rafmacalaba/datause-encoder-data huggingface dataset:
|GreTai|Self-assessment and/or external assessment of corporate governance required:<br>•<br>Remuneration committee is mandatory for all listed companies<br>•<br>Independent directors will be mandatory for all listed companies by 2017<br>•<br>Audit committee will be mandatory for listed companies with paid-in capital<br>greater than NT$10 billion by2017|
|---|---|
|Bovespa Mais|Board of directors of at least 3 members; independent members is not obligatory;<br>tag along of 100%, (1) in case of delisting or share acquisition public offer (OPA),<br>100% of economic value, (2) in case of selling the block of control, same price<br>practiced for majorityshareholder|
|WSE NewConnect|Requirement to publish a descriptive report on compliance with the corporate<br>governance rules with the annual report and ongoing reports on violation of the<br>corporategovernance rules|
|BIST ECM|Exemption from corporate governance obligations|

_Source:_ WBG compilation of exchange information.

# **_D. Bridging the Information Gap between Issuers and Investors: The Use of Advisors_**

# 1. Advisor Requirements

Even if disclosure content is not significantly reduced, as is true for most SME exchanges, there are still many challenges to investing in SMEs, because of their often riskier nature, less extensive corporate experience, and typically larger information asymmetry between issuers and investors. Bridging this information gap is critical for an SME exchange’s success. Building the exchange so that issuers find their footing, while providing adequate information and protection to investors, is key.

Using nominated or authorized advisors is an important way to help bridge these information gaps. These are institutions that are regulated by the SME exchange and serve two main roles, both of which help investors decide whether a company is a good one in which to invest. The advisors:

- Assist companies in the various steps to an offering and oversee that the SME complies with ongoing listing requirements after the listing. Advisors assist SMEs, many of which are unprepared, to meet listing, disclosure, and governance requirements. They help prepare and approve the information documents.

- Assist investors by providing a stamp of approval for an SME’s suitability to access the market. Advisors need to support successful companies to preserve their reputations and livelihood. Their support for a company is an indicator to investors that a company is a good investment.

AIM and NewConnect use their advisors most effectively and extensively:

- AIM was the first exchange to use Nominated Advisors, or Nomads. Nomads are highly selective in whom they bring to market since their accountability for ensuring compliance continues long after the IPO, and their reputation hinges on this.

- NewConnect’s use of Authorized Advisors (AAs) has helped bring companies to market. The advisors are regulated and have to have successful listings. If they support too many SMEs that are not successful, they will lose their license.

27
23 With the specified system of six variables we examined the response of per capita GDP to multiple shocks with the Generalized Impulse Response Function. A one standard deviation shock to public capital (1.7 percent of GDP) that at the end of the simulation period (10 years) implies a higher public capital stock by almost 7 percent is associated with a 5 percent higher GDP (Figure 17); this fact implies a long-run elasticity of about .7, almost identical to the long run elasticity estimated by the single-equation (ARDL) method. This approach, however, has the advantage of allowing examination of the impact of this shock on other variables. For instance, such a shock to public capital is also associated with an increase in private capital of almost 5 percent by the end of the forecasting horizon (Fig.18) verifying some degree of complementarity between both types of capital.

A shock to private capital stock, representing a rise of six percent (in the long run) is associated with a higher GDP by 4 percent (Fig. 19). This would imply a long-run elasticity of about .6, much higher than the one estimated by the ARDL.

