China COVID-19 outbreak will weaken Xi

2020 ◽  
Keyword(s):  
Public Health ◽  
Economic Growth ◽  
Political Stability ◽  
The Political ◽  
Content Type ◽  
Security Services ◽  
State Security ◽  
Political Impact ◽  
Negative Effect ◽  
Intense Activity

Subject The political impact of the coronavirus outbreak in China. Significance The extreme measures the Communist Party has taken in response to the COVID-19 outbreak are partly designed to instill faith in its governing capacity among ordinary citizens, but inertia and slow decision-making at every level have revealed a gap between official rhetoric and reality. Impacts China will increasingly treat public health as a matter of state security; regulation and more involvement by senior officials will follow. The main risk to political stability is indirect, via the outbreak’s negative effect economic growth and employment. Despite signs of public outrage, protests are unlikely due to the risk of contamination and intense activity by the security services.

scholarly journals Impact of Political Instability on Economic Growth in CEE Countries

2021 ◽  
Vol 17 (2) ◽  
pp. 582-592
Author(s):  
Arjona Çela ◽  
Eglantina Hysa
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Stability Index ◽  
Chief Executive ◽  
Political Stability ◽  
The Political ◽  
Fixed Effects Model ◽  
Negative Effect

сPolitical instability is often considered to have a negative influence on economic growth. Hence, the study aims to examine whether instability of the political environment (measured by the political stability in- dex and duration of the chief executive in the office) significantly influences economic growth in Central and Eastern European (CEE) countries. The methodology used is a fixed effects model for panel data analysis where the dependent variable is the real growth of gross domestic product (GDP) per capita. The data covers the period from 2006 to 2016 for 13 CEE countries. Additionally, the study considered other macroeconomic variables, such as investment, inflation, human capital, trade openness, etc. The research findings indicate that the political stability index has a positive effect on economic growth, as expected and predicted in the literature. However, the indicator of the years the chief executive has been in the office has shown a negative effect. This effect appears to be weakly significant only for the second variable. These findings allowed us to conclude that the political stability index positively influences economic growth, while the years the chief executive stays in the office has a negative effect. Frequent changes in the cabinet can actually have a positive impact in transition countries characterised by corruption, meaning that the long stay of a chief executive in the office can lead to power abuse.

Political connection, family ownership and corporate risk disclosure: empirical evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malek Hamed Alshirah ◽  
Ahmad Farhan Alshira’h ◽  
Abdalwali Lutfi
Keyword(s):  
The Body ◽  
The Political ◽  
Family Ownership ◽  
Political Connection ◽  
Risk Disclosure ◽  
Moderator Effect ◽  
Content Type ◽  
Negative Effect ◽  
Corporate Risk ◽  
Level Of Risk

Purpose This study aims to empirically examine whether the political connection is related to risk disclosure practices. The study also seeks to contribute to the existent risk disclosure literature by investigating the moderator effect of family ownership on this relationship. Design/methodology/approach The content analysis approach was used to collect data and determine the level of risk disclosure over the non-financial Jordanian firms listed on 1Amman Stock Exchange. The sample of this study contains 376 annual reports over four years from 2014 to 2017. It used the random effect regressions to examine the hypothesis of the study. Findings The results show that politically connected companies disclose less risk information than the unconnected ones in Jordan. The results also refer that family ownership contributes in mitigating the negative effect of the political connection on the level of corporate risk. Practical implications The results have implications for regulatory institutions such as the Jordan Securities Commission to take the negative effect of political connection in their consideration and impose further regulations to monitor this board’s attribute and control politicians’ domination on the board decisions. Originality/value The current study also contributes to the body of literature by investigating the effects of the political connections on the level of risk disclosure in the financial reports. To the best of the authors’ knowledge, the current study is the first to examine the effect of the political connection on the risk disclosure practices. Moreover, the study is among the first studies that examine the moderating role of family ownership on such relationship.

Ecuador’s Lasso weathers early storm but clouds loom

2022 ◽  
Keyword(s):  
Economic Growth ◽  
Economic Activity ◽  
Direct Investment ◽  
Tax Reform ◽  
The Political ◽  
Tax Reforms ◽  
Content Type ◽  
Downward Pressure ◽  
New Challenges ◽  
International Investors

Significance He appears to have weathered this early political storm, achieving notable successes in areas such as tax reform. However, the political outlook remains uncertain, with a likely COVID-19 resurgence heralding new challenges in 2022. Impacts Containing the spread of the Omicron variant will be a priority for Lasso in the coming months. A pandemic resurgence would place downward pressure on economic growth and tax collection. Tax reforms will please international investors and support efforts to attract foreign direct investment to stimulate economic activity.

