Leaving the nest: the rise of regional financial arrangements and the future of global governance

This article examines the impact of regional financial arrangements (RFAs) on the global liquidity regime. It argues that the design of RFAs could potentially alter the global regime, whether by strengthening it and making it more coherent or by decentring the International Monetary Fund (IMF) and destabilizing it. To determine possible outcomes, this analysis deploys a ‘middle‐up’ approach that focuses on the institutional design of these RFAs. It first draws on the rational design of institutions framework to identify the internal characteristics of RFAs that are most relevant to their capabilities and capacities. It then applies these insights to the interactions of RFAs with the IMF, building on Aggarwal's (1998) concept of ‘nested’ versus ‘parallel’ institutions, to create an analytical lens through which to assess the nature and sustainability of nested linkages. Through an analysis of the Chiang Mai Initiative Multilateralization (CMIM) and the Latin American Reserve Fund (FLAR), the article demonstrates the usefulness of this lens. It concludes by considering three circumstances in which fault lines created by these RFAs’ institutional design could be activated, permitting an institution to ‘leave the nest’, including changing intentions of principals, creation of parallel capabilities and facilities, and failure of the global regime to address regional needs in a crisis.The authors would like to thank Veronica Artola, Masatsugu Asakawa, Ana Maria Carrasquilla, Junhong Chang, Paolo Hernando, Hoe Ee Khor, Kazunori Koike, Jae Young Lee, Ser-Jin Lee, Guillermo Perry, Yoichi Nemoto, Freddy Trujillo, Masaaki Watanabe, Yasuto Watanabe, Akihiko Yoshida, and others who wished to remain anonymous, for their generosity in providing in-person interviews. Further, the authors would like to thank various central bank and ministry of finance officials of both FLAR and CMIM member countries. We also thank Jose Antonio Ocampo, Diana Barrowclough, and participants in the 'Beyond Bretton Woods' Workshop at Boston University (where an earlier version of this article was presented in September 2017) for their feedback on our broader research projects on RFAs. Last but not least, the authors wish to thank the anonymous referees for their constructive comments. This work builds upon previous work funded by UNCTAD and the Global Economic Governance Initiative at the Global Development Policy Center at Boston University. (UNCTAD; Global Economic Governance Initiative at the Global Development Policy Center at Boston University)Accepted manuscrip

A Survey on Approximation Mechanism Design without Money for Facility Games

In a facility game one or more facilities are placed in a metric space to serve a set of selfish agents whose addresses are their private information. In a classical facility game, each agent wants to be as close to a facility as possible, and the cost of an agent can be defined as the distance between her location and the closest facility. In an obnoxious facility game, each agent wants to be far away from all facilities, and her utility is the distance from her location to the facility set. The objective of each agent is to minimize her cost or maximize her utility. An agent may lie if, by doing so, more benefit can be obtained. We are interested in social choice mechanisms that do not utilize payments. The game designer aims at a mechanism that is strategy-proof, in the sense that any agent cannot benefit by misreporting her address, or, even better, group strategy-proof, in the sense that any coalition of agents cannot all benefit by lying. Meanwhile, it is desirable to have the mechanism to be approximately optimal with respect to a chosen objective function. Several models for such approximation mechanism design without money for facility games have been proposed. In this paper we briefly review these models and related results for both deterministic and randomized mechanisms, and meanwhile we present a general framework for approximation mechanism design without money for facility games

Complete solution of a constrained tropical optimization problem with application to location analysis

We present a multidimensional optimization problem that is formulated and solved in the tropical mathematics setting. The problem consists of minimizing a nonlinear objective function defined on vectors over an idempotent semifield by means of a conjugate transposition operator, subject to constraints in the form of linear vector inequalities. A complete direct solution to the problem under fairly general assumptions is given in a compact vector form suitable for both further analysis and practical implementation. We apply the result to solve a multidimensional minimax single facility location problem with Chebyshev distance and with inequality constraints imposed on the feasible location area.Comment: 20 pages, 3 figure

Incorporating Neighborhood Reduction for the Solution of the Planar p-Median Problem

Two efficient neighbourhood reduction schemes are proposed for the solution of the p-Median problem on the plane. Their integration into a local search significantly reduces the run time with an insignificant deterioration in the quality of the solution. For completeness this fast local search is also embedded into one of the most powerful meta-heuristic algorithms recently developed for this continuous location problem. Excellent results for instances with up to 1060 demand points with various values of p are reported. Eight new best known solutions for ten instances of a large problem with 3,038 demand points and up to 500 facilities are also found

