...Liberalisation Privatisation Globalisation The organisation of capitalist society is based on economics and naturally precipitates a class structure. The classes achieve their distinction solely on the premise of having or not having economic power. The economic structure of the society in turn depends on what the society produces, for whose consumption, and how it is exchanged. Any change in the modes of production and exchange are reflected directly or indirectly on the social fabric. Both these operations are controlled by the classes that are economically privileged and the interests of the other classes are almost always jeopardised. This logic is true not only in the internal relations of a society but also between societies. Since these relations are determined by an imbalance of power, they exist in a retarded and volatile condition that seeks discharge. Conflict and protest are therefore inevitable in such a structure. It is in these protests from the dispossessed classes that one finds the genesis of all major revolutions and rearrangements of social order. With the advent of capitalism, the lower classes that toiled at the farms or at the furnaces, became 'labour'- not bound to their trades by tradition or command of the feudal lord but they became free contracting agents who could sell their capacity to labour, in the market. This shift did not of course imply any elevation in their conditions. They remained indispensable cogs in the social machinery- only the machinery...
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...Paper on Air Transport Liberalisation As a taxpayer in a Country with a national airline that operates most routes under restrictive Air Service Agreements and making losses, I do support the liberalisation “Open Skies” of the air services market. Currently, the Bilateral Air Services Agreements (BASAs) specify which airlines could operate between the two countries, the routes carriers could operate (e.g., which airports they could fly to), whether carriers could offer beyond services (fifth freedom rights), limits on the frequency and capacity (seats) that the carriers could operate, and often place controls over airline pricing. As a result, the development of regional and international air service has been as much a function of government policy as it has been a function of commercial considerations. In addition, the Bilateral Air Services Agreements have also placed foreign Ownership and control restrictions on the airlines. Typically, the ownership restrictions specify the maximum percentage of airline shares that can be owned by foreign nationals. However, despite all these restrictions our national airline has continued making losses. Arguably, the most prominent and comprehensive example of liberalisation has been the European Union (EU) single aviation market. Between 1987 and 1993, the EU introduced three packages of reforms that almost fully deregulated the EU air market. Carriers from the EU were free to operate any route within the EU, without restriction on...
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...Q1. What are the different approaches to Globalization? Comment on relevance of Swadeshi movement in today’s Globalized environment. Ans. Globalization has become a ‘magic’ word used to express a change in all areas of life from economy to politics or from social politics to culture. Globalization is the growing role of external factors (economic, social and cultural) in the reproduction of all member of a country to form of a single world market(s) without barriers. 'A global shift'; that is, a world being molded, by economic and technological forces, into a shared economic and political arena. Major phase in international relations, which has been established several decades ago, but its formation was not completed by the beginning of the third millennium. However, the public attention it attracted only in 1990. Approaches towards Globalization The Indian companies are adopting the following approaches to globalization- The First Approach is the Reliance approach. Here the Indian company attains global parameters of production but its market focus is mainly domestic. E.g. Bajaj Auto, Hero Cycles, Maruti Udoy, BHEL, Mahindra & Mahindra. The Second Approach is the Sundaram Fasteners route where an Indian Company emerges as a global sub-contractor. The Chennai based Sundaram Fasteners is now a major supplier of radiator to GM. The Third Approach is the one personified by the Tata Tetley deal itself. Taking over foreign companies or investing in the foreign ventures....
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...Financial Liberalisation and Price Stability in Kenya[1] Anders Isaksson Department of Economics, Göteborg University Box 640 S-405 30, Göteborg, Sweden. Abstract It has been postulated in the literature that attempts to liberalise the financial sector when inflation is high can lead to high interest rates and even higher inflation. Thereafter. when inflation is fought, a period of low inflation and high real interest rates follow. Since Kenya experienced this sequence, it appears that prices were unstable before and during the financial liberalisation. This paper argues that this was not the case as evidenced by cointegration between the involved variables and the abliltv to estimate a stable inflation model over the period 1970-91. When the cointegrating relationship breaks down, which it does in Kenya after the financial liberalisation, economic agents can no longer forecast inflation with confidence using Historical data. This breakdown of the cointegratina vector implies that agents switch to forward-looking behaviour, perhaps an indication of lack of credibility, in the financial liberalisation process. JEL Classification numbers: E31, E44 and O11 Kevwords: Kenya, Price stability, Financial liberalisation, Cointegration, VAR. 1. Introduction As part of its financial-sector reform, Kenya liberalised interest rates between January 1988 and July 1991[2]. Subsequently, market interest rates skyrocketed, while inflation rose even further. When undertaking financial...
