The Political Economy of Institutions,Stability and Investment: A Simultaneous Equation Approach in an Emerging Economy. The Case of South Africa

The modern theory of investment identifies the importance of uncertainty to investment. A number of empirical studies have tested the theory on South African time series, employing political instability measures as proxies for uncertainty. This paper verifies that political instability measures are required in the formulation of the investment function for South Africa. It also establishes that there are distinct institutional factors that influence the uncertainty variable such as property rights and crime levels. We find that rising income and property rights lower political instability, and that rising crime levels are positively related to political instability. The inference is that political instability in South Africa may not represent uncertainty directly, since it is systematically related to a set of determinants. Instead, uncertainty would have to be understood as being related to a broader institutional nexus that in concert may generate uncertainty for investors. The paper highlights the significance of getting institutions right to ensure that uncertainty is kept to a minimum by providing a predictable long-term environment. Stability at a systemic level appears crucial if investment rates are to rise in South Africa and this paper demonstrates that stability in turn is driven by a sound institutional environment that has multiple dimensions.     

The ghosts of the past, the dreamlands of the future … or why fantasies are bound to fail in socialism and the market: The case of public health policy development in the Soviet Union and post-Soviet Russia

The transition ‘from planned to market economy’ in the former Soviet Union and in several countries in post-communist Europe is one of the most sweeping social transformations of the second half of the 20th century. It is widely accepted that this transformation was driven by a shared belief in the market's superior ability to deliver economic growth, to create wealth and contribute to the well-being of the populations after the demise of the defunct socialist ideology. However, the element of utopian fantasy undergirding the grand projects of socialism and the market is usually ignored, often with detrimental results. The study draws on Freudian and Lacanian psychoanalysis to propose an alternative reading of the process of transition, as an exchange of one powerful fantasy for another. My key contention is that as long as the common utopian dream of social harmony underlying both projects will not be recognised for what it is, which is in itself an unattainable desire of the human psyche, the illusory dreamlands will continue to exist and so will their violent political consequences. The study uses the example of public health policy development in the Soviet Union and post-Soviet Russia to illustrate how unacknowledged fantasy leads to violent utilitarianism as it was manifested in socialism, and is now repeated differently but no less tyrannically in the market. In conclusion, I argue for integrating fantasy as a constitutive element of political projects and explore the possibility of the autonomous (self-determined) mode of governance that Cornelius Castoriadis (1987/2005) theorised on and juxtaposed to the heteronomous ways of organising ruled by master signifiers present in various ideologies.     

奏响友谊主旋律 迎接美好新明天——中共中央政治局常委、中央纪委书记贺国强出访古巴等四国纪行

2008年6月21日，一架标有鲜艳五星红旗的飞机从首都机场腾空而起，中共中央政治局常委、中央纪委书记贺国强应古巴共产党、特立尼达和多巴哥政府、巴西政府、安哥拉人民解放运动的邀请开始对上述四国进行友好访问。自此，飞机每一次落地，播撒下的是中国人民对往访国人民的亲切问候；每一次起飞，带走的是往访国人民对中国人民的浓浓情谊。