Growth of regional financial institutions, Microeconomics

GROWTH OF REGIONAL FINANCIAL INSTITUTIONS:

We find many levels of groupings of nations in the international arena. Groups of countries that share borders often have semi-permanent cooperation agreements on immigration and customs and possess institutions that implement these. Other groupings of countries come together on the basis of and to advance an ethnic, a geographical and or a cultural identity. Institutions like the UN, the World Bank and IMF are global institutions. 

There is a particular type of grouping that is relatively large in terms of country coverage without being global, and one that deploys primarily financial instruments to advance its objectives. These are the Regional Financial Institutions (RFI's) Regional financial institutions are institutions that have financial dealings in a certain region rather than at a global level. For instance, the Asia Development Bank operates to assist financially countries in Asia and the Pacific. An important characteristic of these institutions is that both rich and poor countries are their members. The rich nations are usually donors and the poor the recipients. In other words, these institutions are primarily designed to be agents of development assistance. In some ways, the, RFI's are smaller scale versions of fully global financial institutions (GFIs), particularly the World Bank. The operations of the RFI's and GFI's may sometimes overlap in some countries.

There can exist, theoretically and actually, groups of firms, and groups of countries. There sometimes arise in these groupings, economies of scale as well as economies of scope. The size of the institutions will be determined by marginal costs and benefits of size, which will in turn depend on the specifics of the socioeconomic situation being discussed. Taking the perspective of costs and benefits, of scale and scope, we can ask as to the rationale for the co-existence of RFI's and GFI's, especially when ‘development assistanceresources' may be scarce. If there is such a rationale, is the current mix of RFI's and GFI's optimal? The issue is division of labour between RFI's and GFI's, and how both types of institutions can increase their effectiveness.

Posted Date: 11/9/2012 7:02:45 AM | Location : United States







Related Discussions:- Growth of regional financial institutions, Assignment Help, Ask Question on Growth of regional financial institutions, Get Answer, Expert's Help, Growth of regional financial institutions Discussions

Write discussion on Growth of regional financial institutions
Your posts are moderated
Related Questions
The outer shape of a football can be described via the following equation               Using Matlab, plot the outer shape of a football in  red or orange using a line widt

Fiscal Imbalance: The persistent rise in resource gap has led to a growing volume of public debt. The central feature that emerges is a serious fiscal imbalance, arising from

Suppose that the following equation characterizes the demand for primary education in a developing country X: Q = 100 – 2P Where Q is quantity demanded in years of schooling and

AGRICULTURAL GROWTH AND PRODUCTIVITY TRENDS: Despite a steady decline in the share of agriculture in the Gross Domestic Product (GDP) of India, this sector continues to remain

A city government regulates taxi fares.  It also limits the number of taxicabs (by licensing), and has not changed the limit on cabs for lot of years.  At one time vacant taxis wer

1.  Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs. 2.  There are two demand curves for a pri

Review the following information pertaining to the potato chip industry and answer the questions below in a five to six double spaced page paper (not including title and reference

•Create a demand schedule and a supply schedule for your product.. •Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine

Explain about the duality between direct and indirect utility. Duality between Direct and Indirect Utility: While seen how one can recover an indirect utility function by ob

Pre-Funded Pension: A pension plan in that funds are invested and accumulated throughout an individual's working life in order to pay for subsequent disbursement of pension benefit