The Bifurcation of the Two Worlds: assessing the gap between internationals and locals in state-building processes

Studies increasingly highlight the limits of state building conducted ‘from the top-down’. Building on the literature and using a Rosenauian concept in a novel way, this article posits that international interventions create a ‘bifurcation of the two worlds’. Departing from a study of Kosovo and Timor-Leste, the article posits that the massive arrival of staff involved in international governance will create a social gap between the international and the local ‘worlds’, which will in turn become a target of narratives of resistance by local actors. This bifurcation is exemplified by the ‘white car syndrome’, a concept representing the horde of white UN vehicles accompanying major interventions and developed in this contribution. Thus, the article attempts to shed new light on the legitimacy crises that Kosovo and Timor-Leste experienced at the beginning of the current century, while demonstrating and increasing the linkages between development studies and peace studies.     

Interest Rates and Investment in East Asia: An Empirical Evaluation of Various Financial Liberalisation Hypotheses

The article attempts to shed light on the appropriate interest rate policy in the process of economic development. To this end, we examine whether higher interest rates lead to higher investment (and growth) in four East Asian countries. We find that the investment rate went up with real interest rates up to 9 per cent in all four countries but started declining at still higher interest rates in two of the countries. Further, a banking crisis occurred in each of the three countries for which the real interest rates exceeded 9 per cent. This evidence rejects the ‘neo-structuralist’ argument. Nor does it support unbridled financial liberalisation. Yet, it provides only limited support to Stiglitz's case for ‘mild financial repression (real interest rates near zero)’ since reducing real interest rates from say, 6 to 3 or 0 per cent would have reduced investment. The optimum policy seems to be closest to McKinnon's ‘restrained financial liberalisation’ policy, that is, liberalisation with a moderate upper limit (about 6 or 7 per cent) on the real interest rates.     

INDIVIDUALS AND THE DYNAMICS OF POLICY LEARNING: THE CASE OF THE THIRD BATTLE OF NEWBURY

In recent years, the phenomenon whereby key individuals introduce effective ideas into policy processes has been identified as a vital agent in the redefinition of policy issues. In turn, this raises the basic question of how these individuals themselves undergo processes of learning and change. The article examines three models of policy learning in order to analyse what they may tell us about the dynamics of individual learning: the advocacy coalition framework; the process of learning by means of ‘development’; and issue redefinition through processes of punctuated equilibria. The models are examined in the context of the learning dynamics of three key individuals within the salient anti‐bypass group the ‘Third Battle of Newbury’. The article’s conclusion identifies three apparent paradoxes in individual learning dynamics and attempts to answer these with particular reference to the concepts of frame reflection and regulation by means of norm setting.     

The relevance of legitimation – a new framework for analysis

ABSTRACT

The legitimacy of political orders is an important reference point in political analysis, but the concept is difficult to operationalize and measure – particularly in those countries where legitimacy is critical, i.e. cases of political transformation, non-democratic rule and high state fragility. To be successful, legitimation (the process by which legitimacy is procured) has to fulfil two functions: relate demands for legitimation to government performance (the ‘demand cycle’), and relate legitimacy claims issued by the rulers to behavioural patterns of the ruled (the ‘supply cycle’). Looking at the recent academic debate, the article finds that empirical research has largely ignored the demand cycle, while attempts to explore the relationships underlying the supply cycle tend to suffer from misconceptions of basic terms. The article proposes a framework for empirical enquiry that addresses both shortcomings.     

Reframing Development in the Age of Vulnerability: from case studies of the Philippines and Trinidad to new measures of rootedness

This article argues that the contemporary triple crises of finance, food and environment, which have shaken the global economy since 2008, have exposed what should be seen as the Achilles heel of the dominant development theory and practice of the past 30 years: vulnerability. We argue that the crises not only add momentum to the delegitimisation of the old model, but also offer legitimacy for paths that lessen vulnerability and increase what we call ‘rootedness’ (a term we prefer to ‘resilience’ or ‘sustainability’). After offering a brief history of ‘vulnerable’ development and reviewing the literature on vulnerability from the development, economic and environmental fields, we use this vulnerability versus rootedness frame to present analysis from our field work in two ‘vulnerable’ countries: the Philippines and Trinidad and Tobago. Integrating the article's sections, we then propose a new interdisciplinary framework for development that builds on and supplements the human rights, ecological, equity and democracy frames: the notion of ‘rootedness’ at the household, local and country levels.     

