A Responsibility to Profit? Social Impact Bonds as a Form of “Humanitarian Finance”

ABSTRACT

Recent years have seen the emergence of social impact bonds (SIBs), geared toward funding social interventions while earning financial returns. The article proposes to conceive of SIBs as a practice of contemporary humanitarianism. In an effort to trace the politics of such humanitarian finance, the article analyzes a SIB that sought to improve outcomes for homeless persons in London. It argues that, instead of relying on sentimental stories, the project was animated by a results-oriented, technocratic culture geared at solving social problems (rather than just alleviating suffering). Its mode of reasoning, however, directed attention to highly vulnerable individuals – and away from the structural conditions that perpetuate poverty. But at the same time, the scheme reworked exclusionary constellations “from within.” Thus, such humanitarian finance simultaneously performs a relation of inequality and a relation of assistance. The article makes the case for an ongoing engagement with both dynamics.     

Cooperative Federalism?: The Case of the Ministerial Council on Education,Employment, Training and Youth Affairs

New Federalism reforms introduced in Australia in the early 1990s were expected to improve efficiency and reduce duplication through new cooperative intergovernmental arrangements. The reforms were also an attempt to reduce the continuing trend of Commonwealth intrusion in state powers. As well as establishing the Council of Australian Governments (COAG), the reforms created the Ministerial Council on Education, Employment, Training and Youth Affairs (MCEETYA) to promote a more coordinated and cooperative approach to the delivery of education. MCEETYA provides the quintessential example of the difficulties of establishing a national approach when the function, education, is squarely within the power of the states. This article investigates the operation of MCEETYA from its inception to 2006.     

The 2012 Elections in Mexico: The Birth of a Consolidated Federal Democracy?

In 2012, the simultaneous elections at the federal, state and municipal levels in Mexico reopened the debate about the path of democratic consolidation in the country. With the return of the Revolutionary Institutional Party to the presidency in 2013, there are renewed signs that Mexican democratic consolidation is underway. Particularly important in this process is that the 2012 gubernatorial and mayoral elections have been more competitive, resulting in higher political alternation in power between political parties. Under a changing subnational political context, there are indications that subnational politicians are no longer under the shadow of a dominant party system. As a more consolidated federal democracy, the political landscape in Mexico has become more complex.     

Who is responsible for what? Clarity of responsibilities in multilevel states: The case of Spain

There is a theoretical disagreement between the classical normative positive view on decentralisation, which states that the fragmentation of power shifts policy more closely into line with citizens' preferences, and a more recent critical view that states that decentralisation blurs attribution of responsibility. This disagreement can only be resolved by refining the understanding of specific institutional designs. The theoretical claim in this article is that the relation between multilevel governance and clarity of responsibilities is contingent upon the type of decentralisation in place. To test this proposition, individual data from an asymmetrically decentralised system – the Spanish State of Autonomies – are used. Results show that the relationship between decentralisation and clarity of responsibility has a u‐shape. Responsibility attribution is clearer in regions with high and low levels of decentralisation, where one level of government clearly predominates over the other, than in regions with a more intertwined distribution of powers.     

Who Takes the Blame? The Strategic Effects of Collateral Damage

Can civilians caught in civil wars reward and punish armed actors for their behavior? If so, do armed actors reap strategic benefits from treating civilians well and pay for treating them poorly? Using precise geo‐coded data on violence in Iraq from 2004 through 2009, we show that both sides are punished for the collateral damage they inflict. Coalition killings of civilians predict higher levels of insurgent violence and insurgent killings predict less violence in subsequent periods. This symmetric reaction is tempered by preexisting political preferences; the anti‐insurgent reaction is not present in Sunni areas, where the insurgency was most popular, and the anti‐Coalition reaction is not present in mixed areas. Our findings have strong policy implications, provide support for the argument that information civilians share with government forces and their allies is a key constraint on insurgent violence, and suggest theories of intrastate violence must account for civilian agency.     

