Investing for a Greener, Competitive and Socially Inclusive Europe

2020 ◽  
Vol 89 (3) ◽  
pp. 51-59
Author(s):  
Debora Revoltella ◽  
Patricia Wruuck
Keyword(s):  
Financial Markets ◽  
Market Failure ◽  
Structural Changes ◽  
Economic Transformation ◽  
Global Competition ◽  
Economic Resilience ◽  
European Development ◽  
Effective Policy ◽  
Development Banks

Summary: Development banks are there for good times as well as bad times. They promote structural changes in economies, addressing longer-term challenges. They complement financial systems, helping to improve the functioning of banking and financial markets and bolstering economic resilience. They mitigate market failure, but can also help to identify it, contributing to the design of effective policy. Moreover, development banks can help to create and shape markets, such as the green bonds market. In doing so, they catalyse structural economic transformation and spur investment-led growth. For the post-Covid-19 world, Europe needs structural transformation to address the challenges of rapid technological change and stiffer global competition, growing threats to social cohesion and, not least, climate change. In this article, with a focus on the role of the EIB, we discuss three main questions: What is the rationale for development banks? What is the EIB’s unique position within the European development banking landscape? And how is the EIB helping to address the key challenges that Europe is currently facing, boosting recovery from the historic Covid-19 shock to create a more competitive, inclusive and greener economy in Europe?

scholarly journals The Activation of Deglobalization Processes and System-Forming Role of High-Tech Companies in the Modern Market Fragmentation Processes

2020 ◽  
Vol 10 (513) ◽  
pp. 81-88
Author(s):  
O. B. Mnykh ◽  
◽  
V. T. Lozynskyj ◽  
V. P. Dalyk ◽  
◽  
...  
Keyword(s):  
Financial Markets ◽  
Structural Changes ◽  
Political Influence ◽  
Digital Economy ◽  
High Tech ◽  
Foreign Direct Investments ◽  
Global Business ◽  
Subject Analysis ◽  
Market Fragmentation

The search for answers to modern challenges to both the global and the national economy is reflected in the focus of scientific and applied researches, their object and subject analysis. Such a search requires studying of qualitative changes in the processes of globalization and their combination with the origin in different countries of the trend of deglobalization. This trend is strengthened by the political influence of the countries with the use of policy of economic and technological protectionism, sophisticated rules of the game and instruments for gaining market advantages in both high-tech and financial markets. The present scientific research is aimed at analyzing the reasons for activating the structural policy of deglobalization, building up a related contentual model. The main reasons for accumulation of corporate debts by giants of global business are defined and their dual role in the development of both industrial and financial markets is reflected, the interaction between which is intensifying in the digital economy and with the emergence of new sources of crisis. The characterization of the gaps between the volume of exports and imports, the coefficient of coverage by exports of imports, the value of which depends on positive structural changes based on the processes of deglobalization and innovative activity of high-tech markets, are provided. Dynamic trends were built up to reflect the interdependence of volumes of foreign direct investments and the level of openness of the Ukrainian economy. The relationships of fragmentation factors of industrial and financial markets under the influence of the growing role of high-tech companies in the implementation of the policy of economic protectionism are shown. A contentual model of diffusion of threats to the development of high-tech markets and their consequences in the new environment of forking out material and digital economy is built up, which deepens understanding of the reasons for the combination of globalization and deglobalization processes both in the world and in individual countries.

scholarly journals Market-based but state-led: The role of public development banks in shaping market-based finance in the European Union

2018 ◽  
Vol 22 (2) ◽  
pp. 184-204 ◽  
Author(s):  
Daniel Mertens ◽  
Matthias Thiemann
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Risk Sharing ◽  
Public Investment ◽  
Action Plan ◽  
The European Union ◽  
Excess Liquidity ◽  
Development Banks ◽  
European Investment

This paper examines the European Union’s strategy of governing the economy through financial markets by focusing on the largely unacknowledged role of public development banks, including the multilateral European Investment Bank. It argues that these state-owned financial institutions have moved into a key position in the recent evolution of the European financial system and economic governance. Since the crisis, policy makers have used them to address the intrinsic volatility and excess liquidity of contemporary financial markets, as well as offset the constraints on public investment imposed by institutionalized fiscal austerity. The paper provides evidence for this claim through an analysis of the emergent policy nexus between the Investment Plan for Europe and the Action Plan on Building a Capital Markets Union. Based on official documents and interview data, it specifically traces the risk-sharing devices for small- and medium-sized enterprise and infrastructure finance set up by development banks within these initiatives. Equipped with public guarantees, they have been instrumental for the promotion of securitization markets and public–private partnerships through increased multilevel collaborations among development banks. The anchor role of such quasi-fiscal state actors in shaping capital markets, the paper concludes, has profound political implications, and therefore warrants further scholarly attention.