# Figure 17

<!-- Start of picture text --> Generalized Impulse Response(s) to one S.E. shock in the equation for<br>LKSTPUBP<br>0.10<br>0.08<br>0.06<br>0.04<br> LGDPPC<br>0.02<br>0.00<br>-0.02<br>-0.04<br>0 1 2 3 4 5 6 7 8 9 10<br>Horizon<br><!-- End of picture text --> Figure 18 <!-- Start of picture text --> Generalized Impulse Response(s) to one S.E. shock in the equation for<br>LKSTPUBP<br>0.10<br>0.08<br>0.06<br>0.04<br> LKSTPRPC<br>0.02<br>0.00<br>-0.02<br>-0.04<br>0 1 2 3 4 5 6 7 8 9 10<br>Horizon<br><!-- End of picture text --> showed temporary deviations from the equilibrium relationship returning after a few years. We arbitrarily eliminated the first one and remained with a single cointegrating vector.
- 15 _-_

PAKISTAN: The domestic indirect tax structure in Pakistan did have a protection component which was addressed in various Bank studies. The domestic sales tax at one stage applied at different rates to domestic and imported goods and/or exempted a large class of domestic goods while taxing their imported counterparts. The excise tax had the opposite effect, of reducing protection, by applying only to domestic production of some goods. While the sales tax rates have been equalized the other features of the indirect tax system still need to be corrected.

JAMAICA: A study financed by the US-AID recommended a VAT (General Consumption Tax) for Jamaica which would consolidate the various internal levies into one broad based tax and treat imports and domestic goods similarly. While the study did not mention it, it was indicated elsewhere that some domestically produced goods were subject to the excise tax while corresponding imports were not.

INDONESIA: A limited VAT at the manufacturer's level was introduced by the Government in 1985 as part of a comprehensive tax reform and subsequently expanded to the wholesale level. The potential protective effect of the VAT was avoided by the symmetric treatment of imports and domestic goods under the VAT.

ZAMBIA: Zambia illustrates some of the complexity of identifying the protective effect of domestic indirect taxes. Prior to changes in 1985, the sales tax in Zambia applied to all imports (final and intermediate goods) but only to some domestic final goods. Moreover, imports were taxed at 12.5% while domestic goods were subject to a 10% sales tax rate. This structure of the sales tax was protective in three ways: (a) the rate differentiation protected all domestic import competing firms that were subject to the sales tax by an additional 2.5%, (b) domestic final goods not subject to the
Table 18: Medium-term impacts of _Mais Educação_ on 2007 dropout rates

|High dropout rates<br>in 2007|Medium dropout<br>rates in 2007|Low dropout<br>rates in 2007|
|---|---|---|
|Dependent variable|||
|(1)|(2)|(3)|
|Panel A: Impacts on fifth-grade v|ariables||
|Dummy_Mais Educação_* year 2011<br>0.614*<br>(0.312)|1.446<br>(0.969)|1.517<br>(2.033)|
|Rsquared<br>0.625|0.686|0.769|
|Observations<br>780|730|642|
|Dummy year 2011<br>YES|YES|YES|
|School fixed effects<br>YES|YES|YES|
|Panel B: Impacts on ninth-grade v|ariables||
|Dummy_Mais Educação_* year 2011<br>–0.448|2.059|1.472|
|(0.838)|(1.519)|(3.417)|
|Rsquared<br>0.601|0.746|0.765|
|Observations<br>672|654|552|
|Dummy year 2011<br>YES|YES|YES|
|School fixed effects<br>YES|YES|YES|

_Sources:_ Authors’ calculations using MEC/FNDE administrative data, _Prova Brasil,_ School Census, and INEP.

_Note:_ Treatment group are schools that joined _Mais Educação_ in 2008 and remained in the field until 2011, divided into groups according to their dropout rates level in 2007. This table reports coefficients from the ordinary least squares estimation of equation (1) in the paper, where the dependent variable in all columns is the dropout rates. In column (1) we show results for treated schools with high dropout rates in 2007, in column (2) schools with medium dropout rates, and in column (3) schools with low dropout rates. All variables are at school level. ***significance at the 1% level; **significance at the 5% level; *significance at the 10% level. Robust standard errors, clustered at school level, are reported in parentheses. All regressions include school fixed effects and time dummies. All regressions are weighted by propensity score matching weights. Panel A reports these estimates for schools from the fifth-grade sample. Panel B reports these estimates for schools from the ninth-grade sample.
**Appendix 1: Data Sources**

