Beyond Grey Pinstripes

     

Asian Institute of Management

All Participating Schools

     
Asian Institute of Management 123 Paseo de Roxas
Joseph R. McMicking Campus
Makati, , 1260
Philippines
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Demographic Information

Number of full-time MBA students (2011): 

129

Number of part-time MBA students (2011): 

0

Total duration of full-time MBA program: 

16 months

MBA faculty (Fall 2010): 

77

Females as percent of student body: 

32%
Who Are the Students? See what percentage of the 2010-2011 graduating class came to this MBA program from the private sector, the non-profit sector and government jobs
 
Private Sector (90%)
 
Non-profit (5%)
 
Government (5%)


Description of MBA Program: 

AIM has three schools: 1) business, 2) development management, and 3) executive education. The Center for Development Management (CDM) is AIM’s response to the challenge of sustaining Asian development. Its mission is to mold the next generation of development leaders and change agents at the development organization level as well as in government. Its mission has been expanded to include work with emerging nations towards building a national corps of public managers who can manage public service delivery programs, including poverty alleviation projects. CDM’s degree and certificate programs seek to produce development catalysts who are capable of implementing programs with the largest impact on the poorest and focused on building strong institutions for sustainability. AIM’s executive education school has also run public and customized CSR programs. In the roster of AIM faculty are regional experts on CSR, governance, development management, environmental management, and social entrepreneurship.

AIM has been involved in social development, public policy, and governance also through its research centers: a Policy Center, a Center for Banking and Finance, as well as the innovative Center for Corporate Social Responsibility, Center for Corporate Governance, Center for Bridging Leadership, and Center for Asian Business Transformation.

The AIM-Ramon V. del Rosario Sr. Center for Corporate Social Responsibility is one of the first research centers in Asia concentrating on CSR issues. The Center’s main thrust is the management of corporate citizenship relative to the competitiveness of corporations and its impact on society. It promotes CSR through case-writing, research, survey research, program development, executive education training, and local and regional conferences. Every year the Center holds a highly successful international CSR conference. It introduced the Asian CSR Awards, the first of its kind in the region to recognize exceptional CSR programs.

The Ramon V. del Rosario Sr.-C.V. Starr Center for Corporate Governance aims to be the premier center in Asia for research, training, and advocacy in corporate governance matters. Its mission is to promote the practice of good corporate governance among private and public companies in the region.

The TeaM Energy Center for Bridging Leadership was established as a leadership training and research center that would provide capacity to address exclusion and inequities towards a society without divides. The Center aims to develop Bridging Leaders who understand societal divides, engage critical stakeholders to take ownership of the problem and its solutions, and work with them to facilitate program interventions that will bridge the divides.

In 2001, AIM was honored with the 1st Beyond Grey Pinstripes Award for Business School Innovation in Social Impact Management. In 2002, the World Bank selected AIM as its strategic partner through the establishment of the AIM-WB Development Resource Center, making AIM the world’s first private management institution to partner with the World Bank. AIM was also designated by the Asian Development Bank as a Center of Excellence and a partner in knowledge creation and management.

In 2008, AIM became a signatory to the UN Principles for Responsible Management Education (PRME). The mission of the PRME initiative is to inspire and champion responsible management education, research and thought leadership globally. The PRME seeks to establish a process of continuous improvement among institutions of management education in order to develop a new generation of business leaders capable of managing the complex challenges faced by business and society in the 21st century.

Also in 2008, AIM and the ASEAN Foundation embarked on a project to establish CSR Asia, the first independent, self-sustaining network of ASEAN corporate foundations with the ASEAN Foundation as key convener. CSR Asia is envisioned to work alongside CSR Europe, a similar network of European foundations, for future collaborations and initiatives.

As part of strengthening its academic foundation, AIM developed the research publication Journal of Asian Management, whose first issue carried the theme of CSR and governance.



How does the MBA program 'walk the talk' of social and environmental impact?: 

AIM also holds the distinction of being the first graduate school of management in the world to receive ISO 14001 Certification for its Environmental Management System. The institution-wide EMS aims to increase environmental awareness and ensure productive use of resources.

Academic Department

Course Name: Advertising and Sales Promotion Management
Instructor: Tomas Marcelo Agana III

The course is designed for those who will be responsible for planning and implementing advertising and promotions programs, most likely as company product or brand managers or advertising managers. The course deals with the principal areas relevant to planning, building, implementing and evaluation of advertising and promotions activities. Essentially, the course will ask the question “how does one communicate value effectively?” taking off from the Marketing Management course description centered on searching, defining, delivering and measuring value. The last two sessions of the course are devoted to special issues of advocacy marketing and social marketing.

