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Chapter 3. 1970 to 1990: Development Finance in Crisis and the Search for a New Paradigm

This chapter explores the challenges to early development finance strategies that relied on project loans and development finance corporations (DFCs). Using recently declassified archival documents, the chapter analyzes how a lack of standardized implementation and assessment procedures hampered project loans. DFCs were beset by problems of political interference, improper incentives, and financial dependency. While development institutions, led by the World Bank, sought to improve results by aligning development policy with the discipline of financial markets, reforms were limited. A mix of strict World Bank regulations, internal disagreement, and a lack of political will from stakeholders circumscribed efforts to leverage private markets for development. Instead, the stage was set for another development institution to experiment with marketized development financial instruments.

Peter Volberding

Chapter 5. A Different Kind of Sea-Level Story from Malaysia

In many countries of Southeast Asia, the sea is the primary source of food and center of the community. Life is very simple and intertwined with the ocean’s moods. So many people depend on this sea, day after day, generation after generation, despite monsoons, typhoons, erosion and flooding, death and hardship. Surprisingly, little study had been undertaken to help these communities anticipate the impact of coastal change on their lives and livelihoods. My study of nearly every Malaysian island, shore and coastal plain stream allowed me to interpret past coastal influences and predict future impact. It also allowed me to experience this amazing country and her people under every conceivable circumstance, some warm or amusing, some perilous and some death-defying.

Peter R. Parham

Chapter 3. Problems and Challenges China Faces in the Middle-Income Stage

The report to 18th CPC National Congress made it clear that speeding up the transformation of the mode of economic development was an important measure to implement the inherent requirements of the scientific concept of development and promote scientific development, and that technological advances and innovation should be taken as an important underpinning for speeding up the transformation of the mode of economic development. We should further implement the strategy of rejuvenating the country through science and education and the strategy of strengthening the country through talent, give full play to the role of science and technology as primary productive forces and talents as primary resources, improve the level of education modernization, enhance indigenous innovation capability, expand the ranks of innovative talents, push for a shift toward relying mainly on technological advances, the improvement of the quality of the workforce, and innovation in management for development, and accelerate the building of an innovation-driven country.

Zhijie Zheng

3. Some Basic Mathematical Exercises

This chapter begins with drill exercises—those used to drill students until they acquire the necessary skills to move on. Drill exercises can range from the mundane, through word problems designed either to illustrate the situations in which the skills are useful or to provide some entertainment in acquiring the skills. A number of examples are offered, the section on such exercises ending with one of the most fruitful drill exercises ever proposed: Fibonacci’s Rabbit Problem.The second section of this chapter discusses challenge exercises by presenting three problems from an early 20th century mathematical competition along with their solutions.The bulk of the chapter is the discussion of exploratory exercises in which some new concept or tool is introduced and one is encouraged to explore, spotting regularities, formulating conjectures, and proving them. The two main examples offered are the Fibonacci numbers arising from the aforementioned Rabbit Problem and the Tower of Hanoi. The Fibonacci numbers have long been a staple of recreational mathematics because they have so many readily discovered properties, many of which are easily proven. The Tower of Hanoi, also originating in recreational mathematics, has become a standard example, this time in computer science, of solving a problem easily using recursion and not so obviously easily directly. The study of these topics is mildly extensive.

Craig Smoryński

Chapter 1. Introduction: The Development of International Banking in Asia

To provide an understanding of financial globalisation from a historical viewpoint, this volume sheds light on international banking in Asia before the Second World War. International banking facilitated the relationship between Asian economic development and international financial centres. In this introductory chapter, Sect. 1 provides a summary of the history of intra-Asian trade. Section 2 conducts a literature review on the history of international banking. Section 3 reviews the chapters in this volume. Section 4 presents a historical perspective on the development of international banking in Asia derived from this volume. From the 1870s onward, intra-Asian trade grew faster than the trade of other regions or global trade. This provided plenty of opportunities for international banks in Asia. Until 1913, such banks were from industrialised nations such as the UK, France, Germany, and Japan. Although trade within Asia and the wide variety of nationalities of international banks providing trade finance in Asia were highly important, such finance heavily depended on pound sterling bills of exchange on London and the financial markets there. After the First World War, indigenous banks, especially from China, also started entry into international banking in Asia. However, British banks like HSBC kept their leadership in Asian international finance. This historical context is still reflected in current Asian international finance such as syndicated loans.

Ayumu Sugawara, Takeshi Nishimura

Chapter 9. German International Banks in East Asia (1889–1913)

In this paper, the development in and withdrawal from Asia of the Deutsche BankDeutsche Bank and the development and characteristics of the Deutsch-Asiatische BankDeutsch-Asiatische Bank (DAB) (hereinafter, DAB), also in Asia, are analysed. On DBA, the analysis is based on the newly explored archival materials, which are original financial statementsFinancial Statement of the bank in 1906. DBA’s headquarter was established in Shanghai, which was an economic centre in Asia linked to the international market. On the other hand, due to its Articles of Association, the DBA’s overall corporate governance was determined in Berlin. During the steady development of the economic situation in Asia, the core banking operations of the DABDeutsch-Asiatische Bank (DAB) were foreign exchange business and trade-related lending to European trading companies, comprador capitalists, and local financial institutions, while in Shangdong ProvinceShangdong Province, the German settlement in China, the DAB established close relationships with the railway and mining managements. As an outcome of business activities in 1906, the DABDeutsch-Asiatische Bank (DAB) generated almost all profits based mainly on foreign exchange revenue. In detail, the Shanghai, Tientsin, Berlin, Tingtau, Hong Kong and Yokohama offices earned profits. Thus, the role of the DBA was important not only from the perspective of the imperialism theory constrained by capital export but also from the perspective of establishing trade finance infrastructure.

Motoaki Akagawa

Chapter 4. British International Banking

The origin of the British international banks can be traced back to the Bank of Australasia, the Bank of British North America, and the Colonial Bank established in British colonies such as Australia, Canada, and the West Indies in the 1830s. These banks were granted Royal Charter from the British government. Among the banking companies that entered Asia, the Oriental Bank Corporation was granted a Royal Charter for the first time only in 1851. This delay was attributable to opposition from the East India Company. After addressing the resistance of the East India Company, the greatest challenge for the British international banks in Asia was the decline in the silver price s from the late 1870s. Additionally, they had been forced to compete with international banks of other countries such as France, Germany, and Japan. In this chapter, we will focus on the British international banks that had entered Asia and provide insights into the banking business there. In particular, we will approach these issues by analyzing the internal accounting records of these banks. We will also examine the business activities of the banks in the New York financial market, which have not been examined hitherto.

Masashi Kitabayashi

Chapter 10. American International Banking in Asia: The Case of IBC in China

The purpose of this chapter is to explore the nature of the business conducted by the branches of an American international bank, the International Banking Corporation (hereafter IBC). Although IBC had the largest foreign branch network among the US banks before World War I and it mainly focused on Asia, it was the latest entrant among major international banks in the East. The literature on American international banking before World War I clarified why expansion of foreign branch networks was restricted by their institutional background. However, it does not clarify the branch level activities of the US international banks due to limited access to archival materials. Therefore, even though only partially, we try to fill the gap based on newly explored archival sources. Consequently, we clarify the roles of four branches of IBC within its branch network: London Branch was the key for acceptance; Beijing Branch supplied funds to Shanghai Branch; Tianjin Branch focused on foreign trade finance; and Guangzhou Branch conducting both exchange transactions and fund supplies to Hong Kong Branch. However, competing with other banks, especially with British ones, IBC lagged because it had a similar business model to them and it was also a latecomer.

Ayumu Sugawara

Chapter 7. French International Banking: A Historical Survey

This chapter aims to present a historical overview of French international banking, focusing mainly on its activities in Asia. French international banking was the incarnation of the performances of the Paris market and the French economy. Paris as a financial center was strong enough to attract capital from European centers, although Paris market could not develop essential functions, such as acceptances, to become a truly global market. The governance and decision-making structure was the core of the strategies of French international banks; their profit depended on branch networking and operation selection; and the latter indexes often urged change in governance at French banks. The French international banks could not maintain their branch networks, especially in Asia, and they had to rely on British banks and the London market. French banking overseas was inferior to British banking by size and access to the credit. On the other hand, the banking in the French colonial empire was in a certain degree successful, which accumulated a huge reserve out of its colonial business. Finally, the chapter would propose three subjects expected in the future on the historical study of the French international banking: the function of acceptance and discount market; a biographical study on the lower management of the banks, notably branch managers; and the local financial practices in Asia.

Kazuhiko Yago

Chapter 3. From Silver to Gold: The Currency Reforms in Asia Before 1914

Standard silver prices began rapidly declining in the London silver market in the 1870s. Most countries and colonies that had previously adopted bimetallism or the silver standard were forced to reform their currency systems and adopt the gold standard. However, in Asia, local and regional merchants, as well as the local and regional government and most authorities, continued to use silver currency as a primary medium of exchange. Adopting the gold standard was less straightforward for Asian economies than for continental Europe. However, between the end of the nineteenth century and the beginning of the twentieth century, most colonies and countries in Asia adopted the gold-exchange standard. This reform contributed to expanding the international trade between Asia and the rest of the world and also promoted intra-Asian trade at the beginning of the twentieth century. In other words, the gold-exchange standard, which had both the function of the gold standard and a large amount of silver circulation, was one of the most important institutional fundamentals for the development of Asian economies at the beginning of the twentieth century.

Takeshi Nishimura

Chapter 4. Role of People in Security—Operational and Organizational Security

In this chapter you will learn about operational and organizational security, the importance of security-related awareness including training, and the role of people in security.

Ahmed F. Sheikh

Chapter 7. Instead of General Conclusions—A Few Additional Thoughts

The chapter briefly argues how the return towards the founders helps sustainability regain its natural course. Three conclusions, of maximum importance, come to light: (1) the idea of a unique recipe of sustainability is obsolete; (2) the drunkenness of words smothers the project of sustainable development; (3) the development model suggested by the founders has remained valid and successful. The proof of why the founders are needed is delivered by making recourse to the heavy pieces of their theoretical artillery: the standard of value, the role of inheritance, of accumulation, the relation between absolute and relative wealth, the natural price and natural rate of interest, dynamics vs stationarity, self-development achieved through the unitary treatment of demand and supply, the role of nature, the equality-inequality relation, the possibly perverted effect of social issues on economic logic, the national-global relation. These are just a few founding highlights with profound effects on sustainability.

Ion Pohoaţă, Delia Elena Diaconaşu, Vladimir Mihai Crupenschi

Chapter 6. Free Competition: An Invitation to a Less Explored Type of Sustainability

The main idea consists of the chance afforded to sustainability by the natural price of commodities and money. The mechanism of natural price belongs to an honest competitive environment, limited only by the law on all the markets for factors of production. Monopoly is not suitable for this logic.In this context, the enemies of natural price are the state and the central bank. The alluring administered social prices and the absence of the public economy from the game of competition are the prerequisites of the first enemy. Quantitative easing cut off from the real economy is the modus operandi of the second enemy. In this case, the vaccine is represented by the natural rate of interest. A phantasm for the political factor, its meaning bears a detonating role for the analysis of the economic cycle and it bears a neutering effect for the total independence pretence of central banks.

Ion Pohoaţă, Delia Elena Diaconaşu, Vladimir Mihai Crupenschi

Chapter 4. How Countries Manage Large Central Bank Balance Sheets

Central banks often hold far more assets, and issue more liabilities to finance those assets, than is necessary to provide their domestic payments systems with adequate liquidity. That is to say, their balance sheets are “large” (See Stella (2010) Minimising monetary policy (BIS Working Paper 330)). Frequently central banks are large owing to their holdings of foreign reserves. Yet there is an interesting heterogeneity in how central banks finance large balance sheets. Those with lengthy experience managing large balance sheets almost invariably finance “excess assets” with non-monetary liabilities while those who are relative novices have relied heavily on monetary liabilities—bank reserves. This chapter examines a variety of practice managing large balance sheets since the global financial crisis (GFC). We argue that the recently expanded balance sheet countries may benefit from adopting the policies of their more experienced colleagues who have already “learned by doing.” In financial terms, experienced central banks have found that financing their balance sheets either directly or indirectly with a mix of government securities that are tradable among banks and non-banks is generally more efficient than financing excess assets with bank reserves—fungible only among banks. That is, over time, as central banks gain experience managing a large balance sheet, they tend to adopt more sophisticated and efficient financing strategies. Those financing strategies provide central banks greater scope for managing the risk and duration of their assets.

Peter Stella

Chapter 9. Expansion and Contraction of Central Bank Balance Sheets: Implications for Commercial Banks

Reserves and institutional asset managers have to constantly monitor and assess risk-return trade-offs in the markets where they invest. Among the various tools and indicators that they employ, understanding the balance sheet strength of commercial banks is indispensable. This is because of the role of banks as credit intermediaries for financing economic activity and their important function in the payment and market infrastructures for financial transactions. As central banks have embarked on many, new unconventional monetary policy measures, it is important to ask what the impact on commercial banks is, and whether this enhances or inhibits their traditional credit intermediary role. This chapter examines these questions and considers what hidden risks might be building up as central banks accumulate assets.

Srichander Ramaswamy, Philip Turner

Chapter 13. Reserve Management at Danmarks Nationalbank: Combining Liquidity Tiers with an Adaptive Risk Budget

Over the recent years, Danmarks Nationalbank has transformed its approach to reserve management. The new framework is organized around two main pillars—a tiered liquidity management framework and an overall risk budget. Together they provide a framework for handling large balance sheet fluctuations—a consequence of the fixed exchange-rate policy—while aligning long-term exposure to investment risk with the primary policy objectives. The anchoring of the risk budget to a “policy portfolio” clarifies the risk and return implications of the bank’s multiple objectives and highlights the rationale for diversification.

Morten Kjærgaard, Rasmus Vahle, Jacob Wellendorph Ejsing

Chapter 23. Modern Central Bank Reserves Management: Introduction and Overview

The management of central bank reserves is a subject in which best practice does not remain constant but is continually evolving. As markets develop and overall levels of central bank reserves have grown, so the task of managing them has changed and becomes more complex. New instruments have been added to the universe of acceptable assets, and more markets have become open and investable for international investors. For a number of countries, the reserves have become a significant national asset and potential income generator that needs to be invested wisely and profitably, and public scrutiny of the activities of central bank reserves managers in these countries is both legitimate and important. Even for countries whose reserves are more policy-orientated and less a store of national wealth, the reserves management function has often grown in significance, and today’s reserves managers have responsibilities to their own senior management, to their wider national public, and to markets and other market participants.The traditional trilogy of objectives of “Security, Liquidity and Return” that has guided reserves managers over the years is still valid. But it needs updating and extending for today’s more complex and multi-faceted challenges. This chapter seeks to do so.

John Nugée

Chapter 19. Central Bank of Brazil: Investment Decision-Making in an Integrated Risk Management Framework

Risk management is an evolving discipline. Its contribution to protect the integrity of an organization is well-known. The primary objective of the risk function is to establish a structural and process-driven environment that facilitates the achievement of the organization’s objectives, mitigate risks whenever possible, and control residual risks. Combined, they improve the organization’s resilience in case of risk incidents. Nevertheless, the risk function today goes beyond its traditional role of reporting and controls. It plays a fundamental role in the organization’s operational and strategic decision-making processes. A pro-active approach therefore creates, collects, and disseminates information about all organizational risks. Risk information properly intertwined in the decision-making process, combined with a robust governance can minimize decisions biases and, consequently, foster a better alignment between strategic objectives, risk appetite and decisions. This chapter discusses how risk information can substantially impact the investment decision-making, improving decision quality and increasing transparency.

Isabela Ribeiro Damaso Maia

Small Baltic States: Sensitivities and Vulnerabilities

As is the case with many other small states, there are few studies about the Baltic States. Small states might simply not be as interesting as major powers, institutions, multinational organizations, interests groups or any other influential actor in international affairs.

Sandis Sraders

Chapter 10. The Basel Accords and Islamic Banks

The primary cause of the colossal failure of financial institutions worldwide—banks in particular—in the wake of the 2007–2008 turmoil has been the heightened lure of leverage gains that led them to expand credit beyond what the volume and quality of their capital assets warranted. The devastation led to a major policy shift in finance at the national and international levels, with a focus on capital adequacy that financial institutions must observe for their own safety as well as for the wider social interest.

Zubair Hasan

Bordeaux’s Playful and Sporty Maritime Life: A Revolution of Venues and Activities

In Bordeaux, the succession of two different types of maritime life, one based on work and trade, the other related to leisure activities and sports, has been leaning increasingly since the 1960s in favour of the second. This movement is part of the transformation and reappropriation of the historicity of river towns and their recomposition. The practices diversify: the quays are landscaped into leisure and sports areas; the banks, more and more attractive, become public spaces with the open sea as the horizon; the river and its surroundings are no longer just décors or workplaces, but offer themselves as facilities for recreational pursuits. The spaces change name and purpose: wet docks become marinas, the river site becomes yachting basin, the hangars become venues for recreational or commercial meetings, the shipyards seek new functions, even the new bridges are largely for pedestrians, cyclists and people enjoying themselves. The incessant invention of new practices and the transformation of places bear witness to the innovation and transformation capacities of an urban and post-industrial society seeking a new sense of existence through leisure, by mixing an ideational world of representations with the real world of places in another economic, political and participatory organisation.

Jean-Pierre Augustin

Chapter 11. Conclusion

This thesis has assessed the scope for GPP under WTO law in view of the GPA’s non-discrimination requirements. It followed a multilayered approach, assessing three different regulatory levels: Part I started with general observations, embedding GPP in the broader context of the trade and environment debate. Part II then turned to the level of the WTO, discussing the role of public procurement as well as GPP and analyzing the wording of the revised GPA under consideration of interpretational approaches. Part III and Part IV focused on the level of implementation, illustrating firstly the regulatory context and design of the EU public procurement directives and secondly, analyzing the scope for GPP in Switzerland against the background of the total reform of Swiss public procurement laws.

Rika Koch

Chapter 4. Effects of Economic and Financial Crimes. Ways of Fighting Against

The last chapter emphasizes the effects of such economic and financial crimes at economic, financial social, and political levels. The presentations made include, on one hand, a synthesis of the review of the specialized literature about the relations investigated and, on the other hand, the progress of own studies for documenting the existence and intensity of such influences.The economic and financial effects of economic and financial crimes are presented within two opposite theories: “sand the wheels” theory and “grease the wheels” theory. An important strand in the literature supports the “sand the wheels” theory, documenting the negative influence of economic and financial crime upon the economy, under the various forms: on economic and sustainable development, on the state budget, and on business performance. We also discuss about the “grease the wheels” theory which document some positive effect of economic and financial crime upon the economic and sustainable development of countries. Then, social effects of the economic and financial crime on the volume and quality of public services, on population health, are analysed.The negative effects of economic and financial crime acts calls for a focus on professional organizations to combat this scourge. For this purpose, this chapter summarizes the measures to prevent and fight against this scourge and the main international and national bodies meant to implement these measures in the fight against economic and financial crimes. Finally, we present short allegations about the usage of the judicial expertise as specific technical method meant to investigate the economic and financial crime.

Monica Violeta Achim, Sorin Nicolae Borlea

2. Trade Operations: Execution, Settlement and Reconciliation

This chapter provides an introduction to fundamental concepts in trade operations for alternative investment funds. It begins by outlining the types of securities traded by alternative investment funds. The concept of trade idea generation compared to trading strategy is then discussed. The pre-trade processes including the use of a pre-trade blotter and pre-trade compliance checks are then discussed. Other topics addressed in this chapter include an overview of the trade confirmation, clearing, settlement and reconciliation processes. Finally, we discuss trade allocation- and trade compliance-associated trading risks.

Jason Scharfman

Chapter 4. Can I Afford This?

