IDEAS home Printed from https://ideas.repec.org/p/wef/wpaper/0015.html
   My bibliography  Save this paper

The Political Economy of Global Financial Governance: The Costs of Basle II for Poor Countries

Author

Listed:
  • Stijn Claessens

    (World Bank)

  • Geoffrey R D Underhill

    (University of Amsterdam)

  • Xiaoke Zhang

    (University of Nottingham)

Abstract

The 1990s financial crises triggered many changes to the design of the international financial system, the so-called international financial architecture. While much affected, developing countries have had very little influence on the changes, which the formulation of the new Basle capital accord (B-II) illustrates. The article shows that B-II has largely been formulated to serve the interests of powerful market players, with developing economies being left out. For developing countries, B-II can make domestic financing more costly and raise the costs of and reduce the access to external financing. Importantly, B-II can exacerbate fluctuations in the supply of external financing, an unfortunate outcome, given that developing countries already suffer from volatility.

Suggested Citation

  • Stijn Claessens & Geoffrey R D Underhill & Xiaoke Zhang, 2006. "The Political Economy of Global Financial Governance: The Costs of Basle II for Poor Countries," WEF Working Papers 0015, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
  • Handle: RePEc:wef:wpaper:0015
    as

    Download full text from publisher

    File URL: http://www.worldeconomyandfinance.org/working_papers_publications/working_paper_PDFs/WEF0015.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. repec:mes:challe:v:33:y:1990:i:4:p:57-59 is not listed on IDEAS
    2. Powell, Andrew, 2002. "A capital accord for emerging economies?," Policy Research Working Paper Series 2808, The World Bank.
    3. Beatrice Weder & Michael Wedow, 2002. "Will Basel II Affect International Capital Flows to Emerging Markets?," OECD Development Centre Working Papers 199, OECD Publishing.
    4. Underhill,Geoffrey R. D. & Zhang,Xiaoke (ed.), 2003. "International Financial Governance under Stress," Cambridge Books, Cambridge University Press, number 9780521817325, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mügge, Daniel, 2010. "Amartya Sen's "The idea of justice" and financial regulation," economic sociology_the european electronic newsletter, Max Planck Institute for the Study of Societies, vol. 12(1), pages 10-17.
    2. Dewandaru, Ginanjar & Rizvi, Syed Aun R. & Bacha, Obiyathulla I. & Masih, Mansur, 2014. "What factors explain stock market retardation in Islamic Countries," Emerging Markets Review, Elsevier, vol. 19(C), pages 106-127.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wef:wpaper:0015. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tim Byne). General contact details of provider: http://edirc.repec.org/data/debbkuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.