Course Name: Asian Business Systems
Instructor: Charisma Malixi, Manuel de Vera

The course provides a broad overview of business and business groups in the Asia Pacific. It focuses on value chain perspective on business development, the contemporary issues, and how these might impact the business strategy in Asia in the coming years.

Building on Asia’s recent performance, especially since the 1980s, the course views Asian businesses growing on both ends—deeper into rural Asia, bringing millions of people into the fold of markets and farther out into the industrialized market economies. With the growing adoption of open economic policies, it is expected that the gap between these two realms would be gradually blurred. The course highlights the role of Asian business in leading and augmenting the process of globalization throughout the world. It also addresses some developments that surfaced in the wake of the 1997 Asian financial crisis and the emergence of WTO regime.

The course focuses on certain themes, countries and industries to illustrate its main message. The curriculum begins with an introduction to the concept of value chain and its application. It then focuses on selected facets of business in Asia viz., products and product cycle, R&D and technology, business finances, and business organizations. The course draws upon selected cases and especially focuses on industries that have played an important role in the growth of Asian businesses, e.g., automotive, electronic, garments, and software. Likewise, it focuses on industrialization models of certain countries, viz., Japan’s business leadership in Asia, the rise of the People’s Republic of China as the manufacturing powerhouse of the world, and the case of India as the global processor of information and know-how. It reviews the contribution of Hong Kong (China) and Singapore in catalyzing business development in Asia. It describes Asia’s interface with the process of globalization and spells out its future role. It also identifies future challenges of Asia in the form of infrastructure, energy, and environment. The course has sessions that discuss CSR and sustainable development in Asia, cultures in Asia, and the role of business in Asian living and working conditions.

Course Name: Banking with the Poor
Instructor: Ronald Chua, Maurino Bolante

Finance and financial services are most commonly associated with the rich and the middle class. That it would be viable to provide the poor with banking and other financial services was thought of as improbable. For one, the poor---perceived as a homogenous group---are generally considered to live a hand-to-mouth existence and thus, have no ready cash to deal with. For another, the poor are by and large also thought of as not bankable.

However, in its more than three decade of existence, microfinance has shown that the poor need access to credit and other financial services and are bankable. More and more---though not all---microfinance organizations are breaking even or earning a profit. Millions of dollars are being poured into micro lending institutions by foundations, individuals and private investors. In fact, a growing group of financial institutions see microfinance as a big market opportunity. Multinational banks like ABN Amro, Deutsche Bank, Standard Chartered, HSBC, Citigroup and ICICI (in India) have begun focusing on microfinance, considered the hottest thing in philanthropy and economics, and perhaps soon, even in the investment world, in a serious way. Not a few talented professionals from finance, consulting and law see microfinance as a viable career opportunity.

Based on the World Bank’s World Development Indicators 2006, there are more than 1 billion people living below the international poverty line, earning less than $1 per day worldwide. Of this figure, only about 50 million people are served by microfinance organizations. Since the Microcredit Summit held in Washington D.C., USA on February 24, 1997, microfinance has become a byword in the fight to halve global poverty by 2015.

In the course Banking with the Poor, students will grapple with the opportunities, challenges, and issues in providing financial services to low income groups, small entrepreneurs, and other so-called high-risk groups. Students will get a more in-depth look into the situation of low-income groups and micro and small entrepreneurs, and the roles that financial services can play. They will get to know the poor, their different levels of poverty, how they cope with and reduce risks, how they manage to live or make a living. Students will be able to learn about the poor’s household financing, cash management behavior, and their financial service needs. They will review different models and approaches that have emerged, learn from their successes or failures and evaluate their effectiveness and appropriateness for different market segments. Finally, students will be exposed to the day-to-day issues of banking with the poor including credit risk management, price setting and managing financial and operational performance.

The course aims to provide students with the basic inputs for developing their own set of parameters for setting up, managing and dealing with microfinance and special lending institutions. Students with an interest in new products, services and market segments for retail financing with varied organizational perspectives—banks, private lending institutions, corporate foundations, can benefit from this course.

