Colombia's financial system has experienced important transformations during the last two decades. In order to illustrate the most significant modifications, Tables 1 and 2 present a summary of the financial system's structure during four different points in time: 1986- 1989, 1990, 1995, and 2001. Table 1 shows the assets of different types of banks (private domestic banks, foreign banks and state-owned banks), Savings and Loans corporations, and the rest of the financial system, all of them as a proportion of GDP. Table 2 complements the information by presenting the participation of each financial intermediary in the total assets of the financial system.
Examines the volatility of the international financial market and the danger of provoking a banking and financial crisis in developing countries; recommends national and international financial regulations to minimize the risk.
Economic events & structural problems contributing to the Mexican financial crisis of 1994 are identified. A neoliberal policy was adopted following the crisis of populist politics in the 1980s as the politically correct course, from an international viewpoint. However, it has been impossible to eliminate rent seeking (special interests) in privatization. Special interest groups, eg, local elites, the international banking community, & US interests, have benefited at the expense of the impoverished Mexican population. To resolve the neoliberal crisis, the function of the Mexican state needs to be intelligently reconstructed. 24 References. Adapted from the source document.
Effects on external debt, foreign investment, and balance of payments of the extensive economic and financial crisis brought on by the 1994 devaluation of the peso; Mexico. Summary in English.
Given the new status of the South Korean economy, Latin America represented an attractive market for their interests. Thus, trade between the two grew as subregional integration eliminated trade barriers. Having reached the customs union phase in MERCOSUR, Korean direct investments were a strategic actor in the relationship. However, the application by MERCOSUR of safeguard measures against Korean imports in the context of the financial crisis of 1997, damaged trade relations between the two parties. In this context, the Korean government began to consider a new trade negotiation policy based on regional trade arrangements (RTAs). This article identifies the challenges of the trade relationship between South Korea and the Southern Cone and explores the new Korean policy for regional trade arrangements. ; A partir del nuevo estatus de la economía surcoreana, América Latina representó un mercado atractivo para sus intereses. Así, el comercio entre ambos creció a medida que la integración subregional eliminaba las barreras al comercio. Ya alcanzada la fase de unión aduanera en el MERCOSUR, las inversiones directas coreanas fueron un actor estratégico en la relación. Sin embargo, la aplicación por parte de MERCOSUR de medidas de salvaguardia ante las importaciones coreanas en el contexto de la crisis financiera de 1997, daño relaciones comerciales entre las dos partes. En este contexto, el gobierno coreano comenzó a considerar una nueva política de negociación comercial basada en los arreglos comerciales regionales (ACR's). En este artículo se identifican los desafíos de la relación comercial entre Corea del Sur y el Cono Sur y se explora la nueva política coreana para los arreglos comerciales regionales.
