Ross P. Buckley

IMF Policies and Health in Sub-Saharan Africa

Health matters. It is a fundamental human right1 which supports economic development (Kimalu, 2001, p. 2), and although globalisation is not new (Sen, 2001), its impact on health is being increasingly scrutinised (Labonte and Tor Gerson, 2005, p. 157). Generally, trade liberalisation is welfare-enhancing because it promotes economic growth and this should, other things being equal, lead to less poverty (for a brief discussion of this assumption see Labonte in this volume). Conventional wisdom suggests (and there may be some utility in the claim) that a virtuous cycle can therefore arise in which growth promotes health which in turn promotes more growth (Labonte and Tor Gerson, 2005, p. 161): less poverty and the opportunities growth brings for greater expenditures on healthcare should both contribute to improved heath outcomes (Labonte and Tor Gerson, 2005, p. 160). At least ostensibly, the Bretton Woods institutions have sought to manage the unfolding of this virtuous cycle globally, not least by policies that have globalised free trade, sought to control (government) debt, and shape policies for better fiscal and economic management of countries. Their role in global health governance (GHG) and global health policies, therefore, would not on the surface appear automatic or obvious. However, as this chapter argues, in the case of the International Monetary Fund (IMF) this is clearly not the case, and the agency has had both a direct and indirect impact on the national health systems (NHS) of many developing countries and the ability of the poorest to access healthcare.

Debt-for-Development Exchanges: The Origins of a Financial Technique

Debt-for-development exchanges grew out of debt-equity exchanges and now include debt-for-nature, debt-for-education and debt2health exchanges, among other variants. This history and analysis of the evolution of this idea sheds considerable light upon the technique and allows a more nuanced appreciation of it.

TURNING LOANS INTO BONDS: LESSONS FOR EAST ASIA FROM THE LATIN AMERICAN BRADY PLAN

The Brady Plan provided a partial solution to the Latin American debt crisis of the 1980s. This article revisits and analyses the Plan in considerable detail and explores the potential application in East Asia today of the ideas behind the Plan, and of the lessons that can be drawn from it. Seven lessons are identified. The Brady Plan was conceived and developed in Latin America and the principal lesson is that although it may not be replicated, developing nations may learn from it. Innovative domestic solutions are recommended for the resolution of financial problems and debt crisis.

An Assessment of Malaysia's Response to the IMF During the Asian Economic Crisis

Malaysia was the only country severely affected by the 1997 Asian economic crisis that declined to adopt an IMF program. This article assesses this decision in terms of principle, and of the outcomes of the unorthodox policies Malaysia implemented. It concludes that Malaysia recovered at least as quickly as any country that implemented IMF policies and gained a number of significant advantages by charting its own course out of the crisis. Saying no to the IMF was right for Malaysia.

From FinTech to TechFin: The Regulatory Challenges of Data-Driven Finance

Financial technology (‘FinTech’) is transforming finance and challenging its regulation at an unprecedented rate. Two major trends stand out in the current period of FinTech development. The first is the speed of change driven by the commoditization of technology, Big Data analytics, machine learning and artificial intelligence. The second is the increasing number and variety of new entrants into the financial sector, including pre-existing technology and e-commerce companies. This paper considers the impact of these new entrants with their typically large pre-existing non-financial services customer bases. These firms (loosely termed ‘TechFins’) may be characterised by their capacity to leverage the data gathered in their primary business into financial services. In other words, TechFins represent an Uber moment in finance. This shift from financial intermediary (FinTech) to data intermediary (TechFin) raises implications for incumbent financial services firms, FinTech startups and regulators. This seachange calls for analysis to underpin regulatory approaches with a view to balancing the competing interests of innovation, development, financial stability and consumer protection.

