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Set of flashcards Details
| Flashcards | 67 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | Other |
| Created / Updated | 05.01.2018 / 08.01.2018 |
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How do we measure the Quality of governance?
1. Voice and Accountability
2. Political Stability and Absence of Violence
3. Gpvernment Effectiveness
4. Rule of Law
5. Control of Corruption
1. Voice and Accountability
to what extend a countrys citizens are able to participate in selecting their government, as well as freedom of expression and free media (Election in chiapas was manipulated by systematic vote-buying, theft of ballot boxes, simulated computer crashes, as well as physical violence by PVEM supporters)
Democracy
- Citizens should be involved in the political decision making process - either directly or through elected representatives
- Most modern democratic states practice representative democracy
- Its attraction lies in the principle of political participation, accountability and freedom (of expression, gathering..)
Authoritarianism
Form of government in which one person or one political party exercises sole political, economic, and social (often also cultural) control and prohibits opposing political parties = Monopolization of power
4 Major Forms of authoritarianism:
- Communist authoritarianism
- Theocratic authoritarianism (Tiran)
- Tribal authoritarianism (African Countries)
- Right-wing authoritarianism
Totalitarianism
- Form of government that goes beyond the monopolization of power
- Controls all aspects of social life by even controlling the citizens life and morals = monopolization of power + citizens total submission to the state
Four major example:
Nazi Germany
Fascist Italy
Stalinist Soviet Russia
--> Control of everything (who you marry)
2. Political Stability and Absence of Violence
Capturing perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means.
3. Government Effectivness
Capturing perceptions of the quality of public services and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the governments commitment to such policies.
4. Regulatory Quality
capturing perceptions of the ability of the government to formulate and imlpement sound policies and regulations that permit and promote private sector development.
5. Rule of Law
cpturing perceptions of the extent to which agents have confidence in and abide by the rules of society (in particular the quality of contract enforcement, property rights, the police, and the courts, as well as holding down crime and violence).
6. Control of Corruption
capturing perceptions of the extent to which public power is not exercised for private gain, but fot the long-term interest of the whole nation.
Mexico Facts
- federal presidental representative democratic republic
- was a one-party state until 2000, then again from 2012
- worlds 11th largest oil producer (1/3 of government revenue)
- upper-middle-income country (GNI = 4126.- to 12735.-)
- fight against the 4 Is: impunity, illegality, injustice and inequality
Infrastructure services
- public transport
- water
- education
- waste disposal
- electricity
- hospital / health system
Population growth: 2 mega-trends and one special case
1. Shrinking rich and old
VS
2. Growing poor and young
3. Growing poor and encreasingly old
Urbanization: 2 mega-trends
1. Since 2008 and for the first time in human history, the majority of the worlds population lives in cities. 2050 estimate: 70% of the worlds population lives in cities
2. Most of urban growth will happen in the developing world
What does the HDI measure?
The HDI measures the average social economic development in a country.
What does the HDI consist of?
1. HEALTH: Measured by average life expectancy at birth
2. EDUCATION: Mean years of schooling (all adults) and expected years of schooling (U.N. forecast).
3. STANDARD OF LIVING: Measured by GNI per capita at purchasing power parity (PPP)
Economic development is essential to reduce poverty and must be...?
- socially inclusive
- qulitative
- sustainable
Inequality, lack of opportunities, government ineffieciency, absence of rule of law, etc. can lead to:
- Sustain extreme deprivation, social injustice and lack of opportunities
- Result in wasted human potential
- increase discontent and tension among the people
Increased discontent and tension causes...?
- Political instability
- social conflict
- Increased levels of voilance and crime
4 Types of International Law
1. Public international law -> forming a global community of Western-style nation-states
2. International sales law (CISG) -> offering uniform rules for sales transactions globally
3. World trade Organisation (WTO) and free trade agreements -> ex. Switzerland - China/Japan Bilateral free trade agreement
4. International IP protaction systems (WIPO/TRIPS) -> IP: Parents (up to 20 years), Design (up to 10 yrs), Copyright (50 yrs from publication), Trademarks
What type of law systems in British colonies and what type in French, Belgian, Spanish colonies?
