immigrant integration in 53 world cities by introducing an innovative approach: an analysis of the spatio-temporal communication patterns of immigrant and local communities based on language detection in Twitter and on novel metrics of spatial integration. We quantify the "Power of Integration" of cities --their capacity to spatially integrate diverse cultures-- and characterize the relations between different cultures when acting as hosts or immigrants.Comment: 13 pages, 5 figures + Appendi

Peru at the brink of economic collapse: Current problems and policy options

Since 1988 Peru has plunged into a deep economic crisis which has already caused severe social strife and threatens to uproot the young democratic system. The present government seems to be unable to arrest the precipitous decline of per capita income of the Peruvian population. Therefore, the result of the next presidential elections in early 1990 will hinge on the credibility of the candidates' economic reform programmes. The Peruvian economy is suffering from large government deficits, a declining international competitiveness, an outdated and underutilised capital stock, and substantial arrears on the high debt burden. These structural deficiencies have resulted in an economic quandary which is characterized by hyperinflation, a drain of foreign exchange reserves, a dramatic decline of output, and mass unemployment. The economic plight of Peru can largely be attributed to a long history of policy failures. Adverse external developments such as low commodity prices or high interest rates were of minor importance. A comprehensive and consistent policy reform programme accompanied by foreign financial support would go a long way in bringing Peru back to a sustained and socially acceptable growth path. Priority areas for policy reform are to stop hyperinflation by public expenditure cuts and a tax reform, to improve domestic resource mobilisation by dismantling financial sector regulations, and to regain international competitiveness by exchange rate adjustment and lower import protection. Successful adjustment of the Peruvian economy will require an internationally-agreed temporary suspension of debt service payments and a supply of fresh funds to finance restructuring. Domestically, social hardship caused by adjustment has to be eased by targeted food subsidies to the poor. --

Constructing a BIM climate–based framework: regional case study in China

BIM has been undergoing continuous growth in the global architecture, engineering, and construction (AEC) industry. However, knowledge development within BIM management is lagging behind its implementation. This study initiates a BIM management–based framework involving BIM climate, which is measured by individual BIM practitioners’ perceptions. Subgroup comparison is highlighted in measuring perceptions. Regional variance in BIM climate is addressed in applying the framework by adopting an empirical case study within the context of China’s AEC industry. The case study uses Shanghai and Wenzhou, which represent a BIM-leading metropolitan city and a BIM-developing counterpart, respectively, for the comparative analysis of BIM climate. Based on data collected from a questionnaire survey sent to BIM practitioners from these two cities, it is revealed that Shanghai, as the BIM-leading city in China, has somewhat significant differences in BIM climate compared with Wenzhou. For example, Shanghai BIM practitioners perceive fewer challenges in BIM training, but higher risk in adopting BIM technology. This study contributes to both academic work and practice in BIM based on its initiation of the concept of BIM climate and the case study of BIM-climate comparison. Academically, this holistic study proposes the BIM management– related knowledge framework aiming to fill the knowledge gap in BIM climate and culture, and it could be further applied in subclimates and subcultures within BIM. Practically, the case study provides insights to stakeholders regarding regional variations in BIM climate when promoting BIM practice or establishing BIM guidelines

Special Libraries, September 1962

Volume 53, Issue 7https://scholarworks.sjsu.edu/sla_sl_1962/1006/thumbnail.jp

A Worldwide State-of-the-Art Analysis for Bus Rapid Transit: Looking for the Success Formula

This paper’s intended contribution, in terms of providing an additional angle in the existing Bus Rapid Transit (BRT) state-of-the-art knowledge spectrum, is a dual one. On the one hand, it provides a detailed description of the mode, re-defining BRT as an overall concept by identifying, discussing, and categorizing in a systematic way its strengths and its weaknesses in comparison with rail-based solutions and conventional bus services. On the other hand, it presents in detail a number of selected scheme-oriented applications from around the world, looking into some of the basic ingredients behind BRT’s success (or failure) stories. This is a scientific effort that could inform the reader about the current status of BRT internationally and about the challenges and opportunities that exist when trying to materialize BRT’s potential as an effective urban passenger solution that could challenge the merits of more conventional mass-transit options

The real estate risk premium : A developed/emerging country panel data analysis

The objective of this paper is to identify the determinants of office capitalization rates for a panel of 52 countries (developed and emerging countries) between 2000 and 2006. Our assumption, based on Capital Asset Pricing Model, is that the capitalization rate should be at least proportional to the country’s risk perception, as measured by the risk premium on the 10-year government bond yield. Because of the endogeneity of the latter variable, our empirical methodology requires that we estimate first a model explaining the 10-year bond yield. It will be the occasion to discuss the determinants of the risk premium on the bond market. Using a SURE random effect Hausman-Taylor estimator (Hausman & Taylor, 1981), w also take into account the possible correlation between the country risk characteristics on the bond markets and those that determine the real estate market. Our results show that government bond yield is the main determinant of the capitalization rate. We estimate that 1 percentage point increase in the government bond yield will raisse the capitalization rate by about 0.19 percentage point. Real estate variables play also a role, but to a lesser extent. Turning to determinants of the 10-year bond yield, macroeconomic fundamentals are significant determinants of the country risk premium, especially the capacity to honor short-term financial engagements. In addition, the country’s risk history has also very important effect on the investors’ current risk perception.