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The previous two sections have dealt with the main elements of transformation studies and the financial liberalization hypothesis. This section attempts to integrate these two approaches into a framework for the liberalization of the banking sector. [ABSTRACT FROM AUTHOR]

This final chapter summarizes the major findings of the thesis and discusses policy recommendations for banking sector reforms. It also discusses some limitations of the research methodology and the possibility of generalizing the findings. It concludes with some with suggestions for further avenues of research. [ABSTRACT FROM AUTHOR]

In this chapter, the framework and the identified indicators developed in the previous chapter are used to evaluate the liberalization of the banking sectors in India and China. The assessment begins with a qualitative evaluation according to the propositions for liberalizing a banking sector. This is followed by a quantitative evaluation of the process and the results at the sector level. Finally, the overall macroeconomic effects are tested (Table 6). The combined results provide a basis for the discussion of further reform steps in the following chapter. [ABSTRACT FROM AUTHOR]

Transformation studies attempt to explain the trigger, process and results of long-run systemic changes.1 When the transformation in Central and Eastern Europe (CEE) started in 1989, only limited guidance existed on how to manage the transition from a command to a market economy.2 Since then, numerous and often conflicting policy recommendations have been given on how to best manage such transformations. With the benefit of hindsight it is possible to evaluate the validity of these recommendations and assess the historical experience of the transition countries. [ABSTRACT FROM AUTHOR]

Since the seminal works of McKinnon (1973) and Shaw (1973), there has been a considerable body of literature covering the topic of financial liberalization and the importance of the financial sector for the overall economy. A recurring recommendation in these studies is that the direct involvement of the government in the banking sector should be reduced in order to allow the sector to perform its functions better. [ABSTRACT FROM AUTHOR]

Like the Indian banking sector, the banking sector in China is currently undergoing a profound transition.1 Since China will be used to compare the progress and performance of reforms in India, this section attempts to give an overview of relevant aspects of the Chinese banking sector. The focus is on the development of the banking sector, its current structure and the major reforms initiated over the last years. In addition, relevant similarities and differences of the banking sectors of the two countries are discussed, as well as the possibilities and limitations of a comparison. [ABSTRACT FROM AUTHOR]

This chapter gives an in-depth overview of the Indian banking sector and its structural setting. The focus is on the development of the sector since 1947, with special emphasis on the reforms that have taken place since 1991. Furthermore, it examines the structural setting of the Indian banking sector and its political, economic and institutional environment. [ABSTRACT FROM AUTHOR]

A banking sector performs three primary functions in an economy: the operation of the payment system, the mobilization of savings and the allocation of savings to investment projects. By allocating capital to the highest value use while limiting the risks and costs involved, the banking sector can positively influence the overall economy and is thus of broad macroeconomic importance.1 [ABSTRACT FROM AUTHOR]

This study finds that improvement in the child’s and household’s welfare through the intervention of social labeling NGOs is an effective way of combating child labor at an individual level. One of the main factors which could influence the success of labeling NGOs is ‘monitoring frequency’.14 However, this study does not consider ‘monitoring frequency’ as an explanatory variable because of the high collinearity with ‘HH•IsAnybodyInLBLInd’ (Is anybody of the family working in a labeled industry?) and ‘Ind•NGOAssistChild’ (Is the child being helped by labeling NGO?). In the household level analysis, the most important variable is the number of the children under 14 years of age; a household with more children is much more likely to send a child to work than a household with less children. A combination of policies like labeling NGO’s welfare activities, birth control, access to formal credit market, increase of the adult income, and adult education could be suggested from this study to remove a child from the ‘work place’. [ABSTRACT FROM AUTHOR]

It is both evident and a matter of general consensus that the adoption of sound government policies is a precondition for a country's success in achieving sustainable growth and development. Though differences may exist as to what exactly constitutes appropriate policies, there is broad agreement among economists, policymakers and bilateral and multilateral donors that a number of government activities are highly relevant for a country to achieve sustainable growth and welfare. These include the development of an enabling and supportive market environment by guaranteeing secure property rights (building up effective legal and judicial institutions), conducting sound macroeconomic policies, avoiding severe price distortions and ensuring that the country has an efficient but affordable infrastructure. This is a rough description of what is known as the Washington consensus (Williamson (1990)). Furthermore, a state should enable citizens to access core social services, which include primary and secondary education and healthcare, and most important, it should institutionalise checks and balances, above all accountability and transparency within government institutions in general and public service delivery in particular. [ABSTRACT FROM AUTHOR]

Chapter 7 described many examples of how different stakeholders in Tanzania's society undermined the reform process officially adopted with the Economic Recovery Programme (ERP) and the subsequent Economic and Social Action Programme (ESAP or ERP II). Besides civil servants, parastatal companies played an especially crucial role in the rent-seeking economy. As referred to in the opening quote, many of these companies have been real strongholds of inefficiency and embezzlement. This chapter presents additional evidence of the rent-seeking behaviour of parastatals, but from a new perspective. In contrast to Chapter 7, which was organised according to different reform measures, Chapter 8 analyses indicators of rent-seeking support and embezzlement within the parastatal sector, referring to their profit and loss statements, the quality and timeliness of their accounting and the amount of support they obtained. [ABSTRACT FROM AUTHOR]

The question of who opposes reforms is to a large extent rhetorical Every interest group will say they are in favour of reforms, but when it comes down to it, a group will only support certain types of reforms, basically those which do not negatively affect their income. Chapter 5.2 described different rent-seeking strategies that may interfere in the reform process and categorised them into two broad groups: direct and indirect resistance of rent-seekers to reform measures, and rent-seeking activities which take advantage of reform steps and the transition. In the latter case individuals and groups motivated by rent-seeking may also support partial reforms: a temporary rent-seeking opportunity may exist provided that other reform steps have not yet been initiated. [ABSTRACT FROM AUTHOR]

This chapter presents a rent-seeking analysis of the pre-1986 period and lays down the methodology and scope of the subsequent discussion on the major delays, setbacks and costs of the reform process starting in 1986. In particular Sections b) to d) of Chapter 6.2 provide important background information to the analysis of rent-seeking and economic reforms in Chapters 7 and 8. As will be argued, rent-seekers have greatly (even predominantly) contributed to the poor reform records in Tanzania in the 1980s and 1990s. [ABSTRACT FROM AUTHOR]