Of ‘Misguided Notions’ and Misguiding Nations: The Growth Report,Poverty and Climate Change

The Growth Report neither addresses the issue of growth and poverty, nor considers the implications of binding constraints on global carbon emissions, which invalidate the argument for global growth as a positive‐sum game. The polarisation of the debate on growth and poverty reflects different perspectives and priorities between economists, environmentalists and development professionals, and the absence of constructive dialogue between them. “Growth or no growth?” is the wrong question. Reconciling poverty eradication and tackling climate change requires us rather to ask what our ultimate objectives are, and how economic policy can best achieve them.     

The normalizing role of rationalist assumptions in the institutional embedding of neoliberalism

The political economy of Britain over the past three decades provides an interesting example of the consolidation, normalization and institutionalization of a new economic paradigm – neoliberalism. As such, it serves as a potentially instructive focus for debate both about the conditions under which economic paradigms are replaced and consolidated and the evolution of such paradigms through the process of institutionalization. In this paper I suggest that the institutionalization of this new economic paradigm has been associated with the shift from a normative to a normalized and necessitarian neoliberalism. I examine the role played by rationalist assumptions in this extended process of normalization-institutionalization. After presenting a stylized account of the evolution of British neoliberalism, I show how New Labour's monetary policy regime is the heir to the legacy of monetarism and its agenda of labour-market reform is the heir to Thatcherism's supply-side economics. I suggest that the time-inconsistency thesis and the business school globalization thesis have played an equivalent role, for New Labour, to that played for the new right by monetarism and supply-side economics in legitimating neoliberalism. In this way neoliberalism has been normalized. In the final sections of the paper I reflect on the implications of the normalized and necessitarian character of neoliberalism in Britain for its contestability and for democratic economic governance more broadly.     

Evidence and Contestation in the Indigenous Policy Domain: Voice,Ideology and Institutional Inequality

There is a tension in the evidence‐based policy paradigm as it concerns Aboriginal and Torres Strait Islander people, particularly with regard to their standing as evidence providers. Aboriginal people in Australia have primarily been seen as a ‘problem to be solved’ and racialised views of Aboriginal competence have allowed for past policy, now recognised as harmful, to be justified as being ‘for their own good’. This article considers some of the complexities of the evidence‐based policy paradigm as it applies to the Indigenous policy domain, arguing that in such a turbulent field the use of evidence is inevitably ideological and selective. The article concludes that, in light of persistent institutional inequalities, including Aboriginal and Torres Strait Islander voices and perspectives in genuine dialogue about policy is the only way to navigate this difficult terrain with any chance of success.     

Climate change,markets and standards: the case of financial accounting

Abstract

The paper examines unresolved attempts since 2005 to develop financial accounting standards for greenhouse gas emission allowances. It is a detailed empirical case study into how the large-scale experiment of carbon markets has manifested in a particular area of professional expertise – financial accounting. Theories about the role of standards usefully draw attention to the hidden work of standards in society and help explain why some things are difficult to standardise. However, there are notable gaps in conceptualising how standards are integral to wider processes of policy and technology change. Ideas from governmentality and hybrid markets (agencements) are therefore used to explore further the role of standards within markets, and provide a welcome avenue for thinking afresh about the relationship between climate change and standards.     

Learning and Change in 20th-Century British Economic Policy

Despite considerable interest in the means by which policy learning occurs, and in how it is that the framework of policy may be subject to radical change, the "black box" of economic policy making remains surprisingly murky. This article utilizes Peter Hall's concept of "social learning" to develop a more sophisticated model of policy learning; one in which paradigm failure does not necessarily lead to wholesale paradigm replacement, and in which an administrative battle of ideas may be just as important a determinant of paradigm change as a political struggle. It then applies this model in a survey of U.K. economic policy making since the 1930s: examining the shift to "Keynesianism" during the 1930s and 1940s; the substantial revision of this framework in the 1960s; the collapse of the "Keynesian-plus" framework in the 1970s; and the major revisions to the new "neoliberal" policy framework in the 1980s and 1990s.     