After more than ten years under a Currency Board regime, successful in abating inflation and ensuring macroeconomic and financial stability, in January 2002, the country was forced to abandon the "Convertibilidad" and moved to a floating exchange regime. Is this twin crisis different from those experienced by Argentina in 1995 or earlier in the 1980's? A remarkable difference from past experiences was the apparent strength of the Argentine Financial System, as a consequence of deliberate and systematic process of reforms that put its regulatory framework close to those of developed countries. However, the crisis revealed two sources of financial fragility ´probably underestimated during the good times. First, the combination of a currency board regime and highly dollarized banks' balance sheets implied a solvency risk for the financial system in case the economy had to adjust to a shock either trough a nominal devaluation or a deflationary process. The other hidden risk for the financial system was the non regulated exposure of banks to sovereign risk. Using a dynamic panel data model we study the behavior of individual banks' deposits during the prolonged twin crisis suffered by Argentina since November 2000. Our aim was to determine if this event could have been a "sun spot" phenomenon, i.e. a random event not related to the real economy or the consequence of a change in economic agents perception about the trend of the Argentine economy., i.e. an increase on aggregate risk. Our results strongly favour the second hypothesis. "Macro fundamentals" like devaluation risk, the EMBI spread, the change in international reserves and the change in industrial production, played an important roll in explaining the behavior of deposits during the crisis. On the contrary , banks' "fundamentals" did not help to explain the dynamics of deposits in this crisis, with the exception of a leverage ratio. We also introduced the interest by individual banks on deposits, to test if depositors took it as an indicator of banks' strength, flying more intensely from banks that paid higher interest rates to retain deposits. The results for the complete sample period confirm this intuition. The share of government debt holdings in banks' portfolio was also significant for one of the sub periods of the sample, confirming that banks that were large lenders of the government were subject to a more intense run. ; Facultad de Ciencias Económicas
This article seeks to understand why the Mexican economy ended in three of the last presidential periods with an overvalued exchange rate, high deficits of the current account, unsustainable short term debt, and a financial crisis. The article focuses on the Salinas administration, but shows that a similar logic led to economic crisis in the Echeverria (1970-76) and Lopez Portillo (1976-82) administrations. It is argued that the 1994 crisis is the result of three traps: an international context which allowed a massive entrance of capital flows, the ideology of the state elite, and the incentives provided by the institutional framework. These three traps were also present in the previous two crises. (Rev Econ Polit/DÜI)
The context of a medium-importance financial crisis-such as the 1914 one, at the beginning of the Great War, that would present a series of problems new to Peru, has given us the opportunity to probe into the practices and idiosyncrasies of the political members of the Peruvian State of that time. By analyzing the Journal of Parliamentary Debates -a source for historical research still little used- we have been able to conretely examine the process of adoption of economic and financial policies, and the conflicts inherent to it, in the context of the beginning of the first world war. By observing the relationships between the Political Power and the Civil Society we have been able to verify some constants about the way policy decisions are taken. That is, we have been able to analyze, in terms of a recent past, some of the evolucions of the contemporary peruvian political system, which today appear to us a syntetical and condensed, or even petrified. ; El contexto de una crisis financiera de mediana importancia (la de 1914, al inicio de la gran guerra), cuya administración habría de exigir, empero, el enfrentamiento de los problemas nuevos en el Perú, nos ha ofrecido la oportunidad de efectuar una incursión al interior de las prácticas y mentalidades del personal político del Estado peruano del entonces. Gracias a la utilización de los Diarios de Debates Parlamentarios, fuente para el trabajo histórico que no ha sido aún suficientemente frecuentada, hemos podido aproximarnos un poco más concretamente al proceso mismo de adopción de la política económico-financiera, y a sus conflictos respectivos, en la coyuntura del comienzo de la guerra mundial. Observando las relaciones entre el Poder Político y la Sociedad Civil peruanos, a comienzos del siglo XX, hemos podido constatar simultáneamente ciertas permanencias respecto a la manera que ha adoptado el ejercicio del Poder en nuestro país. O, dicho en otros términos, de analizar en un pasado reciente algunas de las evoluciones del sistema político peruano contemporáneo, que hoy se nos presentan sintéticas y condensadas, e incluso petrificadas.
La crisis argentina parece no tener salida. Eduardo Duhalde ha recibido un gran número de críticas, no sólo de los mandatarios europeos que le solicitaban un mayor rigor y la búsqueda de un consenso con el FMI, sino también la de sus propios pares latinoamericanos que ven con preocupación el deterioro creciente de la coyuntura económica, política y social del país y de algunos empresarios españoles.
