Productive Development Policies and Supporting Institutions in Latin America and The Caribbean

This paper examines the evolution of productive development policies in Latin America in the last half century, with an emphasis on the post-reform period. The paper begins with a review of the import-substitution era and goes on to describe and make a preliminary assessment of the meaning and implications of productive development policies in the liberalization period.

What Influences the Diffusion of Grassroots Innovations for Sustainability? Investigating Community Currency Niches

Community action for sustainability is a promising site of socio-technical innovation. Here we test the applicability of co-evolutionary niche theories of innovation diffusion (Strategic Niche Management, SNM) to the context of ‘grassroots innovations’. We present new empirical findings from an international study of 12 community currency niches (such as LETS, time banks, local currencies). These are parallel systems of exchange, designed to operate alongside mainstream money, meeting additional sustainability needs. Our findings confirm SNM predictions that niche-level activity correlates with diffusion success, but we highlight additional or confounding factors, and how niche theories might be adapted to better fit civil-society innovations. In so doing, we develop a model of grassroots innovation niche diffusion which builds on existing work and tailors it to this specific context. The paper concludes with a series of theoretically-informed recommendations for practitioners and policymakers to support the development and potential of grassroots innovations

An Integrated Model for Liquidity Management and Short-Term Asset Allocation in Commercial Banks

This work develops an integrated model for optimal asset allocation in commercial banks that incorporates uncertain liquidity constraints that are currently ignored by RAROC and EVA models. While the economic profit accounts for the opportunity cost of risky assets, what may even incorporate a market liquidity premium, it neglects the risk of failure due to the lack of sufficient funds to cope with unexpected cash demands arising from bank runs, drawdowns, or market, credit and operational losses, what may happen along with credit rationing episodes or systemic level dry ups. Given a liquidity constraint that can incorporate these factors, there is a failure probability Pf that the constraint will not hold, resulting in a value loss for the bank, represented by a stochastic failure loss . By assuming that bankers are risk neutral in their decision about the size of the liquidity cushion, the economic profit less the possible losses due to the lack of liquidity is optimized, resulting in a short-term asset allocation model that integrates market, credit and operational risks in the liquidity management of banks. Even though a general approach is suggested through simulation, I provide a closed form solution for Pf , under some simplifying assumptions, that may be useful for research and supervision purposes as an indicator of the liquidity management adequacy in the banking system. I also suggest an extreme value theory approach for the estimation of , departing from other liquidity management models that use a penalty rate over the demand of cash that exceeds the availability of liquid resources. The model was applied to Brazilian banks data resulting in gains over the optimization without liquidity considerations that are robust under several tests, giving empirical indications that the model may have a relevant impact on the value creation in banks.

Macroeconomic management and the division of powers in Brazil : perspectives for the nineties

The federal authority for macroeconomic management in Brazil has experienced a profound change as a result of the institutional changes that culminated with the promulgation of a new Federal Constitution in October of 1988. This paper examines the implications of the new fiscal arrangements for the exercise of macroeconomic policies by the federal government. It examines how recent changes in the division of powers among federal, state, and local governments in Brazil have affected the conditions for macroeconomic management in that country. This examination gains an added significance given that the erratic character of macroeconomic performance in Brazil has often been blamed on macroeconomic mismanagement. It focuses on how federal control of the policy variables has been affected by the latest development in Brazilian institutions.National Governance,Banks&Banking Reform,Economic Stabilization,Public Sector Economics&Finance,Municipal Financial Management

The Role of Governmental Credit in Hemispheric Trade

Ion channels in the plasma membrane are important for the apoptotic process. Different types of voltage-gated ion channels are up-regulated early in the apoptotic process and block of these channels prevents or delays apoptosis. In the present investigation we examined whether ion channels are up-regulated in oocytes from the frog Xenopus laevis during apoptosis. The two-electrode voltage-clamp technique was used to record endogenous ion currents in the oocytes. During staurosporine-induced apoptosis a voltage-dependent Na(+) current increased three-fold. This current was activated at voltages more positive than 0 mV (midpoint of the open-probability curve was +55 mV) and showed almost no sign of inactivation during a 1-s pulse. The current was resistant to the Na(+)-channel blockers tetrodotoxin (1 µM) and amiloride (10 µM), while the Ca(2+)-channel blocker verapamil (50 µM) in the bath solution completely blocked the current. The intracellular Na(+) concentration increased in staurosporine-treated oocytes, but could be prevented by replacing extracellular Na(+) with either K(+) or Choline(+). Prevention of this influx of Na(+) also prevented the STS-induced up-regulation of the caspase-3 activity, suggesting that the intracellular Na(+) increase is required to induce apoptosis. Taken together, we have found that a voltage dependent Na(+) channel is up-regulated during apoptosis and that influx of Na(+) is a crucial step in the apoptotic process in Xenopus oocytes

