Impressive Economic Performance Research Articles

The impact of financial development on income inequality and poverty.

The Turkish economy has undergone a structural transformation with impressive economic performance during 2002-2018 and then a slowdown. The implementation of policies on the financial markets results in a significant capital inflow, which leads to an increase in the volume of domestic credit. Despite improvements in Türkiye, income inequality and poverty are still relatively high. While much of the literature shows that financial development accelerates growth, there is no consensus on its clear impact on poverty and inequality. While some studies stress that financial development improves inequality and combats poverty by increasing the ability of advantage of new investment opportunities, and by improving the allocation of capital, others point out that the beneficial impact of financial development depends on whether the overall population or the upper-income groups benefit or not. Therefore, this paper aims to empirically investigate the impact of financial development on inequalities and poverty during the 2002-2017 period when Türkiye relatively has been prosperous. According to simultaneous equation regression findings, the widening of the financial sector leads to more equal income distribution and poverty alleviation.

Review of Korean Imitation and Innovation in the Last 60 Years

This review is dedicated to analyzing South Korean technological progress, which has shown impressive economic performance, which has earned South Korea a well-deserved place among industrialized countries. Korea’s advances in the electronics, semiconductors, automotive, and shipbuilding industries have demonstrated industrial maturity and high innovative ability. To understand how they reached their position today, we have to understand to the core of the process by researching the roots of these innovations over the past 60 years, identifying specific innovations and tracing their transmission throughout South Korea. The technology transfer and development model of South Korea is unique. After other countries refused to license and transfer modern technologies to this country, Korea resorted to its national research system to add innovative content to its imitative products. This review article summarizes the experience of Korea, from not having access to technology to innovation and economic progress, which led to increases in per capita income, the prosperity of urbanization, and the recovery of markets. The model of technology transfer in Korea is valuable, especially for today’s developing countries. What it offers is not pure theory, but rather a successive series of procedures undertaken by the government of Korea. It has not been a matter of chance, and their economic prosperity was not due to the sudden discovery of natural resources.

Federalism, development and the changing political dynamics in Ethiopia

In the last two and half decades, Ethiopia has undertaken remarkable political and economic changes at the center of which is the transformation of the country from a highly homogenizing and centrist rule to a federal system that aims to manage the country’s complex, politically mobilized ethnonational diversity. Ethiopia continues to register impressive economic performance but at the same time is facing political instability. This article seeks to explain two major paradoxes: Why has the federal system, with its promise of self-rule that ensures autonomous self-government and representation in federal institutions, not been able to ensure political stability, and how does one explain the emerging protests and uncertainties? Two factors explain the puzzle. The idea that development is centrally designed and managed along with the identification of poverty as an existential threat against which all resources have to be mobilized means that development takes an overriding priority thus compromising self-rule. While federalism and the developmental state are two major pillars of the EPRDF-led government, they have not been aligned well, as the latter became an overriding ideology.The outcome as witnessed in the latest protests is new mobilization and conflict unleashed by growing ethnonationalism. The vanguard party that has monopolized political power and overshadowed the institutions also sidelined the political opposition while emboldening hardliners leading to political instability.

Federalism and Development: The Ethiopian Dilemma

Key to Ethiopia’s remarkable political and economic changes is its transformation from highly homogenising and centrist rule to a federal system aiming at managing its complex diversity. The post-1991 dispensation has ended years of civil war, and served as a foundation for the impressive economic performance. Lately the country has continued to face wide-spread protests. How does one explain the paradox between an impressive economic performance versus growing political instability? Development is centrally designed and managed along with the identification of poverty as an existential threat against which all resources must be mobilised. This means that development takes overriding priority and a central role, compromising the constitutional autonomy of the states. The outcome as witnessed in the protests is new mobilisation and conflict unleashed by growing ethno-nationalism. The absolute dominance of a single vanguard party that monopolised power has also overshadowed institutions and sidelined political opposition while emboldening hardliners.

The Relationship between Economic Growth and Transformation of Democracy of Bangladesh (A Historical and Strategic Analysis)

The Relationship between Economic Growth and Transformation of Democracy of Bangladesh (A Historical and Strategic Analysis)

A Transformed Turkey: What is the Role for Ankara as a Regional Power?

