Power relations? What power relations? The de-politicising conceptualisation of development of the UNDP

The UN′s Sustainable Development Goals agenda points far into 2030, which shows that its post-war development endeavour is not functioning effectively. This article implements a discourse analysis of the UN Development Programme′s (UNDP) Human Development Reports (HDR) and exposes their internal contradictions. This analysis enables a critical reflection on the UNDP′s political position: its reports conceal the political causes of underdevelopment. By concealing the antagonistic/conflictual dimension of social issues – poverty, inequality, and exclusion – the UNDP naturalises the actual neoliberal order. The HDR turns political problems into technical issues; according to this approach, no power relations have to be changed in order to overcome underdevelopment.     

Have Lower Real Wages Helped Industrial Restructuring in Romania?

A reduction in real wages arising from price liberalisation has been a standard feature of economies undergoing industrial restructuring. In this article, the impact of real wages on industrial performance is examined using a panel dataset of Romanian industries from 1990-96. Using both static and dynamic panel estimation, real wages are found not to be negatively associated with either output or employment. These results are consistent with a view that an institutionalist approach, aimed at improving productivity, may be more likely to achieve the long-term objective of successful industrial restructuring than standard adjustment programmes based on neo-classical theory.     

Subcontracting,growth and capital accumulation in small‐scale firms in the textile industry in Turkey

This study examines capital accumulation and growth among subcontracting small‐scale textile firms. We find that, in spite of the higher average profitability of non‐subcontracting production relative to subcontracting, the average annual rate of capacity expansion between the two groups is not statistically different from the former. This implies that the higher average productive capacity of the non‐subcontractors relative to that of the subcontracting firms are due to differences in their initial capacity. The study further suggests that there may be no easy transition from subcontracting to independent production. For many subcontractor firms in the sample, the cost of inputs required for independent production exceeds the current value of their gross earnings by a multiple.     

Subsidiary,supporter or challenger? Local‐national relations in Japan

The impact of governance attributes on frequently overlooked attitudes of local councillors towards local governance reform agendas is assessed, based on the MAELG survey of approximately 11,000 councillors in 15 European countries and Israel. Eighteen policy statements are grouped into six reform agendas, followed by analyses of their explanatory factors. Europe's north–south divide is found meaningful for the understanding of variations in attitudes towards reform, being most profound in notions of democracy, participation and devolution. Southern Europe, including post-communist Europe, shows clear support for new democratic mechanisms, whereas northern European councillors reveal more reserved, perhaps weary, attitudes towards reforms. Councillors may provide the ‘correct’ statements in the south, because less has been reformed there so far, knowing that change would anyway be difficult. Substantial variations between different northern sub-groups could be linked to the memory of non-democratic regimes in Germany and Austria and to the influence of existing systems, deeply embedded in local political cultures. Nevertheless, the impact of present institutional practices is far from universal. Councillors in liberal regimes are not pro-privatisation, and cautious attitudes towards reform are shared by northern decentralised and centralised countries.     

Religious Institutions and Authoritarian States: church–state relations in the Middle East

The churches in the Middle East are generally perceived to be supportive of the authoritarian states in the region. The motivations for this strategy and its successes and limitations in the context of the authoritarian environment and the religious heritage of the region are explored. The article argues that the approaches pursued are determined by the structure of the community in relation to the majority and other Christian communities as well as by state policies towards the community. The overriding aim of church leaders of protecting their communities has led to a modern variation of the historical millet system, which provides them public status in exchange for their acquiescence in regime policies. This security guarantee, combined with wariness towards other potential political actors and the desire to protect their privileged position from communal challengers, has resulted in the hierarchies' preference for the authoritarian status quo rather than encouraging democracy promotion.     

Should the African lion learn from the Asian tigers? A comparative-historical study of FDI-oriented industrial policy in Ethiopia,South Korea and Taiwan

Ethiopia’s economy has been growing at breakneck speed for well over a decade now, earning the nickname as Africa’s lion. In recent years, the development literature on Ethiopia has paid particular attention to the role of industrial policy, especially the ways in which the Ethiopian experience compares to that of the Asian tigers. But through this comparative-historical perspective, little attention has been devoted to an important aspect of industrial policy in Ethiopia – foreign direct investment (FDI) in the manufacturing sector. This paper compares FDI-oriented industrial policy in Ethiopia in the current era (particularly focusing on light manufacturing) to that of South Korea and Taiwan between 1960 and 1990, arguably the two most generalisable cases among the Asian tigers. The paper argues that FDI-oriented industrial policy in Ethiopia seems to be bringing about short-term economic benefits, and is showing promise for further industrialisation. At the same time, it could benefit from taking more lessons from the long-term economic development perspective that characterised South Korea’s and Taiwan’s approach to FDI. Such a long-term perspective most importantly includes pro-active strategies to transfer technology from foreign firms to the domestic economy and the creation of backward linkages from foreign to domestic firms.     

