CIGI Papers

CIGI Papers present well-considered policy positions and/or research findings, insights or data relevant to policy debates and decision making. This category includes papers linked to particular projects or topic areas.

Reforming the Global Architecture of Financial Regulation: The G20, the IMF and the FSB

September 22, 2014
CIGI Papers No. 42
The global financial crisis that began in 2007 and deepened in 2008 exposed major weaknesses in financial and macroeconomic policy coordination, and profound flaws in financial risk management and regulation in a number of advanced countries. The severity of the crisis led global leaders to recognize that they must find a way to reform the global regulatory architecture to ensure that the financial system can absorb shocks while continuing to function efficiently. The analysis in this paper suggests a number of actions that the IMF and FSB should take to strengthen their cooperation and effectiveness, and highlights some of the problems created when no single agency has overall responsibility for the regulatory oversight of the international financial system.

Organizational Culture, Learning and Structure in Central Banks: Best Practices and the Case of the Moroccan Central Bank

September 15, 2014
CIGI Papers No. 41
This paper provides both theoretical and empirical evidence that maintains that a central bank’s organizational structure, culture and learning system isare important for achieving best governance practices. It argues that a central bank’s the organizational structure and culture of a central bank facilitates the effective implementation of governance practices that have been enacted by law or in a strategic plan, with specific reference to central bank independence, communication, transparency, professionalization, technical excellence and reputation risk management.

Crisis Management Mechanisms: Pathologies and Pitfalls

September 4, 2014
CIGI Paper No. 40
As events demonstrate on a regular basis, the Asia-Pacific is a region prone to crisis. In recent years there has been a marked increase in the use of military force to signal interests or resolve, and even, in some cases, to alter the status quo, particularly in the East and South China Seas. No country in the region desires conflict, owing to their high levels of economic interdependence, but it is clear that in a context of rising nationalism, unresolved historical grievances and increasing hostility and suspicion, there is no reason to be complacent about the prospect of future conflict. Hence the recent surge in interest in crisis management “mechanisms” (CMMs). This paper explores the dangers of thinking of crisis management in an overly technical or mechanistic fashion, but also argues that sensitivity to those very dangers can be immensely useful. It draws upon US and Soviet experiences in the Cuban missile crisis to inform management of a hypothetical future Sino-American crisis in the East China Sea, and to identify general principles for designing and implementing CMMs.

China's Goals in the G20: Expectation, Strategy and Agenda

August 27, 2014
The G20 has emerged as the lynchpin of China’s involvement in global economic governance. It remains the only economic institutional setting where the country can operate on par with major Western powers. China has a strong interest in maintaining the status of the G20 as the premier forum for economic cooperation, and a vested interest in ensuring that the G20 does not degrade into yet another “talk shop” of multilateral diplomacy. However, the Chinese leadership’s current approach to the G20 is not driven by a desire to position the country as a leading agenda setter.

Equator Principles Reporting: Do Financial Institutions meet their Goals?

August 19, 2014
CIGI Paper No. 38
The Equator Principles (EP) are a voluntary code of guidelines for financial institutions to report on environmental and social issues of projects. This paper examines how often members of the EP report and what content should be disclosed. Using institutional theory as the theoretical framework for the analysis, seven criteria (annual reporting, disclosure of screened transactions, the categorization of projects with respect to their assessment status, risk category, sector, region and implementation experience ) were used to test whether members report according to the EP’s guidelines. Results highlighted challenges with reporting compliance and transparency. To counter these obstacles, this paper recommends strategies such as enforcement, standardization reporting or third party validation to increase the adherence to and the transparency of the EP reporting.

The Role of International Trade in the Rise of the New Zealand Dairy Industry from Its Beginnings to the Fonterra Era

August 13, 2014
CIGI Paper No. 37
Within the dairy industry, New Zealand is a giant. However, the neocooperative and free market management system has attracted the ire of larger competitors such as the United States and the European Union. This paper provides an overview of the history of the New Zealand dairy industry and the changes the New Zealand government has made to remain agile and receptive to change, including restructuring the industry to place the New Zealand Dairy Board and later Fonterra as the sole exporter of dairy products. But, as this paper argues, perhaps New Zealand’s biggest challenges and obstacles lie ahead. In light of potential trade liberalization within mega deals and increasing competition from the United States and the European Union, New Zealand must now be aggressive and innovative in finding new markets, maintaining their export base and standing their ground in the face of cut-throat and unapologetic international competition.

What Drove the Mid-2000s' Explosiveness in Alternative Energy Stock Prices? Evidence from US, European and Global Indices

July 29, 2014
CIGI Paper No. 36
Pierre Siklos, Martin T. Bohl, and Philipp Kaufmann
Soaring prices in European alternative energy stocks and their subsequent tumble have attracted attention from both investors and academics. This paper by Martin T. Bohl, Philipp Kaufmann and Pierre L. Siklos extends recent research to an international setting and analyzes whether the explosive price behaviour of the mid-2000s was driven by rising crude oil prices and an overall bullish market sentiment.

Transatlantic Economic Agreements: Parsing CETA and TTIP

July 21, 2014
CIGI Paper No. 35
Both Canada and the United States are in the process of working through two separate trade agreements with the European Union. The Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union is, allegedly, almost complete, while the Trans-Atlantic Trade and Investment Partnership (TTIP) between the United States and the Europe Union is still in the early stages. This paper examines the similarities and differences between CETA and the TTIP and suggests ways the TTIP negotiations might unfold, especially considering there have been suggestions that CETA is a “template” for the TTIP.

China and Global Mega Trade Deals

July 11, 2014
CIGI Paper No. 34
Chunding Li, Jing Wang, and John Whalley
The term “mega deal” has been widely used in relation to two large prospective trade deals between the United States and Europe — the Transatlantic Trade and Investment Partnership — and between Asia and the Pacific — the Trans-Pacific Partnership. This paper, authored by Chungding Li, Jing Wang and John Whalley, explores a possible description of mega deals by making an inventory of current deals in place, under discussion or negotiation, and deals yet to be considered.

Tipping the Scale: An Analysis of Global Swing States in the Internet Governance Debate

June 23, 2014
Global Commission on Internet Governance Paper Series No. 2
Tim Maurer and Robert Morgus
In December 2012, numerous news outlets reported on the debate over Internet governance that took place at the World Conference on International Telecommunications (WCIT) in Dubai. It was the first time in nearly a decade that the topic attracted major international media attention. A key aspect of the post-WCIT discussion has centred on the role of “swing states” in this global debate.