Kenyan constitutional reforms gain critical traction

2021 ◽  
Keyword(s):  
Political System ◽  
Political Stability ◽  
The Political ◽  
County Governments ◽  
Content Type ◽  
Constitutional Reforms ◽  
Fiscal Space ◽  
The Cost

Significance If the referendum passes, it will lead to significant changes to the political system, including new executive posts, the devolution of more national revenues to county governments and measures to ensure more women are elected to parliament. Impacts Fully implementing the BBI’s wide-ranging reforms may take years, and if mishandled could delay the 2022 elections. The proposals will significantly increase the cost of government, which in turn will exacerbate the shrinking fiscal space. An enlarged executive encompassing a broader range of leaders may boost political stability, but it will likely also aggravate graft.

Are independent directors’ political connections valuable?

2020 ◽  
Vol 11 (2) ◽  
pp. 299-315 ◽  
Author(s):  
Yanyu Chen ◽  
Wenzhe Zheng ◽  
Yimiao Huang
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Listed Companies ◽  
Political Connections ◽  
Independent Directors ◽  
The Political ◽  
Political Connection ◽  
Exogenous Shock ◽  
Content Type ◽  
Negative Effect

Purpose The purpose of this paper is to use difference-in-difference method (DID) to study the influences of independent directors’ political connection on firm value. Design/methodology/approach File No. 18 by the Organization Department of the Communist Party of China Central Committee requires that the leading cadres in party and government offices are not allowed to act as independent directors; this restriction applies to retired officials as well. As a result, many listed companies lose the political connections of officers as independent directors. This paper takes it as an exogenous shock to evaluate the influence of the political connection of independent directors on firm value, effectively alleviating the endogeneity problem existing in previous studies. Findings The research finds the following: under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value; and compared to state-owned enterprises, the firm value of private enterprises receives a greater negative impact. However, the political advantage of state-owned enterprises is not obviously influenced. In the regions with worse external market environments, due to a greater reliance on resources brought about by political connection, the policy has a much greater influence on their listed companies. Research limitations/implications The study faces several limitations, each of which represents a potential research direction. First, our analysis is based on the policy effects on the firm’s current Tobin’s Q and finds a negative effect of losing political connections. However, the long-term effects are still unclear, as some studies find a negative effect of political connections. Second, the paper focuses on one channel in which political connections may affect firm value. Other channels, such as subsidies and loans from state-owned banks, which need more granular data, should be explored in the future. Practical implications The use of DID model can better objectively evaluate the implementation effects of ban policies and alleviate endogenous problems, which is also enlightening for further perfection of the system of independent directors in the A-share market. Social implications It enriches existing researches of the value of independent directors from the perspective of political connection, which is conducive to understanding the influence and channel on the firm value after the loss of political connection and the value of independent directors in the corporate governance in a more comprehensive and accurate manner. Originality/value This paper extends the relevant research on the value of the political connection of independent directors from the perspective of political connection and enlightens the evaluation of the effect of ban policies.

scholarly journals Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
Author(s):  
Kamil Omoteso ◽  
Hakeem Ishola Mobolaji
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Content Type ◽  
Governance Indicators ◽  
Data Framework ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption ◽  
Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

scholarly journals The impact of political reform on the stability of the state of Kuwait since 2010

2019 ◽  
Vol 2 (2) ◽  
pp. 101-114
Author(s):  
Enaam Abdullah Mohamed
Keyword(s):  
Political Stability ◽  
Political Reform ◽  
Arab Countries ◽  
The State ◽  
The Political ◽  
Political Rights ◽  
Content Type ◽  
The State Of Kuwait ◽  
Rentier States ◽  
The Arab Spring

