Financial Inclusion, Mobile Banking, and Remittances in Mexico and the Philippines

Journal of Political Risk, Vol. 2, No. 1, January 2014.

María Elena Labastida Tovar, Ph.D.
Universidad Anáhuac México Norte

Almendra Ortiz de Zárate, MsC.
Universidad Anáhuac México Norte

Lilianne Isabel Pavón, Ph.D.
Universidad Anáhuac México Norte

Priscilla A. Tacujan, Ph.D.
Corr Analytics, Inc.

Abstract

Figure 1.  Annual Economic Growth in Mexico, from 2005 to 2012 (in percentages). Data Source: National Institute of Statistics, Geography and Informatics (INEGI), accessed July 2, 2013, http://www3.inegi.org.mx/sistemas/mexicocifras/.

Figure 1. Annual Economic Growth in Mexico, from 2005 to 2012 (in percentages). Data Source: National Institute of Statistics, Geography and Informatics (INEGI), accessed July 2, 2013, http://www3.inegi.org.mx/sistemas/mexicocifras/.

Remittance senders evaluate the costs and benefits of money transfer services. Two conditions are of paramount interest: low costs and accessibility of use for the sender and receiver. The use of mobile phones (a ubiquitous technology) for sending money, paying for services, and banking is increasingly seen not only as the best option for remittances, but the only one that can fulfill the two conditions above. Due to its ubiquitous nature, access to financial services through mobile phones is growing exponentially, expanding access to more consumers, and readily available to decrease the costs of transferring money globally. This study addresses the use of this ubiquitous technology in two emerging markets: Mexico and the Philippines. It evaluates the impact of the regulatory framework on mobile financial services to provide consumers with greater access to financial services. Continue reading

Shale Gas Race: Political Risk in China, Argentina and Mexico

Journal of Political Risk, Vol. 2, No. 1, January 2014.

Global shale gas basins, top reserve holders. Source: Reuters, Catherine Trevethan.

Global shale gas basins, top reserve holders. Source: Reuters, Catherine Trevethan.

By Igor Faynzilbert, CFA

As the world continues to embrace cleaner and more efficient sources of energy over the next 25 years, natural gas stands to gain a large market share at the expense of less efficient and more pollutant coal and wood. The United States is currently the biggest winner from hydraulic fracturing and horizontal drilling that allow significantly increased production of shale gas. However, China, Argentina and Mexico are also potential gainers from these new technologies if they manage to overcome political and infrastructure challenges that have considerably slowed development of new gas fields. Continue reading

Election Boycott will Weaken Thailand’s Democrat Party and the PDRC

Journal of Political Risk, Vol. 1, No. 8, December 2013.

By Anders Corr, Ph.D.

Anti-government protesters attend a rally outside Government House on December 9, 2013 in Bangkok, Thailand. Photo credit: Sira Anamwong.

Anti-government protesters attend a rally outside Government House on December 9, 2013 in Bangkok, Thailand. Photo credit: Sira Anamwong.

Thailand’s opposition Democrat Party, as well as the supporting People’s Democratic Reform Committee (PDRC) protest movement, will weaken due to strategic missteps of boycotting elections and attempting to block other parties from registering with Thailand’s electoral commission. It should be obvious that elections and elected position are a potent source of influence for both political parties and social movements. Boycotting elections invariably backfires as a strategy because it increases distance between the challenger who wields the strategy, and the electoral source of influence. Election boycotts led to landslide victories for incumbents in Trinidad and Tobago (1971), Jamaica (1983), Burkina Faso (1991), Ghana (1992), Togo (1993), Ethiopia (1994), Mali (1997), Algeria (1999), Gambia (2002), Guinea(2003), Azerbaijan (2003), Iraq (2005) and Venezuela (2005). The incumbent also won the boycotted 3 April 2006 elections in Thailand. These were later invalidated and followed by a coup, resulting in the instability that continues in Thailand today. As in prior boycotts, expect the incumbent political party, in this case Prime Minister Shinawatra’s Pheu Thai, to take advantage of the challenger’s absence to consolidate the Pheu Thai’s parliamentary majority and public image. Expect increased dissatisfaction among the opposition and military, and resulting political instability.1 Continue reading

Rise of Environmental NGOs in China: Official Ambivalence and Contested Messages

Journal of Political Risk, Vol. 1, No. 8, December 2013.

By Ruge Gao

Figure 1. Registered NGOs (Civil Organizations) in China 1988 to 2009. Data source: Xu Ying and Zhao Litao, 2013.

Figure 1. Registered NGOs (Civil Organizations) in China 1988 to 2009. Data source: Xu Ying and Zhao Litao, 2013.

With China’s impressive economic growth over the past few decades has come an environmental cost that reaches from the countryside to the capital.[1]  While some Chinese economists believe the lack of environmental regulation encourages uninhibited growth, the Chinese State Environmental Protection Agency and State Statistics Bureau have produced statistics that indicate that environmental damages have decreased growth by three percent.[2] Triggered most prominently by the 1998 Yangtze River Floods, the number of Chinese environmental non-governmental organizations (ENGOs) began growing around 2000 and experienced explosive growth within the last decade. According to Chinese Ministry of Civil Affairs statistics,[3] in 2008 China had approximately 212,000 social groups, with 5,330 being of the environmental variety. Many Chinese ENGOs are in the public eye, but must simultaneously satisfy international donors and local government officials in order to survive. Continue reading

Political Risk to Investment in Iran: Sanctions, Inflation, Protectionism, War, Bonyads, and the IRGC

Journal of Political Risk, Vol. 1, No. 7, November 2013.

Figure 1: Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013. Data Source: The Government of the Islamic Republic of Iran News.

Figure 1: Foreign Investment in Iran and its Neighboring Countries, March 19, 2012-March 19, 2013. Data Source: The Government of the Islamic Republic of Iran News.

By Reza Yeganehshakib

Despite a tumultuous recent political history that includes revolution, war and sanctions, relations between Iran and the West are improving and Western investors are increasingly interested. But, Iran’s politics cause sanctions, and the economy suffers from inflation. Protectionist laws are on the books, and in some cases economic crimes are punishable by death. Regardless of warming relations with the West, Iran has in the past reneged on its agreements, and war is still a risk with non-Western bordering countries and regional powers. The Iranian Revolutionary Guard Corps (IRGC) has nationalized foreign investments in the recent past, and the politically powerful revolutionary foundations known as Bonyads control large segments of the most lucrative investment sectors. Continue reading