Sound Finance Research Articles

Civil society and control of corruption: Assessing governance of Romanian public universities

Romania is perceived as the most corrupt EU member state according to Transparency International Corruption Perception Index. In 2008–2009, a grassroots coalition of civil society organizations and education stakeholders created the Coalition for Clean Universities which organized the first assessment of integrity of the Romanian higher education system, The Coalition evaluated 42 state universities on the basis of an original methodology, in terms of Administrative Integrity, Academic Integrity, Democratic Governance, Academic Governance and Sound Finance for a time internal of one academic year. The evaluation found systemic problems in the organization and functioning of university life, and attributed them to the failure to build accountability systems at university level following decentralization of higher education after 1989. The results, in the form of a ranking of universities, were made public and hotly debated, creating a major incentive for universities to compete for a better public image, and therefore for reform of their practices.

Factors associated with the hypertension outpatients' choice of healthcare providers in Korea

T study was performed to identify hypertension outpatients' motivations in choosing healthcare providers i.e. tertiary hospitals, general hospitals (number of bed is more than or equal to 100), hospitals (number of bed is more than or equal to 30), and clinics for their care management and find the determinants influencing on their choice of healthcare providers. The unit of analysis was a hypertension outpatient visit (n=11,046). The χ2-test was performed to find the differences in choices of healthcare providers by patient characteristics. Additionally, ANOVA was employed to identify differences in out-of-pocket medical and medication costs by the type of provider. The 4 types of healthcare providers were then categorized into two levels (1=hospitals, 2=clinics), and finally, logistic regression analysis was performed to find factors influencing the patients' clinic visit for their care. Of the 11,046 cases, 82.9 percent of patients visited clinics for their care. The medical and medication out-of-pocket costs per case were the highest among the tertiary hospitals followed by general hospitals, hospitals, and clinics. Lower income and less education were associated with a higher frequency of clinic visits. The patients with National Health Insurance were more likely to visit clinics for their care than medicaid patients. Patients with any co-morbidity or disability were more likely to visit hospitals than patients without them. Patients taking any medical test were more likely to visit hospitals than those who were not. Patients with a medication prescription were more likely to visit clinics than those without. Not only for cost-containment to maintain a sound healthcare financing system, but also to reduce the burden of hypertension patients' out-of-pocket costs, policy-makers should pay more attention to encouraging chronic patients to visit clinics rather than hospitals for their care management.

A Study on the Legal Approach for Sound Financing against Public Fund Investment

A Study on the Legal Approach for Sound Financing against Public Fund Investment

A Liberal Economist and Economic Policy Reform in Nineteenth-Century Greece: The Case of Ioannes Soutsos

This paper analyses the critique of Ioannes Soutsos (1804–1890), the first academic economist of modern Greece, toward priorities, weaknesses and shortcomings of Greek economic policy of the 19th century. Emphasis is laid in his interventions in 1843 (when the first constitution was introduced), in 1863 (when a new king was appointed as head of the country) and in 1876-9 (when foreign lending was resumed after a long financial embargo against Greece). These interventions reveal a liberal economist who was a precursor in what is today known as constitutional economics, who stressed the role of efficient institutions for the promotion of economic development and favored sound public finance as a basis for a strong currency and a prerequisite of growth.The paper puts Soutsos' economic policy recommendations against his theoretical formation as an economist, and examines his views on methodology and the influences Pellegino Rossi and Jean-Baptiste Say exerted in his thought and writings. In this context European economic liberalism of the 19th century is revisited and the question about its relevance for the new-born states of South-Eastern Europe, where nationalism was a major ideological current, requiring a financially strong state, is examined.

Good management, sound finances, and social responsibility: Two decades of U.S. corporate insider perspectives on reputation and the bottom line

This research sought to expand practitioner and scholarly understanding of the relationship between corporate reputation and the bottom line. An analysis of 706 firms over a 21-year timeframe revealed three attributes of reputation – management quality, financial soundness, and social responsibility – made consistently positive contributions to several measures of firm financial performance. Perceptions of corporate reputation were gathered exclusively from U.S. executives, directors, and financial analysts, referred to herein as corporate insiders.

