Naming without shaming: The publication of sanctions in the Dutch financial market

Enforcement agencies increasingly disclose or “name and shame” corporate offenders. This article uses responsive regulation as a framework for an empirical study of the impact of non‐anonymous publication of sanctions in the Dutch financial market. These publications are characterized as “naming without shaming”, because they are used for technical guidance rather than with the intention to shame. The findings show that naming offenders functions as a general deterrent in the market for financial intermediaries, but considerably less so in the capital market. In both markets, the publication of sanctions weakened the impact of enforcement. In the capital market, the publications neutralized the seriousness of offenses and contributed to the image of the regulator as powerless. In the market for financial intermediaries, naming offenders was perceived as stigmatizing shaming and led to defiance, rather than compliance. The case study suggests, however, that the publication of sanctions may provide an opportunity for guidance, provided they contain a moral message, rather than technical instruction.     

“Market” Classification and Political Campaigning

ABSTRACT

There is an argument for a flow of logic from market structure to marketing strategy and performance. The nature of the political “market” and service-product constrains and dictates marketing strategy choices. Interactions between the voter, parties, and candidates in political campaigns could be likened to human services (Dickens, 1996) in commerce. However, parties and candidates operate in peculiar poligopolistic markets competing for the authority to deliver government services through an exclusive right of franchise bidding process similar to that in business-to-business markets. A structure-conduct-performance model is presented based on an analysis of political markets from consumer, industrial, and services marketing perspectives to provide strategic marketing insights. Political marketing is a hybrid subdiscipline of marketing incorporating characteristics from all three major marketing paradigms, with services marketing theory holding particular promise for future theory development.     

The politics of financial services regulation and supervision reform in the European Union

Abstract.  The regulation and supervision of financial services in the European Union (EU) has undergone major reform between 1999 and 2004. This policy evolution is theoretically interesting, raising the question of which conceptual approaches better explain it, and it is also empirically relevant because it is an area of intense EU activity. This article provides a theoretically informed and empirically grounded explanation of the policy reform by evaluating the analytical leverage of three integration theories, mainly by relying on two methods – process tracing and congruence procedure – employing a variety of primary and secondary sources. It is argued that sequencing different theoretical approaches – interdependence , supranational governance and liberal intergovernmentalism – explains the various stages of the policy-making process – namely, background-setting, agenda-setting and decision making, as well as the main features of the outcome.     

How did international economic regulation survive the last period of deglobalization?

As trade wars and protectionism again present severe challenges and obstructions to international economic regulatory organizations (IEROs), it is timely to ask how their predecessors survived the last deep deglobalization of the interwar years. This article presents a fresh neo-Durkheimian institutional explanation. It highlights contrasting pathways to survival and bequest of IEROs in three fields of regulation – international infrastructure, capital and labor, and commodities. Our explanation shows that functional imperatives and short-term market pressures in these different areas of regulation facilitated specific forms of social organization within IEROs (such as hierarchy or individualistic brokering). These contrasting forms of social organization cultivated distinct regulatory styles during deglobalization and cultivated capacities for contrasting survival and bequest strategies. Our approach is thus able to account for variation in pathways to survival in a way that other possible explanations, such as theories of regulatory capture or bureaucratic autonomy, cannot.     

建立面向21世纪的具有区域特色的现代首都金融业

在进入２１世纪之际，构建适应首都经济需要的现代金融业，将是首都金融业所面临的一项重要任务，根据国际金融业的发展趋势，现代金融业主要现代中央银行体系、现代金融市场银行业、现代证券业、保险业、信托业以及现代金融法律体系和现代金融风险防范体系等。在继续深化首都金融体制改革的基础上，充分发挥首都金融业的优势与潜力，逐步完善首都金融业的宏调控控功能和金融功能。建立金融体系，是首都经济在２１世纪发展的需要，也     

Local government in Kyrghyzstan

The Kyrghyzstan government is making the difficult transition from a command economy under Communist Party control to a market economy within a pluralist political framework. For the time being, however, the reality of firm executive, hierarchical control persists. An Akim heads the government structure at provincial (oblast) and district (raion) levels and exercises considerable power; though formally answerable for his budget and socio-economic programme to the local parliament (kenesh), his accountability is virtually nil. Some attention is given to equalizing revenue among the provinces: Bishkek, the capital city, which has oblast status, and Chui oblast provide substantial financial underpinning for the rest of the country. In April 1995 the government accepted the main provisions of the EIPA Report prepared under the European Union's TACIS project ED/052, the effect of which should be to enhance the government's ability to promote development. President Akayev sees local administration, local self-government and privatization as important levers of reform.     

