rafmacalaba/datause-encoder-data huggingface dataset:
The role of factoring for financing
            small and medium enterprises
Around the world, factoring is a growing
            source of external financing for corporations and small and
            medium-size enterprises (SMEs). What is unique about
            factoring is that the credit provided by a lender is
            explicitly linked to the value of a supplier's accounts
            receivable and not the supplier's overall
            creditworthiness. Therefore, factoring allows high-risk
            suppliers to transfer their credit risk to their
            high-quality buyers. Factoring may be particularly useful in
            countries with weak judicial enforcement and imperfect
            records of upholding seniority claims because receivables
            are sold, rather than collateralized, and factored
            receivables are not part of the estate of a bankrupt SME.
            Empirical tests find that factoring is larger in countries
            with greater economic development and growth and developed
            credit information bureaus. In addition, the author finds
            that creditor rights are not related to factoring. The
            author also discusses reverse factoring, which is a
            technology that can mitigate the problem of borrowers'
            informational opacity in business environments with weak
            information infrastructures if only receivables from
            high-quality buyers are factored. She illustrates the case
            of the Nafin reverse factoring program in Mexico and
            highlights how the use of electronic channels and a
            supportive legal and regulatory environment can cut costs
            and provide greater SME services in emerging markets.
Quantitative analysis of crisis:
            crisis identification and causality
Studies use different conceptual and
            operational definitions of crises. The different crisis
            identifications can lead to inconsistent conclusions and
            policy formulation even if the same analytical framework is
            applied. Also, most studies focus on only a few types of
            crises. This narrow focus on crises may not capture the
            multidimensionality of crises. Seven crisis types are
            analyzed, namely (1) liquidity type banking crises, (2)
            solvency type banking crises, (3) balance of payments
            crises, (4) currency crises, (5) debt crises, (6) growth
            rate crises, and (7) financial crises. Crisis data were
            collected from 15 emerging economies in 1980-2002 on a
            quarterly basis. The crisis identification exercise finds
            that multidimensionality in which different crisis types
            occur in short periods is one of the most important
            characteristics of recent crises. Further, the Granger
            causality tests in five Asian economies (Indonesia, the
            Republic of Korea, Malaysia, the Philippines, and Thailand)
            find that currency crises tend to trigger other types of
            crises, and therefore exchange rate management is essential.
Institutional and policy analysis of
            river basin management: the Brantas river basin, East Java, Indonesia
The authors describe and analyze an
            unconventional approach to river basin management in a
            developing country undergoing rapid economic, political, and
            institutional change. The founding of the Brantas River
            Basin Management Corporation (Perum Jasa Tirta I - PJT 1), a
            national state-owned company for river basin management,
            initiated an emphasis on river basin management to operate
            and maintain existing infrastructure, plan and implement the
            allocation of water, and address problems that affect
            basin-level water resources. The Brantas River basin is
            located within the province of East Java in Indonesia. It
            has an area of approximately 11,800 square kilometers and
            makes up 25 percent of East Java's land area. The
            basin's population, which amounts to nearly 15 million,
            has increased by 53.4 percent over the past 30 years and
            represents 42.4 percent of East Java's population with
            a density of 1,249 per square kilometer. A shift has taken
            place in Indonesia since the mid-1990s from emphasizing
            infrastructure development to strengthening institutional
            aspects (hydrology, flood fighting, flood warning, flood
            management, and so on). The institutional arrangement for
            water resources management in the Brantas basin through a
            state-owned corporation is an interesting model. PJT I has
            achieved results in implementing a reasonably good system of
            water allocation and management and a reliable flood
            forecasting system, as well as maintaining major
            infrastructure in fairly good condition. Managing water
            quality, catchment conditions, and the river environment,
            however, are the responsibility of many entities, and there
            is need for greater coordination and authority to address
            these issues.
Institutional and policy analysis of
            river basin management: the tarcoles river basin, Costa Rica
This paper describes and analyzes the
            effort to institute river basin management in the Tárcoles
            basin of Costa Rica. Located in west-central Costa Rica, the
            Tárcoles basin represents 4.2 percent of the nation's
            total land area, but is home to half the nation's
            population and the metropolitan area of San José, the
            nation's capital and largest city. Water management
            issues include severe water pollution resulting from sewage,
            industrial waste discharges, agricultural runoff, and
