Direct investment and industrial concentration

Cross‐national comparison of industrial concentration is considered here in terms of two hypotheses. The ‘technology/market size’ hypothesis [Merhav, 1969] predicts greater concentration in less developed countries than in the larger markets of developed countries. The ‘miniature replica’ hypothesis predicts that, when the degree of foreign ownership is high, industries in less developed countries may be less concentrated than their counterparts in advanced countries. Most cross‐national comparisons of firm size distributions support a predominance of ‘technology/market size’ effects. In this paper, data from the pharmaceutical industry in Brazil and other less developed countries are used to suggest that under certain conditions ‘miniature replica’ effects may prevail.     

MECHANISMS OF CONFLICT MANAGEMENT IN EU REGULATORY POLICY

In this conceptual article, we explore mechanisms of conflict management in European Union (EU) regulatory policy‐making. We build on J.G. March's distinction between aggregation and transformation as the two strategic options to deal with inconsistent preferences or identities that are at the source of social conflict. While this distinction is helpful in mapping conflict management mechanisms, the rigid association of these two options with the rival paradigms of rationalism and constructivism respectively has led political scientists to neglect conflict management strategies that work at the edges of aggregation and transformation. We show the potential of these latter strategies as intelligent ‘in‐action’ hybrids that emerge from ground‐level policy‐making praxis of actors navigating a complex institutional and policy environment. Specifically, we discuss five strategies: issue‐based aggregation; arena‐based aggregation (arena‐shifting and arena‐creation); socialization; re‐framing; and proceduralization, their underlying mechanisms and related scope conditions. The theoretical implications of this discussion lead us towards ‘strategic constructivism’. In the conflict management mechanisms that are of most interest, norms and ideational structures matter, but they are related to strategic actors who draw on and orchestrate ‘ideas’ in pursuit of political goals.     

A SCIENTIFIC STANDARD AND AN AGENCY’S LEGAL INDEPENDENCE: WHICH OF THESE REPUTATION PROTECTION MECHANISMS IS LESS SUSCEPTIBLE TO POLITICAL MOVES?

This article presents a model that introduces a scientific ‘gold’ standard as a reputation protection mechanism operating alongside an agency’s legal independence. It tries to gauge which of the two is less susceptible to political moves. The model suggests that the scientific ‘gold’ standard for agency decisions is less susceptible to political moves because of its important role as a legitimating device for both government ministers and regulators. Government ministers are able to address multiple audiences and even to respond to aggressive strategies by powerful interest groups by undermining one reputation protection mechanism (that is, an agency’s independence) without weakening the other (that is, the scientific barrier for granting full‐subsidy status to treatments that lack comparative therapeutic advantage). This implies that drug reimbursement mechanisms that provide a high quality of drug evaluation are designed to be effective.     

Beyond import substitution and export promotion: A new typology of trade strategies

There is considerable confusion in the literature as to what exactly is meant by ‘export promotion’, or ‘outward‐orientation’. This article identifies five mutually‐exclusive trade strategies, and defines the underlying sectoral and market orientations of each. It then measures empirically the strategies of six developing countries. The empirical findings indicate that some of the successful East Asian countries actually pursued an infant industry‐based, exporter‐oriented, ‘protected export promotion’ strategy, not the commonly perceived, static comparative advantage‐based ‘export promotion’ strategy; their protectionist policies are not mere exceptions, but integral elements of their export‐oriented strategy.     

The ownership advantage in Latin American FDI: A sectoral study of us direct investment in Mexico

This article develops a model which tests the hypothesis that sectoral FDI flows from the United States to Mexico over a four‐year period can be explained by the ownership advantages of US multinationals. Theoretical developments in the concept of ‘ownership advantage’ are used to guide the formulation of the research. The findings suggest that direct investment into US MNEs’ affiliates in Mexico is driven by benefits derived from embedded human knowledge, technology‐embodied advantages, and possibly from scale advantages. Local R&D is negatively associated with FDI.     