SO YOU HAVE AN IDEA OF HOW you want to improve an existing building, and you have found the people in your organization who will support that mission. Now what? How do you get approval of your ideas to make them a reality? Building your case through an evidence-based approach to the project will show your team an integrated path to making your old building perform like a new one. Try to keep a couple of things in mind. First, the potential value from improving an existing building is far-reaching, and, second, you are not alone in your search for solutions.

Robert P. Sroufe, Craig E. Stevenson, Beth A. Eckenrode

Chapter 2. The Sovereign Crisis, Its Aftermath, and How Monetary Policy Has Changed

With the 2010 sovereign debt crisis, the Economic and Monetary Union (EMU) entered a critical phase, having to address questions of an existential nature for the first time, including the risk of default of one or more of its member states. In light of a rapidly deteriorating financial and economic environment, the transition between former president Jean-Claude Trichet and his successor, Mario Draghi, began to mark a different approach to monetary policy. This chapter provides a narrative overview of how monetary policy has changed over the 2009–2019 period and assesses its impact and efficacy on both financial markets and the real economy.

Corrado Macchiarelli, Mara Monti, Claudia Wiesner, Sebastian Diessner

Chapter 2. Social Policies and Conditional Cash Transfer Programs (CCTs) in Latin America

This chapter presents the context of social policies in Latin America, within which the CCTs and their main characteristics were generated. In the first place, a brief definition of the programs is presented and then the socio-economic and political context in which they arise is explained. Next section seeks to provide an overview of the CCTs in the region, showing their development and the characteristics that explain their relevance. Likewise, the two initial and emblematic cases, Oportunidades from Mexico and Bolsa Família from Brazil, are discussed, which are essential to understand the diffusion of CCTs in the region. Finally, the existing arguments in the literature about the diffusion of the CCTs of the region, and the questions that emerge for the development of this research are addressed.

Cecilia Osorio Gonnet

Chapter 7. Advanced Cucumber

In the previous chapter, I gave you an introduction to Cucumber. In this chapter, you learn about the more advanced features of Cucumber, and you also go into implementing a more elaborate example case. There is a lot to cover in this chapter, including the extensive test case, making the chapter a little bit longer than the average.

Panos Matsinopoulos

Chapter 8. Russian Empire and Consequence: Refutation of Lenin’s theory

Capitalism in Russia in the nineteenth century had experienced several waves of booming industry. One of them occurred in the 1890s. In that decade, the gradual improvement of economic organization and the development of production technology led to a significant growth of the market. Industrial capitalism has entered a newly developed phase, embodied in numerous joint-stock companies, by importing capital from Britain, Holland, and Germany. This chapter explains how capitalism in Russia, like Japan, was developed with imported capital

Dipak Basu, Victoria Miroshnik

Chapter 3. Philosophy and Sociology of Space

In this chapter, the examination was carried out with the ambition of introducing his point of view in the “Critical Theory of Space” as a first step towards a more complete re-conceptualization of these themes in the twenty-first century. Several scholars don’t include the full framework of his thought and consistently define Lefebvre as a “sociologist,” a “philosopher,” and an “urbanist,” among other definitions. My original point of view provides a full and complete reconstruction of Lefebvre’s theory of space. In the second part of the chapter, I show that Lefebvre, in reassembling the matter of the Commune as original experience of urban self-management and as collective feast destined to end tragically, gives us a glimpse of the ambivalence of the European city and the weight of its tradition, suspended between the claims for radical liberation and the load of the economical-political rule focused on the space’s hierarchization.

Francesco Biagi

3. The Guidance Made by UNCITRAL as International Standards

In Chap. 2, PFIPs were shown to benefit the development of China, but that current laws on PFIPs in China are hindering their use. Moreover, as the objective conditions in China were also shown to be mature enough, Chapter 2 concluded that it was time to reform Chinese laws on PFIPs. The next question is what guidelines or experiences should be taken from international organizations or other countries so that this law reform can achieve the aims of the law makers, since China has no experience in establishing comprehensive legislation on PFIPs? The aim of this Chapter is to consider the guidelines of the international organizations and the experiences of other countries, which could become references for Chinese law reform on PFIPs.

Shuang Liang

4. Incentives and the Economics of Securitization

This chapter addresses the economics of securitization at a fundamental level. We first see how, in theory, securitization should not exist. Then we look into various economic models that can explain not only why securitization actually exists, but also why it makes use of certain fundamental structuring tools. We effectively decompose the notion of the existence of securitization into the existence of its fundamental components. First, for securitization to exist, selling assets needs to be optimal. Second, for securitization to exist as debt issuance, there has to be some optimality in debt versus equity or other forms of securities issuance. To address the first part of the question, we look through various explanatory factors which are considered to be taxes, bankruptcy or regulatory costs, and certain synergies and asymmetries in information. We analyze a range of models and discuss their relevance in light of empirical studies. Then, we turn to the justification of debt financing in securitization. We study various models explaining how the optimal financing security that will not be mispriced by investors takes the form of debt. Finally, we look into how well these models account for reality.

Laurent Gauthier

Chapter 12. Modern Monetary Policy

Great changes took place in monetary policymaking during and after the Global Financial Crisis. At the height of the crisis central banks drastically lowered their policy rates and continued to do so when a deep recession emerged. As lower interest rates had practically no impact, central banks resorted to unconventional monetary policy. Taking unprecedented action, they brought down rates to zero and even lower in Europe. When recovery was slow in coming, more drastic actions followed, central banks buying massive amounts of long-term bonds in an effort to bring down long-term rates. In a further move, forward guidance with respect to future policy rate changes was introduced. Central banks also became more transparent and improved their external communication to the outside world. Intensified cooperation between central banks was a positive outcome of the crisis.

Onno de Beaufort Wijnholds

Chapter 4. Attack Infrastructure

Control servers are central assets for attackers—with two contrary functions. On the one hand, they serve as a defensive wall against analysts and security companies by forming one or more anonymization layersanonymization between the victim networks and the attackers’ computers. On the other hand, they are often the only means to keep access to compromised networks. The first section in this chapter discusses setting up and operating the attack infrastructure from the perpetrators’ point of view. Which organizational and technical setups of control servers can be chosen from? What OpSec requirements need to be followed when domains are registered and servers rented, and what are the benefits of compromising third party servers instead? Are dynamic DNS providers the best defense against attribution? How do attackers keep track of dozens of victims with hundreds of infected machines? The bigger part of the chapter covers the methods of analysts. What insights can be gleaned from publicly accessible information such as Whois data, name servers, hoster networks, and passive DNS? Which phases of attribution are they used for? This chapter also explains how control servers can be found by active scanning, and which services provide data for proactive threat hunting.

Timo Steffens

Chapter 4. Sales

This chapter focuses on client-facing positions combined in the Global Markets area as SalesSales” \r Sales. After discussing a salesperson’s typical setup on the trading floor, the various functions of Sales are detailed. Cognitive biases are discussed. A case study provided further insight into the role of Sales. The chapter concludes by listing the main challenges ahead.

Fidelio Tata

MicroCash: Practical Concurrent Processing of Micropayments

Micropayments have a large number of potential applications. However, processing these small payments individually can be expensive, with transaction fees often exceeding the payment value itself. By aggregating the small transactions into a few larger ones, and using cryptocurrencies, today’s decentralized probabilistic micropayment schemes can reduce these fees. Unfortunately, existing solutions force micropayments to be issued sequentially, thus to support fast issuance rates a customer needs a large number of escrows, which bloats the blockchain. Moreover, these schemes incur a large computation and bandwidth overhead, limiting their applicability in large-scale systems.In this paper, we propose MicroCash, the first decentralized probabilistic framework that supports concurrent micropayments. MicroCash introduces a novel escrow setup that enables a customer to concurrently issue payment tickets at a fast rate using a single escrow. MicroCash is also cost effective because it allows for ticket exchange using only one round of communication, and it aggregates the micropayments using a non-interactive lottery protocol that requires only secure hashing and supports fixed winning rates. Our experiments show that MicroCash can process thousands of tickets per second, which is around 1.7–4.2 $${\times }$$ times the rate of a state-of-the-art sequential micropayment system. Moreover, MicroCash supports any ticket issue rate over any period using only one escrow, while the sequential scheme would need more than 1000 escrows per second to permit high rates. This enables our system to further reduce transaction fees and data on the blockchain by $${\sim }50\%$$ .

Ghada Almashaqbeh, Allison Bishop, Justin Cappos

International Organizations’ Approaches to Digital Assets Legalization (Monetary Policy and AML/CFT)

The article investigates doctrinal approaches of international organizations to the legalization of digital assets in the light of monetary policy and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT). The purpose of the research is to study current aspects of digital assets legalization at the international level in the context of the monetary policy and AML/CFT. This study is predominantly based on analytic papers and documents issued by Global Financial Regulators – IMF, FATF, BIS. The author pays attention to the regulation of crypto-assets by the EU authorities, especially the European Banking Authority (EBA), develops a concept of international legal personality of the FATF as a vivid example of an informal intergovernmental organization. The analysis of legal and other documents of the EAEU bodies plays a very important role. The study also focuses on the position of the FATF in relation to virtual assets and virtual asset service providers (VASP), as well as the monetary taxonomy of the IMF and the BIS, the relationship between the FATF and the FATF-style regional bodies, the contribution of such organizations to the regional economic integration in comparison with formal intergovernmental organizations. The methodology of the research comprises historical, comparative, formal-legal and functional methods, systemic approach.

V. E. Ponamorenko

Chapter 1. Why Immutable Architecture

Distributed systems are hard.

Michael L. Perry

Chapter 5. Institutional Designs for the Reorganization of the Three Privatized Banks and Regional Banks

Centralized and bloated, public financial organizations have become too big to efficiently deploy their human and physical resources in an effort to get people to deposit their savings in a network of small branches that stretches across Japan. Public financial services lack the know-how to deal with risks and bad loans because they are protected by a government guarantee or automatic government guarantee when investing funds. That’s why they fail to operate as financial institutions in the true sense.

Akira Uno

Chapter 4. Theory and Empirical Analysis for the Restructuring of the Three Privatized Public Financial Institutions and Regional Banks

In 2002, following the FILP reform, the government claimed that Japan’s policy-based finance system was a behemoth when stacked up against the systems of other countries and that its burgeoning scale had caused the financial and capital markets’ resource allocation mechanism to break down. Stressing that enhancing the efficiency of the financial and capital markets was a top priority, the Japanese government insisted that a drastic reform of policy-based finance was crucial in order to unshackle the private sector. The government believed that public funds should be used by private financial services to promote its growth strategy.

Akira Uno

Chapter 2. Financial Inclusion for Poverty Alleviation: The Role of Islamic Finance in Bangladesh

Despite the role of Financial Inclusion in the progress of efficiency and equality in society, 2.7 billion people (70% of the adult population) in emerging markets have no access to basic financial services—many from countries with a predominantly Muslim population. Bangladesh hosts the third largest Muslim population in the world whose current level of inclusion is 40%. Since the establishment of the Islamic bank in 1983, there are now 57 banks, 8 fully fledged Islamic banks and 15 offering Islamic banking services through branches/windows. The collective market share of Islamic banks in the country is around 25% which is making a remarkable contribution to the GDP and sustainable development of the country. If Bangladesh is to become a middle-income country by 2021, it needs to exploit fully this un-tapped market and enhance financial inclusion. This chapter reviews the Bangladesh financial sector placing special emphasis on the contribution to financial inclusion.

M. Mizanur Rahman

Numerical Comparison of Tube Bank Pressure Drop of an SHTX Using Elliptical and Flat Face Header with Different Nozzle Positions

Among distinguishing types of a heat exchanger, this report analyzes the pressure drop in the tube bank in a shell and tube heat exchanger. Pressure drop is one of the most important parameters that describe the efficiency of a shell and tube heat exchanger and its acceptance in any engineering application. Studies show that if the pressure drop across the tube side is more, the heat transfer rate decreases; hence, it affects the performance of the heat exchanger, and a greater pumping power is required, thereby increasing the cost. This paper numerically compares pressure drop in the tube bank in single-pass shell and tube heat exchanger using: (1) Elliptical face header (2) flat face header at different nozzle position, i.e., conventional nozzle position and inline nozzle position. The numerical comparison is done with the help of ANSYS 14.5, considering the flow to be steady and isothermal.

Kartik Ajugia, Mihir Sanghvi

Chapter 1. Overview of the Mekong River Basin

The Lancang-Mekong River, the largest transboundary river in Southeast Asia, flows through six riparian countries, nurtures splendid culture along it. The river is called Lancang River in China, and Mekong River out of China. The Mekong River region is featured by various landscape patterns and high variability of rainfall caused by monsoon cycles. This region is also featured by high density of population, high potential of development and high international attention, which make this study more meaningful. The physical geographical feature of this region is illustrated from the aspects of topography, meteorology and hydrology in this chapter. The Socio-economy characteristics of this region is also reviewed in this chapter to provide background knowledge for the further analysis of flood and drought management. The irrigation projects and hydropower projects, main types of structural measures, are also briefly introduced from the whole basin view.

Baiyinbaoligao, Hui Liu, Xingru Chen, Xiangpeng Mu

24. DBS Transformation (C): The World’s Best Digital Bank

Since CEO Piyush Gupta and his colleagues reset DBS’s vision and strategy and commenced its transformation in 2009, DBS doubled both its top and bottom lines (see ◘ Table 24.1—Company Financials). The accolades and awards it received in 2016 suggested it had successfully transformed to become a world-class multi-national bank and was well on its way to becoming a 22,000 start-up (see full list of accolades and awards ► ). This included being recognized by Euromoney as the World’s Best Digital Bank:

Tawfik Jelassi, Francisco J. Martínez-López

21. DBS Transformation (a): Becoming a World-Class Multinational Bank

1 August 2013. Piyush Gupta, CEO of DBS, had just announced that the bank was walking away from its bid to acquire Indonesia’s Bank Danamon. This was a major setback to the bank’s plans to expand its presence in Asia’s growth markets.

Tawfik Jelassi, Francisco J. Martínez-López

Toward Self-stabilizing Blockchain, Reconstructing Totally Erased Blockchain (Preliminary Version)

Blockchains, that are essentially distributed public ledgers, are extremely popular nowadays and are being used for many applications. One of the more common uses is for crypto-currencies, where they serve as a structure to store all the transactions publicly, securely, and hopefully irreversibly. Blockchains can be permissionless, where everyone can join and potentially contribute the blockchain, and permissioned, where only a few members (usually, much less than a permissionless blockchain) can push new transactions to the chain. While both approaches have their advantages and disadvantages, we will focus on a weakness of permissioned blockchains. The known boundary on the number of faulty participants − up to f for $$3f+1$$ participants − may be surpassed, causing the BFT algorithm to fail. A situation where a malicious adversary compromises/corrupts enough nodes to harm the blockchain may lead to the complete corruption of the ledger and even to the destruction of ledger copies the nodes hold. We will suggest a solution for the reconstruction of the blockchain in the event of such an attack. Our solution will include a mandatory publication of additional information by the private users when submitting transactions and will require them to store their transaction history. We will present a technique, using verifiable secret sharing (VSS), that will make our solution trust-less, immediate and per-user independent. Our technique will prevent the private user from lying, by making such an act enable the possible exposure of the user’s secret key.

Shlomi Dolev, Matan Liber

Chapter 26. Economic Reforms in Africa: A Critical Appraisal

Despite the huge resources that are available in Africa, the nation-states have been unable to harness them toward the development of African states and societies. Abundance of oil resources, for instance, have been adjudged a curse. One of the reasons for this contradiction is the imposition of a liberal economic blueprint by global capitalist powers. Upon the attainment of political independence from Western colonial powers, Africa continues to groan under the weight of globalization. Globalization generates a free market economy, which has become the guise for the spread of Anglo-American capitalism throughout the world. Despite the promise of democratization and economic buoyancy, upon the implementation of economic reforms in Africa, socio-economic and political turmoil prevail.

Adeoye O. Akinola

14. Glossary

This chapter contains materials needed to understand other chapters if the reader is not familiar with the theory of economics, or is interested in going deeper into the mathematics behind some subjects. This chapter is not intended for reading as single integral text, but its parts are given as the references in the other chapters.

Damir Odak

11. Banking Regulation in the EU

The EU banking regulation is, as the EU itself, a unique structure in the world. Two unique features of EU banking regulation are single jurisdiction with several legal frameworks and several jurisdictions sharing the same legal framework. The pile of regulation applying to banks is enormous. Such nature of the regulation emerges from the nature of the EU. It is maybe unavoidable but is it useful to apply such a complex regulation on the institutions having literary all the money in the world to pay lawyers? There are promising recent changes, but as politics initially got cold feet the term gradually in their implementation now really means it. Our children will see their full impact.

Damir Odak

5. The Asymmetry

The growth of the financial system modestly influences the growth of the economy, while sharply increases the instability of the system. We do not live much better if the water supply pumps more water, but a failed water supply ruins our lives. During the Glass-Steagall period, structural separation keeps the asymmetry at bay. Innovative investment banking makes waves in capital markets freely, while protected by a legal wall, the dull commercial banking is what it is supposed to be, dull. The financial industry’s most devastating social impact emerges from the impact financial crises have on political stability. The failure of a large bank creates such a disruption that regulators reached a consensus that such banks should not “fail disorderly”.

Damir Odak

8. What Supervisors Should Not Do?

Supervisors should not receive other tasks besides improving the resilience of the banking system. There are at least three reasons why it is not a good idea: distracting focus, public pressure on supervisor not related to supervision and the conflict of interest. A broader scope of supervisory responsibility potentially infringes the equality of banks before the law. Their rights can be significantly diminished compared with other persons, natural and legal. Should supervision consider the effects its measures have on the banks’ clients and should it use available tools and authority to achieve other political objectives besides the resilience of the banking system?

Damir Odak

2. How that All Come to Be?

Finance is, always was and always will be a source of instability. By putting volatility into motion and controlling it, finance provides tremendous service. Bankers create money out of thin air—how could that be stable? The fruits of this instability facilitate trade, production and employment for improving people’s lives. The emergence of finance in the late thirteenth century facilitates the development of long-distance trade, ending medieval autarchy. The finance converts debt into money, removing limitations for business emerging from a limited amount of specie. Its attraction to law and order turned the rule of law into a competitive advantage. The price for all the benefits we have from finance is instability. Banking supervision has a task to keep it on the check.

Damir Odak

7. What Should Supervision Do?

The supervision decides how much capital each bank needs. If new capital does not bring pro-rata new income, the return on the existing shares will decrease. Their value will fall. That is the reason why an increase in the capital never happens without compulsive regulation. A short trip through the accounting mirror presents a wonderland where the meaning of the word real is unreal, supervisors are white knights, and mighty accounting magic keeps zombie banks wandering around alive. The answer to the question: “What should supervision do?” is “Whatever it takes to make sure that the bank has required capital (and some more on top of it) and enough liquidity to timely meet all its obligations.”

Damir Odak

10. Bank Failure and Resolution

The perfect banking system would be too expensive. Therefore, the failure of banks is imminent, and we should be ready for it. Failing of individual weak banks is acceptable. However, only if the failure is correctly managed. The failed bank goes through resolution. It is a deliberately vague word with a lot of meanings. EU resolution framework assumes “open bank” resolution for strategic banks. It means that the bank would fail and resolve without any discontinuity in operations. Only shareholders and junior creditors of the bank are involved in the resolution. However, a lot of work needs to be done to achieve all preconditions for such a resolution. Most importantly, it would require improvement of the banks’ reputation.

Damir Odak

A Study on Automated Receptionists in a Real-World Scenario

The commercial availability of robots and voice-operated smart devices such as Alexa or Google Home have some companies wondering whether they can replace some current human interactions by using these devices. One such area of interaction is at the reception desk. While both platforms can offer the necessary interaction features to take on the task of an automated receptionist, the question remains as to which platform actual visitors would prefer - body or no body? To this end we created a receptionist agent that can receive visitors with an appointment, presented as either an embodied robot or a disembodied smart display. The agent uses common commercial products and services, and was tested in a real-world environment with real visitors.The results show no significant difference in visitor preference for either platform.

