Implications of WTO Membership for China's State-owned Banks and the Management of Public Finances: Issues and strategies

WTO membership will dramatically change the environment within which China's financial institutions operate. It increases the urgency of many reforms, including the re-capitalization of state-owned commercial banks and the establishment of a healthy credit culture. The severe under-capitalization of state banks and many state enterprises is part of a growing domestic debt problem that cannot be solved through normal fiscal policy adjustments. It will require the sale or securitization of state assets on a much larger scale than has been undertaken so far. The approach that was taken by the government's four Asset Management Companies to non-performing loan clean-up in 1999 and 2000 was flawed and should not be repeated. State banks should play a larger role in absorbing their own accumulated losses. China should leverage its external financial strength for domestic financial clean up. If the balance of payments remains strong, a mild appreciation of the nominal exchange rate--when the risk of deflation has passed--may serve China's interest. A large and growing proportion of state assets is held in the form of non-tradable shares in partially privatized state companies. To protect state solvency, many of these shares will have to be made tradable and sold in the next 5-10 years. A further strengthening of the fiscal system, along with rapid development of domestic capital markets is essential. Breaking up some or all of the four large state-owned commercial banks into smaller units may facilitate their restructuring and eventual privatization.     

On Sen's Liberal Paradox and its Reception within Political Theory and Welfare Economics

In this article, Amartya Sen's seminal proof of the impossibility of a Paretian liberal is briefly reviewed. I then discuss the reception of this alleged 'liberal paradox' within the fields of political theory and welfare economics. In particular, I examine the criticisms made by Brian Barry, and their wider implications for the field of social choice theory. It is argued that the various criticisms made on Sen's characterisation of liberty are fundamental, and that Sen's subsequent defence of his position is unconvincing. Moreover, there remain some wider doubts as to the usefulness of social choice theory's SWF approach to individual rights and freedoms.     

ON THE SCOPE FOR THE EUROPEAN COMMISSION'S 2006 FINING GUIDELINES UNDERTHE LEGAL MAXIMUM FINE

By relating antitrust fines explicitly to the value of affectedcommerce, the 2006 fining guidelines reaffirm the European Commission'scommitment to deterring competition law infringement. We showthat the legal maximum fine specified in Article 23(2) of Regulation1/2003 seriously constrains the Commission in reaching thisobjective, however. The maximum fine will be binding the calculatedfine for low ratios of affected EEA commerce over total worldwideturnover. Therefore, there is little scope for the Commissionto apply its new fining method effectively.     

Older adults in secure mental health care: health,social wellbeing and security needs measured with HoNOS-secure across different age groups

The number of older offenders is rapidly increasing in the United Kingdom and some older adults with mental health issues are referred to secure care services. It is therefore important to understand their unique characteristics in order to develop services based on their individual needs rather than chronological age. This study explored wellbeing and security needs of younger and older patients admitted to a secure psychiatric hospital. HoNOS-secure assessment at admission and discharge was extracted and used to build an anonymous data-set. Group comparison and score change during admission were conducted for six age groups: 18–24, 25–34, 35–44, 45–54, 55–64 and 65+. Younger patients improved on most measures whereas older patients aged 55–65+ showed little improvement or deterioration over time. This finding suggests that the subscales are sensitive to age difference although the needs measured by HoNOS-secure are less likely to inform the decision to discharge.