Simple rules for a complex regulatory world: the case of financial regulation

European Journal of Law and Economics - Twenty-five years ago Richard Epstein published Simple Rules for a Complex World, which would go on to become one of Epstein’s most influential works....     

Beyond the anti-kickback statute: new entities, new theories in healthcare fraud prosecutions

The authors analyze existing and developing trends in healthcare fraud litigation. They first review the traditional use of the Medicare-Medicaid Anti-Kickback Statute to prosecute such fraudulent activity. They then consider newer theories that have been employed, or may be employed, in cases involving payors, middlemen, agents, and fiduciaries. These include the use of the Civil False Claims Act, the Federal Travel Act, and the Public Contracts Anti-Kickback (sometimes incorporating violations under state commercial bribery and similar state legislation to form the basis of a federal claim or prosecution). The Article then turns to a discussion and warning of attorneys' potential liability for a client's kickback arrangements. Finally, the Article takes a very brief look at relationships under Medicare Part D that may well prove to be a fertile area of problematic conduct, public and congressional scrutiny, and prosecutions utilizing some of these theories.     

Building a clean government in Turkey: pillars,perils, and prospects

Corruption is a serious and enduring problem in Turkey. As such, a series of sustained and synchronized actions are needed to promote integrity, and to prevent and punish corrupt practices in public life. In most recent years, subsequent cabinets have promulgated a set of laws, regulations, and measures in the name of fighting against corruption. Yet, building a clean government remains as a daunting, if not insurmountable, task for policy makers and the public at large in Turkey. The current paper begins with a brief introduction, summarizing the need for new, more effective anti-corruption policies and practices in the country. Then, it succinctly describes and assesses the main ‘pillars’ of the ‘national integrity system.’ The paper moves on to identify and evaluate the chief ‘perils,’ challenges and risks associated with efforts aiming to contribute to integrity, transparency and accountability in Turkish society. Finally, the paper discusses the ‘prospects’ for building a clean government in Turkey in the near future. Among the issues brought to the present debate are: the need for a credible commitment by the ruling elites for establishing a well-functioning integrity regime; effective coordination and collaboration among a wide range of institutional actors; developing a set of coherent principles and policies; and creating capacity to prevent, prosecute, and punish corrupt behaviors. It is also argued that building a clean government in Turkey requires a strong and sustainable coalition among the clean, the competent, and the competitive.

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Changing expectations:COSMIC in the new world

Twenty years ago, in the olden days, computer software was a specialty niche open only to gurus who were willing to devote years of study to the field. In the last three years the picture has changed. With the advent of comfortable user interfaces, word processors, spreadsheets, and easy-to-use databases, almost every secretary in the country is conversant with computer technology and their bosses are catching on fast. The result is a heightened awareness of computer software. COSMIC, a longestablished, non-profit software distribution facility devoted to technology transfer, is reviewing and revising its operations, trying to meet the expectations of a wider audience.     

Tackling the health divide in europe: the role of the world health organization

Europe faces major health challenges in addition to its well-reported economic and financial difficulties. Despite the overall improvement in population health, significant inequalities remain, with a growing gap between rich and poor. WHO Europe, covering fifty-three member states, is committed to helping European governments meet the complex challenge posed by the "silent epidemic" of noncommunicable diseases. In September 2012 WHO launched Health 2020, an ambitious new health policy framework and strategy. Its success requires a whole-of-government and whole-of-society approach to improving health and well-being, informed by the latest evidence on cost-effective interventions. This review considers the prospects for success.     

Alternatives to trusts: a brave new world?

The UK's changes in the taxation of trusts have not inspiredconfidence in the long-term tax treatment of trusts in the UKand practitioners are considering new alternative mechanisms.The author examines the alternatives.     

Love,fear, and justice: Transforming selves for the new world

Two current models of the self are contrasted. The limitations of these (egocentric autonomous and sociocentric organic) models generate five problems for a comprehensive approach to justice. An alternative model is presented that views the self as an agent who is dependent on others and is motivated by both love for the other and fear for the self. This alternative model has three advantages: The two current models can be derived from it; it resolves the problems created by their limitations; it provides a concrete vision of how we must develop ourselves if we wish to obtain a just world.     

Making the rules and breaking the rules: the political origins of corporate corruption in the new economy

Recent scandals at companies like Enron and WorldCom have pointed to the systemic origins of many corporate frauds. This paper advances the argument that behind those scandals were strategic political actions that changed the regulatory and legal environment in which those firms operated and created criminogenic institutional frameworks that facilitated acts of corporate corruption. Three case studies involving (1) the California energy crisis of the late 1990's, (2) the regulation of energy derivatives, and (3) accounting treatments of stock options, are presented to illustrate how markets and the rules that govern them are the products of political processes and how they can create motivations and opportunities for corporate fraud. The implications these case studies have for the study of corporate crime and corruption are discussed.     