Ralf Wolter, Koen V. Hindriks, Dalya Samur, Catholijn M. Jonker

Chapter 17. A New Era in the Risk Management of Financial Firms

This contribution analyzes how new technology has changed the risk management landscape for financial companies. Accelerating technological innovations in the finance industry have disrupted the old order and created new challenges and opportunities along with new front-runners and followers. New payment systems, digital currencies, and digital investments are just some examples of these innovations. Formerly self-sufficient financial companies had to collaborate with FinTech companies in order to protect market shares. Technological innovations and collaborations among companies in the finance sector do not create new risks; rather, they increase the affectedness to some risks types and extend the definition of traditional risks, such as operational, reputational, and legal risks. E-financing activities, outsourcing in financial companies, and cyber threats are the major new risk sources that financial companies must embed to traditional risks. Risk management principles in the digitalization era guide the risk manager to tailor specific practices for each finance company.

Sureyya Burcu Avci

Energy System Analysis, Simulation and Modelling Practices in Turkey

Humankind first began to use simple machines instead of arm force. Subsequently, more advanced and sophisticated energy technologies introduced to our lives since the industrial revolution. Relatively advanced machines have begun to replace the simple mechanical systems in order to meet the various needs of humanity. Continuous improvements in related technologies have triggered the emergence of more compact, modular and more efficient vehicles over time. The rapid advances in technology naturally manifested itself also in energy technologies. Drivers in a national economy, particularly environmental problems caused by energy production and consumption, have been an area of interest in recent years. Energy technologies include increasing productivity, producing relatively more energy, or working towards an upward trend. In this perspective, this chapter aims to give an overview of the recent analysis of an energy system and modelling studies conducted by the energy joint workgroup at Marmara University and Naval Academy of National Defence University, Istanbul, Turkey.

Egemen Sulukan, Tanay Sıdkı Uyar, Doğancan Beşikci, Doğuş Özkan, Alperen Sarı

Banks, Firms and Economic Culture: Economists and Research Centres in Interwar Italy

This chapter offers a historical reconstruction of the most important research institutes established in Italy by banks and firms during the interwar years. The Italian experience can be read and placed in a much wider international trend that emerged during the Great War. Though initially confined within the banking sector, research departments gradually spread out to the major industrial corporations, especially those included in the new public conglomerates. After exploring the extensive web of relationships between the academia and the productive world, the chapter focuses on a set of relevant case studies: four selected within the banking sector (Banca Commerciale Italiana, Banca d’Italia, Associazione Bancaria Italiana and Banco di Sicilia); and six within the industrial sector (IRI, Finsider, Ansaldo, Edison, Montecatini and Fiat). The intent of this study is to understand what role economists played in the establishment and growth of these research institutes, what functions they performed and what impact they had, especially concerning economic culture, technical innovations and institutional reforms.

Pier Francesco Asso, Fabio Lavista, Sebastiano Nerozzi

2. Vom Silodenken zum vernetzten Arbeiten: Wie Sie Silos in Ihrem Unternehmen erkennen und erfolgreich gegensteuern

Um zu erkennen, in welcher vernetzten und kulturellen Verfassung sich Ihre Organisation befindet, ist eine Status-quo-Bewertung ratsam. In den letzten Jahren fünf Jahren hat sich deutlich gezeigt, dass eine Spreizung stattfand: Unternehmen, die sich organisational deutlich weiterentwickelten und Banken oder auch Finanzdienstleister, die an alten Strukturen festhielten und Veränderungen zu langsam oder gar nicht umsetzten.In Zeiten von PSD2, erodierender Profitabilität und zunehmendem Kostendruck müssen sich Banken und Sparkassen neu orientieren. Dabei stellt sich die Frage, wie sich in Zeiten von verändertem Kundenverhalten und neuen Technologien die Wertschöpfung 4.0 realisieren lässt. Neben strategischen Aspekten sind die kulturellen Rahmenbedingungen einer Organisation entscheidend: Profitiert das Kreditinstitut von vernetzten Strukturen, um den Wandel aktiv und dynamisch voranzutreiben und um zukunftsorientierte Wertschöpfungsstrategien umzusetzen?In diesem Kontext hat der Leser die Chance, anhand einer detaillierten Silo-Analyse den bankindividuellen Status zu bewerten. Anschließend folgen konkrete Handlungsvorschläge, die sich sowohl auf Organisations- als auch auf Führungs- und Teamebene erstrecken.

Corinna Pommerening

Secure Multi-party Computation for Inter-organizational Process Mining

Process mining is a family of techniques for analyzing business processes based on event logs extracted from information systems. Mainstream process mining tools are designed for intra-organizational settings, insofar as they assume that an event log is available for processing as a whole. The use of such tools for inter-organizational process analysis is hampered by the fact that such processes involve independent parties who are unwilling to, or sometimes legally prevented from, sharing detailed event logs with each other. In this setting, this paper proposes an approach for constructing and querying a common artifact used for process mining, namely the frequency and time-annotated Directly-Follows Graph (DFG), over multiple event logs belonging to different parties, in such a way that the parties do not share the event logs with each other. The proposal leverages an existing platform for secure multi-party computation, namely Sharemind. Since a direct implementation of DFG construction in Sharemind suffers from scalability issues, we propose to rely on vectorization of event logs and to employ a divide-and-conquer scheme for parallel processing of sub-logs. The paper reports on experiments that evaluate the scalability of the approach on real-life logs.

Gamal Elkoumy, Stephan A. Fahrenkrog-Petersen, Marlon Dumas, Peeter Laud, Alisa Pankova, Matthias Weidlich

Chapter 3. The Italian Case: Between Decentralization and the Legacies of the Past

Chapter 3 “The Italian Case: Between Decentralization and the Legacies of the Past” is about Cohesion Policy implementation in Italy from 1989 to the present day. It explores the way in which the European policy was molded according to the domestic preferences and the legacies historically rooted in the issue of regional development, by analyzing how the three investigated challenges (institutional, strategic, and administrative) had been addressed during the different programming cycles, as well as the possible benefits and/or criticalities that they had implicated.

Mattia Casula

Impact of Power Factor Correction Methods on Power Distribution Network—A Case Study

To ensure proper conservation of electrical energy and the working of the instruments at maximum efficiency, it is essential to have a near-perfect power factor of one. Power factor correction (PFC) is normally done by supplying external reactive power to the system using capacitor banks of fixed ratings. The power distribution within the state of Sikkim has undergone a number of changes over the years in its infrastructure to ensure a higher working efficiency and reduce energy wastage; PFC methods are being one of them. An 11 kV/433 V substation within the SMIT campus was selected to perform the presented study, considering data of power factor, and active and reactive power both before and after PFC. The results obtained were used to give an estimation of the net kVA savings of the state of Sikkim, proving that PFC significantly aids in the reduction of production cost of electricity and increases efficiency of the system.

Sudeep Pradhan, Dipanjan Ghose, Amit Kumar Singh

The Spiritual Marketplace in Contemporary Ghana

This chapter introduces and examines the role of spiritual consultants—religious agents who operate in the market as experts of spiritual matters and offer their services to consumers for a fee—in the marketization of religion in Ghana. Spiritual consultants in Ghana and many other African countries include church pastors, traditional priests and Islamic spiritualists (mallams), among others. We pursue answers to the question: what specific services and value do spiritual consultants offer to their consumers in order to authenticate their role as agents of the gods and spirits? Our data, including news media coverage and roadside (outdoor) advertising by these agents, allows for historical anchoring to suggest that unlike the Western religious institution whose adoption of market logics defines its success, spiritual consultants in Ghana succeed because they engage local historical motifs and cultural heritage to their advantage. We seek to extend Robin Horton’s thesis on the shared teleological function between traditional African religion and modern science—to explain, predict and control—to situate these functions as value outcomes in the commercial practice of spiritual consultancy in Ghana. In so doing, we note how the historicized marketization of religion has supported and been supported by the practices of contemporary spiritual consultants and the market in which they operate.

Samuelson Appau, Samuel K. Bonsu

Chapter 12. From Ricardo to Sraffa: Gold as Monetary Standard in a Classical Theory of Money

This chapter inquires into what could or should be a Classical theory of money and prices sixty years after Sraffa’s Production of Commodities by Means of Commodities’ publication. It takes as granted three basic propositions: (i) Sraffa’s system of prices is relevant for determining Classical natural prices; (ii) a monetary standard (gold) is central to a Classical theory of money; (iii) Cantillon-Smith rule is pivotal to Classical market prices determination. The authors contend that: (i) the coexistence of a natural price and a legal price of gold is a necessary condition for a Classical theory of money; (ii) the market price of gold cannot be different from its legal price (no arbitrage); and (iii) the regulation of the quantity of money remains an open question.

Carlo Benetti, Jean Cartelier

Chapter 6. Analysis

This chapter presents the findings of the qualitative text analysis. This analysis follows the methodology introduced in Chapter 4, which itself aligns with the general and the specified research questions set out in Chapter 3. The first part of this chapter, the evaluative qualitative text analysis, starts with a category-based analysis of the findings from the entrepreneurs, which adheres to the category system, being divided up by the different dimensions of empowerment (6.1).

Tobias Aberle

Chapter 5. Preparing for the Case Studies Implementation

This chapter is all about preparing for the case studies implementation. You will first learn how to set up your Raspberry Pi 3 Model B+ with its hardware and software from scratch. Of course, you will be installing the popular Raspbian OS for this. After this, you will set up the Arduino Mega 2560 to your Raspberry Pi along with the IoT sensor modules to get data from. This will be followed by setting up the Python required for running a program on the Raspberry Pi. You will also be setting up the energy meter device with the Modbus enabled on it. After this, you will connect the Raspberry Pi with the Arduino and start communication between them. Lastly, you will test everything.

Puneet Mathur

Automatic RDF, Metadata Generation from Legacy Software Models

The resource description framework is a method which help us to interchange and reuse of metadata. Early metadata gives a simple method for performing and reporting Data checks. Checks are indicated in an intuitive way to find at which extend we find the relevant data. Moreover, to create vocabularies to handle metadata of larger data sets and to capture the correct relation between the objects we needed some framework that results us reliable. Resource description framework is XML application which follow organize rules to give clear method of explaining semantics. RDF is a data model. It is simple model which have different statement about resources. Resource can be any object. RDF gave metadata of web data and gave structural information. UML data can also be explained in form of RDF that is quite a fruitful in field of RDF. Transformation from UML to RDF, XML help eminently. Metadata of class diagram acquire through XML then Parsing of XML pledge metadata and retinue the RDF rules to change metadata into RDF Triples. Triple include subject, predicate and object. Which transmits a sense of a sentence. Further we store triples in RDF system. This technique helps to keep data useful for many generations.

Amna Riaz, Imran Sarwar Bajwa, Munsub Ali

Mining for Prospects

It’s no secret that focusing on customer needs is the key to success in building any business. As entrepreneurship has become an increasingly important part of the U.S. educational curriculum, this aspect has become a mainstay of the courses students take, and the federal government even awards grants for business students/budding entrepreneurs to go out and talk to customers. Sometimes the advice goes a bit overboard. “Make one hundred phone calls to prospective customers and find that crucial need and then fill it!”

Jesko von Windheim

Chapter 11. E-Marketing

Digitized marketing affords an opportunity both for personalization of products and also bringing in financial management skills to bear on such decision making by individuals. A stitch in time (i.e. an advisory from the bank or FI) would save a customer from rash and wanton expenditure. The banker’s warning is likely to be heeded.At the same time, the banker could advice you about ways to prepare for emerging future needs.In this endeavor, technology will play a very important role. Data analysis, mobile applications, email messages, and video presentations could assist a customer in refining his financial management skills. Technology will play a significant role in the future marketing efforts. Customers should realize that they have to be active participants in the process, men and machines have to act in-sync.

Vasant Chintaman Joshi

Chapter 8. Building ACLEDA Bank Lao Ltd.

The chapter starts with a brief profile of the Lao PDR growth sectors of the economy, the overall business environment, including practices that hold back or advance progress, and the recent "Techno boom" in Southeast Asia. The banking sector is reviewed, focusing on the regulatory enivironemnt and retail banking in the formal and informal financial sectors, and rates of financial inclusion. The story of the development of ACLEDA Bank Lao, Ltd over the past 11 years is the focus of the chapter. Lessons are related about the growing pains of a start-up company, regulatory challenges, unfamiliar practices and new products on the market.

Heather A. Clark

Chapter 3. Fintech and Market-Based Financing

This chapter considers the impact of fintech on the key economic drivers of market-based financing, taking into account the opportunity that new business models offer in the shadow banking system. It has also been shown that the efficiencies from the application of technology-enabled innovation and the proliferation of innovative market participants can contribute positively to the functioning of shadow banking. Thus, this chapter highlights the need for new forms of public supervision over fintech mechanisms in order to avoid asymmetries, reduce risks, promote financial stability and then prevent opportunistic behaviour hidden behind business analytics and software, taking into account the role of information and transparency in a market driven by automatic tools and self-executing processes.

Valerio Lemma

Chapter 7. Fintech and Money

This chapter shows the impact of the evolution of financial technology on the market for money, in order to understand the effect of fintech on monetary policymaking; it considers the development of private tech-fuelled instruments as an alternative to sovereign money (i.e. non-sovereign cryptocurrencies) and specific regulatory analysis of the current tolerance of non-sovereign cryptocurrencies by national governments and central banks. It moves from the hypothesis that the protection of savings invested in such cryptocurrencies refers to individual rights; therefore, the analysis investigates the convenience to set specific safeguards to guarantee the capacity of these instruments to preserve their value, along with further backstops for avoiding theft, plagiarism and fraud.

Valerio Lemma

Chapter 6. Fintech Firms

This chapter takes into account both the fintechers that supply business analytics and high-tech services to supervised entities and the ones that unbundle banking and finance to supply alternative solutions for savers, lenders, borrowers or investors (such as the management of web-based platforms supporting individuals in trading credits or sharing financial opportunities). It highlights the fact that the policymaker has to contemplate the regulation of both. By providing a review of the risks arising from the business of fintech banks and a background for understanding the option for strengthening oversight and control over fintechers, programmers and coders considered as relevant ancillary service undertakers, this chapter concludes that supervisory authorities will require authorization from high-tech service providers for dealing with supervised entities.

Valerio Lemma

Chapter 5. Converting to the AVR Language

This chapter briefly explains how you can begin to wean yourself off of the helpful features of the Arduino Language and write code that is in the AVR’s own variant of C/C++ which can greatly reduce the size of your compiled code and could make the difference in fitting your project into an ATtiny85, for example, rather than needing a full-blown ATmega328P.

Norman Dunbar

Chapter 13. Goethe’s Price Games, Auctions, and Other Surprises

This chapter is dedicated to Goethe’s price gameGoethe’s price games which can be interpreted as a second-price sealed-bid auctionAuctionsecond-price -. Nobel Laureate William VickreyVickrey, William has shown for this type of auction that bidding one’s willingness-to-pay price is an optimal strategyStrategyoptima -. We do not know whether Goethe had a similar result in mind. In fact, his sealed-bid price functioned like a take-it-or-leave-it option. Given the historical circumstances, it implied price-fixing, thereby avoiding explicit bargaining. A discussion of the Revenue Equivalence TheoremRevenue Equivalence Theorem adds some theory to Goethe’s auction setting. The theorem says that, in principle, first-price sealed-bid auctionsAuctionfirst-price -, Dutch auctionsAuctionDutch -, second-price sealed-bid auctionsAuctionsecond-price -, and English auctionsAuctionEnglish - pick the same winners and have identical prices. There are other types of auctions as well, and some have rather peculiar effects. All-pay auctionsAuctionall-pay - are recommended for exploiting bidders—as in collecting money for a charity. If you want to win, do not participate. English auctionsAuctionEnglish - can have peculiar results, too. You might be interested in paying a high auction price for Gauguin’s “Mata Mua” if you already have a number of Gauguin paintings in your collection. On May 9, 1989, the “Mata Mua” was auctioned by Sotheby at 24.2 million dollars, then being the highest price ever bid for a Gauguin painting. You might also be willing and able to pay a high auction price if you represent a consortium of the Federal Republic of Germany, the States of Lower Saxony and Bavaria, the Prussian Cultural Heritage Foundation, and private donators. On December 6, 1983, the gospel book of Henry the Lion (1129–1195) was auctioned and sold for a price of £8,140,000, then equaling 32.5 million German marks. There was a single bidder present in the auction hall, i.e., the representative of the consortium, and a second person calling bids from outside—possibly the seller.

Manfred J. Holler, Barbara Klose-Ullmann

Chapter 1. Playing for Susan

Thinking strategically is the focus of this chapter. The chapter includes references to Cesare Borgia, MachiavelliMachiavelli, Niccolò, Adam SmithSmith, Adam, NapoleonNapoleon, and Torstein Veblen. A Prisoners’ DilemmaPrisoners’ Dilemma situation and a Chicken GameChicken Game are discussed to illustrate the essence of a game—with respect to understanding the functioning of markets. The example of Microsoft’s Internet Explorer challenging Netscape’s Navigator, by now historical, serves to demonstrate that in a strategic decision situation an agent cannot choose an outcome, independent of what the other agents do—in fact, a player chooses a strategy and not an outcome. Managers have to know game theory if they want to apply it to outsmart the competitor in strategic decision situations. An excursion into the world of neuroscience and mirror neurons concludes the chapter. Mirror neurons are of interest to strategic thinking as they serve as a mechanism of imitation in our brain and as a source of empathyEmpathy.

Manfred J. Holler, Barbara Klose-Ullmann

Chapter 14. Connecting the Dots: Implications of the Intertwined Global Challenges to Maritime Security

Scholars have long discussed the land-sea nexus in the context of maritime security, and indeed in the exploration of the issues and challenges contemplated throughout these pages, we note that in the same way that the sea and land are connected beyond the shoreline where they meet, there are likewise many intersections between the global challenges to maritime security. In this chapter five connecting themes are identified, which draw together the threads weaving through the chapters of this book, specifically: the transnational nature of maritime threats, the role played by territoriality, the blue security nexus, the contribution of non-state actors to the maritime domain, and, lastly, the impact of technological developments. Further to connecting these dots, we synthesise a number of policy recommendations that emanate from within the chapters of this volume. These centre on cooperation (particularly in capacity building and information-sharing), appreciating the role of geopolitics and actively acknowledging this through the necessary legal instruments, an integrated approach toward sea-based economic activity, the need for platforms where private and public stakeholders can come together to coalesce around solutions to key problems, and preparing for and leaning on the challenges and opportunities presented by technological advances. Distilled further from this is the importance of maritime domain awareness, as policy interventions at the state-, regional-, and international levels all require an accurate picture of what is happening in the maritime domain. Lastly, we look to the areas in which new research must focus, in order to further develop our understanding of the intertwining of these various issues, but also to provide actionable inputs into policy processes.

Anja Menzel, Lisa Otto

Chapter 7. Measurement of Banks’ Performance by Using Super-Efficiency DEA Model

Banks play a crucial role in channelization of untapped saving into productive uses. This chapter makes an attempt to judge the performance of the banking sector in India since the 1990s, by using data envelopment analysis (DEA)-based super-efficiency model during the period 1992–2012. We find that the performance of the public sector banks improved during the 2002–2012 period in comparison with 1992–2001 Also, the public sector banks witnessed comparatively lesser degree of variation in the efficiency score in comparison with the new private section and the foreign banks. We also find that non-traditional activities play a key role in determining the level of efficiency of the banks in the post-reforms period. Size (in terms of total assets, not in terms of the number of bank branches) and dominance in the deposit market can provide the banks the necessary leeway to embrace technology-embedded products and services. Finally, the study also pinpoints the adverse effect of asset quality with the level of efficiency in the banking sector.

