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2801. Mythmaking in the Rule of Law Orthodoxy

Author:
Frank Upham
Publication Date:
09-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
As governments and donor agencies struggle over questions of aid and international development, a growing consensus is emerging regarding the connections between poor governance and underdevelopment. An increasing number of initiatives, from the U.S. Millennium Challenge Account to the New Partnership for African Development (NEPAD), explicitly link improving governance with pursuing sustainable development and poverty alleviation. Lack of pluralism and transparency, inefficient bureaucracies, and underdeveloped public institutions contribute to corruption, reduce governmental responsiveness to citizens' needs, stifle investment, and generally hamper social and economic development. A frequent donor favorite on the laundry list of “good governance” reforms advocated for developing countries is rule of law reform. The new development model contends that sustainable growth is impossible without the existence of the rule of law: a set of uniformly enforced, established legal regimes that clearly lays out the rules of the game.
Topic:
Democratization, Development, and Government
Political Geography:
Africa and United States

2802. Do Judicial Councils Further Judicial Reform? Lessons from Latin America

Author:
Linn Hammergren
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
JUDICIAL REFORM EFFORTS IN LATIN AMERICA, and by extension worldwide, seem to fall easily prey to magic bullets. In the past two decades, reformers in the region and aid providers from North America and Western Europe have seized upon a whole series of entry points for judicial reform—including model codes, accusatory criminal justice systems, court administration reforms, information technology, alternative dispute resolution, legal services, and constitutional courts. Sometime during the late 1980s, as the issue of judicial independence came to receive more serious attention, judicial councils joined the list, and nearly a dozen countries adopted them. It was not until the late 1990s that questions about their utility began to emerge. Although Latin America is beginning to reexamine its love affair with the councils, the model has been gaining ground in other regions. Western Europeans, who invented the mechanism, have been suffering their own doubts. This has not prevented their joining with U.S. reformers in recommending it to postcommunist nations in Eastern Europe and the former Soviet Union and in Africa, Asia, and the Middle East. The cautionary lessons from Latin America's several-decade experiment with judicial councils have not yet been analyzed and disseminated. This essay is a start in that direction.
Topic:
Democratization and Government
Political Geography:
America, Europe, France, South America, Latin America, and Central America

2803. Foreign Direct Investment: Does the Rule of Law Matter?

Author:
John Hewko
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
THE CONVENTIONAL WISDOM within the international development community is that foreign direct investment (FDI) is an important component of economic growth and prosperity in transitional and developing countries and that a crucial, if not decisive, factor in enticing such investment is a stable, consistent, fair, and transparent legal and judicial system. As a recent World Bank publication concluded: The massive move by developing and transition countries toward market economies necessitated the adoption of strategies for the encouragement of private investment, domestic and foreign. Naturally, there was a general realization that such an objective could not be achieved without modifying and, sometimes, completely overhauling the legal and institutional framework and firmly establishing the rule of law, thereby creating the necessary climate of stability and predictability.
Topic:
Emerging Markets, Government, and International Trade and Finance

2804. Russia's Decline and Uncertain Recovery

Author:
Thomas E. Jr. Graham
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
For much of the first decade after the collapse of the Soviet Union, the issue of reform—of transition to free-market democracy—dominated discussions of Russia in Russia itself and in the West. Russian president Boris Yeltsin advocated reform; Western governments declared their support and offered their assistance. This was particularly true of the U.S. government. President Clinton's administration came into office in 1993 determined to assist Russia in its transformation into “a normal, modern state—democratic in its governance, abiding by its own constitution and by its own laws, market-oriented and prosperous in its economic development, at peace with itself and the rest of the world,” as deputy secretary of state Strobe Talbott, the chief architect of the U.S. administration's Russia policy, was wont to put it.
Topic:
Economics and Government
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

2805. Responding to the Threat of Smallpox Bioterrorism: An Ounce of Prevention Is Best Approach

Author:
Veronique de Rugy and Charles V. Peña
Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The threat of direct terrorist attack against the United States proved to be real. And the subsequent anthrax cases point to the possibility of a future bioterrorist attack, including use of the deadly smallpox virus. The nature of terrorism is such that it is impossible to accurately predict the probability of such an attack, but the potential consequences are catastrophic. Therefore, it is a serious threat that deserves serious attention.
Topic:
Foreign Policy and Government
Political Geography:
United States and Europe

2806. Fighting the War against Terrorism: Elite Forces, Yes; Conscripts, No

Author:
Doug Bandow
Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The United States possesses the most powerful military on earth, one that has proved its potency in ousting the Taliban from power in Afghanistan. Yet, even as the military was gearing up to perform so well, some people were calling for a return to conscription or, more dramatically, for institution of mandatory national service for all young people.
Topic:
Foreign Policy and Government
Political Geography:
Afghanistan, United States, Europe, and Taliban