An investigation of the export expansion hypothesis

The present study examines the appropriate development strategies for industrially advanced and developed nations utilising the earlier research of Alfred Maizels. As before, the basic model used is the ‘ex‐ante’ model developed by Hollis Chenery and Alan Strout. The results support the ‘Export Expansion’ hypothesis which emphasises the importance of exports as a source of savings and as a catalyst for economic development for both highly developed and less developed countries. Gross Domestic Product, Non‐export Gross Domestic Product, and exports are used to explain savings in 11 less developed countries and six developed countries.     

Aid as an encounter at the interface: the complexity of the global fight against poverty

International development discourse has recently shifted its focus from top‐down economic adjustment to participative anti‐poverty policy. This shift hints at an acknowledgement of the local complexities within the poverty process and at a need to listen to and develop actions with the ‘poor’. But, whereas the mainstream argument remains couched in a technical framework, we argue that the fight against poverty is inevitably political. Conceptualising the aid industry as a set of global–local interfaces, it follows that a closer look at ‘participation’ in anti‐poverty interventions is needed to come to grips with the political issues involved. Four issues are discussed: the complexity of local ‘participation’, given the ‘polycephalous’ character of third world societies; the power biases in the aid chain; the potential problem of ‘false consciousness’; and the ambiguities of the role of local development brokers. We conclude that anti‐poverty policy is in need of ‘interface experts’, who, through ‘provocation’ can beget ‘participation’.     

The ‘true protection’ concept ‐ a comment on Greenaway and Milner

Empirical studies estimating shift‐parameters to evaluate the ‘true protection’ especially for developing countries often reach the result that those parameters have very high values. This study is to show that it is not substitutional relationships but much more the very inflationary monetary policy of many developing countries which forces the shift‐parameters towards one. Moreover it is shown that it makes little sense to distinguish between ‘traditional’ and ‘non‐traditional’ exports and that shift‐parameters are not necessarily stable over time.     

Changing the ‘front line’ to meet citizen needs

Public services need to be re‐designed to meet citizens’ needs and to become more accountable. The role of the ‘front line’ is crucial in this. It is the pivotal point on the ‘see‐saw’ connecting ‘the public’ and the ‘back line’ of national and local public service agencies. This article compares the experience of Sweden and the UK in designing new ‘front lines’ through ‘decentralisation’ and ‘one‐stop shops’. It concludes that these initiatives can help to meet citizen needs and that citizens notice the difference. Committed support from the ‘back line’ is crucial for success. Active democratic involvement of both politicians and local residents is also essential.     

International comparisons of income levels and growth rates

Development literature contains the hypothesis that middle income countries grow faster than other countries. This proposition has been related to a second hypothesis of stages and rates of growth, as well as to an ‘automatic mechanism’ for the reduction of international income disparities. This article examines the relevant evidence and finds the propositions unsupported by either theory or empirical data.     

COMPARING RESISTANCE TO OPEN DATA PERFORMANCE MEASUREMENT: PUBLIC EDUCATION IN BRAZIL AND THE UK

Much is known about governmental resistance to disclosure laws, less so about multi‐stakeholder resistance to open data. This study compares open data initiatives within the primary and secondary school systems of Brazil and the UK, focusing on stakeholder resistance and corresponding policy solutions. The analytical framework is based on the ‘Three‐Ps’ of open data resistance to performance metrics, corresponding to professional, political, and privacy‐related concerns. Evidence shows that resistance is highly nuanced, as stakeholders alternately serve as both principals and agents. School administrators, for example, are simultaneously principals to service providers and teachers, and at once agents to parents and politicians. Relying on a different systems comparison, in‐depth interviews, and newspaper content analyses, we find that similar stakeholders across countries demonstrate strikingly divergent levels of resistance. In overcoming stakeholder resistance – across socioeconomic divides – context conscientious ‘data‐informed’ evaluations may promote greater acceptance than narrowly ‘data‐driven’ performance measurements.     

