Global Insolvency Research Articles

The Myth of Debtor-Friendly or Creditor-Friendly Insolvency Systems: Evidence from a New Global Insolvency Index

The Myth of Debtor-Friendly or Creditor-Friendly Insolvency Systems: Evidence from a New Global Insolvency Index

Global Insolvency Proceedings for a Global Market: The Universalist System and the Choice of a Central Court

In this time of relative prosperity, large multinational companies are filing insolvency proceedings all over the world. Restructuring is now part of the daily routine of global business — back then a bit more, at the moment a bit less, but always a stream of needed repairs. The overall challenge is to manage damaged enterprises across borders in a world governed by nation-states. In this paper, I suggest that we should enlarge our perspective to embrace not only the Model Law on Cross-Border Insolvency (Model Law), but also the larger system of modified universalism that it both presupposes and anticipates.

Кризис: метафора и сущность

The purpose of this article is to establish the contextual environment of the concept of "crisis" in economic and socio-philosophical context.
 To achieve objectives the methods are used to estimate economic models and theories on the basis of socio-philosophical approach.
 As a result of the conclusions that are logically correct term "crisis" is only possible in local areas of knowledge, and a comprehensive interpretation of the crises is not productive. In the Russian context special direction of research crises dominates - in the framework of anti-crisis enterprise management.
 Partial conclusions and recommendations of economic science in relation to crises do not meet the criteria reentrancy for different socio – economic conditions or types of objects. Diagnosis of the crisis confirms the ambiguity of findings regarding a crisis situation.
 Relative to global economic theories given the conclusion that the challenges to anticipate and overcome the crisis cannot be solved within existing economic theory methods.
 
 Development of mathematical apparatus, the introduction in the model of logical and qualitative indicators, the construction of behavioral models developed understanding of socio-economic systems and processes. But it is not allowed to create a universal economic theory of sustainable development and crises. The effectiveness of local approaches and global insolvency is discovered. Conclusion: in the framework of economic theory there cannot be formulated the minimum and sufficient set of consistent axioms required for solving problems of crisis.
 
 Partial conclusion is made that the main issue of crisis management is the question of ownership of the company, as well as its obligations to external agents.
 
 The scope of the results – socio-economic system, crisis management.

The Context for Cross‐Border Insolvency Law Reform in Sub‐Saharan Africa

AbstractCross‐border insolvency literature has developed significantly in recent years. However, the scholarship that has evolved lacks an insight from the perspective of Sub‐Saharan Africa (SSA). Existing theories on cross‐border insolvencies, and the global insolvency benchmarks that emerged in the recent years, have almost exclusively been developed from the best practices obtained in advanced economies. Accordingly, the context within which SSA cross‐border insolvency reform may be undertaken must be determined and explored given the pressure towards globalisation and the potential for the pressure to result in unsuitable legislative reform. This article sets out the context for cross‐border insolvency law reform in SSA. It raises issues that are likely to arise during the reform process and challenges that may be faced. Copyright © 2014 INSOL International and John Wiley & Sons, Ltd

On Globalisation of Regulation

In this article the opinion that financial regulation should be dealt with on a national, and not on a global scale is criticised. The objections against global regulation are discussed and dismissed. The greater good of a solid global system is inconsistent with maintaining the full force of national social or economic policies. Bob Wessels submits that the best way forward is to look for (a combination of) the best methods of regulation on the basis of geography, the nature of regulation itself (hard law, best practices, guidelines), the function of certain rules in relation to the goals or the expectations they aim to address and the character of these rules. A parallel is drawn with the way in which cross-border insolvencies are regulated, including solutions from practitioners in the global insolvency of Lehman Brothers Group of Companies. Given the essential role courts play the presence of new rules of the international insolvency should be supported by more robust rules for the cross-border judicial coordination of cross-border cases, such as a convention. The body of financial regulation should be guided by international accepted principles and guidelines and international regulation and national implementation should reflect a balance between what is necessary in the light of the past events, while still leaving room for fair national demands and policies. The allocation of clear responsibility and authority to regulating bodies should warrant an efficient and effective answer for what, at the core, is a global problem, related to international financial markets.

Political geography of contemporary events V: Crisis, what crisis? Monetarism, Brandt II and the geopolitics of debt

This paper reviews three interpretations of an international debt crisis now stumbling to some sort of ‘first-stage resolution’-if the Financial Times (24/11/83) is right so to describe a situation where the Third World is in debt to the tune of 590 billion dollars, and where the IMF is active in the economic management of at least 14 Southern nations. It looks first at the monetarist perspective advanced by Lal and Beenstock, and given political expression at the Recent Williamsburg summit by the governments of the USA, the UK and West Germany. This draws a distinction between a crisis of global insolvency and (today’s) temporary liquidity shortfall in a self-equilibrating world system. Politically, it cautions Northern treasuries against a precipitate increase in world reserves, and asks them to sit tight for the spontaneous recovery which will follow present sound money policies. Section two contrasts this view with the Keynesian theorizing that underlies the second report of the Brandt Commission, Common Crisis (1983), and which is evident in the calls of the French Government for a second Bretton Woods conference. This challenges the cyclical schemas of monetarism and insists that the present crisis must be understood as the secular outcome of: (1) the relative decline of official capital flows, (2) the increased importance of petrodollars recycled through the Eurocurrency markets, (3) the second oil price hike, and (4) the policies of competitive deflation pursued by the major Western powers. In political terms it rejects the self-balance hypothesis and urges Northern governments to reflate the world economy by a new and significant issue of Special Drawing Rights (that is, by a net addition to global liquidity). Finally, the paper submits these recommendations to the geopolitical critique of Riccardo Parboni. His analysis suggests that if the Keynesians have correctly identified the proximate economic loci of the current malaise, they have failed to identify its deeper geopolitical roots. Specifically, they have failed to see that the United States has a vested interest in maintaining the hegemonic position of the dollar, and will continue to resist a healthy new issue of SDRs so long as it can use this ‘financial seignorage’ to ward off the economic onslaught of its more competitive rivals in the EEC and Japan. More than this, it suggests that the Brandtian goal of easing North/South tensions may itself depend on a prior resolution of the geopolitical disputes now racking ‘the disintegrating West’ (Kaldor,