Voluntary Regulations and Innovation: The Case of ISO 14001

Governments enact environmental regulations to compel firms to internalize pollution externalities. Critics contend that regulations encourage technological lock‐ins and stifle innovation. Challenging this view, the Porter‐Linde hypothesis suggests that appropriately designed regulations can spur innovation because (1) pollution reflects resource waste; (2) regulations focus firms’ attention on waste; and (3) with regulation‐induced focus, firms are incentivized to innovate to reduce waste. This article explores the regulation–innovation linkage in the context of voluntary regulations. The authors focus on ISO 14001, the most widely adopted voluntary environmental program in the world. Examining a panel of 79 countries for the period 1996–2009, they find that country‐level ISO 14001 participation is a significant predictor of a country's environmental patent applications, a standard proxy for innovation activity. The policy implication is that public managers should consider voluntary regulation's second‐order effects on innovation, beyond their first‐order effects on pollution and regulatory compliance.     

Sudpolitik: the political economy of Taiwan's trade with Southeast Asia

Abstract

In December 1993 the Taiwan government adopted a policy called nanjin zhengce or sudpolitik, a policy aimed at diverting part of Taiwan's trade and investment flows from China to Southeast Asia. This paper addresses the following questions: what is sudpolitik? why adopt such a policy? what are the economic, political, and strategic considerations in the pursuit of this policy? which countries are its specific targets? how do the countries directly affected by this policy respond to it? The paper also discusses the issue of Taiwan's aid in connection with sudpolitik. While the effectiveness of the policy is far from clear at present, the paper concludes with four observations: Taiwan's trade and aid are beginning to intertwine; Taiwan's diplomacy is largely economically or commercially led; Taiwan has achieved some positive results in improving its relations with Southeast Asian countries; and, Taiwan has reached a new stage in its economic development whereby it needs to invest overseas in order to sustain its economic growth. Overall, sudpolitik represents a novel step in Taiwan's diplomatic practice.     

An Alternative Approach to Estimating Who is Most Likely to Respond to Changes in Registration Laws

Scholars often seek to understand which individuals are most responsive to the change in some treatment. Such work inevitably faces issues of identification. When the dependent variable is binary, the assumption that the largest effect occurs where p = 0.5 is also encountered. I apply Manski’s [(1995). Identification problems in the social sciences. Cambridge: Harvard University Press] non-parametric Bounds approach, which relaxes the functional form and distributional assumptions found in traditional models, in an attempt to resolve the long standing debate on which types of individuals are most affected by changes in registration laws. Under the standard assumption that treats the selection of registration laws as exogenous, the results revise the current understanding. By exploring the power of various behavioral assumptions, new insights into the study of policy changes emerge, calling into question some of the assumptions that are standard in the literature.

Meeting the Challenges of Policy‐Relevant Science: Bridging Theory and Practice

Ongoing public debate about the role of science in policy making signifies the importance of advancing theory and practice in the field. Indeed, assumptions about the science–policy nexus hold direct implications for how this interface is managed. A useful lens on contemporary themes is offered by the experience of a federal environmental science program that launched an ambitious effort to enhance capacity for policy relevance while protecting a commitment to sound, impartial scientific inquiry. This was achieved by developing an explicit conceptual model and implementing corresponding strategies that addressed critical gaps in capacity for policy‐relevant research, analysis, and communication while supporting existing capacities. This article describes and evaluates the capacity‐building effort from the dual perspectives of deepening an understanding of successful practice in the field and advancing a conceptual understanding of the science–policy nexus. It illustrates the challenges facing practitioners and the need for greater interaction between theory and practice.     

Rent-seeking and optimal regulation in replenishable resource industries

In this paper, wasteful rent-seeking behaviour has been shown to have important implications for the determination of the welfare maximizing regulatory policies of replenishable natural resource industries. In general, the incorporation of wasteful rent-seeking activity into the analysis leads to policies which suggest a greater level of industry output than has been advocated by tradition policies that do not take rent-seeking into account. Our analysis therefore supports a more laissez faire policy than has been recommended in the literature.Specifically, we find that when rents are completely dissipated by wasteful rent-seeking activity (t = 1), the role of the regulator is simply to guarantee biological efficiency, should this be threatened by the economic equilibrium achieved by the free-access of firms. One of two possibilities can occur. In the first, the economic equilibrium determined by the free-access of firms is biologically efficient, i.e., the equilibrium steady state of the replenishable natural resource exceeds or is equal to the maximum sustainable yield stock size (x _MSY). If this occurs, the regulator needs to take no action whatsoever. In the second case, the economic equilibrium generated by the free-access of firms does not yield biological efficiency. The equilibrium is characterized by a steady state stock of the natural resource that is smaller that the maximum sustainable yield stock size, namely (x _MSY <>x _MSY). In this case, therefore, the regulator does need to intervene, but his best policy takes the simple form of setting the total quota equal to the maximum sustainable yield (MSY) of the resource. Thus, while the results are to some extent consistent to those derived by Buchanan for the regulation of externalities, the fact that we are dealing here with replenishable resources adds a further dimension to the issue and changes some of the policy implications.     