Prospect theory,operational code analysis,and risk-taking behaviour: a new model of China’s crisis behaviour

Integrating prospect theory and operational code analysis, this paper introduces an innovative approach to studying the decision making of Chinese leaders during crises. The unique contribution of this paper is to adopt the methodology of operational code analysis to measure the domain of actions of policy makers in the application of prospect theory. We suggest that leaders’ operational code beliefs can help us to identify in which domain of actions (gains or losses) leaders are located during crises. Xi Jinping experienced two notable foreign policy crises in 2014, the ‘oil rig’ crisis with Vietnam and the ‘P-8 crisis’ with the United States, which are examined in detail to illustrate Xi’s operational code beliefs and risk-taking behaviour of ‘confident accommodation’ behaviour during crises. To test the process validity of integrating operational code analysis and prospect theory, Hu Jintao’s operational code beliefs and crisis behaviour in 2011–2012 are then compared to Xi’s beliefs and decisions in this study of China’s crisis behaviour.     

Are the LDCs really the world’s least developed countries?

The term ‘the least developed countries’ (LDCs) is widely understood to designate, exactly as stated, the world’s least developed countries. In conjunction with the 2015 United Nations (UN) triennial review of the LDC category, this article attempts to critically evaluate the UN’s list of LDC countries in the light of various indicators – economic, social, political, military and security related, and psychological. It concludes that the official and actual lists of LDCs, despite important similarities, are not completely identical. The term ‘the LDCs’ as used by the UN is therefore not fully consistent with the reality it attempts to designate and describe.     

Outlook for the ‘developing country’ category: a paradox of demise and continuity

In the 2016 edition of its World Development Indicators (WDI), the World Bank introduced an important change in the way it categorises countries: it explicitly stated the intention to eliminate the distinction of countries as ‘developing’ and ‘developed’. This decision represents the first time one of the world’s most powerful and influential international organisation has overtly decided to move away from this fuzzy-yet-ubiquitous terminology for categorising countries (and not proposing to replace the division). This paper takes this shift to discuss country groupings based on development levels, particularly the ‘developed’/’developing’ dichotomy, focusing on the latter term. The paper argues for a paradoxical scenario, wherein the label ‘developing’ will increasingly become analytically useless while concurrently retaining – or even strengthening – its power in the context of foreign policy strategies. The analysis details the motives behind this paradox and provides a reasoning for when and why the term’s usage is likely to be weakened or strengthened. Simply put, the ‘developed’/’developing’ dichotomy is weakening in its analytical capacity, mostly due to the increasing heterogeneity among countries under the ‘developing’ label and concurrent porosity of ‘boundaries’ between the two categories, while showing little sign of being phased as a term for self-identification.     

Water crises: political construction or physical reality?

Various definitions of water crises emerge from epistemic communities deploying a great disparity of methodologies and fundamental hypotheses. Scientists' perceptions of which power structures legitimately carry out water management affect their definition of a crisis, their capacity to ask questions and the manner they formulate them. This determines the stakes and the actors they can observe or the scale of analysis they find relevant. This leads some to recommend a ‘solution’ that appears to be a disaster to others. This article examines how three epistemic communities have each built their science by promoting very specific understandings of what is a water crisis. Proponents of the ‘global water crisis’ spawned Integrated Water Resources Management while proponents of the ‘municipal water crisis’ locked the perception of water equity within the Millennium Development Goals. Researchers on small-scale irrigation and property regimes have often disagreed with such recommendations, often presented as inevitable.     

STRUGGLING WITH AMBIGUITY: PUBLIC MANAGERS AS USERS OF NPM‐ORIENTED MANAGEMENT INSTRUMENTS

Improving public sector performance involves both ‘knowing’ and ‘doing’ problems. With the emphasis on the ‘doing’ problem, this study examines public managers as users of management instruments (MI) in attempts to improve the performance of public services. The article explores uses of three MIs in Finnish local government by using the conceptual framework of ambiguity. The article demonstrates why and how the use of MIs does not always simplify the public management exercise. It may become even more ambiguous. It is important to comprehensively understand the ways in which uses and users of MIs intervene in the process of public service delivery. It is argued that understanding MI uses in public administration necessitates a more profound theoretical approach acknowledging the ways in which ‘rational intentions' for performance improvements turn into situated, boundedly rational, managerial practice. In the context of productivity programmes, such understanding is essential to researchers and practitioners of public administration.     

