The Baltic Republics and the Crisis of 2008–2011

This essay explores how the Baltic republics responded to the crisis of 2008–2011. We argue that while there are significant differences in how the Baltic economies responded to the crisis, these responses not only remain within the neo-liberal policy paradigm characteristic of the region from the early 1990s, but that the crisis radicalised Baltic economies and particularly their fiscal stance. We show that there are a number of unique features in all three Baltic republics' political economies that made such a radicalisation possible. However, these unique features make it almost impossible for the Baltic experience to be replicable anywhere else in Europe.     

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.     

Democratization without Development: Benin 1989–2009

In contrast to a widely held view that sees Benin’s democratic transition in 1989 primarily as the fall-out of global tendencies, this paper focuses specifically on the internal causes of this historical event, which it locates in the context of the history of Dahomey/Benin since 1960 and the country’s political economy. It argues that, while the Renouveau Démocratique doubtlessly represented a significant step towards democracy, it did little to change the country’s deep-rooted political-economic structures. Since Dahomey gained independence in 1960, it has been a structurally deficient rent-based economy. None of the regime changes of the past 50 years—independence in 1960, the adoption of Marxist-Leninism in 1974 or the Renouveau Démocratique of 1989/90—have succeeded in changing anything in relation to this fundamental fact. Thus, the crisis of 1989 was primarily a crisis of a particular pattern of political-economic regulation. None of the regime changes of the last 50 years, however, succeeded in resolving the country’s basic development problem, i.e. how to transform a structurally deficient rent-based economy into a productive one. Likewise, throughout the entire period from 1960 to 2009, basic elements of the political culture of the country remained unchanged. Neopatrimonialism, personalization, authoritarianism, regionalism and generationalism became, at best, more subtly differentiated as a result of the democratic renewal. To this extent, the Beninese democratic renewal of 1989/90 highlights the problematic connection between democracy and economic development.     

Historical memory as a source of conflicts in Eastern Europe

Memory of collective wrongs and atrocities suffered in the past from another nation or ethnic group often burdens a present conflict with strong resentment and makes it appear as a historical repetition or redress. There are many examples in recent history of Eastern Europe, the Balkans included, when vivid and deliberately inflamed historical reminiscences make it virtually impossible to negotiate a compromise solution of a crisis. Only when national memory has been “cooled” and sacrosanct historical places and symbols has lost some of their mobilizing force, may human relations between the enemy communities be restored.     

Flexible framing: Analysing innovative austerity talk from a cultural perspective

This article examines how local policy elites conceptualize and communicate potential innovations to overcome the fiscal crisis. Four austerity frames based on cultural theory are developed: an individualist, hierarchist, egalitarian and fatalist frame. Two expectations are tested by tracing frame usage in austerity speeches by the leadership in Birmingham, Cologne and Rotterdam. First, the modest contribution of the individualist frame in NPM‐sceptic Cologne is confirmed, but no evidence is found of individualist dominance in NPM‐minded Birmingham. Second, it is shown that leaders in Birmingham and Rotterdam combine elements of multiple frames so as to create a new promising narrative which opens up routes towards innovation. The importance of ‘frame flexibility’ is stressed to deal with the complexities of coping with the fiscal crisis in ways that are logical (given available views) and innovative (exploring alternative views), and highlight the importance of further developing understandings of such (municipal) coping.     