2807. Old Folly in a New Disguise

Author:
Gary T. Dempsey
Publication Date:
03-2002
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Since September 11, 2001, there have been calls from various quarters to embrace nation building as a tool for combating terrorism. The logic behind the idea is that “good” states do not do “bad” things, so Washington should build more “good” states. That idea, however, relies on several dubious assumptions—for example, that embarking on multiple nation-building missions will reduce the potential for anti-American terrorism. If anything, nation building is likely to create more incentives, targets, and opportunities for terrorism, not fewer. The nation-building idea also draws on false analogies with the past. For example, some people assert that Europe's experience under the Marshall Plan can be readily duplicated in a whole host of countries and that, with enough economic aid, trained bureaucrats, and military force of arms, “bad” states anywhere can be transformed into open, self-sustaining, peaceful states.
Topic:
Foreign Policy, Government, and Terrorism
Political Geography:
United States, America, Europe, and Washington

2808. Tax Reforms and "Modell Deutschland": Lessons from Four Years of Red-Green Tax-Policy

Author:
Achim Truger and Wade Jacoby
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
When the red-green (SPD-Bündnis90/DieGrünen) coalition took over the federal government from the Christian-Democrat/Free-Democrat (CDU/CSU/FDP) coalition in 1998, tax reforms had a very high political priority. And, in fact, the government pushed through an astonishing number of far-reaching tax reforms/tax changes within a period of little more than two years. This paper follows two aims. First, it gives a short description of the measures taken and evaluates them with respect to tax theory and the German tax reform debate of the 1990s. Second, it explicitly addresses the question whether the tax changes were influenced by the wish to reform the Modell Deutschland, i.e. whether something substantial was done to change Germany ́s status as a perceived high tax country and if so, whether the attempt was successful. It will be shown that even though the problem of high taxes might have been many observers ́ and, indeed, also the government ́s dominant concern, there was much more to the German debate. The chapter will also ask whether generously cutting taxes was the right thing to do. It demonstrates that under Germany ́s peculiar economic and institutional circumstances at the end of the 1990s, the attempt to cut taxes led to serious problems for fiscal policy, growth, and employment.
Topic:
Economics, Government, and Political Economy
Political Geography:
Europe

2809. The Uneasy Triangle

Author:
Lloyd Ulman and Knut Gerlach
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
". . . It is impossible for any community to have very full employment and completely free collective bargaining and stable prices. Either one of the three will be completely sacrificed, or else all three will have to be modified. ". . . In the last resort the answer will be given not by economists or by administrators but by the public opinion. At each corner of the triangle, the limiting factor is what public opinion will stand, and the degree of comprehension that public opinion will show for an economic policy that tries to preserve balance between competing objectives.
Topic:
Government and Political Economy
Political Geography:
Europe

2810. Germany: Managing Migration in the 21st Century

Author:
Philip L. Martin
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This monograph reviews Germany's evolution from a country of emigration to a reluctant land of immigration between the 1960s and 1980s, as guest workers settled and asylum seekers arrived. During the 1990s, Germany became a magnet for diverse foreigners, including the families of settled guest workers, newly mobile Eastern Europeans and ethnic Germans, and asylum seekers from throughout the world. Germany, with a relatively structured and rigid labor market and economy, finds it easier to integrate especially unskilled newcomers into generous social welfare programs than into the labor market. Since immigration means change as immigrants and Germans adjust to each other, an aging German populace may resist the changes in the economy and labor market that could facilitate immigrant integration as well as the changes in culture and society that invariably accompany immigrants.
Topic:
Government and Migration
Political Geography:
Europe and Germany

2811. Immigration in the United States

Author:
Philip L. Martin
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This chapter summarizes migration patterns, puts the immigration and integration challenges facing the US in a global context, reviews the evolution of US immigration and immigration policy, and then focuses on some of the immigration and integration issues being debated early in the 21st century. Immigration is likely to continue at current levels of 900,000 legal and 300,000 unauthorized a year, so that Americans will, in the words of former Census director Kenneth Prewitt, "redefine ourselves as the first country in world history which is literally made up of every part of the world."
Topic:
Government, Human Welfare, and Migration
Political Geography:
United States

2812. Restructuring "Germany Inc." The Politics of Company and Takeover Law Reform in Germany and the European Union

Author:
John W. Cioffi
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
The reform of German company law by the Control and Transparency Law ("KonTraG") of 1998 reveals politics of corporate governance liberalization. The reforms strengthened the supervisory board, shareholder rights, and shareholder equality, but left intra-corporate power relations largely intact. Major German financial institutions supported the reform's contribution to the modernization of German finance, but blocked mandatory divestment of equity stakes and cross-shareholding. Conversely, organized labor prevented any erosion of supervisory board codetermination. Paradoxically, by eliminating traditional takeover defenses, the KonTraG's liberalization of company law mobilized German political opposition to the EU's draft Takeover Directive and limited further legal liberalization.
Topic:
Government and Industrial Policy
Political Geography:
Europe and Germany

