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17451. Regulation, Market Structure, and Role of the Credit Rating Agencies

Author:
Mark A. Calabria and Emily McClintock Ekins
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
During the financial crisis of 2008, the financial markets would have been better served if the credit rating agency industry had been more competitive. We present evidence that suggests the Securities and Exchange Commission's designation of Nationally Recognized Statistical Rating Organizations (NRSROs) inadvertently created a de facto oligopoly, which primarily propped up three firms: Moody's, S, and Fitch. We also explain the rationale behind the NRSRO designation given to credit rating agencies (CRAs) and demonstrate that it was not intended to be an oligopolistic mechanism or to reduce investor due diligence, but rather was intended to protect consumers. Although CRAs were indirectly constrained by their reputation among investors, the lack of competition allowed for greater market complacency. Government regulatory use of credit ratings inflated the market demand for NRSRO ratings, despite the decreasing informational value of credit ratings. It is unlikely that this sort of regulatory framework could result in anything except misaligned incentives among economic actors and distorted market information that provides inaccurate signals to investors and other financial actors. Given the importance of our capital infrastructure and the power of credit rating agencies in our financial markets, and despite the good intentions of the uses of the NRSRO designation, it is not worth the cost and should be abolished. Regulators should work to eliminate regulatory reliance on credit ratings for financial safety and soundness. These regulatory reforms will, in turn, reduce CRA oligopolistic power and the artificial demand for their ratings.
Topic:
Economics, Markets, Financial Crisis, and Governance
Political Geography:
United States

17452. Corporate Welfare in the Federal Budget

Author:
Tad DeHaven
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Rising federal spending and huge deficits are pushing the nation toward a financial and economic crisis. Policymakers should find and eliminate wasteful, damaging, and unneeded programs in the federal budget. One good way to save money would be to cut subsidies to businesses. Corporate welfare in the federal budget costs taxpayers almost $100 billion a year.
Topic:
Economics, Markets, Monetary Policy, and Financial Crisis
Political Geography:
United States

17453. Meeting the Cyber Security Challenge

Author:
Gustav Lindstrom
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
The Geneva Centre for Security Policy
Abstract:
While most policymakers agree that there are substantial risks in cyber space, there is disagreement on whether or not it poses a threat to national security. The divergence in opinions is most obvious when references are made to terms such as cyber war and cyber warfare. In spite of these differences, there are many reasons why policymakers should care about developments in cyber space. With society's growing reliance on cyber space, a disruption can have wide ranging implications and cascading effects.
Topic:
Security, Defense Policy, Crime, and Science and Technology

17454. Business and Human Rights: Proposals from the Research Group on Private International Law and Human Rights

Author:
Nicolás Zambrana Tévar
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Centre on Human Rights in Conflict
Abstract:
By means of Resolution 17/4 of 16 June 2011, the UN Human Rights Council has created a Working Group with the mission of implementing the UN “Protect, Respect and Remedy” Framework and its Guiding Principles. As part of its activities, the Working Group asked for input from stakeholders and convened a meeting with them, which took place in Geneva on 20 January 2012.
Topic:
Economics, Human Rights, Human Welfare, International Trade and Finance, and Markets
Political Geography:
Geneva and United Nations

17455. Egypt: The Marriage of Islamism and the System

Author:
Dr. Cengi Günay
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Global Political Trends Center
Abstract:
The “January 25 Revolution” was not a classic revolution. President Mubarak's fall did not entail the overthrow of the regime, neither alter the elites or destroy their institutions, nor reverse the social situation. Although power structures and economic patterns were not removed, Mubarak's fall set an end to exclusive authoritarian despotism and initiated a process of power sharing; a so called passive revolution characterised by the absorption of the “enemies' elites” into the system. From this perspective, legalisation has been only a further step in the Islamists' long and rocky road of integration through moderation. Initially based on tactical considerations, shifts in methods and behaviour usually also evoke a shift in emphasis from ideological conceptions to political pragmatism. The absorption of the Islamist elites supported a process of embourgeoisement and de-­â€ ideologization. This did not entail a departure from Islamic tenets, but rather from ideological conceptions which seemed more and more unrealistic in a globalized world. The integration of de-­â€radicalised and moderated socially conservative Islamist groups with market economy and parliamentary democracy promises not only the prevention of political and economic turmoil, but also guarantees the reinforcement of the existing patterns of domination.
Topic:
Democratization, Islam, and Regime Change
Political Geography:
Africa and Arabia

