Regulatory reform,property rights,and economic development

Overcoming tradeoffs between the social benefits of regulation and the economic benefits of development has never been easy in practice. This article examines the economic development consequences of state and local regulation by developing a framework that provides a theoretical basis for expecting regulatory costs to influence the amount and location of new development. After elaborating the theory, I identify two ways state and local governments may be able to pursue regulatory goals without creating disincentives for economic development. One approach is for state or local government to socialize costs of regulatory compliance through public expenditures or subsidies. A second, and more promising, approach is to pursue regulatory reform which lessens private sector transaction costs by reducing regulatory uncertainty. This framework is illustrated using two cases: state regulation of the chemical industry, and growth management regulation.     

Democracy and economic development

This discussion explains why democracy as is generally understood may not be suitable to meet the challenges of a developing economy and how democratic institutions generally fail to respond to the immediate demands of a population impatient to raise its level of living. It defines the terms economic development and democracy, reviews some theoretical models of democracy which have been proposed in economic theory, proposes an approach to the process of economic development, and considers problems of development. Economic development is a process which calls for huge investments in personnel and material. Such investment programs imply cuts in current consumption that would be painful at the low levels of living that exist in almost all developing societies. Governments need to resort to strong measures, and they must enforce them vigorously in order to marshal the surpluses required for investment. If such measures were put to a popular vote, they would certainly be defeated. Mainstream economic theory assumes the virtues of a market system and the decisions arrived at by the interaction of market forces. This is the economic equivalent of democracy. Yet, mainstream economic theory devotes little attention to the conditions under which a market system generates a just solution. The democratic developing countries have all inherited a class society, with a highly skewed distribution of income. The wealthy minority often seeks to preserve its privileged position and to enjoy the benefits of development. It even seeks the help of the judiciary to preserve the sanctity of private property and to assure that its patterns of conspicuous consumption can continue. This is done in the name of democratic rights. Many developing societies are burdened with outmoded traditions and value systems that are incompatible with the production relations of the new society they hope to achieve. The international exchange of resources is believed by some to be an attempt to control the pace and character of development so that the economic colonization will survive. To end such unfavorable conditions for development, 3rd world governments must demand greater sacrifices from their citizens, and this cannot be achieved by normal democratic means. Recent events in several developing nations illustrate this point.     

Development impact fees: Modeling future growth and economic development in a south Carolina community

User fees are an attractive alternative to general taxes, especially property taxes, insofar as they are stable and appropriate. The development impact fee is sometimes used in growing communities, and can relieve the service cost burden of new development to existing residents in the short term. Their proper use demands forecasting development trends, population growth and economic conditions. The city of Mount Pleasant, South Carolina - a suburb of Charleston - has used simple models to assess impact fees for the past seven years. This paper will describe the models used to determine impact fees and also describe a more filly developed revenue model used to predict future growth of impact fees as one category of local revenue.     

Foreign direct investment,financial development and economic growth

This article argues that the development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. A more developed financial system positively contributes to the process of technological diffusion associated with FDI. The article empirically investigates the role the development of the financial system plays in enhancing the positive relationship between FDI and economic growth. The empirical investigation presented in the article strongly suggests that this is the case. Of the 67 countries in data set, 37 have a sufficiently developed financial system in order to let FDI contribute positively to economic growth. Most of these countries are in Latin America and Asia.     

The state and economic development

In this article it is argued that one must distinguish between the arbitrary, short-run power of the state and the long-run, infrastructural power of the state. Game theory concepts are used to illustrate these ideas and successful development is linked to the infrastructural power of the state. The evolution of the latter is related to culture/ideology and this is given operational meeting within the context of simple game theory. The historical experience of Japan is utilized to illustrate these ideas. Dr. Richard Grabowski is a professor of economics at Southern Illinois University-Carbondale. His research interests include the role of the developmental state in economic development. His work has appeared inWorld Development, Journal of Developing Areas, Economic Development and Cultural Change.     