2813. Measuring Unemployment Benefit Recipiency in New Zealand

Author:
Wayne Vroman
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
This is a paper about measurement. It originated within a project that is examining the performance of unemployment compensation (UC) programs from a cross-national perspective. At the current time the larger project has assembled data on the UC programs of more than 20 countries along with supporting labor market data. Within the set of OECD countries, the project has singled out for particular attention six English speaking countries: Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States. An analysis of the unemployment protection systems in these six countries was recently completed by Brusentsev (2002).
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States, United Kingdom, Canada, Australia, Ireland, and New Zealand

2814. Limited English Proficient Students and High-Stakes Accountability Systems

Author:
Michael Fix and Jorge Ruiz-de-Velasco
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
In 1994 Congress required all states to implement comprehensive accountability systems for schools receiving federal funds under the Elementary and Secondary Education Act (ESEA). This new federal requirement responded to civil rights advocates' concerns that schools serving large numbers of poor, minority, and limited English proficient (LEP) students set lower standards for their education and thus ratified lower expectations for their performance. These changes in the ESEA made a dramatic break with past practice by requiring states to replace minimum standards for poor and academically disadvantaged children with challenging standards for all students. New accountability systems were to be based on state-established content standards for reading and math, include assessments aligned with those standards, and would require that states hold all students to the same performance standards.
Topic:
Education, Government, and Migration
Political Geography:
United States

2815. Mortgage Default Insurance in the U.S.: Implications for Russia

Author:
Raymond Struyk and Douglas E. Whiteley
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
The objective of this paper is to introduce the concept of mortgage default insurance as developed in the United States into the context of Russian mortgage lending. The first part of the paper discusses the broad principles and operations of mortgage default insurance offered by private companies as it works in the United States. The pricing of this product and the preconditions for offering such insurance are highlighted. The second section outlines the operation of the U.S. government-supported default insurance offered by the Federal Housing Administration (FHA). The final part applies the foregoing information to the situation in Russia today and concludes that the conditions necessary for launching mortgage default insurance do not currently exist in the country. Nevertheless, there are a number of essential actions that can and should be taken over the next several months to put Russia on the road to establishing such insurance in a few years. The paper finishes with a possible action plan for the next two years.
Topic:
Development, Government, and International Trade and Finance
Political Geography:
Russia, United States, Europe, and Asia

2816. The Scope and Impact of Welfare Reform's Immigrant Provisions

Author:
Michael Fix and Jeffrey Passel
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
For immigrants, welfare reform went well beyond conditioning access to cash benefits on work. Rather, the law set out a comprehensive scheme for determining immigrant eligibility for a wide range of social benefits that are provided by governments at all levels. Reform represented a major departure from prior policy by making citizenship more central to the receipt of benefits, by granting the states rather than the federal government the power to determine immigrant eligibility for benefits, and by drawing a sharp distinction between immigrants arriving before and after PRWORA's enactment on August 22, 1996.
Topic:
Government, Human Welfare, and Migration
Political Geography:
United States

2817. Business Interest Representation and European Commission Fora: A Game Theoretic Investigation

Author:
Andreas Broscheid and David Coen
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The relationship between business and the EU institutions has evolved from its corporatist origins into a complex elite pluralist arrangement centered around industrial fora and policy committees. We view the growth of forum politics as the direct consequence of the unprecedented boom in economic and public interest lobbying in the early 1990s: While the increase in European interest representation provided greater legitimacy for the European integration program, it put a strain on the existing open pluralist European business-government relationship. One of the European Commission's (EC) informal solutions was to create restricted-entry policy fora and select committees, which it hoped would provide fast and reliable decision-making. Employing a formal model of industrial fora and committees, we specify the mechanisms that we believe caused the establishment of the current elite pluralist system of interest representation in the EU. We argue that in the process of establishing selective-entry fora for interest representation, the European Commission acted not only as policy entrepreneur, but also as a political entrepreneur, fostering collective action.
Topic:
Government, International Trade and Finance, and Political Economy
Political Geography:
Europe

2818. Political Parties, Institutions, and the Dynamics of Social Expenditure in Times of Austerity

Author:
Herbert Obinger and Bernhard Kittel
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The containment of social expenditure growth has been (and still is) a core issue of public policy in advanced industrial countries since the 1980s and has received much academic attention during that period. Among the most extensively discussed explanatory factors of social expenditure are partisan politics and political institutions, as well as the dependency of the real impact of the former on the latter. The paper distinguishes five competing theoretical perspectives and explores their power to explain the empirical variation in the period 1982–1997 in 21 OECD countries. The empirical analysis of short-term dynamics is performed in a time-series cross-section framework while long-term level effects are explored in a cross-sectional setting. By using an interactive model specification the authors show that there is empirical evidence for this conditional effect, albeit it is neither thoroughly convincing nor leading to lasting long-term level effects. Extensive specification tests show that the 1990s witnessed a weakening of partisan effects which were still present in the 1980s. In total, the evidence tends to give most support to the “growth-to-limits” and the “new politics” perspectives.
Topic:
Economics, Government, International Trade and Finance, and Political Economy