Fiscal Federalism in Australia

Australia displays high vertical fiscal imbalance (VFI) for historical and constitutional reasons. It also attempts to achieve the highest degree of horizontal fiscal equalization (HFE) to be found in any democratic federation. The Commonwealth Grants Commission (CGC), a non-partisan body at arm's length from politicians, oversees the regime. A recent report claims that equity, efficiency and transparency would all improve if the regime were abolished. Such a change is politically unachievable, but it raises interesting issues in public finance and public administration, which carry over to other federations and union states.
An economically efficient system would: minimize perverse incentives, especially incentives to seek rent; encourage states to grow; discourage suboptimal location decisions; minimize transaction costs. An equitable system would maximize equity between relevantly similar individuals. Aspects of the Australian system that should be copied include the non-partisan agency and the target of HFE between component parts of the country. Aspects that should be discussed and perhaps copied include the very extensive equalization, including the feature of equalizing away the effects of grants for special purposes. Aspects that should probably not be copied include the cumbersome formulae and some of the perverse methods of calculating for 'needs'. All abbreviations and acronyms are spelt out in the Appendix on page 37.     

The White Gold: The Role of Government and State in Rehabilitating the Sugar Industry in Mozambique

This article examines the rehabilitation of the sugar industry in Mozambique after the General Peace Accord in 1992, engaging primarily and critically with certain aspects of the business-state literature. It explains why the sugar sector was rehabilitated from the perspectives of Mozambican state, government and industry actors. The article argues that support for the industry cannot be identified in singular and one-dimensional terms, but must include a variety of attributes of support that emerged from a post-independence fusion of industry, state and government officials' historical experiences of success and failure in the industry, and pragmatic as well as longer-term ideological stances. This, it is argued, created a ‘mediating bureaucracy’ that could broker between the diverse interests and aspirations of state/government and industry.     

Refining the Concepts of Territorial Revenue Assignment,Substate Fiscal Self-rule and Territorial Fiscal Balance

Fiscal federalism has offered a template for understanding intergovernmental fiscal relations. Yet when politicians are involved in day-to-day decentralization it may happen that some of the normative elements of fiscal federalism do not fit reality. Substate entities may go beyond the own-source paradigm and have a practical interest in alternative forms of fiscal self-rule. To better understand this pragmatism a threefold stage model of territorial revenue assignment is presented drawing on some insights offered by Germany’s fiscal constitution. Within this framework a reassessment of the role of territorial levels as levels during vertical revenue assignment is undertaken, a new typology of fiscal self-rule is introduced, and finally a theory of multiple territorial fiscal balance points is outlined, including the one based on the real domain of substate own policy-making.     

The professional politics of the austerity debate: A comparative field analysis of the European Central Bank and the International Monetary Fund

How do different professional structures shape the economic ideas that international economic organizations use to prescribe policy recommendations or derive legitimacy and authority for them? The comparative professional field analysis proposed herein deploys a novel combination of content, network and regression analysis to uncover the precise role of different qualifications, experiences and hierarchies in shaping the economic expertise invoked by the European Central Bank's and the International Monetary Fund's main policy documents, with a specific focus on debates over fiscal consolidation in the wake of the global financial crisis of 2008. The findings challenge much of the scholarship about how economic ideas diffuse across professional domains and where change on macroeconomic policy in international economic organizations is likely to come from. As such, the article should be of interest to scholarship on international bureaucracies, the politics of professional knowledge and the international political economy of fiscal consolidation.     

The global coffee economy and the production of genocide in Rwanda

Most academic work on the genocide in Rwanda uses either a methodologically social scientific or historical approach to explain the genocide's root causes. These causal stories most often focus on ethnicity and, in doing so, understate how structured economic-material relations made the conditions for genocide possible. Turning to Louis Althusser's concept of structural causality, I form an alternative method for narrating the genocide which treats the genocide as the result of highly complex and over-determined social relations. The paper then re-examines the structural causality of the genocide, focusing on how the coffee economy intersected with the economic, cultural, state, and ideological registers at which the genocide was produced. Representing the genocide in terms of structural causality addresses how over-determined exploitative relationships—between Hutu, Tutsi, coloniser, colonised, rich, poor, farmer, évolué, northerner, southerner, coffee producer, coffee consumer, etc—produced the genocide.     

Governmental financial resilience under austerity in Austria,England and Italy: How do local governments cope with financial shocks?