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

Banking Internationalisation and the Expansion Strategies of European Banks to Brazil during the 1990s

This paper aims at analysing the determinants of the recent wave of European banks to Brazil in the context of the recent phase of banking internationalisation. The first part analyses the process of banking internationalisation from both an analytical and an historical approach. Focusing on the determinants of the banking internationalisation process, the paper shows that (i) the recent wave of banking internationalisation is characterised not only for financial institutions pursuing their existing relationships, but also and increasingly by a greater integration into the local market; (ii) banks operating in countries where the banking sector is larger and more profitable should be able to export a superior skill and are more likely to expand their activities abroad. The second part of the paper examines the determinants of the expansion of European banks in Brazil, as well as the expansion strategy of the four major European banks in Latin America – BSCH, BBVA, HSBC and ABN-Amro. In this regard, it shows that the recent wave of European banks entering Latin America and Brazil is determined by several factors, that include the process of restructuring the banking sector under the EMU; the dynamics of the internationalisation of the Spanish banks, since they have been the main players in the recent influx of foreign banks into Latin America; the process of market deregulation in the region since the early 1990s, in the broader context of economic and political reforms; the better prospects of the region for increasing returns to financial institutions compared to developed countries, as well as the potential gains in efficiency. Besides, it also shows that one of the common features of the four major European banks in Latin America – BSCH, BBVA, HSBC and ABNAmro – is that all the top four are big universal banks that choose to expand abroad as a strategy to expand their activities. More precisely, expanding abroad is not only a source of diversification of earnings, but also a way to strengthen their position in the European banking market under the pressure of economic and monetary union.

Global communication and political culture in the semi-periphery: The rise of the Globo corporation

This article will offer a description and explanation of the rise of the Brazilian media corporation Globo by situating it in the context of the periphery and semi-periphery of the World System and the globalisation of communication. In particular it focuses upon the changing role that Globo has played in the construction of an elite-led political culture in Brazil that has moved through phases of authoritarian and democratic government. The article sets out an historical account of the emergence of Globo from being a regional media organisation in the periphery of the world system to a global broadcaster in the semi-periphery. It moves through three phases: First, 1925–1964, the colonial legacy and Brazil in the periphery; second, 1964–1985, a period of transition and conservative modernisation, into the semi-periphery; and finally, 1985 onwards, the age of globalisation

Private Equity Investment in the BRICs

This Article investigates the legal and economic environment for private equity investments in Brazil, Russia, India and China (“BRIC”). In contrast with disappointing returns in the 1990s, private equity investment has soared in developing countries over the past decade. To explain what has led to the recent success of private equity in the BRICs, this Article will first give an overview of the challenges faced generally when investing in portfolio companies in developing markets and then analyze the legal and economic framework for each of the four BRICs. This Article finds that Brazil and China offer the best opportunities for private equity because investors can rely on strong domestic capital markets for the exit. While India is not far behind, Russia still has room for improvement, particularly with regard to the reliability of its legal system and the attractiveness of its capital markets

Corporate Governance in Emerging Markets

The turning to the XXI century has been marked by reforms in corporate governance practices around the world. Whether due to shocks caused by the economic crisis in East Asia, Russia and Latin America, or by financial scandals in the United States and Europe, the fact is that the way of doing business has changed in terms of demands for greater corporate transparency and accountability, shifts in control of ownership, empowerment of new types of owners and so on. Consequently, countries and firms have adapted their corporate governance policies and practices to this new governance environment. In this chapter, we discuss the foundation of corporate governance, that is, corporate ownership. In particular, we explore the current patterns of the ownership structure of publicly listed firms in six emerging countries. To do so, we have collected firm ownership data for listed firms in Brazil, Chile, South Korea, Czech Republic, Hungary, and Poland during the first decade of the XXI century, and we compare our data with existing ownership research of these countries in the late 1990s. We conclude that although concentration of corporate shareholdings continues to be a common denominator among these emerging countries, the processes and structures controlling firms across countries is remarkably different. For instance, the privatization process in the 1990s, in spite of having different motivations and goals in Latin American and Eastern Europe shaped much of the corporate ownership transformations. Our chapter offers a comparative analysis of the corporate ownership changes in emerging markets.