Remittance trap: comparative approach of the Republic of Moldova and other ex-socialist countries

The objective of our analysis has been to find out and elaborate on why some countries could not benefit from remittance inflows sent by migrants or even are getting into traps due to them. In the authors’ view, the remittance trap may be appraised, notably in the long run, as the dilemma in which a country finds itself when the high value of migrant remittance inflows leads to a high value of human and financial capital outflows, as well as to the moral hazard problem of the country's population and government. Accordingly, remittance trap negatively affects the sustainable growth and development of the economy which eventually deepens the country's dependence on remittances, proving the vicious nature of the trap. Furthermore, the paper focuses on identifying a competent set of policy recommendations for the countries that are remittance dependent. A natural conclusion of our research is that there is a thin line between remittances’ advantages and disadvantages, since in fact, short-term benefits very often turn out into long-run side effects, mainly as a result of mismanagement of remittance inflows, which correlates with unfavourable business climate and decreased willingness of the population to invest. Accordingly, the benefits and adverse side effects of remittance inflows are interdependent.

China’s NGO Partnerships in a New Era of Development Cooperation

China’s 2021 White Paper, China’s International Development Cooperation in the New Era, offers a new vision for a more people-centred approach to its development cooperation. While the White Paper extensively discusses partnerships, it only briefly mentions encouraging cooperation with non-governmental organisations (NGOs). This article argues that NGO engagement in international development activities would improve their effectiveness, a view shared by many Chinese scholars and practitioners. However, challenges exist that constrain optimal engagement, especially access to funding, and a weak enabling environment and policy framework. This article addresses these challenges, drawing from the literature on ‘going out’ among Chinese NGOs and social organisations, along with interviews with key players in the Chinese NGO ecosystem. The article recommends, among other things, that the government clarify and improve its policy framework for NGOs/social organisations in support of China’s international development collaboration, especially regarding funding flows, personnel regulations, and material and capital outflows.

Post COVID-19 Impacts on Technology Adoption

This research paper analyzes the current technology adoption in the context of the COVID-19 pandemic. This worldwide health emergency condition has led to people being confined, and due to this confinement, the closure of education centers and face-to-face education led to online education. Teachers are forced to adapt to their custody, new methodological approaches, and dizzying pace, which present excellent stress levels. In the field of managing motivational and emotional processes, neuroeducation contribution leads to students’ meaningful learning. The symbiosis of neuroeducation and Communication Technology (ICT) creates a significant contribution in shifting of paradigm active today. Technology Company’s contribution to the COVID-19 pandemic is dependent on a relatively digital ecosystem while attracting various investors despite capital outflows. Moreover, this contribution is connected to the technology company’s capability to quickly pivot towards new models and services and deliver goods and services to the underserved in many cost-effective ways.

Globalization And Capital Flows: Cases of Nigeria And Ghana

This study aimed at examining the effect of globalization on capital flows (capital inflows and capital outflows) in Nigeria and Ghana for the period 1981 to 2019. Secondary data obtained from the World Bank Development Indicators was used to examine this effect. The ADF unit root test was used to test for stationarity of the variables and the result indicated that all variables are stationary at first difference in both countries. The Johansen co-integration test revealed that co-integration exists among the variables in all models used in this study. In Nigeria, the result of the error correction model indicated that globalization has a negative relationship with capital inflows in the current period while the relationship is positive and significant in the first lag. In Ghana, the result of the error correction model indicated that globalization has a positive and significant relationship with capital inflows in both the current period and the first lag. For the effect of globalisation on capital outflows, the error correction result showed that globalization has a positive and significant relationship with capital outflows in Nigeria in both the first lag and the current year. In Ghana however, globalization has a positive relationship with capital outflows in the current period but in the first lag, the relationship is negative and significant. It was then recommended that the issue of insecurity and policy inconsistency so as to allow the free flow of capital into both countries should be looked into. Also, the Nigerian and Ghanaian government should undertake policy measures and reforms that will help in providing sound macroeconomic policies which will create a more stable and conducive environment for investment. Finally, there should be an intensification of government efforts in its anti-corruption campaign as this will improve the country’s image and attract inflow of funds from abroad for investment purposes in both countries.

