India backs blockchain but adoption will be cautious

2018 ◽  
Keyword(s):  
Asset Management ◽  
Trade Finance ◽  
Content Type ◽  
Customer Data ◽  
Finance Minister ◽  
Blockchain Technology ◽  
Reserve Bank ◽  
Asset Class ◽  
The Government ◽  
Foreign Exchanges

Subject Blockchain adoption in India. Significance On April 22 the Reserve Bank of India (RBI) issued a directive ordering all cryptocurrency accounts on Indian exchanges to close by July. Despite this, on May 16 Indian information technology giant Infosys, in collaboration with seven major banks, launched a blockchain-driven trade finance initiative. In his budget speech, Finance Minister Arun Jaitley said that the government will “explore …blockchain technology …for ushering in digital economy”. Impacts The ban on trading cryptocurrencies on Indian exchanges will drive investors to foreign exchanges rather than away from the asset class. The RBI ban on entities under its influence engaging in services relating to cryptocurrencies will slow blockchain adoption. Tests of blockchain in trade finance, 'know your customer' data and non-performing asset management will extend to other applications. Indian cities including Vizag in Andhra Pradesh are leading in adopting blockchain, supporting regional development.

The South African public service wage bill deadlock in 2021: living on the edge

2021 ◽  
Vol 11 (4) ◽  
pp. 1-15
Author(s):  
Marianne Matthee ◽  
Albert Wöcke
Keyword(s):  
Fiscal Policy ◽  
Learning Outcomes ◽  
South African ◽  
Public Service ◽  
Subject Area ◽  
The South ◽  
Content Type ◽  
Academic Level ◽  
Finance Minister ◽  
The Government

Subject area Macro-Economics. Study level/applicability Undergraduate and MBA. Case overview The COVID 19 pandemic-related restrictions devastated South Africa’s economy in 2020 and although the restrictions were generally less damaging than in 2020, the government had to budget for vaccinations and rebuild the economy. Public service unions had just announced that they were demanding an increase of 4% above inflation for their members and that they were preparing for a strike. They were bitter about the fact that the South African Government had withdrawn from the last year of a three-year wage agreement in February 2020 and their members had not received an increase for the two years. These demands and Finance Minister Mboweni’s response to them had to consider the structural and cyclical impact on the fiscus and economy. Expected learning outcomes The learning outcomes are as follows: understand the general objectives of fiscal policy and stakeholders’ interests; understand the tradeoffs in fiscal policy and the implications of taking a position; and make recommendations based on reasoned judgements about those recommendations. Complexity academic level Undergraduate and MBA level courses on Macro Economics. Supplementary materials Teaching notes are available for educators only. Subject code CSS 10: Public Sector Management.

Skin lands in Ghana and application of blockchain technology for acquisition and title registration

2020 ◽  
Vol 12 (2) ◽  
pp. 147-169 ◽  
Author(s):  
Kwabena Mintah ◽  
Kingsley Tetteh Baako ◽  
Godwin Kavaarpuo ◽  
Gideon Kwame Otchere
Keyword(s):  
Current System ◽  
Land Acquisition ◽  
Content Type ◽  
Record Keeping ◽  
Blockchain Technology ◽  
Title Registration ◽  
The Government ◽  
Customary Land ◽  
Ownership Of Land ◽  
Land Transactions

Purpose The land sector in Ghana, particularly skin lands acquisition and title registration are fraught with several issues including unreliable record-keeping systems and land encroachments. The paper explores the potential of blockchain application in skin lands acquisition and title registration in Ghana with the aim of developing a blockchain-enabled framework for land acquisition. The purpose of this paper is to use the framework as a tool towards solving some of the loopholes in the process that leads to numerous issues bedeviling the current system. Design/methodology/approach The paper adopts a systematic literature review approach fused with informal discussions with key informants and leverages on the researchers’ own experiences to conceptualize blockchain application in skin lands acquisition in Ghana. Findings Problems bedeviling skin lands acquisition and title registration emanated from the issuance of allocation notes, payment of kola money and use of a physical ledger to document land transactions. As a result, the developed framework was designed to respond to these issues and deal with the problems. As the proposed blockchain framework would be a public register, it was argued that information on all transactions on a specific parcel of land could be available to the public in real-time. This enhances transparency and possibly resolves the issue of encroachments and indeterminate land boundaries because stakeholders can determine rightful owners of land parcels before initiating transactions. Practical implications Practically, blockchain technology has the potential to deal with the numerous issues affecting the smooth operation of skin lands acquisition and title registration in Ghana. Once the enumerated issues are resolved, there will be certainty of title to and ownership of land and property to drive investments because lenders could more easily ascertain owners of land parcels that could be used as collateral for securing loans. Similarly, property developers and land purchasers could easily identify rightful owners for land transactions. The government would be able to identify owners for land and property taxation. Originality/value This paper contributes to the literature on blockchain and application to land acquisition and title registration with a focus on a specific customary land ownership system.

