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Ebook A Global Value Chain Approach to: Food, Healthy Diets, and Childhood Obesity
Submitted by puput on Fri, 12/04/2009 - 03:51Today childhood obesity is widely recognized as a major global health problem in both developed and developing countries. The slow build-up of childhood obesity awareness over the last twenty-plus years reached an accelerated pace beginning in the early 2000s as witnessed through the confluence of increased conferences, NGO initiatives, and public awareness. This awareness is coupled with the alarming data that shows the drastic rise of childhood obesity rates in developed countries since the 1960s and the growing childhood obesity rates in developing countries since the 1980s. Along with this build-up, a consensus is emerging that the study of childhood obesity should cease focusing on a sole medical interventionist model or single levels of analysis. Building upon Glass and McAtee’s call for an integration of the natural, behavioral, and social sciences to study childhood obesity, we address how a global value chains (GVC) approach is a useful analytic framework to conduct multilevel research. Researchers who use a GVC paradigm to study childhood obesity would identify how some of the main international and corporate factors related to changing food production, technology, and development strategies are linked to consumption patterns around the world. These consumption patterns may allude to unhealthy diets and the risk factors associated with the increased prevalence of childhood obesity.
We outline in this paper our case for using a GVC approach to study childhood obesity. First, we review the evidence regarding the increased prevalence of childhood obesity in developed and developing countries. Second, we use Glass and McAtee’s article as a foundation to conceptualize the multiple determinants of childhood obesity that are positioned on varying levels of analysis (global, macro, meso, micro, and ‘underwater’). With their framework, we begin to piece together how a GVC analysis can be an effective model to capture specific interactions and linkages that connect the levels. Particular attention is given to the United States to demonstrate how a multilevel analysis may be visualized. The United States case highlights a variety of determinants linked to two broad variables: a deleterious change in food consumption patterns (e.g., an increase in fast foods, processed foods, soft drinks, and snacks), driven by powerful corporate marketing campaigns oriented to youth; and a shift to a more sedentary lifestyle. Breaking down the determinants and levels of the U.S. provides a case example to compare developing countries to. Moreover, it highlights the strength of lead firms (e.g., food and beverage manufacturers and fast-food chains) in shaping local consumption patterns. These lead firms then become a key factor in connecting local food production and technological changes in the United States to an overall global shift. Third, we diagram the key analytic terms and segments of a GVC framework. A series of global processes, such as international trade, foreign direct investment, and the diffusion of Western cultural norms, are examined in terms of their impact on changing consumption patterns in developing societies and their connection to a GVC approach.
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Ebook Economies of Scale, Lack of Skill or Misalignment of Interest?
Submitted by puput on Mon, 01/04/2010 - 03:37This paper provides empirical evidence on the comparative performance of three important players in the US financial services industry: defined benefit (DB) pension funds, defined contribution (DC) pension funds, and mutual funds. Individuals, who save for their retirement, can be members of a DB or DC pension plan. DB plan managers generally decide on both strategic asset allocation and security selection on behalf of their participants. In the case of DC plans, individuals have more degrees of freedom in making asset allocation choices, but the supply of investment vehicles is mostly deter mined by DC boards. Often, negotiations with institutional asset managers result in an array of mutual funds across major asset classes. Moreover, a substantial number of private individuals directly holds mutual fund vehicles to upgrade insufficient pension accruals or simply because they are not member of a pension plan.
The three saving options potentially have different returns to investors. Mutual fund management companies are for-profit organizations, whose predominant reason for existence is to maximize the collection of fees. DB and DC pension plans are not-for-profit institutions, who provide participants with a possibility to accrue retirement benefits in a pooled, cost and tax efficient environment. The important question is whether these different objectives materialize in significant differences in returns. For instance, do professional mutual fund organizations attract more experienced and skilled portfolio managers, which consequently leads to higher returns for mutual fund investors? Or alternatively, do pension funds have a clear advantage vis-`a-vis mutual funds as a result of economies of scale, which eventually leads to lower cost levels and hence higher net returns for participants? The first question has been answered unambiguously in the mutual fund literature. Gruber (1996) and Malkiel (1995), among many others, clearly document the inability of mutual funds to beat the market. The second question has not been addressed explicitly in the finance literature, largely because of the lack of fund-specific cost and benchmark information on pension funds.
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Ebook Bank Lending Policy, Credit Scoring and the Survival of Loans
Submitted by wulan on Wed, 07/22/2009 - 08:35Consumer credit has come to play an increasingly important role as an instrument in the financial planning of households. When current income falls below a house-old’s permanent level and assets are either not available or not accessible for dissaving, credit is a means to maintain consumption at a level that is consistent with permanent income. People expecting a permanent increase in their income but lacking any assets, like students, have a desire to maintain consumption at a higher level than their current income allows. Borrowing can assist them in doing that. Those who accumulate funds in a pension scheme but are unable to get access to them when they experience a temporary drop in current income can also increase their welfare by bridging the temporary fall in income with a loan.
The quantitative importance of consumer credit may be illustrated by the fact that total lending, excluding residential loans, by banks and finance companies to Swedish households amounted to SEK 310 bn. (199 bn.), or SEK 34,779 per capita (22,494), by the end of 2001 (1996). That is equivalent to 13.7 (10.9) percent of Swedish GNP or 28.1 (22.3) percent of total private consumption. Viewed from the perspective of financial institutions, household credit also constitutes a significant part of their activities, making up 34.3 (36) percent of total lending to the public. If one includes residential loans, that are often granted by separate subsidiaries, in total lending, this figure drops to 15.5 (12.8) percent. When looking at the risk involved in these loans instead of their volume, their importance is even greater, however. Current BIS rules stipulate an 8 percent capital requirement on consumer credit compared to, for example, 4 percent on residential loans.
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