The globalization of economic activities that is characterizing many economies raises questions about the future of the nation state. This paper discusses this trend and shows that cross-frontiers spillovers have become more frequent and have increased the need for international agreements and international organizations to deal with them. It concludes that a continuation of current trends would increase the importance of subnational government while reducing (in the economic sphere) the importance of national governments.
, the stock of knowledge of the world is more easily available to all those who can access it.
However, globalization and related technological developments have also brought some costs and problems. For example:
(a) it has been argued that globalization has reduced the relative wage of unskilled workers in industrial countries, thus leading to more uneven income distributions in these countries. See, inter alia, Rodrik (1997) and Wood (1995) ;
(b) the tremendous increase in the volume of trade has made it more difficult for borderauthorities to scrutinize
vigilance remains critical to maintain adequate bank provisioning and capitalization. Directors encouraged the authorities to do their utmost to ensure that the implementation of the new household debt restructuring law does not undermine confidence in the rule of law or financial intermediation. They welcomed the 2010 Nordic-Baltic Memorandum of Understanding on crisis management, and looked forward to further progress in developing bank resolution frameworks in coordination with the relevant cross-borderauthorities.
Directors welcomed the “Estonia 2020
Jon Frost, Gambacorta Leonardo, and Song Shin Hyun
central banks and regulators but also those in charge of competition and data protection. Central banks and financial regulators must work hand in hand with competition authorities and data privacy authorities. Moreover, policies in one country are very likely to affect users in other countries. By coordinating their policies within and across borders, authorities can work to harness the benefits of digital technology and ensure that these accrue to all.
Source : Chen, S., S. Doerr, J. Frost, L. Gambacorta, and H.S.Shin. Forthcoming
International Monetary Fund. Asia and Pacific Dept
percent is channeled through small Money Transfer Operators (MTOs). MTOs continue to face closure of their bank accounts without explanation from correspondent banks and are also prevented from reopening business accounts in other correspondent banks. For a small island state like Samoa, there is the potential that ongoing correspondent banking relationship withdrawal could create financial stability risks, undermine financial inclusion and rocket the cost of remittances. Other consequences include increasing movement of cash-handling across borders.
among global policymakers to maintaining open markets has served so far to mitigate the impact of the recent global financial crisis. Nevertheless, there has been increasing financial fragmentation within Europe, under which banks have run down their cross-border activities. In addition, national authorities have sought to protect their domestic economies and national taxpayers by ring-fencing banks’ capital and liquidity positions to protect them from cross-border developments and the actions of cross-borderauthorities. Given where we are, only a secure and credible
economy’s government could be used to estimate the number of cross border commuters, seasonal, and other short-term workers.
13.20 Also, the borderauthorities in some economies may conduct studies on the economic impact of border crossers and for this purpose collect information on number of daily commuter workers. This information could be useful for estimating the compensation of employees of border workers. The main disadvantage in using data from the borderauthorities is that such a survey is not conducted on a regular basis.
Surveys of embassies and so