Course Name: Brand Equity Management
Instructor: Jose Miranda

Brand Equity Management is the art and science of creating brand value for various stakeholders and thereby building a long-lasting relationship with the brand. It requires taking a cohesive, integrated, and long-term view to building brand value, focusing on the key marketing strategies and techniques for reinforcing the distinctive positioning of the brand towards its target segments.

Building, reinforcing, and/or revitalizing brand equity involves innovative approaches to focusing on key target segment(s), providing said target with a differentiated value, creatively delivering the value through the synergized elements of the marketing mix and brand contacts, and evoking a cut-through persona or identity for the brand. The course discusses social marketing and a case on UNICEF.

Course Name: Bridging Leadership
Instructor: Nieves R. Confesor

The course discusses the following topics:

1. Theory of leadership for societal equity

2. Bridging leadership capital

3. Understanding inequities

4. Discerning and visualizing personal response

5. Moving from personal to shared response: Internal co-ownership

6. Engaging and convincing external stakeholders

7. Issues and partnerships in (a) protecting the environment, (b) promoting health, (c) securing universal access to education and literacy, and (d) livelihood generation

8. Building, managing, and sustaining partnerships

9. Sustaining oneself as a bridging leader

Course Name: Business Economics
Instructor: Federico Macaranas

The course discusses the economics of industry and firm, covering competitive strategy and modern industrial organization, especially as these are shaped by globalization and market-led or government-sponsored regional integration in Asia. The course tackles ethics in the reading “Parties, Scandals and Directors Behaving Badly.”

Course Name: Consulting Engagement Cycle
Instructor: Ma. Elena Herrera, Gulliver Go

This elective is designed for students who are (1) considering a career in the consulting field after graduation, (2) interested in applying and adapting the consulting process to their projects, and (3) expecting to engage and employ consultants in the near future. The course has sessions on professional ethics and consulting for NGOs/non-profit organizations.

Course Name: Corporate Public Communication
Instructor: Sonny Coloma

This course focuses on a most important senior management responsibility—effective stakeholder relations. Stakeholders constitute a corporation’s publics. Communication is the primary medium for managing stakeholder relations. Even without a crisis, a corporation needs to cultivate harmonious relationships with its vital publics: government that regulates business, the community that hosts its facilities, the stockholders that invest capital, and the employees that deliver its goods and services. A company that nurtures healthy stakeholder relationships is better prepared to deal with challenges. The course offers sessions on cause-oriented marketing and advocacy advertising, and discusses cases with an ethical dimension such as the Tylenol poisoning and the Union Carbide disaster in India.

Course Name: Corporate Social Responsibility
Instructor: Mary Chua

This class explores Corporate Social Responsibility (CSR) to provide development workers with knowledge and strategies to mobilize resources from CSR programs for development work. The first half of the class will look at CSR from the corporate perspective, the second half from the development perspective.

Course Name: Credit Rating
Instructor: Emmanuel Leyco

Credit rating is the practice of assigning codes to denote in letters, or in combination with numbers, the risks associated with an investment instrument or its issuer. Recent credit problems in the US, particularly those related to the subprime mortgage financing, prompted the government and investors to scrutinize the role and practice of credit rating agencies like Standard and Poor’s, Moody’s and Fitch. In addition, the Bank for International Settlements promulgates the Basel II Framework that requires the use of credit rating in establishing the standards that govern capital adequacy of internationally active banks. The course will examine the risk assessment criteria and approaches of credit rating agencies. Students will discuss the global financial meltdown, the US subprime crisis, Lehman Brothers, and AIG.

Pages

Type of Offering

From State-Owned Enterprises to World Class Competitors: Creating Innovative and Entrepreneurial State-Owned Firms
Date: November, 2009

The conference featured esteemed public leaders and CEOs from China, India, Indonesia, Malaysia, Philippines, Thailand, and USA who have been successful in reforming state-owned enterprises (SOEs) to sustain growth and become more competitive in the face of political changes and increasing globalization. Two keynote addresses touched on State-Owned Enterprises: The Philippine Scenario and Optimal Capital Structure: An Essential Goal for State-Owned Enterprises. The roundtable discussions tackled (1) From State-Owned Enterprises to World-Class Competitors: Implications for Business Model, (2) The Role of Government in Transforming State-Owned Enterprises to become Global Competitors, and (3) Privatization of State-Owned Enterprises: Challenges and Lessons Learned.

