Political Capital: Mexican Financial Policy under Salinas

1998 ◽  
Vol 51 (1) ◽  
pp. 36-66 ◽  
Author(s):  
Timothy P. Kessler
Keyword(s):  
Interest Rates ◽  
Political Process ◽  
Economic Benefits ◽  
Financial Policy ◽  
Financial Policies ◽  
Degree Of Protection ◽  
Policy Making Process ◽  
The Government ◽  
High Degree ◽  
Exchange Rate Intervention

Market reform is advocated in developing countries to improve economic efficiency and prevent privileged groups from obtaining rents from the policy-making process. Yet this prescription fails to address the complex political process that governments are likely to confront when moving toward the market. This study shows how political considerations during President Salinas's administration distorted economic reform in Mexico.During the 1990s Mexican finance policy contradicted the government's declared neoliberal principles. While the banks were reprivatized and deregulated, they were also given a high degree of protection from competition, enabling the new owners to charge excessive interest rates. In addition, the government artificially inflated the value of the currency through exchange-rate intervention. These contradictory policies are best understood as a coherent political response to the electoral vulnerability of the ruling party (PRl) at the end of the 1980s. When viable political opposition threatened the PRl's ability to maintain power, it responded by using financial policies to distribute economic benefits to social groups, particularly business, the middle class, and the poor, whose support was critical for electoral victory.

CARNIVAL POLITICAL TECHNOLOGIES: MASKS OF LOCAL AUTHORITIES IN MODERN RUSSIA

2021 ◽  
Vol 16 (3) ◽  
pp. 53-68
Author(s):  
A.V. SKIPERSKIKH ◽  
Keyword(s):  
Political Process ◽  
Political Class ◽  
Current State ◽  
Cultural Specificity ◽  
The Russian Federation ◽  
The Government ◽  
Social Organism ◽  
High Degree ◽  
Game Forms ◽  
Positive Effect

The purpose of the research is to present how the carnival element in the regional policy is associated with the legitimating of power. Also made of the current state of the regional political process in some constituent entities of the Russian Federation, characterized by a high degree of carnivalization. As a result, the importance of the practices of the regional elite, resorting to game forms of their own positioning. The legitimacy of the regional power to depend on festive discourse. A routine political process in the constituent entities of the Russia does not evoke public emotions that have a positive effect on the legitimation of power. The demand for the politics of spectacle is also present in municipal political practices in a very dangerous epoch of COVID-19. A social organism that needs emotions, as well as control, does not experience serious transformations. In society penchant for spectacle, as well as the political class in the production of carnival events, there are deep historical roots, as well as the cultural specificity of a particular region. The points out that in the regional political process one can increasingly see accents on festivals. So, the government solves two important problems: the first one is a public request for a show, it is resolved in conditions of a rather unpleasant and unpromising accumulation of negative for the authorities due to the deterioration of the socio-economic situation in general, the second one is the production of the play solves the issues of legitimation regional and municipal authorities.

Transformation of the Ecuadorian financial system: regulation and response

2015 ◽  
Vol 23 (1) ◽  
pp. 84-102 ◽  
Author(s):  
Luisa Ana Unda ◽  
Julie Margret
Keyword(s):  
Interest Rates ◽  
Development Strategy ◽  
Initial Conditions ◽  
Political Process ◽  
Banking System ◽  
Financial System ◽  
Reform Process ◽  
Motivating Factors ◽  
Content Type ◽  
The Government

