Risk, Gender, and Development in the 21st Century

Globalization creates wealth but also financial crises. Although these systemic risks are generated by all participants in the world economy, their costs are disproportionately borne by the poor, especially women, who live in developing nations, with irrevocable damage to their capabilities. Since current reform proposals do not address inequities in the distribution of the costs of financial crises, we suggest changes in the design, implementation, content, and funding of policies that could provide security to women during crises. We argue that our suggestions will not succeed without women's participation in the debate on the reform of international financial architecture.     

Crises and unpredictability in developing countries

Developing countries have suffered most of the financial crises in the context of the process of economic and financial globalisation. Both current and previous crises have revealed that unpredictability is a feature common to all the episodes which occurred during the process of globalisation. Although certain alarms went off, any of those external financial crises were actually predicted by the advanced methods in use for prediction and country risk analysis. Taking into consideration the information above, the aim of this paper is to check the ability to foresee external financial crises in developing countries of both the country risk index published by Euromoney and the Credit Ratings variable included therein. We have focused on the external financial crises that took place between 1992 and 2011, that is, in a full globalisation era. The results are negative. It appears that neither the index nor the sovereign ratings are able to reflect early enough the vulnerabilities that arise previously to the setting off the crisis episodes. This leads us to conclude that the existing models of country risk have limits. Thus, it would necessary to develop new instruments to measure this risk, considering uncertainty as an essential feature of the current economic and financial environment.     

Coping with financial crises: explaining variety in regional arrangements

Financial regional arrangements vary across countries and change over time. Until recently, most economists and political scientists took the European model of monetary integration as the yardstick to which all other regional financial arrangements had to measure up in this article. It is argued that the Euro crisis provides an opportunity for scholars to adopt a different perspective that does not interpret the variety of financial arrangements merely as economic deficiencies caused by the incapacity or unwillingness of regions to follow the European model. Instead, the comparative study of monetary and financial regionalism has to account for the different factors that shape variations. These go from different levels of economic development, over regional political and economic preferences to historical processes which shape the institutional context and the constellation of interests and social forces. Such an approach, which integrates economic and political science approaches, de-centres the Euro model and opens up a new understanding of the global diversity of regional monetary and financial cooperation, and their potential to cope with financial crises.     

Economic Development Subsidies and the Funding of Private Prisons

For-profit prison corporations have sold prison privatization as a tool for economic development. The idea of prisons became more appealing once for-profit prison corporation demonstrated that they could finance, build, design, and construct prisons with private capital from private investment companies. Many private prisons throughout the United States are provided local, state, and federal economic development subsidies — which may include tax advantaged financing, property tax abatements, infrastructure improvements, and personnel training and development resources. Most research on prison privatization has examined costs and quality comparisons of private run prisons to government run correctional facilities. This article examines the factors that predict economic development subsidies to private prisons, which include: economic, social control, geographic, and political factors. Logistic regression results indicate the per capita gross state product, political ideology, black male disenfranchisement, and mandatory sentencing laws predict economic development subsidies to private prison corporations.     

Tobacco Policymaking and Administration in Bhutan from 1991 to 2009

From 1991 to 2004, a significant grassroots campaign, in the eastern Himalayan Kingdom of Bhutan, that included urban and rural people and Buddhist monks, called for national legislation to ban tobacco sales. In 2004, Bhutan banned all tobacco sales and restricted smoking in public areas, but permitted the importation, with a high duty and sales tax, of small amounts of tobacco products for personal use. From 2004 to 2009, this novel experiment in tobacco control resulted in a strong black market, considerable tobacco smuggling, and continued tobacco use by crucial sectors of the population, particularly minors. In response, in 2009, Bhutan passed important amendments to its 2004 anti-tobacco law that tightened administration and enforcement efforts, established specific penalties for violations, and monitored tobacco consumption trends. However, if tobacco consumption trends do not improve and smuggling is not successfully counter-acted, Bhutan should consider changing, to some degree or in total, its anti-tobacco program.     

Economic Reform and Social Change in China: Past, Present, and Future of the Economic State

China's socioeconomic crisis before 1978 and its success over the past two decades can be viewed as a zigzag process of politicization and depoliticization of the economic state. By summarizing the Chinese experience, this article shows the importance of a specific pattern of general public policy (GPP) in determining the nature of a policy system. China's economic and serialized reforms since 1978 are reviewed in order to illuminate the current situation and future direction of the nation. The changes have undermined the economic state by creating a trend of de-economicization in the Chinese government. If economic reform and social change are to continue smoothly, another transfer of state emphasis to more balanced development is required.     

