Modell zur Förderung des Wettbewerbs und der Transparenz auf dem Ratingmarkt unter Berücksichtigung der Besonderheiten der deutschen Bankenstruktur

This paper provides a model for the international market of credit ratings in order to promote transparency of rating methodologies and combat the oligopolistic market structure where Standard & Poor‘s, Moody‘s and Fitch Ratings collectively comprise approximately 85 percent of the market. For the German credit market this paper strongly advises the establishment of at least three centralistic credit rating agencies (CRAs), set up and run independently by the large bank institutions – „Großbanken“, „Sparkassen“ and „Genossenschaftsbanken“. By acting as CRAs, universal banks could not only decrease their costs but would also be able to increase competition and transparency. These new credit rating agencies would be subject to the Basel II internal ratings-based (IRB) surveillance standards that go far beyond the Basel II standard approach with its external ratings by the dominating three US-american CRAs. Due to the fact that the new Basle Accord has already been implemented in Europe, this model could be applied all over Europe and possibly even worldwide, assuming the US were to adopt the new capital adequacy rules. This would lead to an increase in the number of CRAs and hence to more competition, as the barriers to entry in the rating industry would not apply to these new institutions because of their expertise in the credit market. The fact that the IRB-criteria already have to be disclosed by law would make the methodologies transparent and subject to approval by national regulators such as the „Bundesanstalt für Finanzdienstleistungsaufsicht“ (BaFin) in Germany. Hence the requirement to set up a new monitoring committee in Europe would become obsolete.

Smallholder group certification in Uganda - Analysis of internal control systems in two organic export companies

The organic agricultural sector of Uganda is among the most developed in Africa in terms of its professional institutional network and high growth rates of number of certified farmers and land area. Smallholder farmers are certified organic through contract production for export companies using a group certification scheme (internal control system - ICS). The ICS is a viable and well-accepted tool to certify small-scale producers in developing countries all over the world. Difficulties in certification are still stated to be among the main constraints for Uganda’s organic sector development. Therefore, this paper reports a qualitative case study comprising 34 expert interviews in two organic fresh-produce export companies in central Uganda, aiming to explore the challenges which underlie organic certification with ICS. The study shows that farmers cannot be labelled as ‘organic by default’ but deliberately engage in organic production as a marketing strategy. The small quantities purchased by the organic companies lead to a difficult marketing situation for the farmers, causing production and infiltration risks on the farm level. These risks require increased control that challenges the companies organizationally. The risks and control needs are a reason to involve farmers in ICS procedures and innovatively adapt the ICS by means of a bypass around formal perspective restrictions. The paper discusses different perspectives on risks, risk control and certification.

Dress- and Auto- Makers in the “Free Trade” Arena

Even though there have been many studies on the impact of trade liberalisation on labour standards, most of the studies are at national level, and there is a lack of research at industry level. This paper examines the impact of free trade on labour standards in capital- and labour-intensive industries in a developing country. For empirical findings, I take the case of the garment industry, representing labour-intensive industry, and automotive industry, representing capital-intensive industry, in Indonesia in the face of ASEAN Free Trade Area (AFTA). Since the garment industry is a women-dominated industry, while the automotive industry is a men-dominated industry, this paper also employs a feminist perspective. As such, this paper also investigates whether free trade equally affects men and women workers. Besides free trade, other independent variables are also taken into account. Employing quantitative and qualitative methods, empirical evidence shows that there is an indication that free trade has a negative relationship with labour standards in the garment industry, whereas a positive relationships with labour standards in the automotive industry. This implies that free trade might result in decreasing labour standards in labour-intensive industry, while increasing standards in capital-intensive industry. It can also be inferred that free trade unequally affect men and women workers, in that women workers bear the brunt of free trade. The results also show that other internal and external independent variables are indicated to have relationships with labour standards in the garment and automotive industries. Therefore, these variables need to be considered in examining the extent of the impact of free trade on labour standards in labour- and capital-intensive industries.