The All For Australia League in New South Wales

In 1931, the All for Australia League and other ‘citizens movements’ mounted a major challenge to the established conservative parties. Traditional views of the League saw it as a reflection of economic group interests, whether of the business establishment or dissident capitalists such as manufactures. More recent scholarship has stressed middle-class concerns with ‘sound finance’ as the inspiration of the League. This paper instead situates the League in the historical context of centre party projects in New South Wales, and of progressivism, in particular industrial psychology. The economic crisis and the rightward shift of the nationalists enabled a group of political entrepreneurs to transform the League from a front group for business into a populist movement. However, the shift of mainstream conservatism back to the political centre fatally undercut the League's support base.

SMEDA SME Policy Paper 2007 - A Critical Review

SMEs and sound financing of SMEs are latest trends in Pakistani educational and banking scenario. Although, the concept got importance during Bhutto regime of 70s, but never gained much strength especially to financial sector, until SMEDA and SME bank had not emerged during last decade. Pakistan, as we know it today, is a developing country with a GDP per capita ranking, recently shifted from Low income countries to Middle income countries, contains a lot to SMEs. Furthermore, SMEs existing in Pakistan are contributing a 30% of national GDP, 25% in export earnings, & employing about 78% of non-agricultural labor force. So, it is right time to develop and implement a sound, comprehensive, and coherent policy for all SMEs working in the country. While also right time for government, to develop a practical solution to problems and difficulties of this important, but neglected sector of the past. I want to tell you when I started analyzing this policy; I worked on following main lines, to have a critical analysis for this policy paper of SMEDA, given below: 1. I made a basic research, & studied some basic theories about global emergence/background of SMEs. 2. Then, I moved to discuss the basic introduction of SMEDA policy, my analysis of Pakistani SME sector and need for this policy, in form of quick review. 3. Then I made a critical analysis of policy objectives/scope/ principles, recommendations, implementation, & monitoring mechanisms. 4. Finally, I made a final conclusion of all above mentioned working of mine with some additional informative links, as well for my report's reader. Conclusion: After analyzing this policy paper, I think that this policy paper is not sufficient towards very complex needs and changing requirements of Pakistani SMEs, especially in its implementation part. Recently, in Pakistan we heard that hundreds of businesses have been closed due to shortage of Electricity, water, Sui gas (natural gas), or due to law and order situation (like assassination of Ex-Prime Minister of Pakistan in Rawalpindi). It is also heard that every day million of assets are being transferred to near Persian Gulf countries by existing business community, in such a scenario no SME can prevail and grow with reasonable level of certainty. Moreover, economically, this policy is viable but not focused for some excellence sectors in future, like a widely acclaimed adopted one village, one product model for microfinance and SMEs, this policy shall be focused on some specific businesses and product lines, instead of forming a mass of unplanned and less cost-effective SMEs, in today world of globalization and specialization.

Credible Commitments and Public Borrowing in Nineteenth-Century Argentina

This paper examines the role of constitutions in establishing credibility, and the role of political stability in enhancing it. I focus on the effect of limited government on the risk premium of Argentine government debt traded in London and Buenos Aires in the nineteenth century. During the period between 1820 and 1859, the absence of constitutional limitations was associated with credit rationing, short-term borrowing, and the use of money creation to finance public deficits. In contrast, after the adoption of a liberal constitution in 1860, there was a substantial reduction in the cost of borrowing and Argentina's debt capacity increased substantially. Despite these overall trends, the Argentine experience suggests that the establishment of a limited government did not fully resolve the problem of government credibility. Additional conditions, such as political and monetary stability, were further required to reduce the perceived risk associated with government bonds. These findings validate and support the view that constitutional checks and balances are a necessary but not a sufficient condition for sound public finance.

Deficits and Institutional Theorizing about Households and the State

In a pecuniary economy, households’ spending is limited by the stock of state money and the flow of income received in the form of state money. Thus, households are subject to liquidity constraint as they incur debts in the established unit of account, and consequently need to obtain the widely accepted medium of exchange (Wray 1998; Bell 2001). Even when households’ borrowing is unlimited, there is liquidity constraint to the extent that various interest rates and fees are administered by banks and business enterprises upon different households. Consequently, households are concerned with sound finance – or balancing their budgets at some point (albeit not at all times). The state’s spending, on the other hand, is not limited by a stock of money, since the state spends by issuing its own IOU (Knapp 1924). Thus, there is no instrumental reason why a sovereign state should follow “sound finance” (Lerner 1943; 1947; Wray 1998). The idea that a sovereign government or nation faces financial burden due to federal deficits is based on a state-household budget analogy, according to which, in much the same way a household goes bankrupt if its debt continuously exceeds its income flow, continuous government deficits are also unsustainable. The view of government “sound finance” holds that there is some “prudent” government deficit-to-GDP ratio in the same fashion that there are sensible household debt-to-earnings ratios that are used in reasonable lending practices. Under such an analogy, in the same manner that households have a time line for repaying their debts (even if they are rolled over) the state eventually will have to face the retirement of government debt. Thus, according to this view continuous government deficits are wasteful and constitute a “burden” for future generations. The household-state analogy does not differentiate households and the state as distinct institutions with specific characteristics, powers and liabilities. An Institutionalist discussion of this analogy with reference to household and

