Environmental Sustainability and Services in Developing Global City Regions

Globalization brings unparalleled challenges and opportunities for global city-regions, both in terms of wealth creation and environmental sustainability. The purpose of this paper is (1) to analyze the environmental challenges of global city-regions, especially in developing countries, where they are more severe; (2) to examine the implications of globalization for these challenges; and (3) to explore public policy options, private sector involvement and innovative, flexible instruments for addressing these challenges. Based on this analysis, the author proposes a new paradigm for the environmental management of global city-regions, driven by the private sector and civil society, with government playing a regulatory and facilitating role.Urban Planning, Environment, Sustainable Development

The surge in capital inflows to developing countries : prospects and policy response

After being excluded from world capital markets during the debt crisis, many developing countries have experienced large capital inflows in the past five years. The challenges these inflows pose for domestice policy have generated a substantial literature. The authors review and extend that literature. They characterize the new inflows, assess their causes and the likelihood of sustainability, analyze the policy issues they raise, and evaluate the possible policy responses. Their conclusions tie desirable policy responses to characteristics of both the flows themselves and to those of the recipient economy. Regarding the forces driving the current episode, they conclude that generally, the role of foreign interest rates as a"push"factor driving capital inflows and determining their magnitude has been well-established. On the other hand, country creditworthiness has helped determine both the timing and destination of the new capital flows. Even if creditworthiness is maintained, the early level of inflows is unlikely to be sustained. The pace of reduction in flows to countries that have been receiving them since the early 1990s depends on the path of foreign interest rates and the role of stock adjustment. But a loss of creditworthiness caused by a deterioration in domestic policy would stop inflows quickly and, depending on the circumstances, inflows may be replaced by substantial outflows and an outright balance of payments crisis.What are the implications for policy in recipient countries? Briefly, the receipt of capital inflows may strengthen the case for removing macroeconomic distortions, either because such inflows aggravate the cost ofsuch distortions or because they ease the constraints that originally motivated their adoption. While direct intervention may not be feasible (because controls may be easily evaded), controls may sometimes be a second-best policy. To the extent that capital inflows are permitted to materialize, the desirability of foreign exhcange intervention depends on what is required for macroeconomic stability. Sterilized foreign exchange intervention to prevent overstimulation of demand with a fixed exchange rate may not be feasible or effective. A commensurate reduction in the money multiplier, achieved by increasing reserve requirements, may also have limited effects. The effectiveness of both measures depends on the structure of the domestic financial system. If domestic monetary expansion is not avoided, or if an expansionary financial stimulus is transmitted outside the banking system, the stabilization of total demand will require fiscal contraction.International Terrorism&Counterterrorism,Capital Markets and Capital Flows,Economic Theory&Research,Fiscal&Monetary Policy,Banks&Banking Reform,Economic Theory&Research,Macroeconomic Management,Banks&Banking Reform,Environmental Economics&Policies,International Terrorism&Counterterrorism

Implementing inflation targeting in Brazil: an institutional analysis

The paper shows the advantages and handicaps of implementing an inflation target (IT) regime, from a Post-Keynesian and, thus, an institutional stance. It is Post-Keynesian as long as it does not perceive any benefit in the mainstream split between monetary and fiscal policies. And it is institutional insofar as it assumes that there are several ways of implementing a policy, such that the chosen one is determined by historical factors, as it is illustrated by the Brazilian case. One could even support IT policies if their targets were seen just as “focusing devices” guiding economic policy, notwithstanding other targets, as, in the short run, output growth and employment and, in the long run, technology and human development. Nevertheless, an IT is not necessary, although it can be admitted, mainly if the target is hidden from the public, in order to increase the flexibility of the Central Bank.Brazil; Inflation; Inflation Targeting; Monetary Policy; Economic Policy; Central Bank