Forum on the SWS 2009 Enterprise Survey on Corruption and Anti-Corruption Strategies
Date: February, 2010

The annual renewal of local business permits and licenses is easier now compared to three years ago, according to 70% of enterprise managers in Metro Davao, 67% in Cagayan de Oro/Iligan City, 61% in Metro Cebu, 48% in CALABA, and 47% in Metro Manila, based on the 2009 SWS Surveys of Enterprises on Corruption. The following are other survey highlights:

1. Managers consider public sector corruption to be high and stagnant. The farther from the local level, the more that corruption happens.

2. Sincerity in fighting corruption varies across agencies.

3. On government efforts to fight corruption, half of managers see improvement in transparency in bidding for a government contract.

4. The proportion of enterprises solicited for a bribe was below the 2008 peak, but still a high 60%.

5. Majority of managers find transparency in local government procedures. At least two-thirds do not use intermediaries in local business permit renewals.

The Increasing Significance of Venture Capital in Southeast Asia
Date: October, 2009

AIM conducted this forum with Visiting Professor William Scheela, a professor at the Department of Business Administration, Bemidji State University, Minnesota State University System, as main lecturer and facilitator. Other speakers were local venture capitalists Mr. William Valtos, senior managing director of Investment and Capital Corporation of the Philippines; Ms. Gladys Enhaynes, associate director of Investment and Capital Corporation of the Philippines; and Mr. Martin Lichauco, managing partner of Global Gateway Venture Capital. Dr. Scheela presented an overview of venture capital in the U.S. and Asia. In 2007, Asia had about 1,800 venture capital firms, 5,000 venture capitalists, and US$189 billion funds managed. He concluded that (1) venture capital in Asia is less developed; (2) an IPO is more difficult for an exit strategy; and (3) there is lack of fully developed institutions handling venture capital and of professional managers handling family businesses. Some encouraging trends in venture capital are (1) larger funds are being raised and larger deals being done; (2) more Western venture capitalists are entering Southeast Asia; and (3) there is an initiative to move from country to regional funds.

Does Microfinance Alleviate Poverty? A New Stocktaking
Date: November, 2010

Does microfinance help alleviate poverty? Unsubstantiated claims, anecdotal evidence, and conflicting empirical findings underpin many of the intense, public debates about the effectiveness of microfinance. A new report published by Grameen Foundation takes stock of recent empirical studies of the social and economic impact of microfinance. What do these new studies tell us? What have been the important methodological advances over the last few years? Is there an emerging consensus, based on rigorous empirical evidence, on the impact of microfinance on the lives of its intended beneficiaries? Ms. Kathleen Odell, assistant professor of economics of the Brennan School of Business, Dominican University, and the author of the report, presented via videoconferencing the key findings from her critical appraisal of microfinance impact studies that have been conducted since 2005. It is an update of Nathanael Goldberg’s 2005 Grameen Foundation report, “Measuring the Impact of Microfinance: Taking Stock of What We Know,” a critical review of the first generation of impact studies published between 1970 and 2005. The discussants—Mr. Goldberg himself and AIM professor Ron Chua—shared their perspectives on Prof. Odell’s findings, reflecting on their technical aspects and practical implications.

Lecture on US Economic Policy Towards Asia
Date: September, 2009

Dr. Marcus Noland, deputy director of the Peterson Institute for International Economics, noted that Asia is a key and unique player in the global economy. Asians’ dissatisfaction with the status quo and vast resources that they can use to their benefit make them a power to contend with. He observed the growing sentiment of regional identity among Asians which is fuelling even more this sense of regional importance. In conclusion, he gave five points: (1) the US and Asia have a common stake in each other’s continuing prosperity; (2) most issues that the two are facing are derivatives of global or bilateral concerns; (3) the US’s first priority remains the financial mess it is in; (4) the US’s next concern is to get its bilateral trade talks on track; and (5) Asia is a key player in the global scenario.

Impact of the 2008-2009 Food, Fuel, and Financial Crises
Date: September, 2010

Dr. Andrew Mason, Lead Poverty Economist of the World Bank, presented the preliminary results of a new study of the labor market impact on the series of crises. Using the gender lens as a research tool, the study examined the wage and employment effects of the crises, how these effects are distributed across demographic and socio-economic groups, and how such effects evolved over time. Studies showed that the effects of the crises on unemployment and labor force participation were not large. The less privileged were the most affected by the crises especially in terms of unemployment, but as the crises continued, even the non-poor experienced negative impacts in terms of real wage effects.

