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The chapter examines the dynamics of policy responses and their ultimate effectiveness. It identifies typical sequences of policy failures, caused by the misfit between new problems and existing policy legacies, which may generate processes of policy learning that ultimately produce effective solutions; but it also points to instances in which policy learning is blocked by conflicts of interest or by divergent cognitive orientations in multi‐actor institutional settings. Of equal importance are sequences of lateral spillovers, where the solutions to problems in one policy area generate new problems that subsequently must be dealt with in adjacent policy areas. In the 1970s and 1980s, these spillovers were most important in countries where the rise of open unemployment was mitigated by resort to early retirement and disability pensions. In analysing these sequences of policy failure, learning, and problem displacement, the chapter also compares and assesses the greater or lesser effectiveness of the policy responses actually adopted and identifies successful countries that were able to adjust to the challenges of the open economy without abandoning their welfare‐state goals.

Whatever the convergent pressures of globalization and Europeanization, countries have manifested divergent policy responses, depending upon a number of significant variables. This chapter identifies five mediating factors that shed light on the dynamics of policy adjustment—economic vulnerability, political institutional capacity, policy legacies, policy preferences, and discourse—to elucidate the different sequencing of responses of Britain, Germany, and France in monetary, industrial, labour, and social policy. It then adds the EU‐specific institutional constraints—the decisions that may provide more or less specified rules, suggested rules, or no rules at all—to help explain the mechanics of policy adjustment in such sectors as European monetary integration, financial services, telecommunications, electricity, and transport.

Because of technological advances in terms of communications, and because of the liberalization of capital accounts, private capital flows experienced rapid growth at the end of the 20th century across developing economies. This final chapter looks into the differences between the capital flows to Asia and Latin America that seem to have gained much importance during the earlier years of this study rather than in 1990s. Analyzing the scale and the prominent characteristics of global private capital flows aids in identifying the key elements involved in managing capital flows and policy making procedures especially in developing countries. Also, this chapter attempts to provide a comparison of the various policy responses implemented by different developing countries in addressing such issues.

The growing collection of literature on the rise of capital flows in several countries across Eastern Europe, Latin America, Asia, and even in the former Soviet Union during the 1990s mainly takes on issues on whether domestic factors like structural reforms and plans on stabilizing inflation or external factors like international interest rates have a significant role in bringing about increased financial flows in developing market economies. While the macroeconomic ‘countercyclical’ policies implemented to address the rising inflows are often analyzed, few studies have attempted to examine the link between the two matters and discuss how the form of capital flows are shaped by the financial sector and the domestic capital market. As such, this chapter aims to study the changing dynamics involved in cross-border capital movements while specifically evaluating the role of policy response through direct intervention and a monetary-foreign exchange ‘policy mix’.

The composition of capital flows into Indonesia has undergone significant changes since the early 1990s and this is evident by how capital inflows reached a level of about $14.7 billion in 1994. Initially, during the 1970s, inflows commonly entered in the form of official development assistance (ODA) from bilateral sources. Because of the developments brought on by the broad-based economic reform, the composition of capital inflows leaned towards more private sources, which was further amplified as private financing shifted to non-bank sources such as portfolio investments and foreign direct investments. Such changes have relegated the state’s role in such matters, caused reforms in the financial system, and increased the openness of the Indonesian economy. This chapter analyzes how the changing composition of capital flows into Indonesia during the 1990s has affected macroeconomic management through looking into development financing, the broad-based economic adjustment programmes, and other such policy responses.

Although Korea is believed to have attained economic growth through utilizing the export-oriented growth strategy, examining the country’s development processes reveal that such strategies are not without import substitution and a certain degree of government intervention. The role of the government in facilitating industrial development was made evident particularly during the Big Push which occurred over the period between 1974 and 1979. Like the overcapacity experienced by the petrochemical industry and other such industries, the Big Push brought about a wide variety of distortions to the economy that threatened Korea’s potential for experiencing growth. Despite such events, Korean policy makers were able to learn from the mistakes of this period that furthered interventionist and export-oriented policies. Through examining various economic reforms and identifying macroeconomic issues and policy responses, this chapter attempts to study how Korea managed capital inflows during the 1990s.

This chapter traces the evolution of policy responses to health inequalities research in Great Britain. It explores the government's response to the recommendations of the Acheson Report and analyses what might be referred to as mid-stream policies in the form of area-based initiatives (ABIs). It also highlights how commitments to evidence-based policy have shaped the policy response and particularly the relative emphasis placed on downstream interventions.