Purpose – The aim of this study is to analyse the transformation of the Ecuadorian financial system using the regulatory dialectic approach (Kane, 1977). This research examines the initial conditions and motivating factors of the reform process, as well as the interplay between government and bankers during the period 2007-2012. Design/methodology/approach – Kane’s regulatory dialectic suggests that regulation of financial institutions is a series of cyclical interactions between opposing political and economic forces. Three main stages are identified: thesis (measures and regulatory actions), antithesis (avoidance/lobby against those reforms) and synthesis (adaptive reregulation resulting from the interaction between interest groups). Findings – Since 2007, the government focused on regulating interest rates, developing a liquidity fund for banking emergencies, increasing taxation and restricting international capital flows. These government initiatives took place against a background of conflicting interests. Private bankers opposed the majority regarding them as burdensome new rules, rather than enlightened reforms. Publicly, these reforms as intended by the government were seemingly supported. Finally through the political process, they were approved. To date, these reforms have strengthened the financial system, produced encouraging social policy results and placed the financial sector to serve the government’s development strategy. Originality/value – Using Kane’s notion of regulatory dialectic, we explain the process of financial reform in Ecuador as part of a cyclical interaction between opposing forces. Drawing on this framework enabled insight into the nature of government intervention. Hence, we show how that intervention affected the growth, development and structure of the banking system.

scholarly journals Conceptual approaches to economic growth: the need to transform national financial policy imperatives

2020 ◽  
Vol 18 (4) ◽  
pp. 1-10
Author(s):  
Нanna Telnova
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Government Support ◽  
Financial Policy ◽  
Real Economy ◽  
Financial Policies ◽  
Financial Architecture ◽  
The Face ◽  
The Government

Turbulent global processes, driven by the slowdown in the economy growing, including developed countries, require further understanding of the role of financial factors, the heterogeneous impact of which is conditioned by the globalization of financial markets. The analysis of existing conceptual approaches to economic growth allows identifying bottlenecks of the national financial architecture and specifying positive aspects of successful development. The study proved the need to generalize the provisions of the Keynesian and neo-liberal theory (avoiding unipolar compositions financial architecture), supplementing them with recommendations for implementing financial dirigisme in the face of economic shocks. Given the need to transform national financial policies, the focus is on creating conditions for development of the real economy, as a main source of economic growth, through the government support.

Political Opposition to the Government of Allende

1972 ◽  
Vol 7 (3) ◽  
pp. 327-350 ◽  
Author(s):  
H. Zemelman ◽  
Patricio Leon
Keyword(s):  
Political Process ◽  
Marxist Theory ◽  
Social Forces ◽  
Democratic Tradition ◽  
The Social ◽  
Institutional Structures ◽  
The Face ◽  
The Government ◽  
High Degree ◽  
The Impact

THE ANALYSIS OF THE PRESENT CHILEAN POLITICAL PROCESS MAY serve to underline some features of the Marxist theory of the state and of the relationship between social classes and institutional structures. Few countries offer such a clear example as Chile of the impact of the elements forming the ideological superstructure on the social and economic mechanisms which operate at the level of the infrastructure. Its long, bourgeois democratic tradition has led to the accumulation of many juridical and institutional elements, to which formal respect has been given, and which have built up a system of domination thanks to the acquiescence of other social sectors. The achievement of a high degree of consensus had been the other side of the face of a weak bourgeoisie, and in the blind logic of weak dominant classes, they have transformed their superstructure into their Achilles's heel. For the Chilean political process has shown how political power can transform itself into an instrument which will destroy the unity of the institutionalized power structure of the bourgeois state, when it is controlled by an alliance of social forces which escape the influence of the dominant class and its allies.

scholarly journals Kebijakan Keuangan Dan Siklus Pelaksanaan Anggaran Belanja Pemerintah Daerah Untuk Penanganan Pandemi Covid-19

Jurnalku ◽  
2021 ◽  
Vol 1 (4) ◽  
pp. 353-368
Author(s):  
Iklima Rahmadian Adi Wibowo ◽  
Iskandar
Keyword(s):  
Data Collection ◽  
Interactive Methods ◽  
Financial Policy ◽  
Regional Government ◽  
Government Budget ◽  
Literature Study ◽  
Financial Policies ◽  
Regional Finance ◽  
Emergency Situations ◽  
The Government

