Primary points to political instability in Argentina

2021 ◽  
Keyword(s):  
Political Instability ◽  
Business Environment ◽  
Vote Share ◽  
Economic Situation ◽  
Content Type ◽  
General Elections ◽  
The Government

Significance After winning over 48.2% of the national vote in the 2019 general elections, the FdT’s vote share dropped to only 31.8%. Recriminations are rife within the government, as well as disputes over how to improve the FdT’s performance in the November midterms. Impacts Despite voter doubts about both large coalitions, leftist and rightist options are gaining limited traction. The business environment will remain unfavourable amid instability and the risk of another COVID-19 wave. Radical factions within the government will lack the resources to sustain clientelistic policies in an adverse economic situation.

Guatemala’s economy on the way to recovery

2021 ◽  
Keyword(s):  
Climate Change ◽  
Latin America ◽  
Violent Crime ◽  
Business Environment ◽  
Policy Support ◽  
Content Type ◽  
Containment Measures ◽  
The Government ◽  
The Way

Significance National GDP nevertheless contracted by just 1.5% in 2020 -- less than almost any other country in Latin America. Resilient remittances and exports, coupled with unprecedented policy support, have mitigated the effects of the pandemic and subsequent containment measures, leaving the country better placed for recovery than its neighbours. Impacts Enduring poverty, inequality and violent crime, and the impacts of accelerating climate change, will drive further migration from Guatemala. The government will pursue banking law reforms, to reduce risks to financial activities in the post-pandemic business environment. Infighting and corruption scandals will hinder the opposition's ability to benefit from the decline of the president's popularity.

Is bribing a good strategy? Imbalanced interdependence and hazard of opportunism in bribery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ho Wook Shin ◽  
Jinsil Kim ◽  
Seung-hyun Lee
Keyword(s):  
Instrumental Variable ◽  
Design Methodology ◽  
Resource Dependence ◽  
Business Environment ◽  
Government Officials ◽  
Content Type ◽  
Relational Contract ◽  
Current Resource ◽  
The Government ◽  
A Current

PurposeIn fragile institutional environments, firms often have no choice but bribery as the means to access the services monopolized by the government. Corrupt government officials whose resources are valuable to many different firms can easily find other firms willing to offer bribes. The purpose of this paper is to examine whether and how this imbalanced interdependence exposes the bribing firm to the hazard of opportunism from the bribed officials.Design/methodology/approachThis study draws on World Business Environment Survey (WBES) data and the instrumental variable (IV) Probit estimator with Heckman correction for the potential selection bias.FindingsThe authors find that the more firms depend on bribery to acquire governmental resources, the severer the level of opportunism they encounter from the government officials. In addition, the authors find that although the presence of a legal alternative to bribery reduces the level of a corrupt government official's opportunism that a bribing firm experiences, the more firms depend on bribery despite the presence of a legal alternative, the higher the level of the corrupt official's opportunism that the firm will experience. Finally, the authors find that establishing a relational contract with government officials reduces the hazard of opportunism.Originality/valueThe study contributes to the resource dependence literature by finding that a greater imbalance in the interdependence between two parties in bribery exposes the more dependent party to a larger hazard of opportunism. The finding that an ineffective alternative to a current resource provider would not strengthen but weaken a resource seeker's bargaining power expands the literature. The authors also contribute to the corruption research by showing the significant strategic, not legal, risk to bribing firms of engaging in bribery, which to date has not been sufficiently discussed.

“Sound Finances”: Strategy or Soundbite

2017 ◽  
Vol 241 ◽  
pp. R13-R32
Author(s):  
Michael McMahon
Keyword(s):  
Interest Rates ◽  
Government Debt ◽  
Economic Situation ◽  
Public Finances ◽  
General Elections ◽  
Political Choices ◽  
Balanced Budget ◽  
The Government

A defining feature of (at least) the last three general elections has been the emphasis placed on each political party's fiscal credibility and their ability to deliver “sound public finances”. Applying the logic of household book-keeping, balancing the fiscal budget is said to capture such soundness. There is, however, little evidence that a balanced budget is necessarily sound. Instead, the evolution of public finances depends on (1) both the fiscal choices made on the level of spending and taxation, (2) the underlying growth of the economy which depends on far more than the fiscal decisions, and (3) interest rates on government debt and the financing needs of the government. As the economic situation changes, so too does the likely path of debt to GDP and hence the possible fiscal options open to a country. Sticking to the soundbite of “sound finances” has often distracted from the underlying menu of political choices and as such is a disruptive narrative in UK economics today.