scholarly journals How narratives of racial progress create barriers to diversity, equity, and inclusion in organizations

2021 ◽  
Author(s):  
Michael W. Kraus ◽  
Brittany Torrez ◽  
LaStarr Hollie
Keyword(s):  
Policy Change ◽  
Structural Changes ◽  
Evidence Based ◽  
Organizational Leaders ◽  
Racial Justice ◽  
Racial Equity ◽  
Effective Policy ◽  
Racial Progress ◽  
Equity And Inclusion

Despite recent statements in support of racial justice many organizations fail to make good on their commitments to diversity, equity, and inclusion (DEI). In this review, we describe the role of the narrative of racial progress—which conceives of society as rapidly, naturally, and automatically ascending toward racial equity—in these failures. Specifically, the narrative of racial progress: 1) envisions organizations as race neutral, 2) creates barriers to more complex cross-race discussions about equity, 3) creates momentum for less effective policy change, and 4) reduces urgency around DEI goals. Thus, an effective DEI strategy will involve organizational leaders overcoming this narrative by acknowledging past DEI failures, and, most critically, implementing significant, immediate, and evidence-based structural changes that are essential for creating a more just and equitable workplace.

scholarly journals Financial systems, financial governance and economic development

2018 ◽  
Vol 3 (2) ◽  
pp. 124
Author(s):  
Jan Kregel
Keyword(s):  
Social Support ◽  
Private Sector ◽  
Financial Markets ◽  
Growth Process ◽  
Decision Variable ◽  
Financial Systems ◽  
Financial Governance ◽  
Development Banks ◽  
Distribution Of Income

The idea that seems to be spreading in response to this crisis to promote the substitution of development financing via private sector institutions in place of government development banks means restoring the inequitable sharing of risk of development finance, promoting instability and protecting finance at the expense of labour, and the inevitable worsening of the distribution of income. Private sector financial markets do not have a good record of providing finance to development investments at levels and rates that would ensure expanding employment, and there is no reason to believe that this will change if the role of development banks is minimized. As liquidity preference becomes the dominant decision variable for investment, Brazil will be back to the problems that Keynes originally analysed in the <em>General Theory</em>, with the addition of the prudential requirements that will aggravate the instability of the growth process, even in the presence of a fully developed domestic financial system, and tilt social support in favour of finance at the expense of labour.

scholarly journals Impact of Innovative Financial Products on Financial Systems: Exchange Traded Products and the Polish Financial System

2016 ◽  
pp. 114-132 ◽  
Author(s):  
Adam Marszk
Keyword(s):  
Financial Markets ◽  
Structural Changes ◽  
Financial System ◽  
Exchange Traded Funds ◽  
Financial Systems ◽  
Financial Products ◽  
The Usa ◽  
Key Topics ◽  
Fast Transmission

Exchange Traded Products (ETPs) are one of the most recent and most rapidly developing financial products. As their assets grow they have an increasing impact on financial systems in many countries, including the USA, UK or Japan. Development of ETPs is linked with many opportunities and threats for the local financial systems. Their correct assessment is becoming more difficult due to the growing complexity of the available products, thus posing problems not only for the participants of the financial markets (including buyers and sellers of ETPs as well as intermediaries) but also for the supervising authorities. The main ETP development trends (e.g. size of the global assets under management) are outlined in this article. Structural changes are discussed in the context of their impact on both local and global financial systems. One of the key topics is the consequences of the changing landscape of the most popular type of ETP – Exchange Traded Funds (ETFs). Simple and safe physical ETFs are being replaced by complicated synthetic ETFs, significantly increasing possible risks for the holders of such products, for other entities involved in their creation and distribution, and, consequently, for the whole financial system. The last part of the article is devoted to the Polish perspective on this topic. It may be argued that in Poland the role of ETPs (even ETFs) is still marginal. ETPs can influence the Polish financial system, however, through a number of links between Polish and foreign financial institutions and markets. As a result, fast transmission of the future shocks caused by such products is increasingly more probable.

scholarly journals Chief Development Tendencies, Structural Changes and Innovativeness of the Industrial and Service Sectors in Poland