THE CENTRE STRIKES BACK: META‐GOVERNANCE,DELEGATION, AND THE CORE EXECUTIVE IN THE UNITED KINGDOM, 2010–14

A growing literature on ‘agencification’, ‘quangocratization’, and the ‘autonomization’ of the state has highlighted a coordination dilemma in contemporary public governance whereby governments rely on delegated governance but are frustrated by the lack of control that arises from such structures. In the run‐up to the 2010 General Election in the United Kingdom this coordination dilemma was prominent as the capacity of the Cabinet Office to exert control over arm's‐length bodies, either directly or indirectly, received intense criticism. This article presents the findings of the first detailed research project to examine the subsequent Coalition Government's approach to this dilemma. It argues that in relation to the governance of public bodies, the role and capacity of the Cabinet Office has been transformed. In mapping this development the article explores the implications of the centre striking back in the context of ‘post‐New Public Management’ reforms.     

Interest rates,saving, investment and growth in mexico 1960–90: Tests of the financial liberalisation hypothesis

The theory of financial liberalisation argues that rising real interest rates induces more saving and investment and therefore acts as a positive stimulus to economic growth. This hypothesis is tested for Mexico over the period 1960–90, making the important distinction between financial saving and total saving. Financial saving is found to be positively related to real interest rates partly through capital flows and partly through domestic asset substitution, but total saving is invariant with respect to real interest rates. Investment is positively related to the supply of credit from the banking system, but the net effect of interest rates on investment is negative. Furthermore, taking McKinnon's ‘virtuous circle’ model of economic growth shows no favourable effects of interest rates on economic growth. It is concluded that any favourable effect of financial liberalisation and higher real interest rates on economic growth must come through raising the productivity of investment.     

NEW PUBLIC MANAGEMENT IN PUBLIC SECTOR ORGANIZATIONS: THE DARK SIDES OF MANAGERIALISTIC ‘ENLIGHTENMENT’

For many years the proponents of New Public Management (NPM) have promised to improve public services by making public sector organizations much more ‘business‐like’. There have been many investigations and empirical studies about the nature of NPM as well as its impact on organizations. However, most of these studies concentrate only on some elements of NPM and provide interesting, but often anecdotal, evidence and insights. Perhaps exactly because of the large amount of extremely revealing and telling empirical studies, there is, therefore, a lack of a systematic identification and understanding of the nature of NPM and its overall relevance. This paper contributes to a systematic identification and understanding of the concept of NPM as well as its multi‐dimensional impact on public sector organizations. First, the paper aims at (re‐) constructing a comprehensive taxonomy of NPM's main assumptions and core elements. Secondly, the paper tries to provide a more comprehensive and meta‐analytical analysis of primarily the negative consequences of NPM‐strategies for public sector organizations as well as the people working in them.     

A COMMENT ON ADAMS AND BALFOUR: DIGNITY VIOLATIONS,AN ALTERNATIVE VIEW OF ‘ADMINISTRATIVE EVIL’

The major focus of Adams and Balfour’s article in this volume is on what they call ‘administrative evil’ where ‘evil’ is not intended but somehow inherent in modern ‘technical rationality’. Adams and Balfour draw inspiration from Bauman’s (1989) work and, further, use the interesting metaphor that administrative evil is ‘masked’. This means it is difficult to recognize – unlike intentional evil which is ‘unmasked’, that is, readily recognized. Common to both forms is that ‘evil’ implies ‘depriving of humanity’ or to ‘make someone suffer’, and there is no reason to question this. A basic aim of the article is thus to draw attention to ‘masked evil’, phenomena Adams and Balfour believe are insufficiently attended to. There is a broad variety of problems which Adams and Balfour do not touch on but which more or less appropriately can be subsumed under the label ‘masked evil’. Adams and Balfour mention a continuum according to degree of deliberation on consequences. There are, however, no examples given of acts which do not occur at any extreme of deliberation. A related point is that there are historical and cultural determinants of whether (and to what extent) we regard some forms of suffering as ‘evil’ or not.     