2819. Arab Responses to George W. Bush's June 24 Speech

Publication Date:
07-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On June 24, 2002, President George W. Bush stated, "Peace requires a new and different Palestinian leadership, so that a Palestinian state can be born." His speech elicited initial favorable reaction from Arab governments, which has evolved amid negative Arab media response.
Topic:
Security, Government, and Religion
Political Geography:
Middle East, Palestine, and Arabia

2820. The Return of Palestinian Nationalist Terrorism

Author:
Matthew Levitt and Ehud Waldoks
Publication Date:
05-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The State Department's annual Patterns of Global Terrorism report, which is scheduled for release in late May, is set to be a much longer and detailed document than before. Among the many issues the report will have to address is the resurrection of secular Palestinian terrorist groups, some of which have not been listed on U.S. government terrorist lists in the past. The steady escalation of terrorist tactics and operations over the past year and a half is due as much to these groups as it is to Palestinian Islamist groups such as Hamas and Palestinian Islamic Jihad that have dominated the Palestinian terrorism scene over the last decade. Palestinian nationalist terrorism currently has two components: 1) dormant secular groups such as the Popular Front for the Liberation of Palestine (PFLP) — referred to collectively as "the fronts" — that have been revitalized after several years of inactivity; and 2) newly active nationalist, non-Islamist militias connected to the Palestinian Authority (PA), such as the Fatah Tanzim.
Topic:
Conflict Resolution and Government
Political Geography:
United States, Middle East, Palestine, and Arab Countries

2821. By How Much Does Conflict Reduce Financial Development?

Author:
S. Mansoob Murshed, Tony Addison, and Abdur R. Chowdhury
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Financial development is vulnerable to social conflict. Conflict reduces the demand for domestic currency as a medium of exchange and a store of value. Conflict also leads to poor quality governance, including weak regulation of the financial system, thereby undermining the sustainability of financial institutions. Conflict therefore reduces the social return to financial liberalization and other financial-sector reforms. This paper presents a theoretical model integrating the effects of conflict and financial liberalization, and then tests the model on data for 79 countries. Using an explanatory variable that measures the intensity of conflict (from low to high) the results show that conflict significantly reduces financial development, and that this negative effect increases as conflict intensifies. The paper concludes that conflict reduction is essential if financial reform is to have its full benefit for development.
Topic:
Conflict Resolution, Development, Government, and Political Economy

2822. The Macroeconomic Repercussions of Agricultural Shocks and their Implications for Insurance

Author:
Paul Collier
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper considers the macroeconomic impact of shocks to agricultural output and of negative and positive price shocks. It is shown that negative price shocks have particularly large externalities: it is estimated that the overall impact of these negative shocks on GDP may well be double their direct impact. In terms of policy, the presence of externalities justifies subsidising the provision of insurance. If insurance is not feasible, then foreign aid may be helpful. Turning to other systemic shocks, it is argued that the macroeconomic consequences of negative output shocks are far less important. Positive price shocks also have substantial macroeconomic externalities via their effect on asset demand. Appropriate central bank policy is crucial and requires a detailed understanding of asset demand changes in response to price shocks. Since this may well be unlikely, dollarization may be a better strategy.
Topic:
Economics, Government, and International Trade and Finance

2823. Financial Regulation and Supervision in Emerging Markets. The Experience of Latin America since the Tequila Crisis

Author:
Barbara Stallings and Rogerio Studart
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper deals with changes in the regulation and supervision of the Latin American financial sector in the aftermath of the 'Tequila Crisis' of 1994–95. While it finds that both have improved, regulation and supervision cannot resolve all problems; good macroeconomic policy and performance are essential complements. This is especially true because of the procyclical nature of financial activity. The paper presents both regional data for Latin America, contrasting it with other emerging markets, and four country case studies (Argentina, Brazil, Chile, and Mexico). The latter show how individual country characteristics and experiences affect the operation of the financial systems. We close with some policy recommendations.
Topic:
Economics, Emerging Markets, and Government
Political Geography:
Brazil, Argentina, South America, Latin America, North America, Mexico, and Chile

2824. Assessing the Impact of Fiscal Policy on Poverty

Author:
Andrew McKay
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Fiscal policy measures are a key means by which governments can influence distribution and poverty, but in fact the relationships between fiscal policy and poverty are not well understood. The most commonly used technique for assessing the distributional impact, benefit incidence analysis, is straightforward, but applied by itself it suffers from a number of serious limitations. Assessment of the impact of fiscal policy needs to be developed in various directions, including allowing for behavioural responses and incorporating a broader range of information. In parallel with this careful attention needs to be paid to more effective monitoring of the poverty impsact of fiscal policy.
Topic:
Economics, Government, and International Trade and Finance