17456. Turkey's Standing in Gas Pipeline Games

Author:
Olgu Okumus
Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
Global Political Trends Center
Abstract:
Since September 2011, the Eurasian gas market has been facing shocking bi-monthly announcements: on September 23, British Petroleum (BP) announced the South East Europe Pipeline (SEEP); on December 26, Turkish and Azeri authorities announced their joint agreement for the Trans-­Anatolian Pipeline (TANAP); and on February 26, the Shah Deniz II Consortium announced it was undertaking exclusive negotiations with the Trans Adriatic Pipeline (TAP). The shock wave intensified when the Turkish Energy Minister hinted that a new agreement allowing Russia to build its own South Stream pipeline under the Black Sea using Turkish territorial waters was in the works. Now the ultimate question of the Eurasian energy market is: “Which of these projects will be built?” This Policy Brief seeks to answer this question by analyzing Turkey's standing in Eurasian energy diplomacy in the perspective of energy transit projects competing for building the Southern Energy Corridor of gas transit from the Caspian zone to Europe. First, I present a short review of Turkish strategy in Eurasian energy diplomacy. Secondly, I detail the driving forces behind Turkish energy policy. I then conclude with some remarks about different scenarios of Turkish energy policy in the framework of the Southern Energy Corridor.
Topic:
Security, Diplomacy, Energy Policy, Markets, and Natural Resources
Political Geography:
Europe and Turkey

17457. Prospects for Global Growth in 2012

Author:
Onur Bayramoğlu
Publication Date:
03-2012
Content Type:
Policy Brief
Institution:
Global Political Trends Center
Abstract:
The current concern among many is that what we are faced today is not a usual crisis that is part of the economic cycle, but an era of great stagnation with low growth and high unemployment, not witnessed since the Great Depression of the 1930's. One wonders which country will drive global growth while major actors such as the European Union are now financial casinos, the United States is continuously losing its dynamism, Japan is struggling under demographical problems, and the emerging markets are still too small and volatile. Once again, policy makers acknowledge that the problems of growth are global and systematic; such that if one faces an issue, all of them get contaminated. However, they still seek for solutions in mercantilist national policies.
Topic:
Economics, Globalization, International Trade and Finance, Markets, and Financial Crisis
Political Geography:
United States and Europe

17458. Lessons from a Divided Society: How to Deal with Party Factionalism

Author:
Alexandra Ionascu
Publication Date:
07-2012
Content Type:
Journal Article
Journal:
Romanian Journal of Political Science
Institution:
Romanian Academic Society
Abstract:
Despite the fact that party dissolutions and degenerative forms of factionalism, no major splits or internal divides shaded the image of the main ethnic based party: the Democratic Alliance of Hungarians in Romania (DAHR). Similarly to other post communist countries, the minority representation in Romania constitutes an electoral success story. In a general framework of fragmentation and organisational instability, the DAHR's political performance and continuity were doubled by an exceptional organisational strength. Although the ethnic based parties do tend to manifest higher levels of external cohesion as a result of their single-issue nature, their organisational continuity constitutes rather a cas a part which deserves further investigation. Consequently, the following article focuses on highlighting the mechanisms conducive to the accommodation of different factions considering that the anatomy of such internal arrangements constitutes an important resource for the understanding of party organisational survival. The analysis will show that even if DAHR seems to describe a mixture of party types, with important elements of party centralisation and party discontent among elites and delegates, the internal party regulations, notably the party primary system, balanced the power struggles within the organisation, resulting thus in a general model of auto proclaimed party democracy.

17459. CONTENTS

Publication Date:
01-2012
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
Uluslararasi Iliskiler
Abstract:
No abstract is available.

17460. The Study of Terrorism 10 Years After 9/11: Successes, Issues, Challenges

Author:
Richard Jackson
Publication Date:
01-2012
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
Uluslararasi Iliskiler
Abstract:
This article surveys the field of terrorism studies since 9/11 and attempts to assess some of its main successes, perennial issues and future challenges. It suggests that terrorism studies has grown and matured in the decade since the attacks, in part through its rising popularity and institutionalization in new university teaching programs, a growing number of think tanks and research institutes, and scholarly activity in new networks and journals. While some of its successes include new dedicated scholars and researchers, improving standards of scholarship, and diversification of research and methodological approaches (including the rise of critical terrorism studies), a number of perennial issues continue to haunt the field. These include, among others: tendencies towards decontextualisation, de-historicisation and knowledge subjugation within the field; skewed research priorities; normative-political issues surrounding policy engagement and problem-solving; the lack of reflexivity and engagement with critical terrorism studies and other critical movements; and the low entry barriers to terrorism expertise and the rise of pseudo-experts. The article concludes with a discussion of some of the main challenges facing the field, such as avoiding a bifurcation into critical and orthodox intellectual ghettos, bridging the trans-Atlantic divide between scholars, negotiating the complex legal environment posed by domestic counter-terrorism legislation, developing standards and safeguards for primary research and integrating the relevant knowledge of cognate fields such as peace studies into the research and teaching of terrorism studies. Overall, the article concludes that it is an opportune time to be involved in terrorism studies and there reasons for being cautiously optimistic about the next decade of terrorism research.