Over the course of a decade, Turkey has transformed itself from a status quo-oriented, peripheral member of the North Atlantic Treaty Organization (NATO) to an emerging power with an ambition to shape regional power dynamics. This transformation was accomplished in two phases. In the first phase, backed by its impressive economic performance, Turkey emerged as an influential regional actor, prioritizing its soft power. The second, ongoing phase was prompted by the Arab Spring and Turkey’s need to respond to these changes. This paper examines the drivers of both transformation phases and evaluates the consequences for Turkey’s relations with its neighbors. The First Big Change: A Quest for Strategic Autonomy 1 Since the founding of the Turkish Republic in 1923, Ankara’s foreign policy has had one overriding objective: to assist with the country’s transformation into a modern nation state. The founding fathers of modern Turkey wanted to make a clear break with the country’s Ottoman past. Therefore, imperialist policies were replaced by policies that contributed to the modernization of Turkey, and the Westernization of Turkish society. A consequence of this national objective, however, was the loss of Turkey’s strategic autonomy. The Cold War dictated Turkey’s strategic dependence on the United States, which acted as a global security provider. With its eastern frontier bordering the Soviet Union, Turkey sought to ensure its security by joining NATO. Membership in the alliance affected Turkey’s foreign policies and limited its policy space. As a NATO member, Turkey found it difficult to diversify its relations with many of its neighbors that were part of the Warsaw Pact or members of the Non-Aligned Movement. After 1960, the drive for Turkey’s membership in the European Union (EU) generated a similar dynamic. While the EU membership process helped Turkey to vastly improve its democratic deficit, it also enhanced Brussels’ leverage over Turkish policy. As a result, Turkey was constrained by the need to align itself with the Western consensus. Turkey’s ruling elites accepted the trade-off between security and autonomy as the cost of Turkey’s Westernization.

Why Ireland's Luck Ran Out and What this Means for the Eurozone

Given its impressive economic performance over the past two decades, Ireland earned the title, the ‘Celtic Tiger’. However, as the contagion from the subprime-induced global financial crisis spread, Ireland's boom went bust. In short order, Ireland (like Greece before it), had to seek financial assistance from the EU and the IMF to stave off sovereign default and national humiliation. How did Dublin and the eurozone respond to the crisis and what lessons can be learned from Ireland's experience? While Ireland grapples with its huge public debt, the EU needs to instill confidence in the markets before the current rolling debt crisis becomes a systemic threat to the eurozone.

Sovereign Wealth Funds: An Assessment

High oil prices and impressive economic performance in emerging markets have led to the accumulation of massive financial assets. These nations have created sovereign wealth funds (SWFs) to manage their growing assets. SWFs have provided significant liquidity to American and European financial institutions. The rise of SWFs in number and size has raised concern about their objectives and strategies. This study examines the role these state-owned funds play in the global markets and the efforts to regulate their activities. I argue that capital exporting and importing nations share common interests and reciprocal responsibility in ensuring global financial prosperity. Policy Implications • Sovereign wealth funds are currently important players in the international financial system and are projected to become even more influential in the future. • Sovereign wealth funds investments are driven more by commercial interests and less by political objectives. • The interests of capital exporting and capital importing nations are not mutually exclusive. Rather, both seek economic prosperity and political stability. • Too much regulation of sovereign wealth funds’ activities is likely to weaken cross-border trade and investment. • Sovereign wealth funds should gain the confidence of host countries by accepting a high level of transparency.

Russia and the CIS in 2008: Axis of Authoritarianism?

Russia's seamless presidential succession produced no major changes in domestic politics or foreign policy. Ties with Asia remained strong, though several key relationships—with China, Japan, and the Central Asian states—frayed under the impact of Russia's military action in Georgia. Impressive economic performance in the first half of the year boosted Russian confidence as a great power, but its vulnerability to the global financial crisis together with the heavy-handed operation in the Caucasus undermined Moscow's standing with both Asia and Europe by the end of the year.

Uganda: 2008 Article IV Consultation and Fourth Review Under the Policy Support Instrument: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Uganda

The staff report for Uganda’s combined 2008 Article IV Consultation and Fourth Review Under the Policy Support Instrument is presented. Building on a foundation of two decades of sound policies, Uganda achieved an impressive economic performance, with high growth, low inflation, and steady poverty reduction. The deteriorating economic environment could expose weaknesses in banks’ risk management practices, gaps in home-host supervisory arrangements, operational risks as financial innovation outpaces banks’ systems and controls, and increasing risk appetite owing to intensifying competition from the surge of new banks.

