QUESTION

AFRICA FOCUS COURSEWORK QUESTION

Assignment task

You have been asked by the African Development Bank (AFDB) to write a report on the rapid change and increasing uncertainty of the global economy on Africa. The question the AFDB wants you to answer is the following:

Is the Eurozone crisis a threat or an opportunity for more Chinese direct investment on the African economies and development?

What policy recommendations would you make to the AfDB and its member states in the light of your analysis?

There is a word limit of 2,000 words (MAX) for your report.

Assessment criteria

The assessment criteria for the assignment are the following, each given equal weight

·        Understanding of recent development within the eurozone and China in Africa  and how these can be explained

·        Ability to assess the broader implications of these developments for African countries.

·        Ability to formulate appropriate policy proposals in the light of the preceding analysis

·        Structure and coherence of the assignment, including choice of source material and provision of a clear conclusion, linked to the previous argument.

Indicative Reading List

SOLUTION

Introduction

The regulation theory in Africa is a point of discussion and comparison. Over so many years there have been several points or debate, discussion and arguments on the requirement of for regulation. There are many points included in this regulation that are markets do not function every time in the greatest interest of the societies and to optimize the allocation of resources. Although, these interests form some sort of intervention according to the requirement of the regulation.

The issues of regulation of accounting became an issue of concern and discussion, specifically following the economic crisis and crash of the year 1920-30s that headed to for the accounting theory and principles defined. The main aim of accounting is to offer details and detail to the involved parties, who might not have contact to full or partial, but required economic decision. Due to their information disadvantage, they are irregularity in the working and use of information.  However, the regulation of accounting is seen as relating to “sustained and focused control exercised by a public agency over activities valued by a community” (Baldwin, Cave, 1999), there are other outlooks. Accounting policy in Africa a requirement, but it is over-rated and the main reason of this over-rate is that government is the ultimate monopoly (Baker, 2005. The impact of this governmental monopoly on the law-making procedure is to manage that what is produced and the ways of distribution of consequential production within the societies. The governments driven environments that are not checked properly are ever an expanding perpetual-motion machine. Any administration is rapidly confined by special-interest units such as the receivers of the regulation, the minister and their staff who are keen to keep that portfolio and make it influential; the departmental employees, who run the regulation and wish to make it “better” and non beneficiaries who do not want to be excluded.

Developments

All the departments of the government must have a rigid, declining, regulatory budget – measured both by quantum and pressure of regulation. Any organization (Majone, 1996), which goes over the budget of the government, is likely to be banned from launching new regulations until they find old regulations to remove. The yearly budget for each section would lead to a decline in the overall regulatory burden each year (R v London County Council).

This policy is not normally understood to be a part of the common law, and so a law continues in force, until canceled by parliament, although long the time may have been since it was known to have been actually imposed.  There is though some model for the principle, and at times the Latin maxim “jus incognitum” or “unknown rule” has been used to change down unclear and outdated rules by the courts. Developing the principle of desuetude would give the prosecutors the methods to strike down old, the legislation that is not used as no longer law – of course, the regulations for this must be a bit restricted, so that objector moderators cannot use the approaches to hit down legislation only as they do not like it. There is complete awareness of the irony that with a motive of enabling this policy to be launched, a new rule of Parliament would have to be issued.  Regulation Impact Statements must be a necessary procedure, which allows a real method of the expenses and advantages of regulation. Regulations that do not able to clear the test must be submitted back to Parliament or the related Minister.

The economic method to manage is constant with the theory of public choice that focuses on the limit to which the behavior of government is meant by imagining all performers as balanced entity maximizers of their own welfare. Analysis is led to the challenging methods (Peltzman, 1979) of the entities included– how they get across the regulatory that aims for adding their own aims. As a result, private interests are served in spite of the the common interest. Public selection theory settles the questions related to politics and economics. It depends on the neo-classical monetary expectations of rational selection, which is also known as self interest to guess the behavior of politicians, who are also called as the regulators. These politicians only pass those regulations that allow their scope of reelection which, as discussed in the section above, will head the politicians to those that have the methods to add this goal.

The current stage of the economic cycle surely mentions that country is going to see more companies in difficulty, many other issues from clients regarding investments, and more criticisms basically about revelation, suggestions and tricks. Actually, the standards of corporate governance basically have been set as a standard by many of the trading partners of country. Regardless of the fact that the nation does not believe that these subsides show a systemic failure of governance, also not a return to some of the endemic features of 1980s. There has been public discussion latest surrounding the correctness of the “unitary board” corporate governance model.

Moreover, structures including a “corporate senate” have been recommended by some to veto declarations of the directors in situations of self-interest. However, corporate governance is not a static thing and even if basic structures continue to be the same, policies and procedures around those structures should regularly be evaluated to make sure that the structure, and mainly the role of the nonexecutive director, is working properly, basically given the raise in retail participation in the equities markets and their different assumptions.

Therefore, it can be clearly be said that accounting regulation in Africa is over-rated, and the the government play an important and vital role in this. The over-rating of accounting regulation means that the African people have to be dependent on the the government, whosoever has the hold on the country at any point of time. The research on this point of discussion cannot be completed with the allowance from the government and the the topic of discussion should be in the interest of the government. The country should take some steps to improve this method.

Implication Of Developments

The regulation theory in Africa is a point of discussion and comparison. Over so many years there have been several points or debate, discussion and arguments on the requirement of for regulation. There are many points included in this regulation that are markets do not function every time in the greatest interest of the societies and to optimize the allocation of resources. Although, these interests form some sort of intervention according to the requirement of the regulation.

