The authors have both been involved over a number of years with the ongoing World Bank-Internatio... more The authors have both been involved over a number of years with the ongoing World Bank-International Monetary Fund Global Bank Insolvency Initiative and have benefited enormously from discussions with others around the world involved in the Initiative. The authors would also like to thank Elizabeth G. Chan and Raja Naach for research assistance and participants at seminars in Washington DC, Sydney and Zurich for input and comments. All opinions, errors and omissions are those of the authors, unless otherwise noted.
Trade finance is essential to support global trade, and the region that finances more trade trans... more Trade finance is essential to support global trade, and the region that finances more trade transactions than any other is East Asia. 1 Historically trade has been important in the evolution and development of civilisations. 2 Today international trade enhances efficiency and competitiveness within economies and promotes their economic development. Some 80-90 per cent of trade transactions are supported by some form of credit financing, making trade finance an integral part of the world economy. 3 Finance for international trade transactions is important for wealthy nations, and often critical for developing and emerging markets, where both exporters and importers may be severely constrained by limited working capital. The global financial crisis that commenced in 2007-2008 sparked a substantial worldwide shortfall in trade finance in a global market then estimated at $10-12 trillion a year. 4 The effects of this contraction were markedly different in different regions. 5 South Asia, Korea and China were particularly affected, with China experiencing a double-digit decline in the
He has also published a number of articles in environmental and tax law. ** B.A. (Drury); J.D. (S... more He has also published a number of articles in environmental and tax law. ** B.A. (Drury); J.D. (Southern Methodist); LL.M.; Ph.D. (London).
Making Markets: Reforms to Strengthen Asia's Debt Capital Markets
SSRN Electronic Journal, 2000
Liquid markets for debt securities exist comprehensively in no East Asian economy other than Japa... more Liquid markets for debt securities exist comprehensively in no East Asian economy other than Japan, even though short or medium-term bonds are issued in most and Asian borrowers are established (though generally not prolific) international issuers. Today¡¦s markets provide a borrowing medium (not always effectively) for Asian governments, financial institutions and some companies, but investor activity is closely correlated with bank credit creation. Above all, the region¡¦s markets provide no real guard against crisis or contagion, nor act as a balance to banking systems susceptible to distortion and event risk. Asia¡¦s economies may not suffer general capital shortages but poor resource allocation is pervasive and would be greatly improved by efficient national and regional financial markets. Seven years after its most profound financial crisis, Asia risks new contagion from any similar, unforeseen loss of confidence. Active debt capital markets would help limit such risks. The world¡¦s foremost bond markets developed as a result of intense national needs, and while economic growth will inevitably lead to greater bond issuance and trading this will be insufficient for the region¡¦s wider requirements without official sponsorship of active cooperative market reform. This paper contains three linked policy proposals: a matrix of steps to remove legal, fiscal, regulatory or systemic obstacles or omissions that hinder market usage; measures to encourage the development of a unified regional offshore market for local and major currency risk; and the concept of a regional body to promote the creation of asset-backed securities on a scale not previously contemplated and greatly expand activity in Asia¡¦s debt markets.
Extreme Complexity in Transacting: Public Private Partnerships at Work in the London Underground
This chapter contains section titled: Public private partnership: London UndergroundTwo countries... more This chapter contains section titled: Public private partnership: London UndergroundTwo countries, two systemsPublic private partnershipEndnotePublic private partnership: London UndergroundTwo countries, two systemsPublic private partnershipEndnote
Finance is important for development. However, the Asian financial crisis of 1997-1998 and the gl... more Finance is important for development. However, the Asian financial crisis of 1997-1998 and the global financial crisis of 2008 highlighted the serious risks associated with financial liberalization and excessive innovation. East Asia's strong focus on economic growth has necessitated a careful balancing of the benefits of financial liberalization and innovation against the very real risks inherent in financial sector development. This Article examines the role of regulatory, legal, and institutional infrastructure in supporting both financial development and limiting the risk of financial crises. The Article then addresses a series of issues with particular developmental significance in the region: trade finance, mortgage markets, SME finance, non-bank finance, and mobile financial services.
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Papers by Douglas Arner