Global South rhetoric in India’s policy projection

While an on-going statist project tries to portray India as a ‘rising power’ in world politics, the fact remains that India’s global projection continues to be heavily fashioned by the Global South rhetoric. Such rhetoric is inclusive of irredentism and contestation with western norms and ideals along with cooperation leading to a complex process of interactions shaping up the global order. For countries like India being claimant to the status of ‘civilisational state’, the strong urge for autonomy along with the self-perception of national and cultural greatness is shared by the elite along with a sense of strategic importance. Such identity formation, however, reduces and sometimes obliterates the gaps between ‘internal’ and ‘external’, bringing into academic scrutiny the whole range of policymaking and to what extent it matches the state rhetoric.     

Inflation in China: Old Versus New Phillips Curves

Among the few papers that have examined the determinants of inflation dynamics in mainland China, the majority of those that have investigated this matter argue that the traditional Phillips curve does not fit China's data. Some authors, however, conclude that the New Keynesian Phillips Curve does a better job of describing Chinese inflation behaviour in recent decades. This paper conducts an analysis of China's inflation behaviour from the late 1980s onwards by estimating both traditional and new Phillips curves using improved econometric techniques. We find that the New Keynesian Phillips Curve performs poorly in explaining China's inflation behaviour, whereas the traditional ‘old’ Phillips curve does significantly better.     

INTERAGENCY COLLABORATION IN HUMAN SERVICES: IMPACT OF FORMALIZATION AND INTENSITY ON EFFECTIVENESS

Interagency collaboration in human services production, it has been claimed, contributes to improved quality and/or reduced costs, but previous research on effectiveness from collaboration has failed to recognize that collaboration could be arranged in a multitude of ways. This paper investigates the effectiveness consequences of alternative collaboration arrangements. From a literature review, the degree of formalization and intensity, respectively, stand out as major aspects of collaboration. The impact on effectiveness from intensity and formalization was investigated through an explorative case study of collaboration projects in Sweden. Results suggest that the particular combination of formalization and intensity determines the impact on effectiveness. Combining low intensity with medium high formalization into ‘an assignments reallocation strategy’ of collaboration appears to have modest impact, whereas medium high intensity in combination with low formality, that is, ‘a commitment‐based networking strategy’, has a high potential to increase effectiveness. High intensity in combination with high formalization produces ‘a formalized team‐building strategy’, which is simultaneously promising and risky.     

Preferences,Spatial Prices and Inequality

This study examines the effect of prices on inequality in rural India during the period of economic reforms and beyond (1999/2000–2009/2010). It proposes a framework for calculating ‘exact’ price indices, based on the ‘Exact Affine Stone Index’ (EASI) demand system, and shows its usefulness by calculating spatial prices and regionally varying temporal prices that allow for both differences in preferences between states and over time. The study finds that the nature of inflation has been regressive during (1999/2000–2004/2005) and progressive during (2004/2005–2009/2010) and that the effects of temporal price inflation and spatial prices on inequality are qualitatively different.     

Navigating the dichotomy: The top public servant's craft

How in their day‐to‐day practices do top public servants straddle the politics–administration dichotomy (PAD), which tells them to serve and yet influence their ministers at the same time? To examine this, we discuss how three informal ‘rules of the game’ govern day‐to‐day political–administrative interactions in the Dutch core executive: mutual respect, discretionary space, and reciprocal loyalty. Drawing from 31 hours of elite‐interviews with one particular (authoritative) top public servant, who served multiple prime ministers, and supplementary interviews with his (former) ministers and co‐workers, we illustrate the top public servants’ craft of responsively and yet astutely straddling the ambiguous boundaries between ‘politics’ and ‘administration’. We argue that if PAD‐driven scholarship on elite administrative work is to remain relevant, it has to come to terms with the boundary‐blurring impacts of temporal interactions, the emergence of ‘hybrid’ ministerial advisers, and the ‘thickening’ of accountability regimes that affects both politicians and public servants.