Atanu Sengupta, Sanjoy De

Chapter 4. China’s Participation in International Institutions

Since modern times, China has been endeavoring to achieve two unfinished transformations: from “China seeing the world” to “China seen by the world”; from a “looker-on” of the international system to its “participant”. With the width and depth of participation in international institutions as its standard, the process is related not only to the future of China but also that of the world.

Honghua Men

The New Chinese International Commercial Court and the Future of Dispute Resolution in the Belt and Road Initiative

The Chinese Government established the new Chinese International Commercial Court (CICC) in July 2018 as an integral part of the Belt and Road Initiative (BRI). This Chapter seeks to analyse the key features of the CICC in the context of the BRI and the modern trend of establishing new ‘International’ Commercial Courts. The Chapter will also examine how the unique approach of the CICC has potential to act as a catalyst for law reform in China.

David Holloway

Legal and Regulatory Framework for the Agriculture Sector in Uganda

The Agricultural sector is dominant in Uganda’s economy. There are pertinent issues in the sector that need to be regulated for the sector to be effectively managed. The regulation in the agriculture sector starts with land management and then deals with the unique legal issues associated with the sector. These include regulation of land for agriculture purposes, soil governance, livestock management, crop production and management, regulation of water for agriculture, pesticides control, fertiliser management, regulation of investment in the agriculture sector and taxation. Without the legal and institutional arrangements that regulate the agriculture sector, it is difficult to promote incentives in the sector. The main purpose of this chapter is to review the legal and regulatory framework for the agricultural sector in Uganda. It reviews policies, the laws and regulations that relate to legal issues in the sector.

Emmanuel Kasimbazi

Corporate Social Responsibility: An Analysis of Romanian Banks

The purpose of the study is to analyze the corporate social responsibility (CSR) activities carried out by some of the Romanian banks. The study is based on the secondary data taken from the annual reports of the banks. The analysis includes the following variables: education, culture, environment and social. The results show that though the Romanian banks are making efforts in the CSR areas but still there is a requirement of more emphasis on CSR. The private sector banks have overall highest contribution in CSR activities. Public sector banks and foreign banks are still lagging in this area. The study has a scope of further research where the CSR performance of banks can be related to financial performance of the banks.

Roxana Maria Bădîrcea, Alina Georgiana Manta, Ramona Pîrvu, Nicoleta Mihaela Florea

Chapter 6. Real-World Knowledge Representation and Reasoning

Apart from its theoretical significance, the AI must represent real-world knowledge, and produce reasoning using that. The real-world things are collections of entities in different classes. This chapter presents the representations structures for such knowledge, e.g., taxonomies and reasoning based on that. Other phenomena in real-world, that are presented are, action and change, commonsense reasoning, ontology structures for different domains, like, language, and world. The Sowa’s ontology for objects, and processes, both concrete and abstract, is explained. The situation calculus is presented in its formal details, along with worked exercises. The more prevalent real-world reasoning, like nonmonotonic and default reasoning are also treated in sufficient details, along Knowledge representationwith supporting worked exercises. This is followed, with summary of the chapter, and exhaustive list of practice exercises.

K. R. Chowdhary

Chapter 1. Introduction

This chapter introduces the topic and scope of this book. MFN clauses frequently appear in IIAs providing an obligation on the host-states to accord the beneficiary states, their nationals and entities, treatment no less favourable than that is accorded to any third state. There are divergent opinions about the scope of MFN clauses in IIAs and about the approaches for determining such scope. IIA MFN clauses are treaty-based obligations as opposed to the principles of customary international law. As a treaty-based obligation, the scope of MFN in IIAs will always depend on how the clauses are drafted and how the adjudicatory forums interpret them. Moreover, drafting of MFN clauses varies from IIA to IIA, and presently, there are more than 3000 IIAs in force. Consequently, the question arises, whether it is feasible to examine the scope of MFN clauses in IIAs. Although the scope of MFN clauses in IIAs is a matter of interpretation, it is possible to clarify their scope to a significant extent by an evaluation of existing jurisprudence on their application. Accordingly, the central thrust of this book is to draw out the proper scope of MFN clauses in IIAs by evaluating the existing jurisprudence, by an analysis of the cases and scholarly literature, together with the text of IIAs. This book also examines issues related to the interpretation of IIAs. To do so, it investigates three sub-issues: firstly, whether there exists a set of uniform principles and rules for interpreting MFN clauses; secondly, whether arbitral tribunals have consistently applied the interpretative principles; and thirdly, whether tribunals should take into account the implications of applying MFN clauses extensively. Besides the general contribution of this book mentioned above, the introductory chapter also demonstrates, why it is important to examine the developing states’ experience in investor-state arbitration regarding the application of MFN.

Tanjina Sharmin

Chapter 5. Capital Interest, the Financial Sector and Debt Expansion: Toward a More Sustainable and Equitable World Order

This chapter presents issues concerned with capital interest, the financial sector and debt expansion. The origin of capital interest is examined. There are three additional factors of interest in the case of capital interest, i.e. biophysical, monetary and anticipatory factors, factors which cannot be attributed to the case of the origin of money interest. Examination of five theories of capital interest is made before an alternative new theory of capital interest is proposed. This chapter then introduces F. Knight’s analysis of uncertainty. Four forms of uncertainty, i.e. perception, modelling future, effect and implementation, are discussed in relation to the forward-looking nature of humans—a nature that proves to be a, if not the, key element of investment activity. The steady growth in the financial and insurance sector is one of the conspicuous trends in developed society, in particular observable after World War II. A close examination of the balance-sheet of three representative producers, Sony, Toyota and Honda, shows that a considerable part of operating income for those three producers derives from their respective financial business divisions. The balance sheet status of each representative producer is discussed in relation to the quantitative easing policy of the Bank of Japan. In addition, this chapter also discusses the role of the World Bank and the International Monetary Fund—two powerful and influential organizations capable of creating a broad world economic policy consensus by way of their system of weighted votes and majority rules. In the context of that discussion, this chapter examines serious debt trap in terms of external debt to national income ratios for three groups of countries. An emerging paradoxical yet inevitable consequence is that the richer a country is, the more that country can borrow and the larger external debt that country can maintain. Ever more debt to the world community results. Identifying who has the right to issue money and money substitutes is the key to understanding this paradox. This chapter discusses the meaning of the Macleod-Soddy-Allais (MSA) relation and follows that discussion with some concluding remarks. The MSA relation represents the theoretical basis for explaining financial instability and the fact that the whole economic system undergoes sporadic yet endlessly repeating financial explosions and ultimate collapses.

Kozo Torasan Mayumi

6. Mud Volcanoes of the Black Sea Region

This chapter covers the entire catalogue of mud volcanoes known so far in the Black Sea region, in particular the Kerch and Taman peninsulas, the northwestern Caucasus, the Black Sea itself, and the southeastern part of the Sea of Azov.

Evgeny Shnyukov, Valentina Yanko-Hombach

Chapter 10. Sustainability

Sustainability has become a common term and concept in our society because of the effects of climate change that are being experienced on a wider scale. To understand this concept, this chapter explores the three major pillars of sustainability, primary goals of environmental sustainability, social development, economic development, and environmental protection as well as their applications and major steps required for maintaining a sustainable economy. The Sustainable Development Goals (SDGs) are used as one of the case studies for understanding the three pillars and the concept of sustainability. The other case studies used are the Green School in Bali, spiritual ecology, and Grameen Bank while Mohammed Yunus is explored as one of the major contributors to social and economic development. This is one of the most important chapters of the book since it explores a concept that is central to the going green movement. Because of this significance, future trends are examined to paint an image of the outlooks of sustainability.

Adenike A. Akinsemolu

Chapter 6. Tiger Parenting

At High Street shop, sacrifices were made to send the children to be educated. It was an expression of the parental love and the principle: the children’s achievement is also the parents’ achievement.The author’s parents had sent their children to study in the Chinese medium school. The aim was to socializing them in Chinese cultural values and to acquire a level of literary skill. But the children were given to gauging what they wanted against what their parents had wished. Tiger parenting offers a window to the moral payoff, the contradictions, of Chinese petite capitalism. The ethnography follows the development of a young mind shaped by sources ranging from the ancient classics and modern texts, to Hollywood cinema and the British Council Library.

Souchou Yao

Chapter 7. A Lesson on Borrowing

Borrowing shows the tension in the way petite capitalism operates. Failure to borrow affects the shop’s liquidity, borrow too much puts the shopkeeper in a level of debt hard to service. In Chinese petite capitalism, lending and borrowing affect one’s moral character—not only one’s financial position.At the High Street shop, the owner faced the added pressure of ‘making money with other people’s money’. The principle was to invest a loan in a business venture whose return would cover the profit and the cost of borrowing. To meet the liquidity needs, the shopkeeper created a deposit-taking scheme. It demanded the jugging of account balances when depositors made unexpected withdrawals. The result was to turn the system into a Ponzi-like scheme—with disastrous consequences.

Souchou Yao

Measuring Domain Portability and Error Propagation in Biomedical QA

In this work we present Google’s submission to the BioASQ 7 biomedical question answering (QA) task (specifically Task 7b, Phase B). The core of our systems are based on BERT QA models, specifically the model of [1]. In this report, and via our submissions, we aimed to investigate two research questions. We start by studying how domain portable are QA systems that have been pre-trained and fine-tuned on general texts, e.g., Wikipedia. We measure this via two submissions. The first is a non-adapted model that uses a public pre-trained BERT model and is fine-tuned on the Natural Questions data set [4]. The second system takes this non-adapted model and fine-tunes it with the BioASQ training data. Next, we study the impact of error propagation in end-to-end retrieval and QA systems. Again we test this via two submissions. The first uses human annotated relevant documents and snippets as input to the model and the second predicted documents and snippets. Our main findings are that domain specific fine-tuning can benefit Biomedical QA. However, the biggest quality bottleneck is at the retrieval stage, where we see large drops in metrics – over 10pts absolute – when using non gold inputs to the QA model.

Stefan Hosein, Daniel Andor, Ryan McDonald

In Capital We Trust: The Eurozone: A Congeries of Material Norms Without a Constitution?

This chapter reconstructs the content of the key norms and practices constituting and disciplining public power in the Eurozone. On the one hand, the fundamental substantive norms uphold the primacy of private property, entrepreneurial freedom and sound money. On the other hand, a series of procedural norms fragment, enervate and pulverise the power held by representative institutions and decision-making processes, and result in the selective empowerment of collectives of executives, central banks and key actors in the financial sector. The abstract and concrete weight assigned to economic freedoms, the multiplication of decision-making procedures alternative to representative decision-making, and the entrenchment of structural biases in favour of private property and entrepreneurial freedom have largely “taken the risk out of democracy” by fragmenting, enervating and pulverising public power.

Agustín José Menéndez

Chapter 11. The Betel Smiles

The chapter gives a vivid description of people’s resistance to POSCO, a steel conglomerate from South Korea, in Odisha. Right from the beginning, the villagers devised many forms of protest against land acquisition to protect their livelihood, which is dependent on betel leaf production, paddy cultivation and fishing. Much of the area is protected forest land. The resistance movement faced continuous police violence as it continued to negotiate with the government through dharnas, sit-ins, marches and sending appeals and memorandums. Innumerable police cases were foisted on local people as well as the imposition of a virtual siege that affected mobility of villagers for long periods. The use of bribes, lies and deception and hiring of goons by the police and administration to crush the resistance movement effectively created wide rifts among the people. The United Action Committee, a pro-POSCO lobby, was made to counter people’s resistance. Finally, POSCO quit Odisha in 2017.

Ranjana Padhi, Nigamananda Sadangi

Chapter 5. Evolution of Commercial and Financial Structures of Capitalism

Starting from the peculiarity of “merchants” and “commercial society,” this chapter discusses the development of commercial and financial relations as the superstructure of the capitalist market economy. In this domain, claims about the imaginary value dominate real economy. This development is grounded on the pursuit of efficient circulation on the one hand, though it produces a multilayered financial structure over the real economy on the other. The last section introduces the evolution of the financial structure of the Japanese economy in the years from its “bubble” period to the slump period. This case illustrates the difficulty of the established financial sector in the adaptation to structural change and the problem of its governance.

Kiichiro Yagi

Key Indicators of Regional Bank Activities: From Theory to Practice

This work is devoted to the creation and implementation of the bank management system based on key performance indicators (KPIs). It describes the principles that are recommended to be adhered to in order to avoid the most common mistakes and increase the effectiveness of KPIs. Taking into account the complexity of linking the qualitative indicators to the sum values, the author presents a clear example of the establishment of KPIs for the project IT unit. The author emphasizes the connection between the strategic goals of the credit organization and the system of balanced indicators, and describes the methods and methodology of the process of building the chain. In this work, the most frequently emerging questions are sorted out and recommendations using an example from own practice are given. The work is of practical value and is aimed at increasing the efficiency of the regional bank activities.

E. R. Tagirova

Financial Engineering Tools for Stress Testing in Banks

Under the conditions of economic instability, stress tests are being actively introduced to assess banking risks. Instability in local markets primarily creates problems for small- and medium-sized banks. It results in the outflow of funds from deposits and changes in the temporary structure of assets and liabilities. This work presents the main methodological approaches applied to stress testing of market risk and assessing the liquidity of banks. The authors also conclude that simple models based on the time value of money, in particular, the GAP, DGAP analysis models, could be successfully applied for identifying critical problems with liquidity, market risk, and taking urgent measures to eliminate them. As an information basis for calculations, the data of one of the regional banks are used. As a result of simulation of stress scenarios based on GAP and DGAP analysis, some risks of the bank were identified, and the likely response to this scenario was predicted. The analysis concluded that, despite the strong correlation between liquidity indicators and DGAP, they are not interchangeable. They complement each other and therefore, in the models of stress testing, one indicator cannot be replaced by another. Besides, a weak correlation between overdue loans and DGAP was revealed. Apparently, this can be explained by the fact that within a one-time interval these indicators are relatively independent. We believe that they should be analyzed in dynamics. The results of the study suggest that that the models despite their simplicity remain adequate and relevant. The undoubted advantage of such models is the ability to apply them independently or as a separate element within more complex, integrated stress testing models.

Vadim L. Babur, Adel A. Daryakin, Nailya F. Yalalova, Aliya A. Ahmadullina, F. A. Feras

National Report on Cyprus

This chapter examines groups of companies in Cyprus law. It derives from a country report submitted to the 2018 International Congress on Comparative Law. After an introduction, statutory provisions of company law on group of companies, holding and subsidiary companies are discussed. The issue of lifting the corporate veil in Cyprus company law is scrutinized. In this context, the doctrine of separate legal personality in Cyprus company law, as it was approached by the courts, is examined. Moreover, the case law on the possibility of lifting the corporate veil in group of companies and the case law on the possibility of lifting the corporate veil in parent and subsidiary companies are discussed. Reference is made to lifting the corporate veil in the context of tax law and public procurement, as well as to legislative provisions allowing lifting the corporate veil. With regard to capital markets law/securities regulation, groups of companies are examined in the light of takeover law and transparency law. The position and regulation of groups of companies in various other areas of law are explained: competition law, banking and financial law, insolvency law, private international law and environmental law. A few concluding remarks are inferred.

Thomas Papadopoulos

Chapter 5. The Development of Zinzendorf’s Thinking on State Credit

In early 1756, Zinzendorf returned from a diplomatic mission to Russia, Sweden and Denmark. At that time, Kaunitz was engaged in diplomatic efforts to build the monarchy’s strategic alliance with France and was aware that a new military conflict with Prussia was approaching. He asked Zinzendorf to devise a mechanism which would allow Austria to quickly raise additional funds. Zinzendorf wrote a proposal which was printed in 1757 as Pro Memoria an eine ständische Deputation einen Vorschlag zur Erleichterung des ständischen Credites betreffend. Even though only intended as a temporary measure to raise war finance, Zinzendorf presented a thorough and innovative financial system. His hope was that it would be recognised as a valuable mechanism with equal relevance for war and peacetime. The Pro Memoria was the first substantial result of Zinzendorf’s intellectual engagement with reforming the state credit of the monarchy. Importantly, it was Zinzendorf’s starting point for creating more robust economic structures for the monarchy. Printed in quarto, the Pro Memoria was intended for a wider dissemination so that government and Estates officials could become familiar with the new financial operation. A revised version was printed in 1759 as Finanz-Vorschläge zur Fortsetzung des gegenwärtigen Krieges. Allerhöchst Ihro Röm- Kais.-König. Apostolischen M.M.. Alleruntertänigst übergeben von Ludwig Grafen und Herrn von Zinzendorf und Pottendorf; dero wirklichen geheimen Rathe, Cämmerern und Assessore in denen Directoriis in publicis et cameralibus. Im Monat Jul.1759. In 1758, Zinzendorf had a written manuscript version, ‘Projet de Finance pour la continuation de la Guerre’. In the French text, Zinzendorf replaced the Estates of Lower Austria as the issuer of the bonds with the Vienna City Bank and tripled the issue size of the financial operation to 6 million florins. The other elements of the Pro Memoria remained largely unchanged. The use of the Vienna City Bank was a concession to Count Rudolf Chotek, its president, and to other officials in government who voiced strong opposition to Zinzendorf’s plan. Over four years, Kaunitz relentlessly pursued his plan to have Zinzendorf’s ideas accepted by government. Eventually, in 1761, the empress authorised the creation of an Estates Credit Deputation of Austrian and Bohemian lands and appointed Zinzendorf as its first president.

Simon Adler

Chapter 6. The Financial Expert of the Habsburg Monarchy

The preceding chapters presented the depth of Zinzendorf’s financial knowledge and how it developed. This chapter examines how Zinzendorf took part in the wider European intellectual discourse on political economy and how he adapted to the circumstances of the monarchy. The approach in this chapter will be synthetic and assesses the significance of Zinzendorf’s achievement from a variety of perspectives. The first section examines Zinzendorf’s intellectual formation. It sets out the type of economic thinker he was, his contributions to the political economy in the monarchy, and suggests explanations for his ability to shape domestic debates and institutions. Zinzendorf’s intellectual achievements and proficiency in financial matters attracted a small group of like-minded individuals. The circle around Zinzendorf, its composition, activities and writings are the subject of the second section which compares and contrasts it with the initiative of Gournay’s circle in France in the 1750s. Sections three and four set out Zinzendorf’s significance for the debates within government: first, how he interacted with and differentiated himself from projectors who had a continuous presence at court; and second, how Zinzendorf influenced the discussions on reforming the financial administration and stimulated intellectual decision-making in government. Administrative restructuring and economic questions were an important feature of Maria Theresa’s reign. The debates on reform were long-winded and complicated, and departments were often abolished, resurrected or moved around. An overview of institutional change during Zinzendorf’s time and the examples of the administration of commercial affairs do much to illustrate these differences of political opinions. The conclusion draws again on France and compares the Bureau du Commerce with the monarchy’s own central institutions for commerce. The penultimate section discusses the extent to which a public sphere existed in Austria in the 1760s and 1770s and leads to an appraisal of Zinzendorf’s ability to engage with the public and disseminate his ideas beyond the confines of inner government. The final section of the chapter emphasises the distinctiveness of Zinzendorf’s ideas by comparing them to the cameralist arguments of Justi and Sonnenfels.

Simon Adler

Chapter 7. Conclusion

Ludwig Zinzendorf was a sophisticated economic thinker in the mid-eighteenth-century Habsburg monarchy, part of the wider intellectual movement in Europe dedicated to understanding political economy and presenting it as an independent and important activity. Self-educated, polyglot and hard-working, Zinzendorf was formidably well-read and impressively numerate. His output was detailed and analytical. Zinzendorf sought to provide a different kind of economic advice and attempted to open government up to new concepts on the economy. He was a reformer resolute in his determination to propagate the most advanced European ideas and practices. Foreign thinkers, in particular French, provided Zinzendorf with the arguments with which he developed a new system of political economy for the monarchy. For Zinzendorf, who was a pragmatist, tried and tested ideas were preferable to new ones. They could be adapted to a different political environment. In this, and in his desire to generate a more open debate on economic arguments, Zinzendorf attempted to apply a moderate format of Gournay’s French initiative in the monarchy.

