Institutional, Economic, and Social Impacts of Globalization and Liberalization

The present study aimed to rank the financial development levels of European Union (EU) nations and Turkey based on selected financial and economic indicators. Thus, the most recent annual data for these countries (2017) were analyzed with grey relational analysis (GRA). In the analysis, the decision criteria for 24 EU member nations and Turkey were determined as public debt, public expenditure, unemployment rate, Gini coefficient, and GDP growth. The grey coefficient scores obtained in the analysis revealed the financial performance ranking for the analyzed nations. Based on the entropy weighting method (EM) ranking, the top three countries with highest scores were Ireland, Czech Republic, and Slovakia, while the countries with the lowest scores were Spain, Italy, and Greece.

Experiments of Basic Income in Worlds of Welfare

Experiments of ‘basic income' in worlds of welfare suggest that different countries are prone to experience the same pressures and moreover, in ways that lead them to produce the same socio-economic outcomes, resulting in their convergence toward an alternative social policy tool outside of their own traditional welfare models to deal with such problems. The implication is that no single welfare model has proven adequate to the task of reducing or reversing negative outcomes to any significant extent thus far. This is the most probable reason why each type of welfare regime has designed and implemented a ‘basic income' pilot in the post-2008 crisis period. However, experimental designs and results have so far diverged from each other in interesting ways, likely reflecting the interactions between different versions of ‘basic income' and the different national environments in which they have been deployed.

Corruption and Public Sector Borrowing in EU Transition Economies

Corruption can be expressed as the abuse of public power for specific purposes and goals. The corruption in the public sector occurs as a result of state employees acting upon the private interests rather than public interest. The public borrowing policy is important for ensuring and maintaining the economic stability in a country. The high level of public borrowing is one of the important factors leading macroeconomic instability. Many institutional, economic, social, and political factors have been revealed as the determinants of public sector borrowing level. In this study, the causality relationship between corruption and public debt in 11 EU transition economies for the period of 2002-2017 was analyzed through causality tests of Kónya and Dumitrescu and Hurlin. Kónya panel bootstrap causality test revealed a one-way causality from public debt borrowing to corruption Croatia, Czechia, Hungary, Romania, and Slovenia and a one-way causality from corruption to public debt borrowing in Bulgaria, Estonia, Lithuania, Poland, Slovakia, and Slovenia. The Dumitrescu and Hurlin causality test discovered a bidirectional causality relationship between public debt borrowing and corruption.

Economics and Financial Implications of Coronavirus Disease (COVID-19)

The strong spread of coronavirus (COVID-19) in a very short time has revised the global forecasts and the focus has revolved into economic and financial recovery. During this crisis, the stakes will depend on the combination of health and economic policy, the behavior of people, and the condition of the financial market and industries. This chapter highlights the huge economic and financial impact of Coronavirus, especially in the Eurozone and the USA, and how these governments are responding to this worst crisis. Further, it highlights the different lines of modification of the “Brexit” agreement. Finally, this chapter deals with the important effect of globalization in the context of this health crisis.

The Business Transformation Framework and Enterprise Architecture Framework

In this chapter, the author based his research on his authentic mixed multidisciplinary applied mathematical model that is supported by a tree-base heuristics module, named the applied holistic mathematical model for organizational asset management (AHMM4OAM), where the proposed AHMM4OAM is similar to the human empirical decision making process, which can be applied to any type of asset management discipline, in order to support the evolution of organisational, national, or enterprise asset management. The AHMM4OAM can be used for the detection of financial irregularities, assets optimisations and eventual dangers for the organisation's or national assets. In the case of gigantic financial misdeeds that endanger national assets, which are related to fraud and money laundering that damage many organisations and even countries, and in this concrete case it is related to the Swiss, Union des Banques Suisse (UBS), in which 32 trillion US dollars are hidden and is the problem of global financial disequilibria. The AHMM4OAM is supported by a real-life case of a organisational (or business) transformation architecture in the domain of organizational (or enterprise) asset management (OAM) that is supported by the alignment of a standardized organisational or enterprise architecture blueprint.