Being here and there: migrant communities in Sweden and the conflicts in the Horn of Africa

Abstract

The largest migrant communities in Sweden come from Africa's most troubled region, the Horn. These are the Somali and Ethiop-Eritrean communities. This paper examines the not-so-obvious ways in which Ethiop-Eritrean and Somali communities in Sweden influence the political developments, particularly the conflicts at ‘home’. Many of these immigrants living in Sweden keep up with social and political developments in their countries of origin almost on daily basis and remain engaged, to a large extent, in the affairs of both their families and communities ‘out there’ while they ‘are here in Sweden’. This article therefore focuses on the particular forms of engagement that have either intended or unintended impact on the intractable conflicts in which the societies in these countries are engaged. I argue that ‘nostalgia underpins the immigrants’ sense of commitment to the affairs of their countries of origin, and therefore, providing moral and material support to warring groups derives the impetus largely from the affective dimension of migration.     

Colony of genes,genes of the colony: diversity,difference and divide

In this article we propose an ideal typology of reactions to genomics—the study (in complex transnational organisational research arrangements) of the genome, the sum total of the genetic material in any particular organism—from the point of view and perspective of communities that find themselves in marginal positions. Genomics is a particularly important part of ‘technoscience’—science mingled with technology. Within genomics the concepts of diversity and difference are paradoxically intermingled. Genetically speaking, the difference between human beings and nature is fading. Homo sapiens, viewed as genetic material, is becoming part and parcel of ‘natural resources’. Diversity is the moral dimension of this perspective. At the same time genomics appears to map, mark and thereby define difference; difference between individuals and between groups of people, but also between healthy and ill, and finally between ‘normal’ and, consequently, ‘abnormal’, deviant. Difference is the moral dimension of this counterpoint. We argue that genomics is an important field of study for Africa. At the same time, however, we discern a potentially dangerous new divide: a genomics divide between Africa and the West. We argue that more research is needed on contextualisation of ‘genomics’.     

The dilemmas of market socialism: Capital market reform in China ‐ part II: Shares

This two‐part article analyses the attempts to reform the socialist financial system in China by diversifying financial assets and introducing capital markets. The approach used is that of political economy, in the sense of elucidating the interplay between political and economic interests, actors and issues in the reform process.

Part I discusses the issue of bonds by governments and enterprises. Although the reform era has seen gradual progress towards something resembling a bond ‘market’ in terms of a diversification of bond types and growing competition between bond issues, there is no evidence that this has improved allocative efficiency in the economy. Rather, bonds have functioned as one instrument in a complex struggle for resources between political, institutional and economic actors in the context of a continuing ‘shortage economy’. This competitive system falls far short of a true ‘market'; rather it embodies powerful systemic factors reflecting the basic structural and institutional features of a semi‐reformed socialist economy.

One of these systemic factors is the institution of social ownership of the means of production which has been called into question by the emergence of shares and share markets, a process we discuss in Part II. Share issues have in the event been economically unimportant but politically important since they challenge the ideological and institutional underpinnings of a ‘socialist’ economy. The key to the future of this form of financial liberalisation depends not merely on further progress in complementary areas of economic reform policy, but also on a resolution of these fundamental political issues.     

Debt crisis of the less developed countries and the transfer debate once again

In the perspective of substantial amount of net transfers from the debtor less developed countries (LDCs) to the creditor developed countries (DCs) in the recent debt crisis years, there is a renewed debate (that started in the context of German reparation payments after the First World War) on the question of transfer burden of debt. The present study assembles some evidence to show that the LDCs in general expanded their export‐volumes and faced losses in their export unit values in the process of their debt repayments. Many LDCs faced this transfer burden of debt irrespective of whether their export drive was in the field of primary products or manufactures. Thus the Keynesian analysis for German transfer problems seems to be relevant in the context of the present experience of the LDCs. For some debtor countries, the ‘insoluble’ transfer problem mentioned by Keynes exists as they are facing ‘Fisher's paradox’: The more the debtors pay, the more they owe.     