Simon Adler

Open Access

Chapter 6. Anglican Christians and Modern Political Economy

This chapter focuses on three sets of ideas developed by three famous Anglican clergymen, George Berkeley, Josiah Tucker, and Jonathan Swift. George Berkeley provided the first integrated view of economic development. Josiah Tucker recognized with great clarity that richer countries possess a series of economic advantages which make it virtually impossible for the cheap-labor of poor countries to ever catch up. Jonathan Swift recognized that poor countries require more than simply good economic policies to grow, they also need a dedicated elite and that passive resistance was an effective tool in the hands of the populace to make their grievances known. These Anglicans clergymen were the primary theorists of modern economic development.

Salim Rashid

6. Work, Learning, and Life Prior to Joining Development Research Center of the State Council (1983–1990)

This chapter describes my work, learning and life in the period from 1983 to mid of 1990 during which I served on the Standing Committee of Technical Economic Research Center (TERC) in 1983–1985, and the Standing Committee of Research Center for Economic, Technological and Social Development of the State Council (RCETSD) in 1985–1990.

Huijiong Wang

19. Money, Prices, and Payments in Planned Economies

This chapter is an account of the role of money in planned economies, which sets the subject in both theoretical and historical frameworks. Theoretically, money in planned economies is considered to fit into the state theory of money. Historically, the changing role of money, from hyperinflation to monetary stabilization, to the initial stages of the administrative-command economy, to monetary reform, to stable money, to chronic shortageflation, to acute shortageflation and loss of monetary control, is surveyed. Attention is paid both to the similarities (medium of exchange, unit of account) and to the differences (passive money, partial equivalence, role of the banking system) between money in planned economies and money in capitalist economies. It is concluded that cash money in planned economies was an instrument, analogous to propaganda or repression, to incentivize the population to work hard to achieve the goals of the national leadership, and that noncash money was an instrument to facilitate and check plan fulfillment.

Michael Ellman

16. Experiments with Paper Money

Experiments in paper money provide the crucial link in the transition from commodity money systems to modern fiduciary currency. China’s experience ended shortly before Europe began its own experiments. Using paper instead of precious metal was a way to economize on resources but also allowed governments to finance their deficits. The experiments surveyed show how issuance of paper by a central bank, coexisting with coins made of precious metal, came to be the dominant model in the nineteenth century.

François R. Velde

Chapter 3. Islamic Approach to Corporate Social Responsibility in Scientific Research with CSR Overview in Banking Sector of Bosnia and Herzegovina

Corporate social responsibility (CSR) as a social approach to business organization has been the subject of scientific research since 1953 when Howard Bowen published “Social Responsibilities of the Businessman.” In this conventional approach to CSR, this concept has a voluntary character because it can be observed as an expense, as a marketing activity, or as an activity that creates an added value for a business organization. Contrary to conventional approach of CSR, the Islamic approach implies that CSR is an integral part of Sharia because the emphasis of the Islamic economy is social welfare, which implies that Islamic financial institutions are also the bearers of this process. However, the question that arises is how much the Islamic approach to CSR is present in scientific research? The aim of this paper is to explore to what extent is this area represented in the research by scholars and practitioners. The research uses the Scopus and Web of Science (WoS) index databases for the period 1990–2017. This “bibliometric” approach is widely used in many fields and can be an indicator of the development direction of a certain area. Bosnia and Herzegovina, as a case, show to have CSR activities in conventional banks and Islamic bank with some specifics which cannot be found in conventional institutions. However, our results reveal that causes of insufficient research in this area on a global scale could be that Islamic financial institutions and Islamic Scholars are observing corporate social responsibility as a part of Sharia and not as a separate entity. The suggestion is that more empirical research needs to be done in this field to fill the identified gaps.

Aida Hanić, Velid Efendic


The principles of corporate social responsibility (CSR) have not been embodied in legislation in Canada. Rather, in recent years the federal government has promoted best practices in CSR. These efforts have focused particularly on mining and other extractive industries, because Canadian companies in this sector conduct, through subsidiary entities, very extensive operations in other countries. Law-making activity in the area of CSR and private international law has been most intense, not in the federal or provincial legislatures, but in the courts. A number of important cases have involved lawsuits brought in Canada against Canadian companies, in which foreign claimants seek to recover compensation for environmental and social harm caused by the operations of these companies’ subsidiaries abroad. The jurisdiction of Canadian courts to hear such cases has been upheld, but no case has yet progressed to a decision on liability. As well, courts have considered questions of choice of law in relation to failures to uphold CSR principle in foreign operations. They have also dealt with the enforcement of judgments, granted by a foreign court against a foreign company, against the assets of a Canadian subsidiary of the foreign judgment debtor. The challenges faced by the claimants in this body of cross-border litigation have to do both with Canadian private international law and with the Canadian rules about the legal responsibility of shareholder corporations for wrongs committed by corporations that they wholly or partly own.

Joost Blom

Optimizing e-KYC Process Using Distributed Ledger Technology and Smart Contracts

The current know-your-customer (KYC) process in banks needs the customer to go through the entire process of KYC in every bank. This process is redundant, time consuming and costly. To address this problem, we propose a an optimized solution for e-KYC process using distributed ledger technology and smart contracts, which aims at reducing the overall cost of KYC verification process in banks. With the help of the proposed smart contracts, the KYC verification needs to do once for a customer. The result of this KYC verification process is securely shared among other banks with the customer’s consent. It ensures that the relation between a customer and a bank is kept hidden from other banks. The proposed e-KYC solution offers efficiency, overall cost reduction and the improved trust with the increased transparency and throughput. The proposed solution is implemented on hyperledger fabric blockchain, and throughput and latency are analyzed to test its feasibility.

Hrushikesh Hanbar, Varan Shukla, Chirag Modi, C. Vyjayanthi

27. Case Studies in Financial Services: Success and Failures

Keeping investment banks alive in difficult times is challenging. Many have failed to survive. Bear Stearns and Lehman are only the latest in a long line of investment banks which have failed over the past decades. Royal Bank of Scotland and Citigroup are examples of those which survive, but in a much weakened state and only through temporary state ownership. Indeed the failure rate of investment banks over decades has made some rating agencies view them as not being eligible for ‘investment grade status’ in their company ratings. JP Morgan Chase is one which came through the financial crisis strengthened relative to its competitors. Even harder is the creation of a new ‘bulge bracket’ investment bank able to challenge the other major houses. I will now off er a contrast between a successful challenger and an unsuccessful one, before looking at some of the walking wounded from the war of att rition of 2007–12.

Brian Scott-Quinn

16. Assessing Risk and Return for Investors in Bank and Sovereign Debt

Global bank and sovereign debt together comprise by far the largest sector of the investment market. By comparison the global equity market is smaller. The relative importance of each sector can be seen Figure 1.1. Sovereign debt has also, the eurozone excepted, been the asset class which has given by far the highest return to investors since 2000. In contrast equities have been a great disappointment to almost all investors over that period as has bank debt. Any investor, therefore, has to consider these two large asset classes — sovereign debt and bank debt — as potentially important components of any portfolio. Though I have noted that sovereign debt has been the best performing asset class, within that class clearly urozone debt has proved to be very risky, quite the opposite of what traditional finance assumes about developed market sovereign debt, i.e. being the riskless asset. Equally, bank debt or at least senior debt, has been assumed to be almost riskless due to the ‘too large to fail’ doctrine employed by governments. However, that doctrine is in the course of being modified in ways that may in future lead to losses even on senior debt but certainly on junior debt. Any investor, therefore, has to know how to assess risk on individual instruments within these two asset classes and to know when it may be appropriate to disinvest from them and, equally, to spot opportunities when they arise for highly profitable trades.

Brian Scott-Quinn

4. Financial Intermediation: Commercial and Investment Bank Structure

In medieval times, merchants who traded between regions of a country or between countries needed to be able to change one currency in the form of gold or silver coins into other currencies. Merchants also needed to be able to keep their wealth somewhere they believed to be safe (gold and silver are very heavy to carry and ‘keeping it under a mattress’ was not safe). They grew to trust particular moneychangers with whom they would deposit their money, i.e. their gold and silver coinage, for safekeeping. The moneychanger would then make a book entry in his accounts showing who had deposited money and would give them a receipt. When merchants wanted to pay each other large sums, this could then happen across the books of a moneychanger rather than in coinage. If the person being paid did not have an account with that moneychanger, he could either open an account with him or the transaction could be settled between his moneychanger and that of the seller. This settlement could easily be undertaken physically between moneychangers if they worked in the same area. All that was required would be a short walk at the end of the day to settle any outstanding balances amongst the competing moneychangers. Similar services could also be provided by goldsmiths and even by monasteries and innkeepers — if they were trusted. The receipt that a moneychanger issued when a merchant deposited money was in effect a debt, i.e. a liability of the issuer (the moneychanger) and an asset to the holder (the merchant).

Brian Scott-Quinn

Seasonal Morphodynamics and Sediment Transport in a Highly Turbid Meandering Estuarine Channel

Intensive field surveys (longitudinal and transverse) in the upper region of the Chikugo River estuary (12–14.6 km landward from the river mouth), Japan were carried out in every three or four months during 2009–2011 using a digital sonar system equipped with a differential global positioning system. The primary concern of study was to investigate the spatial and temporal dynamics of bed morphology in relation to semidiurnal and fortnightly tidal variations, magnitude and movement of estuarine turbidity maximum (ETM), and seasonal variations in river discharge in a meandering estuarine channel. The results revealed that the estuary was dominated by tidal discharge for most of the year except for rainy season in which river flow dominates. During the low flow season (September to May), fine sediment was deposited near the inner bank during every semidiurnal tidal cycle and the depth of the inner bank becomes diminished. On the contrary, the outer bank was heavily eroded and becomes steep. As a result, ETM developed at the upstream of the estuary and the channel capacity reduced gradually during this period. However, in the rainy season (June to August), large flood events led to the breakdown of ETM and export the sediment in the upper reach of the estuary to the downstream tidal flat. The seasonal cyclic pattern of erosion and deposition processes were evident at the upstream meander. This cycle of morphological evolution of river bed continues based on the upstream sediment transport by the fortnightly tidal cycles and downstream sediment transport by the river discharge. Hysteretic effects between shear stress and SSC due to the asymmetrical flood and ebb tides as well as the seasonal variations in river discharge are the dominant factors that cause sediment transport and morphological changes in tide dominated estuaries.

Gubash Azhikodan, Kirana Somsook, Katsuhide Yokoyama

Chapter 3. Sustainability Indicators, Ethics and Legitimate Freedoms

If we change our focus from human development to sustainable development, and wish to answer the question of whether development is sustainable or not, it is necessary to have indicators which draw a line between sustainability and unsustainability. Consequently, this chapter argues that the evaluative space needs to be broadened from capabilities to include the environment and make the approach and in relation to this we need to examine the consequences of our doings and beings and our correlative responsibilities. This chapter concentrates on resources and environmental indicators (Adjusted Net Savings, the Ecological Footprint and Planetary Boundaries). It argues that while science pays an extremely important role in establishing such indicators we also need to justify them ethically. Thus it draws on Scanlonian contractualism and argues for a conceptualization of sustainable development as one of increasing legitimate freedoms.

Andrew Crabtree

7. Bank Credit Risk Analysis and Bank Credit Rating

This chapter applies the criteria-based approach to the banking industry. Commercial banks are different from other enterprises in their core activities and thus the variables that determine bank failure are different. A commercial bank earns the bulk of its income from long-term loans funded by shorter-term retail deposits and wholesale borrowings—a process called maturity transformation. The chapter provides the conceptual framework to analyse a bank’s financial statements and to narrow the focus to the business environment, quality of management (including risk management) and governance, and financial strength. This last includes a comprehensive and thorough examination of asset quality, and the adequacy and quality of liquidity and capital. The chapter explains important metrics such as Basel III capital ratios, economic capital, and Value at Risk.

Terence M. Yhip, Bijan M. D. Alagheband

Chapter 3. Real Estate Finance in China: Evolution and Prospects

In this paper, the evolution of China’s housing finance refers to its history since the reform and opening-up started in 1978. We will introduce and analyze this topic in four aspects – financial institutions, financial market, financial regulation and control and financial products for real estate.

Guangchun Gao

Chapter 17. Development of Capital Market and Financing Future Growth in Bangladesh

This chapter highlights various aspects of the capital market in Bangladesh, which now consists of two stock exchanges—Dhaka and Chittagong stock exchanges. After a crash in 2010, various policy reforms helped the market return to its normal behavior. Lack of institutional investors and underdeveloped secondary bond market are key impediments of the capital market to meet the financing needs of the country in the backdrop of its graduation from the least developed country (LDC) status, which is likely to be achieved in 2024. Therefore, a set of recommendations is made in this chapter for further development of the capital market in Bangladesh.

Monzur Hossain

Bunkers: Jail Application Level Firewall for the Mitigation and Identification of Service Takeover Attacks on HardenedBSD

Jails are a lightweight operating-system based virtualization framework that allow safe delegation of subsets of a FreeBSD operating system to guest root users. HardenedBSD is a security-enhanced fork of FreeBSD, with Jail capabilities. In this paper we introduce Bunkers for Bank IT infrastructure security. Bunkers are security-enhanced HardenedBSD jails having only UNIX domain sockets enabled, and refusing all other types of socket creation including networking sockets. Bunkers also disable the execve() system call inside and only allow bit exact validated binaries from a global whitelist to be loaded and executed.The main objectives are to prevent elevation of privilege attacks and to isolate remote payloads and exploits from their source of origin. Bunkers detect, log, monitor and prevent all attempts to use network communications or unwanted binaries by isolating all the internal processes to UNIX domain sockets and filtering the execve() system call. Two use-cases are presented for isolating the ClamAV antivirus engine and all the necessary compressed file unpackers into HardenedBSD Bunkers: for e-mail security in a store and forward system and a real mail server and for web browsing security through the Squid proxy. Extensive benchmarks show that in both cases, for store and forward systems and for timely content delivery web systems the impact of the Bunker kernel module is comparable to rival approach Integriforce or with Regular Jails. More importantly, enforcing UNIX domain sockets for internal communication provides faster and safer inter-process communication mechanisms, between service processes and between Jails. The bit-exact execve() firewall has a consistent 13%–19% additional computation regardless of the type of service protected (web application firewall, SQL database). For the utmost security of mission-critical services we consider the results to be adequate.

Alin Anton, Răzvan Cioargă

Chapter 3. Gendering Migration Management

The International Organization for Migration (IOM) formally adopted the principle of gender mainstreaming in 1995, at the same time as it embraced its new mandate in Toward the 21st Century. This chapter examines the process of ‘gendering’ the IOM, with particular attention to its understanding of transnational care chains. It argues that, in many ways, the IOM’s gender discourse has been shaped to fit the IOM’s migration management discourse, a discourse that forms part of the broader international migration narrative. On the issue of transnational care chains, however, the IOM has commissioned a set of important studies that break with the gendered subset of these narratives. The IOM’s closer relationship with the UN also holds the promise of increasing the impact of the more critical discourse on its field operations.

Rianne Mahon

Chapter 7. The Basic Tasks of the European Central Bank Within the Eurosystem and Issuance of Banknotes and Coins

This chapter first examines in detail the definition of the single monetary policy, as well as its implementation, with an emphasis on the instruments used, the eligible counterparties, the assets eligible as collateral in the Eurosystem and then, in particular, the implementation of this policy following the recent (2007–2009) international financial crisis and the ongoing fiscal crisis in the euro area. The (recent) introduction of the euro short-term rate is also discussed in this section. The second section analyses the other basic tasks of the European Central Bank (ECB) within the Eurosystem: the exchange-rate policy, holding and managing foreign reserve assets, and promoting the smooth functioning of payment systems. In relation to the latter, the 2014 ECB Regulation on oversight requirements for systemically important payment systems, the Trans-European Automated Real-Time Gross Settlement Express Transfer 2 (TARGET2) payment system and the TARGET2-Securities system are discussed in more detail. Finally, the third section develops on the powers of the ECB in relation to the issuance of euro-denominated banknotes and coins.

Christos V. Gortsos

3. Bills of Lading

Exercising Control

Bills of lading are arguably the most important document in international trade. When financing goods in transit, the structured financier will ordinarily require control over the goods and rights of possession. The disposal of the goods can provide a secondary means of repayment for the financier should the supported transaction fail to successfully conclude and the client defaults on repayment of the facility. This is particularly important when the goods are travelling by sea, given the length of the journey and often large consignment value.This chapter considers the key aspects of the bill of lading which are necessary for the financier to achieve control over the goods and the required level of risk mitigation.

Stephen A. Jones

5. Letters of Credit for Import

Protecting the Applicant

A letter of credit is an undertaking to make payment at sight or on a future determinable date up to a specified value, usually given by a bank which is conditional on the receipt of documents which appear ‘on their face’ to comply with the terms of the credit and the applicable UCP rules.Letters of credit are used primarily when the seller and buyer do not have an established or trusted relationship. The conflicting needs of the seller and buyer result in differing requirements for the structure and terms of the letter of credit. This chapter discusses the optimum structure of the letter of credit to mitigate risk for the buyer and to provide a financing solution.The same trading scenario is also examined in Chap. 6 to illustrate the key differences in required structure between an import and export letter of credit.

Stephen A. Jones

10. Back to Back Guarantees

Managing Risk

In this chapter we examine a middle-party’s requirement for the issuance of demand guarantees, the nature of the resultant risk exposure for them and their bank, and how the transaction can be structured to mitigate risk.A variety of solutions are described for the middle-party’s bank to include back to back guarantees, assignment of proceeds and the use of transferable guarantees.The importance of considering the bigger picture is highlighted with regard to both risk and opportunity before issuing guarantees.

Stephen A. Jones

6. Letters of Credit for Export

Protecting the Beneficiary

The primary concern of a seller is whether they will be paid by the buyer for the shipment of goods. A letter of credit provides an independent payment undertaking of a bank, subject to the presentation of complying documents. For the seller, it is often said that ‘the documents are more important than the goods’.If the documents do not fully conform to the credit, this is known as a ‘discrepant’ presentation which at best can result in delayed payment and at worst in rejection of documents and no payment.This chapter discusses the optimum structure of the export letter of credit to mitigate risk for the seller and to provide a pre-shipment finance or post-shipment discount or negotiation solution. The same trading scenario is examined in Chap. 5 to illustrate the key differences in structure between an export and import letter of credit.

Stephen A. Jones

17. Specific Insured Debt Purchase

Structuring a Solution to Meet the Client’s Needs

In this chapter, we look at how receivables finance was used to fund the lengthy credit terms provided to a buyer in an emerging market country on a specific contract.The use of supporting credit insurance is described and how a facility was structured to accommodate the needs of the seller for the provision of without recourse debt purchase at the time of shipment of the goods.This case study serves to highlight the importance of an innovative approach, legal opinion and authentication of the documented agreements and debt instruments against which finance and debt purchase are to be made. Nothing can be taken for granted. There is no substitute for asking the right questions, such as ‘what could go wrong’, due diligence and a methodical approach to structuring the solution.

Stephen A. Jones

12. Pre-Shipment Finance

Funding the Manufacturer

Whilst the provision of a loan to a manufacturer for the purchase of components presents high performance risk, this chapter explains how the evaluation of risk and structuring of a pre-shipment finance facility can provide much needed funding which otherwise would not be available by conventional lending assessment. The importance of the borrower’s solvency during manufacture and dependency on other lending facilities is discussed.When an export letter of credit is to be used as the primary source of facility repayment, the required terms and conditions are described. Consideration is also given to a scenario where the sale of the manufactured goods is to be made on an open account basis.The structuring techniques are explained to include the criteria for facility drawdown.

