Globalisation, the global financial crisis and the state

320 Pages·2013·2.212 MB·English

by  John H. Farrar, David G. Mayes

Globalisation, the Global Financial Crisis
and the State
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Globalisation, the
Global Financial
Crisis and the State
Edited by
John H. Farrar
Emeritus Professor of Law, Bond University, Australia and
Professor of Corporate Governance, University of Auckland,
New Zealand
and
David G. Mayes
BNZ Professor of Finance and Director, Europe Institute;
Joint Director, NZ Governance Centre, University of
Auckland, New Zealand and Visiting Professor, University of
Buckingham, UK
Edward Elgar
Cheltenham, UK • Northampton, MA, USA
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© John H. Farrar and David G. Mayes 2013
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form or by any means, electronic,
mechanical or photocopying, recording, or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number: 2012946683
This book is available electronically in the ElgarOnline.com
Economics Subject Collection, E-ISBN 978 1 78100 943 7
ISBN 978 1 78100 942 0
Typeset by Servis Filmsetting Ltd, Stockport, Cheshire
Printed and bound by MPG Books Group, UK
3
0
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Contents
List of figures vii
List of tables viii
List of contributors ix
Acknowledgement xiii
1 Globalisation, the crisis and the state: introduction 1
John H. Farrar and David G. Mayes
PART I INTERNATIONAL PERSPECTIVES
2 Modernising the state: the New Zealand experience 21
Margaret Wilson
3 Rebuilding state systems post-GFC: the South African case 42
Laurence Boulle
4 Chinese multinationals and the state: an institutional
perspective 72
Xiaohua Yang and Clyde D. Stoltenberg
5 The EU and the member states: Germany and
supranationalism in times of financial crisis 94
Jürgen Bröhmer
PART II COMMERCIAL PERSPECTIVES
6 Corporatisation in Australia: a Queensland perspective 117
Tahnee Booth and Adrian Noon
7 Putting ‘why’ before ‘how’: evaluating the rationales for
partial privatisation of state-owned enterprises in New
Zealand 140
Chye-Ching Huang, Susan Watson and Jenny Chen
8 Public project procurement and the case for public–private
partnerships 172
Michael Regan
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vi Globalisation, the global financial crisis and the state
9 Rethinking the state through the lens of regulatory governance 197
Graeme A. Hodge
10 Developments in central banking after the GFC: central
banks, the state, globalisation and the GFC 218
Louise Parsons
11 The euro crisis 243
David G. Mayes
12 The governance and regulation of sovereign wealth funds and
foreign exchange reserves in a post-GFC world 272
Mohamed Ariff and John H. Farrar
Index 295
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Figures
4.1 China OFDI flow and stock (US dollars million) 73
4.2 Number of Chinese firms investing in OECD and non-
OECD countries 78
8.1 A typical PPP contractual arrangement 176
9.1 The regulatory tools of government 201
9.2 Cumulative annual creation of regulatory agencies (RA)
across 48 countries and 16 sectors over 88 years: 1920–2007 203
11.1 Debt and fiscal balance in the euro area (medians) 252
12.1 Asset values in US$ of sovereign wealth funds, 2011 276
12.2 Foreign reserves of 12 largest holders each with above
US$200 billion 280
12.3 Corporate governance 283
12.4 The governance of SWFs 283
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Tables
4.1 Phases of China’s OFDI policy 76
6.1 Returns to government 121
6.2 GOC financial information and financial performance 125
8.1 Procurement performance, United Kingdom and Australia 183
11.1 Euro area government debt/GDP (%) 251
12.1 Compliance with the Santiago Principles by principle 287
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Contributors
Mohamed Ariff is a Professor of Finance at Bond University, Australia.
Previously, he held the Chair in Finance over ten years and was disci-
pline Head of Finance at Monash University, Australia for six years.
His internationally published scholarly books and peer-reviewed journal
articles on banking and capital markets, liberalisation, exchange rates,
privatisation and tax-compliance costs, all in the Asia-Pacific region, are
widely cited in the respective literature. He has won several competitive
research fellowships. He has worked as a visiting scholar, fellow and pro-
