A Research On Financial Crisis Governance In Economic Globalization: From The Perspective Of Governance Entities And Their Behaviors

There seems to be no absence of financial crisis in the financial history, whose power mounts to a such a staggering phase that factors such as, the high-frequency of its international contagion, the variety of its preys and the threat posed by its destruction, can hardly be ignored, especially with the growing momenta of economic globalization and financial globalization as well as science and technology. Financial crisis governance, remaining a problem awaiting us to tackle, thus now embodies more academic and realistic significance of study than ever before. Therefore, the dissertation aims at a comprehensive and detailed study of financial crisis governance from the perspective of its governance entities and the governance behaviors of these entities.The dissertation is composed of eight chapters.Chapter One is the introduction, which is further divided into four sections. The first section of Chapter One deals with some basic terms --- financial crisis, financial crisis governance, international governance of financial crisis and global governance of financial crisis, the four terms of which have a close progressive relation in logic. It begins with the definition of financial crisis and a brief review of its evolvement, and discusses the denotation of financial crisis governance, whose interpretation would be more desirable based on the concept of all-life-cycle (including ex ante crisis, during-crisis and ex post crisis phases), that is, strategies and measures of financial crisis governance should be tailored according to the crisis's latent period, out-break period, contagious period and ending period, in the whole process of which governance entities are playing a crucial and decisive role, given their authorities in decision-making, and the entities hence deserve a fair share in financial crisis governance research. Then follow the definitions of international governance of financial crisis and global governance of financial crisis. The second section of Chapter One gives a sketch of the background and significance of the research, such as the severe and infectious political and economic impacts that financial crises have had on the related parties, even the turbulence and turmoil in international economy and international relations. However, the current financial crisis governance has distinct defects, particularly institutional defects, which should be attributed to the lack of a more effective curb on the self-interest motives and behaviors of governance entities. The third section is a concise introduction to the research frame of the dissertation, accompanied by a structure graph. The last section is a brief summary of the innovation of the dissertation. Firstly, the dissertation forges a quite comprehensive, systematic and profound research on global governance of financial crisis and its mechanism, probing into its formation mechanism, components, positive effects, problems, and ways to improve it. Secondly, it reveals the significance of governance entities and their behaviors in the performance of financial crisis governance, giving quite an over-all analysis of the entities and their behaviors, based on which derives a study on international governance of financial crisis. Thirdly, in methodology the dissertation puts forward a general analytical frame, with the four sections of the economic background of governance entities'behaviors, self-interest and bounded rationality of the entities, the binding conditions of the entities in institution and resources, and utility maximization of the entities, and adopts it as the fundamental research method in analysis of entities and their behaviors of financial crisis governance. Fourthly, some implications on global governance of financial crisis are offered, by introducing a new governance entity --- global civil society organizations --- into the global governance, improving the entity structure of the global governance of financial crisis, changing and bettering their motives and behaviors in governance, promoting their cooperation, so as to achieve the optimization of governance mechanism and performance of financial crisis. The feasibility of the global governance is also discussed, followed by suggestions on global governance'strategies and tactics as well as some detailed measures. Lastly, the ethical value of global governance of financial crisis is illustrated, indicating that the global ethical value and global ethical principles embodied in the new governance entity --- global civil society organizations --- are the substantial sources of the entity's power in global governance of financial crisis.Chapter Two presents a literature review of financial crisis governance. The studies on the causes of financial crisis and its international contagion offers theoretical basis for financial crisis governance, particularly for the international governance of financial crisis, and some views such as those on confidence and anticipation give valuable insights into financial crisis governance. The researches on crisis governance enlighten us with the idea that an all-life-cycle model (including ex ante crisis, during-crisis and ex post crisis phases) would be more helpful and constructive in the study of international governance of financial crisis. Though never directly putting forward the notion --- international governance of financial crisis, the contagious researches on international governance of financial crisis, especially those based on international institution, help to spur the research of the dissertation which aims at a more systematic and in-depth study of international governance of financial crisis, with the provision of exuberant sources of study. And more importantly, concepts of global governance significantly illuminate the improvement of the present financial crisis governance --- a transfer from an international governance mechanism to a global one.Chapter Three gives a detailed analysis