Kondisi darurat yang diakibatkan oleh pandemi Covid-19 menuntut perlunya respon pemerintah, baik aspek kebijakan keuangan maupun pelaksanaannya secara cepat. Penelitian ini bertujuan untuk mengidentifikasi penerapan kebijakan keuangan dalam penanganan Covid-19 dan melakukan tinjauan terhadap siklus pelaksanaan anggaran belanja Pemerintah Daerah Kabupaten “ABC” untuk penanganan pandemi Covid-19. Pengumpulan data dilakukan melalui studi kepustakaan dan metode studi lapangan berupa wawancara serta observasi dalam pengumpulan data pada Badan Keuangan Daerah Kabupaten “ABC” untuk kemudian diolah dan dianalisis secara kualitatif dengan metode interaktif. Hasil penelitian menunjukkan bahwa kebijakan keuangan Pemerintah Daerah Kabupaten “ABC” terhadap pandemi Covid-19 terdiri atas percepatan refocusing/realokasi anggaran, dan rasionalisasi anggaran pendapatan, serta optimalisasi penggunaan belanja tidak terduga yang dianggarkan terpusat pada SKPKD. Rangkaian aktivitas yang dilakukan dalam siklus pelaksanaan anggarannya melibatkan PPKD dan pengelola kegiatan dan/atau keuangan pada SKPD yang terkait dengan penangan Covid-19. Tahapan dalam siklus hampir sama dengan proses belanja non penanganan Covid-19, tetapi berbeda dalam hal penyiapan penyesuaian dokumen pelaksanaan, dan percepatan dalam pencairan dana. Hasil penelitian dapat menjadi pembelajaran dalam mengantisipasi keadaan yang mendesak/darurat. The emergency conditions caused by the Covid-19 pandemic require the government to respond, both in terms of financial policy and its implementation quickly. This study aims to identify the application of financial policies in handling Covid-19 and to review the implementation cycle of the "ABC" Regency Regional Government budget for handling the Covid-19 pandemic. Data collection was carried out through literature study and field study methods in the form of interviews and observations in data collection at the "ABC" Regency Regional Finance Agency to then be processed and analyzed qualitatively with interactive methods. The results showed that the "ABC" District Government's financial policy towards the Covid-19 pandemic consisted of accelerating budget refocusing/reallocation, and rationalizing the revenue budget, as well as optimizing the use of unexpected expenditures that were budgeted centered on SKPKD. The series of activities carried out in the budget implementation cycle involve PPKD and activity and/or financial managers at SKPD related to Covid-19 handling. The stages in the cycle are almost the same as the non-Covid-19 spending process, but differ in terms of preparing the adjustment of implementation documents, and in accelerating the disbursement of funds. The results of the research can be a lesson in anticipating urgent/emergency situations.

scholarly journals Indian Financial Sector Reforms: A Corporate Perspective

1998 ◽  
Vol 23 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Jayanth R Varma
Keyword(s):  
Exchange Rates ◽  
Corporate Finance ◽  
Interest Rates ◽  
Financial Liberalization ◽  
Financial Sector ◽  
Financial Policies ◽  
Sector Reform ◽  
Slow Pace ◽  
Financial Sector Reform ◽  
The Government

Until the early 90s⁄ corporate finance managers in India were given very little freedom in the choice of key financial policies as the government regulated the pricing of debt and equity instruments and directed the flow of credit. Financial sector reform over the last six years has exposed managers to complex financial choices amidst increased volatility of interest rates and exchange rates, and made them accountable to an increasingly competitive financial marketplace. Nevertheless, the slow pace of financial liberalization so far has given Indian corporates the luxury of learning slowly and adapting gradually. Gradualism has also meant that there is a large unfinished agenda of financial sector reforms. According to Jayanth Varma⁄ Indian companies should now prepare themselves for further changes that lie ahead. The East Asian crisis is a warning for the Indian corporate sector to pursue more prudent and sustainable financial policies.

scholarly journals Paket Kebijakan Ekonomi untuk Mengerakan UKM di Tingkat Desa

2016 ◽  
Vol 4 (2) ◽  
pp. 40-55
Author(s):  
Ahok Alpa Beta
Keyword(s):  
Economic Policy ◽  
Economic Benefits ◽  
Evaluation Policy ◽  
Policy Makers ◽  
Community Or ◽  
Expected Performance ◽  
Policy Making Process ◽  
The Government ◽  
Performance Results ◽  
Two Sides