            deforestation. In the early 1990s a locally-initiated effort
            established a river basin commission for the Río Grande de
            Tárcoles (CRGT), which was supported by the central
            government's environment ministry. Since the late
            1990s, however, the DRGT has struggled through changes of
            leadership, inconsistent support from the central
            government, and waning participation from basin
            stakeholders. Despite several programs to arrest
            deforestation and encourage better industrial and
            agricultural practices, the basin's water problems
            continue largely unabated. The Tárcoles case is instructive
            about both the possibilities and the fragility of efforts to
            establish integrated water resource management at the river
            basin level.
Keeping animal spirits asleep: the
            case of Chile
Chilean legislation is quite
            conservative, especially compared with international
            practice. However, its application has not been free of
            criticism, and it proved necessary to seek mechanisms that
            combine limitations set forth in the GATT/WTO regulations
            and others self-imposed by Chilean law. Legislation on
            antidumping measures was introduced in Chile in 1992. The
            Distortions Commission has recommended and the President has
            adopted such measures on just six occasions, of which two
            correspond to extensions of existing measures. Legislation
            on safeguard measures was introduced in 1999. In the
            1999-2002 period, seven safeguard measures were adopted. The
            traditional agricultural sector was the main user of the
            measures, and no measure was in place for more than 12
            months. The context in which the Commission was created in
            1981 and the type of measures adopted by this entity support
            the idea that the objective of the Commission was to
            alleviate the political pressures generated by the difficult
            economic situation rather than to correct problems
            originated by the price distortions of goods. In the second
            half of the 1980s, the Commission supported the
            liberalization process that started in 1985. Adopting
            safeguard legislation in 1999 helped to gain approval of
            further tariff reductions from 11 percent to 6 percent.
            During the decade of the 1990s and until the present day,
            the philosophy of minimal use to further liberalization has
            been maintained. The legislation has undergone modifications
            to adjust the instruments used to support the economic
            opening and international commitments.
Scrutinizing public expenditures:
            assessing the performance of public accounts committees
In 2002, David McGee wrote a
            comprehensive report on two important elements in the system
            of public financial accountability, namely the office of the
            Auditor General and the parliamentary oversight committee
            commonly referred to as the Public Accounts Committee (PAC).
            The purpose of the present paper is to deepen McGee's
            analysis of PACs. In particular, the authors define PAC
            success and identify those factors that affect PAC
            peformance. They use data that were collected by the World
            Bank Institute in 2002, when a survey questionnaire was sent
            to 51 national and state/provincial parliaments in
            Commonwealth countries in Asia and Australasia, and Canada
            and the United Kingdom. The authors find that the
            institutional factors which most account for the success of
            the PACs are the focus on government's financial
            activity rather than its policies, the power to investigate
            all past and present government expenses, the power to
            follow up on government action in response to its
            recommendations, and its relationship with the Auditors General.
Pesticide poisoning of farm workers
            : implications of blood test results from Vietnam
In this paper, the authors have assessed
            the incidence and determinants of pesticide poisoning among
            rice farmers in Vietnam's Mekong Delta. Blood
            cholinesterase tests suggest that the incidence of poisoning
            from exposure to organophosphates and carbamates is quite
            high in Vietnam. Using the medical test results as
            benchmarks, the authors find that farmers'
            self-reported symptoms have very weak associations with
            actual poisoning. Regression analysis of blood tests reveals
            a lower incidence of poisoning for farmers who avoid the
            most toxic pesticides and use protective items. The authors
            also find very large provincial differences in poisoning
            incidence after they control for individual factors. The
            results highlight the potential importance of negative
            externalities, and suggest that future research on
            pesticide-related damage should include information on local
            water, air, and soil contamination.
Global monetary conditions versus
            country-specific factors in the determination of emerging
            market debt spreads
The authors offer evidence that U.S.
            interest rate policy has an important influence in the
            determination of credit spreads on emerging market bonds
            over U.S. benchmark treasuries and therefore on their cost
            of capital. Their analysis improves on the existing
            literature and understanding by addressing the dynamics of
            market expectations in shaping views on interest rate and
            monetary policy changes and by recognizing nonlinearities in
