Fellow and professor examine role of IMF in financial crises in developing countries

first_imgIn a lecture in the Hesburgh Center auditorium Tuesday hosted by the Kellogg Institute, visiting Kellogg fellow Bumba Mukherjee and Notre Dame assistant professor Alexandra Guisinger spoke about their joint research on financial crises in developing countries and the conditions associated with the success of International Monetary Fund (IMF) programs in those countries.Mukherjee said based on the duo’s research, they believe the success of programs suggested by the IMF, which lends money to countries facing economic and financial crisis, is largely dependent upon the financial and political power of non-bank financial institutions — more commonly referred to as “shadow banks.”“As financial globalization has taken off in the last 20, 30 years in the developing world in particular, [shadow banks] are becoming important business actors,” he said.Guisinger said countries turn to the IMF to avoid the possibility of deep economic recession in times of financial and economic distress — specifically when there is danger of a “sudden reversal” or the abrupt decline in the inflow of capital. However, Guisinger said the IMF can complicate the economic situation, bringing in “a new set of actors, a new set of incentives and can interact with this more general pattern of the ebbs and flows of capital.”The standard recommendation of the IMF for a country to avoid a sudden reversal, Mukherjee said, is to impose regulations on shadow banking. He said a problem arises when the shadow banks of a given country are powerful enough to effectively oppose the IMF regulations.“When you have these extremely concentrated, very strong, large, financially powerful shadow banks, that’s precisely when IMF programs won’t work,” Mukherjee said. “If anything, they’ll make things even worse.”Guisinger said the result is the departure of foreign investors and a stock market crash, which can have “cascading effects on the economy and on political conditions.”“Stock market crashes are not trivial,” Mukherjee said. “They have terrible consequences. Investments collapse, the economy collapses, unemployment rates go up, there’s political riots — people respond.”Mukherjee said citizens associate the IMF, and thus the government responsible for asking the IMF to help, with the financial crisis. He said this puts enormous political pressure on government officials, who resort to fraud out of fear for their political careers.“It’s this deadly combination in terms of IMF programs and financial crises that leads to these bad political outcomes,” he said.Mukherjee said his research with Guisinger led him to conclude that the IMF should reform its approach and consider countries on a case by case basis.“The problem here is that the IMF is not really talking to governments who come to them desperately looking for help,” Mukherjee said. “They are coming up with this blueprint without really looking at local conditions, which is not working.”Tags: financial crisis, IMF, International Monetary Fund, Kellogg Institute, NBFI, non-bank financial institutions, Recession, shadow bankslast_img read more

Students reflect on Intercultural Leadership Program

first_imgFour Saint Mary’s seniors, Caylin McCallick, Elizabeth Quaye, Yaqi Song and Ngoc “Ruby” Truong gave presentations Tuesday evening reflecting on their experiences with the Intercultural Leadership Program. The Intercultural Leadership Program (ILP) is a two to three year program that aims to cultivate the participants’ “leadership potential to make a difference in the world,” according to the ILP website.“The ILP helped me realize what kind of leader I am, but also recognize the leader in others and to help encourage others to do what they are interested in and to give them the confidence,” Quaye said. There are six proficiency areas the program aims to develop. Although there are some experiences required of all participants, the students’ achievement of the proficiency areas differed. “Particularly the leadership aspect of intercultural leadership I think developed for me a lot with my involvement with ROTC [Reserve Officers’ Training Corps] at Notre Dame,” McCallick said. In conjunction with her involvement with ROTC, McCallick took courses in military leadership that inspired her to partake in the ILP.“That was what really sparked my interest in studying intercultural awareness, because a lot of what we learned in our classes was about how to interact with various cultures around the world,” she said.For Truong, the idea of finding her inner leader was a major takeaway of ILP.“I believe that in every single person, there are leadership skills inside,” she said. “It’s not about nature, it’s about nurture. How you can awaken that leadership, and make that leader inside awake.”Another proficiency area the students engaged with was diversity. “I was inspired by ILP to become more involved in the community both on campus and off campus,” McCallick said. “So I attempted to engage in as many inclusive, diverse and supportive groups and projects as possible.”Truong found her engagement with diversity through her Introduction to Intercultural Leadership course. “By joining that course, I got a chance to I learned so much about the different cultures here,” she said.A requirement of the ILP is a study abroad experience; for Song and Truong, that came during their time at Saint Mary’s. Song and Truong are international students from China and Vietnam, respectively.“As an international student, one of my top priorities here is just to promote my culture,” Song said. “I feel a responsibility to make it more accessible to people.”Quaye spent her Spring 2016 semester in Morocco, and found that her study abroad experience — combined with her studies of American culture — cultivated her engagement with diversity.“I was really able to see the wealth of diversity within cultures, even our own,” Quaye said.Song’s experience with participating in the areas of dialogue and creating inclusive communities lead her to become more at ease speaking about different issues regarding diversity.“I think maybe this campus has not been very much exposed to diversity,” she said. “But after joining this program, I’m more comfortable talking about it.”The last aim of this program is to make a difference. McCallick began her work with this goal when deciding upon her course of study and career path. “I felt like I couldn’t understand how my career was going to collide with my social justice concerns,” she said. “And then I realized that making a difference in the world doesn’t have to be in waves. It can be in small pieces. Small actions can really have an effect on people in a profound way. Even if you can’t change the world in large ways, sometimes you can connect with people in small ways and that makes a difference.”Tags: Diveristy, ROTC, Saint Mary’s Center of Women’s Intercultural Leadershiplast_img read more

