Das Phänomen der Illicit Financial Flows hat in den vergangenen Jahren vor allem in der Diskussion um die Finanzierung von Entwicklungszusammenarbeit verstärkt Beachtung gefunden. Investoren wie auch Entwicklungsländer haben die Gefahren und Nebenwirkungen erkannt, die sich nicht nur auf finanzielle Verluste für den betroffenen Staat beschränken, sondern auch dessen Staatlichkeit insgesamt infrage stellen. (KAS-Auslandsinformationen / SWP)
This edition of Better Policies for Development focuses on illicit financial flows and their detrimental effects on development and growth. Every year, huge sums of money are transferred out of developing countries illegally. The numbers are disputed, but illicit financial flows are often cited as outstripping official development aid and inward investment. These flows strip resources from developing countries that could be used to finance much-needed public services, such as health care and education.This report defines policy coherence for development as a global tool for creating enabling environments for development in a post-2015 context. It shows that coherent policies in OECD countries in areas such as tax evasion, anti-bribery and money laundering can contribute to reducing illicit financial flows from developing countries. It also provides an update on OECD efforts to develop a monitoring matrix for policy coherence for development, based upon existing OECD indicators of 'policy effort'. The report also includes contributions from member states. Most illustrate national processes to deal with policy coherence for development beyond 2015.
In the neoliberal paradigm, free cross-border capital flows are crucial for economic development. However, the liberalization of the financial sector and of cross-border capital flows has led to highly volatile financial flows and numerous financial crises. Cyclical capital inflows and capital outflows increase macroeconomic disequilibria and reduce the space for manoeuvre concerning economic policy making. According to historical trends, net resource outflows from developing countries are rather the norm than the exception. Since the Asian crisis, the net resource transfer from developing countries has increased considerably. This implies that financial flows from the global South permanently contribute to finance development in the North, in particular in the USA. These flows consist mainly of interest payments, profit repatriation and the hoarding of foreign currency reserves that are invested in US treasury bills. Against the background of highly volatile financial flows, heterodox strategies within and beyond the post-Washington consensus are attracting renewed attention. This paper provides an overview of global dynamics and transformations of international capital flows and the related consequences for developing countries. It is concluded that, since the implementation of a new global monetary and financial regime is not in sight, countries in the periphery are forced to develop individual strategies and to co-operate on a regional level to prevent bubbles and financial crisis in order to implement their state-led development strategies. Adapted from the source document.
Our goal in this project is to gain a better empirical understanding of the international financial implications of currency movements. To this end, we construct a database of international currency exposures for a large panel of countries over 1990-2004. We show that trade-weighted exchange rate indices are insufficient to understand the financial impact of currency movements. We show that our currency measure has high explanatory power for the valuation term in net foreign asset dynamics: exchange rate valuation shocks are sizable, not quickly reversed and may entail substantial wealth redistributions. Further, we demonstrate that many developing countries hold short foreign-currency positions, leaving them open to negative valuation effects when the domestic currency depreciates. However, we also show that many of these countries have substantially reduced their foreign currency exposure over the last decade. -- Financial integration ; capital flows ; external assets and liabilities
In: Die Friedens-Warte: Journal of International Peace and Organization, Band 77, S. 239-311
ISSN: 0340-0255, 0340-0255
Explores control of international financial flows, impact of free capital flow on crises, new capital movements regulation, the Tobin tax proposal on currency transactions, challenges of globalized capital markets for developing countries, Al-Qaeda financing sources, and strategies to detect financing sources of Islamic terrorist organizations; 4 articles. Summaries in English p. 236-7.
Summarizes the existing knowledge about the financing of international (Islamic) terror organizations to develop strategies for fighting international terrorism beyond political & military means. First, some short remarks about the organization of Islamic terror organizations are made & their financing systems are described. Then, with the Al Qaida network as an example, different sources of financing are analyzed & the amount of existing financial means is estimated. Following a survey of measures recently taken in some major countries strategies are developed to detect & reduce the financial flows of international terror organizations. As countermeasures, among others, an efficient international task force applying criminal network analyses & efforts to remedy some weak points in the international banking system related to offshore centers & tax heavens are proposed. 2 Tables, 1 Figure. Adapted from the source document.