Performance Management,High-Powered Incentives,and Environmental Policies in China

ABSTRACT

China has a highly centralized bureaucracy that is no longer strictly monitored by political loyalty but by governance performance (e.g., economic growth), rewarded with promotion and monetary incentives. In the early 2000s, environmental criteria were added to this system. As part of this effort, a high-powered performance management system was introduced in 2006. It held high-level provincial officials, who are part of the nomenklatura, personally responsible for meeting specific emissions targets. Using data from China Statistics Yearbooks and several official news archives, the empirical results indicate that the implementation of the new performance management system reduced emissions only for air pollutants, which are the most publicly visible among the targeted pollutants. Water pollution, which is less visible but also a mandated target, was unaffected. Emissions of soot, an untargeted pollutant, were also unaffected. The findings imply that, even in centrally managed systems like China, compliance with a high-stakes reward for measured performance is not universal.     

URBAN PLANNING,POLICY AND MANAGEMENT*

Abstract: This paper deals with some important sources of confusion in discussions of urban issues. The first part distinguishes urban planning as a “future oriented” activity, from urban management which is primarily concerned with resource allocation. (The nature of urban development — interdependence and long life — makes a long-term perspective important.) When urban management aims to implement a plan the two are complementary. Urban policy covers a broader range of issues. The second part distinguishes four levels of debate about urban issues: ideological, political, operational and technical. Frequently debates in urban studies are not coherent because the participants are arguing at different levels and therefore make different assumptions about what is given and what can be varied. It is argued that the various levels form a hierarchy so that debates at any level need to assume particular positions with respect to higher level questions. Ideological issues include individual versus collective perspective, capitalist versus socialist, the appropriate role of markets and governments and the relative weight given to equity and efficiency criteria. The examples of political issues discussed are rationality versus group pressure as explanations of government behaviour, and whether planning is mainly a political or a professional activity. Operational issues include the appropriate level of government for carrying out urban functions and the role of statutory planning and other policy measures. Technical issues focus on predicting the effects of policy measures and external changes on cities. The different levels are illustrated by a discussion of policy towards inner city areas.     

Track 1/Track 2 symbiosis in Asia-Pacific regionalism

Abstract

This paper addresses the question of how Track 2 international policy networks contribute to economic security. If we accept a neoclassical economic interpretation that economic security is best achieved by trade and capital liberalization, then Track 2, or non-formal research and policy networks, are able to help enhance economic security by providing Track 1 or the formal, inter-governmental organizations with novel ideas and approaches on how best to advance regional economic liberalization. As well as providing institutional memories for regional cooperation, Track 2 networks also serve as test-beds for new ideas in emerging issue areas. This was clear in the aftermath of the Asian financial crisis when a number of Track 2 networks grappled with the inter-linkages between economics and security as well as provided expertise on how states can best cope with globalised financial markets and the free flow of capital. By discussing each of the Track 2 networks and how they respectively interact with Track 1 processes, the paper provides a detailed account of the regional governance architecture in the Asia-Pacific region more broadly, and its contribution to economic security.     

Economic models as devices of policy change: Policy paradigms,paradigm shift,and performativity

Can the emergence of a new policy model be a catalyst for a paradigm shift in the overall interpretative framework of how economic policy is conducted within a society? This paper claims that models are understudied as devices used by actors to induce policy change. This paper explores the role of models in Danish economic policy, where, from the 1970s onwards, executive public servants in this area have exclusively been specialists in model design. To understand changes in economic policy, this paper starts with a discussion of whether the notion of paradigm shift is adequate. It then examines the extent to which the performativity approach can help identify macroscopic changes in policy from seemingly microscopic changes in policy models. The concept of performativity is explored as a means of thinking about the constitution of agency directed at policy change. The paper brings this concept into play by arguing that the “performative” embedding of models in institutions is an important aspect of how paradigm shifts unfold that the current literature has neglected.     