Power crisis to hamper Zambia development prospects

2015 ◽  
Keyword(s):  
Tax Avoidance ◽  
Hydroelectric Power ◽  
Fuel Price ◽  
Content Type ◽  
The Sustainable Development ◽  
Growth Environment ◽  
Finance Minister ◽  
Price Hike ◽  
Development Goals ◽  
The Government

Subject Outlook for Zambia's economy. Significance Finance Minister Alexander Chikwanda last month presented revisions to the 2015 budget. They reflected the cooling growth environment, lower-than-expected tax revenues and rising borrowing costs. Droughts have exacerbated these vulnerabilities by pressuring Zambia's hydroelectric power supplies. Economic prospects are weakened ahead of elections scheduled for September 2016. Impacts Riots that took place in the main tourist hub Livingstone over the fuel price hike could hit visitor numbers if repeated. Revenue woes will harden the government's stance on tax avoidance, raising tensions with miners. The government may use the Sustainable Development Goals summit to press for greater donor aid, citing its revenue crunch.

Zimbabwe faces uphill task normalising donor relations

2015 ◽  
Keyword(s):  
External Debt ◽  
Job Creation ◽  
Development Plan ◽  
Content Type ◽  
Finance Minister ◽  
Donor Relations ◽  
Labour Costs ◽  
The Government ◽  
Economic Outlook

Subject Zimbabwe economic outlook. Significance On November 26 Finance Minister Patrick Chinamasa presented the 2016 budget articulating the government's IMF-backed plan to clear the backlog of external debt arrears to international creditors. The aim is to normalise relations with Western donors after 15 years of isolation. The government faces a deepening employment crisis, an unfunded development plan and deflationary risks. Impacts The Labour Amendment Bill adopted in August will raise labour costs and discourage job creation. Some deals signed during Xi's visit such as funding for fibre optic broadband may improve long-term competitiveness. However, others such as an agreement for a new Chinese-built parliament will add to the debt load.

India’s remedy for bad debt may not bring relief

2017 ◽  
Keyword(s):  
Prime Minister ◽  
Banking System ◽  
Job Creation ◽  
Bank Credit ◽  
Content Type ◽  
Reserve Bank ◽  
Bankruptcy Code ◽  
The Government ◽  
Bad Debt ◽  
Reserve Bank Of India

Subject Implementation of India's new Insolvency and Bankruptcy Code. Significance Shrinking bank credit is hindering India’s ability to finance spending. The Reserve Bank of India (RBI) is relying on the recently instituted Insolvency and Bankruptcy Code (IBC) as the principal instrument to address the problem of stressed assets in the banking system. Impacts The government may accelerate plans to merge stronger and weaker PSBs. Indian corporates may increase their issue of bonds denominated in domestic currency. Prime Minister Narendra Modi will emphasise job creation rather than investment until the next election.

Zimbabwe's currency crisis may worsen

2018 ◽  
Keyword(s):  
World Bank ◽  
Foreign Currency ◽  
Foreign Exchange Rate ◽  
Content Type ◽  
The Public ◽  
Finance Minister ◽  
The World Bank ◽  
Reserve Bank ◽  
Money Transfers ◽  
Initial Uncertainty

Subject Zimbabwe cash crisis. Significance New Finance Minister Mthuli Ncube implemented a 2% tax on money transfers and unveiled other proposed reforms in early October. Initial uncertainty surrounding the new measures led to panic-buying of supplies, cash shortages and a subsequent clampdown on public protests. Following modifications, the new measures have been endorsed by local industry, the IMF and the World Bank -- but public mistrust lingers. Impacts Foreign currency shortages may worsen as exporters face rising costs without a market-based foreign exchange rate for converting earnings. The Reserve Bank will struggle to gain the trust of the public, government and investors amid recent corruption scandals. Wasteful spending, corruption and public-sector wages (which account for 90% of budget spending) will persist as major deficit drivers.