2825. Countercyclical Fiscal Policy. A Review of the Literature, Empirical Evidence and some Policy Proposals

Author:
Carlos Budnevich L.
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
For many emerging market economies, over reliance on monetary policy may bring worse macro results, when compared to a more balanced framework of countercyclical fiscal and monetary policy. The use of countercyclical fiscal policy requires as a precondition solvent and sustainable fiscal accounts and the re-engineering of fiscal institutions to increase the timeliness and flexibility of fiscal policy. A higher degree of tax or pension fund and/or unemployment insurance contribution flexibility may help in economies subject to significant external shocks. Automatic indexing rules to terms of trade or country risk spreads for pension contributions and interest payments on public debt may also contribute to the stabilization effort. If fiscal revenues are highly volatile, structural budget rules and commodity stabilization funds may provide the necessary framework to achieve saving (dissaving) during expansions (contractions).
Topic:
Economics, Government, and International Trade and Finance

2826. Aid, Public Sector Fiscal Behaviour and Developing Country Debt

Author:
Mark McGillivray and Simon Feeny
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper looks at public sector debt in developing countries, being concerned specifically with the relationship between aid inflows and the public sector borrowing requirement net of aid loans. After examining the public sector budget constraint and various conditions under which aid might lead to an increase in this borrowing, the paper surveys the empirical results of literature on aid and public sector fiscal behaviour. It finds that the results of a number of studies are consistent with aid leading to increases in this borrowing. Further investigation, in the form of econometric analysis of panel data, also points to this outcome. The paper then looks at a number of theoretical scenarios in which aid leads to increases in borrowing net of aid loans.
Topic:
Economics, Government, and International Trade and Finance

2827. Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries

Author:
Chris Elbers, Peter Lanjouw, Johan Mistiaen, Gabriel Demombynes, Jenny Lanjouw, and Berk Özler
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper implements a methodology for estimating poverty in Ecuador, Madagascar and South Africa, at levels of disaggregation that to date have not generally been available. The methodology is based on a statistical procedure to combine household survey data with population census data, imputing into the latter a measure of per capita consumption from the former. The countries are very unlike each other—with different geographies, stages of development, quality and types of data, and so on. Yet the paper demonstrates that in all three countries the poverty estimates produced from census data are both plausible (in that they match well stratum-level estimates calculated directly from the household surveys) and satisfactorily precise (at a level of disaggregation far below that allowed by household surveys).
Topic:
Development, Economics, Government, and International Trade and Finance
Political Geography:
South Africa

2828. Fiscal Policy, Growth and Poverty Reduction in Uganda

Author:
Steve Kayizzi-Mugerwa
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
After more than a decade of economic decline and civil war, Uganda was able to return to economic growth thanks to the policies pursued by Museveni's National Resistance Movement which elicited considerable donor support. They include macroeconomic reforms, public sector restructuring, privatisation and decentralization, all with emphasis on poverty reduction. The government recognises that fiscal policy is the key to success and much effort has, in the past decade, gone towards fiscal reforms and the improvement of institutional capacities. Still, in a country with limited finances and a thin tax base the competition for resources has been stiff. While the government has been able to embark on initiatives such as universal primary education, thanks to an improved revenue base and donor support, the decentralization drive is hindered by serious fiscal constraints at the local level.
Topic:
Development, Government, and Political Economy
Political Geography:
Uganda and Africa

2829. Welfare Implications of Fiscal Reform: The Case of Food Subsidies in India

Author:
Sonia Bhalotra
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper investigates the effect of a food subsidy programme in India on child malnutrition by addressing the following linked questions using household survey data that includes information on usage of the public distribution system. First, does the food subsidy induce higher expenditures on food? Second, are there gender inequalities in the distribution of food within the household, and in the gains from the food subsidy? Third, does food spending impact on child health? Is this effect similar for boys and girls and in the short and the medium term? These questions are of interest with respect to the unusually high incidence of malnutrition in India, and they are topical in the context of current and controversial reform of the public distribution system through which the food subsidy operates.
Topic:
Development and Government
Political Geography:
South Asia and India

2830. Why isn't there more Financial Intermediation in Developing Countries?

Author:
Jonathan Conning and Michael Kevane
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper proposes to organize thinking about the opportunities for improving and extending financial markets and safety nets for the poor, by focusing on factors that may explain why the linkage of local financial networks and safety nets with the larger economy often fails or is incomplete. Understanding the nature of these impediments is the first step in proposing policies to help promote more effective linkage and intermediation. We propose four explanations for the slowness of adoption of intermediation (high costs of delegated monitoring aggravated by limited intermediary capital; lock-in and crowding out effects from local insurance arrangements, social norms against cooperation with intermediaries; and political resistance to new institutions that shift the balance of power in local polities). Of course, financial repression and weak legal systems remains important as cause of lack of intermediation. We conclude with a review of public policy for more effective intermediation.
Topic:
Development, Economics, and Government