“Soviet mentality?” The role of shared political culture in relations between the Armenian state and Russia's Armenian diaspora

Russia's Armenians have begun to form diaspora institutions and engage in philanthropy and community organization, much as the pre-Soviet “established” diaspora in the West has done for years. However, the Russian Armenian diaspora is seen by Armenian elites as being far less threatening due to a shared “mentality.” While rejecting the mentality argument, I suggest that the relationship hinges on their shared political culture and the use of symbols inherited from the Soviet Union in the crafting of new diaspora and diaspora-management institutions. Specifically, “Friendship of the Peoples” symbolism appears to be especially salient on both sides. However, the difference between old and new diasporas may be more apparent than real. The Russian Armenian diaspora now engages in many of the same activities as the Western diaspora, including the one most troublesome to Armenia's elites: involvement in politics.     

Economic liberalisation for high-tech industry development? Lessons from China's response in developing the ICT manufacturing sector compared with the strategies of Korea and Taiwan

Abstract

This paper argues that China's response to economic liberalisation, which artificially focuses on promoting particular sizes of firms, cannot improve technological capabilities in the ICT manufacturing industry. Not only have historical and economic conditions created difficulties in adopting Korean and Taiwanese style policies, but also competitive ICT firms in the global economy are increasingly moving from manufacturing to innovation activities against a backdrop of increasing economic liberalisation. Given the WTO and ITA agreements, the main path which Korea and Taiwan employed is now unavailable. The government therefore should leave the size of firms to market forces.     

Disinvesting in America? the legacy of consumption policy in the 1980s

This article traces patterns of consumption, low productivity, debt accumulation and slow economic growth. Rather than calling for an increased emphasis on market and corporate incentives, the author calls for increased public investment. He favors particularly increases in scientific research and development and technology, in public works to rebuild the infrastructure, and calls for a public administration associated with increased investment in government.

The New Deal and the Great Society established the foundations of the public policy and administration of consumption—income transfer, entitlement, loan, loan guarantee, credit, subsidy, tax expenditure, and related programs designed to maintain or improve the income levels and social and economic well being of many elements of the United States population. Such programs now constitute approximately 50 percent of the federal budget. In the late 1980s, the United States entered into a new international economic, technological, and demographic order in which the public administration of investment will be increasingly important. The “public administration of investment” is defined as the administration of policies designed to produce future benefits for the nation through investment in people, knowledge and technology, the environment and public infrastructure, and public systems and public service.

Several trends in the 1980s contributed to the increasing importance of the public administration of investment. The first trend was the continuation of the low rate of productivity growth in the United States, a condition that has persisted since the early 1970s. ⁽¹⁾

Despite low productivity growth, the United States as a nation continues to spend as if productivity were increasing at pre-1973 rates and to borrow from other nations to make up the difference. The result has been large public and private debt. Increased productivity growth will require additional public as well as private investment if the United States is to maintain its standard of living and capacity to pursue social justice and other values into the next century.

The second trend has been the globalization of technology and the economy. The United States has been losing the comparative advantage it once enjoyed in many scientific and technological fields, as technological know-how has spread throughout the world. The United States fell further behind in the 1980s in the development of new production processes and in the commercialization of new processes and products in consumer electronics, semiconductors, and other fields.⁽²⁾ There is compelling evidence that both the private and public sectors underinvested in developing the scientific and technical workforce that will be essential in the global technological competition of the future.⁽³⁾ More generally, by many measures the education system of the United States has not been producing a well-educated workforce or well-educated citizens.⁽⁴⁾

The third trend of the ’80s was the maturation of the baby boom generation. This generation is now in the high consumption stage of its life cycle—homes, cars, and other consumer goods. The aging of the baby boom generation in the early decades of the twenty-first century will pose a complex challenge to public policy and administration. Early in the twenty-first century, the baby boomers will enter a stage of life usually marked by reduced consumption and higher saving.⁽⁵⁾ At the same time, increased longevity suggests growing demands on both public and private systems for income maintenance, health care, and social services. New technologies will compound health care costs. Unless saving and investment are increased now to partially support the baby boom generation in retirement, the “baby bust” generation that followed the baby boom will face a heavy burden of support.⁽⁶⁾ Currently, the Social Security Trust Fund does not have a single penny in it because the Treasury is borrowing the funds to reduce the federal deficit. Substantially increased productivity or substantially higher taxes will be necessary to replenish the fund in the early twenty-first century.