The recent economic and fiscal crisis provides an opportunity for learning lessons of general and practical relevance about how governments face shocks affecting their financial conditions. This article draws on the resilience concept to investigate the organizational capacities that are deployed and/or built by local governments (LGs) to respond to such shocks, looking at their combinations and interactions with environmental conditions. The article presents the results of a multiple‐case analysis of 12 European LGs across Austria, Italy and England. The analysis allows us to highlight and operationalize different patterns of financial resilience, that is, self‐regulation, constrained or reactive adaptation, contented or powerless fatalism, that are the result of the interaction and development over time of different internal and external dimensions.     

MAO’S ROLE IN THE KOREAN CONFLICT: A REVISION

Abstract

In October 1950, the People’s Republic of China (PRC) was only one year old, and the Beijing regime faced daunting tasks of regime consolidation and economic reconstruction. Thus, the CIA consistently predicted that China would not enter the Korean War, even if the United States crossed the 38th parallel. Acting on the CIA’s prediction, US forces invaded North Korea on October 8, 1950. China proved the CIA’s analysis wrong by sending masses of troops into Korea late in October, pushing the US force back south of the 38th parallel before the end of 1950. This article uncovers historical evidence to revise the existing literature on the topic of the Chinese intervention in Korea. Why did China intervene despite all the odds against Beijing? This study demonstrates the historical role of “agents,” that is, individual with various personal attributes. By using newly available sources from China and Russia as well as a new interpretation, this article breaks new ground on a significant topic in the fields of international relations and the Cold War international history.     

Federal labor relations 2000: Introduction to the symposium

Numerous problems confront federal labor management relations as we approach the year 2000. The legal structure, Title VII of the CSRA of 1978, is under heavy fire from the unions and other quarters. The perennial federal fiscal crisis has regularized retrenchment strategies and damaged the economic standing of unions and their members. The highly restricted scope of bargaining with most of the federal sector and the continuing push for contracting out also grieves the unions. Yet change comes slowly, if at all. This symposium addresses the calls for reform of the legal framework for federal labor relations.     

Limited Access Order in Tunisia: Elements of a Political Economy of Autocratic Regimes

In 2009, North, Wallis, and Weingast (NWW) introduced an integrative theory of institutional economics and economic history which rests on the inter-linkage of economic and political order. The article applies this novel theoretical conception to the historical development of Tunisian political economy. It is argued that the neo-Weberian concept of neopatrimonialism fills a theoretical gap as to the analysis of the structure and the dynamics of an autocratic regime and takes Tunisian economic history as an example. While the economic and political order during the pre-colonial period can be analyzed within NWW's framework, the colonial period needs conceptual modifications. Of particular interest are the mechanisms which transformed the post-colonial order into an autocratic regime and a rent-creating economic order. It is argued that a recent reformulation of neopatrimonialism, developed by political scientists based on institutional uncertainty, expands on economists’ understanding of how an autocratic regime stabilizes its political power and creates rents, doorstep conditions towards a competitive open access order notwithstanding.     

New directions in Russian international studies: pluralization,Westernization, and isolationism

The essay argues that Western scholars can improve their understanding of the post-Soviet Russia by studying the discipline of new Russian international relations (IR). The other objective of the essay is to move away from the excessively West-centered IR scholarship by exploring indigenous Russian perceptions and inviting a dialogue across the globe. The essay identifies key trends in Russian IR reflective of the transitional nature of Russia’s post-Soviet change. It argues that Russian IR continues to be in a stage of ideological and theoretical uncertainty, which is a result of unresolved questions of national identity. For describing Russia’s identity crisis, the authors employ Erving Goffman’s concept of stigma defined as a crisis of a larger social acceptance by Russia’s “significant other” (West). The essay suggests that, until this crisis is resolved, much of Russian IR debates can be understood in terms of a search for a national idea. It also introduces the authors of the issue and summarizes their contribution to our understanding of Russian and Western IR.     