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...Evaluate the disadvantages of further trade liberalisation to country of your choice. Trade liberalisation is defined as removing barriers to trade between different countries and encouraging free trade. By removing trade barriers, it could have a negative impact on poor and developing countries (for e.g. Nigeria) as structural unemployment may occur in the short term. This is because when a country imposes restrictions on free trade, the aim is to usually protect domestic industries from cheaper and more efficient foreign competition. If these restrictions were lifted to an extent that it puts a large number of domestic businesses out of work then it will impact a large number of workers, their families and could dramatically change their lifestyle. A country like Nigeria could not afford for this to happen as there are already a large number living in poverty. In addition, it is also possible that unemployment goes so high that government assistance will be necessary. This would be fine if it were to happen in the UK for example, where we have a government which has funds to accommodate benefits and JSA but in a developing country like Nigeria, government intervention is not always possible. Another disadvantage of further trade liberalisation in Nigeria is that it can lead to pollution and other environmental problems. The current pollution levels in Nigeria are seriously high therefore if the country was to engage in free trade it will add to the current environmental problems...
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...Pros and Cons of Liberalisation , Privatisation and Globalisation (LPG) , LPG in Developed and Developing Countries LIBERALISATION The main aim of liberalisation was to dismantle the excessive regulatory framework which acted as a shackle on freedom of enterprise. Over the years, the country had developed a system of “license-permit raj.” The aim of the new economic policy was to save the entrepreneurs from unnecessary Harassment of seeking permission from the Babudom (the bureaucracy of the country) to start an undertaking. Similarly, the big business houses were unable to start new enterprises because the Monopolies and Restrictive Trade Practices (MRTP) Act had prescribed a ceiling on asset ownership to the extent of Rs. 90 crores. In case a business house had assets of more than Rs.90 crores, its application after scrutiny by the MRTP Commission was rejected. It was believed that on account of the rise in prices this limit had become outdated and needed a review. The major purpose of liberalisation was to free the large private corporate sector form bureaucratic controls. It, therefore, started dismantling the regime of industrial licensing and controls. On April 14, 1993, the Cabinet Committee on Economic Affairs decided to remove three more items form the list of 18 industries reserved for compulsory licencing. The three items were: motor cars, white goods (which include refrigerators, washing machines, air-conditioners, microwave ovens etc.) and raw hides...
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...THE GROWTH EFFECTS OF FINANCIAL LIBERALISATION PROGRAMME IN EGYPT: DEVELOPMENTS AND DRAWBACKS (Key Words: financial liberalisation, economic growth, Egypt) DR. Ayman M. Ebrahim Faculty of Commerce and Business Administration Helwan University Ein Helwan , Cairo E-mail: ahendy@ksu.edu.sa hendyayman@hotmail.com ABSTRACT The paper begins with a review of theory and recent empirical evidence relating to financial liberalisation and economic development. Among the countries that underwent financial liberalisation programmes in the 1990s, Egypt appears to have performed well. Although the internal and external shock to the economy and the associated drawbacks in the financial liberalisation programme, over the past decade, which brought the experience of financial liberalisation, the Egyptian economic performance improved. Its aggregate growth rate was positive and macroeconomic variables moved in a favourable direction in accordance with the predictions of the financial liberalisation paradigm. The econometric test specification follows the nonlinear least-squares estimations methodology to test the co-movement of the underlying variables. INTRODUCTION The financial liberalisation paradigm encourages nominal interest rate liberalisation, the reduction or abolition of reserve requirements, the elimination of inflationary finance, the removal of other forms of taxation on...