# **_Bihar (India) 1807_**

|Expenditure class|Percentage of<br>population|Average monthly<br>expenditure per capita (in<br>rupees)|Average<br>expendi<br>mean|monthly<br>ture relative to|
|---|---|---|---|---|
|1|15.24|0.68||0.43|
|2|4.85|0.83||0.53|
|3|16.18|0.88||0.56|
|4|6.68|0.97||0.61|
|5|8.52|1.03||0.65|
|6|10.39|1.42||0.90|
|7|8.91|1.56||0.99|
|8|11.21|2.06||1.30|
|9|9.89|2.64||1.67|
|10|8.13|4.45||2.82|
|_Total_|_100_|_1.58_||_1_|

**Income distribution data** : A household census survey was made by a British official (Hamilton) of Patna city and 16 rural districts in the region surrounding it, all of which we take to be representative of Bihar. He recorded family size and monthly family expenditures in rupees. The data are summarized by approximate deciles (Martin 1838).

**Population and area:** Population of 3,362,280 and area in km<sup>2</sup> from Martin (1838).

**Urbanization rate:** We use the rate for India (Jean-François Bergier and Jon Mathieu 2002: Table 1, 9-12% for 1800, based on Bairoch and Chandler).

**Mean income in $PPP** : 1820 GDP per capita in 1990 international dollars (Maddison 2001: 264).

# **REFERENCES**

- Bergier, Jean-François and Jon Mathieu (2002), “The Mountains in Urban Development: Introduction,” paper presented at the _IEHA XIII World Congress_ , Buenos Aires, July 22-26, 2002.

- Maddison, Angus (2001), _The World Economy: A Millennial Perspectives_ , Paris: OECD Development Centre.

- Martin, Robert M. (1838), _The history, antiquities, topography, and statistics of  eastern India. Surveyed under the orders of the supreme government, and collated from the original documents at the E.I. house_ , London: W. H. Allen and Co.

35
percent. All banks are above the minimum common equity ratio (4.5 percent), Tier 1 ratio (6.0 percent), common equity plus conservation buffer ratio (7.0 percent), and total capital adequacy ratio (8.0 percent). Only one bank has a Tier 1 ratio slightly lower than the minimum of 8.5 percent for the Tier 1 plus conservation buffer, and only one other bank has a ratio that is close to that minimum (9 percent). In addition, all banks in the country have leverage ratios well above the Basel III minimum of 3 percent (6.1 percent to 43.6 percent), or a weighted average of 10.3 percent.

**Chart 17. Basel III requirements and the banks supervised by the NBRM (end of 2010)**

<!-- Start of picture text --> Tier 1 ratio<br><!-- End of picture text --> Source: NBRM As was illustrated in the introduction, at the end of 2008 the NBRM has quantified the acceptable liquidity position of banks. The two liquidity ratios correspond to a certain degree to the liquidity standards defined with Basel III. There will be a necessity for further calibration of the existing LR30 and LR180 with the liquidity coverage ratio and the net stable funding ratio. However, the fact that banks are already required to maintain certain levels of liquidity will considerably lessen the regulatory burden for adequate implementation of the new Basel III liquidity standards.

# **IV. Conclusions**

It is quite difficult to measure the effectiveness of the macroprudential toolkit employed by the NBRM and to isolate its independent impact, since it was undertaken in conjunction with other stabilization measures. In addition, the macroprudential measures are of recent nature, and there is still not enough theory and experience worldwide against which to assess contribution. Nevertheless, this section attempts to summarize their quantitative and qualitative impact. The quantitative approach measures the impact of the employed macroprudential instruments through an assessment of the tendencies of the variables targeted by these instruments. The qualitative approach is focused at identifying and understanding the key experiences and lessons learned by the NBRM in the previous period.

25
must also be prepared to apply sanctions. This is the lesson from East Asian industrial policies (Westphal 1990).

