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Taking Stock of Risk Management Techniques for Sovereigns / Claessens, Stijn

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Claessens, Stijn
Contributor:
Claessens, Stijn
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Bank Policy.
Banks and Banking Reform.
Commodity Prices.
Creditworthiness.
Currencies and Exchange Rates.
Debt Markets.
Developing Countries.
Emerging Markets.
Exchange.
Finance and Financial Sector Development.
Financial Literacy.
Financial Risk.
Global Capital.
Global Capital Markets.
Instruments.
Insurance and Risk Mitigation.
International Financial Institutions.
International Financial Markets.
International Markets.
Investment.
Labor Policies.
Natural Disasters.
Non Bank Financial Institutions.
Private Sector Development.
Risk Management.
Risk Management Tools.
Safety Net.
Social Protections and Labor.
Sovereign Debt.
Sovereign Risk.
Stock.
Local Subjects:
Bank Policy.
Banks and Banking Reform.
Commodity Prices.
Creditworthiness.
Currencies and Exchange Rates.
Debt Markets.
Developing Countries.
Emerging Markets.
Exchange.
Finance and Financial Sector Development.
Financial Literacy.
Financial Risk.
Global Capital.
Global Capital Markets.
Instruments.
Insurance and Risk Mitigation.
International Financial Institutions.
International Financial Markets.
International Markets.
Investment.
Labor Policies.
Natural Disasters.
Non Bank Financial Institutions.
Private Sector Development.
Risk Management.
Risk Management Tools.
Safety Net.
Social Protections and Labor.
Sovereign Debt.
Sovereign Risk.
Stock.
Physical Description:
1 online resource (35 pages)
Place of Publication:
Washington, D.C., The World Bank, 2005
System Details:
data file
Summary:
This paper reviews the current state of affairs and thinking on external risk management for developing countries. It tries to identify the reasons behind the limited risk management by sovereigns. Perverse incentives arising from a too generous international safety net, limited access to international financial markets by developing countries arising from low creditworthiness, a limited supply of financial risk management tools suited to developing countries, and a poor supply of skills have inhibited risk management. Another constraint has been the limited attention given to the strategic objectives for risk management. Going forward, the paper identifies actions by international financial markets, countries and international financial institutions that can help improve risk management.

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