2016 ◽  
Vol 35 (4) ◽  
pp. 49-69 ◽  
Author(s):  
Joanna Dominiak ◽  
Tomasz Rachwał
Keyword(s):  
Structural Changes ◽  
Value Added ◽  
Industrial Sector ◽  
Economic Transformation ◽  
Structure And Dynamics ◽  
Service Sectors ◽  
Polish Economy ◽  
National Economies ◽  
Two Sectors

Abstract The goal of this article is to determine regularities concerning structural changes in the industrial and service sectors in Poland in the light of trends observable in the development of the world and national economies. The analysis embraces Poland in the years of the socio-economic transformation, but because of access to comparable data it focuses mainly on the years 2000-2014. Use is made of measures commonly applied in economic geography (employment, gross value added) and indicators based on them (mainly the structure and dynamics of change). First, the change in the role of the industrial and service sectors in the Polish economy as compared with other EU states is analysed in the light of the theoretical conceptions presented in the literature. Examined next are changes in the internal structure of the sectors and in the level of their innovativeness. The research showed there to be only slight changes in the role of the two sectors over the study period. Changes in the structure of the industrial sector tend towards its modernisation, which can signal steps taken for re-industrialisation.

Economic Growth: New Problems and New Risks

2006 ◽  
pp. 20-37 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Driving Force ◽  
Structural Changes ◽  
Rate Of Growth

The economic growth, which is underway in Russia, raises new questions to be addressed. How to improve the quality of growth, increasing the role of new competitive sectors and transforming them into the driving force of growth? How can progressive structural changes be implemented without hampering the rate of growth in general? What are the main external and internal risks, which may undermine positive trends of development? The author looks upon financial, monetary and foreign exchange aspects of the problem and comes up with some suggestions on how to make growth more competitive and sustainable.

Peran Bank Syariah: Menuju Perekonomian Masyarakat Madani

2019 ◽  
Vol 1 (2) ◽  
pp. 131-144
Author(s):  
Dini Maulana Lestari ◽  
M Roif Muntaha ◽  
Immawan Azhar BA
Keyword(s):  
Financial Markets ◽  
Islamic Law ◽  
Financial Service ◽  
Islamic Banks ◽  
Free Society ◽  
The Public ◽  
Turn On ◽  
The People ◽  
Strategic Role

Islamic banks are present in the community as financial institutions whose activities are based on the principles of Islamic law for the benefit of the people. This study aims to determine the strategic role of Islamic Banks as financial service institutions, the importance of the existence of Islamic Banks and Islamic-based markets and financial instruments in them. In its development, Islamic banks have a role as institutions that turn on public funds, channel funds to the public, transfer assets, liquidity, reallocation of income and transactions. In the Indonesian economic system, the existence of Islamic Banks is important as an alternative solution to the problem of conflict between bank interest and usury. Islamic financial markets and instruments provide a free society of interest and follow a different set of principles. Distribution of profit/ loss according to evidence of participation in the management fund. The division of rental income in the form of musharaka.

The Prophetic Voice of the Church in a Democratic South Africa – A Theological Reflection

2018 ◽  
Vol 15 (2) ◽  
Author(s):  
Lufuluvhi Maria Mudimeli
Keyword(s):  
South Africa ◽  
Economic Transformation ◽  
The State ◽  
Black Liberation ◽  
South Africans ◽  
Black Liberation Theology ◽  
Prophetic Voice ◽  
The Face ◽  
The Church

This article is a reflection on the role and contribution of the church in a democratic South Africa. The involvement of the church in the struggle against apartheid is revisited briefly. The church has played a pivotal and prominent role in bringing about democracy by being a prophetic voice that could not be silenced even in the face of death. It is in this time of democracy when real transformation is needed to take its course in a realistic way, where the presence of the church has probably been latent and where it has assumed an observer status. A look is taken at the dilemmas facing the church. The church should not be bound and taken captive by any form of loyalty to any political organisation at the expense of the poor and the voiceless. A need for cooperation and partnership between the church and the state is crucial at this time. This paper strives to address the role of the church as a prophetic voice in a democratic South Africa. Radical economic transformation, inequality, corruption, and moral decadence—all these challenges hold the potential to thwart our young democracy and its ideals. Black liberation theology concepts are employed to explore how the church can become prophetically relevant in democracy. Suggestions are made about how the church and the state can best form partnerships. In avoiding taking only a critical stance, the church could fulfil its mandate “in season and out of season” and continue to be a prophetic voice on behalf of ordinary South Africans.

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