807 research outputs found
Anti Money Laundering Mechanism: An Application of Principal-Agent Model for Pakistan
In this paper anti money laundering policy of the international financial regime is analyzed in principal agent model perspective. The strategy of the principal for formal agents is deliberated for global financial stability. This strategy encompasses incentive and dis-incentive for cooperation of formal agent. Formal agent by cooperating with principal may induce dis-incentive for informal agent. All the integrating stake holders make decision on the basis of comparison of present value of marginal cost of non-cooperation and present value of returns from cooperation. As the desired objective of the principal is to minimize transaction of money through informal channels therefore it has to include informal agents and clients in the strategy. The successful anti money laundering strategy can only be evolved by the cooperation of all the stakeholders.International Financial Regime, Principal Agent model and Money Laundering
Earthquake 2005: Some Implications for Environment and Human Capital
Loss of human capital in the form of skills and experiences is one of the outcomes of any natural hazard such as earthquake, drought, famine, and floods. Generally such losses have many implications for further growth of individuals, communities and nations. Disaster management and risk assessment has established a new need to constitute a paradigm of planning frameworks to develop modules for dealing with interactive rehabilitation and reconstruction activities. However, such management still lacks due attention in perspective of the remedy of human capital loss particularly in environmental management. This paper discusses the post-disaster situations with respect to human capital flow and stock losses and some of their implications and suggests some measures to apply in the earthquake-affected areas of Azad Kashmir and NWFP.
Incompatibility of Laws and Natural Resources: A Case Study of Land Revenue Laws and Their Implications in Federal Areas of Pakistan
Better rule of law would generate economic growth, which would
in turn build constituencies for democratic reforms [Root and May
(2006)]. Consider prisoners dilemma, to Law and Economics Scholars, the
inevitability of prisonerâs dilemmas arising to block potentially
efficient exchanges explains the need for and consequently the adoption
of contract law. When the law enforces contracts, it permits the
participants in a potential prisonersâ dilemma the option of escaping
the dominant strategy equilibrium of non-cooperation, which prevents the
achievement of efficient exchanges, by permitting the parties to
effectively pre-commit to future cooperative behavior. Mutual
pre-commitments can produce the efficient cooperate-cooperate
equilibrium. The existence of contract law then tends to foster
efficient cooperative behaviour. Institutions are considered to provide
the mechanisms by which individuals can resolve social dilemmas [Steins
(1999)]. They are sets of rules that people have created in order to
control/regulate the behavior of people using a natural resource.
Several layers of institutions are important for institutional
development and economic performance. These layers, from the slowest
moving to the fastest moving are: human motivations and social
institutions, political institutions, legal institutions and private
institutions [Azfar (2006)]. Institutions perform their role to frame
rules, procedure and enabling environment for implementation of rules.
Rights of individuals are recognised and recognised through institutions
as well
Governance of Money Laundering: An Application of the Principal-agent Model
Money laundering has an element of a bate for one individual
and a tool of exploitation for another individual and carries an
externality (positive or negative) for the society. Its multifarious
nature is analysed in perspective of Principal-Agent-Client Model of
Provan and Milward (2001). Model of Network Evaluation by Provan and
Milward (2001) is originally used for health and social sector; however
this model is extended and applied for governance of money laundering.
In this model we evaluate the affectivity of the network of money
transaction with the objective function to minimise transaction of money
through money laundering by making laws and procedure and get these
implemented through agents. As there is involvement of multiple
stakeholders, therefore, evaluation of network effectiveness is made at
three levels i.e. at community level to analyse: community, the network
itself and the networkâs organisational participants. These levels are
of interest to three major constituents of money transaction network
such as principal, agent, and clients
Convergence Model of Governance: A Case Study of the Local Government System of Pakistan
The future of devolution plan in Pakistan may be analysed in view of our Convergence model. This model views stability of the local Govt. system drawn on Devolution Plan 2001. It claims that as there would be more volatile and non-committed (floating) number of agents in the political market and governance system, there is more probability of divergence; i.e. the system will remain unstable. Contrary to that more is the systematic trend in political market and governance system more is the probability that the convergence in the system occurs and that in turn leads to stability of the over all system. In this âConvergenceâ Model different types of agents have been highlighted on the basis of their political ffiliation and being in competition as ruling elite and/or their allies and non-ruling elite and/or their allies. The agents have interactive relationship horizontally and vertically with other agents i.e. either they are ally or otherwise. The composition of this structure of the agents and clients is based on the principle of bottom top pproach i.e. Union councilâs members, Nazim and their political competitors, Tehsil council and Nazim, District Nazim and his allied district assembly members and their political competitors, Member provincial Assembly and their political rivals, Member National Assembly/Senator, and their political rival and the ruling political elites, Provincial Government and their political rivals, and Political elites ruling Federal Government and their political rivals.
Algebraic Representation of Social Capital Matrix
This paper proposes a mathematical model based on a Boolean algebra involving a 4Ă4 social capital matrix [Shah (2008)], that emerges through interaction within and across individuals, communities, institutions and state. The framework provides a coding system for the existence or otherwise of various categories of social interaction. The model illustrates that social interaction can be neatly described in a format that facilitates the interpretation of social intra- and interactions among the four types of players in generating economic activity.Social Capital (Matrix), Linear Space, Interactive Systems, Boolean Algebra
Algebraic Representation of Social Capital Matrix
This paper proposes a mathematical model based on a Boolean algebra involving a 44 social capital matrix [Shah (2008)], that emerges through interaction within and across individuals, communities, institutions and state. The framework provides a coding system for the existence or otherwise of various categories of social interaction. The model illustrates that social interaction can be neatly described in a format that facilitates the interpretation of social intra- and interactions among the four types of players in generating economic activity.Social Capital (Matrix), Linear Space, Interactive Systems, Boolean Algebra
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