2831. Insolvency and Debt Recovery Procedures in Economic Development: An Overview of African Law

Author:
Clas Wihlborg
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Insolvency and debt recovery procedures are as crucial to a well-performing financial sector as credit provision itself. They are even more important in Africa, where attempts are underway to create fully-fledged financial markets. For the financial system to be credible, creditors must be ensured that lenders will meet their obligations and that cases against them will be brought to closure. A good legal framework for insolvency also ensures distressed firms a form of orderly exit, thereby enabling their owners to start afresh. However, institutions of this nature take time to take effect, and need to be supported politically and by reforms in other sectors of the economy.
Topic:
Development, Economics, and Government
Political Geography:
Africa

2832. The Gradual Erosion of the Social Security Function of Customary Land Tenure Arrangements in Lineage-Based Societies

Author:
Jean-Philippe Platteau
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Customary rules governing access to land and other natural resources in village societies have characteristics that allow them to fulfil social security functions and achieve equity objectives. This is true of both common-property resources and land parcels held under individualized tenure. However, when land pressure increases under the combined influences of population growth and market integration, a shift occurs from extensive to intensive resource use patterns. As a result, the efficiency costs of erstwhile equity-and insurance-oriented arrangements rise, thus forcing them to evolve significantly. In particular, land tenure arrangements undergo a major transformation towards more individualized forms with the consequence that property rights in land are increasingly defined without regard for equity and insurance concerns.
Topic:
Development, Economics, and Government

2833. Hardening a Soft Budget Constraint Through 'Upward Devolution' to a Supranational Institution: The Case of Italian State-Owned Firms and the European Union

Author:
Elisabetta Bertero and Laura Rondi
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper contributes to the literature on the role of decentralization in hardening the budget constraint of public enterprises. Following Qian and Roland the study adopts a 'federalist' approach. However, it interprets federalism as the upward devolution of domestic economic policies to a supranational authority and examines its role in disciplining public enterprises operating in a soft budget regime. The methodology is a case study of the shift in budget regime in Italy in the late 1980s. The study shows that a determinant role in driving this shift was played by European economic policies. The discipline imposed by participation in the EMS, the Single Market Programme and, later, the requirements to enter the EMU pushed the Italian government toward a much tougher approach to its budget deficit.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
Europe

2834. Poverty in India: Misspecified Policies and Estimates

Author:
M.H. Suryanarayana
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Specification counts in the formulation of any economic problem, estimation of its magnitude and its assessment. This is particularly so for problems in the context of economic development. Solutions for poverty alleviation in developing countries like India are often formulated under misspecified premises. This results in wrong choice and design of strategies and policies. Faulty evaluation due to specification errors in estimates of poverty only compounds the error. This paper discusses such an in issue in the context of strategies for and estimates of poverty reduction in the developing countries. The results are general. They are illustrated with reference to India.
Topic:
Development and Government
Political Geography:
South Asia and India

2835. From the Grabbing Hand to the Helping Hand: A Rent Seeking Model of China's Township-Village Enterprises

Author:
Jiahua Che
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
I present a study of ownership of firms under government rent seeking. Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such a government rent seeking activity leads to a typical hold-up problem. Government ownership is shown to serve as a second best commitment mechanism through which the government agency will restrain itself from the rent seeking activity and even offer the manager support and favor such as tax breaks and subsidies. This mechanism works at a cost as government ownership compromises ex post managerial incentives and creates distortion in resource allocation. Nevertheless, government ownership may Pareto dominate private ownership under certain conditions. These conditions correspond to a host of stylized empirical observations concerning local government-owned firms (township-village enterprises) during China's transition to a market economy.
Topic:
Development, Emerging Markets, and Government
Political Geography:
China and Asia

2836. Privatization in sub-Saharan Africa: On Factors Affecting Implementation

Author:
Steve Kayizzi-Mugerwa
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Although privatization has been a key feature of economic policy in Africa since the early 1990s its sequencing and intensity have varied from country to country, with donor leverage being an important determinant of the pace of implementation. However, although many privatization schemes were undertaken in response to donor demands for reduced government participation in business, the process soon achieved its own dynamics. The positive view of privatization suggests that it went ahead, in spite of domestic opposition, because politicians and bureaucrats perceived real benefits to themselves and their supporters. They could influence the sales to their own benefit, while, on the other hand, a more focused public sector improved service delivery.
Topic:
Development, Economics, and Government
Political Geography:
Africa

2837. Institutional Investors, Corporate Ownership, and Corporate Governance: Global Perspectives

Author:
Stuart L. Gillan and Laura T. Starks
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine the role of institutional investors in financial markets and in corporate governance. In many countries, institutional investors have become the predominant players in financial markets and their influence worldwide is growing, chiefly due to the privatization and development of pension fund systems. Moreover, foreign institutional investors are becoming a significant presence, bringing their trading habits and corporate governance preferences to international markets. In fact, we argue that the primary actors prompting change in many corporate governance systems are institutional investors, often foreign institutional investors. In other countries the role of institutional investors is limited. Instead, large blockholders, often in the form of individuals, family groups, other corporations, or lending institutions are the dominant players. We present the theoretical arguments for the involvement of investors in shareholder monitoring and a brief history of institutional ownership and activism in the United States and other countries. We also discuss studies of the efficacy of such activism.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States

