Liberia's next president faces mounting expectations

2017 ◽  
Keyword(s):  
Financial Institutions ◽  
Foreign Investment ◽  
Government Expenditure ◽  
Public Spending ◽  
International Financial Institutions ◽  
Content Type ◽  
Capital Spending ◽  
Election Violence ◽  
Poor Infrastructure

Significance Whoever succeeds outgoing President Ellen Johnson Sirleaf will have to tackle widespread state corruption, cut recurrent government expenditure and boost infrastructure spending to spur economic growth. Impacts Post-election violence could spike if the opposition loses and accuses a partial electoral commission of manipulation. Low capital spending and poor infrastructure will remain a persistent deterrence to long-term private and foreign investment. International financial institutions will pressure the new government to cut public spending. Further delays to a proposed constitutional referendum are likely.

Marketing dispossession

2017 ◽  
Vol 35 (1) ◽  
pp. 112-127 ◽  
Author(s):  
Paul Sergius Koku ◽  
Hannah Emma Acquaye
Keyword(s):  
Mental Health ◽  
Financial Institutions ◽  
Mental State ◽  
Well Being ◽  
Small Sample ◽  
Real Property ◽  
Content Type ◽  
Alternative Approach ◽  
Hard Times

Purpose The purpose of this paper is to examine the mental state and the disposition of those who have fallen on hard times during the recent financial crisis and have had their homes foreclosed on or their automobiles repossessed. It also proposes an alternative process for dispossessing individuals that preserves the mental health of such individuals and the banks’ reputation. Design/methodology/approach This study uses the hermeneutics approach to analyze the predicament of those whose homes have been foreclosed on or whose properties have been repossessed by financial institutions to better understand their predicament. Findings Those whose homes have been foreclosed on or whose properties have been repossessed by financial institutions are traumatized. They feel victimized, bitter, helpless and hopeless and have poor mental state. The study draws on theories in counseling psychology to propose an alternative approach to making loans that take long time to be repaid (long-term loans), and for repossessing personal properties such as automobiles and for foreclosing on real property (homes). Research limitations/implications As a qualitative study based on a small sample, the findings of the study are limited to only those who have been studied. A further study that leads to a generalized result will be useful. Practical implications The study develops a practical framework that could be useful to financial institutions in making long-term loans and to foreclose on delinquent loans (i.e. to dispossess individuals). Social implications The proposed strategy, if implemented, could have a significant positive impact on the mental well-being of those who have fallen on financial hard times. Originality/value To the best of the knowledge, this is the first marketing paper that has explored the mental health of those who have defaulted on loans, and has proposed an alternative approach to making long-term loans that not only preserves the mental health of banks’ customers, but also protects the reputation and market share of banks.

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

Bankruptcy law challenges the United Arab Emirates

2017 ◽  
Keyword(s):  
United Arab Emirates ◽  
Financial Institutions ◽  
Foreign Investment ◽  
Direct Investment ◽  
Arab Countries ◽  
Bankruptcy Law ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Oil Sector ◽  
The 2008 Financial Crisis

Subject Legislation on insolvency in the United Arab Emirates. Significance The long-awaited federal bankruptcy law came into effect on December 29, three months after its publication. The 2008 financial crisis highlighted the need to adopt comprehensive insolvency legislation, after many debtors fled the country to avoid penal consequences -- including time in prison -- when their businesses crashed. However, despite low oil prices it was not until 2016 that steps to formalise the bankruptcy law were expedited, with the aim of promoting foreign investment and business development. Impacts Foreign direct investment in the non-oil sector will increase. Some financial institutions could be slow to take account of the new legislation. Other Gulf Arab countries may look to the UAE bankruptcy law as a model.

Kuwait's politics will stall economic reforms

2016 ◽  
Keyword(s):  
Extended Period ◽  
Economic Reforms ◽  
Small Population ◽  
Fiscal Sustainability ◽  
Content Type ◽  
Reform Plan ◽  
Capital Spending ◽  
The Government ◽  
International Assets

Significance With huge financial reserves, low public debt and a small population, Kuwait is one of the Gulf Cooperation Council (GCC) states best equipped to ride out an extended period of low oil prices. However, with the country registering its first budget deficit in 16 years, concerns about Kuwait's long-term fiscal sustainability have become more pressing, and the government has introduced a reform plan aimed at restructuring the economy. Impacts The government will step up capital spending, launching as many projects as possible before the 2017 election. The private sector is likely to face increased financial costs, eg, corporate taxes, higher utilities charges and employment of nationals. Kuwait will become further integrated into the international bond market, and rely more on its international assets as a source of income. Political tensions could rise ahead of the 2017 poll if the government takes more measures to reduce opposition electoral prospects. Kuwait will lag behind other GCC states in its progress on economic reforms.

Iran gas can diversify European supplies in long term

2015 ◽  
Keyword(s):  
United States ◽  
Foreign Investment ◽  
The United States ◽  
Gas Production ◽  
Gas Industry ◽  
Content Type ◽  
The Third ◽  
Un Security Council ◽  
To Come

Significance The deal reached between Iran and the P5+1 negotiating group (UN Security Council permanent members plus Germany) on July 14 promises to end most sanctions on the country, in return for suspension and monitoring of its nuclear programme. If ratified by all parties, it will create opportunities for an expansion of Iran's gas production and exports. Iran is the holder of the world's largest gas reserves, according to BP estimates. It is also the third-largest producer (after the United States and Russia, and probably having overtaken Qatar during 2015), and the fourth-largest consumer. Impacts Iran could increase gas exports by advancing projects stalled by sanctions, although most of these will take some years to come to fruition. Iran would seek to attract foreign investment into its gas industry to increase production and exports in the longer term. If this occurs, Iran will compete with other gas exporters, particularly Russia, into the 2020s.