The government has announced tujuanya Economic Policy Package is to facilitate the business sector in obtaining capital loans and expedite matters pembankkan issuance of land certificates. This is the strategy most perfect economic policy today. All policies certainly have weaknesses and strengths of each. The benefits of these regulations can be viewed from two sides, from the government side as regulators and from the community or in this case SMEs. For the government, which has disbursed KUR loan through Community or SMEs provide protection to the wider community through processes that are easy and quick. SMEs should provide social and economic benefits after the receiving credit business loans or called KUR. Once a policy or regulation is not in line with expectations, the policy must be evaluated for their evaluation will be obtained feedback related to policy mismatch with the expected performance results. Thus, the evaluation helps policy makers at the stage of assessment of policies against the policy making process. Evaluation policy does not only produce conclusions about how far the problem has been resolved, but give input on the clarification and critique of the values ​​underlying the policy, assist in the adjustment and re-formulation of the problem.

Interpreting the Reagan Deficits

2017 ◽  
Author(s):  
Thomas J. Sargent
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Reagan Administration ◽  
Federal Budget ◽  
Ronald Reagan ◽  
Government Budget ◽  
Government Deficits ◽  
Tax Smoothing ◽  
The Government ◽  
Monetary And Fiscal Policy

This chapter examines the large net-of-interest deficits in the U.S. federal budget that have marked the administration of Ronald Reagan. It explains the fiscal and monetary actions observed during the Reagan administration as reflecting the optimal decisions of government policymakers. The discussion is based on an equation whose validity is granted by all competing theories of macroeconomics: the intertemporal government budget constraint. The chapter first considers the government budget balance and the optimal tax smoothing model of Robert Barro before analyzing monetary and fiscal policy during the Reagan years: a string of large annual net-of-interest government deficits accompanied by a monetary policy stance that has been tight, especially before February 1985, and even more so before August 1982. Indicators of tight monetary policy are high real interest rates on government debt and pretax yields that exceed the rate of economic growth.

Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

scholarly journals An Investigation of the Socio-Economic Benefits of Small-Scale Gold Mining in Malawi

Mining ◽  
2021 ◽  
Vol 1 (1) ◽  
pp. 19-34
Author(s):  
Tiyamike Haundi ◽  
Gift Tsokonombwe ◽  
Steven Ghambi ◽  
Theresa Mkandawire ◽  
Ansley Kasambara
Keyword(s):  
Gold Mining ◽  
Indigenous Communities ◽  
Economic Benefits ◽  
Gold Rush ◽  
Basic Knowledge ◽  
Small Scale ◽  
Low Literacy ◽  
Policy Makers ◽  
Key Stakeholders ◽  
The Government

In the recent years, there has been a surge in artisanal and small-scale gold mining (ASGM) in various districts of Malawi. Reports of a gold rush have emerged in various districts, including Mangochi, Lilongwe, Balaka, and lately in Kasungu. There has been persistence by many indigenous communities participating in ASGM activities, yet little is being done by the government to formalize and support the sub-sector. The purpose of this study was to investigate the benefits of artisanal small-scale gold mining in Malawi and expose the shortfalls so that key stakeholders and policy makers are well informed. A quantitative approach which used semi-structured questionnaires was used and the data was analyzed using Microsoft excel and Statistical Packages for the Social Sciences (SPSS). The study shows that ASGM is characterized by people with low literacy levels, who use traditional tools (low-tech) and use methods fueled by lack of capital, and deficiency of basic knowledge of mining and geology. The study found that the government could achieve substantial socio-economic development from the sector by: (1) revising the current artisanal and small-scale mining (ASM) legislation so that it embraces the customary practices whilst safeguarding the environment and improving the tax collection base; (2) providing support in form of mining related training and education to these communities; (3) leading in transfer of modern technologies for improved extraction; (4) supporting ASM cooperatives in securing credit facilities from financial institutions; and (5) closing the existing knowledge gap for ASM related issues through introduction of mining desk officers in district councils.

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