Laos: At the Crossroads

There was no diversion in 2007 from the policy directions set down by the Eighth Congress of the ruling Lao People's Revolutionary Party (LPRP) in March 2006. The Lao People's Democratic Republic will remain a one-party state with old-style, Soviet-era political institutions, while encouraging free enterprise and foreign investment. The outcome has been a remarkable political stability, and an impressive economic performance. The economy has been booming at over 7 per cent growth for the past two years, due largely to massive foreign investment in the development of hydroelectric power and gold and copper mining as well as a rapidly expanding tourism industry. According to the government's poverty reduction plans, the country, which now has a gross national income (GNI) per capita of approximately US$500, should by 2020 exit Least Developed Country (LDC) status ? or countries with a per capita income of a three-year average of less than US$750, and some other criteria ? and join the ranks of middle-income countries. So far, only two of the nearly fifty LDCs worldwide have managed to pass the threshold by leaving LDC status and moving on to a level whose lower limit of having a GNI per capita exceeding US$900 is required for obtaining the middle-income status: Botswana in 1994 and Cape Verde in 2007. For Laos to graduate in a similar manner, it would have to achieve a more even distribution of wealth, improve education, and, perhaps above all, take stern measures against corruption. With more money in circulation and more goods available in the markets ? combined with abysmally low salaries for civil servants ? it is hardly surprising that the World Bank and other international

India´ s Geopolitics and Southeast Asian Security

slowly. The debate on India's rise and its implications for Asian and global balance of power centres around the new expectations and residual scepticism about the sustainability of India's recent impressive economic performance — of around 8 per cent annual growth rates during the first decade of the twenty-first century. If India can maintain this performance, India's political and military weight in Southeast Asia will undoubtedly improve. The last few years have also seen the maturation of India's Look East policy launched in the mid-1990s. The expectations on India's rise have also begun to inject a new dynamism into India's relations with the great powers of Asia — the United States, China, and Japan. As a result, India is no longer marginal to either the regional politics of Southeast Asia nor the great power system that shapes it. For the first time since the mid-1950s, when its economy turned inward and its foreign policy drew closer to the Soviet bloc, India is now becoming an important factor in the security calculus of Southeast Asia.

Fundamentalism and Bangladesh

Even though the record-setting August 2005 explosion of over 500 bombs across Bangladesh killed only three people, the question if this is a new threat arena doomed to inflict even higher casualties cannot be escaped. Narrowing a generic discussion of fundamentalism, globalisation and terrorism to Bangladesh shows how five types and three levels of fundamentalism utilise globalised channels to bring terrorism closer. Distinguishing between mainstream and extremist Islam, the study finds that while legitimate participation in political coalition making empowers Islamic parties, it also unwittingly opens doors to jihadis. Alienated by chaotic politics, as people increasingly seek religious reassurances, jihadi entrepreneurs even benefit from an opportunity: exploiting 250,000 Bihari and 300,000 Rohingya refugees languishing in Bangladesh, utilising Wahhabi money, for whatever the purpose. The case is made to absorb refugees to reduce the potential terrorist pool, and thereby give meaning to the impressive ongoing economic performance.

What India Can Learn from China and Vice Versa

AbstractA partial convergence of the Indian and Chinese growth models is likely. Judging from China's experience, sustaining India's impressive economic performance of recent years will require a significant further opening of its economy (externally and internally), higher savings and investments, especially in physical infrastructure and social services, and stronger labor absorption in the modern sectors. The base of India's current economic boom — software, IT‐related services and high‐end manufacturing — is narrow compared to China's. Poor performance in agriculture is responsible for still significant poverty in many parts of rural India. Bilateral India—China ties, including trade and investment, are increasing rapidly and could help to bring about the structural economic changes India needs. Through its exports to China, India is becoming linked to global supply chains centered on China. The notion that India—China relations are, or are bound to become, fundamentally antagonistic, held by many in the USA, is mistaken and potentially dangerous.

India's Growth from China's Perspective

Bilateral India-China ties, including trade and investment, are increasing rapidly to the benefit of both countries. Looking at India's impressive economic performance of the last 10 years from the perspective of China's experience suggests that sustaining high growth will require a significant further opening of its economy—both externally and internally—a higher national investment rate and stronger labour absorption in the modern sectors. The base of India's current economic growth model—IT-related services and high-end manufacturing—is too narrow. India's poor performance in agriculture is the most important source of massive rural poverty in many parts of the country. Its greatest source of economic strength, a dynamic and relatively highly developed private corporate sector—an area where China lags—can be leveraged more effectively for national development. A partial convergence of the Indian and Chinese growth models is indicated and appears likely. The notion that India-China relations are, or are bound to become, fundamentally antagonistic—held by many in the United States—is mistaken and potentially dangerous.

India in 2005: India Rising, but Uphill Road Ahead

Propelled by an impressive economic performance in recent years, India engaged actively as a global player in international affairs, particularly in relation to the United States. Sustaining this drive for engagement will, however, require both deft geopolitical management and overcoming continuing serious challenges at home.