An additional difficult problem concerns the distributional consequences of price fluctuations of basic necessities. Volatile world prices pose a challenge to any country, but particularly small developing countries like Senegal in which these products are important for both local production and consumption. Rising prices are a boon to producers but entail hardships to low-income consumers who spend a high share of their income on these essential consumer items. Conversely, falling prices benefit consumers but can lead to layoffs and even bankruptcies for local producers. Senegal faces two separate policy issues relating to pricing, which should not be confused but are not always easy to separate in practice: 1) whether to raise or lower domestic producer and consumer prices relative to world levels and 2) whether to smooth domestic price fluctuations. The issue is further muddied by the fact that developed country policies are often highly protectionist and have major impacts on world market prices. This last point does not alter the fact that Senegal is a price taker and cannot do anything about larger players’ policies. Moreover, just because the US and the EU, among others, protect domestic interest groups does not imply that Senegal should emulate them.

This paper analyzes the performance and pricing in the sugar, vegetable oil and wheatflour-bread industries, assesses current policies and make recommendations for policy reforms that aim to serve the general interest of Senegalese society.

# **2. Methodology**

As in our previous work (Golub and Mbaye 2002), we combine qualitative and quantitative approaches. The quantitative analysis examines domestic and international prices and trends in production, consumption, exports (if any) and imports. The qualitative analysis discusses the history and recent performance of these sectors in Senegal. We focus in particular on the trade and other policies applied to these sectors. We attempt to discern how policies are actually practiced as well as their statutory descriptions.

We rely on three types of information:

1.  Press reporting and previous studies on the industries in question, 2.  Statistical data on prices, production and trade volumes, costs of production etc.,

3. Interviews with key actors in the industries: officials, entrepreneurs, retailers, etc.

# **3. Senegal in the World Market**

As a very small developing country, Senegal is a price taker and is subject to trends in the world market in each of the three industries under study. Even in peanut oil, where it is one of the world’s largest exporters, Senegal currently accounts for a small share of world output, though it has contributed more than one-third of total exports and could do so again. Commodity prices are generally highly volatile, and sugar, wheat and vegetable oils are no exceptions. Volatility is driven by shifts in supplies and demands in the major producing and 3
# LISTENING TO **FIRMS:**

## Assessing Constraints to Private Sector Development through Firm-Level **Surveysl**

The integrated approach to private sector development focuses attention on binding constraints to enterprises, disaggregated by critical firm characteristics. CECPS's conceptual framework divides these constraints into four categories:

- 1) distorted incentives and rationing of resources; 2) excessive government production, regulation and consumption, and associated crowding out;

- 3) weak support systems; and 4) economic uncertainty.<sup>2</sup>

In order to identify constraints to and priorities for the development of a country's private sector, we recommend the use of the Private Sector Assessment (PSA).

Private Sector Assessments PSAs are intended to contribute both to the policy dialogue with borrowing governments and to the formulation of country assistance strategies. They generate the information and analysis essential to formulating a strategy to alleviate the constraints to private sector development (PSD). Generally, PSAs cover three areas:

- (i) analysis of the private sector and its role in the economy;

- (ii) the policy, institutional and other factors that limit efficient private sector economic activity; and

- (iii) priority areas for government actions and World Bank Group assistance.

Specifically, the focus of a PSA should be determined by:

- collecting and reviewing existing knowledge about the private sector through relevant documents and discussions with operational staff. In the process, learn what experts currently understand to be the priorities for promoting PSD, and

- identifying gaps in knowled& on key issues and on the role and structure of the private sector.

' This paper was prepared by Andrew H. W. Stone for use in the Seminar on "Tools for Private Sector Assessment." Portions of this paper have appeared in other CECPS works. CECPS is the Public Sector Management and Private Sector Development Division of the Country Economics Department of the World Bank. The findings, interpretations, and conclusions are the author's own. They should not be attributed to the World Bank, its Board of Directors, its management, or any of its member countries.

