Foreign participation in the financial sector brings expertise needed to provide more efficient savings instruments, risk management, and allocation of capital.

These cases underline an inherent risk in the fund allocation process.

But this vigorous attempt to reduce interest rates is distorting capital allocation.

a. avoid destabilising capital flows to maximise benefits from globalised capital markets, thereby minimising risk

The single market principle was supposed to promote the efficient allocation of capital and labor.

Country level planning and resource allocation is still the rule for most businesses operating in Africa, resulting in inefficient allocation of human and capital resources.

The risk was a less than optimal allocation of scarce resources, or a waste of resources.

In others, banks need to re examine their procedures for credit risk assessment and credit allocation.

The resulting perception that currency risk was declining bolstered capital inflows further.

As developing countries have learned from experience, all these effects are bad for capital allocation and growth.

As a result, financial markets, which are supposed to manage risk and allocate capital efficiently, created risk and misallocated wildly.

Rather than holding an investment in our bodies, we re all at risk of becoming capital my body, but somebody else s capital.

The absence of a stable framework will force investors to re think asset allocation decisions and risk pricing.

More efficient and stable international capital markets should lead to decreased intermediation costs and risk premia and, therefore, cheaper capital for investment.

However, barring any major economic bumps, the changes will have a positive impact, as capital allocation becomes more efficient.

This approach implies that more can be done to reduce systemic risk, beyond reforming how risk is measured and capital buffers determined.

We launched the AlDSRides with an initial investment of 50,000 dollars in risk capital.

The fund's objectives, typically, are those of (a) maximizing risk adjusted returns, (b) security of capital and (c) liquidity, and their respective attitudes to risk.

A number of risk factors were identified, including failure, the loss of capital or closure and the risk of being taken over by foreign firms.

They can take on more risk running a more highly leveraged business with less shareholder capital.

The banks can report record profits without much risk, rebuild capital, and pay dividends and bonuses.

Others include deep rooted social issues pertaining to the administration of the national capital and the determination and allocation of oil revenues.

Allocation

While the right policies cannot eliminate risk, they can ameliorate the cost benefit tradeoff from capital flows.

Proceeding with capital injections before the single supervisor is in place would only encourage more risk taking.

Thus, it seemed that the capital importing developing countries as a whole were very much at risk.

We launched the breast cancer three days with an initial investment of 350,000 dollars in risk capital.

These trends imply an increased probability that the market is underestimating risk, so systemic risk regulators should raise minimum capital requirements as soon as they spot them.

Interest rate liberalization together with other financial reforms would help to improve the efficiency of capital allocation and to optimize the economic structure.

In the absence of better mechanisms for capital allocation, global growth in this century will slow down a lot sooner than it should.

Disaster risk reduction competes with a variety of national priorities and development needs, and often receives little attention in budgeting and resource allocation.

The total component comprises four international professionals contributions to special insurance premiums for risk prone locations and an allocation for security related equipment.

Indeed, ignorance about what is actually at risk makes debates about the right formula for capital buffers surreal.

A bloated and dysfunctional financial system had misallocated capital and, rather than managing risk, had actually created it.

Resource allocation

As a result, market oriented interest rate reform is now needed to help optimize capital allocation and support the development of China s financial market, thereby laying the groundwork for future capital account and exchange rate liberalization.

Capital tax differences among countries would induce capital to flow from the high tax to the low tax economies. Such tax induced distortions would lead to an inefficient regional allocation of investment and possible tax competition.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

Lack of equity capital, in turn, made risk averse shareholders hire gamblers to manage their limited liability investment companies.

The problem here is that these measures implicitly assume that risk declines when markets are doing well they demand less capital during calm periods and more capital during volatile periods.

The third risk is that rising oil prices reduce investor confidence and increase risk aversion, leading to stock market corrections that have negative wealth effects on consumption and capital spending.

(b) An allocation to high yield bonds will provide further diversification benefits to the portfolio, more than compensating for the risk of this asset category

Perceptions of such divergences force considerable risk premiums on problem countries, inevitably resulting in accelerating capital flight to safe havens.

What Krugman is really after ( though he can t quite come out and say this ) is for the government to take charge of the allocation of capital.

Memory allocation error.