what does * in light of …* refer to in the following sentence?

Question

What does "in light of ..." refer to in the following passage (emphasis added)? Is it a reason for " concentrating on domestic financial development and regulation against"? Or it is complementing "against the backdrop of the...".

The report concentrates on domestic financial development and regulation against the backdrop of the financial crises that were a worrisome feature of the decade and in light of the increasing mobility of capital that the other reports encouraged by calling for an easing of capital controls.

Development Economics through the Decades: A Critical Look at 30 Years of the World Development Report, Shahid Yusuf, page 31

Answer 1

I think it's referring to "concentrating on domestic financial development and regulation", because there's a kind of parallelism in the way that the sentence is structured.

The report concentrates on ____
against the backdrop of ____
and
in light of ___

It doesn't really make sense to use the in light of phrase to modify the against the backdrop phrase, because it doesn't make sense that way: there's no main verb there. "The financial crises were a feature and in light of the increasing mobility?" In light of the increasing mobility what? That's why it doesn't make sense to read it that way.