Alternative patterns of welfare state development: The case of public assistance in the Netherlands

Among the numerous studies of the development of welfare states, less attention has been paid to the smaller European democracies. In an attempt to address this problem, this article investigates the development of public assistance programmes in the Netherlands. The historical record shows that the development of the Dutch public assistance programme has been more contentious than the development of similar programmes in other countries. An explanation for political controversy surrounding Dutch public assistance focuses on the manifestation of corporatism in a policy area that involved private charity organisations, rather than labour and capital interests. The incorporation of private charities permitted them to slow state encroachment on their activities. Implications of the case for the study of corporatism in other countries are discussed.     

Globalization,government spending and taxation in the OECD

Abstract. This article assesses the impact of globalization on welfare state effort in the OECD countries. Globalization is defined in terms of total trade, imports from low wage economies, foreign direct investment, and financial market integration. Welfare effort is analyzed in terms both of public spending (and separately on social service provision and income transfer programs) and taxation (effective rates of capital taxation and the ratio of capital to labor and consumption taxes). Year–to–year increases in total trade and international financial openness in the past three decades have been associated with less government spending. In contrast, integration into global markets has not been associated either with reductions in capital tax rates, or with shifts in the burden of taxation from capital to consumption and labor income. Moreover, countries with greater inflows and outflows of foreign direct investment tend to tax capital more heavily.     

Information Symmetry in U.S. Financial Market Regulation: A Community of Practice

ABSTRACT

In the last decade, regulation of the financial markets in the United States has received significant attention. In particular, the formal structures responsible for regulating the financial markets have come under heavy criticism. While we may emphasize the role that formal structures play in controlling behavior, informal structures play an important role too. This study examines an informal structure in financial market regulation. Using social network and interview data, this study defines and investigates the role of a community of practice among leaders involved in regulating the financial markets. The analysis empirically defines the characteristics of this community of practice and reveals that this informal structure serves as an information symmetricizer in this regulatory setting. Implications of information symmetry include both positive and negative consequences.     

沿海十省(市)药品监管机构能力之比较研究

在构建社会主义和谐社会的当代中国,药品的安全性和有效性正日益引起人们的关注,而药品监管机构能力的建设与评估也开始成为社会监管领域的重要问题.通过回顾国内外已有的对政府能力概念和要素的研究,借用Nelissen的潜在能力和现实能力理论,结合世界银行2003年《世界发展报告》中对机构现实能力的要素分析和"行政储备"理论对机构潜在能力的要素分析,构建起药品监管机构能力的结构模型,并提出一套评估的指标体系.对数据进行标准化处理后,通过统计排序对沿海十省(市)药品监管机构能力进行评估和比较,进而利用最小二乘法(OLS)建立回归模型,分析潜在能力中的财力和人力因素对现实能力的贡献率.研究发现:地区财力对监管机构现实能力的影响较之人力因素要大,这在理论和实践中都可以得到证实;各地药品监管机构的潜在能力与现实能力之间存在较大差异,就那些现实机构能力较低的地区而言,现阶段有必要把工作重点放在医药企业生产经营行为的监管和农村地区医药监管基础设施的建设上;而对于潜在机构能力较低的地区来说,从"专业化、程序化和独立性"等方面提升机构整体的人力资源是当务之急.     

Capital mobility and monetary adjustment in Western Europe, 1973–1991

The western European experience is perhaps the best known instance of formal exchange rate management and attempted monetary integration on a regional basis. This article examines the role of heightened international capital mobility in accounting for this phenomenon. The behavior of ten industrial western European states during the period 1973–1991 is analyzed in this regard. These states vary in terms of size, membership in the European Community (now the European Union), participation in the exchange rate mechanism of the European Monetary System, and their revealed policy preferences. Nevertheless, all ten states eventually accommodated German monetary policy in an effort to stabilize regional exchange rates around the deutsche mark. The pursuit of increasingly similar policies by states differing in non-trivial ways suggests that, at least by the end of the research period, the external constraint imposed upon each of them as a result of international financial integration had become severe indeed. Recognition of this constraint provides a basis for understanding the nature of the policy choices facing European monetary authorities. Nevertheless, heightened international capital mobility (in isolation from other factors) is found to provide an incomplete explanation of certain key features of the European experience. Suggestions for further research are proposed with this in mind.     