As private capital inflows resurged in Latin America during the later part of the 1980s, Chile was one of the first countries to attract such foreign capital flows and was also the one to attract the largest supply. Although the reemergence of such was in a way embraced because it relaxed the foreign exchange constraint, the composition and the large amount of new capital flows posed certain problems for the unprepared recipient countries. Such countries were faced with problems of domestic absorption since capital inflows are supposed to result in increases in the investment rate. Policy makers were also faced with dilemmas since the absence of regulations causes the real exchange rate to appreciate but intervention would lead to an increased money supply and inflation control. This chapter examines how massive capital inflows were dealt with in Chile during the 1990s, the policy responses, and the effects that were imposed on the domestic economy.

This chapter discusses the motivation of this book and provides an overview of the issues. Section 1.2 reviews the background of the recent global financial and economic crisis, including the possible contribution to the global imbalance. Section 1.3 analyzes the impact of the crisis on Asian economies, tracing out the financial, trade and exchange rate channels, and identifying the factors that determined the variation of impacts across those economies. Section 1.4 reviews the fiscal, monetary policy and other responses of both advanced economies and emerging Asian economies to the crisis, including examining their effectiveness and sustainability. Section 1.5 summarizes the lessons from the global financial and economic crisis, focusing on the need for Asian economies to reduce both their vulnerability to financial crises Section 1.6 suggests some policy measures that can help achieve this end. Section 1.7 the regional and global impacts of Japan's triple disasters. Section 1.8 concludes.

India's financial sector is not deeply integrated with the global financial system, which spared it the first round adverse effects of the global financial and economic crisis and left Indian banks mostly unaffected. However, as the financial crisis morphed in to a full-blown global economic downturn, India could not escape the second round effects. The chapter discusses how the global crisis has affected India through three distinct channels: financial markets, trade flows, and exchange rates and identifies policy measures to restore the Indian gross domestic product growth back to its potential rate of 8–9% per year.

This chapter argues that the Republic of Korea is not immune to global crises, but that a more than proportional response of gross domestic product to global crises does not seem to be the general case either. It also emphasizes the differences between the current recession and the currency crisis period. The chapter discusses the prospects for the Korean economy, including the issue regarding exports vs. domestic demand and domestic savings rate. The analyses form the basis for discussing appropriate policies for Korea in the aftermath of the global financial crisis.

This chapter argues that Malaysia, being a small open economy with a strong export-dependent manufacturing sector, was particularly vulnerable to the global financial crisis. This chapter discusses the importance of trade to the economy and Malaysiafs reliance on demand generated by developed economies. The chapter analyzes the impact of the current crisis on the Malaysian economy and highlights the need to find new ways of thinking about how the country should re-position itself, since the crisis undermines the assumptions on which the countryfs growth strategy is based. It then suggests that Malaysia adopt a rebalancing strategy in response to the crisis.

This concluding chapter summarizes the arguments discussed in the book before turning to the future, extrapolating what these arguments could mean for future work on the migration and climate change nexus. The moral, so to speak, of this story is that changing policy making on migration and climate change does not just imply coming up with new policy ideas, populating a new policy domain with mentions of migration and climate change, or being open to a sprinkling of new faces in policy arenas. Instead, it entails reconsidering how people understand and talk about migration and climate change and undertaking a process of self-reflection: what perspective do people have on the issue and why? This does not necessarily involve interrogating the reasons why people are moving, or the extent to which people connect changes in weather patterns to their decisions to move or their inability to do so. Rather, this involves a process of critical reflection of the motives, both explicit and implicit, of the policy juggernaut. This perspective is really important if the migration and climate change nexus is going to exist as anything but a dire warning of the realities of climate change, and if policy responses are going to be transformative rather than buttresses for the current global state of affairs.

This chapter discusses the initial emergence of BSE as a novel veterinary disease in the UK, and the process by which it came to be acknowledged officially. The initial response from MAFF to the emergence of BSE, involving first secrecy and then reassurances that were not based on sound science. The political and scientific conditions under which expert scientific advice was initially recruited are outlined, emphasizing how the severe limitations of scientific knowledge about risks to human health and the policy dilemmas this raised, complicated the tensions between MAFF and the Department of Health (DoH).

This chapter discusses the impacts of the global financial crisis on the Thai economy and the policy responses. Against the backdrop of a slowly growing global economy in the future, the chapter suggests that Thailand seriously re-think about rebalancing its economy so as to increase its resilience to external shocks. One option is to develop a strategy to increase domestic investment, which will have to be mainly public investment as the private sector has been considerably weakened by the crisis. Another option is to raise productivity by improving human capital rather than by relying on accumulating imported capital which has proven to be unsustainable in the long-term.