Stephen A. Jones

Chasing the Wind: Clashes Between Israeli and Palestinian Narratives

The consequences of the 1948 Arab-Israeli war continue to resonate in modern times. The Palestinians and the Israelis are stuck in an all-consuming conflict over territory, sovereignty and identity, with no end in sight. Two clashing and seemingly irreconcilable metanarratives present in the Israeli-Palestinian conflict revolve around what happened in 1948 with the formation of the state of Israel. The Palestinian narrative describes a people unjustly deprived of its land by invaders, whereas, on the other hand, the Israeli narrative, depicts the justified return of a historically dispossessed diaspora to the land of its ancestors. There is little understanding, respect or acknowledgement of what the other side perceives to be its narrative. These accounts rest on a number of ideological, religious and strategic layers that are at times intertwined. This chapter examines how the Israelis and the Palestinians have constructed their metanarratives, how they inform the policies and practices of their respective governments, and concludes with reflections on the prospects for a resolution of the conflict.

Olli Ruohomäki

Chapter 3. Specifications: The modules and their treatment in the literature

This chapter provides a literature review. It is, however, not a standard review that takes individual publications and repeats their results. In contrast, its innovation is to proceed in a cross-sectional fashion. It restructures the content along the modules of lending theory identified in the previous chapter (see 2.1). The emphasis lies on carving out the fundamental working principles of each module.

Christian Prem

Chapter 3. “The Monetary Link”: Tocqueville on the Second Bank of the United States and Liberal Political Economy

Tocqueville is not considered a pioneer of political economy, though economic themes are prevalent throughout his work. However, through an analysis of his comments on the debate over whether or not to recharter the Second Bank of the United States, I argue Tocqueville demonstrates that governmental centralization is essential for a healthy liberal political economy. Governmental centralization is key because it allows for the implementation of the entrepreneurial spirit and provides a basic structure of rules and laws that facilitate commerce and are the basis for national bonds and distinctly American mores. For Tocqueville, the political economy of America is defined by both a spirit of commerce and a need for institutions that foster this spirit and prevent it from being overcome by problematic democratic passions.

Brianne Wolf

28. Case Study 7: The Digital Transformation of Banking—An Industry Changing Beyond Recognition

Partly as a result of the rise of FinTechs, banking is a sector that is facing significant disruption. In this case study, we identify some of the innovations that are being made both by young start-ups and long-established banks. We explore emerging opportunities in terms of business models, as well as how new operating models will boost customer-centricity and optimize costs through intelligent automation. The challenges of strategy, leadership, and attracting and retaining digital talent are analyzed. Finally, we conclude with a discussion of how platforms will enable new ecosystems of partners to work together to create and capture customer value.

Hubert Tardieu, David Daly, José Esteban-Lauzán, John Hall, George Miller

Chapter 5. Israel-Palestine: Part Two—Australian Foreign Policy and the Israel-Palestine Conflict—Avoiding the Colonialist Narrative

Settler colonial societies such as Australia, the United States and South Africa have unique attributes which affect not only the way they interact with each other, but also how they regard their indigenous populations. The settler-colonial nature of Zionism not only determined the oppressive nature of Israel’s occupation of Palestine, it also explains why other settler-colonial states such as Australia, Canada and the United States have consistently been Israel’s greatest defenders in international diplomacy. It is the similar colonial history of these political communities that has constructed a distinct, supportive and mutually reinforcing series of political relationships.

Scott Burchill

An Integrated Research Methodology to Identify and Assess Knowledge Risk in a Corporation with Application to a Financial Institution

More than ever before, knowledge today drives the socio-economic and technological developments of mankind. Yet during the application of knowledge in business, in particular, the economic benefits are often coupled with various potentially negative impacts, known as knowledge riskRisk . This happens when knowledge is mishandled at any point in the business cycle. For example, leakage of valuable secrets of products under development to competitors due to improper handling of computer security can affect the future of a corporation. Seeing the impact of knowledge risk on the corporation, management must initiate efforts to mitigate and prevent this critical risk. This starts with the identification and assessment of various knowledge risks in the corporation to gather basic, current risk information first. While traditional survey methods still apply, this chapter proposes the evidential reasoning (ER) approach to make the survey assessment more relevant and closer to the real risk landscape the corporation is facing. After an introduction and a literature review of knowledge risk and its management, the proposed identification and assessment methodology is fully explained, which is illustrated with a hypothetical knowledge risk hierarchy of a bankBank . In the conclusions, the benefits of ER approach are elucidated, and future directions are indicated.

Haley Wing Chi Tsang, Wing Bun Lee

Chapter 2. From Plurality of Issue to Monopoly and Back: 1850–60

This chapter covers the main events in Brazil’s monetary and banking history between 1850 and 1860. It starts with the abolition of the slave trade and the ensuing freeing up of capital, which was ultimately recycled by an incipient banking system consisting of deposit and discount banks that also issued short-term script (vales) used as money. In chartering a semi-official bank in 1853 (the third Bank of Brazil), entrusted with a monopoly of note issues, the government sought to regulate the money supply and the rate of exchange. The authorization granted in 1857–8 to new banks of issue to operate in competition with the Bank of Brazil coincided with the spread of the 1857 financial crisis in Brazil. This led to an orthodox reaction against plurality of note issue.

André A. Villela

Chapter 4. The Treasury as a Monopolist Note-Issuer: 1866–89

The chapter analyzes monetary and banking policy in Brazil between 1866 and 1889, a period when the Treasury exercised a monopoly of note issues. Initially—and amid the demands on the imperial budget stemming from the war with Paraguay—issues of paper money were made in conjunction with the floating of debt, domestically and abroad. Recourse to seignoriage would reappear, albeit to a lesser degree, in the late 1870s, in connection with expenditures with drought relief. Throughout, government policy in the monetary realm sought to institute a fully convertible circulation, an objective that was eventually achieved in mid-1889. The attainment of the “mythical” 27 pence/milréis parity paved the way for the Ouro Preto government to reintroduce plurality of gold-backed note issues by private banks. A generous program of subsidized credit to planters was not enough to secure the survival of the constitutional monarchy, which was toppled by a military coup in November 1889.

André A. Villela

Chapter 8. China, India Should March to Their Own Drummers

The thaw had begun with the young 45-plus leader having crossed the Himalayan heights and crossing over where no Indian prime minister had not gone for more than two decades and courted an 83-year-old ‘enemy.’ And hard-boiled Deng probably thought about his paraplaegic son—a victim of the Cultural Revolution—when he held Rajiv’s hand for close to three minutes and told him that let the leadership of the two countries allow the problems of history remain frozen for the time being, while the India and China move forward with a newer agenda. This melted the ice and since then the Sino-Indian ties have weathered some gale force winds: with Vajpayee, for example, singling the nation out as the main target of the Indian nuclear weapons programme. A chill descended on Sino-Indian relations. A decade of stasis followed when little momentum was achieved during UPA rule. Hu Jintao’s China sought to consolidate amidst the frenetic pace of economic growth and attain social harmony. India’s UPA government gained the attention of its northern neighbour when the country finally got the US to agree to the CNA. But there seemed to be an absence of apparent strategy towards engaging each other, even though developing geostrategic and geopolitical landscape demanded the same.

Pinaki Bhattacharya

Chapter 6. Italy in China in the Inter-war Years

In this chapter, the import and export between Italy and China will be examined, within a particular and complex period such as that between the two world wars. It was characterized in Italy by the rise of Mussolini and the fascist government. The accelerated Italian industrialization process following the Great War had become somewhat unbalanced. This disorderly and artificial expansion would have required, at the end of the conflict, a radical restructuring and a renewal of the plans to allow the resumption of peacetime production and the reintegration of the productive apparatus into a market system. In 1922, the political crisis reached a peak in Italy: the March on Rome of 28 October 1922 carried out by the Blackshirts saw the then king of Italy Vittorio Emanuele III refuse to sign the declaration of a state of siege and decided to entrust Benito Mussolini with the task of forming a new government. The economic and financial objectives of the government programme in fascist times, in short, were: (a) to reduce the deficit of the public budget; (b) to pursue a “productivist” economic policy that would provide more space for private entrepreneurship; (c) to make available a greater share of national savings for private investments (even if, despite Italy being a rural country and the exaltation of the myth of the land and the return to the countryside, its economic policy aimed to favour the interests of the great industrial groups) (Zamagni in Dalla periferia al centro. La seconda rinascita economica dell’Italia 1861–1981. Il Mulino, Bologna, 1990, 349–377; Bof in Grande Guerra e primo Dopoguerra (Chap. V, pp. 89–118), Economia e politica economica in età fascista (Chap. VI pp. 119–156), Dalla guerra d’Africa alla seconda guerra mondiale (Chap. VII, pp. 157–186) in L’Italia economica, 2015, 118–119). In 1927, the labour charter was issued, which was the manifesto of the corporate state: economic life, therefore, came to depend more and more on the state. The crisis of ‘29 involved, among other changes, the definitive crisis of mixed banks, thereby consolidating the process of banking concentration. Moreover, even before the political circumstances underlying the Ethiopian War and the sanctions imposed by the League of Nations, other factors, such as the defence of the gold standard of the lira to the bitter end, contributed to the affirmation of a markedly restrictive policy, which meant that Italy became increasingly isolated from the international market (Petri in Storia economica d’Italia. Dalla Grande Guerra al miracolo economico (1918–1963). Il Mulino, Bologna, 2002, 113–157; Bof in Grande Guerra e primo Dopoguerra (Chap. V, pp. 89–118), Economia e politica economica in età fascista (Chap. VI pp. 119–156), Dalla guerra d’Africa alla seconda guerra mondiale (Chap. VII, pp. 157–186) in L’Italia economica, 2015, 158–159).

Donatella Strangio

Chapter 2. Writing for His Shadow

This chapter presents a career-oriented and chronological biography of Sadegh Hedayat to historically locate his work and list his literary creations. Since this study makes the case for the necessity of broadening the critical horizon to study the diversity of Hedayat’s creations as a historical development of ideas and genres, this chapter uses the chronological narrative to display how reading his work in light of a few clichéd biographical ideas is insufficient for appreciating an intellectual development that is a major clue to understanding Iranian literary modernity. Hedayat did not theorize his ideas and only occasionally reflected on aspects of his work (e.g., on translations or folklore); so, this approach is a step toward a new and theoretical look at his literary career.

Omid Azadibougar

Functional Modeling of IoT Protocols

The concept of the Internet of Things (IoT) is widely recognized in the field of scientific research. In the last year the focus of objects is becoming more and more important in our daily lives and in all sectors of activity. IoT aims to simplify our daily lives, using a multitude of possible applications. One of the key aspects of IoT is the communication between the various components of the overall system. There are many ways to connect and communicate objects. For that, the application and network protocols adapted for IoT applications. So, these proto-cols have been widely investigated. In this paper, we will present the modeling of the functioning application protocols. These protocols are: CoAP, MQTT, XMPP, AMQP, DDS, WebSocket and Rest API. For modeling, we used the activity diagram which is a behavioral diagram of UML.

Sakina Elhadi, Abdelaziz Marzak, Nawal Sael

Chapter 5. Design of a Simulator for Heterogeneous Memory Organizations

In this chapter we explore the design of a memory hierarchy simulator to evaluate the data placement produced by our methodology or to explore the impact of different memory organizations on the performance of the system with different data placements. After simulation, the designer can iterate on the previous steps of the methodology or, if the outcome looks satisfactory, use the output of the mapping step to prepare the deployment of the application. We describe how to implement a simulator for memory traces that supports SRAMs, caches, SDRAMs, and LPDDR2-SDRAMs. The construction of the simulator provides also a context to understand the characteristics of different memory technologies and their impact on performance and energy consumption.

Miguel Peón Quirós, Francky Catthoor, José Manuel Mendías Cuadros

E-Banking Users’ Profiles in Lebanon Exploration of the Role of Socio-Demographic Factors

Referring to the model developed by Rogers [8] on the diffusion of innovations and that of Venkatesh and Morris [9], this article aims to explore and identify the role of the socio-demographic factors in the adoption of e-banking by the clientele of a big commercial bank operating in Lebanon. The analysis and processing of data emanating from the bank through the SPSS software allow us to draw representative profiles of customers based on their socio-demographic criteria. The obtained results are consistent with previous researches and confirmed the impact of age, income, educational level and profession on the adoption of e-banking by the Lebanese consumer. These results provide an in-depth understanding of the role of socio-demographic characteristics in the use of electronic distribution channels and help Lebanese banking institutions better establish strategies for promoting online banking services in the future.

Bissane Harb, Mariam Saleh

Chapter 11. Bank Failures Cause a Global Crisis: How the Complexities of United States Mortgage Securities Devastated Banks and Made the Banking Crises Global

The crisis transformed United States investment banks that received government support and became regulated like commercial banks. United States housing losses significantly affected European banks. Disruption in financial markets, including the inability of banks to sell additional mortgage loans onto investors, had dire consequences outside the United States. HBOS, Lloyds TSB and RBS in the United Kingdom all failed due to absent management. The Swiss universal bank UBS incurred the largest foreign loss of $38 billion from United States subprime lending. Absent management in Barclays and other banks had global impact with the manipulation of benchmark interest rates known as the LIBOR scandal.

Christian Dinesen

Chapter 10. Bank Failure: Triggering Crisis—How Absent Management in Banks Triggered the 2008 Financial Crisis

After Bear Stearns was rescued by J.P. Morgan and United States government another unmanaged investment bank, Lehman Brothers, triggered the 2008 financial crisis. Lehman Brothers’ uncontrolled growth was financed by remarkably increased leverage. Its risk management had been trumpeted as a strength, but complexity was beyond management. Incentives were vast and awarded for achieving growth. When the government refused to support Lehman Brother and nobody would buy it, the bank failed and triggered the crisis. On the same day Bank of America bought and saved Merrill Lynch, in spite of Merrill Lynch having also abandoned management in pursuit of complex, unmanaged growth. The giant insurer AIG then also had to be rescued.

Christian Dinesen

Chapter 6. Complexity from Growth in Lines of Business: How Absent Management Occurred When Different Types of Banking Were Merged

The rapid growth of banks included expansion into additional lines of business. This added to the complexity of managing multiline banks. The combination of commercial deposit-taking and investment banks, with much larger combined balance sheets, enabled significantly increased trading for the banks’ own account. The mergers were often paid with shares, and many banks not already listed on stock exchanges did so in the 1980s and 1990s. Large banks with extensive geographies and new business lines made management so complex that it was sometimes absent. One example was the failure of Barings Brothers in 1995, caused by absence of management of a fraudulent trader.

Christian Dinesen

Chapter 2. The Medici and Renaissance Complexity: How the Challenges of Renaissance Banking Finally Defeated the First Multinational Bank

This story begins as early as the fifteenth century, with one of the most famous banks in history, that of the Medici in Renaissance Florence. Many of the complexities related to a rapidly growing multinational bank were evident in the Medici Bank. The different banking products can be identified and explained. The risks of lending to sovereigns become understandable. The need to delegate management to capable and correctly incentivised managers was central to both the success and the failure of the Medici Bank. An early example of absence of management becomes apparent when Lorenzo the Magnificent was consumed by politics and abandons the management of his bank.

Christian Dinesen

Chapter 13. What Has Changed: How Little Has Changed in Terms of Complexity, Producer Managers and Absent Management in Banking

Regulation following the 2008 financial crisis was about more of the same. Banks should now hold so much more capital that they could not fail. Banks were not simplified due to their successful lobbying. Regulation became more complex, which made it more difficult to implement and supervise. Some regulation was so complicated that it has still not been implemented more than a decade after the crisis. Complexity favoured larger banks with the resources to understand and take advantage of the regulation. J.P.Morgan’s investment losses in London, Danske Bank’s money laundering and Goldman Sachs’ Malaysian issues bear hallmarks of absent management. No one would manage that badly.

Christian Dinesen

Chapter 9. Bank Failures Cause Crisis: How Absent Management in Banks Can Cause a Crisis

Banking is based on trust. Trust that each bank will pay back deposits to customers and loans to other banks. If one bank loses the trust of its customers, or that of other banks, this can cause a run on the bank. Northern Rock became overly dependent on mortgage-backed securities and caused the first bank run in the United Kingdom for 150 years, because it lost the trust of the depositors who stood in queues outside the branches. When the United States housing market slowed, one of the first casualties was the unmanaged investment bank Bear Stearns, which lost the trust of the banks financing it.

Christian Dinesen

Chapter 8. Globalisation

Accelerated transnational mobility (of money, technology, products and people) has weakened established solidarities. But it has also led to mass populist mobilisations and the election of authoritarian leaders. Protectionism (including tariff barriers) is attempting to reverse many of the effects of globalisation, but at the price of more expensive consumer goods and jeopardised political liberties.

Bill Jordan

Maritime Rules for Rail Carriage: China’s Initiative to Incorporate Rules from the Road to the Belt

A group of small and medium sized importers in the Chongqing Pilot Free Trade Zone (PFTZ) using the Eurasian railway corridors connecting European countries to China requested the Chongqing local government for creating negotiable transport document for railway carriage, similar to bill of lading in maritime transport, for financing purposes. The importers highlighted that Chinese banks are unwilling to issue letter of credit to support the payment for their imports carried by rail from European countries as railway consignment note is not a document of title. As an interim measure, the Chongqing local government established a logistics and financial intermediary that would assume the credit risk before importers can approach banks to issue letter of credit. To find a permanent solution, the Chinese government plans to initiate international negotiations for revising railway carriage rules in the near future.This chapter critically analyses from a legal standpoint whether the approach adopted by the Chongqing local government can address the evolving trade finance needs of importers in the Chongqing PFTZ. The chapter discusses in contextual detail the legal and policy framework of the BRI under which the Eurasian railway corridors are created and then draws connection between the frameworks of the BRI and the Chongqing PFTZ. The paper examines whether there is real need to apply maritime rules to railway carriage for purpose of obtaining letter of credit and then analytically probes how digital infrastructures such as single windows, platforms and distributed ledgers may be used to reduce information asymmetry between traders and banks to increase access to trade finance. In this context, paperless trade and supply chain finance initiatives that can be supported by the recently adopted Model Law on Electronic Transferable Records is discussed. In conclusion, a prognosis of legal rules that may be promulgated with greater ease to attend to the financing needs of Chinese importers is made taking into consideration the flexibility allowed to the Chongqing PFTZ to test new laws that can support new businesses.

Abhinayan Basu Bal, Trisha Rajput

Visual Cryptography and Image Processing Based Approach for Bank Security Applications

Authentication is a critical step in initializing a bank transaction. Core banking and net banking systems use ID cards, passwords/PIN, OTP, etc. for authentication. However, these methods are still prone to forgery and hacking, due to which unauthorized person could gain access to user’s account. We propose a methodology which uses an image share as authentication key. This has been created using visual cryptography and other image processing techniques to encrypt authentication parameters. It is encrypted such that the share becomes incomprehensible to human eyes and non-decryptable by hacker, thus protecting the data from forgery or hacking. This paper proposes a double authentication system where user is identified by decrypted image and PSNR value. Hence this system provides a very high level of security.

Bageshree Pathak, Darshana Pondkule, Rasika Shaha, Apurva Surve

Chapter 5. Neoclassical Economics, Marx and Keynes, and the Global Financial Crisis

This chapter shows that all the major capitalist countries in the world today are going through a prolonged phase of recession and seeks to explain this phenomenon. It observes that the recessions in these countries have followed formation and collapse of huge asset price bubbles, which precipitated deep economic crises. Carefully analysing available evidences, this chapter argues that these phenomena have been deliberately caused by the global financial capital (or giant capitalists) in connivance with the central banks and the governments of the countries where the crises have occurred. Keynesian stabilization measures have been deliberately designed in such a manner that recession persists at a desired level indefinitely following the crisis.