Analysing workplace safety policies in hong kong with a simulation method

Despite its impressive economic performance and high per-capita income, Hong Kong's workplace safety record lags behind leading industrial countries. This paper develops a computable equilibrium model of workplace safety in Hong Kong that predicts the changes in safety levels after substantial policy modifications. We find that accident rates would fall if workers' compensation insurance was more experience-rated or if fines for violations of the safety codes were raised. We also find that a progressive injury tax aimed at accident-prone firms would sharply lower the accident rate. In contrast, large increases in workers' compensation benefits have only a minor effect on the safety level.

Indonesian economic recovery process and the role of government

Indonesia is currently known as a country adopting the wrong sequencing in their liberalization process. Despite impressive economic performance in the 30 years before the recent crisis, Indonesia suffers from several weaknesses and vulnerabilities in both banking and corporate arenas. The Indonesian economic crisis was caused by a sudden loss of market confidence leading to abrupt capital outflow. The IMF plan was designed to regain and restore the market by imposing wide-ranging programs, but the designated steps are not without criticism. Sustainability of economic recovery in Indonesia depends on two important programs, stability in the macroeconomic environment, and the implementation of a sound and credible restructuring of corporate debts along with strengthening of the banking institution. Public policy process outcomes are becoming complicated and difficult to predict under the democratic system. Indonesia’s legal and judicial systems are still very weak, and often unable to safeguard public interest. Such weak quality institutions combined with the new political competition will, at least in the short run, result in more policy distortions, with the burden of cost shouldered by public interest.

Behind China's Success Story: Comparing the Economic Development of China and India

Comparing the economic development in China and India has been interesting. While one has experienced an impressive economic growth performance, the other seemed to take a slower path. One popular argument says that the answer lies on China's success on attracting foreign capital. This argument is supported by some stylized facts related to the explanation for a country's attractiveness for foreign capital.The main idea of this essay is that China's relative success over India is a result of its unique characteristics. The purpose of this essay is to deliver supporting arguments for such hypothesis by analyzing the stylized facts. The readers should note that the scope of this essay is the internal determinants of the relatively different speeds of reforms, rather than the policy analysis.The essay is presented in three parts. The first part reviews the identical conditions which both countries shared in the beginning. The second part shows the different success stories. The third part is the comparison of some unique conditions which influenced the different outcomes of development.

Polish Socioeconomic Development in the 1990s and Scenarios for EU Accession

POLAND'S TRANSFORMATION from a species of planned economy, worn-out and poorly functioning, started in August 1989. At that time the country was widely considered to be the pioneer in transformation and its first non-communist government commanded much interest in Western government, business and financial circles. Yet despite a broadly successful attempt to deal with immediate problems and stabilise what was in 1989-90 an economy facing hyperinflation, Poland's neighbours, Hungary and Czechoslovakia, soon became viewed as much more appealing and attractive business destinations, as well as more 'robust' system transformers. This perception did not change even as Poland became the first economy in the region to resume growth after the deep slump of 1989-91. Throughout the early 1990s the baton in the contest over economic transformation was passed between Hungary and the Czech Republic and it was only relatively recently, after confidence in the Czech economy was dented in early 1997, and as Poland's exceptional GDP growth dynamism became clear, that it became the subject of greater investor enthusiasm.1 By 1998, not far from the 10th anniversary of the collapse of communism, Poland was again widely considered as one of the most successful pioneers in economic transformation. Moreover, it was viewed as an economy where 'fundamentals' were sound, with most economic indicators (growth, inflation, foreign direct investment) moving in a healthy direction, and which looked reasonably strong in the face of the much greater uncertainties on the international economic scene following the 1997-98 crises in South-East Asia, Russia and Brazil. Even the current account deficit, which widened sharply in 1996 and was for a time a cause of concern, was held to 3% of GDP in 1997 and to 4.4% in 1998.2 Given the 'green light' by the EU in 1998 to begin accession negotiations, Poland seemed to be once more a front-running transformation economy ready to be included in the first wave of EU enlargement eastwards.3 Nevertheless, since the start of detailed negotiations some doubts have crept in regarding the likelihood of the smoothness or otherwise of Poland's EU accession. Despite impressive mid-1990s economic performance, some observers, arguing largely but not exclusively on the basis of Polish domestic political developments, have cast doubt on the country's readiness for EU membership. In the worst case it has been suggested that Poland may miss out on the first wave of expansion.4 Others have identified underlying (and perhaps growing) EU indifference as another barrier to long-awaited EU enlargement.5 The internal politics of EU reform-from CAP to