AAAIM LEADers Forum
Date: January, 2010

The Alumni Association of AIM, Philippine Chapter and the AIM Alumni Relations Office regularly hold the AAAIM LEADers Forum, an informal engagement featuring alumni leaders. L (Leadership), E (Entrepreneurship), A (Advocacy), and D (Development) is a project conceived to provide unique opportunities to AIM alumni to make meaningful connections and share their leadership experiences with an intimate group of fellow leaders. The series has had as guest speakers (1) Regina Paz Lopez, managing director of ABS-CBN Foundation and pioneer in media-based philanthropy; (2) Victor Jose Luciano, CEO of Clark International Airport; and (3) Gabriel Paredes, president and CEO of Universal Storefront Services Corporation.

U.S.-Philippine Economic Ties in a Rapidly Evolving Region
Date: September, 2010

The guest speaker, Mr. Kurt Tong, is the Economic Coordinator for the Bureau of East Asian and Pacific Affairs, organizing bureau-wide efforts on economic policy issues. He is also U.S. Senior Official for the Asia-Pacific Economic Cooperation (APEC), managing all aspects of U.S. participation in that organization. He discussed how the US views Asia economically, including a number of regional economic efforts like APEC, ASEAN, and the Trans-Pacific Partnership. He also touched on the role of the Philippines in these regional economic initiatives.

The Khmer Rouge Tribunal and its Implications on International Justice: The Tribunal as a Court of Law and a Court of Public Opinion
Date: February, 2010

The forum featured Theary C. Seng, the founder and board president of the Cambodian Center for Justice and Reconciliation, and the founding president of CIVICUS: Center for Cambodian Civic Education. After a two-year stint as a commercial lawyer, she joined in March 2006 the Center for Social Development, a local human rights organization based in Phnom Penh, as its executive director until her removal in July 2009 by a politically motivated court injunctive order.

Can Conditional Cash Transfers (CCTs) Reduce Poverty While Promoting Education and Health?: Experience from the Field
Date: June, 2010

The seminar was a videoconference between AIM and the London School of Economics (LSE) and Political Science. CCTs are designed to provide short-term assistance to extremely poor households. Dr. Francesca Bastagli of LSE presented her findings from the Latin American and Brazil experiences. Research shows that despite difficulties in regulating income, CCTs alleviated the rate of poverty in Brazil. Some CCT programs were able to improve school enrollment in public schools, child health, and nutrition. Undersecretary Luwalhati Pablo of the Department of Social Welfare and Development discussed how CCT is implemented in the Philippines. Seventeen regions of the country have already been aided with primary education and family development sessions. Luisa Fernandez of the World Bank explained the effects of the program, comparing and contrasting studies between the Philippines and Latin American countries.

Water Management: Good Practices and Lessons Learned in Asia
Date: February, 2010

The guest speaker was Dr. Seetharam Kallidaikurichi E., founding director of the Institute of Water Policy. One good indicator of a progressive country is its orderly water and sewage system. The work remains daunting with the fact that millions people worldwide lack access to safe water. Asia Pacific countries, particularly China, India, Indonesia, Vietnam, Pakistan and the Philippines, face significant water challenges. Dr. Seetharam said that if a country wants to progress, its leader must put water as one of its top priorities. A reliable network of water systems provides a lot of socioeconomic benefits.

Ramon Magsaysay Award Lecture
Date: August, 2009

Indian social activist Deep Joshi, 2009 Ramon Magsaysay Awardee for Peace and International Understanding, gave a lecture to AIM students. He reiterated that development work is a noble career. Although he has management and engineering degrees from the Massachusetts Institute of Technology, Mr. Joshi returned to India to work with the rural poor, driven by his belief that every person has a responsibility to contribute to the well-being of societies.

Islamic Banking and Finance Seminar
Date: October, 2009

The Islamic finance industry has rapidly expanded beyond Muslim countries. As of 2008, more than 300 Islamic finance institutions are operating in 75 countries and managing assets estimated at US$900 billion. This is projected to reach US$2 trillion in 2010 with an annual growth of 15% to 20%. In the Philippines, the monetary authorities are already preparing for the establishment of an Islamic banking system to enable banks and financial institutions to take advantage of these opportunities. The seminar topics included (1) History and Development of Islamic Banking and Finance, (2) Understanding the Requirement of Shariah Laws, (3) Roles and Functions of the Central Bank/Legal and Regulatory Framework, (4) Roles and Responsibilities of Shariah Advisors, (5) The Basic Difference Between Conventional and Islamic Banking System, (6) Islamic Banking Products, (7) Financing Models, (8) Introduction to Islamic Money Market and Capital Market, (9) Introduction to Islamic Insurance, and (10) Operational Issues in Islamic Banking: Accounting Treatment, Risk Management and Audit.