of governance entities'behaviors and their corresponding roles in financial crisis governance. The entities are state/district entities, regional entities, multi-lateral entities and micro entities. With the growing interdependence of international economy and globalization, the leading power of state/district entities in international governance of financial crisis is gradually slackening, contrary to the strengthening role of multi-lateral entities like IMF. Then the dissertation puts forward a four-part general analytical frame, including the economic background of governance entities'behaviors, self-interest and bounded rationality of the governance entities, the constraint conditions of the governance entities, and the governance entities'goal of utility maximization, which are applied to a general analysis of the behaviors of international governance of financial crisis in the following part. More attention is given to IMF, the most important and authoritative entity in the international governance. As a self-interested entity, IMF tries every means to defend its prestige and fortify its invincibility in international governance of financial crisis, tending to hold back its decision-making details and its information and documents. As a boundedly rational entity, it cannot avoid considerable tardy, if not wrong, judgments and decisions in international governance. With limited governance resources such as financial and intellectual resources, IMF more often than not grudges its loans, demanding strict loan terms, and its governance plans do not seem to vary. Additionally, its relation with other entities is worth our attention: its reciprocal principal-agent relation and servant-master relation with USA; its supplier-demander relation with crisis-stricken states/districts in governance resources and actions, which actually, to be more specific, is a near unequal relation between a monopolistic supplier and competitive demanders; its rival as well as complementary relation with regional governance entities.Chapter Four focuses on international mechanism of financial crisis governance. It starts with the formation mechanism, which has common interests (for example, stable international finance as international public goods, instrumental interdependence and situational interdependence) as the realistic basis of international cooperation of crisis governance, the principle of mutual benefits as its drive, scale of economy, transaction costs and issue network as its impetus. Based on this, the details of international mechanism of financial crisis governance are analyzed, consisting of ex ante crisis governance mechanism (e.g. international monitoring, early alarming and technical mechanism), during-crisis governance mechanism (e.g. financial aid, economic stabilizing and technical aid mechanism), and ex post crisis governance mechanism (e.g. economic recovery mechanism, development aid mechanism, technical aid mechanism and loan's refund and retreat mechanism). In the dissertation, some positive effects of international governance of financial crisis are particularly mentioned and discussed, namely effect of scale of economy, confidence effect, resource leading effect, ultimate goal effect of crisis governance.Chapter Five deals with the defects in the present financial crisis governance, such as the frail international cooperation of ex ante crisis governance, the imperfection of international financial monitoring, the lack of constant and stable crisis responsive mechanism, dualism in standards of multi-lateral entities'behaviors, and the uncertainty in the effects of multi-lateral entities'behaviors, etc. The causes of the defects are explored, the most fundamental one of which is lack of effective curb on the self-interest motive and behaviors of certain entities, and absence of the governance of some governance entities, which breeds opportunism in some entities.In order to overcome the defects in the present international governance, Chapter Six introduces the concept of global governance mechanism into the research of financial crisis governance. It opens with the significance that the global economic and financial crisis triggered by the American subprime crisis has on the study of global governance of financial crisis, the definition of global governance of financial crisis, its ethical value and realistic significance. Then the chapter further discusses the structure of a new governance entity --- the global civil society organizations --- and its ways of governance, analyzing its governance behaviors with the general analytical frame introduced in Chapter Three. The implication of the global civil society organizations in global governance is prominent --- to introduce new governance concepts, to influence and change behaviors of other governance entities, to optimize financial crisis governance. The performance of global governance mechanism of financial crisis is also looked into from the validity of the model of global governance of financial crisis, the validity of international regimes and that of crisis governance.Chapter Seven proposes some advice on the strategies and tactics of global governance of financial crisis. For example, to reinforce the global mutual benefit mechanism of financial crisis by the way of the deepening of economic globalization, further development of regional economic integration and political relevancy mechanism, and the mingle of crisis governance and value creation. Some concrete suggestions on the measures that should be taken are also given, such as cautious treatment of capital account liberalization, support of the temporary capital control on crisis-stricken states/districts, an enhanced international monitoring cooperation of financial crisis, the establishment of a constant and uniform reactive mechanism of global governance, reforms of IMF and perfection in cooperation of international organizations.Chapter Eight makes a brief summary of the whole dissertation and discusses some drawbacks of the dissertation and the prospects for further research.