Development of public services is the effect of applying administrative reforms involving the banks and financial contribution. Decentralization strengthening and modernization of administrative structures and public services is supported by the World Bank, International Monetary Fund and the European Union, supplement the financial resources to facilitate development. To attract financing funds, local governments often resort to loans from the banks that manage the funds targeted. Money is used to supplement the income of local governments who needs loans for financing European projects. Empirical research on this way will make disclosures regarding the various types of banks involved in this process.
The current economic problems in Southeast Asia can be attributed not to too much reliance on financial markets, but to too little . Like the U.S. economy a century ago, the emerging Asian economies do not have welldeveloped capital markets and so remain heavily dependent on their banking systems to finance growth. For all its benefits, banking is “not only basically 19th‐century technology, but disaster‐prone technology.” The extreme maturity (and, in some cases, currency) mismatch on banks' balance sheets plus the first‐come, first‐served nature of the deposit obligations mean that banks are inherently vulnerable to massive runs by depositors—and that their economies are subjected to periodic credit crunches. And, as the author says, “in the summer of 1997 a banking‐driven disaster struck in East Asia, just as it had struck so many times before in U.S. history.” In this century, In this century, the U.S. economy has steadily reduced its dependence on banks by developing “dispersed and decentralized” financial markets. In so doing, it has increased the efficiency of the U.S. capital allocation process and reduced its susceptibility to the credit crunches that have occurred throughout U.S. history. By contrast, Japan has not reduced its economy's dependence on banks, and its efforts to deal with its banking problems have served only to destabilize itself as well as its neighbors. Developing countries in Southeast Asia and elsewhere are urged not to follow the Japanese example, but to take measures aimed at developing financial markets and institutions that will either substitute for or complement bank products and services.
CLOSED closed doors many closed meetings few roll calls little lobbying INDEPENDENT, BIPARTISAN bipartisan, unpredictable voting drafts its own legislation relies on own bureaucracies majority controls policy process but not policy substance strong on information weak on consensus weak on collective accountability DEPENDENT, PARTISAN partisan, predictable voting relies on administration relies on administration majority controls policy substance but not policy process weak on information strong on consensus strong on collective accountability DECENTRALIZED, CHAOTIC organization like market and clan allocation of values through exchange and seniority many unwritten rules pluralistic trust CENTRALIZED, DISCIPLINED democratic organization with elected authority allocation of values through elections with minority rights many written rules corporatistic distrust