fessor in several universities: Boston, USA; Harvard, USA; Melbourne,
Australia; Tokyo, Japan (twice); and University College Dublin, Ireland
(twice). He served in 2004–06 as the elected President of the Asian Finance
Association. He is a recipient of four Australian Research Council (ARC)
research grants, the latest a large ARC Linkage grant (with two others)
on banking research.
Tahnee Booth is a Principal Treasury Analyst in the Office of Government
Owned Corporations (OGOC) within Queensland Treasury, Australia.
She has worked in OGOC since 2004, primarily on policy, legislative and
governance matters.
Laurence Boulle is Professor of Law at Bond University, Australia and
Adjunct Professor at the University of the Witwatersrand, Johannesburg,
South Africa where he was previously Director of the Mandela Institute
and Issy Wolfson Professor of Law. He has published in constitutional and
administrative law, mediation and alternative dispute resolution (ADR),
and globalisation and investment. He has also conducted a consultancy
practice in negotiation, dispute resolution and conflict management for
over 20 years and has worked extensively throughout Australia and New
Zealand, the Asia-Pacific and Africa. He chaired the advisory council
to the Australian government on dispute resolution policy and practice
and was a part-time member of the National Native Title Tribunal in
Australia. He was awarded the Order of Australia (AM) in 2008.
Jürgen Bröhmer is Professor and Dean of the Law School at Murdoch
University in Western Australia. Previously he was Professor at the
University of New England, USA in 2006, then Head of the Law School
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x Globalisation, the global financial crisis and the state
from 2007–11. He received his law degree from Mannheim University in
Germany and his doctorate and post-doctoral habilitation from Saarland
University in Saarbrücken, Germany where he worked at the Europa-
Institute of Saarland University before coming to Australia. His areas of
expertise are German constitutional, European Union and public interna-
tional law. Jürgen has authored two and co-authored one monograph in
specific areas of public international, constitutional and European Union
law, edited a number of other books, and published numerous articles and
book chapters.
Jenny Chen is a Research Assistant at the Commercial Law Department,
University of Auckland Business School, New Zealand. She has assisted in
various research projects concerned with company and securities law, and
has published in the area of disclosure in securities regulation.
John H. Farrar is Emeritus Professor of Law at Bond University,
Australia.  He is also Professor of Corporate Governance and Joint
Director of the New Zealand Governance Centre at the University of
Auckland, New Zealand. He was Dean of Law at the University of
Canterbury, New Zealand (1985–88), Bond University, Australia (1993–
96) and the University of Waikato, New Zealand (2004–08). Professor
Farrar is the author of a number of books and papers on company and
commercial law and corporate governance. He has also been active in law
reform in the United Kingdom, New Zealand and Australia, and was a
member of the Legislation Advisory Committee of New Zealand (2004–
08). In 2008 he was made an Honorary Life Member of the Australian
Law Teachers Association for services to legal education in Australia and
New Zealand.
Graeme A. Hodge is a Professor of Law and Director of the Centre for
Regulatory Studies, Monash University, Australia. He is a leading policy
analyst on regulation, privatisation and public–private partnerships.
Graeme is an internationally recognised scholar, having published 12
books and 100 papers in management, social and economic policy, public
administration, and regulation. He has worked with the Organisation
for Economic Co-operation and Development (OECD), the European
Commission, the United Nations, the Asian Development Bank and the
Commonwealth Secretariat as well as serving as a special adviser to several
parliamentary committees and inquiries. He has acted as a consultant on
matters of regulatory governance in Australasia, Europe, Indonesia, the
Philippines, China and the United States.
Chye-Ching Huang is Senior Lecturer in Commercial Law, University
of Auckland Business School, New Zealand. She has interdisciplinary
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