Purpose The study aims to deal with three theoretical approaches to answer the research question: Does political reform in rentier States (Kuwait as a model) lead to political stability? The first approach: Following the steps of political reform in rentier States leads eventually to political stability. The second approach: Political stability in rentier States does not necessarily lead to political reform. The third approach: In rentier States, the decisive factor in interpreting the correlation between political reform and political stability requires explaining other intermediary factors. Design/methodology/approach David Easton’s input-output model: Easton defined the political system as the interactions related to the authoritarian allocation of values in society, that is, the distribution of resources by decisions adopted by individuals, and provided a framework for analysis of the political system in which it sees an integrated circuit of a dynamic nature that starts with inputs and outputs feedback, input and output. Inputs refer to the effects of the environment on the system. Outputs are the effects of the system on the environment, which are the decisions and policies taken by the system to meet the demands. Reverse feedback is the flow of information to the system about the results of its actions, the results of its decisions and policies. Generate new inputs in the form of a demand or support, and the system’s feedback feeds a kind of movement. Findings It can be said that the future of the rentier state is particularly dangerous in the Arab countries where the problem today is the sharp drop in oil prices, which requires the need to enter into the stage of major transformations and work to bring about fundamental changes and enter into radical constitutional, economic, political and social reforms before turning them from the state rent to countries that lack political stability. Research limitations/implications The aim of this research is to present a theoretical study of political reform. The study began to consolidate the concept of political reform, which was and still is the goal of many political and social reform leaders and movements, in addition to being a major topic in political theories. Reform can be carried out by violence and by peaceful change. In any case, reform remains a humanitarian need that cannot be ignored or avoided, because the alternative is worsening and deteriorating political and social conditions. Practical implications The Arab Spring revolutions set many challenges for the Arab countries. These countries had to start political reforms. The State of Kuwait was one of the most important rentier countries that, after the Arab Spring revolutions, was concerned with ensuring that individuals and groups exercised their political rights through political participation in decision-making. It guarantees the human existence of society and protects it through the law and its legislation, and grants rights and freedoms and does not oppose it. Social implications Political reforms lead to accommodating the demands of the opposition, increasing the political participation of citizens, activating the political role of women, activating the role of civil society and increasing political mobility. Originality/value The importance of the research paper is to emphasize the term rentier state and confirm the importance of reform in rentier countries and the paper asks whether the expansion of political rights, citizenship and participation will lead to stability or instability in these countries.

Election dispute belies Togo's deeper stability risks

2015 ◽  
Keyword(s):  
Public Health ◽  
Child Mortality ◽  
Mortality Rates ◽  
West African ◽  
The Political ◽  
The West ◽  
Content Type ◽  
Franc Zone ◽  
The Military ◽  
Democratic Norms

Subject The political outlook in Togo. Significance On April 28, the Independent National Electoral Commission (CENI) announced that President Faure Gnassingbe had won re-election in the presidential ballot held on April 25, with 58.75% of the vote. His controversial third term will extend his family's rule to nearly 50 years. Opposition candidate Jean-Pierre Fabre secured 34.95% of the vote. His Combat for Political Change (CAP) alliance rejects the result. Impacts Western donors' effectiveness at pushing for democratic norms will wane as Togo, like other African states, accesses new debt sources. Togo's membership of the West African CFA franc zone, which is backed by the French treasury, will ensure currency stability. A Burkina Faso-style ouster of Gnassingbe is unlikely, for now -- he enjoys the support of the military who first installed him. Despite being spared the Ebola crisis, standards of public health will remain poor, with child mortality rates far above global averages.

Haiti hurricane could have major political impact

2016 ◽  
Keyword(s):  
United States ◽  
Dominican Republic ◽  
The United States ◽  
The Political ◽  
Property Damage ◽  
Content Type ◽  
Political Impact

Significance The decision followed the devastation caused by Hurricane Matthew, which struck the country on October 4, killing hundreds. With estimates of casualties and property damage still being revised upwards, it is unclear when the electoral authorities will be in a position to reschedule the much-delayed elections. Impacts The United States will push for elections to be rescheduled quickly, as it was opposed to the rerun in the first place. However, holding elections too quickly would be controversial, as it would risk disenfranchising displaced voters. Popular anger at the devastation will be ultimately channelled into frustration with the political paralysis. The crisis could drive up attempted migration to the Dominican Republic and the United States.

Western fears of encryption lack substance

2015 ◽  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Law Enforcement ◽  
The United States ◽  
Terrorist Attacks ◽  
Consumer Trust ◽  
The Political ◽  
Political Debate ◽  
Content Type ◽  
Negative Effect

Significance In the wake of the terrorist attacks in Paris, the political debate on law enforcement 'going dark' due to encryption has resurfaced again in the United States and United Kingdom. However, governments have yet to demonstrate evidence of a loss of security capability because of encryption. Impacts The 'going dark' debate may be being used to distract from security agencies' existing surveillance capabilities. The debate's outcome could have a severe negative effect on consumer trust in internet-based businesses. Businesses will see opportunities in relocation to jurisdictions with robust laws that do not weaken cryptographic systems.

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