Asia and Africa in the Global Economy

Question: Describe about the Asia and Africa in the global economy? Answer: Summary In the Political Economy Origins of Financial Markets in Europe and Asia by Svetlana Andrianova, Panicos Demetriades and Chenggang Xu, in the year 2010, different economic structures of various countries throughout the continents of Europe and Asia and the impact of such economic structures upon the future aspects of those countries in relation to politics, finances and institutions. In this context the major concerning subject matter is the monopoly in the financial system of a country and also other major factors in relation to the financial system of a nation. In this article various historical evidences from Amsterdam, London, Hong Kong and other countries are specifically discussed in respect of the relation with the role of the concern government in establishing necessary measures for the purpose of economic development. A consensus has been established in relation to the financial growth especially for the purpose of achieving long term goals, it suggests that good functioning baking system and capital market plays a major role in enhancement of the economic structure of a country. The economic structure of the countries differs from one nation to another but the role of capital market in growth of financial system is more or less same as of most of the countries. In the economic culture of London and Amsterdam, a large number of trading monopoly especially to the products is very much noticeable. In this financial system monopoly plays the most significant role. A portion of this monopoly is created by the virtue of the financial system itself for the betterment of public finances; in this regard the system is quite responsible for the main financial innovations, apart from that it also assists to strengthen the rights of the investors as to their properties. In Honk Kong, where the financial system is not very much different to that of the European countries, in this country the model of financial development is mainly based on banking system, a huge monopoly as to the banking system along with close relations to both the governments of great Britain as well as the Chinese one, arranges to economical international trade, performed a same kind of role. The context intends to make some contribution to the economical development by the way of investigating economical origins with relation to political attributes of some of the most triumphant economical marketplace throughout the Asia and Europe. The context concentrated to provide historical evidences mainly from the city London but it also emphasizes upon the aspects of financial system of Amsterdam and Hon Kong, especially the role of the government as an essential part of the financial system. The emergence of the economical system has not appeared in impulsively that secured the rights of the property owners but it was not enough for the development of the financial system of a country (Isard, 2005). From various ancient sources it has been originated that the development aspects of the stock market of London begun from the 17th century and it continues till the mid of the 18th century, it emerged the financial market of London. The rights relating to monopoly has been granted by the public sector, primarily by the Monarch and later on by the Parliament. The public sector was allowed to take the long term loans from the leading joint companies in against their monopoly position. In this article the role of the foreign trade in the economical development is also highlighted, and the leading joint companies who were engaged in conducting their business throughout the world are also taken into consideration. The development of the trading stock of London in the period of 1661 to 1773 has been elaborately discussed under the purview of this context. The rights of monopoly were granted mainly upon three major companies of that era those are; EIC, RAC, and Hudsons Bay Company. Among al l of these three companies East India Company utilized the scope of such rights relating to monopoly to a very good extend, this company used to conduct its business throughout the world, mostly in the sub continental countries (LaBrosse, Olivares-Caminal Singh, 2011). In all the time government played an important role in field of economic development, in containing the stock market of London in the period of 1670 to 1680, the government bodies plays the most important role, though the government had to recognize the monopoly system as well as the rights of monopoly to some companies but it was also for the development of the public sector, as by securing the position of the companies as their rights of monopoly the government ensured a huge amount of loan for a longer term from those companies, which was much required at that point of time for the government to conduct its procedure and regulations as to the public affairs. Monopoly was granted to certain extend that it would not damage the basic economic structure of the nation. In the year 1688 a glorious revolution took place in the financial system of England, because of North and Weingast, it imposes some major changes into the constitutional provisions which shifted the power from the Monar ch authority to the hands of the Parliament. Monarch created an ambiguity among the aspects relating to the wealth of the company and the principals laid down by the Crown, it was very much