Chandana Ghosh, Ambar Nath Ghosh

Chapter 3. Establishing Socially Efficient Foreign Exchange Markets

African countries should aim for social efficiency of their foreign exchange (forex) markets, inter alia, to ensure that the foreign exchange systems are sound from the economic growth perspective and fair from a distributional perspective. In any African country, the policymakers of the government and the central bank should agree on a macroeconomic policy framework and the central bank should develop a governance structure for the forex market, with monitoring rules and enforcement mechanisms to ensure sound operations of a unified foreign exchange market. The central bank, in its intervention in the forex market, should not distort the openness and fairness of private foreign exchange market operations. Interventions by the central bank in the foreign exchange market can succeed in smoothing the path of the exchange rate and in stabilizing the rate, both of which may be of value to the welfare of the citizens under certain circumstances. Still, in the context of a coherent financial market development policymaking, a freely floating socially efficient forex regime could be found and not difficult to manage. In policymaking and implementation, the relevant authorities should address certain behavioral factors that have been identified in the economics literature and ensure a high degree of coordination between monetary and fiscal policies.

Omotunde E. G. Johnson

28. The Land Bank Balance SheetLand bank balance sheet and the Transmission of Shocks to the Agricultural Sector

How are adverse loan supply shocks and credit risk transmitted to the agricultural sector via the Land Bank balance sheet? We find that adverse loan supply shocks and credit risk shocks as proxied by positive shocks to non-performing loans exert downward pressure on the agricultural sector credit growth, output growth, investment growth and employment growth. In addition, evidence shows that credit extended by the Land Bank will have to increase at double-digit rates so as to support the accelerated land reform policy. In addition, this will increase its balance sheet to more than the current 1 per cent as a share of the banking sector. Thus, the scale of funding dedicated and available to land reform and agricultural development through the Land Bank as a vehicle for development finance must double overtime. This has to be accompanied by the implementation and enforcement of a rigorous financial and prudential regulatory environment to make sure that the risks faced by the bank are well managed. Furthermore, this will make sure that the new business model to support the accelerated land reform policy, rural development and agricultural revolution is sustainable in the long run.

Nombulelo Gumata, Eliphas Ndou

Chapter 9. “Money, Money, Money”: Bloomberg, Reuters and a Changing Agency Scene; International News-Reporting a Continuing Priority. Agencies Monitor Performance. (77I4)

In 1981, G. Renfrew replaced G. Long at Reuters. In Agence France-Presse, H. Pigeat was midway through his tenure—appointed in 1976 as assistant to the chief executive C. Roussel, who was himself ‘p.d.-g’, 1979–86. In 1981, in New York, Michael Bloomberg founded his eponymous company. Financial news, data and trades increasingly gained in importance, doubtless in tune with globalisation, putting general news in the shade, even if international general news itself remained important. Considering executives, managers and major international journalists closes the chapter.

Michael B. Palmer

Chapter 2. High-Speed Data Transfer Based on SERDES

SERDES (Serialization/De-serialization) transfer mechanism, namely a serializer at the transmitter for serializing the parallel data into a serial bit stream and a de-serializer at the receiver for recovering the bit stream back to the original parallel data. The parallel-to-serial and serial-to-parallel functions were mainly implemented by specific ASICs first with DS92LV16 (National semiconductor; DS92LV16 16-bit bus LVDS serializer/deserializer—25–80 MHz, [1]) and DS90CR287 (National semiconductor; DS90CR287/DS90CR288A +3.3 V rising edge data strobe LVDS 28-bit channel link-85 MHZ, [2]) as examples. With these chips, a communication from Chip To Chip, Board To Board and Chassis To Chassis is established.

Feng Zhang

Chapter 1. From Small Is Beautiful to The Fortune at the Bottom of the Pyramid: Management “As If People Mattered”

In line with Mahatma Gandhi’s Swadeshi movement in India, the Communes in China, and the Kibbutzim in Israel, as opposed to the calculated economies of scale of steel and cotton mills in England, E. F. Schumacher (1973) “intoned” Small Is Beautiful: A Study of Economics as if People Mattered. Just about a decade later, the first Grameen Bank was formally established in Bangladesh. Three plus decades past Schumacher, C. K. Prahalad (2004) published The Fortune at the Bottom of the Pyramid. There is a secure connection among Schumacher, Yunus, and Prahalad: Needs of the less fortunate at the corporate and public levels must urgently be addressed. This sequel builds upon these connections to suggest a business (and economic) management model for the future of global society, as if people mattered.

Aqueil Ahmad

Chapter 1. Agriculture: Wireless Sensor Network Theory

This chapter provides the Internet of Things (IoTs)-based Smart Agriculture System. The system aims at improving agricultural production in BotswanaBotswana by remotely monitoring farms of all types using the Internet of Things (IoTs). The system uses sensors to monitor different parameters for these living things to ensure that a proper environment is maintained at all times. This chapter gives a detailed explanation of the data loggers which transmit data wirelessly to a central point located on the farm. The central location is referred to as a gateway, and it is where the farm employees can visualize and analyze data. The on-farm network of sensors and gateway is linked to an online server through General Packet Radio ServiceGeneral Packet Radio Service (GPRs) (GPRS) and Satellite to allow for remote online data acquisition (DAQ). In this chapter, low cost and reliable wireless data acquisition system are implemented in real time at the banana field. The moisture stress, reducing the usage of excessive water, rapid growth of the weeds is achieved with the implementation of sensor-based site-specific irrigationIrrigation. Internet of Things-based remote control of irrigation can also be achieved in the system. The implemented system can be used to transfer the fertilizer and other chemicals to the field with the help of adding new sensors and valves.

Abid Yahya

Chapter 11. The Occupability as a Form of Social Policy

In recent years, we have been able to verify changes in the relations between the State, social policies and politics of the sensibilities, as we have been warning in this book. In the context indicated, we intend to underline another feature of social policies concerning the group of people who are planned to “attend” indefinitely: occupability as a new way to suture market failures and avoid conflict. To achieve the stated objective, we have elaborated the following argumentation: firstly, we summarize the diverse views on the Welfare State; secondly, we shown the connections between the social, the political and social policies; and in the third place they are synthesized with the practices of feeling associated with occupability. The chapter ends with some reflections about the consequences of the phenomenon described.

Angélica De Sena, Adrian Scribano

Chapter 2. Historic Evolution of Membership Concepts

This chapter analyses historic perspectives of membership and traces the development of the international private unions (IPUs) and international administrative unions (IAUs) established in the 19th century to today’s international organizations. The purpose of the chapter is not to provide facts but to show connections, e.g. between the establishment of the IPUs and the recent emergence of a new type of dual and hybrid organization which has become a new business model for establishing international organizations. Also, the fact that previously international organizations have admitted both technical administrations and dependent territories to membership on a par with states is of relevance for the discussion on eligible subjects of membership. The chapter also highlights the differences between membership concepts and collective security concepts (with regard to relations with non-members) of the League of Nations and the UN, as well as the emergence of treaty bodies and quasi-autonomous bodies established under the auspices of the United Nations, and the proliferation, privatization of international organizations and new institutional paradigms.

Gerd Droesse

Chapter 2. Geo-environmental Settings

This chapter deals with geo-environmental settings of Mizoram. The geographical location and landscape influence farming systems mainly shifting cultivation. A detailed description of location and extension, climate, forests, soils, major rivers and geology of the state has been elaborated substantially in this chapter. Further, several maps and diagrams support this chapter significantly.

Vishwambhar Prasad Sati

4. Trade-Openness, Consumer Price Inflation and Exchange Rate Depreciation Shocks

This chapter examines whether an unexpected increase in trade-openness has any direct effect on the exchange rate pass-through (ERPT) and if it also impacts the reaction of consumer price inflation (inflation) to exchange rate depreciation shocks. Evidence indicates that an unexpected increase in trade-openness significantly lowers the size of the exchange rate pass-through to inflation. In addition, inflation rises less in the presence of trade-openness than is the case when trade-openness is not considered. Thus, increased trade-openness mitigates the rise in consumer price inflation due to exchange rate depreciation shocks. This evidence implies that if rising trade tensions between China and the United States of America (US) does not reduce the size of the South African trade-openness, the size of the ERPT will be smaller compared to when trade-openness starts shrinking significantly. This implies that the size of the interest rate adjustments based on the projected interest rate path will probably exhibit an upward bias if it does not consider that increased trade-openness reduces the size of the ERPT. Therefore, the conduct of monetary policy may benefit much from the impact of increased trade-openness on the size of the ERPT.

Nombulelo Gumata, Eliphas Ndou

1. Long-Run Growth: The Basic Framework

This chapter focuses at the real economy, introducing important concepts for inter-temporal analysis which play a key role in modern monetary policy analysis. We start with a simple two-period endowment economy with one representative agent. We illustrate the concepts of wealth constraint, inter-temporal optimization with time preferences, marginal rate of substitution (MRS), and the real rate interest. We derive optimality conditions for the inter-temporal path of consumption (the Euler equation) and the natural rate of interest as key equilibrium condition. We show that our endowment can be interpreted as a base line model for a growing economy. As next step, we introduce government spending and taxation and extend our base line model by introducing the labor market, making production endogenous. We derive optimal price setting under monopolistic competition in an economy with heterogeneous firms for the case that all firms can adjust their prices optimally without cost. The general equilibrium conditions for this economy provide an important reference point for later analysis, characterizing the natural level of employment, potential output, and the corresponding natural real rate of interest in the absence of nominal rigidities.

Jin Cao, Gerhard Illing

3. Interaction Between Monetary and Fiscal Policy: Active and Passive Monetary Regimes

This chapter analyses the interaction between monetary and fiscal policy in detail. We want to understand why there is no clear relation between debt and inflation. The current price level and inflation is not determined just by current monetary policy. Expectations about how monetary policy evolves in the near and distant future play a crucial role. Since monetary policy actions frequently have some fiscal impact, the effectiveness of monetary policy also depends on the response of fiscal policy. With government debt usually being denominated in nominal terms, movements in the price level may have substantial impact on the real value of debt. The real value erodes in periods of hyperinflation; it increases in periods of deflationary spirals. We distinguish between different regimes, depending on who is the active player. In one regime, fiscal policy automatically adjusts such that monetary policy is allowed to control inflation. Here monetary policy is active, free to pursue its objectives, with fiscal policy assumed to be passive, being constrained by central bank actions. However, there can also be an alternative regime, with active fiscal and passive monetary policy.

Jin Cao, Gerhard Illing

18. The Jealous State and the Future of Money

Virtual money has given rise to a classic asset bubble, but does it hold out realistic hopes that society can reclaim money? It faces numerous obstacles. The modern state is a jealous god. It combats obstacles to the scope of its powers, as seen in its campaigns against cash, gold and cryptocurrencies.

Robert Pringle

3. The 1920s: Lessons from Weimar

World War I delivered a body blow to the world political and monetary order. The twentieth century witnessed various struggles to recover from that dislocation. The 1920s showed there could be no simple reconstruction of the pre-1914 order. In Germany the decade is notorious for its experience of hyperinflation and the dispute over war reparations. Despite a recovery, its economy was not strong enough to withstand the shocks of the Wall Street crash and the Great Depression. However, some thoughtful economists drew important lessons from its experiences and these would have a major impact on the formation of our contemporary world. There were also lessons that could have been drawn from the time but were not.

Robert Pringle

Chapter 13. Economic Scale, the United Nations Membership Dues, and Shares of the World Bank

This chapter explains the role of a country’s economic scale in its United Nations’ membership dues and shares in the World Bank. It starts with an introduction of the rules determining UN membership dues. In principle, UN membership dues are allocated in proportion equal to the proportion of each country’s GDP. However, per capita GDP is also used to determine preference concession. The chapter continues to explain how China’s UN membership dues have changed over time and shows that the choice of method—PPP or exchange rate—significantly affects the amount of membership dues paid by China. Finally, the authors discuss the payments to international financial institutions and voting rights, showing that a country’s decision-making power is related to its contribution.

Xuguang Song

Chapter 2. The Global Financial System’s New Tool: Digital Money

The developments in information and internet technology have led to profound changes in the global financial system. In the new financial system, modern financial instrument are used more than conventional money and financial instruments. With the emergence of new financial instruments, economic and financial crises were experienced in both money and capital markets and significant structural problems were observed in the economy. Those who believed that the financial system caused the crisis of 2008 were in search of a new financial system. Satoshi Nakamoto, about one and a half months after the crisis with encryption technique invented a highly reliable currency that eliminates intermediary service as a solution to many problems caused by real money, which allows monetary parties to conduct their transactions directly. Cryptocurrency technology aims to make transactions reliable and provide money control with the encryption technique. Due to the high security encryption technique of the network structure it is not possible to infiltrate into the system. In addition to being reliable, the new currency recently has been more effective as an investment tool rather than being a medium of exchange in daily life anywhere in the world. In order to increase the use of cryptocurrencies serious infrastructural preparation is needed. Therefore, its use for investment purposes has become widespread. The use of cryptocurrencies as a financial instrument and their impact on the money and capital markets remain to be seen.

Faruk Dayi

Chapter 13. The Linkage Between Cryptocurrencies and Macro-Financial Parameters: A Data Mining Approach

Digital currencies have increased their effectiveness in recent years and have started to see significant demand in international markets. Bitcoin stands out from the other cryptocurrencies in considering the transaction volume and the rate of return. In this study, Bitcoin is estimated by using a decision tree method which is among the data mining methodology. The variables used in the decision tree created in the estimation of Bitcoin are the S&P 500 stock index, gold prices, oil prices, Euro/Dollar exchange rate, and FED Treasury bill interest rate. When the experimental results were examined, it was observed that the decision tree C4.5 algorithm was an appropriate method with the correct classification percentage of 73% in estimating the direction of Bitcoin. Also, the results obtained from the decision tree show that Bitcoin is related to S&P 500 index among macro-financial indicators similar to the results of econometric models used in the literature.

Arzu Tay Bayramoğlu, Çağatay Başarır

Application of Principal Component Analysis for Assessment the Behavior of Knowledge Management

Most of the knowledge is first published in various types of journals in the form of articles. Better manage the knowledge in the form of articles will greatly benefit the development of economics, and society. It is difficult to assess the management of knowledge. Principal component analysis has been used to the knowledge management with the economic data, population data, educational data, research data for two developing countries and two developed countries. It is found that only the first two factors at the most are needed to replace the original variables. Larger fluctuations in the proportion of the loadings for different types of journals to the total loadings are found in the developing countries compared to those in the developed countries. And the largest loading for the journal is almost the same as for the population. The expressions between the factor and the standard formal variable obtained by the principal component analysis can be used to further study the effects of knowledge management on the development of society and economics. the GDP is found have a strong positive relationship with the population, education expenditure, researchers in R&D, the Industrial design applications, the Trademark applications, the Gross enrolment ratio, the Teachers in tertiary education, the Scientific and technical journal articles, different types of journals.

Na Ran

A Century of Israel-Jordan Relations

Israel and Jordan can best be described as “the friendliest of enemies” since the creation of the Jordanian entity in 1921. Both had a common protector—the British Mandatory regime over Palestine; both had a common enemy—radical Palestinian nationalism, initially headed by the Mufti of Jerusalem and after 1968 by the head of the Palestine Liberation Organisation (PLO) Yasser Arafat. In spite of fighting two major wars, in 1948 and 1967, their leaders kept in touch and sought to reach a modus vivendi that finally became a peace treaty signed in 1994 to which both parties adhere to this very day.

Meron Medzini

The West Bank Under Jordan

Although in 1950 the West Bank became constitutionally unified with the Hashemite Kingdom of Jordan under the slogan “Unity of the Two Banks,” no effective integration between them was attained during the nearly two decades of Jordanian rule over the area. Rallied around politically radical parties and increasingly engulfed by the anti-western Nasserist wave, the West Bank Palestinians repeatedly demonstrated their discontent over a host of political issues, such as Jordan’s tight reliance on Britain and the US—demanding an inter-Arab alliance instead—Arabisation of the military, equalising the status of Jerusalem to that of Amman, economic neglect of the West Bank, and most of all democratisation of the political system. Following the repression of all political parties in 1957, the Palestinian grievances assumed a more violent form and closer collaboration with Egypt and Syria. The Hashemite regime indeed managed to survive the tide of Nasserism and growing militancy among the West Bank Palestinians. Nonetheless, with the advent of the Palestine Liberation Organization (PLO) in 1964 and Fatah’s sabotage operations against Israel as of 1965, the Palestinian agitation against the Hashemite monarch grew more loud and militant, culminating in mass demonstrations during the May 1967 Israeli-Arab crisis in support of joining the Nasser-led Arab coalition, which eventually accounted for Jordan’s involvement in the June war and loss of the West Bank to Israel.

Avraham Sela

Composite Nationalism Re-visited

The emergence of distinct Jordanian nationalism has been the result of several processes, but primarily it was intended to encounter the appearance of Syrian nationalism that aimed at annexing Jordan to Syria and Palestinian nationalism that has claimed possession of former mandatory Palestine. The national foundation laid by King Hussein is strong and has survived several domestic and foreign challenges. The concept of Jordanian nationalism and collective identity has moved from “Arabism first” to “Jordan First.” The Jordanian nationalism is the result of the amalgamation of three sources: Islam, Arab history, and family lineage, dating back to the Prophet. Composite Jordanian nationalism in the aftermath of the Arab Spring is stronger than ever.

Alexander Bligh, Gadi Hitman

Chapter 18. Agricultural Credit and Insurance in Nepal: Coverage, Issues, and Opportunities

A majority of Nepalese population lives in rural areas and agriculture is their primary occupation. Growth in gross domestic product (GDP) and development of Nepalese economy mainly depend on growth and development of agriculture sector as most of the Nepalese industries are agriculture-based and export sector is dominated by commodities. The sector has an important role to increase farmer’s purchasing power. The sector has pivotal role to promote off-farm and on-farm employment opportunities as well as maintaining price stability.

Nara Hari Dhakal

Intelligent Water Management System: Smart Approach Towards Sustainability (Smart Water)

Whenever we address India, the Initial thought one can come up with is the population of this country which is going to surpass the China’s population in 2024 and is projected to touch 1.5 Billion; said by UN Official. It is anticipated that India will be the highest populous country along with the fastest growing economy in the world but despite of economic opportunity, India’s infrastructure is very crumbling. India’s immense population makes it terribly vulnerable once it involves water shortage and scarceness. Concerning 330 million individuals within the country currently suffer from regular water shortage problems. India’s economy is basically captivated with its agriculture. Water shortage and drought not solely impact on the agricultural districts but also have a calamitous effect on inflation and economic progress. With a mission to make India Smart, it requires Smart Minds who actively participate in governance and Promote Smart Building Management Systems through Integration, Information and Innovation. Building the foundation of Smart Water is the Need of the Hour and Even the Purpose of this Paper. Analyzing Water with Data Base Management System and Internet of Things to Measure Operations and Financial Controls Intelligently, Zero Percent Wastage, Improve Revenue and Efficiency by means of Advance Metering Infrastructure, Automatic Distribution, Leakage Management, Disaster and Emergency Preparedness, Pressure Regulation and Smart Grid Analytics.

Mohit Saluja

Chapter 14. Trading Network Equation

The trading network is a large and sensitive network. Trading agents’ decision-makings and behaviors on each node will cause the response of the related agents and produce a shock locally in the network.

Zhenying Wang

Chapter 3. Environment Setup

In this chapter we will get more practical and prepare our Raspberry Pi hardware, Bitcoin’s source code, and the C++ compiler toolchain. Our first goal will be to install and configure Raspberry’s operating system, which is a variant of Linux. Afterward, we will setup the environment for both the Bitcoin daemon and the GUI wallet application.