Perturbation strength and the global structure of qap fitness landscapes

We study the effect of increasing the perturbation strength on the global structure of QAP fitness landscapes induced by Iterated Local Search (ILS). The global structure is captured with Local Optima Networks. Our analysis concentrates on the number, characteristics and distribution of funnels in the landscape, and how they change with increasing perturbation strengths. Well-known QAP instance types are considered. Our results confirm the multi-funnel structure of QAP fitness landscapes and clearly explain, visually and quantitatively, why ILS with large perturbation strengths produces better results. Moreover, we found striking differences between randomly generated and real-world instances, which warns about using synthetic benchmarks for (manual or automatic) algorithm design and tuning

Hybrid Meta-heuristics with VNS and Exact Methods: Application to Large Unconditional and Conditional Vertex p-Centre Problems

Large-scale unconditional and conditional vertex p-centre problems are solved using two meta-heuristics. One is based on a three-stage approach whereas the other relies on a guided multi-start principle. Both methods incorporate Variable Neighbourhood Search, exact method, and aggregation techniques. The methods are assessed on the TSP dataset which consist of up to 71,009 demand points with p varying from 5 to 100. To the best of our knowledge, these are the largest instances solved for unconditional and conditional vertex p-centre problems. The two proposed meta-heuristics yield competitive results for both classes of problems

The Incremental Cooperative Design of Preventive Healthcare Networks

This document is the Accepted Manuscript version of the following article: Soheil Davari, 'The incremental cooperative design of preventive healthcare networks', Annals of Operations Research, first published online 27 June 2017. Under embargo. Embargo end date: 27 June 2018. The final publication is available at Springer via http://dx.doi.org/10.1007/s10479-017-2569-1.In the Preventive Healthcare Network Design Problem (PHNDP), one seeks to locate facilities in a way that the uptake of services is maximised given certain constraints such as congestion considerations. We introduce the incremental and cooperative version of the problem, IC-PHNDP for short, in which facilities are added incrementally to the network (one at a time), contributing to the service levels. We first develop a general non-linear model of this problem and then present a method to make it linear. As the problem is of a combinatorial nature, an efficient Variable Neighbourhood Search (VNS) algorithm is proposed to solve it. In order to gain insight into the problem, the computational studies were performed with randomly generated instances of different settings. Results clearly show that VNS performs well in solving IC-PHNDP with errors not more than 1.54%.Peer reviewe

Abnormal ECG Findings in Athletes: Clinical Evaluation and Considerations.

PURPOSE OF REVIEW: Pre-participation cardiovascular evaluation with electrocardiography is normal practice for most sporting bodies. Awareness about sudden cardiac death in athletes and recognizing how screening can help identify vulnerable athletes have empowered different sporting disciplines to invest in the wellbeing of their athletes. RECENT FINDINGS: Discerning physiological electrical alterations due to athletic training from those representing cardiac pathology may be challenging. The mode of investigation of affected athletes is dependent on the electrical anomaly and the disease(s) in question. This review will highlight specific pathological ECG patterns that warrant assessment and surveillance, together with an in-depth review of the recommended algorithm for evaluation

Cardiac Screening of Young Athletes: a Practical Approach to Sudden Cardiac Death Prevention.

PURPOSE OF REVIEW: We aim to report on the current status of cardiovascular screening of athletes worldwide and review the up-to-date evidence for its efficacy in reducing sudden cardiac death in young athletes. RECENT FINDINGS: A large proportion of sudden cardiac death in young individuals and athletes occurs during rest with sudden arrhythmic death syndrome being recognised as the leading cause. The international recommendations for ECG interpretation have reduced the false-positive ECG rate to 3% and reduced the cost of screening by 25% without compromising the sensitivity to identify serious disease. There are some quality control issues that have been recently identified including the necessity for further training to guide physicians involved in screening young athletes. Improvements in our understanding of young sudden cardiac death and ECG interpretation guideline modification to further differentiate physiological ECG patterns from those that may represent underlying disease have significantly improved the efficacy of screening to levels that may make screening more attractive and feasible to sporting organisations as a complementary strategy to increased availability of automated external defibrillators to reduce the overall burden of young sudden cardiac death