A big boost for business from pricing local risks: international standards for assessing country risk

RMA Journal, The, May, 2003 by George J. Vojta, Carl F. Adams

Note

For access to the information Web site of eStandards Forum, a wholly owned initiative of the Financial Standards Foundation, please contact Matthew Zimmer at matt.zimmer@cStandardsForum.com The Financial Standards Foundation is a Delaware-registered, not-for-profit organization.

Suggested Reading

Dominic Barton, Roberto Newell, and Gregory Wilson, Dangerous Markets, Managing in Financial Crises (John Wiley & Sons Inc., New York, 2002), ISBN 0-471-22868; HD 49.B367, p. 294.

Michel Cardona and Marc Farnoux, "International Codes and Standards: Challenges and Priorities for Financial Stability," Financial Stability Review; No. 1, November 2002, Banque de France,\ ISSN en cours 109-0001, p. 143. (www.banque-france.fr)

Lodge, George J., "Using Big Business to Fight Global Poverty," Foreign Affairs,. July/August 2002, Vol. 81, No. 4, pp. 13-18.

Vojta, George J., "Global Standards: The Path to An Improved Global Financial System," Central Banking, Vol. XII, No. 01, August 2001.

Vojta, George J., "Why the Private Sector Must Consider Standards," The Financial Regulator, Vol. 7, No. 3, December 2002, pp. 40-45.

Financial Stability Forum at the Bank for International Settlements, www.fsforum.org.

(1.) The Task Forte on the Implementation of Standards, established September 1999, chaired by A. Sheng (Securities and Futures Commission of Hong Kong), published March 2000.

(2.) The Follow-Up Group on Incentives to Foster Implementation of Standards, set up in April 2000 and chaired by A. Nawrath (German Ministry of Finance), published August 2001.

RELATED ARTICLE: Financial Services Foundation Mission Statement

The Financial Services Foundation (FSF) seeks to promote the conditions for meaningful, dignified, and sustained enrichment of human welfare through economic growth, public policy transparency, and social policy integrity. We believe that the mobilization of private capital, invested prudently in healthy, transparent markets, reaps lasting benefits for a country's people, prosperity, and positive integration with the global community.

To pursue this mission, we will support programs that promote adherence to global best practices and international standards in a framework of 12 core areas of business behavior. The 12 areas are grouped into three categories:

* Macroeconomic Policies as portrayed by a country's publicly available information and statistics.

* Financial Infrastructure and Market Discipline as evidenced by independent observations of enterprise management in the country and by verifiable compliance with best practices.

* Regulation and Supervision of a country's financial system with regard to independent verification and prudential, transparent oversight.

Our programs will encourage public-sector leaders to commit to real reform in business management. FSF programs will strive to provide private-sector interests worldwide with an accurate picture of a country's true economic growth potential, thereby enabling prudent and profitable risk discriminations and stimulating responsible business commitments. Our programs will also support the work of training and technical assistance providers in a country engaged in developing the requisite human capital in public and private financial institutions.