**2** These categories, combined with specific firm characteristics such as size or economic sector can be used as a sorting devise to organize thinking about obstacles to the growth of private firms. See chapter 3 of Levy and Rueda Sabater. _Develcping the Private Sector: The World Bank's Experience and Approach_ (Washington: The World Bank, 1991)
only taken into account by sophisticated consumers. More formally, the following testable implications can be derived:

1. The staff of financial institutions are knowledgeable about the financial product but will only provide customers with information to contract it, without disclosing its cost voluntarily. As a result, both naïve and sophisticated customers are aware of all requirements to open a savings account or contract a loan. In addition, sophisticated customers ask about fees such as the minimum balance fee on deposit accounts or the late payment fee in credit products and thus learn about such costs while naïve customers do not ask about them and thus remain uninformed.

2. Naïve and sophisticated customers are offered the same product, but naïve customers will earn less net interest on savings and pay more in total for credit as they also pay fees.

In Section 6 we test these predictions more formally.

# **4. Experimental Design**

The audit study was conducted in collaboration with the Banco de la República (Central Bank of Colombia) and the Superintendencia Financiera de Colombia (Financial Superintendency). Bogotá (capital) and two other cities (Tunja and Pereira, with populations of 190,000 and 470,000 respectively, were selected for the study. A radius of 1.5 km was drawn from the business center, and a census of every financial institution inside the circle was conducted. We found a total of 64 distinct institutions across these 3 cities. For the purposes of the analysis we differentiate between audit studies conducted in the capital Bogota and other areas.

Credit auditors requested a 12-month loan for a household expenditure, preferably with monthly installments. The expenditures included house repairs, medical expenses and children’s school supplies, among others. Savings auditors were assigned an amount of 1,500,000 pesos (515 USD) that they wanted to deposit.<sup>14</sup> Since we wanted to capture all the information and materials that staff would provide to prospective clients up until the signing of the credit contract or opening of a savings account, a visit by the auditor was deemed complete when either the institution refused to open the account or granted the loan, or when the auditor was asked to sign the contract. Because credit auditors had to reside locally, we could not use professional auditors. Instead, we recruited 39 auditors from low-income households living in the study locations. Table 2 reports the characteristics of auditors. There were 19 men and 20 women, with

> 14 The loan maturity and savings amount were suggested by the regulators as the modal loan maturity and a typical balance in a savings account. The local currency was converted to USD using the prevailing exchange rate during the study period.

8
Figure 4: Comparison of Select ACS and SRS Parameters over 10,000 Simulations <!-- Start of picture text --> 4200<br>SD of Population Estimates' Distributions by Method<br>3600<br>3000<br>2400<br>ACS, C=10 1800<br>ACS, C=5<br>1200<br>ACS, C=2 SRS<br>ACS, C=1 600<br>0<br>4% 5% 9% 11% 16% 21% 27% 33% 51%<br>Total Squares Enumerated (Fieldwork Effort)<br><!-- End of picture text --> _Note: Authors’ calculations based on 10,000 simulation runs. Fieldwork effort (x-axis) represents the mean share of block areas enumerated over all runs; the standard deviation (SD, y-axis) is the standard deviation of all 10,000 of the population estimates for each case._

# **ACS and Stratified Random Sampling**

In many cases additional information may be available that allows for stratifying a geographic area before sampling. With business activity (including informality), stratification variables that may be useful include land-use categorization, population density, road density, vegetative cover, nighttime lights, or any geographically mapped variable where one category is significantly more likely to intersect with business activity. In what follows, we use a nighttime lights satellite imagery to generate a stratification variable. Nighttime lights are readily available to the public and have been used widely as predictors of concentrated economic activity (Donaldson and Storeygard, 2016). Figure 5 shows the result of a binary stratification using nighttime lights overlaying the establishment locations, with higher concentrations shaded. Despite the relatively low resolution of the lights data at 500m resolution the strata are very 18