Foreword

Abstract

The topics of the books published in this series not only relate to peace and international relations but also to conflicts in other areas such as the environment, development, and physical and human resources. However, all of these subjects are interrelated. Past and present financial crises are a case in point. Regionalism as against globalization has been proposed in this volume to minimize the probability of such a crisis in the future and manage the conflict. This book links crisis management to regionalism and presents a strategy (regional financial management) to reduce conflict. The author formulates a set of strategic criteria to maximize the net short and long-term benefits. In the short term, financial cooperation, more risk taking, macroeconomic coordination, avoidance of currency-cum-maturity mismatch, etc., may be the appropriate policy. Examples of long-term benefits are diversifying risks and stronger regulation. Examples of short-term costs are coordination failures and moral hazard. The long-term cost is the reduced degree of compliance. Control standards need not be the same for every case particularly for the domestic standards, e.g., rural vs. urban. The question of trade-off arises not only in the concepts of financial crisis but also in the formation of regional cooperation. This regionalism to manage conflict is seen as a contradicting force to the globalization and liberalization process. To make this strategy more applicable to most situations, the author uses a quantitative model which can be empirically estimated.

Citation

(2009), "Foreword", Azis, I.J. (Ed.) Crisis, Complexity and Conflict (Contributions to Conflict Management, Peace Economics and Development, Vol. 9), Emerald Group Publishing Limited, Leeds, p. xiii. https://doi.org/10.1108/S1572-8323(2009)0000009003