The issues of regulation of accounting became an issue of concern and discussion, specifically following the economic crisis and crash of the year 1920-30s that headed to for the accounting theory and principles defined. The main aim of accounting is to offer details and detail to the involved parties, who might not have contact to full or partial, but required economic decision. Due to their information disadvantage, they are irregularity in the working and use of information.  However, the regulation of accounting is seen as relating to “sustained and focused control exercised by a public agency over activities valued by a community” (Baldwin, Cave, 1999), there are other outlooks. Accounting policy in Africa a requirement, but it is over-rated and the main reason of this over-rate is that government is the ultimate monopoly (Baker, 2005. The impact of this governmental monopoly on the law-making procedure is to manage that what is produced and the ways of distribution of consequential production within the societies. The governments driven environments that are not checked properly are ever an expanding perpetual-motion machine. Any administration is rapidly confined by special-interest units such as the receivers of the regulation, the minister and their staff who are keen to keep that portfolio and make it influential; the departmental employees, who run the regulation and wish to make it “better” and non beneficiaries who do not want to be excluded.

All the departments of the government must have a rigid, declining, regulatory budget – measured both by quantum and pressure of regulation. Any organization (Majone, 1996), which goes over the budget of the government, is likely to be banned from launching new regulations until they find old regulations to remove. The yearly budget for each section would lead to a decline in the overall regulatory burden each year (R v London County Council).

This policy is not normally understood to be a part of the common law, and so a law continues in force, until canceled by parliament, although long the time may have been since it was known to have been actually imposed.  There is though some model for the principle, and at times the Latin maxim “jus incognitum” or “unknown rule” has been used to change down unclear and outdated rules by the courts. Developing the principle of desuetude would give the prosecutors the methods to strike down old, the legislation that is not used as no longer law – of course, the regulations for this must be a bit restricted, so that objector moderators cannot use the approaches to hit down legislation only as they do not like it. There is complete awareness of the irony that with a motive of enabling this policy to be launched, a new rule of Parliament would have to be issued.  Regulation Impact Statements must be a necessary procedure, which allows a real method of the expenses and advantages of regulation. Regulations that do not able to clear the test must be submitted back to Parliament or the related Minister.

The economic method to manage is constant with the theory of public choice that focuses on the limit to which the behavior of government is meant by imagining all performers as balanced entity maximizers of their own welfare. Analysis is led to the challenging methods (Peltzman, 1979) of the entities included– how they get across the regulatory that aims for adding their own aims. As a result, private interests are served in spite of the the common interest. Public selection theory settles the questions related to politics and economics. It depends on the neo-classical monetary expectations of rational selection, which is also known as self interest to guess the behavior of politicians, who are also called as the regulators. These politicians only pass those regulations that allow their scope of reelection which, as discussed in the section above, will head the politicians to those that have the methods to add this goal.

The current stage of the economic cycle surely mentions that country is going to see more companies in difficulty, many other issues from clients regarding investments, and more criticisms basically about revelation, suggestions and tricks. Actually, the standards of corporate governance basically have been set as a standard by many of the trading partners of country. Regardless of the fact that the nation does not believe that these subsides show a systemic failure of governance, also not a return to some of the endemic features of 1980s. There has been public discussion latest surrounding the correctness of the “unitary board” corporate governance model.

Moreover, structures including a “corporate senate” have been recommended by some to veto declarations of the directors in situations of self-interest. However, corporate governance is not a static thing and even if basic structures continue to be the same, policies and procedures around those structures should regularly be evaluated to make sure that the structure, and mainly the role of the nonexecutive director, is working properly, basically given the raise in retail participation in the equities markets and their different assumptions.

CONCLUSION

Therefore, it can be clearly be said that accounting regulation in Africa is over-rated, and the the government play an important and vital role in this. The over-rating of accounting regulation means that the African people have to be dependent on the the government, whosoever has the hold on the country at any point of time. The research on this point of discussion cannot be completed with the allowance from the government and the the topic of discussion should be in the interest of the government. The country should take some steps to improve this method.

REFERENCES

“R v London County Council”; Ex parte Entertainments Protection Assn Ltd , 1931 2 KB 215

Baldwin, R & M Cave, 1999, “Understanding Regulation, Theory, Strategy and Practice, Oxford”, Oxford University Press

Baker, C .R., 2005, “What is the meaning of ‘the public interest’ Examining the ideology of the American accounting profession”, Accounting, Auditing and Accountability Journal, v 18, pp 690-703

Majone, G., 1996, “Regulating Europe, London, Routledge”

Peltzman, S., 1979, “Toward a More General Theory of Regulation”, Journal of Law and Economics, v 19, pp 211-240

L040

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AFRICA FOCUS COURSEWORK QUESTION

Assignment task

You have been asked by the African Development Bank (AFDB) to write a report on the rapid change and increasing uncertainty of the global economy on Africa. The question the AFDB wants you to answer is the following:

Is the Eurozone crisis a threat or an opportunity for more Chinese direct investment on the African economies and development?

What policy recommendations would you make to the AfDB and its member states in the light of your analysis?

There is a word limit of 2,000 words (MAX) for your report.

Assessment criteria

The assessment criteria for the assignment are the following, each given equal weight

·        Understanding of recent development within the eurozone and China in Africa  and how these can be explained

·        Ability to assess the broader implications of these developments for African countries.

·        Ability to formulate appropriate policy proposals in the light of the preceding analysis

·        Structure and coherence of the assignment, including choice of source material and provision of a clear conclusion, linked to the previous argument.

Indicative Reading List