How Social Wealth Funds Could Help Tackle Inequality

This article examines the potential to tackle the roots of inequality by the introduction of one or more social wealth funds. Such funds would aim to capture some of the financial gains from the private ownership of capital—a principal driver of inequality—and use the proceeds for wider community benefit, such as investment in social infrastructure. In recent decades a number of countries have introduced a variant on such funds, mostly taking the form of state‐owned sovereign wealth funds resourced through the exploitation of oil, and used for a diversity of economic purposes. In contrast, the UK has failed to take the opportunity to create such funds by, for example, reinvesting the revenue from the sales of public assets. So would it be possible to build one or more such collectively owned funds in the UK, and if so, how should they be financed? As well as funding social investment and anti‐inequality programmes, could such a scheme also help finance a regular Citizen's Dividend payment or a Citizen's Income scheme?     

Does political reform increase wealth?: or,why the difference between the Chicago and Virginia schools is really an elasticity question

This paper shows that contrary to Becker' work there is no innate tendency for political competition to reduce the total cost of government wealth transfers. Simple examples demonstrate how the effects of government policies on total wealth boil down to the elasticities of the marginal support and opposition curves. Disagreements between the Chicago and Virginia schools of political economy can be understood as a disagreement about these elasticities. The broader implications for this argument in terms of the efficiency of the common law are also discussed.     

The Changing Politics of Foreign Aid — Where to Next?

The 1990s have seen the most systematic attempt yet to influence directly the government and politics of sovereign aid receiving states. Aid's conditionalities now include political as well as economic dimensions. The proclaimed objectives include democracy, human rights and good governance. But the old politics linking aid to donors' security and commercial interests has not disappeared. The future directions are uncertain. Some observers urge additional conditionalities emphasising social objectives of poverty alleviation. Others argue conditionality is bound to be ineffective. Aid's capacity to combat poverty, and thereby the contribution it can make indirectly to democratic prospects, is contested anyway. It should remain a durable object of social and political research.     

Cultures of Rioting and Anti-Systemic Politics in Southern Europe

The article investigates why, despite similar background conditions, Greece has been the site of frequent, highly visible, fringe, anti-system politics and street riots, while similar phenomena are rare in Spain. Although the article's focal point is the eruption of the December 2008 riots in Athens, it sheds light on the two countries' diverse social reactions to the sovereign debt crisis. Deploying the tool of media framing, it argues that historical legacies and political cultures matter. In the Greek case, the transition to democracy shaped a political ‘culture of sympathy’ towards acts of resistance to the state, a culture that has been institutionalised since the mid-1970s.     

Political institutions and sovereign borrowing: evidence from nineteenth-century Argentina

I study the relationship between political institutions and sovereign borrowing when constitutional constraints are systematically chosen to obtain better credit conditions. I argue that the impact of institutional constraints on country risk premia depends on the government’s concern with the country’s creditworthiness and its “willingness to repay”; two variables that are hardly observable. To properly evaluate the relationship between political institutions and sovereign borrowing, I focus on the link between institutional constraints and the risk premia of Argentine bonds between 1822 and 1913. Specifically, I analyze whether a “structural break” in the government’s cost of borrowing time-series exists. I use the Perron-Volesang test for structural change with unknown break dates. The statistical analysis indicates that the adoption of institutional constraints led to significant improvements in borrowing terms: the series has a single structural change; and the distinctive break point is associated with the country’s adoption of constitutional checks and balances. Time-series regressions and instrumental variables (IV) estimation reinforce these findings.     

The Politics of Local Government Stabilization Funds

The adoption, maintenance, and prudent use of budgetary stabilization funds are fundamental financial management precepts, yet the variables that influence the size of these funds are poorly understood. This article contributes to the stabilization fund literature by examining the extent to which variation in stabilization fund balances across municipalities and over time can be explained by a community's political culture and financial management capacity. The balanced panel research design includes archival data for 239 Massachusetts municipalities for each of 18 fiscal years. Stabilization fund balances are lower in communities with either an anti‐tax or a pro‐spending political culture. Stabilization fund balances are higher in communities that have the financial management capacity to accumulate budget surpluses that can be made available for appropriation to stabilization funds. Communities with the open town meeting form of government also have higher stabilization fund balances.     