Alternative measures for the financial condition of the multifamily housing stock

Abstract

Indicators of the financial condition of the multifamily housing stock can potentially inform several policy issues, such as the loss of affordable rental units, multifamily developers’ access to capital, and the emerging secondary mortgage market for multifamily properties. Several rules of thumb exist for assessing financial condition. This article uses the Residential Finance Survey to investigate whether it matters, from a practical standpoint, which one is employed. Specifically, we ascertain how five measures—loan‐to‐value, debt coverage, rent‐to‐value, net operating income—to‐value, and vacancy loss ratios—relate to each other and rank properties.

We found that Pearsonian correlations among the measures varied dramatically. Factor analysis produced two factors, one corresponding to a rent‐flow measure and the other to a debt‐burden measure. Spearman rank‐order correlations revealed that with one exception, measures yielded noticeably dissimilar financial condition rankings. We conclude that single‐dimensional measures of financial condition should not be used in isolation.     

Unraveling the Chinese Miracle: A Perspective of Interlinked Relational Contract

This paper is an attempt to provide an explanation for the socioeconomic foundation which underlies China’s economic miracle. As suggested by the theory of interlinked contract, the transition from a planning economy to a market economy is a multifaceted process. In terms of market dynamics interlinking markets replace specialized markets, while in terms of governance dynamics, interlinked contracts give way to formal contracts. A good match between the markets structure and contractual structure is key to the success of transition. In particular, some China-specific institutions, like TVEs, the financial system and the restructuring of SOEs can be better understood within this framework. Broadly, the whole reform package in China also is in good accordance with the spirit of interlinked contract. Wang thanks Project 985 of Fudan University, China Social Science Foundation Project (05CJL014), the MOE Project of Key Research Institute of Humanities and Social Sciences at Universities (07JJD790130 and Shanghai Leading Academic Discipline Project (B101) for financial support. Thanks also go to Sam Bowles, Sujian Guo, Peter Zeitz and anonymous referees for their helpful comments. Errors are solely ours.     

French Corporate Governance in the New Global Economy: Mechanisms of Change and Hybridisation within Models of Capitalism

This article analyses the implications of the internationalisation of capital markets, and the influx of Anglo-Saxon institutional investors, for the French model of capitalism. Its central contention is that the global convergence thesis misrepresents contemporary evolutions because it pays insufficient attention to mechanisms of change within models of capitalism. Secondly, framing analysis in terms of hybridisation and fragmentation of national models, rather than convergence, offers greater explanatory purchase over the French model, constitutes a more accurate characterisation, and helps avoid the 'convergence or persistence' impasse within models of capitalism analysis. In exploring French corporate governance, it emphasises the importance of specifying the role of institutional mechanisms as transmission belts of change as a precursor to an assessment of how far shifts in international political economic context bring about changes within French capitalism. Focusing on financial market regulation regime, new legislation in corporate governance and company law, and the market for corporate control as three key potential mechanisms of change, it finds that pre-existing norms and structures endure, mediating the nature of a national political economy's articulation with the international context. Hybridisation and recombination of capitalist institutions drawn from different models provide a far more persuasive account than convergence.     

Risk and Financial Armageddon in Ireland: The Politics of the Galway Tent

This article examines Ireland's financial crisis. Thus far explanation has focused on individual or collective administrative failure: the office(r) of financial regulation singularly failed to scrutinise the banks sufficiently: it was a matter of poor risk management. While this article would agree that the (mis)management of risk was important to how the crisis unfolded, I argue that an explanation of why the crisis emerged demands an altogether different focus. Put simply, after financial regulatory reform, a reconfiguration of risk in politics took place as the locus of decision‐making about financial risk shifted from the realm of the political/legal (Cabinet/Central Bank/Department of Finance) to the economic/legal (retail banks, shareholders/consumers). It was a critical development, one that mirrored events taking place in the UK, upon which Ireland drew experience, for now assessments about risk undertaken by the banks demanded that intervention could be justified only on an ascertainable risk, not a theoretical uncertainty (or spurious fear). The evidentiary bar for intervention was therefore raised, removing the precautionary instinct implicit in the prudential governance of Central Banks.     