The environmental sciences and economic development

This article deals with one aspect of the relationship between the environmental sciences and economic development, namely, the relationship between studies of natural resources and the appraisal of agricultural development projects. It reviews some such projects in which no real attention was paid to surveys of natural resources and passes on to consider the land systems approach to the appraisal of land capability and, briefly, the applicability of” benefit/cost analysis to agricultural development projects. Its principal concern, however, is with the lamentable tendency for land resource surveys to be conducted independently of economic enquiry. It enumerates some of the reasons for this state of affairs, and suggests certain possible remedies.     

Migration,rank-size distribution,and economic development: The case of Mexico

This is an examination of whether city size is truly an independent variable when the relationships between city size and certain economic and social phenomena are considered. A new hypothesis is presented that postulates that relative or systemic city size is an independent variable that affects urban growth patterns through varying, non-optimum migration flows. The hypothesis is tested using official Mexican data for the period 1960 to 1970.     

Country size and economic growth and development

This paper attempts to provide limited empirical evidence on the nature of the relationship between country size and rates of economic growth and levels of economic development, and on the possible effects of trade concentration and dependence on trade on this relationship. It suggests that there is no discernible association between country size and economic development, nor between country size and economic growth, and that neither the dependence on trade of small countries nor their commodity and geographic export concentration are necessarily important factors in economic growth and economic development.     

Neighborhood challenges to economic development

This article analyzes neighborhood-based development challenges. The article examines six explanations for such challenges: use value, social status, growth, economic and fiscal, governmental structure, and suburban. Using data derived from several sources (survey, Census, I. C.M.A.), the results indicate that cities with higher housing values and reform government structures are more likely to have neighborhood-based development challenges. The analysis is extended to investigate successful neighborhood-based development challenges. These results indicate that a city's poverty rate depresses the potential for successful challenges and that challenges are more likely to be successful in central cities. Finally, the analysis indicates that those cities in which neighborhood groups are motivated by the desire to protect housing values are more likely have successful development challenges.     

Tariffs and economic development: A comment

The optimality criteria of linear programming transportation and spatial equilibrium models never ‘explain ‘ real world flow patterns. This paper provides reasons for the difference between an optimal solution and real world patterns. Data for the linear programming exercises are derived from the four stages of a rice marketing system in Sri Lanka at a time when the state had monopoly control over distribution. The examination of factors more important than transport costs in explaining residual flows sheds some light on policy and institutional problems associated with monopoly procurement.

Substantively, a comparison of the optimal solution with reality shows a fairly high degree of transportation efficiency throughout the system, except at the last stage, where rice changes hands between two parastatal orginisations (the Paddy Marketing Board and the Food Commission) to be distributed to final destinations. Inefficient store locations rather than commodity allocations generate the greatest waste of transport. Reasons for the difference between programming solutions and reality include uncertainty, congestion, policies and institutional structure conducive to a deterioration in quality of the commodity handled, problematic regional preferences for rice type, inadequate communications, unpredictable timing of rice imports and corruption.     

Conceptualising corporate community development

Globally there is an increasing focus on the private sector as a significant development actor. One element of the private sector’s role emphasised within this new focus has been corporate social responsibility (CSR) activities, whereby the private sector claims to contribute directly to local development. There is now a substantial body of work on CSR but it is a literature that is mostly polarised, dominated by concerns from the corporate perspective, and not adequately theorised. Corporations typically do development differently from NGOs and donors, yet the nature and effects of these initiatives are both under-researched and under-conceptualised. In this paper we argue that viewing CSR initiatives through a community development lens provides new insights into their rationale and effects. Specifically we develop a conceptual framework that draws together agency and practice-centred approaches in order to illuminate the processes and relationships that underpin corporate community development initiatives.     

Financial development and economic growth: Additional evidence

This note suggests that, contrary to the conclusions reached in several recent studies, the empirical evidence does not support the view that financial development promotes economic growth. It is first noted that the predominant pattern in the data for 95 individual countries is that of a negligible or weakly negative covariation between financial development and growth of real GDP per capita. Second, the individual‐country correlational picture is a sharp contrast to the correlations based on crosscountry data that have been used in most research on the subject. Third, individual‐country estimates of a basic multiple‐regression growth model also do not indicate a positive association between financial development and growth. Fourth, in cross‐country data and models of the kind that have been used in most studies, when the regression structure is permitted to vary across three subgroups, a huge parametric heterogeneity is observed, and the overall indication is that of a negligible or negative association between financial development and growth.