Institutions and Caribbean Economic Performance: Insights from Jamaica

We explore the impact of social institutions on economic performance in Jamaica through a reinterpretation of the plantation economic model. In its original form, the plantation model fails to develop a causal link between the plantation legacy and persistent underdevelopment. Despite its marginalization, the model remains useful for discussions on growth and development. Consequently, we offer a reappraisal using the causal insights from Kenneth Sokoloff and Stanley Engerman. We use two examples to demonstrate how inequality encourages the formation of institutions that are inconsistent with growth, and an empirical analysis to confirm the hypothesized relationship between inequality, institutions, and economic development. Since inequality is expected to influence growth indirectly, we use a structural specification, which follows William Easterly’s recent test of Sokoloff and Engerman’s argument. Our reliance on a time-series specification is unique. We demonstrate that the expectation that, on average, inequality and growth is negatively related and that institutions may compromise growth are accurate for Jamaica, the most cited Caribbean nation in the current discourse. Our results carry several policy implications, including support for the recent calls in Jamaica for political restructuring. However, both the paucity of similar studies and the importance of the implications for sustainable growth and development demand further analyses.

Balance Between Local Economic Development and Environmental Sustainability: A Multi-level Governance Perspective

This study seeks to explain why U.S. local governments utilize environmental sustainability to promote economic development. Economic development and environmental protection need not be competing objectives, but rather, environmental protection can enhance local economic competitiveness. Using data from the ICMA Economic Development Survey, this study tests an empirical model that includes state sustainability initiatives, participation in climate protection networks, and political attitudes toward economic development as predictors of local policy decisions. The findings reinforce a multi-level governance perspective on explaining the balance cities seek to achieve between environmental protection and economic growth.     

Decentralization and Economic Growth: Specification,Measurement, and Direction of Causal Relationship

The concept of decentralization has attracted the attention of scholars and policy makers alike for number of decades. Yet, there still remains a significant amount of confusion over its measurement and its contribution to an economy. Current literature on decentralization is characterized by the multitude of conflicting definitions and measurement instruments. Current literature on the relationship of decentralization and economic growth is also mixed. This article builds on the existing literature and develops a decentralization index that includes its most frequently mentioned dimensions. We find that our newly developed index captures decentralization concept better than other tools and that there is no significant relationship between decentralization and economic growth.     

Restoring Fiscal Balances Post the Global Economic Crisis in Botswana

This article discusses the restoration of fiscal balances in Botswana after prolonged deficit financing. Botswana is a diamond-export-dependent country; resultantly, it suffered revenue losses due to depressed demand for diamonds during the global economic crisis. Reduced revenues necessitated deficit financing between 2008/09 and 2011/12. Debt was financed through dissaving and borrowing. However, the government restored budget balances in April 2012. While this case study is Botswana-specific, there are general lessons. These are: using a crisis to introduce public finance reforms; eschewing populism aimed at short-term gains; and the need for politicians to take very bold decisions to guide fiscal policy.     

Economic crisis and the crisis of national identity in Slovenia: toward a new notion of social order

This paper addresses the influence of the economic crisis on national identity in Slovenia. It first analyzes the creation of the contemporary national identity following independence in 1991 that was established in relation to a negatively perceived Balkan identity, which represented “the Other,” and in relation to a “superior” European identity that Slovenia aspired to. With the economic crisis, the dark corners of Slovenia’s “successful” post-socialist transition to democracy came to light. Massive layoffs of workers and the bankruptcies of once-solid companies engendered disdain for the political elites and sympathy for marginalized groups. The public blamed the elites for the country’s social and economic backsliding, and massive public protests arose in 2012. The aftermath of the protests was a growing need among the people for a new social paradigm toward solidarity. We show that in Slovenia the times of crisis were not times of growing nationalism and exclusion as social theory presupposes but, quite the contrary, they were times of growing solidarity among citizens and with the “Balkan Other.”     

Economic Transition in Latin American and Post-Communist Countries: A Comparison of Multilateral Development Banks

This article examines regional development banks and their relationship with the World Bank. Specifically, the article analyzes the roles of the Inter-American Development Bank (IDB) and the European Bank for Reconstruction and Development (EBRD), and the factors that have influenced the creation of these international financial institutions. Most of the literature examines regional development banking practices and development strategies as if all regional banks were the same. However, the missions of the IDB and the EBRD are quite distinct. While the IDB primarily provides social sector loans to nation-states, the EBRD primarily provides private sector loans for finance and business development. Given that Latin America and the former Soviet Union share many of the same economic, political and social problems, it is surprising that these institutions are so different. What accounts for the different missions of these regional banks? We find that the influence of borrowing and non-borrowing member states in the creation of these banks can help explain some of the differences between the IDB and the EBRD.     

Decentralization in Tanzania: Design and Application in Planning Decisions

Every state copes with the question of which level of government should bear responsibility for social services such as health care and education. Tanzania is no exception. The current government infrastructure of Tanzania is based on the principle of Decentralization by Devolution (DbyD) and can be seen as a reaction to previous structures based on centralized de-concentration. This article reviews the decentralization as designed in the DbyD policy and its application in planning decisions by assessing the involvement of local communities in decision making, based on a case study in two primary facilities. The conclusion is that even though policy states a strong decentralized government, in reality central preferences dominate the decision-making. Wishes expressed in local plans are ignored in the planning procedure. The article identifies the factors that contribute to this central influence and concludes with reviewing the value of decentralization policy in Tanzania and other developing countries.     