2838. Redistribution Does Matter Growth and Redistribution for Poverty Reduction

Author:
Hulya Dagdeviren, Rolph van der Hoeven, and John Weeks
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Recent development literature has placed priority on poverty reduction, and on possible growth enhancement from a more equal distribution of assets and income. At the same time, empirical work consistently shows that economic growth is no more than distribution neutral. In that context, this paper explores the relationship among growth, inequality and poverty, and demonstrates the following general conclusions: 1) a redistributive growth path is always likely to be superior to a distribution neutral path ('trickle down') for reducing poverty; 2) a redistributive growth path is always superior if a country's per capita income and inequality are relatively high; and 3) a static redistribution from the rich to the poor is superior to a redistributive growth path in its effect on poverty for most countries, but not for all. The paper then considers policy that might be used to make growth more equitable.
Topic:
Development, Economics, Government, and Poverty

2839. Wars and the Un-making of States: Taking Tilly Seriously in the Contemporary World

Author:
Anna Leander
Publication Date:
12-2002
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
That war makes states has become part of international relations (and political science) folklore. There are good reasons for this. The idea can be evoked with reference to venerable classical masters of our trade, including Weber, Hintze and Elias, or more recent ones such as Finer or Tilly. Moreover, the argument dovetails beautifully with the anti-liberalism underlying much realist thinking in international relations. It stresses the violent foundations of power and states as opposed to liberal stress on the role of power growing out of legitimacy and common action. And finally, the argument is useful from two perspectives. Analytically, it enables observers to make positive sense of the messy reality of war in large parts of the world: it is just an inevitable step on the way to state formation (Cohen, Brown et al. 1981). And politically it provides a welcome excuse for not getting too closely involved with that messy reality. If wars make states, well then the best thing is to allow them to be fought out (Herbst 1996-7).
Topic:
Government, Sovereignty, and War

2840. "Power" in International Relations: concept formation between conceptual analysis and conceptual history

Author:
Stefano Guzzini
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This paper will try to take the reader on a journey from conceptual analysis, used as a means for variable construction, to concept formation as conceptual history through a series of stops which will add different contextual layers to the analysis. This step by step introduction is meant to show the basic connectedness, and indeed crucial importance, of all this layers for constructivism-inspired scholarship where concept formation is not simply a means but an important end in our knowledge. Throughout the journey, references will be made to the concept of power which, in this indirect way – so I hope – will be shown as variable, as core concept in a social theory, as well as a performative speech act, embedded in a certain historical and cultural context, with the effect of "politicising" issues.
Topic:
International Relations, Security, and Government

2841. Global Ungovernance: Mercenaries, States and the Control over Violence

Author:
Anna Leander
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
There is a tendency for political protestors and academic critics of 'glo bal-isation' to focus their attention on the institutions of Global Governance. The meetings of the EU and WTO have to placed in far off, complicated location to be safe from the p hysical threats of the pro testors. And there is literally a flood of critical writings on the impact of the IMF, the World Bank or the G7 on developing countries. However, in this article I want to shift the focus to another, and it seems to me potentially more threatening tendency: the tendency towards 'ungovernance'. In particular I want to dis-cuss the role of mercenaries as an example of this d evelopment.
Topic:
Security, Government, and Terrorism
Political Geography:
Europe

2842. Cosmopolitan Cities and Nation States: Open Economics,Urban Dynamics, and Government in East Asia

Author:
Thomas P. Rohlen
Publication Date:
02-2002
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This essay is about the pivotal role cities play in the current pattern of social, cultural, and political change in East Asia. Its starting premise is that the postwar era of nation state building and state-led change is ending and a different era—one that centers on global capitalism and new technological capacities—has been steadily emerging in the region over the last several decades. At the vortex of these new forces we find big, successful cities. In such cities, the forces of capitalism, cultural cosmopolitanism, and new technologies combine critically in a turbulent and heady new mix. As a result, while the effectiveness of state initiatives decreases, and government is under pressure to reform, privatize, and decentralize, the dynamic (and typically coastal) cities of East Asia are the center of powerful economic and cultural forces for change, and the source of alternative political agendas. Simultaneously, due to their rapid expansion, these cities have also become the locus of giant new problems for public management.
Topic:
Government, International Political Economy, and Sovereignty
Political Geography:
East Asia and Asia