Do We Have to Rethink Sovereign Debt of Developing Countries?

The chapter joins new reflections interested in measuring welfare and social progress. The main objective is to determine whether the sovereign debt management process in developing countries is economically viable, socially equitable, and ecologically sustainable. The analysis advocates rethinking the sovereign debt around the idea of social sustainability, that is, the non-questioning of the living conditions of present and future generations and their economic, social, and political choices. The chapter suggests the need for developing countries (1) to ensure a comprehensive management of public debt based on the co-responsibility of both the indebted countries and their creditors, (2) to borrow in priority to finance the most productive investment expenditures, which can have an impact on the populations' standards of living and on economic prosperity, and (3) to reduce the use of austerity programs and anti-social policies.

The Effects of Globalization on Turkish Public Financial Management and Budget Process

The effects of globalization in the economic, political, and social life have deeply changed the roles of states, and in this process of change, the new management approach has become a current issue within public financial management. Some important principles such as fiscal transparency, accountability, efficiency, effectiveness, and economy have been given importance in the public sector, and middle-terms budgeting, strategic planning, performance management, performance indicators, annual reports, analytical budget classification have become to be implemented in the performance-based budgeting system. The authors have examined the innovations by globalization in the Turkish public sector and analysed the effects of changes with the adoption of Law No: 5018 in terms of Turkish public financial management. It has been mandatory that all Turkish administrations under the general government take attention to the regulations accepted in Law No: 5018. When evaluated from a positive perspective, public administrations in Turkey have got more managerial responsibility in their operations.

Understanding FDI in Socialist Nations

The link between foreign direct investment and economic growth has been widely studied. The studies have provided insights into how developing nations enable growth by adjusting policies to entice investors. Foreign investors entering emerging markets have to make strategic decisions on how to set up their operations. Investors look for markets and countries that would maximize their returns and position themselves as leaders in the industry. Hence, understanding entry requirements and economic policies are vital to understanding FDI. Keeping this in mind, this chapter analyses FDI in socialist nations and how their policies have evolved over time. The chapter will analyze the motivations and trends in FDI and how institutional conditions have enabled or impeded growth. The chapter studies China and Vietnam and compares their approach to FDI. The chapter uses Eclectic Theory posited by Dunning to understand changes in policies and how socialist nations are evolving to accept FDIs. The chapter concludes with a comparison section and presents scope for further research.

Globalization of Stock Market, Economic Growth, and Geopolitical Risk

Although the significance of the foreign investors constructing the significant magnitude of GDP increases for the emerging markets, their equity markets' attractiveness is affected by their vulnerability to geopolitical risk. The purpose of this study is to empirically investigate the effect of the stock market globalization on the correlation between economic growth and geopolitical risk in Brazil. After the dynamic correlation between economic growth and the geopolitical risk in Brazil is obtained by DCC-GARCH(1,1) methodology, the nonlinear autoregressive distributed lag (NARDL) model is employed to examine the asymmetric relationship among variables. The findings demonstrate while the changes in the globalization of the stock market decrease the connection between economic growth and geopolitical risk in the long-run, the positive changes in the participation of foreign investors make economic growth and geopolitical risk more connected the in short-run. Moreover, this impact is asymmetric. This chapter provides valuable implications for international investors and policymakers.

The Past and the Present of Düyun-u Umumiye

In this study, it is aimed to examine the relationship between the capitalist state and, institutions that affected Turkey's financial integration with the capitalist global economy in the context of a comparative analysis. In the study, the Ottoman Public Debt Administration (OPDA) which was effective during the process of the integration of the Ottoman state into the world capitalism in the First Globalization Phase (1870-1914) is analyzed by comparison with the General Directorate of Borrowing. The General Directorate of Borrowing is also called as the post-modern Düyun-u Umumiye because of its organizational structure. The common feature of the Ottoman Public Debt Administration and the General Directorate of Borrowing is that both were established after the financial crises. In this study, General Directorate of Borrowing will be evaluated in terms of global economic developments and prospects and, within an analysis in comparison with the Ottoman Public Debt Administration.