Risk Management Forum
Date: September, 2009

The AIM-Gov. Jose B. Fernandez Jr. Center for Banking and Finance conducts this forum with a different speaker and topic every quarter in cooperation with the Professional Risk Managers’ International Association (PRMIA) Philippines.

Roundtable Discussion on Updates to the Asian Development Outlook 2009
Date: September, 2009

AIM and the Asian Development Bank (ADB) co-presented this roundtable discussion with the theme “Broadening Openness for a Resilient Asia.”Developing Asia is proving to be more resilient to the global downturn than was initially thought. The positive news also comes with an insight that the developing economies of Asia should broaden the scope and structure of their openness to reduce vulnerability to future external shocks. Mr. Joseph Zveglich Jr., Assistant Chief Economist of the ADB, outlined the key messages of the updates:

• The global economy is in its worst downturn since the 1930s;

• The collapse in global demand hit Asia’s exports;

• Stimulus measures supported a V-shaped recovery in regional growth;

• Asia’s recovery faces downside risks; and

• Policies to broaden openness can boost Asia’s resilience.

To reduce future shocks, the ADB promotes broadening the scope and structure of the region’s flows of trade, capital, and workers by strengthening intra-regional trade, effectively managing financial globalization, and maximizing the benefits from labor mobility.

Currency Wars, Capital Flows, and Emerging Market Consequences
Date: November, 2010

The main speaker of this forum is Frank Warnock, Visiting Professor at AIM and the Paul M. Hammaker Research Associate Professor of Business Administration at the Darden School of Business, University of Virginia. Many world leaders are worried about potential currency wars that could unleash a wave of capital flows and fuel a massive flow of funds to emerging markets in search of higher returns. How should emerging economies respond to such inflows? What are their policy options, and what are the likely consequences of their policy choices? What do we know of previous episodes of surges in capital inflows? In this forum, Prof. Warnock drew on results from his ongoing research with Dr. Kristin Forbes (MIT Sloan) to shed light on periods of abnormal capital flows – surges, stops, flights, and retrenchment – and their relationship with the current period of currency debates.

Forum on Climate Change
Date: August, 2009

The forum featured Dr. Ben S. Malayang III, president of Silliman University, a noted expert in the field of environmental sustainability. His research interests span different issues and topics relating to environmental policy and governance, among them policies on forests, fisheries, water, biodiversity, biotechnology, mining, environmental education, philosophy, and ethics.

Philippine Health Care: A Diagnostic and Management Dilemma
Date: March, 2010

Kenneth Hartigan-Go, MD, president of the Philippine Society of Experimental and Clinical Pharmacology and former government official, exposed the reality behind the Philippine healthcare system, which, despite good policies, system has failed due to lack of synergy between national and local government health services and the mismatch between academic health and health sector needs. Dr. Go analyzed the Health Sector Reform Agenda (HSRA) in a macro and micro context, focusing on some rarely discussed components of health such as governance, financing, regulations, and health service delivery. Problems arose from weaknesses observed in HSRA such as absence of legal protection and lack of involvement of private healthcare sector players. Dr. Go recommended reforming the management of the healthcare system, specifically to increase financial risk protection. Reforms should be based on models of best practices of healthcare in Asia. Singapore, Vietnam, and China have already implemented change through centralizing policies and re-focusing on rural health management.

Forum on Islamic Banking and Finance
Date: August, 2010

Mr. Badlisyah Abdul Ghani, CEO of CIMB Islamic Malaysia, gave students an overview of Islamic Banking and Finance. Mr. Ghani has played a major role in the development of best practices in this field. He talked about the impact of the global crisis on Islamic financial services; Islamic banking and finance trends in Malaysia and other countries; and the prospects of Islamic banking in attracting non-Muslims customers.