Developing the System of Drug Services in the Czech Republic

This paper begins with a brief overview of the status of Czech services for alcohol and drug users as they existed before 1990 (during the communist era). Particular attention is directed to the prominent figure of Jaroslav Skála and the treatment and training systems he pioneered. The second section of the paper concentrates on how the system of services evolved during the 1990s, after the fall of communism, and identifies the main factors affecting this development (the ongoing reform of health care, formation of the nongovernmental nonprofit sector, emergence of a national drug policy, and the reform of social services). The paper also describes characteristics of the current system of services for legal and illegal drug users. Included here are descriptions of the types of care available (low threshold services, ambulatory and hospital care, therapeutic communities, aftercare, and substitution programs), and an overview of their utilization. Specific features and weak points in the present system are addressed in broad terms. Financing and costs are addressed, with particular attention being paid to public grants at governmental, regional, and municipal levels. The paper also pays attention to the infrastructure of the system of services (coordination, training and education, quality assurance, etc.) as well as to research needs, training and quality assurance, and the effectiveness and efficiency of services based on sound financing, in order to promote innovative programs of care and to adjust existing services to the actual needs of the target population.

Globalization, Democracy, and the Evolution of Social Contracts in East Asia

A large literature on the East Asian welfare state has noted that government commitments to social insurance have historically been limited. However, this literature is backward-looking. Democratization has been accompanied by an expansion of social policy commitments in a number of countries in the region; this expansion even survived the Asian financial crisis. But closer inspection suggests that this experience depends on economic as well as political circumstances. High growth and structurally sound public finances underpinned social policy expansion in Korea, Thailand, and Taiwan, while erratic growth and structural fiscal problems limited the capacity of democratic governments in the Philippines to respond to long-standing social problems.

EMU and Central Bank: Chances Missed

Both the EU- and the EC-Treaties refer in prominent places to the establishment of economic and monetary union (Articles 2 EU and EC). This union is mentioned as one of the principal means of achieving the Union's and the Community's economic and social objectives. Such a prominent place is not allotted it in the Constitution. In its effort to separate the basic provisions from the other provisions in the treaties, the Convention decided to retain only the European Union's objectives in the actual constitutional part. The concrete activities pertaining to the economic and monetary union, as well as its ‘guiding principles’ of stable prices, sound public finances and monetary conditions and a sustainable balance of payments were relegated to Part III that deals with the Union's policies.

Dominant Capital and the New Wars

The recent shift from ‘global villageism’ to the ‘new wars’ revealed a deep crisis in heterodox political economy. The popular belief in neoliberal globalization, peace dividends, fiscal conservatism and sound finance that dominated the 1980s and 1990s suddenly collapsed. The early 2000s brought rising xenophobia, growing military budgets and policy profligacy. Radicals were the first to identify this transition, but their attempts to explain it have been bogged down by two major hurdles: (1) most writers continue to apply nineteenth century theories and concepts to twenty-first century realities; and (2) few seem to bother with empirical analysis. This paper offers a radical alternative that is both theoretically new and empirically grounded. We use the ‘new wars’ as a stepping stone to understand a triple transformation that altered the nature of capital, the accumulation of capital and the unit of capital. Specifically, our argument builds on a power understanding of capital that emphasizes differential accumulation by dominant capital groups. Accumulation, we argue, has little to do with the amassment of material things measured in ‘utils’ or ‘abstract labor.’ Instead, accumu-lation, or ‘capitalization,’ represents a commodification of power by leading groups in society. Over the past century, this power has been restructured and concentrated through two distinct regimes of differential accumulation—‘breadth’ and ‘depth.’ A breadth regime relies on proletarianization, on green-field investment and, particularly, on mergers and acquisitions. A depth regime builds on redistribution through stagflation—that is, on differential inflation in the midst of stagnation. In contrast to breadth which presupposes some measure of growth and stability, depth thrives on ‘accumulation through crisis.’ The past twenty years were dominated by breadth, buttressed by neoliberal rhetoric, globalization and capital mobility. This regime started to run into mounting difficulties in the late 1990s, and eventually collapsed in 2000. For differential accumulation to continue, dominant capital now needs inflation, and inflation requires instability and social crisis. It is within this broader dynamics of power accumulation that the new wars need to be understood.