2843. U.S. Policy in the Andean Region

Author:
Michael Shifter
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Even within Latin America's generally gloomy economic and political outlook, the countries of the Andean region—Colombia, Venezuela, Peru, Ecuador and Bolivia—stand out as especially problematic and unsettled. For the United States, this set of countries, with some 120 million citizens, poses enormous policy challenges. Fostering democracy, expanding trade, combating drugs, promoting stability, and advancing social development are just some of the challenges germane to this region which, in the context of globalization, post-September 11, become even more compelling.
Topic:
Foreign Policy, Economics, and Government
Political Geography:
United States, Colombia, South America, Latin America, Venezuela, Peru, Ecuador, and Bolivia

2844. Understanding Colombia: History and Background

Author:
Marco Palacios
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Ever more frequently, one hears that Colombia is at the point of disintegration. This concept could be developed in several ways. Let us look at two of them. A report in TIME magazine about a territory of 40 thousand square kilometers that President Pastrana marked out as a demilitarized zone in 1998, so as to proceed with peace negotiations with the FARC, claimed that: “Colombia is in danger of being divided into three parts, along lines dictated by the nation's mountain geography. The Marxist guerrillas are ascendant in the south; the government controls central areas and large urban centers; and right-wing, army backed paramilitary forces...hold sway in much of the north.” (Latin American Edition, September 28,1998).
Topic:
Foreign Policy and Government
Political Geography:
United States, Colombia, South America, and Latin America

2845. U.S. Interests and Options in Colombia: An Alternative Framework

Author:
Cynthia J. Arnson
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Over the last several months, and beginning most decisively in the spring of 2002, U.S. policy toward Colombia has gone through a significant shift. Traditionally defined in terms of counter-narcotics, and then expanded under Plan Colombia to include areas of democratic and economic strengthening and peace, U.S. policy is now focused squarely on security issues: improving the capacity of the Colombian government to combat left-wing guerrillas and right-wing paramilitaries; establishing an effective military presence throughout the national territory on which other state programs depend; and fighting the drug trade that finances all illegal armed groups. To illustrate the shift, consider the statements of two high- ranking U.S. officials. In August 2001, Undersecretary of State Marc Grossman told a Bogotá press conference that “we support Plan Colombia because...Plan Colombia recognizes that a negotiated settlement is the only way to achieve peace.” By March 2002, Secretary of State Colin Powell told a House subcommittee that “we have to help Colombia save its democracy from narcotraffickers and from terrorists.” The following discussion aims to understand how and why this shift came about, as well as its implications for U.S. interests and policy.
Topic:
Foreign Policy and Government
Political Geography:
United States, Colombia, South America, and Latin America

2846. Russian Health and Social Welfare: Limited Progress

Author:
Judyth L. Twigg
Publication Date:
08-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
It has become routine for Russian policy makers to characterize their various health and social problems—rising male mortality, HIV/AIDS, illegal drug use, even pension system reform—as threats to the stability and national security of their country. Russia's importance to American national interests was thrown in sharp relief by the events of September 11 and their aftermath. A stable, prosperous Russia is a crucial partner in the war on terrorism. The fact that so many of Russia's health and social indicators remain stagnant or in decline, despite limited improvement along some dimensions, should therefore be troubling to the United States.
Topic:
Government, Health, Human Welfare, Science and Technology, and Terrorism
Political Geography:
Russia, United States, Europe, and Asia

2847. The State of the Natural World

Author:
Kathryn S. Fuller
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The sad truth is that the natural world is everywhere disappearing before our eyes. More than 6 billion people fill the world, with a predicted 9 billion in the decades ahead. We are simply too many—the large numbers of poor struggling to raise the quality of their lives in any way they can and the fewer affluent who nonetheless consume so much of nature's bounty.
Topic:
Development, Environment, Government, and Science and Technology

2848. Plant Biotechnology and the Environment

Author:
Gordon Conway
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Many people who worry about the environmental effects of plant biotechnology fear that we are dealing with some new threat. I would argue that this is not the case. It is not plant biotechnology that is new and unknown, it is the combination of biotechnology and globalization, and the incredibly fast pace at which the two spread and interact, that should concern us.
Topic:
Climate Change, Development, Environment, Government, and Science and Technology

2849. Threats to Democracy: Prevention and Response

Author:
Elizabeth Frawley Bagley and Morton H. Halperin
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Threats to democracy—erosions of democracy and democratic institutions and unconstitutional interruptions to the democratic process—continue to plague countries on the path to democracy. Democratic governments, both individually and in their capacity as members of the Community of Democracies, regional and international organizations, and international financial institutions, must secure more effective international action against threats to democracy in states that have chosen the democratic path.
Topic:
Democratization, Development, Globalization, and Government

2850. Enhancing U.S. Leadership at the United Nations

Author:
Lee Feinstein, David Dreier, Lee Hamilton, and Adrian Karatnycky
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Enhanced American leadership at the United Nations is beneficial for U.S. interests and can help strengthen the UN and the international system. For many years, however, the United States has not been nearly as effective at the UN as it can or should be.
Topic:
Government, International Cooperation, and United Nations
Political Geography:
United States and America