The Combet Case and the Appropriation of Taxpayers' Funds for Political Advertising – An Erosion of Fundamental Principles?

This article contains a critical discussion of Combet v The Commonwealth (2005) and the reasons given by the High Court in that case, for dismissing the legal challenge to the present government's political advertising campaign in support of its Workchoice legislation which was conducted before the publication or enactment of that legislation. It also deals with the implications of the case for the declining significance in modern times of the parliamentary appropriation process as a means of ensuring the accountability of governments for the expenditure of taxpayers' funds. The article concludes with a discussion of the possibility of future parliaments (regardless of their political complexion) reasserting their control over the appropriation process and restricting the use of government advertising for political purposes.     

Liberal government and authoritarianism

This paper examines the intelligibility of authoritarian measures within Foucauldian analyses of the liberal government of the state. Such measures are understood as following from a liberal understanding of the task of government itself. This understanding rests on a distinction between the legal and political order (of 'the state') and a 'liberal police' of what is exterior to it, classically conceived as 'civil society'. The relation between these two aspects is conceived as a series of 'foldings' between the two sides of a liberal governing, which turn the injunction to govern through freedom into a set of binding obligations potentially or actually enforceable by coercive or sovereign instruments. The paper places this perspective within aspects of the genealogies of economy, poverty, welfare and police and discusses the trajectories of such foldings in the present.     

Higher Education and the Referendum on Scottish Independence

During the course of the referendum campaign, the Scottish government argued that free tuition for Scottish and EU students symbolised Scotland's preference for universal services and was intrinsically fairer than the ‘marketised’ systems operating in the rest of the UK. Invoking principles of both social justice and pragmatism, three distinct critiques of the Scottish government's higher education policy were mounted and adopted by different policy actors for different political purposes. Following a discussion of these arguments, this article concludes that a more nuanced discussion of higher education policy in Scotland is required, focusing not just on the absence of tuition fees but also on the distribution of debt and allocation of funds across the entire education system. We also note that the focus on tuition fees policy suggests that higher education systems across the UK are set on a process of divergence, whereas there are strong pressures towards policy convergence in areas such as research policy and internationalisation.     

The effects of personal campaign financing on party defection: Evidence from Brazil

Scholars suggest that personalism in the electoral arena may reinforce legislators' autonomy from their political parties, increasing their chances of party defection. Our aim is to investigate the role of one fundamental factor that can strengthen personalism: the personal financial capacity to fund electoral campaigns. We seek to answer whether legislators who have more financial resources coming from either personal wealth or individual donations are more inclined to leave their parties during their terms. Through data from Brazilian federal deputies, we show using multivariate regression models that the share of personal resources (especially the share of resources coming from candidate's personal wealth) has positive effects on the chances of defection. Being part of the government coalition and the regulatory framework in place also influence the relationships at play.     

The Indonesian 'New Order' as New Sovereign Space: Its Creation and Narrative of Self-concealment

This paper introduces and clarifies Carl Schmitt's analytical insights on emergencies and outlines their relevance in considerations of the creation of new sovereign spaces and polities. It then argues that Schmitt's analytical perspective may be used to understand recent and ongoing attempts by collective political actors to resolve circumstances of political and spatial unfamiliarity in East Asia. The tragic events of 30 September-1 October 1965 are examined in Indonesia's case. When perceived as an emergency, their resolution led to outcomes that were both anticipated by and beyond Schmitt's theoretical expectations. The most significant (and theoretically expected) outcomes of this historic moment - de facto sovereignty and a secure space - were so novel in the Indonesian context that their military creators were constrained to hide this fact. They did so by authoring a self-concealing narrative of both the moment itself and the political nature of the resulting 'New Order' polity. While the phenomenon of the self-concealing historical narrative was not anticipated in Schmitt's thinking, its appearance in the Indonesian case is, paradoxically, the clearest evidence of the occurrence of an emergency. Moreover, the creation and perpetuation of the new space by the emergency-ending actor, as well as the sovereign power to decide matters of identity and substance for this polity, matter more than the historical accuracy or longevity of the narrative designed to obscure their essence.     