New Zealand COVID-19 fightback prospects are positive

2020 ◽  
Keyword(s):  
New Zealand ◽  
Political Parties ◽  
Interest Rates ◽  
Financial Market ◽  
Media Coverage ◽  
Market Liquidity ◽  
Content Type ◽  
Reserve Bank ◽  
Global Demand ◽  
The Government

Significance The government has locked the country down for four weeks and legislated to borrow up 52 million dollars (30.7 million US dollars), equivalent to 17% of GDP. The Reserve Bank of New Zealand (RBNZ) is using several monetary policy tools to meet its inflation and employment targets, keep interest rates low and support financial market liquidity. Impacts Tourism, the largest export-earner, and high-earners logging and education, will suffer. Dairy, meat and horticultural exports will be shielded by continuing global demand, aided by a weak New Zealand dollar. The country heads into the COVID-19 crisis with low debt-to-GDP, but debt taken out now will take a future toll. Opposition and minor political parties will get reduced media coverage, while the September general election may be delayed.

Economic crisis will sustain unrest in Zimbabwe

2016 ◽  
Keyword(s):  
South African ◽  
Economic Crisis ◽  
Credit Rating ◽  
Civil Servants ◽  
Content Type ◽  
High Unemployment ◽  
Finance Minister ◽  
Fund Development ◽  
The Government ◽  
Sovereign Credit Rating

Significance Discontent over President Robert Mugabe's mismanagement of the economy is deepening, particularly over high unemployment and severe cash shortages, which have caused the government to delay paying civil servants' salaries. Impacts Pretoria's demands that Harare drop its restrictions on South African imports will likely increase bilateral tensions. Smugglers will take advantage of the region's porous borders to circumvent these rules, eg by routing goods via Mozambique. The mines and minerals amendment bill, which requires mining firms to list on the local bourse, will likely deter investment. Tensions between Finance Minister Patrick Chinamasa and leftist ministers could result in further policy reversals. Plans to gain a sovereign credit rating and issue Eurobonds to fund development will remain unrealised, at least for several years.

South Africa's Mboweni will aid Ramaphosa reform push

2018 ◽  
Keyword(s):  
South African ◽  
Credit Rating ◽  
Short Term ◽  
Content Type ◽  
Rating Agencies ◽  
Reserve Bank ◽  
Freedom Fighters ◽  
Left And Right ◽  
The Government

Significance A former South African Reserve Bank (SARB) governor and minister of labour, Mboweni faces a crucial first few weeks in his new post as the government attempts to placate rating agencies and engineer an economic turnaround. Mboweni’s initial moves may be determined by Moody’s credit rating review expected today. Impacts In the short term, Mboweni’s appointment will be a boost for Ramaphosa’s bid for fiscal consolidation and growth. In the medium-to-long term, Mboweni will likely prove a more polarising figure inside the ANC than Nene. Allegations linking the Economic Freedom Fighters with a major banking scandal could give Mboweni and the ANC an early political 'win'. Mboweni's previous social media utterances could be further exploited by opponents, both left and right, in the months ahead.

India’s cryptocurrency boom faces policy uncertainty

2021 ◽  
Keyword(s):  
United States ◽  
Money Laundering ◽  
The United States ◽  
Policy Uncertainty ◽  
Content Type ◽  
Digital Currency ◽  
The United Kingdom ◽  
Reserve Bank ◽  
The Government ◽  
Reserve Bank Of India

Significance Investments in cryptocurrencies in India grew from about USD923mn in April 2020 to nearly USD6.6bn in May 2021, according to industry estimates. More than 15 million Indians are reportedly buying and selling cryptocurrencies, placing the country closer in this regard to the United States, which has 23 million digital currency traders, and ahead of the United Kingdom with 2.3 million. Impacts The government is committed to having a digital currency issued by the Reserve Bank of India. Curbing money laundering and illicit activities will become harder as crypto trading proliferates. Cryptocurrencies will draw investors, especially younger ones, away from traditional safe assets such as gold.

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