Who is responsible? The effect of clarity of responsibility on voter turnout

Does voters’ ability to discern who is responsible for policy outcomes affect voter turnout? Although particular institutional arrangements which influence this ability – known as clarity of responsibility – appear to affect how voters form retrospective judgements, existing literature is less informed about its role on voter turnout. This article argues that voters tend to turn out less if they cannot discern who is responsible for policy outcomes. This lack of clarity hinders the process of retrospective evaluations, makes the electoral stakes less profound, and dampens the voters’ political efficacy. Using 396 elections in 34 established democracies between 1960 and 2015, it is found that lower clarity of responsibility is associated with lower voter turnout. This study highlights the importance of clarity of responsibility, as it enhances democratic accountability, not only by encouraging retrospective voting, but also by increasing political participation.     

Who’s afraid of a world state? A global sovereign and the statist-cosmopolitan debate

Wary of quick statist dismissal of their proposals, cosmopolitans have been careful not to associate themselves with a world state. I argue that this caution is mistaken: cosmopolitans should see the vision of a world state as strategically valuable in exposing weaknesses in statist accounts, particularly of the Rawlsian variety. This strategic value follows if the only cogent arguments against a world state belong to non-ideal theory which assumes non-compliance, rather than to ideal theory with its core assumption of full compliance. If our only convincing reasons to reject a world state are non-ideal, then any liberal theory revolving around separate states must itself be considered a non-ideal theory. As a non-ideal theory, a statist law of peoples cannot be presented as an end-state, but is rather a transitional stage. Yet once seen as a transitional theory, the statist “realistic utopia” can no longer dodge the cosmopolitan charge that it is neither sufficiently realistic nor sufficiently utopian.     

A New Progressive Coalition? The European Left in a Time of Change

This article examines changing patterns of voting for parties on the left in the UK and Europe. It shows that while combined support for social‐democratic, left and Green parties remains strong, the composition of the left's electorate has radically changed. Increasingly, left parties rely on a coalition of new middle‐class voters and traditional and new working‐class constituencies. This coalition is relatively cohesive on questions of economic redistribution, but divided on social and cultural issues. Recent instability in Labour's electoral coalition reflects broader structural trends facing left parties across Europe.     

The Swedish Election 1998: A Protest Vote and the Birth of a New Political Landscape?

The 1998 Swedish general election was a protest election primarily against the Social Democratic Party. The party was hit by a debate on deceit when the unpopular financial restructuring policy was implemented. Disappointed social democratic voters from the 1994 election flocked to the Left Party. Others did not vote at all. The electoral turnout dropped to 81.4 percent; the lowest level in a parliamentary election since the election of 1958. A turnout of 81.4 percent is not particularly low from an international perspective, but it has received a great deal of attention in the political debate. Certain signs do indicate that there has been a general devaluation of voting as a means of exercising political influence among large groups of voters. Other forms of influence are perceived as being more meaningful. A sense of meaninglessness, of individual and institutional powerlessness, also seems to be spreading to social groups that have traditionally had a fundamental trust in the political system.     

(The) Erasure – Mass Human Rights Violation and Denial of Responsibility: The Case of Independent Slovenia

The case of the erased residents of Slovenia – when approximately 18,000 people who were mostly of Serbian, Croatian and Bosnian ethnicity, were erased from the permanent residence registry of the Republic of Slovenia – represents one of the most severe cases of administrative ethnic/racial discrimination and human rights violations in the post-communist East and Central Europe outside the conflict area. The erasure caused “civil death” of the people who were affected by the measure, depriving them of civil, political, social, and economic rights. In 2007, 4 years after the 2003 Constitutional Court decision, declaring the 1992 erasure an unconstitutional act of the state and requiring the legislator to adopt measures to reinstate the statuses of the erased people, the problem remains unsolved and unaddressed both systemically and individually, and the situation of erasure persists. This article presents the case and analyses of the framework that made the erasure possible in terms of the preparation of the majority of Slovenes to accept and even support the violations and politicians to renounce their political responsibility to those who have lost the right to have rights. This article is based on the insights of the research project Contemporary Citizenship: Politics of Inclusion and Exclusion (2000–2003) led by Vlasta Jalušič. The analysis of the case of erased was published in Jasminka Dedić, Vlasta Jalušič, and Jelka Zorn (eds.), The Erased: Organized Innocence and the Politics of Exclusion, translated from Slovenian by Olga Vuković and Marjana Karer (Ljubljana: Peace Institute, 2003), at . The authors wish to thank the anonymous reviewer for the extensive and most helpful comments.