            the link between U.S. interest rates and emerging market
            bond spreads, as the level of interest rates affect the
            market's perceived probability of default and the
            solvency of emerging market borrowers. For a country with a
            moderate level of debt, repayment prospects would remain
            good in the face of an increase in U.S. interest rates, so
            there would be little increase in spreads. A country close
            to the borderline of solvency would face a steeper increase
            in spreads. Simulations of a 200 basis points (bps) increase
            in U.S. interest rates show an increase in emerging market
            spreads ranging from 6 bps to 65 bps, depending on debt/GDP
            ratios. This would be in addition to the increase in the
            benchmark U.S. 10 year Treasury rate.
Reforming the posts : abandoning the
            monopoly-supported postal universal service obligation in
            developing countries
The monopoly-supported universal service
            obligation (USO) is usually defended on the grounds that the
            monopoly allows for cross-subsidy in letter services that in
            turn allows universal access to a service of great
            importance to all. The author argues that letter delivery
            (as opposed to other services that may be provided by post
            offices) is not in universal demand in poor countries, that
            the size of the market in developing countries is such that
            USOs could not be met under the monopoly model, and that the
            monopoly carries heavy costs for sector development and
            consumer welfare. He proposes in the place of the postal USO
            a competitive approach involving universal access to a range
            of services that poor people have a need to access.
            Regarding reform of the incumbent, the author takes a
            preliminary first cut at examining the statistical
            relationship between postal performance (as measured by
            letters per capita allowing for income per capita), trust in
            the postal service, and postal efficiency, and finds a
            significant link between the three. The results suggest that
            reforms that improve postal efficiency and trust in the
            postal network will improve the performance of the postal
            network. The author suggests that there may be better uses
            of cross-subsidy from within the sector and government
            subsidy from without than supporting the inefficient
            delivery of a service rarely used by poor people.
Deposit insurance around the world :
            a comprehensive database
This paper updates the Demirguç-Kunt and
            Sobaci (2001) cross-country deposit insurance database and
            extends it in several important dimensions. This new data
            set identifies both recent adopters and the ones that were
            not covered earlier due to a lack of data. Moreover, for the
            first time, it provides historical time series for several
            variables and adds new ones. The data were collected by
            surveying deposit insurance institutions and related
            agencies as well as through the use of various other country sources.
Workers' remittances to
            developing countries : a survey with central banks on
            selected public policy issues
This paper presents the findings of a
            survey conducted by the World Bank of central banks in 40
            developing countries across different regions in the world.
            The survey focused on the following topics: (1) coverage of
            national statistics on remittances, (2) cost of transferring
            and delivering remittances, (3) regulatory regime for
            remittance transactions, and (4) efforts of developing
            countries to channel remittance flows through formal
            financial institutions. The study finds that in most
            countries existing data do not reflect the full amount of
            remittance inflows that they receive every year. Coverage of
            instruments and financial institutions through which
            remittances take place is limited. Moreover, only a few
            countries measure remittances that take place through
            informal channels. It also finds that the scope of financial
            authorities in developing countries to reduce remittance
            fees is limited because a large part of the fees charged to
            customers are set by financial institutions located in the
            countries where transactions originate. Cooperation between
            sending and recipient countries is needed to reduce
            remittance costs. The survey finds that in several countries
            money transfer companies are not properly supervised. Given
            the increasing international concerns with money laundering
            and terrorism financing issues, it is important that basic
            registration and reporting requirements are introduced for
            money transfer companies. Registration and reporting
            requirements should be designed in such a way that they do
            not deter the further development of this type of financial
            institution. Finally, the survey finds that most countries
            need to establish better mechanisms that would allow them to
            maximize the developmental effect of remittance inflows. By
            establishing new savings and investment instruments for
            remittance recipient households, a larger part of remittance
            flows might be channeled to finance productive investments,
            thus fostering economic growth.
Workers' remittances to
            developing countries : a survey with central banks on
            selected public policy issues
# WPS3638