Research of the Irano-Roman relations seems dominated by teh military perspective. This situation is cause by the very nature of the sources which mention both states mostly in light of the warfare waged between them. Equally fascinating are the diplomatic relations between Rome and Iran. One of the most interesting aspects of non-military relations are financial flows between both states. According to John Lydos, king Yazgerd was to offer emperor Theodosius II (408-450) building together a fortress which was to block the passage through Caucasus. At the same time the king demanded from the emperor particip ation in the costs of the defense of the fortress. The problem of the reconciliation of the payments for defending of the Caucasian frontier became the grudge between the states making the rectification of the relationship seven more difficult. The key problem seems to determine the peace negotiations which initiated Iranian claim towards the Empire. The second problem might be the motives which drove Iranian monarchs in their financial claims towards the emperors.
The paper analyses the transmission of global financial shocks to individual member states of the European Monetary Union (EMU), in which monetary policy is delegated to the ECB and financial markets are fully integrated. Using a panel VAR model, we show that the asymmetric effects of global shocks on member states are partly offset by the uniform access of commercial banks to the Eurosystem's open market operations in conjunction with the redistribution of liquidity via the TARGET mechanism. However, an appropriate policy mix of sound public finances, solid financial regulation and targeted macroprudential measures is necessary in order to safeguard macroeconomic sustainability without needing to manage capital flows.
Der Länderfinanzausgleich soll reformiert werden, da er mit den bestehenden Regeln nach 2019 ausläuft. Entsprechend werden aktuell verschiedene Vorschläge und deren Auswirkungen diskutiert. In diesem Beitrag kommt der Wirtschaftskraft - gemessen auf Basis der Bruttowertschöpfung - die Rolle als zentraler Indikator für die Zuordnung der Gemeinschaftssteuern zu. Damit werden die Steuereinnahmen der aufkommensstarken Steuerarten eng an den Ort der Wertschöpfung geknüpft und das Umverteilungsvolumen wird insgesamt reduziert. ; In the year 2020, a new system of financial flows among the several tiers of government in Germany as well as equalisation payments among the federal states has to be implemented. A variety of concepts are currently under discussion, ranging from small adjustments to paradigmatic shifts. The model presented here suggests an alternative reference value for tax allocation. Introducing gross value added as an indicator for tax allocation offers several advantages. The process of splitting up and ascribing the joint tax volume would be substantially facilitated. The calculated gap between the financial capacities of the federal states would be reduced, resulting in less need for equalisation in the first place and thus less potential for conflict.