Regulatory Competition and the Politics of Financial Market Reform in Britain and Japan

This article examines the impact that the internationalization of jnance has had on the regulation of domestic securities markets in Japan and Britain. In particular, it seeks to explain the apparent incompatibility of two distinct trends: deregulation (and state retreat) on the one hand, and increased regulation and state involvement in markets on the other.
Much of the literature about the efects of internationalization on domestic policymaking has drfjculty explaining these two distinct regulatory frends. First, there has been no uniform "competition in regulatory laxity." Second, the United States does not appear to have exerted hegemonic influence over outcomes. Finally, domestic-level explanations which deny the importance of systemic-level influences on domestic policy choices are unable to explain the similarity of policy choices undertaken by governments with very different regulatory traditions.
I argue instead that regulatory reforms have been undertaken primarily for the benefit of a particular set of private economic actors—mobile consumers of financial services, including both holders of liquid investment capital and large multinational borrowers. Internationalization has systematically strengthened their influence over the policymaking process by making "exit" from one political marketplace to another a more realistic and more potent bargaining strategy than the alternative of exercising "voice."     

Between workfare and enablement – The different paths to transformation of the welfare state: A comparative analysis of activating labour market policies

Abstract.  The concepts that address different paths to transformation of the welfare state as a 'workfare', an 'enabling' or an 'activating' state share the idea that traditional welfare policies, mostly aiming at decommodification, are more and more replaced by social policies emphasising (re-)commodification. Activating labour market policy therefore is supposed to play a central role within the paradigm shift of welfare state policies. It is understood to involve a mix of the enforcement of labour market participation, the conditioning of rights and growing obligations of the individual at one side, and an increase of services in order to promote employability and restore social equity at the other. In this article, the different perceptions of the workfare and the enabling state perspectives on the positive and negative aspects of activating policies are reconstructed as 'pure forms' in order to obtain theoretical standards against which the empirical cases of activating labour market policies in Denmark, the United Kingdom and Germany are characterised and compared. The actual reform path is described by a combination of two indicators: the strength of the workfare and the strength of the enabling elements of the activating labour market policies. The evidence on activating labour market reforms confirms that in both dimensions a move in the same direction is taking place, but without producing growing convergence. Different welfare state types keep on producing different mixes of workfare and enabling policies, leading to very different levels of decommodification and (re-)commodification. Thus, an ongoing divergence of policies also exists within the new paradigm of an activating labour market policy, although single countries seem to change their alignment to a particular welfare state type.     

BANKING ON THE PERIPHERY: Bolivia's Financial Reforms, 1985–1996

This article examines the sequencing of financial reform in LDCs in Bolivia. Bolivia undertook a dramatic stabilization program in 1985 and, over the next decade, steadily improved the oversight and regulation of domestic banks. I explain how these reforms proceed under three democratically elected administrations who each used political pacts to ensure legislative support for their agenda. At the international level, external shocks twice precipitated deeper banking reforms, but Bolivia's underdeveloped capital markets prevented the speculative attacks observed in other cases. The Bolivian experience demonstrates the potential for financial reform in the poorest of LDCs and the need for further research in similar cases.     

Economic discourse and the capitalist order

This paper uses the concepts of business model and financial ecosystem to analyse the relation between the US capital market and corporate business. Under a capital market double standard, from 1995 to 2000, new companies with digital prospects could recover their costs from the capital market; but, after the tech stock crash in 2000, all companies were required to generate profits from the product market. This encourages a blurring of old and new firm identities, because sectoral power is increasingly necessary to secure cost recovery. But this does not imply any return to business as usual when the financial ecosystem for new technology survives the crash and large-scale venture capital investment continues. From this point of view,the new economy illustrated, concretely, the determining role of finance in the broader processes of financialization.     

The impact of interest rate on the demand for credit in Ghana

This article investigates the impact of financial liberalization on the demand for credit in Ghana. It contributes by making suggestions pertaining to questions on the effectiveness of interest rate liberalization in driving private sector demand for credit both in the short and the long‐run, as well as the speed of adjustments to equilibrium after the implementation of the financial liberalization programme. The study results indicate that interest rate has no significant impact on the demand for credit both in the short‐run and long‐run. Moreover, inflation has a negative significant effect on the demand for credit in the short‐run. The results also suggest that about 66% of disequilibrium from the preceding year is corrected in the current year. However, these findings seem to indicates that the financial market in Ghana is not fully competitive. The oligopolistic and noncompetitive financial system may be attributable to the extreme minimum capital requirement and the emerging consolidation of commercial banks through government takeovers as well as the various credit rationing practices by banks aimed at reducing the risk of adverse selection and insolvency.