Assessment And Management Of Negative Impacts Of Foreign Direct Investment For Economies Of Central Asia

Uzbekistan has only begun to make independent steps in global economic processes. Along with Central Asian countries, Kazakhstan, Kyrgyzstan, Turkmenistan and Tajikistan, Uzbekistan’s economy and economic structure is pretty young, thus vulnerable to any unseen exogenous repercussions. We have already seen that how the Mexican Tequila crisis in 1994, the Asian crisis in 1997-98, the Russian crisis (even it was the leftover contagion from the Asian crisis) in 1998 and recent Kazakhstan real-estate crisis in summer of 2007 happened. It easy to see if we look behind capital flows. Capital flows have been heartache and headache for an economy for the last two decades. They are so mobile and volatile that can bear vicious ebbs and flow in no time at all. However, it is necessary to remember, that today it is difficult to speak of the economy of any country as about of separate island. Foreign Direct Investment is very necessary somehow, at least theoretically, to boost the economies of Central Asia. But there should be proper balance and policies to make the most of FDI inflows. An enchanted economy by enormous FDI inflows is exposed to very huge risk which might end up even with crisis!

Republic of Korea

The Korean insolvency and creditor rights framework is complex and has undergone several reforms in recent years. Consistent efforts to enhance the efficiency and effectiveness of the insolvency system have been made since the Asian crisis by the multiple government agencies that oversee the functioning of the insolvency framework in Korea. This note summarizes the key findings of the analysis of select aspects of the Korean insolvency and creditor rights system against the international standard.2 While the framework for personal insolvency is also discussed (See Annex), its analysis is not prescriptive, as there are no international best practices in this area.

The Rise and Fall of Brownfield Concessions

This chapter explains the fate of brownfield concessions. In the early 1990s, these public-private partnerships (PPPs) served briefly as the flagship of the global PPP movement, and were highly recommended by the development community as “privatization” solutions to many of the problems facing infrastructure utilities in low-income countries. These concessions involve the construction of new infrastructure assets to improve or extend existing facilities, but mostly focus on rehabilitation of existing assets. Theoretically, such projects should be relatively easy to do because risks associated with initial financing and construction are largely eliminated by the time a PPP contract is signed. But since the 1997 Asian crisis, relatively little investment has been generated by these projects. In the poorest countries, very few of these projects have been attempted and much of the related investment has actually come from governments or their development partners. What accounts for the rise and fall in popularity of brownfield concessions?

Transmisi Volatilitas antara Nilai Tukar dan Indeks Harga Saham Gabungan di Pasar Finansial Indonesia: Analisa Setelah Krisis Finansial Asia 1997

Volatility of Indonesia Rupiah and Jakarta Composite Index remain one of main issues in Indonesia economy after 1997 Asian crisis. The objectives of this research are (1) determining the volatility of Indonesia Rupiah to US Dollar exchange rates and Jakarta Composite Index (JCI) and (2) analysing the dynamic volatility transmission between exchange rates and JCI. Exchange rate and JCI volatility were measured using GARCH(1,1) approach. Estimated using VAR model, this study found that current volatility of exchange rate (ER) respond significantly to the change of volatility of Jakarta Composite Index (JCI) in the previous 2 months. On the other hand, contribution of JCI volatility to ER is greater than ER volatility to JCI, supporting the portfolio balanced theory.