"Public opinion has got the impression that developed societies are becoming more unequal. Empirical data from various sources show, that after becoming more equal for decades, in many societies the inequality of household incomes actually is on the rise since the 1970s. The contribution examines the reasons for this increase on the basis of theories of modernization and globalization. It can be shown by empirical data that the seemingly opposing theories of modernization and globalization only taken together can explain the more and more unequal national income distributions. The modernizing factors of rationalization and technological change cause increasing inequality - under given circumstances of educational and population structures and influenced by globalisation factors such as migration, trade and financial flows. May be the contemporary increase of social inequality will not continue forever. Modernization and globalization together once again can produce more equality, provided there will be different educational and demographic structures." (Author's abstract, IAB-Doku) ((en))
Die globale Finanzkrise hat elementare Merkmale des geldpolitischen Vorkrisen-Konsens, wie die Sicherung der Preisstabilität als Hauptaufgabe der Geldpolitik in Frage gestellt. Man spricht von einer Geldpolitik in der neuen Normalität, einen Zustand, bei dem es trotz geringer Inflationsrate und niedrigen Schwankungen des Outputgaps zu Risiken für die Finanzstabilität kommt. Die neue Normalität nach der Krise ist durch große Schwankungen der Kapitalströme und einen Leitzins nahe der Nullzinsuntergrenze gekennzeichnet. Da Preisstabilität, als traditionelles Ziel der Geldpolitik, nicht notwendigerweise wirtschaftliche Stabilität sichern kann, wurde die bisherige Vorgehensweise der Geldpolitik in Frage gestellt und die Thematik aufgeworfen, wie das Verhältnis der Finanzstabilität zur traditionellen Geldpolitik ausgestaltet sein sollte, insbesondere welche Politik, Geld- und/oder makroprudenzielle Politik sich zur Sicherung von Finanzstabilität eignet. Aufbauend auf der Erkenntnis, dass Geldpolitik vor allem durch den Risikoneigungs- und Kreditkanal mit Finanzstabilität wechselwirkt, werden anhand eines Neukeynesianischen Modells unter Berücksichtigung einer Finanzfriktion und mit Hilfe spezifischer Verlustfunktionen drei mögliche Relationen zwischen der Geldpolitik betreibenden Zentralbank und einer für makroprudenzielle Politik verantwortlichen Regierung in unterschiedliche spieltheoretische Gleichgewichtskonzepte (Nash, Stackelberg und kooperativ) übersetzt. Zur Lösung des Modells wird neben der theoretischen Analyse mit Maple zudem auf eine Simulationstechnik, der Software Matlab, zurückgegriffen. Für die unterschiedlichen Gleichgewichtskonzepte werden wiederum unterschiedliche institutionelle Anordnungen identifiziert. Das Neukeynesianische Modell wird zusätzlich dahingehend erweitert, dass der gelpolitische Zinssenkungsspielraum eingeschränkt ist, wenn der Zins auf die Nullzinsuntergrenze trifft. Auf diese Weise soll aufgezeigt werden wie und ob sich der institutionelle Aufbau durch die Erweiterung des Modells verändert. Insgesamt lässt sich aus den Ergebnissen schließen, dass eine geldpolitische Behörde, die in ihrem Entscheidungskalkül neben Preis- und Outputstabilität, zusätzlich Finanzstabilität und die Beschränkungen durch eine Nullzinsuntergrenze berücksichtigt, sowohl geldpolitische, als auch makroprudenzielle Politik ausführen sollte. ; The global financial crisis has challenged elementary features of the pre-crisis monetary policy consensus, such as ensuring price stability as the primary objective of monetary policy. This is termed a monetary policy in the new normal, a state in which risks to financial stability arise despite a low inflation rate and low fluctuations in the output gap. The new normality after the crisis is characterized by large fluctuations in capital flows and a key interest rate close to the zero lower bound. Since price stability, as the traditional goal of monetary policy, cannot necessarily ensure economic stability, the previous procedure of monetary policy was questioned and the issue arises of how the relationship between financial stability and traditional monetary policy should be designed, in particular which policy, monetary and/or macroprudential policy is suitable for ensuring financial stability. Based on the knowledge that monetary policy interacts with financial stability primarily through the risk-taking and credit channel, by the use of a New Keynesian model in consideration of a financial friction and specific loss functions, three possible relationships between the central bank operating monetary policy and a government responsible for macroprudential policy are translated into different game-theoretical equilibrium concepts (Nash, Stackelberg and cooperative). In addition to the theoretical analysis with Maple, a simulation technique, the software Matlab is used to solve the model. In turn, various institutional arrangements are identified for the different game theoretic equilibrium concepts. The New Keynesian model is also expanded to the effect that the scope for interest rate reductions is limited when the interest rate hits the zero lower bound. In this way, it should be shown how and whether the institutional structure changes as a result of the expansion of the model. Overall, it can be concluded that a monetary policy authority that takes into account not only price and output stability, but also financial stability and the restrictions imposed by a zero lower bound, should carry out both monetary and macroprudential policy.