Policy Relations and Policy Subsystems: Financial Policy in Hong Kong and Singapore

Existing studies of Hong Kong’s and Singapore’s success as leading Asian international financial centers (IFCs) have largely focused on economic structural factors at the neglect of political economic contextual variables. Taking a policy subsystems approach and based on extensive field research, this article attempts to address this shortcoming by conceptualizing the “policy relations” that exist between state, industry, and other non-state actors in the two IFCs and delineating the “division of policy roles” among these actors. In the process, this article contributes toward the existing IFC literature and conceptualizes the sociopolitical relations that exist among financial sector actors.     

Globalisation before the crash: the City of London and UK economic strategy

The global financial crisis provides an opportune moment to analyse the rise of the City of London financial markets, their role in the globalisation process and an attempt by the Labour Party Left in the 1970s to challenge emerging transnational forces. The USA became the world's ‘hegemon’ after the Second World War, but London retained its power in finance; well placed to challenge the post-war Keynesian regulatory consensus in favour of globalising interests, theoretically and politically served by the rise of neo-liberal ideology. In response the Labour Party Left devised its radical ‘Programme 1973’ and subsequently the Alternative Economic Strategy, which in seeking to defend social democracy, understood the necessity to prevent the erosion of national financial controls. The 1976 International Monetary Fund crisis was a defining moment in this battle. This article includes interviews with key contemporary actors and is based in the discipline of International Political Economy.     

Islamic Fundamentalism and Women's Economic Role: The Case of Iran

It is commonly believed that Islamic fundamentalism is responsible for the low female employment rate in the Middle East and North Africa. I earlier presented evidence from Indonesia indicating that the deteriorating conditions of women's economic role in the 1990s was related to the economic circumstances of the Asian Crisis, not to the rise of political Islam (Bahranitash, 2002). In fact, in Indonesia, increasing support for the Islamic movement was itself spurred by the Asian Crisis. As a contrasting case, I here examine Iran, a country where political Islam has been in power for over two decades. If commonly held views about the impact of the Islamic religion on female employment were true, one would expect a steady or sharp decline of the female employment rate in postrevolutionary Iran. The empirical data show the reverse. Women's formal employment rates increased in the 1990s and did so much faster than they had during the 1960s and 1970s, when a pro-Western secular regime was in power. This sharp increase in women's employment seriously challenges the view that religion explains women's economic status in Muslim countries. The evidence from Iran indicates that the situation of women's employment there has followed a common pattern of elsewhere in the South—an overall increase in female employment. This fact then suggests that the forces of international political economy, rather than religion, appear to be a determining factor in the state of women's economic role in Iran.     

Unpacking Local Economic Development: A Case Study from Nekemte Town and Its Hinterlands,Oromia, Ethiopia

Most agree that local economic development (LED) is a “bottom-up” development approach seeking to unleash the development potential of a locality. Nonetheless, focusing closely on the dynamics of specific localities, this can be criticized for being too local and overlooking extra-local links. This article explores the drivers of LED from the local economic actors’ perspectives in Nekemte town and its hinterlands, Oromia region, Ethiopia. The results clarify that LED is not only just “local”, but also an approach that links urban and rural areas, and thus, understanding rural–urban linkages is a prerequisite for a better understanding of the local economic development.     

Public Employment in the Economic Downturn: The Case of an Australian State

Employment has been severely affected by the global financial crisis (GFC). This research considers the effects of the GFC on an Australian state public service workforce, reviewing trends before, during, and in the aftermath of the GFC. The workforce continued to grow, but at a slower pace, and with changes in inflows and outflows of employees. The workforce profile changed, with some decrease in the proportion of more vulnerable groups and some retention of stronger groups perhaps seeking a refuge during the GFC. Significant decentralization of workforce responsibility has meant comparatively little central effort to effect change during the GFC.     

Institutional and Economic Factors Affecting the Adoption of International Public Sector Accounting Standards

This article investigates the environmental factors associated with countries’ decision to adopt International Public Sector Accounting Standards (IPSAS). Based on a sample of 110 countries, the results reveal a positive influence of external public funding (coercive isomorphic pressure), the degree of external openness (mimetic isomorphic pressure), and public sector organizations’ importance on IPSAS adoption. They show a negative effect of the availability of local GAAP on this decision, whereas education level (normative isomorphic pressure) is a nonsignificant factor.

This research contributes to the international accounting literature in the public sector. The results are relevant to standard-setters, regulators, researchers, international financial organizations, and non-adopting countries.     

The Nexus of Political Violence and Economic Deprivation: Pakistani Migrants Disrupt the Refugee/Migrant Dichotomy

There have been discussions about how the labels “forced migrants,” related to political violence, and “voluntary migrants,” associated with economic factors, cannot be understood in categorical ways. However, there has been less focus on the specificities of the asylum-migrant nexus from the perspective of migrants. This essay discusses how such factors intersect as understood by Pakistani migrants residing in Germany. Through enacting a critical view of Pakistan, the migrants demonstrate how aspects of corruption, economic deprivation, and political violence come to intersect so that is becomes impossible to classify asylum seekers in binary/dichotomous ways.