The paper focuses on the financial and currency crises that took place in the Latin American financial globalization context. It is presented in four sections. A synthetic view of the financial globalization process and the role played by LA is presented in the first section. The second section presents a model encompassing the eighties' and nineties' crises. The position assumed by the IMF is discussed. The third section examines other national financial globalization processes that did not lead to crisis. The "crisis prevention measures", largely based on that experiences, are then commented. Lastly, the fourth section discusses the national paths leading to "segmented financial integration" and presents some reflections about international coordination problems. (Rev Econ Polít/DÜI)
El contexto de una crisis financiera de mediana importancia (la de 1914, al inicio de la gran guerra), cuya administración habría de exigir, empero, el enfrentamiento de los problemas nuevos en el Perú, nos ha ofrecido la oportunidad de efectuar una incursión al interior de las prácticas y mentalidades del personal político del Estado peruano del entonces. Gracias a la utilización de los Diarios de Debates Parlamentarios, fuente para el trabajo histórico que no ha sido aún suficientemente frecuentada, hemos podido aproximarnos un poco más concretamente al proceso mismo de adopción de la política económico-financiera, y a sus conflictos respectivos, en la coyuntura del comienzo de la guerra mundial. Observando las relaciones entre el Poder Político y la Sociedad Civil peruanos, a comienzos del siglo XX, hemos podido constatar simultáneamente ciertas permanencias respecto a la manera que ha adoptado el ejercicio del Poder en nuestro país. O, dicho en otros términos, de analizar en un pasado reciente algunas de las evoluciones del sistema político peruano contemporáneo, que hoy se nos presentan sintéticas y condensadas, e incluso petrificadas. ; The context of a medium-importance financial crisis-such as the 1914 one, at the beginning of the Great War, that would present a series of problems new to Peru, has given us the opportunity to probe into the practices and idiosyncrasies of the political members of the Peruvian State of that time. By analyzing the Journal of Parliamentary Debates -a source for historical research still little used- we have been able to conretely examine the process of adoption of economic and financial policies, and the conflicts inherent to it, in the context of the beginning of the first world war. By observing the relationships between the Political Power and the Civil Society we have been able to verify some constants about the way policy decisions are taken. That is, we have been able to analyze, in terms of a recent past, some of the evolucions of the contemporary peruvian political system, which today appear to us a syntetical and condensed, or even petrified.
The structural character of the difficulties in Argentina is the result of a set of political and economic decisions with an external component and some internal particularities. Through a brief historical journey it is shown that the high development level generated in the past was braked during the last 50years by the peronismo and that it has been the economy of integrated South America early andin way but strong to the world economy making it vulnerable and it led her to recycle all the international crises. The recent events and the macroeconomic panorama are described that have driven to the crisis. ; El carácter estructural de las dificultades en Argentina es el resultado de un conjunto de decisiones políticas y económicas que tienen tanto un componente externo como unas particularidades internas. A través de un breve recorrido histórico se muestra que el alto nivel de desarrollo generado en el pasado fue frenado durante los últimos 50 años por el peronismo; y que Argentina ha sido la economía de Sudamérica integrada mas temprano y de manera más fuerte a la economía mundial haciéndola vulnerable y recicladora de todas las crisis internacionales. Finalmente se describen los acontecimientos recientes y el panorama macroeconómico que han conducido a la crisis."
El carácter estructural de las dificultades en Argentina es el resultado de un conjunto de decisiones políticas y económicas que tienen tanto un componente externo como unas particularidades internas. A través de un breve recorrido histórico se muestra que el alto nivel de desarrollo generado en el pasado fue frenado durante los últimos 50 años por el peronismo; y que Argentina ha sido la economía de Sudamérica integrada mas temprano y de manera más fuerte a la economía mundial haciéndola vulnerable y recicladora de todas las crisis internacionales. Finalmente se describen los acontecimientos recientes y el panorama macroeconómico que han conducido a la crisis." ; The structural character of the difficulties in Argentina is the result of a set of political and economic decisions with an external component and some internal particularities. Through a brief historical journey it is shown that the high development level generated in the past was braked during the last 50 years by the peronismo and that it has been the economy of integrated South America early andin way but strong to the world economy making it vulnerable and it led her to recycle all the international crises. The recent events and the macroeconomic panorama are described that have driven to the crisis.