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The Life and Death of Public Organizations: A Question of Institutional Design?

Why do some public organizations grow old and others die young? Since Herbert Kaufman first posed this question, considerable research has been devoted to answering it. The findings of that research suggest that the design of new public organizations affects, to a significant degree, their survival chances. In this article, we test whether and how “design factors” affected the durability of the so‐called New Deal organizations initiated under FDR's first term. Our findings confirm that design factors do matter, but their effects change over time. We draw out some potential implications for institutional design and sketch a renewed research agenda to determine why some public organizations survive environmental pressure whereas others succumb to it.     

Who benefits from minority business set-asides? The case of New Jersey

Race-based remedies often are justified by evidence of prior discrimination. They work when they benefit groups previously disadvantaged. This article examines one such remedy—minority business set-asides—and its application in the award of public procurement and construction contracts by the state of New Jersey. Analyzed are contract awards to minority and non-minority/non-women-owned business enterprises in 1990, as well as in periods before, during, and after the imposition of a state minority set-aside program. Using a conventional decomposition approach, the article reveals significant discriminatory gaps in the success of minority- versus non-minority-owned firms in obtaining contracts from the state of New Jersey. The analysis suggests that minority contracting success rates fell from the pre-set-aside era to the set-aside era and that discriminatory outcomes persisted. The particular remedy chosen—while justified based on evidence of prior discrimination—appears not to have reduced the original discrimination nor did it unambiguously benefit minority businesses.     

Who Said What? The Effects of Source Cues in Issue Frames

Drawing on previous research concerning the role that source cues play in political information processing, we examine whether an ideological identity match between the source of a framed message and the respondent moderates framing effects. We test our hypotheses in two experiments concerning attitudes toward a proposed rally by the Ku Klux Klan. In Experiment 1 (N = 274), we test our hypothesis in a simple issue framing experiment. We find that framing effects occur for strong identifiers only when there is a match between the ideology of the speaker and respondent. In Experiment 2 (N = 259), we examine whether matched frames resonate equally well when individuals are simultaneously exposed to competing frames. The results from this experiment provide mixed support for our hypotheses. The results from our studies suggest that identity matching is an important factor to consider in future framing research.     

The progress of the betting in a baseball game: A comment

In their article in the current issue of this journal, Sauer et al. compare the evolution of prices of in-game betting markets of baseball games to an empirical model of scoring based on the probability of various game events occurring. The authors correctly suggest this in-game betting market provides an opportunity to examine the efficiency of gambling markets, as the value of the security being examined can be known with a greater degree of precision than the fundamental value of securities being traded in general financial markets. While we appreciate the progress that has occurred, we believe that with some fairly simple changes, the authors may be able to improve the precision of their model to the point where a more powerful commentary on potential market efficiency could be developed. We offer suggestions on more precisely matching of the two sources of data, timing of the events, and dealing with games in which there is a clear pre-game favorite. We close with suggestions for extensions.     

The Two Republicae of the Roman Stoics: Can a Cosmopolite be a Patriot?

This paper is a response to recent attempts by liberal theorists to reconcile universalist sentiments with forms of particularism. It seeks to explore a number of ethical issues related to nationalism, patriotism and loyalty. As the first systematic expositors of cosmopolitanism, the Stoics are called on to address the question: can patriotism be defended ethically by moral universalists? The Roman Stoic attitude to war and imperial conquest is examined because war and its attendant conflicts of interest expose the tension between particular and universal loyalties and pose the greatest challenge to cosmopolitan principles. It is concluded that the task which 'liberal nationalists' have set themselves is a daunting one because, unlike the Stoics, they cannot rely legitimately upon imperialism and the belief in a universal God in order to smooth over differences and conflicting loyalties. In effect, then, this illumination of the origins of Enlightenment universalism problematises further, rather than resolves, issues of conflicting loyalties.