Meniti Jalan Nasionalisasi Aset Perusahaan Belanda Di Indonesia: Menguntungkan Atau Merugikan

Abstrak: Indonesia sebagai negara merdeka memiliki cita-cita berdikari dalam berbagai bidang kehidupan. Salah satunya di bidang ekonomi sebagai pilar pembangunan. Cara yang ditempuh untuk menata kehidupan ekonomi dilakukan dengan penuh liku-liku. Langkah-langkah yang ditempuh diantaranya dengan menasionalisasi berbagai bangunan umum vital milik asing dengan pembayaran ganti rugi. Penelitian ini bertujuan untuk menganalis jalan yang ditempuh oleh pemerintah guna melakukan nasionalisasi, pelaksanaan nasionalisasi dalam berbagai sektor perusahaan milik Belanda, dan pengaruh nasionalisasi perusahaan terhadap berbagai bidang kehidupan seperti ekonomi, politik, dan sosial. Penelitian ini menggunakan metode sejarah yang terdiri dari lima langkah: heuristik (pengumpulan sumber), kritik (verifikasi sumber), interpretasi (penafsiran), dan historiografi (penulisan sejarah). Hasil penelitian menunjukan jika cikal bakal nasionalisasi perusahaan-perusahaan dimulai sejak masa pergerakan nasional yang mengarah pada konsep Indonesianisasi, proses pelaksanaan nasionaliasi mengacu pada Undang-Undang Nomor 86 Tahun 1958 Tentang Nasionalisasi Perusahaan-Perusahaan Milik Belanda. Mengenai teknis pelaksanaan nasionalisasi perusahaan Belanda diatur pada Peraturan Pemerintah Nomor 3 Tahun 1959 tentang pembentukan Badan Nasionalisasi Perusahaan Belanda. Perusahaan yang dinasionalisasi bergerak dalam bidang pertanian dan perkebunan, perdagangan, industri dan tambang, perbankan, listrik dan gas, transportasi, dan konstruksi. Pengaruh dari nasionaliasi berupa keluarnya modal, goyahnya neraca keuangan, dan administrasi perusahaan. Perusahaan yang dinasionaliasi dalam perjalannya berubah menjadi BUMN.Kata kunci: nasionalisasi, perusahaan, BelandaAbstract: Indonesia as an independent country has aspirations to be independent in various fields of life. One of them is in the economic sector as a pillar of development. The method taken to organize economic life was carried out in a twisted manner. The steps taken include nationalizing various vital public buildings owned by foreigners with compensation payments. This study aims to analyze the path taken by the government to nationalize, the implementation of nationalization in various sectors of Dutch-owned companies, and the effects of company nationalization on various fields of life such as the economy, politics, and society. This research uses the historical method which consists of five steps: heuristics (source collection), criticism (source verification), interpretation (interpretation), and historiography (historical writing). The results showed that if the nationalization of companies started from the time of the national movement that led to the concept of Indonesianization, the process of implementing nationalization referred to Law Number 86 of 1958 concerning the Nationalization of Dutch Owned Companies. Regarding the technical implementation of the nationalization of Dutch companies, it is regulated in Government Regulation Number 3 of 1959 concerning the formation of the Dutch Company Nationalization Agency. The nationalized companies are engaged in agriculture and plantation, trade, industry and mining, banking, electricity and gas, transportation, and construction. The effects of nationalization are in the form of capital outflows, unstable balance sheets, and company administration. Companies that are nationalized on the way turn into BUMN.Keywords: nationalization, company, Netherlands

Sri Lanka will try to manage debt without IMF help

Significance The government nevertheless remains under pressure from domestic critics and external stakeholders because of dwindling foreign exchange (forex) reserves and a growing debt crisis. Sri Lanka approached the IMF in early 2020 for macroeconomic support under the Fund’s Rapid Financing Instrument, but negotiations were shelved. Impacts The government will face increasing domestic pushback over its efforts to curb capital outflows. Although India and China will remain Sri Lanka’s most important partners, ties with Bangladesh will grow markedly. Sri Lanka should be able to access an allocation of IMF special drawing rights later this month.