Mental errors cost Badgers against Hoosiers

first_imgIn a match that the Badgers looked to control after dominating the first set, the University of Wisconsin volleyball team lost its sense of focus and team chemistry as it crumbled in a four-set loss to the last place Indiana Hoosiers Friday night.After ending the first set on a 19-8 run, Wisconsin (15-8, 3-7 Big Ten) dropped three straight sets to the Big Ten bottom-feeders as unusual mental mistakes like lack of focus and miscommunication plagued UW.“There were more than normal, and I don’t have an answer for that,” head coach Pete Waite said. “Some people were just hesitating … normally they blend better together and they communicate a little bit better, but for some reason, it just wasn’t happening in a few points.”Although Indiana finds itself in last place in the conference, the team has won its last two matches against Big Ten opponents after losing its first eight league contests. The Hoosiers defeated the then-No. 17 Purdue Boilermakers in four sets Oct. 16 for their first conference victory.The Badgers’ lack of chemistry ruined their chances of finding an offensive flow. While Wisconsin had a .429 attack percentage in the first set with 16 kills, the team could only muster clips of .128 and .069 in the second and fourth sets, with a lower success rate on side-out plays.Both teams struggled to play clean offensively throughout the match, with the Badgers committing 22 errors and Indiana totaling 21.Senior middle blocker Alexis Mitchell said the team is at its best when individual players are loose. However, she said it is difficult to relax when playing from behind in sets.“I think we just put pressure on ourselves when we get in holes and then you do tense up normally when you’re putting pressure on yourselves,” Mitchell said. “We just have to find a way to let that pressure go and play our game even when we’re down … We have to work on getting a fast start so that pressure isn’t even existent.”The Badgers found themselves down by three points in the first, second and fourth sets before either team had even reached double-digit points.In recent matches, Wisconsin has been able to mount comebacks after falling behind early, but Waite said it’s challenging to pick up the momentum mid-set.“We seem to be starting from behind and then gaining momentum and getting going, but that’s draining,” Waite said. “It can be pretty exhausting doing that all the time.”The bright spot for Wisconsin on offense came in the play of sophomore outside hitter Ellen Chapman. The 6-foot-5 attacker set a new career-high with 24 kills on a .390 hitting percentage, adding 11 kills in the third set alone.Courtney Thomas also chipped in 51 assists and 10 digs in her 11th double-double of the season.Defense shows signs of improvement The Wisconsin defense wasn’t free of its fair share of mistakes, but showed flashes of effective play.Sophomore defensive specialist Deme Morales and junior outside hitter Julie Mikaelsen set career-highs in digs with 18 and 15, respectively. Mikaelsen also contributed 11 kills to record her first career double-double.However, there were a number of occasions in which the Badger back row let balls go that fell inbounds. Players also lost opportunities to pick up stray balls because of miscommunication.Junior libero Annemarie Hickey, who led the Badgers with 19 digs, said defensive players needed to be more assertive going after balls.“We just need to be aggressive,” Hickey said. “We can’t be looking at balls … one person needs to go for it … We’re doing a great job of working around together, it’s just those little spurts of where we are watching those balls that we need to fix.”Wisconsin allowed 11 aces on Indiana service attempts. The loss was the second straight UW gave up double-figure service aces. The Badgers’ receiving percentage was just .882 for the match with 11 errors, compared to their season average of just under five receiving errors per match.Waite said Wisconsin’s serve-receive has been something the team has worked on in practice, yet has struggled with come game day.“I think it was a case where they [Indiana] did a good job moving the ball around on the serve short [and] deep,” Waite said. “They were really hitting their lines on a lot of their shots, and I thought they covered really well [on our blocking] … [it was] definitely frustrating.”last_img read more