Exchange Rate Policy in Brazil

The macroeconomic regime implanted in Brazil during the second administration of Fernando Henrique Cardoso, and largely maintained by his successor, is typical of those of the advanced countries. The anchor is provided by an inflation-targeting regime (with a target inflation rate somewhat greater than in most advanced countries, of 4.5 percent a year, with a band around it of +/–2 percent). The exchange rate floats. The float is often described as free, but given the extent of recent reserve accumulation it would not qualify as a free float as understood by most economists. Fiscal policy has actually been more ambitious under the Lula regime, resulting for a time in a primary surplus of at least 4.25 percent of GDP (subsequently reduced to allow for a higher rate of public investment, and also temporarily reduced further to help combat the crisis). Monetary policy has then been directed at achieving the inflation target given fiscal policy, which--given history--has implied maintaining high interest rates. While the majority of the framework in Brazil is acceptable, it is a bit too laissez-faire in that the exchange rate should be targeted at a rate consistent with macroeconomic balance, which the authorities should treat as a reference rate.exchange rates, inflation targeting, emerging-market economies, Brazil, reference rates

Efficient contracting, earnings smoothing and managerial accounting discretion

Purpose – The purpose of this paper is to examine whether the contracting incentives (i.e. bonus plans, debt covenants, political costs hypotheses), and income smoothing can explain accounting choices in an emerging country, Egypt. Design/methodology/approach – The paper uses the ordinary least square regression model to examine the relationship between earnings management and reporting objectives. A sample of 438 non-financial firms listed on the Egyptian Exchange over the period 2005-2007 is used. Findings – The paper finds that the contracting objectives explain little of the variations in accounting choices (i.e. discretionary accruals) in the Egyptian context. However, the paper finds that mangers are likely to smooth the reported earnings by managing the accrual component in an attempt to reduce the fluctuation in reported earnings by increasing (decreasing) earnings when earnings are low (high) in attempt to reduce the variability of the reported earnings. Research limitations/implications – The empirical results rely on the ability of earnings management proxies to adequately capture earnings manipulation activities. Practical implications – The findings of the study should be of substantial interest to regulators and policy makers. The results implicitly contribute to the ongoing argument in relation to the optimal flexibility permitted by standard setting and the argument that tightening the accounting standards and mandating International Financial Reporting Standards are likely to improve reporting quality and reduce opportunistic earnings management. The results reveal that many of the weaknesses related to corporate reporting in emerging countries may result from the inadequate enforcement of the law and the weak legal protection of minority shareholders. The results also highlight the crucial role of understanding the reporting incentives, which is mainly shaped by institutional and market forces and the legal environment, in explaining accounting choices. Originality/value – Unlike previous studies that tested an individual objective, this study examines the trade-offs among various reporting objectives in an emerging economy

The regulation of a project of the deregulation: UBER in Brazil and the European Union

Purpose – This paper focuses on the regulation of Uber at regional level (Sao Paulo and Brasilia), national level (European Member States) and supranational level (The European Commission initiative), which are often too restrictive. Methodology/approach/design – This article analyses standards and literature on regulation, as well as the role of competition. Attention was specially drawn to the market failure theory for justifying regulation, advocated by Breyer, Ogus and Baldwin & Cave. Due to the fact that there will be an evaluation of the regulations in place, consequentialism, welfarism and Pareto are briefly mentioned. Findings – None of the current regulatory responses, at the exception to Sao Paulo and the initiative by the European Commission that are not based exclusively on market failure theory, are working. Indeed, Uber is still banned in various cities. In others, the regulatory burden is so high that it takes away any incentives that Uber created. Regulation is not the only exit to market failure, competition must play a role. Uber is based on deregulation of the market and to try to regulate such concept with conventional theories will only lead to failures and restrictions. Practical implications – This article discusses the possible improvements to the already existing regulations. Originality/value – This paper correlates the regulation of Uber in Brazil and in Europe, explaining the difficulties these regulations are creating for Uber

Competition & opportunity

Banks and banking ; Banking law ; Regulation Q: Prohibition Against Payment of Interest on Demand Deposits