Thankom Gopinath Arun

The effect of career breaks on the working lives of women

In this paper we examine the effect of career breaks on the working lives of women using survey data from the state of Queensland in Australia. After estimating the income penalty faced by women with career interruptions – according to the duration of, and reasons for, the interruptions – we seek to address a wider set of issues regarding: patterns of job change and income gains or losses related to job change; determinants of career re-entry plans; and satisfaction with hours worked. As women increasingly combine motherhood and employment, they face both penalties and costs, particularly if they have taken a career break in order to care for their young. This general labor market failure that penalizes motherhood should be addressed by relevant measures related to their income, working hours, and the type and status of employment, particularly on their re-entry into employment after a child-related career break.

Financial Sector Reforms in Developing Countries: The Indian Experience

This study is based on the premise that the success/failure of financial sector reforms depends heavily on country specific factors and makes an attempt to examine these factors in the Indian context. The financial sector reforms analysed in this paper include the deregulation of interest rates, increasing competition and foreign ownership, and the introduction of financial supervision. We argue that an economic rationale for a gradualist approach to financial reform is that it is stability enhancing. Furthermore, we suggest that Indias complex political economy has resulted in a gradual approach to reform, and this approach has been successful along the dimension of banking stability. Copyright Blackwell Publishers Ltd 2002.

Corporate governance and capital structure in developing countries: a case study of Bangladesh

This paper investigates the influence of firm-level corporate governance on the capital structure pattern of non-financial listed firms, using a case study of Bangladesh. The agency theory suggests that better corporate governance will reduce agency costs and improve investor confidence, which in turn will enhance the ability of a firm to gain access to equity finance, reducing dependence on debt finance. Conversely, the controlling shareholders of poorly governed firms are likely to prefer debt, in order to retain absolute ownership and control rights. The OLS regression framework uses a questionnaire-survey based Corporate Governance Index (CGI). The study results seem to support agency theory, with a statistically significant inverse relationship between corporate governance quality and the total as well as long-term debt ratios.

Microfinance - A Way Forward

This paper identifies key processes shaping the microfinance sector in the coming decades. The paper examines the geography of microfinance, highlighting differing evolution patterns and challenges across the world. It looks at the widespread adoption of a financial systems approach in the microfinance sector. This is set to continue because of two main processes: a shift in focus from poverty-lending towards financial service provision; and the involvement of formal banks in microfinance. The paper looks at the increasing focus on graduation programmes to support ultra-poor people, linking microfinance to social protection and other services. It outlines the great potential of new, low-cost ICT products to enable the development of new microfinance services. Finally, the need to regulate microfinance is discussed.

Public Sector Banks in India: Rationale and Prerequisites for Reform

This paper contributes to the debate on public sector banks by suggesting several rationales for government ownership of banks in India. The paper then proceeds to argue that due to high economic costs, the current public sector banking system is unsustainable. Although a policy of wider private ownership was introduced in the 1990s, it is suggested that there are several prerequisites to be met before such a reform can be more fully implemented. It is argued that these prerequisites arise from the rationales for government ownership, and they include a credible bank regulatory regime, and government promotion of co-operative banks and credit unions.

Corporate Social Responsibility and Islamic Financial Institutions(IFIs): Management Perceptions from IFIs in Bahrain

Islamic finance is gaining greater attention in the finance industry, and this paper analyses how Islamic financial institutions (IFIs) are responding to the welfare needs of society. Using interview data with managers and content analysis of the disclosures, this study attempts to understand management perceptions of corporate social responsibility (CSR) in IFIs. A thorough understanding of CSR by managers, as evident in the interviews, has not been translated fully into practice. The partial use of IFIs’ potential role in social welfare would add further challenges in the era of financialisation.

Determinants of Remittances: The Case of the South Asian Community in Manchester

Abstract This paper investigates the remittance behaviour of the South Asian community using new data from Indian, Pakistani and Bangladeshi households in Manchester. The findings show that standard variables such as income, employment, education, linkages to the home country and host country are important determinants of remittances. Although remittances are sent mainly for consumption purposes, those sent for land acquisition and savings have stronger association with the amount of remittances. In addition, we find strong evidence for the remittance decay hypothesis for Indian and Pakistani migrants, but not for Bangladeshi migrants.

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.

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.

Finance for the Poor: The Way Forward?

In this valuable new book, a distinguished group of authors takes stock of the existing state of knowledge in the field of finance and the development process. Each chapter offers a comprehensive survey and synthesis of current issues. These include such critical subjects as savings, financial markets and the macroeconomy, stock market development, financial regulation, foreign investment and aid, financing livelihoods, microfinance, rural financial markets, small and medium enterprises, corporate finance and banking.