## **Workers’ Remittances to Developing Countries: A Survey with Central Banks on Selected Public Policy Issues**

### **José de Luna Martínez**<sup>*****</sup>

#### **Abstract**

This paper presents the findings of a survey of central banks in 40 developing countries across different regions in the world. The survey focused on the following four topics: (i) coverage of national statistics on remittances, (ii) cost of transferring and delivering remittances, (iii) regulatory regime for remittance transactions, and (iv) efforts of developing countries to channel remittance flows through formal financial institutions. The study found that in most countries existing data do not reflect the full amount of remittance inflows that they receive every year. Coverage of instruments and financial institutions through which remittances take place is limited. Moreover, only a few countries measure remittances that take place through informal channels. It was also found that the scope of financial authorities in developing countries to reduce remittance fees is limited, because a large part of the fees charged to customers are set by financial institutions located in the countries where transactions originate. Cooperation between sending and recipient countries is needed to reduce remittance costs. The survey found that in several countries money transfer companies are not properly supervised. Given the increasing international concerns on money laundering and terrorism financing issues, it is important that basic registration and reporting requirements are introduced for this type of company. Registration and reporting requirements should be designed in a way that they do not deter the further development of this type of financial institution. Finally, the survey found that most countries need to establish better mechanisms that would allow them to maximize the developmental effect of remittance inflows. By establishing new savings and investment instruments for remittance recipient households, a larger part of remittance flows might be channeled to finance productive investments, thus fostering economic growth.

#### World Bank Policy Research Working Paper 3638, June 2005

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

* José de Luna Martínez is a Senior Financial Economist at the World Bank. Comments on this paper are welcome. They can be sent to the author’s email address: Jdelunamartinez@worldbank.org

1
Fiscal space for investment in
            infrastructure in Colombia
For the evaluation of macroeconomic
            policies Colombian authorities rely heavily, if not
            exclusively, on the operational framework known as the
            Financial Programming Model developed by the International
            Monetary Fund in the 1950s. Based on this static framework,
            the formulation of fiscal policy in the country, just as in
            various Latin American countries, focuses primarily on
            fiscal deficit and gross debt targets. However, the type of
            fiscal policy advice derived from it is not useful for
            understanding the asset-creating nature and the
            inter-temporal tradeoffs involved in public investment
            decisions. The author develops a perfect foresight, dynamic
            small open economy model to provide an alternative framework
            for fiscal analysis and policy purposes. He shows that the
            two competing frameworks deliver differing paths for the
            expected behavior of the Colombian economy. He then uses the
            proposed framework to study the likely consequences of using
            public capital spending to achieve deficit targets since, in
            addition to an already high public debt, in the years ahead
            unfunded pension obligations will put enormous pressure on
            the Colombian government's solvency. The results
            indicate that public capital compression is costly in terms
            of foregone growth and very ineffective in achieving fiscal
            consolidation. The adoption of fiscal rules such as the
            golden rule or the permanent balance rule to shield public
            investment from undue budgetary pressures makes little sense
            in the presence of sustainability concerns. The author shows
            that a transitory capital spending increase is not
            self-amortizing in the long run; hence an extra peso of
            public capital spending deteriorates the inter-temporal
            fiscal position. A permanent increase largely pays for
            itself in terms of additional tax revenue but this effect is
            offset by a deterioration of infrastructure user charges, as
            long as public prices are determined competitively.