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KGB's Legacy: Transplanting Efficient Financial Infrastructures Without Efficiency

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TypeOfResource
Text
TitleInfo
Title
KGB's Legacy: Transplanting Efficient Financial Infrastructures Without Efficiency
Name (type = personal)
NamePart (type = family)
Guseva
NamePart (type = given)
Yuliya
Affiliation
Dean's Office (School of Law-Newark), Rutgers University
Role
RoleTerm (type = text); (authority = marcrt)
author
Name (type = corporate); (authority = RutgersOrg-Department)
NamePart
Dean's Office (School of Law-Newark)
Name (type = corporate); (authority = RutgersOrg-School)
NamePart
School of Law-Newark
Genre (authority = RULIB-FS)
Article, Refereed
Genre (authority = NISO JAV)
Version of Record (VoR)
Note (type = peerReview)
Peer reviewed
OriginInfo
DateIssued (encoding = w3cdtf); (keyDate = yes)
2015
Abstract (type = Abstract)
Transplantation of laws from a foreign country is an explicit regulatory choice. It is a choice made by governments and influenced by local and international interest groups. This Article analyzes a complex junction where international legal transplantation encounters destructive transactional and behavioral patterns in countries-recipients. The governments must respond to such inefficiencies and attempt to reduce resulting transaction costs by introducing corrections to a foreign model, i.e., a “domestic gradient.” This research focuses on a very peculiar “gradient”: combining public ownership of financial utilities with close regulatory oversight as a way to mitigate destructive socioeconomic, behavioral and transactional patterns in developing markets.

The Article focuses on a relatively uncharted territory - transplanting of clearing and settlement (C&S) institutions. First, the research analyzes the purposes and development of centralized C&S in the U.S. and Europe. Second, the Article contrasts westernized C&S transplants with their application in the tumultuous economies of Ukraine, Russia, and Kazakhstan.

Third, to assess the transplants, the research builds a theoretical “trust model.” The model suggests that making the national governments active players in a financial industry like C&S, whose sole purpose is minimizing transaction costs and improving capital exchange, does not address the underlying behavioral and regulatory problems that the “gradient” is supposed to remedy. These problems, the Article emphasizes, are a multifaceted lack of trust among private parties, weak reputational constraints, the low observability of conversion from trustworthy to untrustworthy market actors, and an equally potent lack of trust towards government entities in the sample. The Article concludes by hazarding a few policy proposals on how to modify the destructive behavioral and regulatory patterns and thus improve C&S and capital markets. Specifically, instead of transplanting and adjusting foreign law, the governments should resort to institutional transplantation and introduce a neutral umpire: a purely foreign economic party.
Language
LanguageTerm (authority = ISO 639-3:2007); (type = text)
English
PhysicalDescription
InternetMediaType
application/pdf
Extent
125 pages : illustrations
Subject (authority = local)
Topic
Capital markets
Subject (authority = local)
Topic
Trust
Subject (authority = local)
Topic
Reputation
Subject (authority = local)
Topic
Transplanting
Subject (authority = local)
Topic
Clearing
Subject (authority = local)
Topic
Settlement
Subject (authority = local)
Topic
Regulatory reforms
Subject (authority = local)
Topic
DTCC
Subject (authority = local)
Topic
DTC
Subject (authority = local)
Topic
NSCC
Subject (authority = local)
Topic
Russia
Subject (authority = local)
Topic
Ukraine
Subject (authority = local)
Topic
Kazakhstan
Subject (authority = local)
Topic
EU capital markets directives
Extension
DescriptiveEvent
Type
Citation
DateTime (encoding = w3cdtf)
2015
AssociatedObject
Name
University of Pennsylvania Journal of International Law
Type
Journal
Relationship
Has part
Detail
525-649
Identifier (type = volume and issue)
36
Reference (type = url)
https://scholarship.law.upenn.edu/jil/vol36/iss2/4/
RelatedItem (type = host)
TitleInfo
Title
Guseva, Yuliya
Identifier (type = local)
rucore30258300001
Location
PhysicalLocation (authority = marcorg); (displayLabel = Rutgers, The State University of New Jersey)
NjNbRU
Identifier (type = doi)
doi:10.7282/T39W0K37
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RightsDeclaration (AUTHORITY = FS); (TYPE = [FS] statement #1); (ID = rulibRdec0004)
Copyright for scholarly resources published in RUcore is retained by the copyright holder. By virtue of its appearance in this open access medium, you are free to use this resource, with proper attribution, in educational and other non-commercial settings. Other uses, such as reproduction or republication, may require the permission of the copyright holder.
Copyright
Status
Copyright protected
Availability
Status
Open
Reason
Permission or license
RightsEvent
Type
Permission or license
AssociatedObject
Type
License
Name
Sole author license v. 1
Detail
I hereby grant to Rutgers, The State University of New Jersey (Rutgers) the non-exclusive right to retain, reproduce, and distribute the deposited work (Work) in whole or in part, in and from its electronic format, without fee. This agreement does not represent a transfer of copyright to Rutgers.Rutgers may make and keep more than one copy of the Work for purposes of security, backup, preservation, and access and may migrate the Work to any medium or format for the purpose of preservation and access in the future. Rutgers will not make any alteration, other than as allowed by this agreement, to the Work.I represent and warrant to Rutgers that the Work is my original work. I also represent that the Work does not, to the best of my knowledge, infringe or violate any rights of others.I further represent and warrant that I have obtained all necessary rights to permit Rutgers to reproduce and distribute the Work and that any third-party owned content is clearly identified and acknowledged within the Work.By granting this license, I acknowledge that I have read and agreed to the terms of this agreement and all related RUcore and Rutgers policies.
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Technical

RULTechMD (ID = TECHNICAL1)
ContentModel
Document
CreatingApplication
Version
1.7
DateCreated (point = start); (encoding = w3cdtf); (qualifier = exact)
2018-08-09T15:06:44
DateCreated (point = start); (encoding = w3cdtf); (qualifier = exact)
2018-08-09T15:06:41
ApplicationName
Microsoft® Word 2013
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