Doing the Right Things Right for SMEs
Date: January, 2011

AIM hosted this bank forum, which addressed certain issues hounding SMEs—(1) access to funds being referred to as the opportunity of both lender and borrower to meet specific needs; (2) financial governance, which is the wise management of financial resources by SMEs to make them profitable and sustainable; and (3) operational excellence to make SMEs adhere to their mission and vision, and to meet the needs of their chosen market. Mr. Greg Navarro, FINEX Foundation president, emphasized the need to help SMEs succeed because the segment is a major source of economic growth and revenue for service providers. Ms. Corazon Conde, group head of ADFIAP Consulting, stressed the large market potential for SMEs that could translate to sustainable profit. Mr. Benel Lagua, president and COO of SB Corporation, discussed risk-based lending for SMEs which seeks to overcome the collateral or “pawnshop” mentality in SME finance. He reiterated a holistic approach to address five problems in SME lending which are (1) poor financial literacy, (2) poor governance, (3) bank’s collateral-based lending, (4) addressing the central bank’s requirements for BASEL 1, 2 and 3; and (5) SMEs’ lack of capital.

Pages

A Compendium of Policy Instruments to Enhance Financial Stability and Debt Management in Emerging Market Economies
Author(s): Mendoza, Ronald U., PhD

Graduating from their checkered histories of financial instability and debt-related problems is a key policy objective in many emerging market economies. The global financial turmoil that erupted in 2008 underscores the importance of this issue once again. This article maps out some of the key factors that contribute to this challenge, and then uses this map to develop a possible taxonomy for the array of proposed (and some already existing) policy instruments designed to respond to them. By relating each instrument to the particular aspect(s) of the broader policy challenge, the taxonomy helps to clarify some of the differences, similarities, as well as the potential value-added of these instruments. The analysis herein suggests that instruments that could help increase the efficiency of risk management strategies (such as growth- or GDP-indexed bonds) and enhance the effectiveness of debt management, growth and development policies (such as a stability and social investment facility or SIF) deserve further consideration in order to promote more sustained financial stability and enhanced debt tolerance in the emerging markets.

Journal Title: CESifo Economic Studies Volume: Issue 2 Edition: Volume 55 Page Numbers: 353-397
A Proposal for an Asian Rice Insurance Mechanism
Author(s): Mendoza, Ronald U., PhD

The food price shocks that erupted in 2008 revealed the vulnerability of many developing countries, notably those in Asia, from volatility in the international foodgrain markets. For instance, by March of 2008, the price of traded rice had increased by well over 70 percent compared to year-before levels. Addressed primarily to policymakers in the Asian region, this paper outlines a proposal for a regional risk sharing arrangement—an Asian rice insurance mechanism (ARIM)—which could form part of the region's long-term response to the food security issue. The ARIM could serve as a regional public good by helping countries in the region more efficiently manage the risks related to volatile rice production and trade, arising from emerging structural factors such as the rising and evolving food demand of large Asian countries like China, India and Indonesia, as well as the effects of climate change (and climatic shocks) on the agricultural sector more broadly.

Journal Title: Global Economy Journal Volume: Volume 9 Edition: Issue 1 Page Numbers: 1-31
Subjective Perceptions of Financing Constraints: How Well Do They Reflect Credit Market Conditions?
Author(s): Tiongson, Erwin H.R, PhD

Many cross-country enterprise surveys have recently become widely available. They are the basis of rankings of dimensions of the business environment in emerging markets and developing economies. Although the literature is concerned about "perception bias", there has been little effort at analyzing whether subjective appraisals of credit market constraints correspond to objectively measurable indicators. This note assesses a predominantly used subjective measure of "access to finance" and relates it to indicators of financial development and credit availability and costs. It finds a significant relationship between subjective and objective indexes of financing constraint but the relationship varies substantially across indicators.

Journal Title: Emerging Markets Review Volume: Volume 11 Edition: Issue 2 Page Numbers: 98-105
Trade-induced Learning and Industrial Catch-up
Author(s): Mendoza, Ronald U., PhD

This article develops a model of trade-induced learning whereby both domestic and cross-border learning externalities could drive long-run growth. This framework is used to synthesise the emerging empirical evidence, revealing how trade-induced learning could underpin the mechanics behind trade and growth in at least three important ways: first, trading matters, as firms might be able to increase their productivity due to export and import linkages with buyers and suppliers; second, whom you trade with matters, as richer and more technologically advanced trading partners offer more scope for trade-induced learning; and third, what products you trade matters.

Journal Title: Economic Journal Volume: Edition: Page Numbers: