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Finance

A new global and regional financial architecture to address global shocks

A new global and regional financial architecture to address global shocks
In the postwar period, the global economic and financial architecture was dominated by the advanced economies in the West. They designed the international monetary system, international development financing frameworks, and global trade liberalization schemes. They also dominated the leadership of key global institutions related to economic and financial stability, the International Monetary Fund (IMF), and, more recently, the Financial Stability Board (FSB).

Environment, Finance, Industry and Trade

Green finance for sustainable investment

Green finance for sustainable investment
To place the Asian economies onto a sustainable development pathway requires an unprecedented shift in investment away from industries relying intensively on greenhouse gases, fossil fuels, and natural resources toward more resource-efficient technologies and business models. The finance sector will have to play a central role in this green transformation. Important aspects of green finance are sustainable investment and banking, where investment and lending decisions are taken based on environmental screening and risk assessment to meet sustainability standards, as well as insurance services that cover environmental and climate risk.

Finance, Governance

Japan’s Local Government Debt Control System

Japan's Local Government Debt Control System
Japanese local government bonds or loans are viewed as secure and almost the same as Japanese Government Bonds (JGBs). The Ministry of Internal Affairs and Communications (MIC), which is responsible for matters related to local government finance in Japan, states that even though decentralization reforms have been executed and are still in progress, there are three reasons that assure the financial security of local governments.

Environment, Finance, Industry and Trade

Sustainable funding schemes for the development of waste management projects in Asia

Sustainable funding schemes for the development of waste management projects in Asia
For many years, cities have been the engines of economic growth in Asia. However, this growth has brought the immense challenge of the daily generation of millions of tons of solid waste, especially in mega cities. The amount of solid waste being generated in Asia is drastically increasing as 44 million people are being added to city populations every year, and many cities are placing burdens on municipal as well as central governments. By 2050, 50% of the world’s population will live in the Asia and Pacific region (ADB, 2011).

Economics, Finance, Trade

Young Small and Medium-Sized Enterprises and Bank Credit Denials: Evidence from Europe

Young Small and Medium-Sized Enterprises and Bank Credit Denials: Evidence from Europe
It is widely accepted that small and medium-sized enterprises (SMEs) represent the backbone of most economies. Not surprisingly, the story is mostly the same across the globe. For instance, Yoshino and Taghizadeh-Hesary (2014) report that SMEs account for almost 98% of all enterprises in Asia, offering jobs to around 66% of the workforce. In the European Union, the data offer a similar picture. In fact, SMEs represent 99% of all non-financial enterprises and account, on average, for 67% of total employment (European Commission 2017). Overall, such figures undoubtedly highlight how pivotal SMEs are for the functioning of the real economy.

Finance, Infrastructure, Regional Cooperation, Trade

Next generation of quality development and investment in the new Pacific trade pact

Next generation of quality development and investment in the new Pacific trade pact
Earlier this month, the Pacific trade pact was reborn in Santiago as the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership. While the headlines have been dominated by the absence of the United States and the level of trade gains each nation hopes to enjoy, let’s focus here on three less-remarked-upon sections of this revised treaty among Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam (the TPP11).

Economics, Finance, Governance, Trade

FDI and Its Impacts on Entrepreneurship and Informal Markets: A Double-Edged Sword?

FDI and Its Impacts on Entrepreneurship and Informal Markets: A Double-Edged Sword?
Foreign direct investment (FDI) is attractive, especially for developing and emerging markets, as it brings new technologies and mitigates the constraints imposed by low domestic capital formation. Lawmakers enact various policies to make such investments attractive for foreigners, and businesses often actively seek foreign collaborators. India, for instance, under the present government, has been aggressive in seeking foreign investments through its “Make in India” campaign.

Economics, Finance, Governance

Will Financial Liberalization Trigger the First Crisis in the People’s Republic of China?

Will Financial Liberalization Trigger the First Crisis in the People’s Republic of China
The People’s Republic of China (PRC) has been liberalizing its financial system for nearly 4 decades. While it now has a comprehensive financial system with a large number of financial institutions and large financial assets, its financial policies are still highly repressive. These repressive financial policies are now a major hindrance to the PRC’s economic growth (Huang and Wang 2011).

Environment, Finance

Green bonds experience in the Nordic countries

Green bonds experience in the Nordic countries
According to the Asian Development Bank, developing countries in Asia will need to invest an estimated $26 trillion through 2030, or $1.7 trillion per year, in infrastructure to maintain growth, eliminate poverty, and address climate change. Given their limited public resources, developing countries in Asia will need to find ways to mobilize and leverage significant amounts of private capital to meet the investment requirements for the Paris Agreement and the Sustainable Development Goals.

Economics, Finance

Managing financial globalization: A guide for developing countries

Managing financial globalization: A guide for developing countries
As cross-border capital flows rise relative to world gross domestic product (GDP), developing countries do not wish to miss the associated benefits. But at the same time, they are also anxious about avoiding the associated economic instability and distortions. What is the right strategy with regards to international capital flows? We can draw lessons based on the recent literature.