Frederick Nixson

The Asian Crisis: Causes and Consequences

This paper reviews the explanations and the consequences of the Asian crisis. Two major competing explanations are identified. These place the roots of the crisis either in the affected economies or within the international capital market. We locate these explanations within alternative paradigms about the effectiveness of market coordination. The consequences of the crisis are discussed in terms of the impact on unemployment and poverty, growth and trade. The role of the International Monetary Fund is also considered and its evaluation is shown to depend on which model of explanation is thought most plausible. A number of concluding comments complete the discussion. Copyright 1999 by Blackwell Publishers Ltd and The Victoria University of Manchester

The Disinvestment of Public Sector Enterprises: The Indian Experience

This paper examines the disinvestment of shares of public sector enterprises (PSEs) in India since 1991. The poor performance of PSEs made reform increasingly urgent in the context of the broader strategy of the liberalization of the economy to deal with the perceived weaknesses of Indias development strategy. The paper argues that the main aim of disinvestment has been to reduce the public sector borrowing requirement, at the cost of the restructuring and rationalization of PSEs in particular and the public sector in general. The process of disinvestment has been a complex one and has not been free of criticism. Alleged under-pricing of shares sold, lack of transparency, limited public support for disinvestment and the absence of a common set of objectives between the Government of India and the Disinvestment Commission have been major problems. In many respects, India provides a checklist of how not to disinvest.

Globalisation and the Brazilian steel industry: 1988-97

Over the course of the 1988-97 period, the Brazilian steel sector was subject to an unprecedented programme of trade liberalisation and privatisation while becoming far more open towards foreign investment and technology inflows. Using various indicators of competitive performance, it is established that the impact of this drive towards globalisation was broadly favourable. Productivity and the technological level of production processes improved while import penetration remained minimal despite the scale of trade liberalisation. However, these improvements have to be set beside the fact that the competitive performance of the sector still lagged behind that of major international producers and technological weaknesses persisted. The evolution of the sectors competitive behaviour can only be fully understood when pre-existent internal factors, as well as the externally imposed forces of globalisation are taken into account.

The reform of the power sector in India: 1991–1997

The paper discusses recent reforms in the power sector in the context of the poor performance of State Electricity Boards (SEBs), and evaluates the recent policy changes in the sector. The new power policy permits a variety of ownership structures and has reduced the number of statutory clearances required. The paper concludes that the success of reforms will depend very largely on how state governments perceive their role in the reform process and their understanding of the key issues involved.

Did China Hurt the Textiles and Clothing Exports of Other Asian Economies, 1990–2005?

Employing a gravity model, this article examines the impact of the rise of Chinas textile and clothing (T&C) sector on the exports of its Asian counterparts. It was established that Chinas textile exports posed a greater competitive threat than its clothing exports to the T&C exports of other Asian economies. It was also found that higher-income Asian economies fared better than their lower-income counterparts. This is because the higher-income Asian economies tended to be specialized in segments of the T&C sector less exposed to Chinese competition.

The Move to the Market

The changes in the dominant economic paradigm that occurred in the late 1970s and early 1980s, with most. ‘mixed’ economies in the world adopting more market-orientated economic strategies, was mirrored in the late 1980s by the dramatic collapse of communist states. The relinquishing of communist ideologies has resulted in these countries searching for new relationships between the state and the market. Central planning had failed to achieve the economic and social developments expected of it and the market economy was seen as the answer to the ‘failures’ of socialism.

Institutional change in a transitional economy: the reform of economics higher education in Mongolia

Abstract This paper discusses the problems of implementing a European Union Technical Assistance to the Commonwealth of Independent States (of the former Soviet Union) (EU/TACIS) project to reform Mongolian Economics Higher Education with the ultimate objective of improving the process of economic policy making. It emphasises the importance of historical, economic and administrative context for the design and implementation of project activities. Project activities are reviewed and the problems of implementation discussed in terms of the aid relationship and the particular circumstances of transition economies. The paper concludes that, while the projects immediate objectives in terms of curriculum reform have been achieved, the sustainable change necessary to deliver the central, long-term objective remains elusive.

External Sector Adjustment: Evidence from a 1997 Survey of Export Businesses in Malawi

ABSTRACT Since 1981 Malawi has been undergoing an extensive economic adjustment programme. A key aim has been to diversify and increase exports. This aim has met with little success. To understand why export businesses have failed to respond to exchange rate changes and other incentives we conducted an export business survey of 51 firms and interviewed government officials, private sector representatives, and IMF and World Bank staff. We found that structural rigidities, particularly infrastructure constraints, are so severe that the impact of exchange rate policies and other incentives on external sector adjustment is very limited. Increased policy attention should therefore be paid to these constraints if the adjustment programme is to succeed.

The less developed countries and the global economy

The Transnational Corporation and Uneven Development: The Internationalisation of Capital and the Third World. By Rhys Jenkins. London: Methuen, 1987. Pp.229. £28 (hardback); £8.95 (paperback). ISBN 0 416 733409 and 73350 6. Developing With Foreign Investment. Edited by Vincent Cable and Bishnodat Persaud. Beckenham: Croom Helm, 1987. Pp.viii + 327. £25. ISBN 0 7099 4825 5. International Industry and Business: Structural Change, Industrial Policy and Industry Strategies. By Robert H. Ballance. London: Allen & Unwin, 1987. Pp.xxi + 357. ISBN 0 04 339037 4 and 339038 2. Trade Among Multinationals: Intra‐Industry Trade and National Competitiveness. By Donald C. MacCharles. London: Croom Helm, 1987. Pp. xiv + 207. £30. ISBN 07099 4618 X. Myths and Reality of External Constraints on Development. By James Riedel. Alder‐shot: Gower for the Trade Policy Research Centre, London, 1987. Pp.xvi + 111. ISBN 0566 05336 5. International Economic Restructuring and the Regional Community. Edited by Herman Muegge and Walte...

REGULATORY AND DEVELOPMENT DILEMMAS IN THE POST-CRISIS ASIAN ECONOMIES

This paper discusses the emerging evidence relating to the origins and aftermath of the 1997 Asian financial crisis and its implications for the regulation of the short-term capital account. First, it suggests that the evidence supports an interpretation of the crisis as arising from the inherent instability of short-term, highly liquid capital markets rather than one which focuses solely on common, fundamental weaknesses in the most affected economies. Second, the paper argues that the balance between the state and international and domestic capital is changing as a result of the crisis and that accelerated liberalization and deregulation further weaken the ability of the nation-state to pursue specific development objectives. Given that the nationstate remains the locus of development efforts, liberalization of capital account transactions poses serious problems for policy-makers, with no clear consensus as to the extent of the costs and benefits of alternative policy options.