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...In order to trace the events that led to the eventual collapse of the Asian economies, one must venture across the ocean to the United States. The issue of liberalisation first gained attention in the US during the Regan Administration. However, it was during the Clinton era that liberalization became a top priority. Whereas previous governments had pushed for the liberalisation of Japan, one of Clintons main foreign policy objectives was the liberalisation of the Asian economies. This process was pushed forth in Asia with such vehemence because the region held a lot of investment opportunities for American Banks, Brokerages, and other financial sector businesses. Unfortunately, Asia�s economies were not structurally ready to deal with the influx of capital that was headed their way. They had weak banking and legal systems that were unable, or unwilling, to regulate the flow of foreign capital in the country. The Americans eventually persuaded Koreato relax its capital flow regulations by giving it the option of joining the Organisation for Economic Co-operation and Development. Even then, Korea was concerned that its financial institutions may not be able to deal with an influx of foreign capital. One fatal mistake that Korea, as well as other Southeast Asian countries made, was that they opened their capital markets in the wrong way. They did not allow long term investments in Korean companies, but rather, only short-term investments that could be removed easily. One example...
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...EXECUTIVE SUMMARY 1. Issues The meaning of Open Sky in the ASEAN must be determined. For the purposes of this Report, it is taken to refer to a situation of extensive liberalisation within the ASEAN region. It concentrates on the international links between members of ASEAN, and is not so concerned with domestic cabotage. The report does not focus on beyond rights, or on 5th freedom operations of non-ASEAN airlines within the region, though it recognises that these can have an impact on Open Sky arrangements. The rationale for Open Sky is taken to be to promote competition in the airline industry, and to give all airlines from ASEAN the scope to compete on intra ASEAN routes. Open Sky will also give airlines extra flexibility over their route development. Issues which need to be considered include: How well Open Sky will work in ASEAN? Will markets be competitive enough? Will there be shifts in hub location? Will anti competitive strategies affect operation? And will there be instability in the industry? 2. Experience of Open Skies Elsewhere There are many Open Skies bilateral agreements, and a few regional agreements. Few regional Open Skies agreements have led to substantial liberalisation or integration. The exception is Europe - Open Skies in Europe has meant the formation of a single aviation market. Significantly, this arrangement did not come about as a result of countries negotiating an open skies agreement - rather it was imposed on them by a central...
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...its authors only and does not necessarily represent the official position of the European Commission. Contents 1.0 2.0 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 PAGE INTRODUCTION ...................................................................................... 3 KEY ENERGY MARKET FACTS............................................................. 4 Status and impact of gas market liberalisation .......................................................4 Market structure ...........................................................................................................5 Gas supply and demand ..............................................................................................6 Gas prices ....................................................................................................................7 Investment....................................................................................................................7 Status and impact of electricity market liberalisation.............................................7 Regulator......................................................................................................................8 Market...
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...développement. Il devait permettre l’accès des produits agricoles des pays en développement sur les marchés des pays riches et une baisse significative des douanes sur l’agriculture. Mais face au désaccord permanent entre les différentes parties, le directeur général de l’OMC, Pascal Lamy, a officiellement suspendus les discussions en 2006. Il se sera déroulé de 2001 à 2006. Avec la crise de 2008, et le sommet de Pittsburgh, le cycle devrait se conclure courant 2010 ou 2011. En detail, Le cycle de Doha a été entravé jusqu’ici par une alternance frustrante d’avancées et de reculs. Le monde aurait pourtant beaucoup à gagner à une issue favorable des négociations en cours, surtout si l’on en croit l’estimation selon laquelle des gains de la libéralisation du commerce qui s’ensuivrait pourraient atteindre 500 milliards de dollars. Mais il sera difficile de déboucher sur des résultats significatifs : les partisans résolus...