Ideas and Coordination in Policymaking: The Financial Crisis of 2007–2009

Policy change occurs because coalitions of actors are able to take advantage of political conditions to translate their strong beliefs about policy into ideas, which are turned into policy. A coalition's ability to define a problem helps to keep policies in place, but it can also cause coalitions to develop blind spots. For example, policy subsystem actors will often neglect the need for coordination between governmental actors. We examine the financial crisis of 2007–2009 to show how entrenched policy ideas can cause subsystem actors to overlook the need for policy coordination. We first analyze the prevalent idea that policymakers should aim to keep inflation low and stable while employing light touch regulation to financial markets. We then demonstrate how this philosophy led to a lack of coordination between monetary and regulatory policy in the subprime mortgage market. We conclude with thoughts about the need for coordination in future economic policy.     

Addressing the Issues: The Choice of Environmental Conflict‐Resolution Venues in the United States

Environmental conflicts are the catalyst for policy and institutional changes, and they are expected to increase due to rising populations, economic growth, and climate change impacts. Yet, environmental conflicts and the venues used to address them have not been thoroughly examined. A common‐pool resource dilemmas typology is used to categorize environmental conflict issues and to develop hypotheses relating conflict issues to resolution venues. The hypotheses are tested on western water‐resource conflicts. The capacity of venues to address the underlying conflict issues as well as how some venues tend to work in tandem are important for explaining the matching of conflict type to venue.     

污染区居民如何扭转环境不正义——美国北卡罗来纳州华伦郡多氯联苯掩埋场个案分析

环境不正义的决策过程与结果,使社会弱势聚居之小区更容易受到环境污染的伤害,而环境污染为小区所带来的各种影响,又使得小区居民更加弱势。环境正义运动的主要诉求之一,就是要使民众有意识地参与环境政策过程。本文以此为基础,观察美国北卡罗来纳州华伦郡多氯联苯掩埋场抗议事件的发生,与其後二十几年的发展。本文从四个方面观察华伦郡这段抗议与矫正环境不正义的历史,分别是诉求观点、专业能力、政治结盟以及政策回应。研究结果得出四点结论：首先,能够引起广泛共鸣的环境正义诉求,是帮助小区内外联盟的重要基石;其次,小区居民专业知识与态度的培养,有助于提升居民与政府部门沟通的层次与地位;再次,弱势居民政治力的提升与政治结盟,是提高居民受害事实与基本权益能见度的重要管道;最後,政府的正面响应提升了民泉与政府共同合作解决小区污染问题的可能性。     

The Third and Fatal Shock: How Pandemic Killed the Millennial Paradigm

This millennium began with widespread acceptance of a governing paradigm emphasizing small government, free markets, and open borders. Three crises—the 9/11 attacks, the 2008 financial crisis, and the 2020 COVID-19 pandemic—forced American policy makers to diverge from this paradigm. At the time, these divergences were described as temporary departures from normalcy. In retrospect, it would be more accurate to regard the millennial paradigm itself as the abnormality: a model of governance designed for rare moments of calm. In the last two decades, a different paradigm has emerged. American government has become the ultimate bearer of societal risks. Repeatedly, it has adopted extraordinary measures to protect public safety and the economy. However, the American state lacks the capacity to anticipate and manage these massive risks competently. New capabilities are required, along with a new mentality about governing. Domestic politics will complicate the task of building these capabilities.     

Trade, Harmonization, and Domestic Autonomy in Environmental Policy

This article evaluates the environmental criticisms of free trade that have been such an important part of the critique of globalization. The first section briefly surveys the range of criticisms environmentalists have brought against the new economic order. The second section examines the available literature on the race to the bottom, one of the key concerns. The third section analyzes the World Trade Organization trade rules and how they have been interpreted by dispute resolution panels involving environmental issues. The fourth section turns to the specific rules of the North American Free Trade Agreement and examines several case studies of environmental issues in that region. The final section provides a summary evaluation of the environmental criticisms. The article argues that the environmental criticisms are exaggerated. Trade agreements leave far more room for domestic environmental measures than is frequently argued. The political globalization of the environmental movement has helped counter the threat to environmental policy created by the economic and trade aspects of globalization. Environmentalists do need to be careful about how they advance this critique of globalization, however, because their arguments risk becoming a self-fulfilling prophecy.