The evolution of Israeli citizenship: an overview

Israel's citizenship discourse has consisted of three different layers, superimposed on one another: An ethno-nationalist discourse of inclusion and exclusion, a republican discourse of community goals and civic virtue, and a liberal discourse of civil, political, and social rights. The liberal discourse has served as the public face of Israeli citizenship and functioned to separate Israel's Jewish and Palestinians citizens from the non-citizen Palestinians in the occupied territories. The ethno-nationalist discourse has been invoked to discriminate between Jewish and Palestinian citizens within the sovereign State of Israel. Last, the republican discourse has been used to legitimate the different positions occupied by the major Jewish social groups: ashkenazim vs. mizrachim, males vs. females, secular vs. religiously orthodox. Until the mid-1980s the republican discourse, based on a corporatist economy centered on the umbrella labor organization – the Histadrut – mediated between the contradictory dictates of the liberal and the ethno-nationalist discourses. Since then, the liberalization of the Israeli economy has weakened the republican discourse, causing the liberal and ethno-nationalist ones to confront each other directly. Since the failure of the Oslo peace process in 2000, these two discourses have each gained the upper hand in one policy area – the liberal one in economic policy and the ethno-national one in policy towards the Palestinians and the Arabs in general. This division of labor is the reason why on the eve of its 60th anniversary as a state Israel is experiencing its worst crisis of governability ever. While Israel's economy is booming and the country's international standing remains high, due to the global ‘war on terror,’ public trust in state institutions and leaders is at an all-time low, so that the government cannot tend to the country's pressing business.     

Scotland's Future Political System

Debates on Scottish constitutional reform go hand in hand with discussions of political reform. Its reformers use the image of ‘old Westminster’ to describe ‘control freakery’ within government and an adversarial political system. Many thought that the Scottish political system could diverge from the UK, to strengthen the parliamentary system, introduce consensus politics and further Scotland's alleged social and democratic tradition. Yet the experience of devolution suggests that Holyrood and Westminster politics share key features. Both systems are driven by government, making policy in ‘communities’ involving interest groups and governing bodies, with parliaments performing a limited role and public participation limited largely to elections. The Scottish government's style of policy‐making is distinctive, but new reforms are in their infancy and their effects have not been examined in depth. In this context, the article identifies Scotland's ability to make and implement policy in a new way, based on its current trajectory rather than the hopes of reformers.     

Public Spheres and Urban Space: A Critical Comparative Approach*

China's mounting unemployment in recent years is an unintended but predictable consequence of the economic reform with an open labor market. It has turned into a major political crisis in a "socialist state" where not only security but also sovereign dignity of labor remain central to the constitutional mandate and, however lingering, to popular expectation as well. This article traces the origins of the crisis, explores linkage between participation and recognition, explains mutual relevance of the EuroAmerican "future of work" debate and the Chinese experience, and argues for creative adaptation toward an alternative. It concludes with an observation that participatory activities beyond salaried jobs would require guaranteed social security; and only institutional innovations in public policy that enable democratic control by citizens over resources and management can forge a new social contract for overcoming unemployment.     