The domestic policy of Prime Minister Hamaguchi Osachi

The Minseito cabinet under Hamaguchi came to government in April 1929. Hamaguchi appointed Shidehara as foreign minister and Inoue Junnosuke as finance minister. Hamaguchi carried on the 'internationalist' policy of Shidehara and at the same time he adapted the domestic policy such as lifting the embargo on gold and arranging a rationalization of industry. Hamaguchi started with combining industries and organizing unions. He was making the Japanese economy competitive enough in the international market through mechanization and expansion of productivity. He was trying to seek for an international policy of 'sound finance' by reintroducing the gold standard and was activating Japanese industrialists' trades and business in China. He supported the Japanese economic expansion in China in order to realize the development of domestic industries, the stability and improvement of the people's life. Hamaguchi favored disarmament and took an action over the London naval treaty. The Sumistu-in was against his idea, but he controlled it by force because he had a great support from the public and the Elder Statesman, Prince Saionji. Hamaguchi's purpose at that time was to cut military expenditures and to take on the leadership over internationalism. His vision collapsed after the Wall Street crash of autumn 1929. Hamaguchi was assassinated on the platform at Tokyo railway station in 1930. He recovered to resume his position as prime minister but died the following year.

Les think tanks font-ils la différence dans le système politique ?

The article discusses the role of independent research institutes (think tanks) in the Italian political system. We first argue why ajveus on think tanks can add to our understanding of Italian politics and policy change, and then provide information on research institutes and the challenge they face. We find that they face a more competitive environment than in the past. Next, we draw on the advocacy coalitions approach to examine the role of think tanks in major political and policy change. We present two stylised case studies, that is, the change of the electoral laws and the run-up to the Euro. Think tanks as organisations have not played a significant role in electoral reforms, although some think tank leaders have been personally engaged. We explain why think tanks have been somewhat at the periphery of this debate. By contrast, in the arena of economic policy, think tanks have operated as policy fora. They have thus facilitated social interaction amongst intellectuals and the emergence of an economic policy discourse based upon the paradigm of 'sound finance' and EMU (Economic and Monetary Union) convergence. We conclude with some suggestions for further research on think tanks: we think that the analysis of research institutes and policy-oriented knowledge should be integrated in theoretical approaches to policy change, rather than fuelling yet another 'cottage industry' of studies on a specific and very limited topic.

The Open Method as a New Mode of Governance: The Case of Soft Economic Policy Co‐ordination

Taking economic co‐ordination in EMU as a starting point, this article explores the development of the open method of co‐ordination, addressing whether it is a new form of governance from two related perspectives. First, to what extent can the method be effectively applied outside the scope of economic policy? Second, will it lead to policy transfer to the EU and hence act only as a transitional mode of governance? Identified at the Lisbon European Council, the method codified practices such as benchmarking, target‐setting and peer review developed in the Luxembourg, Cardiff and Cologne processes. The method offers a new approach to governance of the EU as a heterarchical, decentred and dynamic process. It supports and radicalizes the principle of subsidiarity; offers an alternative to the treaty rules on enhanced co‐operation; and addresses some of the legitimacy issues inherent in the EU. In EMU, the method arose out of a specific policy framework with a common monetary policy complemented by the coordination of national economic policies. The recent recommendation issued against Ireland is the first example of the operation of the method in EMU and shows how debate can be stimulated and how different and arguably equally valid perspectives defended. The particular experience of EMU with a sound money, sound finance paradigm, a long history of project‐building by key elites and the central role of the European Council suggest similar conditions are required for the effective application of the method in other policy spheres. The context within which the method has operated to date is contingent and could change either over time or between policy fields. If so, the very openness of the method may serve to reconfigure the boundaries of competence between the Member States and the Union, after all.