British colonies (ex. India, Canada, USA, Pakistan, Australia) -> Common law system
French, Belgian, Spanish colonies (ex. Senegal, Quebec, Mexico) -> Civil law system
Political Revolutions
- 1075-1122 Papal Revolution
- 1517-1555 Protestant Reformation
- 1585 Dutch Independence
- 1640-1660 Enlish revolution
- 1688-1689 another Enlish revolution
- 1776 American revolution
- 1789 French revolution
- 1917 russian revolution
A revolution typically markes...
- a fundamental change
- a rapid change
- a violent change
- a lasting change
- in the social system as a whole
a revolution typically produces...
- a new system of law
- which embodies some of the major purposes of the revolution
- which changes the western legal tradition (while ultimately remaining within that tradition)
Characteristics of Modern Western Law
Secular: separated from religious principles, not based on revelation
Man-Made: developed through legislation and court decisions
Individualistic: focus on individual rights
Instrumental: meant to serve political and economic interests – and to foster economic and social dynamics
Invasive: state law invading ever more aspect of social life (and crowding out other institutions in the process)
Everchanging: Legal positivism leading to an “institutionalisation of the arbitrariness of legal change”
Expanding: ever-increasing flood of legislation
Main options in international commercial dispute resolution
1. Litigation -> using state court
2. Arbitration
3. Mediation/Conciliation
1&2: Power to render decicions that are binding and enforcable
3: No decicion power
1: Regular judicial dispute resolution
2&3: Alternative Dispute Resolution
2 types of International commercial arbitration
1. Ad hoc arbitration -> no support from an institution
2. Institutional arbitration -> support from: ICC (international Chamber of Commerce), AAA, LCIA, SCAI, CIETAG
Definition of risk?
- Effect on uncertainty on objectives
- The possibility that an event will occur and adversely affect the achievement of objectives
- An uncertain future outcome that can either improve or worsen you position
- The probable frequency and probable magnitude of future loss
- Exposure to a proposition of which one is uncertain
Techniques for managing risk
siehe Bild
Basic Characteristics of Insurance
- Large number of exposure units
- Accidential and unintentional loss
- Determinable and measurable loss
- No catastrophic loss
- Calculable chance of loss
- Economically feasible premium
Main challanges of insurance
- Moral Hazard
- Fraudulent claims
- Inflated claims
Insurance Regulations
- Ensure stability and function of the financial sector
- Protect financial market clients
- Licensing and regulating insurance companies and others involved in the insurance industry
- Monitoring and preserving the financial solvency of insurance companies
- Regulating and standardizing insurance policies and products
- Controlling market conduct and preventing unfair trade practices
- Regulating other aspects of the insurance industry
Benefits of insurance to society
- Indemnification for loss
- Reduction of worry and fear
- Source of investment funds
- Loss prevention
- Enhancement of credit
- Multiplier effect
- Attractive world of employment
Challenges of the insurance sector in the developed world
- Digitization
- Changing customer behaviour
- Saturated insurance markets ( Difficult to expand, growth rate just a little bit higher than GDP)
- Predatory competition
- emerging risk
Why is Insurance a stabilizer to economic growth?
- nonlife insurance makes positive contribution in both developing and higher income economies
- Isurance and banking systems both contribute to growth at the same time
- property casualty insurance avoids high levels of bankrupcy and helps to facilitate credit transactions for houses, consumer durables, and small- to medium-sized businesses that banks typically finance
Drivers of insurance coverage are...
- rising incomes
- moderate inflation
- financial deepening
Stages of insurance market development: Dormat
- Political stability (do insurance for a long-term, e.g. life insurance)
- Property rights
- Freedom of enterprise (Enterpreneurship, can build up something new)
- Voice and Accountability
- Contract enforcement
e.g. Afghanistan, Iraq
Stages of insurance market development: Early growth stage
- Low income and Wealth
- Insufficient Scale of Insurable risks
- Macroeconomic Instability
- Market restrictions (sometimes government protect market and for example monopolize the insurance market)
e.g. Bolivia, Egypt, Mongolia
Stages of insurance market development: Sustained growth stage
- Income
- Scale
- Financial sector development
- Enforcement, judicial efficiency and transparency
e.g. Peru, India, El Salvador
Ways to build robust insurance markets
- Improving insurance regulation and supervision
- Collecting and sharing isurance data
- building actuarial resources
- Supporting professional insurance education
- Educating markets and consumers on standard
- encouraging ethical market discipline
- promoting institutional development and marketing
- connecting regulators with the private sector
- facilitating new insurance markets