Social and Political Consequences of Administrative Corruption: A Study of Public Perceptions in Spain

Spain experienced an outbreak of public sector corruption—much of it related to the involvement of regional and local administrators and politicians in the country's urban development boom—that angered the public and sparked calls for government reform. Using data from a 2009 survey that followed these events, the authors examine the association between perceived corruption and the attitudes and behaviors of citizens, including satisfaction with government and democracy, social and institutional trust, and rule‐breaking behaviors. The findings suggest that perceptions of administrative as well as political corruption are associated with less satisfaction, lower levels of social and institutional trust, and a greater willingness to break rules. Although these survey results cannot prove causation, they are consistent with the notion that administrative and political corruption damages the legitimacy of government in the eyes of citizens and weakens the social fabric of democratic society.     

The politics of government reorganizations: Evidence from 30 OECD countries, 1980–2014

Revisiting the seminal study of March and Olson (1983), this article aimed to empirically test whether or not government reorganizations at the ministerial level can be better explained by political factors than administrative and functional rhetoric. Government reorganizations have often been understood as functional adaptations to increase organizational efficiency and effectiveness, but little empirical research has been conducted on their political context. By analyzing pooled‐time series data from 30 OECD countries from 1980–2014 taken from the Statesman's Yearbook, this article sought to examine whether changes in political power are associated with government reorganizations and whether their intensity is affected by the country's political system (parliamentarism or presidentialism), transitions of administrative power, and political cycles of the top executive's tenure. The results suggested that government reorganizations are more likely to occur in parliamentary systems, after transitions of political power, and at the beginning of the top executive's tenure.     

Embracing electronic media but suppressing civil society: Authoritarian consolidation in Singapore

In contrast with some other parts of Southeast Asia, challenges to media controls in Singapore have been limited and ineffectual. Lately the government has been refining legislation to try and keep it that way. But this strategy is not principally based on the unrealistic objective of direct information control. Rather, preventing the emergence of organized social and political forces that could lead to a genuine civil society lies at the heart of the strategy. One of the factors that serves to reinforce the government's agenda here is the high degree of direct and indirect dependence on the state by Singaporeans for social and economic resources. This translates into vulnerability to political persecution and caution by social and ­political actors. Meanwhile, the promotion of Singapore as an 'infocommunication hub' has met with a positive response from global media organizations. New ­electronic media businesses appear just as capable of being reconciled with the authoritarian regime as more established media have proven to be.     

Shadow boxing in family politics: reply to Martin Durham

In his writings on government foucault commonly uses term ‘political’ as if it were equivalant to a certain understanding of governmental. Thus, in the title of his cotribution to the Tanner Lectures on Human Values, ‘Omnes et Singulatim, towards a criticism of ”political reason“, the object of Foucault's usage of the term ‘political’ to refer to a kind of govrmetal reason. Second, I argue that the practice of what Foucault understands by political reason in fact creates coditions for the emergence of a politics and a political reason of a very different kind. The appearance of this latter political reason poses a range of problems which must be addressed by any political (in the sense of governmental) reason but which play little part in Foucault's discussion. It Suggests, in particular, that Foucault's account of the liberal rationality of government is seriously incomplete. Third, I consider the grounds for Foucault's counterposition of political reason to liberation, noting that his critique of political reason as a principle of subjectivation raises a more general issue, which he describes as ‘the politics of ourselves’ (Foucault 1993: 223). I conclude by noting that Foucault's discussions of political reason lead in two very different directions: towards a powerful analysis of the practices and rationalities of government in the modern West or towards a radical critique of most forms of government, including the modern government of oneself.     

When are stable rights to rents bad?

Stable, enforceable property rights over resources normally furthers economic efficiency. I argue that stable rights to government created rents and wealth transfers, by contrast, generate inefficiency. Secure rights to receive transfers increases rent-seekers' incentive to make political investments creating new transfers. I demonstrate the point using a two period rent-seeking game. Contestable transfers reduce the probability of establishing a transfer program and aggregate rent-seeking expenditures. Strengthening transfer recipients' rights increases the difficulty of eliminating a transfer program.