Social organization as a correctional ideology: Breaking new ground

This paper examines the importance of the prison environment and its social organization as factors which reinforce the continued socialization of criminal careers. The authors analyze contemporary research findings within the context of prison administration and conclude that if behavioral change is to become a realistic by-product of incarceration, then we may need to reformulate the correctional ideology upon which penal policies rest. A social organization framework; consistant with empirical data, is then provided as the basis for an ideology leading to new generation prisons.     

Insider trading and the public enforcement of private prohibitions: some complications in enforcing simple rules for a complex world

Accepting the argument made by Manne, Epstein and others that firms wishing to allow their employees to insider trade should be permitted to do so, this article shows that there is still a crucial role for government in regulating insider trading. In particular, allowing employees to profit by insider trading is a form of employee compensation that, in contradistinction from conventional forms of equity compensation, results in unknowable and effectively unlimited costs to the company. Since providing employee compensation in this form causes the company to lose control of its compensation expense, even if insider trading were legal, virtually every company would rely on conventional forms of employee compensation and prohibit its employees from insider trading. But, pace Manne, Epstein and others, companies lack the means to detect insider trading by their employees, and even when they do catch employees insider trading, companies can impose only mild contractual sanctions, generally not exceeding disgorgement of profits and dismissal. As a result, although an efficient agreement between a company and its employee would prohibit the employee from insider trading, this prohibition cannot be effectively enforced by the company. Government, with its usual law enforcement powers, is better able to detect insider trading and can impose more severe sanctions on violators, including criminal penalties. Government should thus enforce a ban on insider trading in those instances, which will be virtually all instances, in which a company prohibits its employees from insider trading. The efficient solution is thus a hybrid system of private prohibition and public enforcement. Such a system is not unusual but the norm. Employers prohibit employees from embezzling their money and stealing their property, and employees are subject to contractual sanctions and dismissal for violating these prohibitions, but we still need statutes against theft to generate an optimal level of deterrence. This is all the more true when the employee misappropriates information, which is much harder to detect than a theft of money or property.

     

Eastern Turkistan Islamic Movement: a case study of a new terrorist organization in China

The Eastern Turkistan Islamic Movement (ETIM) was designated a terrorist organization by Afghanistan, Kyrgyzstan, China, the United States, and the United Nations in 2002. However, no systematic studies have been published on the new terrorist organization in Xinjiang, China. Using a case-study approach and interviews, this article attempts to provide information in terms of its historical evaluation, related religious and ethnic issues, organizational agenda, activities, and role in the current international terrorist network. This article argues that better international cooperation and the improvement of social and religious policies will help curtail activities of the ETIM.     

The legal profession of China in a globalized world: innovations and new challenges

ABSTRACT

The legal profession is undergoing fundamental changes; and this is the case not just in established legal markets. Based on a state-of-the-art sketch, this paper identifies and analyzes the latest innovation initiatives and alternative business models in China’s legal profession. It finds that, propelled by market demands and benefiting from technological advancements, the provision of legal services has become highly versatile today, giving rise to various alternative service providers, especially the rapidly rising online legal service portals. Because they are technically not law firms, the exclusivity requirements on lawyer ownership and legal service provision are not applicable to them. In the meantime, the competition for large corporate clients and lucrative business transactions is fierce and will continue to be so, not only within the club of big Chinese corporate law firms, but also between Chinese law firms and international law firms globally. In this course, some leading big corporate law firms in China are observed to have creatively incorporated key corporate features in running their business and compensating their partners, effectively deviating from the partnership?+?pure legal services regulation. Such market realities question the necessity and effect of the regulatory restrictions on law firm legal form and ownership structure, and call for an agenda for related research in the future.     

Towards a new paradigm of the right to self-determination in the world trading system

There has been a shifting meaning of the right to self-determination, since World War Ⅱ, from territorial decolonisation into other meanings such as the right for indigenous people, minorities, ethnics groups and women＇s rights in the territories of independent states. Furthermore, the new phenomenon signifies that it is also used implicitly in the world trading system by states in maintaining their sovereignty from trade liberalization. This has been a dilemma in understanding the right to self-determination within international law. This paper, however, critically evaluates the potential applicability of the right to self-determination in the world trading architecture. It begins by examining the origins, evolution and current struggle to the right to self-determination in the world trading system. It then addresses in General Exceptions, Safeguard Measures and Special and Preferential Treatment as existing and applied principles in the World Trade Organization. It is highlighted that the real world still needs the right to self-determination as a means of struggling for economic justice. The right to self-determination has shifted from the right to transfer territory politically into the right to the transfer of welfare economically and in particular, the right to self-determination of people into the fight to self-determination of states.