responsible for the revolution of shifting of powers from the hands of the Monarch system to the hands of the Parliament (LaBrosse, Olivares-Caminal Singh, 2011). It was criticized by many experts that the period of 16th century was very much optimistic in relation to the financial growth of the companies and was not enough satisfactory for the public sectors. In spite of that fact the economical conditions went through all the barriers and established a well formed economic system after the migration of powers from Monarch to Parliament (Claessens, Herring, Schoenmaker Summe, 2010). Amsterdam, London and Honk Kong these three major and big cities of the global era consisting the characteristic of monopoly in banking system but the economical dimensions are not the same it differs from each other to a wide extend (Dept, 2014). Appraisal After the above form of summary of a great article of economical system it can be gathered that the Political Economy Origins of Financial Markets in Europe and Asia by Svetlana Andrianova, Panicos Demetriades and Chenggang Xu, is quite beneficiary for the construction of economic diagram of a country, it almost revealed all the hidden factors relating to financial system of countries of Europe as well as Asia. In this context some very useful information relating to the ancient sources of financial system has been elaborately discussed, which are till date very much authentic as to its implementation and construction of economical dimensions (De Vries, Cruz Mokyr, 2010). The article is also well consisted about the factors relevant to the development of economic sector of a country, especially the countries situated in the region of Europe and to some extend of the region of Asia as well. But depending upon only two economic structures of two different continents is not satisfactory (Spilsbury, 2012). For the purpose of constructing a global economic structure it is necessary to take into consideration most of the countries of near about all continents. Global perspective is much wider in economical sense than the theory dealing with only two continents consisting along with just few major countries like England and Honk Kong. That does not signify the comprehensive nature of the analysis, as to its applicability to the future economical factors (DeMartino, 2000). Political circumstances play the most important role in the field of development of economic structure of a country. The policies of the concern government relating to the economical development of a country put a huge impact upon the financial system of that country. Not only have the policies all the steps taken by the concern government of a country proved an impact upon the financial structure of that countrys economical system. But only the historical evidences are not conclusive to draw a wider picture of global economy, historical and ancient evidences are one of the most important elements in constructing a economic diagram of a particular country but only this elements are not enough for establishment of a good economic principal relating to the financial development of a country. A revolution created in that era suggesting that the power of the monarch have to be shifted from their hands to the hands of the Parliament, but the major principals related to the economical cond itions of that revolution has not been elaborately discussed, for the purpose of drawing a complete scenario of that era relating to the migration of power from monarch to parliament it is necessary to gather all the relevant information relating to such revolution. The financial institutions of all the countries are quite similar but not the same at all aspects, it differs from country to country though the countries belong from the same continent. For that reason the basic structure of all the economic system of different countries are never going to be same, as the factor relating to the economic development are different from one country to another (Aryeetey, 2003). Apart from that the article is mainly focused on the ancient economical structure of the countries of Europe and Asia, these principals are very much ancient in nature and in the present era the financial system of every country has changed a lot and does not even consider the monopoly of any company upon the economic structure of that country, neither the principals of capitalism nor the principals laid down by the crown for that time being (Sawyer, 2005). In spite of all these facts and conditions the evidences provided by the article relating to the financial system is very much acceptable along with some minor modifications. References: Aryeetey, E. (2003).Asia and Africa in the global economy. Tokyo: United Nations University Press. Claessens, S., Herring, R., Schoenmaker, D., Summe, K. (2010).A safer world financial system. Geneva: International Center for Monetary and Banking Studies. De Vries, J., Cruz, L., Mokyr, J. (2010).The birth of modern Europe. Leiden: Brill. DeMartino, G. (2000).Global economy, global justice. London: Routledge. Dept, I. (2014).Republic of Kazakhstan. International Monetary Fund. Isard, P. (2005).Globalization and the international financial system. Cambridge, UK: Cambridge. LaBrosse, J., Olivares-Caminal, R., Singh, D. (2011).Managing risk in the financial system. Cheltenham, UK: Edward Elgar. Sawyer, M. (2005).The UK economy. Oxford: Oxford University Press. Spilsbury, R. (2012).Global economy. Chicago, Ill.: Heinemann Library.