Data hubris? Humanitarian information systems and the mirage of technology

This article looks at the promise of technology to revolutionise humanitarian action, especially in terms of the gathering and use of data. With many heralding a ‘data revolution’, the opportunities and enthusiasm for using social media and SMS data in crisis response are on the rise. The article constructs an analytical framework in order to scrutinise the three main claims made on behalf of technologically advanced humanitarian information systems: that they can access data more accurately, more quickly, and alter power relations in emancipatory ways. It does so in relation to two aspects of digital humanitarianism: visual technology and crisis mapping, and big data. The article is partly informed by a historical perspective, but also by interview and other material that suggests some of the claims made on behalf of technology are exaggerated. In particular, we argue that the enthusiasm for the data is vastly outstripped by the capacity to meaningfully analyse it. We conclude by scoping the implications of the future technological evolution of humanitarianism, in particular by examining how technology contributes to what Duffield terms ‘post-modern humanitarianism’.     

Subnational governments in a stabilization program: lessons learned in Argentina

Autonomous subnational governments pose a serious challenge to national stabilization strategies. As illustrated by the case of Argentina, fiscal reforms that have been successfuly implemented at the national level have proved to be much harder to induce among subnational governments. Provincial reform is still largely pending and provincial governments continue to generate large public deficits, posing a threat to the success of Argentina's overall reform program in the medium and long term.

This paper provides a retrospective on Argentina's reform program with a focus on subnational governments. It identifies elements within the reform program itself, such as windfall increases of guaranteed central transfers, that systematically undermined early efforts to induce provincial reform. It also examines the government's strategy to neutralize their effects through the decentralization of services and the negotiation of two fiscal pacts, as well as its success in introducing major reforms by capitalizing on the financial pressure that resulted from the Mexican crisis. Finally, it draws lessons of experience that may be useful for policy makers faced with the similar challenge of inducing fiscal reform within autonomous subnational goverments.     

‘Obligations of good faith’: on the difficulties of building US-style EU federalism

The sovereign debt crisis has exposed the weaknesses of the regulative and institutional arrangements of the European Monetary Union. A number of American scholars have highlighted that there are lessons on federalism for Europe to learn from the USA. But to what extent can the US model of fiscal federalism be transferred to the European context? Our general assumption is that besides the differences of the historically developed institutions, structures and economic concepts, it is the different logic that has and is driving the two integration processes that would impede such a transfer. Basing the argument on Oates’ theory of two generations of fiscal federalism, we see that the USA – building on a firm constitutional framework – provided for a crucial role of central government in macro-economic stabilization, whereas the European Union (EU) style of fiscal federalism remains contractual. Although transfers are inevitable, the EU shuns the logic of financial solidarity as economic divergencies cannot be harmoniously accommodated by a commitment to a common constitutional framework. As crisis management largely relies on an intergovernmental decision-making process, it enhances the power of creditor states vis-à-vis the debtor states and follows the logic of ‘surveillance and punishment’. The European emphasis is on controlling the moral hazard and the most likely outcome of the crisis will be differentiated integration.     

Glasgow: Anatomy of a fiscal crisis

Ostensibly, the reorganisation of Scottish local government in 1996 was intended to create a more local, more efficient and more accountable system of local government. However, simultaneously, through grant abatement, the government intensified its fiscal squeeze on local government, seeking in real terms reductions in local authority expenditure. Contrary to assurances from ministers, both developments occasioned disruption for local authorities, with Glasgow in particular experiencing a severe period of fiscal stress. This paper outlines a research framework for identifying potential causal factors behind the acute nature of Glasgow's fiscal crisis, whilst considering the budgetary constraints within which Scottish (and indeed British) local authorities must operate. Finally, it focuses on the impact and resolution of the crisis and highlights the crucial role that the decisions of central government have played in shaping the response of one major local authority.