Harris Brakmić

Control of Price Related Terms in Standard Form Contracts in South Africa

Many South African consumers are vulnerable to exploitation through the abuse of non-negotiable and non-transparent price-related standard terms. The common law of contract provides only limited relief in these circumstances. Some potential exists for developing common-law principles, such as those relating to when terms or their enforcement are contrary to public policy, in order to provide greater protection against unfair price-related terms. But the prospects for such a development are not promising, even though the South African Constitution allows courts to develop the common law to give effect to a horizontally-applicable Bill of Rights. By and large, the courts adopt a fairly conservative approach, which generally emphasises sanctity of contract.However, the legislature has been quite active in creating regulatory standards, systems and structures that deal with the control of price-related terms. Notable examples include a general provision in the Consumer Protection Act 68 of 2008, which determines that the price or terms of a consumer contract must not be unfair, and other provisions which prohibit certain terms or misleading practices, or which presume certain terms to be unfair. Unfortunately, the enforcement of consumer legislation by statutory bodies has not been particularly strong.Apart from these general provisions, consumers may also obtain relief against abuse of price-related terms through relying on rules that regulate specific industries. Thus, some success has been achieved in regulating the costs of credit and there are also strong signs of increased intervention in the problematic area of the high costs of electronic communication. Competition law has also proved to be effective in combatting some exploitative practices. Ultimately, the South African experiences indicate that rules aimed against the abuse of price-related standard terms must be backed up by effective enforcement mechanisms, especially where individual consumers lack the ability to enforce their rights.

Jacques du Plessis, Wiaan Visser

Chapter 11. The Role of Infrared Thermal Imaging in Road Patrolling Using Unmanned Aerial Vehicles

In the past few years, the tremendous growth in road network and vehicles has increased the road fatalities at a very alarming rate. Road patrolling is one of the prominent measures to reduce road fatalities. Generally, road patrolling has been done using manned ground vehicles whose performance is highly dependent on environmental conditions. With this in mind, an infrared (IR) thermal imaging-based technique to enhance the object’s detection in poor weather conditions is presented in this study. Moreover, it can be employed in unmanned aerial vehicles (UAVs) for road patrolling in unfavorable weather conditions including total darkness, fog, and heavy rain. The aim of this study is to automate the process of object detection which enhances road patrolling, where it can enforce the traffic safety compliances and provide automatic rescue call facilities in case of remote area fatalities. The proposed approach is comprised of three steps: (a) data acquisition, a dataset of 53 thermograms at various weather conditions has been created; (b) data processing, a thresholding method, morphological operations, and pseudo-coloring have been performed; and (c) results validation, compare the outcomes of proposed methodology with standard approaches. More specifically, the optimal temperature thresholding in conjunction with morphological operations automates the process of object detection, where the pseudo-coloring algorithm is introduced to convert the thermograms into RGB space which enhances the images for better visualization. Consequently, the proposed methodology shows a good accuracy of 83% for object detection in different weather conditions. The methodology can be used with UAVs which enables fast monitoring of recent accidents on remote locations as the clashing of vehicles raises the temperature. Besides, the issues and challenges faced in the thermal-based UAVs are also discussed.

Neha Sharma, A. S. Arora, Ajay Pal Singh, Jaspreet Singh

14. Assessment of Public Acceptance of the Establishment of a Recycling Plant in Salfit District, Palestine

The reduce-reuse-recycle (known as 3Rs) principle needs to be applied in developing countries in order to achieve waste minimization and local environmental goals. This book chapter presents the outcomes of a field study in Salfit district (Northern West Bank, Palestine), which aims at assessing the public acceptance in case of a recycling plant establishment. In Salfit district, almost 98% of the generated waste is collected among urban and rural areas, but until currently, it was disposed to open dumps.The findings of a field survey in Salfit show that 98% of the population assent to the implementation of a recycling facility. Most importantly, almost 84% of respondents claim knowledge of waste source separation. Training may bridge and fill in the existing institutional and financial gaps. Overall, research results find the paths to better communicate with citizens during the application of new waste management systems. Public acceptance levels as investigated and presented in this paper had a direct effect and encouraged private sector to invest in solid waste management that was highly intended by local authorities and is expected to contribute largely to citizens’ well-being and environmental protection.

Majd M. Salah, Issam A. Al-Khatib, Stamatia Kontogianni

Efficient Inspected Critical Sections in Data-Parallel GPU Codes

Optimistic concurrency control and STMs rely on the assumption of sparse conflicts. For data-parallel GPU codes with many or with dynamic data dependences, a pessimistic and lock-based approach may be faster, if only GPUs would offer hardware support for GPU-wide fine-grained synchronization. Instead, current GPUs inflict dead- and livelocks on attempts to implement such synchronization in software.The paper demonstrates how to build GPU-wide non-hanging critical sections that are as easy to use as STMs but also get close to the performance of traditional fine-grained locks. Instead of sequentializing all threads that enter a critical section, the novel programmer-guided Inspected Critical Sections (ICS) keep the degree of parallelism up. As in optimistic approaches threads that are known not to interfere, may execute the body of the inspected critical section concurrently.

Thorsten Blaß, Michael Philippsen, Ronald Veldema

8. Sovereignty and Monetary Integration

This chapter illustrates how monetary theory, especially the concept of the four functions of money (medium of exchange, unit of account, store of value and means of deferred payment), can be integrated into the concept of a hierarchy of nested social institutions and public goods. This approach emphasizes the link between sovereignty and money. Furthermore, it is argued that the introduction of the euro served mainly to integrate the third and fourth function of money (store of value and means of deferred payment). Theories of optimum currency areas (OCAs) that mainly focus on the second function of money (unit of account) and neglect issues of sovereignty are therefore not able to fully explain European monetary integration.

Thilo Zimmermann

Chapter 10. Digitalization of Business Logistics Activities and Future Directions

Currently we are facing the last industrial revolution, industry 4.0, which enables communication between humans as well as machines in Cyber-Physical-Systems (CPS). The concept industry 4.0 was first brought up in Germany. With the promises of the concept and increasing demand in cost effectiveness, flexibility, and sustainability, industry 4.0 has drawn considerable interest globally. The industry 4.0 era will lead to breakthrough chances in the business world. As the technologies of this era enable ubiquitous presence and real time information about each single piece of a process, it has been used in many firms in developed countries for some time. It is apparent that this new era will cause significant changes in our lives. Concepts of this new era such as cyber physical systems and internet of things have already gained considerable interest. Technologies that will be used widespread in the new future offer big opportunities for cost reduction and assessment of operations. Thus, the emerging developments in technology are closely followed especially by the logistics sector. Industry 4.0 involves numerous technologies and related paradigms (Thames & Schaefer, 2016). In this chapter, after a brief description of digitalization and industry 4.0, some main industry 4.0 technologies used in the logistics sector will be explained. Consequently, the advantages and disadvantages, and the possible opportunities and threats for the logistics sector will be discussed. Finally the current situation of logistics firms all over the world and specifically in Turkey will be discussed.

Ebru Beyza Bayarçelik, Hande Begüm Bumin Doyduk

An Optimized, Low-Cost Off-grid Solar System: Design and Implementation

This paper reports on the design and implementation of a low-cost off-grid solar installation system that maximizes the energy production for any given day. Our proposed solution consists of (1) a double axis solar tracker with electric actuators controlled by an Arduino board, (2) an MPPT (Maximum Power Point Tracking) power controller, with a capacity of 20 A, remotely accessible from a smartphone with a dedicated Android application that uses a Bluetooth connection and (3) a remote data logging system that periodically stores the installation data to an online database server using a Wifi connection. The overall cost of the system is about $215 ($72 for the regular and $143 for the solar tracker).

Pape Moussa Sonko, Diery Ngom, Mouhamed Ouesse, Assane Gueye

Chapter 6. Economic Orthodoxy and Emerging Pluralism

This chapter summarizes major steps in the emergence of twentieth-century economic orthodoxy and traces the recent emergence of a new methodological pluralism. To foresee where economics may be going, it is necessary to understand where it came from: particularly the social and technical contexts within which major changes occurred. The economics that emerged during the nineteenth and twentieth centuries was wholly unprepared for a world in which the economy engages in measurable coevolution with nature; yet recent developments indicate the field is adapting to this new world. The chapter concludes with a discussion of economics’ political influence and its implications for the economy of the future.

Fraser Murison Smith

Chapter 5. The Import Substitution Era, 1945–1980: The Consolidation of Interventionism, Financial Repression, and the Slow Way to Industrialisation

Between 1945 and 1980, Colombia operated under the import-substitution industrialisation (ISI) framework. Protectionism against foreign trade and government intervention in the financial sector were the core of the ISI model in Colombia. In practicality, Central Bank assumed the new role of channelling resources from the financial sector to the government, state-owned companies, or favoured business.Why did the economy not mobilise resources towards industry and trade sectors, where mass production technology could be better absorbed? The government’s interventionism in credit allocation preferentially channelled resources towards sectors of low productivity such as agriculture, which ultimately slowed down the structural change. In the early 1970s, the government finally relaxed its interventionism, allowing the full adoption of mass production technology and an economic boom boosted by the industrial sector.

Ivan Luzardo-Luna

A Novel Fair and Verifiable Data Trading Scheme

With the widespread use of smart devices, a huge volume of data is generated every day, which is helpful for device user and device enterprises. However, the data generated by the smart device contains the user’s privacy, and the data is easy to be modified, forged, which requires a suitable scheme to protect the privacy of the data seller, the authenticity of the data, the fairness during the data trading process. In order to solve the problems, we design a novel fair and verifiable data trading scheme by combining hash function, signature, oblivious transfer, smart contract and private blockchain. The hash function is used for data integrity, the signature is used for the source of the data, the oblivious transfer is used for data verification, the smart contract is used for the encryption key trading, and the private blockchain is used as a ledger for the verification record, trading record and user reputation. The performance analysis shows that our scheme has enough features to help users complete data trading, and our scheme provides an extra function, the reputation record of users to reduce the possibility of user being deceived. The security analysis shows that our scheme provides IND-CCA security, anonymity, and has the capability of resisting collusion attack and data seller fraud. The fairness and practicability of the scheme are verified by simulation.

Haiyong Yu, Juntao Gao, Tong Wu, Xuelian Li

Chapter 9. Distribution Channels

This chapter has explained the distribution channels that insurance and takaful companies use. To cater to the needs of all segments of the market, companies explore all the available distribution channels for reaching out to potential clients. Traditionally, full-time exclusive agents marketed the products of a single company. Over time, independent agents and brokers entered the market, advising clients on the most suitable products available from a range of providers. These agents and brokers represent their client (either individual or corporate) in their dealings with insurance and takaful companies. Developments in information technology have opened several new channels of distribution. Use of these new channels—also called additional or alternate distribution channels—is increasing day by day. They include the Internet, banks and direct mail. In bancassurance and banca-takaful, companies use the banking platform to distribute their products. This significantly reduces marketing costs and gives banks the opportunity to earn income from fees.

Adnan Malik, Karim Ullah

Chapter 7. Money and Finance

The financial system controlled by the government developed slowly relative to the West Europe in the imperial time. This characteristic seemed to be carried over into the Soviet financial system where the state budget played the main role in financing and bank financing had only a subsidiary role. This pattern of Soviet finance changed in the mid-1960s. Bank financing expanded using household deposits, while the Soviet government turned to be a net absorber of financial resources. This financial system collapsed eventually because of its low use efficiency of funds. After the collapse, the Russian financial system returned to a standard financial system of a market economy, although a sound financial system is still under construction. The monetary and financial data are fragmental and often incomparable, reflecting all these developments in the Russian financial system.

Yasushi Nakamura

Chapter 6. A Narrative History of UK Business Cycles

This chapter provides a complete historical narrative of UK output fluctuations since 1660. It reviews the standard historical narrative of previous studies and re-evaluates them in the light of new data and research. It provides a complete chronology and considers some of the key drivers of UK business cycles by looking at the whole range of historical macroeconomic and financial data. This includes the role of external factors, and monetary and fiscal policies. The aim of the updated narrative is to highlight potential new research areas.

Nicholas Dimsdale, Ryland Thomas

Chapter 4. Level 3 Assets and Sovereign Exposure

This chapter first revises the state of the art on Level 3 assets, one of the drivers of fragility for the euro area banking system. European authorities have mainly focused on fragility from credit risks, but the global financial crisis highlighted the importance of correctly pricing highly complex and opaque instruments. In this respect, the crisis started a trend towards simplification and transparency, entailing a radical change in banks’ business models. Then the chapter focuses on the linkage between sovereign debt and bank balance sheets. This chapter investigates two proposed options to address this issue: applying non-zero risk weights to sovereign exposures and putting limits on exposures to sovereigns, similar to those in place for other exposures.

Francesca Arnaboldi

Chapter 2. A Roadmap Towards Governing Digital Transformation

In order to take up accountability for governing digital assets and reap the associated benefits, we put forward three crucial board tasks: install, measure and report.

Steven De Haes, Laura Caluwe, Tim Huygh, Anant Joshi

The Resilient Governance of the EU: Towards a Post-democratic Society

The paper aims to highlight the ordoliberal discourse that permeates the public choice in the new European governance. The social market economy remains the key-doctrine of any further strengthening of the EMU, even though the shift towards an institutionalised differentiated integration will bring to a progressive depoliticisation of the public authority and will give rise to disruptive forces. Furthermore, the article will focus on the “multiple Union” (Monetary, Financial, Fiscal, and Political Union) combined with the concept of “resilient economies” as a turning point in conceiving the relationship between capitalism and democracy in Europe. A relationship that subordinates the Keynesian “full employment” objective to the “benchmarking” competitiveness models, export led and deflationary policies. From another angle, this encounters a serious gap of legitimacy and a progressive EU popular disaffection that deal, in a broader sense, with deconsolidation of the classical liberal and representative democratic framework.

Marco Baldassari

Chapter 10. Ideology of the Substance: Solvency II Versus Solvency I and Basel II

The fourth chapter of the second part of this monograph methodologically trashes the ideology of the substance of Solvency II whilst comparing it to Solvency I and Basel II. First, the objectives of all three instruments are compared as methodological trashing involves an investigation into potential contradictions between what an instrument sets out to do and what an instrument actually does.One of the mains point of critique of this chapter are the problems associated with VaR (which could potentially be solved by econophysics) and the freedom of investment as propagated by Solvency II which turns out to be not so free in practice (which could potentially be solved by lower capital requirements for sustainable assets).

Kristina Loguinova

Chapter 3. The Research Approach: CLS

The second chapter of the first part of the monograph concerns the research approach of the monograph: Critical Legal Studies. It posits Critical Legal Studies as a jurisprudential school of thought within broad jurisprudence whilst dealing with its past and present state. When it comes to the present state of CLS, the need is emphasized to modernize (resurrect) CLS and suggestions are made as to how to make Critical Legal Studies more suitable for the examination of a piece of legislation with a continental legal system background.Due to the eclectic nature of Critical Legal Studies, the chapter also describes the main common theme of Critical Legal Studies for this monograph (hostility towards orthodoxy and neutrality accompanied by a preference for the existence of many alternatives) and the mainly employed Critical Legal Studies technique (methodological trashing of ideology—a specific form of critique—accompanied by genealogy). Furthermore, in this chapter, a tailored Critical Legal Studies vocabulary is developed in regards to such concepts as the political economy of law, the good and the evil, values and interests whilst apparently neutral concepts akin the market and specialization are critiqued.

Kristina Loguinova

4. Designing a New Water Future for Israelis and Palestinians

This chapter begins with what a brief description of water management and water governance in each Israel, Palestine, and Jordan, as well as a review of non-governmental and of private organizations involved with water management in the region. It then shifts attention toward a new approach for managing and governing shared water both from a conceptual perspective and then from a specific approach known as the EcoPeace Proposal, which could be applied now, in advance of a Final Status Agreement between Israel and Palestine. It is no surprise that such a proposal has come in for review and critique, the most important of which are presented and then critiqued in this chapter.

David B. Brooks, Julie Trottier, Giulia Giordano

Chapter 5. Opening-Up as the Turning Point Is Shifting from Goods Trade to Service Trade

In the 13th FYP period, China’s further opening-up and the new round of global free trade have formed a historical intersection, which provides an important opportunity for China’s “second opening-up” focusing on service trade.

Fulin Chi

David Audretsch: The Capacity to Design and to Influence a Research Agenda

David Audretsch outstanding production has a pervasive influence in Industrial Dynamics analysis as we all know. The present text discus some lines of his research that have spurred particular interest and influenced many academic works inside the wider group of international scholars active in the field of business dynamics. The aspects of David Audretsch extensive works that are mentioned below are: the impact of small firms’ dynamics on economic efficiency; firms’ start up role in economic growth; turbulence and regularities in industrial structure evolution and the Gibrat approach; interfirm heterogeneity and survival; and policy rationales and its evolution.

Maria Callejón

Chapter 2. Sophistication of China’s Financial System

Since the eruption of global financial crisis, shadow-banking system as a new concept has come to the spotlight of financial circles in China and abroad. In China’s bank-dominated financial system, loans have accounted for the majority of credit creation.

Lijun Fan, Jianfeng Yin

Chapter 8. Rate of Profit as a Monetary Policy Tool for Financial Stability

This chapter provides a fundamental research to find a replacement of the Central Bank of Indonesia (BI) policy rate as a reference rate for the Islamic financial transactions. The replacement of BI policy rate as a reference rate for Islamic banking is important, given that the BI policy rate (noncontractual) has been replaced by the BI 7-day repo rate, which is a contractual rate. The reference rate is determined by the supply and demand of borrowing transaction using the instrument of SBI (Bank Indonesia Certificate) in conventional money markets that are not based on the rate of profit derived from financial transactions in the real sector, which is in accordance with the principles of Islamic economics. The use of Shari’ah Reference Rate as a substitute for BI policy rate as a monetary operation tool is very important in determining the rate of profit for Islamic financial transactions. The reference rate affects the short- and long-term rate of return for Islamic banking transactions, which will determine the price of financing rate, the price of deposit rate, the price of bonds, and the net worth of asset liability management of Islamic banks. The study shows that the use of Shari’ah Reference Rate is expected to create stability in the Islamic financial market and to achieve the equitable distribution of income and wealth in accordance with Maqasid al-Shari’ah.

Trisiladi Supriyanto

17. Bank Guarantees and International Bonds

Guarantees and international bonds are two separate subjects. A guarantee is usually an undertaking given by a person/guarantor as security for a credit facility offered by a creditor/bank to a borrower. An international bond is an undertaking given by a bank or issuer at the request of its customer (contractor/supplier) in favour of a project owner or beneficiary/buyer in another country.

Tarsem Bhogal, Arun Trivedi

3. Methods of Trade

In international markets the situation is often more complex than in local markets. In local markets it is possible that the parties may have known each other for some time and have built a certain level of trust. Trading risk in local markets is much less than in international markets. There are a number of methods of trade and settlement of trade accounts. Details of various methods of trade that are available to buyers and sellers for trading indicating the risks involved and the benefits are discussed in the following pages. Before importers and exporters decide to do business with each other they need to understand and adopt a method suitable to meet their specific needs.

Tarsem Bhogal, Arun Trivedi

5. Bills of Exchange, Collections, Purchasing and Discounting

Bill of exchange: Bills of exchange are widely used in international trade, partly since they are convenient methods of debt collection from traders abroad. Finance may be arranged in a number of ways against bills of exchange, both for the buyer (drawee) and for the seller (drawers). If a bill of exchange has been dishonoured the holder may sue the other parties to the bill.

Tarsem Bhogal, Arun Trivedi

6. Documentary Letters of Credit

There is always an underlying agreement between the principal parties to a trade transaction, often a buyer and a seller. The agreement may be verbal or written in a formal or informal language. Its terms may be simple or complex, as the parties may feel necessary. Such an underlying agreement is referred to as a “sale contract”.

Tarsem Bhogal, Arun Trivedi

7. Letters of Credit: Types

Let us understand letter of credit and its various types with the help of a grid as in Fig. 7.1.

Tarsem Bhogal, Arun Trivedi