Oreskovic government in Croatia may prove short-lived

2016 ◽  
Keyword(s):  
Political Instability ◽  
Public Spending ◽  
Economic Restructuring ◽  
Right Wing ◽  
Case Scenario ◽  
Content Type ◽  
Growth Prospects ◽  
The Government ◽  
Social Conservatism

Significance After protracted negotiations, Croatia, at last, has a government, comprising the conservative Patriotic Coalition -- the Croatian Democratic Union (HDZ), plus a few small parties -- and the centre-right Bridge ('Most') of Independent Lists. The government is unusual because it is led by a non-partisan figure, Tihomir Oreskovic, a businessman who grew up in Canada and has only a shaky grasp of the Croatian language. In a best-case scenario, the government could deliver important and necessary reforms. Impacts Efforts to cut public spending will reduce the risk of a damaging financing crisis. A programme of economic restructuring will boost Croatia's long-term growth prospects. The election of two right-wing parties will consolidate the drift towards social conservatism. Tensions in the coalition will perpetuate political instability and could precipitate new elections.

Saudi economic reform will be gradual

2016 ◽  
Keyword(s):  
Business Community ◽  
Special Treatment ◽  
Asset Sales ◽  
Royal Family ◽  
Content Type ◽  
Capital Spending ◽  
The Government ◽  
Crown Prince ◽  
Spending Cuts

Significance The government has recently taken some modest steps to rein in the budget deficit, including cuts in energy subsidies, and has promised to improve disclosure of its fiscal performance, but is preparing further measures to put the economy on a sustainable long-term footing. Impacts Subsidy cuts and the prospect of VAT could cause popular resentment because they will affect ordinary citizens more severely than the elite. These measures will widen the income gap and, in the longer run, could increase pressure for more accountable forms of government. Land and other asset sales could generate controversy if businesses associated with the royal family are receiving special treatment. Capital spending cuts will create anger among the business community if projects linked to the deputy crown prince are protected. A prolonged fiscal squeeze could stoke tensions within the royal family and damage the credibility of the deputy crown prince.

Russia's budget reflects caution on future spending

2016 ◽  
Keyword(s):  
Budget Deficit ◽  
Public Spending ◽  
Oil Price ◽  
Economic Recovery ◽  
Education Spending ◽  
Monetary Policies ◽  
Content Type ◽  
Low Levels ◽  
Spending Cuts

Significance A three-year budget cycle is intended to create predictability after a year in which the initial budget had to be revised as the oil price outlook grew gloomier. Spending cuts are envisaged to continue beyond 2017 as revenue predictions are modest amid low rates of economic growth, and the objective is to cut the budget deficit progressively. Impacts The diversion of reserve money to sustain public spending will undermine economic modernisation programmes. Low levels of health and education spending will harm human capital in the medium-to-long term. The Central Bank is unlikely to relax monetary policies significantly prior to 2018, and then only if inflation recedes to the targeted 4%. Tight monetary policy will restrict credit growth and thus economic recovery.

Azerbaijan's stability will trump diversification

2015 ◽  
Keyword(s):  
Value Added ◽  
Negative Consequences ◽  
Content Type ◽  
Strategic Objective ◽  
Board Of Governors ◽  
Capital Spending ◽  
Oil And Natural Gas ◽  
The Government ◽  
Remittance Flows

Subject Economic diversification in Azerbaijan. Significance Speaking at the Asian Development Bank's annual board of governors meeting in Baku in early May, President Ilham Aliyev said low world oil prices had led the government to implement across-the-board cost-cutting measures to balance the budget. While Azerbaijan has always sought to reduce its dependence on the energy sector, both oil and natural gas exports will continue to be the backbone of economic growth, he declared. Diversifying the national economy away from hydrocarbons towards higher value-added industries and services remains the government's long-term key priority. However, it faces multiple structural challenges. Impacts Azerbaijan's exposure to the neighbouring Russian market will be below average. However, it will continue to be affected by its economic crisis, particularly in terms of migrant remittance flows. The government's capital spending cuts will have direct negative consequences for the downstream sector, regarded as a strategic objective.

Australian push on India ties likely, but with hurdles

2018 ◽  
Keyword(s):  
Free Trade ◽  
Foreign Investment ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Australian Government ◽  
Content Type ◽  
Economic Relations ◽  
Diplomatic Relationship ◽  
Business Structure

Subject Australian policy thinking on India. Significance A blueprint submitted to the Australian government in April, titled 'An India Economic Strategy to 2035', calls for increased export shipments and investment in India through to 2035 and a closer strategic and diplomatic relationship. Impacts Economic relations will evolve slowly, as India is still developing a business structure attractive to foreign investment. Talks on a free trade agreement are unlikely to progress until India agrees to lower market barriers, especially high tariffs. India’s 700,000-strong diaspora in Australia will play a long-term role in connecting markets in the two countries.

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