The supply-side of corruption: a review of scenario, causes and prevention measure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nurfarizan Mazhani Mahmud ◽  
Intan Salwani Mohamed ◽  
Roshayani Arshad
Keyword(s):  
Private Sector ◽  
Business Environment ◽  
Supply Side ◽  
Public Officials ◽  
Theoretical Understanding ◽  
Content Type ◽  
Preventative Measures ◽  
Prior Literature ◽  
The Government ◽  
High Level

Purpose This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt practices and points out the corporations’ actions to mitigate corrupt behaviour in the business environment. Design/methodology/approach This study reviews the prior literature on the phenomenon of corruption in the private sector, its causes and the preventive measures that should be implemented. Findings Corruption in the private sector was associated with a firm’s interaction with the public sector, and the most common corruption in the private sector is grand corruption, which is improper contribution made to high-level public officials and politicians. The causes of corruption in the private sector can be explained from several dimensions: economy, psychosocial and legal and regulation. Preventative measures encompass both internal strategies, which are endogenous to business and external strategies like exogenous legislation and restrictions enforced by the government or outside organizations. Originality/value The efficient strategies in combating corruption need active cooperation and participation from the supply-side of corruption. Thus, this study contributes to the literature on the theoretical understanding of the corruption problem from the supply-side and responsibility play by the private sector in global anti-corruption initiatives.

Societal institutions and control system characteristics: empirical evidence from the UAE

2015 ◽  
Vol 6 (2) ◽  
pp. 268-291 ◽  
Author(s):  
Mayada Abd El-Aziz Youssef ◽  
Essam Moustafa
Keyword(s):  
Performance Evaluation ◽  
Empirical Evidence ◽  
Business Environment ◽  
Management Control ◽  
Survey Method ◽  
Content Type ◽  
The Government ◽  
Business Entities ◽  
And Performance ◽  
And Control

Purpose – This paper aims to explore the existence of two sets of factors societal institutions and management control systems’ (MCS) characteristics in the UAE business entities. Subsequently, this paper empirically examines the bilateral and the multivariate associations between the two sets. The societal institutions include six factors categorised in three main groups: cultural conventions, state structures and policies and skill development and control. The MCS characteristics consist of four factors which are: reliance on formal rules, control over the behaviour of employees, involvement of subordinates in target setting and performance evaluation and scope of information used in performance evaluation. Design/methodology/approach – Whitley’s model (1999) is adopted in the UAE business environment and the analyses are performed at the organisational level. Qualified accounting officials and managers are surveyed. The Kruskal-Wallis test, Spearman’s partial correlation and multiple regression are used for data analyses. Findings – Findings reveal the characteristics of the UAE societal institutions and the MCS in UAE organisations. They also reveal significant associations among four of the societal institution factors and most of the MCS characteristics. The results highlight the role played by the government structures and policies group in influencing the MCS characteristics in the UAE organisations. However, these results do not entirely agree with Whitley’s model. Research limitations/implications – The results of this study are restricted by the typical constraints associated with the survey method. The obtained results have implications for researchers and managers in facilitating the understanding of the relations among the various societal institutions and the MCS characteristics. Originality/value – This research, to the best of the authors’ knowledge, provides significant new empirical evidence into the relation between societal institutions and MCS characteristics in a non-Western economy.

Myanmar regulation reform will spur investment

2015 ◽  
Keyword(s):  
Direct Investment ◽  
Economic Reforms ◽  
Business Environment ◽  
Regulatory Environment ◽  
Business Climate ◽  
Foreign Investors ◽  
Content Type ◽  
Effective Administration ◽  
Regulation Reform ◽  
The Government

Subject Myanmar's business environment. Significance The government is instituting measures to improve the business climate and attract foreign direct investment (FDI) into the economy. As part of this effort, on February 24, it instituted the Competition Act. However, while there has been an influx of new FDI, foreign investors remain wary -- largely because of the challenges of navigating Myanmar's old and complex regulatory environment. Impacts Economic reforms could slow in the event of an opposition electoral victory, as the new government gains experience. Improvements to the business environment could be constrained by a faltering or failed ethnic peace process. Regulatory reforms backed up by effective administration could contribute to equitable economic growth.