Revisiting British Investment in Latin America: The River Plate Trust Group, 1879–1963

The article analyses the performance and profitability of the firms controlled by the River Plate Trust Group in Argentina and Uruguay from 1879 to 1960 to challenges the notion that British investments in the Southern Cone involved greater default or insolvency risks because of nationalism, expropriations, and over-taxation. Also known as Morris or Morrison group, River Plate Trust became the most important British business group in the region during the First Global Period, as it controlled a number of public utilities, mortgage and financial firms. Our case shows that the decline of British investment in mortgage and financial activities did not mark the end of this business cycle after WWI; rather, it signalled a change in the direction of capital flows. Capital outflows from host economies to Great Britain—via dividends—continued over the interwar period, with only a brief interruption between 1931 and 1934. The business cycle of British firms entered a new phase, characterized by stagnant British investments and increasing capital returns from Argentina and Uruguay to Great Britain.Moreover, British public utility firms continued to invest in the River Plate until the 1940s, because profits from the region supported the distribution of high dividends to shareholders.

Offshoring as a Threat to the National Economic Security: Causes and Ways to Counteract

The volume of capital outflows from Ukraine to offshore jurisdictions has become quite large and poses a threat to the economic security of the state, however, measures to de-offshorise the economy are not effective. Therefore, this study is aimed at identifying factors that affect the level of offshoring of the economy, in addition to the state's tax policy, and at developing measures to de-offshorise the state economy. The study used general and special methods of cognition, economic, mathematical, and statistical analysis, the method of deduction and theoretical generalisation. A theoretical analysis of offshoring as an economic category is carried out, the scale of offshoring of the world economy and its impact on the economic security of the state is determined, which substantiated the relevance of the chosen research topic. The main factors influencing the level of offshoring of the economy, except for tax evasion, are highlighted. A methodology and algorithm for determining the total amount of capital outflow are proposed and calculations of the total amount of capital outflow from Ukraine for 2013-2019 are carried out. A correlation analysis was carried out to determine the level of influence of certain factors on the offshoring level of the Ukrainian economy. A mathematical model of the influence of these factors is constructed (x1 , x2 ... xn ) at the level of offshoring of the economy (y), which allowed identifying the factors that most contribute to the increase in the volume of capital outflows from Ukraine. A comparison of the level of corporate raiding, the coefficient of offshoring and the volume of capital outflow from Ukraine is carried out, and a conclusion is made about their stable interdependence. Based on the results of the study, the main ways of de-offshoring of the Ukrainian economy in the process of creating and forming the Bureau of Economic Security of Ukraine are developed. It is proposed to create a division within the specified bureau that will perform the functions of countering raiding and violation of property rights of business entities. It is assumed that these measures would contribute to the de-offshoring of the economy and ensure the economic security of the state. The findings of the study can be used to form legislative and institutional support for deoffshoring and ensure the economic security of the state. In particular, based on the results, it is recommended to form the main directions of work and functions of the newly created Bureau of Economic Security of Ukraine

Are Rising U.S. Interest Rates Destabilizing for Emerging Market Economies?

Rising U.S. interest rates are often thought to be bad news for emerging market economies (EMEs) as they increase debt burdens, trigger capital outflows, and generally cause a tightening of financial conditions that can lead to financial crises. Indeed, as shown in Figure 1 below, the rise in the federal funds rate (the black line) during the Volcker disinflation of the early 1980s was associated with a sharp rise in the incidence of financial crises in EMEs (the green bars).

Money Doctors and Latin American Central Banks at the Onset of the Great Depression

Many of today's central banks in Latin America were established in the interwar period. During the 1920s, most of them were designed under the influence of money doctors. The main mandate of these new institutions was to cope with inflation and provide exchange stability. This article analyses how these central banks responded to the onset of the Great Depression. I show that, in accordance with the requirements of the monetary regime, central banks initially acted to prevent capital outflows and to protect their gold reserves. This led to a credit drop to the private sector. Additional credit was made available once governments decided to intervene more actively in the economy, thereby disregarding the advice of money doctors. The central banks that were founded in the 1930s, and the reforms introduced to those already operating, were conceived to face the effects of the crisis.