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...qt et ert erte ter t er ter t qt ret eyu tfgh sf jk uytrhde rtykj uyjhty gfrgtkr76thrhe economic liberalisation in India refers to the ongoing economic liberalization, initiated in 1991, of the country's economic policies, with the goal of making the economy more market-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalization has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. Its opponents have blamed it for increased poverty, inequality and economic degradation. The overall direction of liberalisation has since remained the same, irrespective of the ruling party, although no party has yet solved a variety of politically difficult issues, such as liberalizing labour laws and reducing agricultural subsidies.[1] There exists a lively debate in India as to what made the economic reforms sustainable.[2] Indian government coalitions have been advised to continue liberalisation. India grows at slower pace than China, which has been liberalising its economy since 1978.[3] The McKinsey Quarterly states that removing main obstacles "would free India's economy to grow as fast as China's, at 10% a year".[4] There has been significant debate, however, around liberalisation as an inclusive economic growth strategy. Since 1992, income inequality has deepened in India with...
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...ECW 3301: CASE STUDIES IN INTERNATIONAL TRADE SEMESTER 1, 2016 ASSIGNMENT DUE DATE: Wednesday 4th May 2016; by 5pm Value: 15% Length: 2,500 words (excluding tables and figures) Instructions: The assignment is worth 15% of the total assessment. This assignment will be marked out of 100%. Assignments should be computer-typed, double spaced, having a font size of 12. All pages must be numbered accordingly. All figures must be plotted using computer (i.e,, using the Microsoft Excel program), do not “copy-paste” from other sources. This is a group assignment. A maximum of 3 students can form a group to hand in the project. Your answers must be original. All assignments must have a cover sheet and include a signed declaration that the work has not been plagiarised. Any student suspected of copying another person’s work or plagiarising from the internet will be thoroughly investigated. You need to send your assignment to Turnitin. You can first submit to Turnitin under “Assignment Submission - For Checking” and view your Turnitin report on the level of similarity between the submitted text and other. As a guide, NO more than 20% of your assessment should be quoted material, the reference list or bibliography is not included in this percentage (in both Turnitin for checking and final submission, please remove your reference list or bibliography). Submit the hard copy of your assignment (with cover page, group member...
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...The process of globalisation is best defined as a movement towards greater economic integration between countries through reduction in the barriers to free trade. The process of globalisation accelerated in the 1990a and 2000s due to the spread of new cost saving technology in transport and communications and the deregulation of financial markets. Indonesia is the largest economy of the South East Asia economic region, having the fourth largest and the 19th largest economy; it is an emerging economy that has increased international integration in recent decades. Although Indonesia has a large economy, it also has a very large population, estimated around 237million people in 2010. Having low standard of living with a national income of $3600 per person, this makes Indonesia rank 147th in the world for income level. This classifies it as a low-middle income economy by the World Bank. Indonesia’s low level of income means that it suffers from a relatively high incidence of poverty, around 30% of the population lives on less than $US1.25 per day. Indonesia suffers from low levels of economic development. According to the United Nations, Indonesia’s HDI of 0.734 is below 110 other economies. Income Inequality in Indonesia, as measured by its Gini index of 37.56, is similar to other economy in the region such as Malaysia and Vietnam. The distribution of income is more equal than in many countries, such as Thailand, the Philippines, or major economies such as China or the United States...
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...OXFORD HOUSE COLLEGE MBA Assignment INTERNATIONAL BUSINESS ENVIRONMENT “ The Contrasting Perspectives and Interests of Developed and Developing Coutries with Respect to Global Trade Liberalisation” by HAKAN AYDIN London MAY 2010 International trade is one of the international political economy’s most controversial subjects. The trade structure is the set of relationships between and among states, international organisations, international businesses and nongovernmental organisations that together influence and manage international rules and norms related to what is produced, where, by whom, how, for whom and at what price. Together with the international financial, technological and security structures, trade links states and other actors, furthering their interdependence, which benefits but also generates tension between and among these actors and different grroups within them. International trade is a process that occurs when goods and services cross national boundaries in exchange for money or the goods and services of another nation. Trade is always political and the most debated topic in international political economy. In the absence of a world government, cross border trade is always subject to rules that must be politically negotiated among nations and sovereign in their own realm but not outside their borders. (Kuttner Robert and Knopf, 1991, p:157) International trade ties countries together, and in so doing, generates...
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