The Implications of Complexity for Systemic Risk in the Superannuation System

The funds, entities and regulators involved in the Australian superannuation industry together comprise a system that is complex and dynamic. The differentiation between roles and the distribution of responsibility offers the system as a whole resilience against local failure. However the interconnections that bind and constitute the system have the potential to create and transmit risks within the system. This undermines the systems resilience to exogenous shocks. This paper uses a new data set on 200 Australian superannuation funds to map and analyse those links as a first step towards assessing the nature and severity of the threat that the links pose to systemic resilience. It concludes by outlining some of the regulatory issues that arise.

Protecting Mobile Money Customer Funds in Civil Law Jurisdictions

The provision of financial services through mobile phones is a powerful tool to foster financial inclusion, and thus economic growth, in developing countries. However, it raises important regulatory issues. Given the vulnerability of most potential customers of these services, the protection of customer funds is important. In common law countries, trust accounts are an effective response to these concerns. In civil law jurisdictions however, in the absence of trusts, protection of customer funds is more difficult. This paper identifies the theoretical and practical problems that regulators in civil law jurisdictions might face when trying to protect customer funds and explores how fiduciary contracts, mandate contracts and direct regulation might be used to achieve this goal. It offers a series of practical recommendations for policymakers in developing countries that provide a range of regulatory options that combine private law and regulation.

Three Major Financial Crises: What Have We Learned

Few experts predicted the Asian Financial Crisis of 1997-1998, or the Global Financial Crisis of 2008 and its close companion the Eurozone Debt Crisis of 2010, and we certainly do not pretend to be able to predict the next one. Yet history teaches there will be another crisis and probably sooner rather than later, and, of course, in the decade since the start of the Global Financial Crisis, the Eurozone crisis has been ongoing in many of its dimensions. Fragility that periodically erupts into a full blown financial crisis appears to be an integral feature of market-based financial systems in spite of the advent of sophisticated risk management tools and regulatory systems. If anything the increased frequency of modern crises since the collapse of the Bretton Woods international monetary system and the period of financial internationalization and globalization which has followed, underscores how difficult it is to prevent and deal with systemic risk. We thus seek to compare and contrast these three major crises both to distill the lessons to be learned, and to identify what more can be done to strengthen our financial systems. The following sections will provide an overview of each crisis in turn, considering in particular (i) its causes; (ii) the effectiveness of policy responses; and (iii) the lessons. In the conclusion we seek to draw some common themes from these experiences going forward.

Regulating FinTech in China: From Permissive to Balanced

This chapter analyzes the evolution of FinTech and related regulation in China. Thanks to the supportive economic and policy environment, the growth of digital financial services (“DFS”) in China over the past decade has been phenomenal, making China now one of the worlds largest DFS markets. In the meantime, the digital finance boom has created serious concerns and challenges for Chinese regulators in relation to issues such as financial stability, consumer protection, illegal financial activities, etc. To address these issues, the Chinese government has committed to develop a comprehensive framework for the regulation and supervision of DFS and has taken a balanced approach whereby the promotion of DFS will continue under such a framework so as to ensure the sustainable development of DFS. The major challenges ahead are to ensure the regulatory framework has the potential to deal with new forms of DFS and new problems associated with DFS, and to balance the regulation of DFS with its healthy growth.

RegTech: Building a Better Financial System

Abstract Regulatory technology or ‘RegTech’ is the use of technology, particularly information technology, in the context of regulatory monitoring, reporting and compliance. RegTech to date has focused on the digitization of manual reporting and compliance processes, for example in the context of know-your-customer requirements. This offers tremendous cost savings to the financial services industry and regulators. However, the potential of RegTech is far greater – it could enable close to real-time monitoring and a proportionate regulatory regime that addresses risk and facilitates more efficient regulatory compliance. We argue that the transformative nature of technology will only be captured by a new approach that sits at the nexus between data, digital identity, and regulation. We seek to expose the inadequacy and lack of ambition of simply digitizing analogue processes in a digital financial world. The development of financial technology (‘FinTech’), rapid developments in emerging markets, and the recent pro-active stance of regulators in developing regulatory sandboxes, represent a unique combination of events, which could facilitate the transition from one regulatory model to another.