Neoliberal globalisation,the nation-state and financial crises in the semi-periphery: A comparative analysis

The process of neoliberal globalisation has been associated with successive financial crises in the context of the 1990s, raising serious doubts concerning the sustainability of rapid growth in an environment of uncontrolled movements of short-term capital. The article probes into the origins of the financial crises in the semi-periphery through a structured comparison of three key recent crises in the world economy, namely the Mexican and Turkish crises of 1994 and the Asian crises of 1997. Whilst the magnitude of the capital flows and the dimensions of the subsequent crises are strikingly different, there are nonetheless important elements common to all three cases studied. One such common element involves the overdependence of the countries concerned on the short-term financial flows, in a setting characterised by premature capital account liberalisation in the absence of adequate regulation. It is striking that, contrary to the conventional IMF wisdom, financial crises have occurred in spite of 'sound fundamental', namely fiscal equilibrium and low inflation. The recent financial crises highlights a paradoxical situation: the need for effective regulation at a time when the capacity of the nation state to undertake the type of regulation needed severely circumscribed. Hence, the establishment of an effective regulatory framework at the global level emerges as a major requirement if successive financial crises, with significant economic and social cost, are to be avoided in the future.     

Human Rights and Democracy Promotion: reflections on the contestation in,and the politico-economic dynamics of,rights promotion

This contribution seeks to engender more nuanced reflection on the role of human rights advocacy and specifically its role in democracy promotion. The two agendas have been seen as conjoined and harmonious by most aid donors; yet, interestingly and perceptively, some commentators have recently criticised the notion that they are agendas that are straightforwardly compatible or coherent. I examine here from a theoretical perspective the plausibility and the consequences of the claim that the two agendas share a more complex and controversial relationship than is often assumed. Specifically, I seek to highlight the importance of paying attention to the possibility that rights themselves are inherently ‘contradictory’ in nature and that therein lies their contribution to the democratisation agenda. Indeed, by drawing on Samuel Bowles's and Herbert Gintis's view of rights claims as ‘clashing’ and ‘politico-economically’ grounded, the aim of this article is to argue for a more politicised and openly contradiction-accepting approach to rights and democracy promotion. I contextualise this (theoretically motivated but practically consequential) argument in the context of the EU's human rights and democracy promotion policies.     

Enforcing labour rights of irregular migrants in Indonesia

The multi-directional nature of labour migration flows has resulted in an increasing number of countries having become both senders and receivers of regular and irregular migrants. However, some countries continue to see themselves primarily as senders and so ignore their role as a receiving country, which can have negative implications for the rights of migrants in their territory. Using the example of Indonesia, which is State Party to the 1990 UN Convention on the Rights of All Migrant Workers and Their Families, this article demonstrates that irregular migrant workers in this country have the legal right to protection against labour exploitation even when they work despite the government’s prohibition on employment. The article discusses the ‘right to work’ and how international human rights law has translated it into the ‘right to protection from labour exploitation’ for irregular migrants in Indonesia. By way of two case studies about the Indonesian government’s handling of irregular migrants, it shows how it prioritises enforcement of the employment immigration law over labour and employment laws much like countries that have not ratified the ICRMW. It also draws attention to legal protection gaps that emerge for asylum seekers when they are recognised to be genuine refugees.     

Debt Politics and the Free Trade ‘Package’: the case of the Caribbean

While much has been written on how powerful institutions have used debt crises to foist free trade agreements on poorer states, this paper explores how the foisting of free trade agreements on poorer states has resulted in debt crises. Part one critiques the common-sense understanding of ‘free trade’ as a mere technical or policy issue, arguing that it is an intricate political, economic and ideological ‘package’ rooted in complex social, historical and cultural forces. Part two explores the role of debt in the free trade package by examining the impact of free trade agreements on the Caribbean over the past decade, during which time the region has experienced growing public and personal debt crises, further fuelled by an aid packages that included millions of dollars of concessional loans. It is argued that the contradictions of ‘free trade’ are mitigated through a ‘debt for trade’ paradigm, which Caribbean states are beginning to subvert through new preferential South–South partnerships.     

From ‘Constructing Socialism’ to a ‘Socialist-oriented Market Economy’ in Contemporary Vietnam: A Critique of Ideologies

Abstract

In power, the Vietnamese Communist Party has experienced three ‘moments’ of growth, each with some differences of detail and of meanings: ‘traditional communism’; the transition from a planned to a market economy in the 1980s; and, since 1992, a ‘socialist-oriented market economy’. For each, the article discusses the ideologically defined nature of change; intentionality—‘how growth was to happen’; and the quantitative data used. It suggests that critiques throughout the period have engaged with the intentionality issue: in the first moment, by isolating the socialist relations of production within socialist construction as the cause of difficulties; more recently, by engaging with the lack of effective policy despite contemporary ideology's unreliable belief in policy as key to growth.