The Dynamics of EMU Ideas

With a view to better understanding why the `Maastricht EMU' — contrary to various proposals for Economic and Monetary Union from early history of European monetary integration — gives priority to `sound money and finances' and central bank independence over other macro-economic objectives, it is suggested that the EMU be considered as being the very last stage of an `ideational life-cycle' that took off at the end of the 1970s. Contrary to approaches which focus on the strategic negotiations during the Intergovernmental Conference at the beginning of the 1990s, it is argued that EMU ideas can be better understood if the major areas of agreement, consensus, shared knowledge structures, or simply causal ideas, are studied rather than areas of conflict and disagreement. It is argued that the ideational life-cycle helps us to grasp why there was in fact so little controversy among European elites by the end of the 1980s about such basic issues as central bank independence, price stability, and sound finance convergence criteria. EMU ideas are results of uncontroversial and transnational agreement at the elite level rather than strategic bargaining.

A New Canadian Public Philosophy for the 21st Century

For all intents and purposes, the era in Canada has concluded. When Finance Minister Paul Martin stands up on budget night in the House of Commons in February 2000, the first budget of the new millennium may give Canadians some insight into where Canada is heading in the 21st century. Then again, if recent budgets are indicators, it will likely not. The budget - the key government statement of policy intent - will likely reflect Canadians' ambivalence about what policy approach will succeed neoconservatism. The Liberal government lacks vision and seems incapable of, or disinterested in, leading a real public debate about Canada's future direction. Public policy in Canada over the last 50 years has been framed by a series of three policy strategies. Each had a raison d&re, tactics and a flaw that led to its replacement by a new strategy - to address this flaw. The experiences of the Depression and the Second World War framed the Keynesian era (1945-1975), which focussed on maintaining employment and economic and social security via countercyclical budgeting and the construction of the welfare state. This framework was undermined by international economic developments and Keynesianism's asymmetrical character in dealing less successfully with inflation than with unemployment. The post-Keynesian era (1975-1984) focussed on containing inflation and on increasing capacity to deal with the international economy. It flirted with planning, and introduced interventionist programmes and institutions. This era exposed Canadians' ambivalence about the roles of the state and the market. Half-hearted planning respected the authority of the market, resulting in weak economic growth, low productivity gains, increased public expenditures and decreased revenues, and the era's Achilles heel - ballooning deficits. The neoconservative era (1985-1998) focussed on the deficit, which was seen to reflect the failures of the previous eras. The market's authority was elevated and the state's economic responsibilities were diminished. The deficit was eliminated, by dismantling programs, regulations and institutions. Neoconservatism has had some success within its framework, including four consecutive balanced budgets, reasonable growth, failing unemployment, and the reincarnation of a discourse of balanced budgets, sound finance and a limited government. But this discourse has been weakening. First, there has been concern that the costs of neoconservatism have been too high, particularly in areas like health care and education. Second, the economy has suffered in some dimensions: a record low dollar, poor productivity performance and a declining standard of living for many. The Achilles heel of the era has been the creation of an existential policy vacuum - a sense of aimlessness and lack of policy purpose in the globalised market environment. The deficit has been eliminated as a policy focus, but no replacement like unemployment or inflation has emerged around which to focus policy attention in the new policy era. …

The Money Interest and the Public Interest: American Monetary Thought, 1920-1970.

Journal Article The Money Interest and the Public Interest: American Monetary Thought, 1920–1970. By Perry G. Mehrling. (Cambridge: Harvard University Press, 1997. xvi, 283 pp. $45.00, ISBN 0-674-58430-9.) Get access Elmus Wicker Elmus Wicker Indiana University, Bloomington, Indiana Search for other works by this author on: Oxford Academic Google Scholar Journal of American History, Volume 86, Issue 1, June 1999, Pages 257–258, https://doi.org/10.2307/2567481 Published: 01 June 1999

The macroeconomic policies of Mr Lawson

The recent ICBH Witness Seminar on the 1987 stock market crash was notable for the reluctance of Lord Lawson and Sir Peter Middleton to engage in any discussion on macroeconomic policy at the time of the crash. This article will show that as Chancellor, Lawson had made many ill‐judged decisions over monetary policy by October 1987 and continued to do so after the crash. The article will trace the origins of these decisions and examine how the working relationship between the Prime Minister and Chancellor gradually deteriorated after 1985. By placing the stock market crash into a wider context than was offered by Lawson at the Seminar, it is possible to see how the Conservative party lost its reputation for ‘sound finance’ through the deleterious effects of the ‘Lawson boom’.