Smuggling will weigh on Tunisian economy and politics

2015 ◽  
Keyword(s):  
Rural Areas ◽  
Political Stability ◽  
Coalition Government ◽  
Security Threats ◽  
Content Type ◽  
Cross Border ◽  
Tax Revenues ◽  
Border Towns ◽  
General Elections ◽  
The Government

Significance Essid has been working to form a new coalition government since general elections in late December. The new unity government will face tremendous pressure to jumpstart the economy, ensure political stability, and counter growing security threats. One major challenge -- cross-border smuggling -- poses a particularly serious threat to the new government. Smuggling costs the government some 615 million dollars per year, representing nearly 5% of total tax revenues, and undermines legitimate trade, further damaging growth. Impacts If the government fails to address smuggling, it will continue to lose critical revenue. Yet cracking down on smuggling will probably meet with considerable opposition -- particularly in rural areas and border towns. The new government's lack of a decisive mandate will impede reforms.

Coalition conflicts carry credibility costs in Chile

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Left Wing ◽  
Municipal Elections ◽  
Content Type ◽  
Reform Programme ◽  
The Future ◽  
General Elections ◽  
The Government

Subject Outlook for the coalition and the government's reform programme. Significance Seventeen months into its four-year term, the centre-left government of President Michelle Bachelet is deeply divided on the future of its reform plans, with the conflicts aggravated by sluggish growth and the administration's mounting unpopularity. There are signs that, looking ahead to October 2016 municipal elections and November 2017 general elections, the centre Christian Democrat Party (PDC) is starting to mark a distance from the government in a bid to appeal to voters alienated by the coalition's left wing. Impacts Infighting within the coalition will persist to the detriment of the government's credibility. For the 2016 municipal elections, the two wings of the coalition will probably field separate candidates. Uncertainty about the government's reform plans will hamper any acceleration of economic growth.

Port expansion will aid Morocco's trade hub ambitions

2016 ◽  
Keyword(s):  
Performance Index ◽  
Business Environment ◽  
Election Campaign ◽  
Content Type ◽  
The World ◽  
The Government ◽  
Policy Priority ◽  
Logistics Performance Index ◽  
Port Expansion ◽  
The Imf

Subject Logistics performance. Significance Morocco's aspiration to become a trade and industrial hub for the Atlantic and Mediterranean basins has received a setback with the publication of the World Bank's 2016 Logistics Performance Index on June 28. Morocco's ranking fell to 86th place, from 50th in 2012. Impacts Morocco's fall in logistics performance and corruption rankings could be used to attack the government in the election campaign. It could also provide an incentive to reform the business environment, which the IMF has highlighted as a policy priority. Morocco's advantages compared to its regional peers will outweigh investor concerns over the rankings.

Correa may yet win fourth term in Ecuador

2016 ◽  
Keyword(s):  
Large Scale ◽  
Media Freedom ◽  
Content Type ◽  
Electoral Campaigns ◽  
Wealth Redistribution ◽  
General Elections ◽  
The Government ◽  
The Right ◽  
Successive Term ◽  
Ruling Party

Subject Pre-election politics in Ecuador. Significance Deteriorating economic conditions, declining public spending and falling support for the government have provided opposition forces with a favourable climate to make gains in advance of next year's general elections. However, with little over eight months before voters are scheduled to go to the polls, the opposition is fragmented and the main challengers are uncertain. The political landscape is further complicated by uncertainty over who will stand for the ruling party. While President Rafael Correa has repeatedly stated that he will not compete, he may yet seek election for a fourth successive term. Impacts Constitutional reform, media freedom, security and tax reductions will be the focus of electoral campaigns from the right and centre. Preventing large-scale mining, environmentalism, creating a plurinational state and wealth redistribution will be central to the left. The full list of parties and candidates authorised to compete in the elections will not be known until the year-end.

Sign in / Sign up

Export Citation Format

Share Document