To compound the problem, by the year 2050, for the first time in American history (according to the middle series of Census projections), there will be more old than young Americans. The age cohort 60 and older will make up 28 percent of the population, while the age cohort 1-19 years will make up about 23 percent of the population.⁽⁷⁾ This is in stark contrast to the 16 percent of the population 60 and over, and the 32 percent of the population 1-19 years, in 1980. Greatly increased saving, increased productivity, substantially lower standards of living for working people, extended working years, or an influx of immigrant workers will be needed to produce the benefits that are promised in the entitlement programs of the federal government and expected by the American people.

Finally, many observers perceived an increase in private greed during the last decade in the United States and a growing indifference to common concerns—eroding public infrastructure, the highest infant mortality rate among industrialized nations, the highest rate of child poverty, and similar social conditions. They see a preoccupation with current pleasure at the expense of future benefits, and a decline in social discipline and civic virtue. To some observers, the United States has been in a temporary cycle of preoccupation with private needs.⁽⁸⁾ To others, civic virtue in the United States has been in decline.⁽⁹⁾

In any event, diminishing growth may intensify each individual's desire to protect his or her interests. In this context, redistribution in the pursuit of social equity will become increasingly difficult.     

How does ethnic diversity shape the design of intergovernmental fiscal relations? Evidence from China

This study examines how ethnic diversity shapes the design of intergovernmental fiscal relations in regimes such as China, where local accountability and resident mobility are largely absent. We argue that in these regimes, ethnic diversity largely captures potential social conflicts and instability, consequently requiring a higher level of fiscal centralization and regional equalization from upper-level governments to preserve social stability. Using provincial and sub-provincial level panel data from China for 1995–2019, we find strong supporting evidence that an increase in a province's ethnic diversity significantly increases fiscal centralization and the provincial government's fiscal equalization efforts. We also show that these effects tend to be stronger in provinces whose leaders have closer ties with the central authority and where local capture is less serious. Our study contributes to a better understanding of ethnic diversity's consequences on the policy choices governments make.     

American Power,East Asian Regionalism and Emerging Powers: in or against empire?

Recent years have seen a revival of discussions on American decline. This paper intervenes in this debate by suggesting that there is a tendency towards partial conceptualisations of US power. It suggests a new historical materialist perspective that makes it possible to theorise American Empire as a relational social totality embedded within global capitalism. The paper then analyses the social limits of China’s rise and the integration of East Asian regionalisation into American Empire, suggesting the extent to which world power has shifted east has tended to be overestimated. It also analyses the emergence of Brazil, India, and the brics meetings, suggesting these developments have a limited, but overstated, capacity to challenge American Empire.     

The myth of ‘independent judiciary’: the evolution of judiciary-executive relations in Turkish politics

The position of judiciary in politics is an important area of discussion for both legal and political experts. The issue has particularly been on Turkish political agenda for the past decade with the emergence of a strong single-party government under the Justice and Development Party (Adalet ve Kalk?nma Partisi-JDP) rule. This article aims to analyse the evolution of relations between the judiciary and executive in Turkey from a historical perspective by examining the Republican era until the JDP rule. The struggle over the control of institutions becomes more visible during periods of strong government and the analysis shows that the idea of an independent, apolitical judiciary is a myth that was created by the institutional and legal design of the Republic in the Turkish case and is not peculiar to the JDP government.     

Financial transitions in the PRC: banking on the state?

The reappearance of substantial debt in China after 2008 has refocused attention on the sustainability of the existing financial ‘model’. It’s not just that ‘traditional’ forms of bank-centred debt have re-emerged, but that the informal ‘shadow banking’ sector also seems increasingly fragile, generating debts that do not seem easy to repay. Explanations for the current situation focus on the way in which China responded to the global financial crisis, and on the incentives that exist to go outside the formal and more regulated banking system into often riskier activities. But there are more fundamental structural issues. The current financial system contains within it some of the dna of its predecessor, while the spatial distribution of power and authority is inextricably linked to the way the financial system functions. While it might be possible to tinker with some elements of current financial problems, the relationship between local government financing, land, the banking system and key economic sectors makes it difficult to resolve more structural issues without taking a holistic approach; one that would have fundamental consequences for the nature of the Chinese state, and the distribution of power within it.