The Political Economy of Intellectual Property Protection: The Case of Software

The end of the twentieth century was marked by a sea change in global governance in the realm of intellectual property rights (IPRs). Whereas countries historically retained substantial autonomy with regard to what they defined as intellectual "property" and the rights granted to the owners of intellectual property, the 1990s witnessed the establishment of new global obligations regarding national practices. This paper focuses on the case of software "piracy" to assess the mechanisms by which the new global obligations for the treatment of IPRs are transmitted from the international to the national levels. We first consider a set of national-level factors that many scholars have shown to be important determinants of IPR policy. We then supplement the standard emphasis on domestic factors with an analysis of new transnational factors: countries' multilateral obligations under the World Trade Organization's (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and bilateral pressures from the United States to increase the protection of IPRs. Population-averaged panel data models are used to assess the effects of these national and transnational determinants on levels of software piracy in 80 countries from 1994 to 2002. Our results indicate that membership in the WTO and bilateral pressures from the United States—particularly pressures that offer reciprocal concessions—lead to substantial increases in levels of protection in rich and poor countries. There is, in short, a new international political economy of intellectual property.     

Electoral studies and democratic theory reconsidered

In recent years, political theorists and social scientists have sought to assess the contemporary relevance and validity of a so-called classical doctrine of democracy in light of empirical evidence emphasizing the apathy, ignorance, incompetence, and/or authoritarian inclinations of ordinary citizens. Elite or revisionist theories have urged a drastic attenuation of the participatory commitments of classical democratic theory in light of this evidence. Defenders of classical democratic theory have often accepted this evidence as substantially accurate, staking their hopes upon future possibilities for the development of mass political competence in the democratically reconstituted structures of a participatory society. This article suggests that a critique of revisionist democratic theory can be developed solely on the basis of currently available findings. After reviewing an important body of evidence, we conclude that the distribution of political competence between mass and elite is far less unequal than has been assumed by revisionist proponents of elite democratic theory and conceded by their participatory critics.     

The right to vote and nomadic voter enrolment

What model of voter enrolment is appropriate for states with nomadic minority populations? The present paper examines this question with reference to an equality-based, moral right to vote and considers four models that track some of the different institutional strategies that have been developed by states with transient populations. The paper shows that the right to vote is compatible neither with a model that makes permanent residence in a constituency an absolute condition for voter enrolment and so excludes nomads from the electoral process, nor with a model that enables nomadic voter enrolment but restricts the number of nomads that can enrol in a single constituency. But the right is, subject to certain caveats, consistent with a model that enables nomads to enrol in a constituency of their choice and, as well, with a model that enables nomads to enrol and vote in a distinct, non-territorial constituency.     

Would a Value‐Added System of Retention Improve the Distribution of Teacher Quality? A Simulation of Alternative Policies

In this paper, we consider several features of teacher‐retention policies based on value‐added measures of effectiveness under a variety of empirically grounded rules and parameters. We consider the effects of policy design by varying the standard above which satisfactory teachers are expected to perform. We simulate recently adopted policies that remove teachers based on consecutive unsatisfactory performance and compare these to policies that remove teachers based on poor performance on average over a multiyear period. We also consider the precision of the performance measure and the underlying variation in teacher quality on policy effects. Finally, the simulation makes a step forward by incorporating recent empirical findings of a relationship between teacher quality and natural attrition from the profession. Our results indicate that deselection policies based on value‐added measures have the potential to improve teacher quality, although understanding the role of policy design, self‐selected exits, and the underlying variation in teacher quality is essential for determining policy effects.     

EXEMPT PROPRIETARY COMPANY ANNUAL REPORTING REQUIREMENTS: PUBUC INTEREST OR BUREAUCRATIC EMPIRE-BUILDING?

Abstract: Australian small business enterprises, operated as exempt proprietary companies, are exposed to numerous statutory requirements. The Corporations Law Simplification Taskforce has proposed a number of changes with the stated objective of minimising the statutory burdens faced by small business. One of the recommendations of the taskforce is that most exempt proprietary companies be exempted from the requirement to supply key financial data in annual returns lodged with the Australian Securities Commission. This paper provides a review of the existing statutory responsibility for exempt proprietary companies to prepare annual returns including key financial data and lodge them with the ASC. A common justification offered for the introduction and continued maintenance of annual reporting requirements has been the protection of the public interest. The “public choice” theory of regulation provides alternative explanations for the regulation, including the promotion of producer interests or the promotion of the interests of the regulatory agency responsible for the administration of the legislation, the Australian Securities Commission, and other government departments such as Attorney-General's, Finance and Treasury. The existence of alternative explanations raises the possibility that the regulation is not motivated exclusively by the public interest. Indirect evidence of the usefulness of the annual reporting requirements was gathered with a consideration of the quality of the key financial data disclosed in annual returns. More than 40% of the annual returns lodged by a sample of exempt proprietary companies, during the years 1986 to 1989, contained key financial data which was inconsistent with being extracted from a properly prepared balance sheet (where assets minus liabilities equal shareholders' equity). The possibility that the maintenance of annual reporting requirements is not in the public interest, and the limited reliability of key financial data disclosures made, offers some support for the recent recommendations of the Corporations Law Simplification Taskforce that annual reporting requirements for small business enterprises be modified.