Re-scaling the debate on Russian economic growth: Regional restructuring and development asynchronies

This article provides a critique of the literature on Russian economic growth and argues that broadening the growth debate to include regional perspectives may cast new light on economic processes at work in the varied geographical context of Russia. The article shows that growth in Russia's regions is much more comprehensive than often realised in the West and is closely associated with rising levels of industrial production in the overwhelming majority of regions. This contradicts the perception that resource dependency is the only formula of success within Russia. The author also provides a close examination of Leningrad oblast', once declining but recently one of the fastest growing regions in the Russian Federation. However, although the general vector of development has changed radically, the case of Leningrad oblast' demonstrates that the growing economy perpetuates the landscape of unevenness. New technologically intensive loci of development have paralleled ‘underinvested’ areas—despite being situated within the same administrative and political context. Nevertheless, growth continues to trickle down to less advantageous areas, both buttressing and spurring national growth as a whole.     

Cultural and economic prerequisites of democracy: Reassessing recent evidence

The purpose of this article is to reassess two influential theories of democratic development: the theory of democratic culture and the theory of economic development. The leading predecessors in each domain—Ronald Inglehart and Adam Przeworski—are the prime targets of analysis. We take issue with recent evidence presented by these authors on three grounds: the evidence (1) confuses “basic” criteria of democracy with possible “quality” criteria (Inglehart); (2) conceptualizes democracy in dichotomous rather than continuous terms (Przeworski); and (3) fails to account for endogeneity and contingent effects (Inglehart). In correcting for these shortcomings, we present striking results. In the case of democratic culture, the theory lacks support; neither overt support for democracy nor “self-expression values” affect democratic development. In the case of economic development, earlier findings must be refined. Although the largest impact of modernization is found among more democratized countries, we also find an effect among “semi-democracies.” Axel Hadenius is professor of political science at Uppsala University in Sweden. He is the author ofDemocracy and Development (Cambridge University Press, 1992) andInstitutions and Democratic Citizenship (Oxford University Press, 2001). Jan Teorell is associated professor of political science at Uppsala University. His articles on intra-party democracy, social capital, and political participation appear in international journals.     

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.     

Monetary regimes,economic stability,and EU accession: Comparing Bulgaria and Romania

This paper traces the origins of the different monetary regimes adopted in Bulgaria and Romania in 1996–97 and examines their performance during the EU accession. The findings indicate that the constraints of the currency board in Bulgaria shifted economic activity towards the private sector, while the discretionary policies in Romania turned public finances into both a contributor and a response mechanism to economic imbalances. While the prospects of EU accession initially enhanced the performance of the monetary anchors, the implicit insurance of EU membership increased moral hazard and led to a rapid rise in private and public debt. The paper also explores the historical parallels between the monetary regimes of Bulgaria and Romania in 1996–97 and 1925–1940.     

The politics of neoliberal economic reform in South America, 1980–1994

What political conditions facilitate market-oriented reform? Prior research suggests that neoliberal policies are inherently unpopular, politically hazardous, and consequently dependent upon the existence of strong and relative autonomous governments. This study reassesses the political costs and benefits of market-oriented reform and attempts to offer insights for future theory building by exploring five hypotheses on the basis of the post-1980 South American experience. The findings suggest that the political obstacles to reform have been exaggerated and theoretically misspecified. Neoliberal policies are less the product of the triumph of technocratic expertise over political calculus than of the structure of political incentives and opportunities created by broader sets of factors, including economic circumstances, structural conditions, pluralist pressures, institutional constraints, and international linkages.     

Employment,restructuring, and gender: The case of San José, Costa Rica

San José has been the territorial fulcrum of Costa Rica’s post-World War II socioeconomic exceptionalism relative not only to Central America but to the periphery of the world economy at large. Research on the contemporary reorganization of the world economy underscores the gendered aspects of widening socioeconomic inequalities on an international scale. From these standpoints, this paper analyzes change in San José’s labor market in terms of two basic questions. First, to what extent has the recent experience of very small countries on the periphery reflected the baseline features of restructured inequalities of employment and gender as portrayed in the literature on global transformation during the late twentieth century? And second, given that the aggregate prosperity of Costa Rica since its economic crisis of the early 1980s has been premised on neoliberal reforms, to what extent have shifts in the gender contours of San José’s labor market amounted to recovery or loss compared with its socioeconomic exceptionalism of the pre-crisis era?     

The state of the 'state' in globalization: Social order and economic restructuring in Malaysia

This article asserts that, instead of anticipating or searching for indications of the 'end of the state' in an era of neoliberal globalization, it is more fruitful to examine the relationship between the state and social order, because of the potential to discern the conditions and consequences in which occur the ruling elite's and social forces' resistance to and/or alliance with, transnational capital. A case study of Malaysia is presented to demonstrate the complex and even contradictory ways in which social order is regulated that allows the state to manage demands emanating within and beyond the country. Specifically, the analysis focuses on the different historical junctures in which changing bases of state power, paths of development, and official manipulation of social identities converge in the regulation of social order that facilitates capital accumulation while maintaining state legitimacy in a multi-ethnic context.     

Mining and subaltern politics: political struggle against neoliberal development in Bangladesh

Drawing on social movement scholarship, this paper analyses subaltern struggles against a multinational mining company. The Phulbari coal mine is the centre of contention between the mining company and local/national activists. Local concerns about the dispossession of lands and livelihoods and environmental destruction have been merged with a Leftist political agenda on the growing vulnerability of the state and national sovereignty in the Global South. A close examination of the movement's discourses suggests that a broader political struggle against resource plunder and energy imperialism has been strengthened by local community resistance to an environmentally destructive coal mine. Based on in-depth qualitative interviews, I analyse how activists have created new meanings of the conflict to confront and delegitimize hegemonic discourses of capitalist development and modernity.     

Society, community, and economic development

Studies of economic development and economic history have long been concerned with the relationship between the transparent and supposedly anonymous forces of markets, rules, and bureaucracies, on the one hand, and membership in groups, such as local communities, associations, or networks on the other. Economists are quite divided about these latter forces: for some, they are necessary underpinnings for the market, providing trust and social capital which in turn reduce transaction costs and moral hazards and hence promote development; for most, they are seen as archaic, leading to nepotism, rent seeking, and institutional rigidity. Indeed, throughout the social sciences, there is an opposition between the roles assigned to what may be called the “societal” and the “communitarian” bases of social and economic development. But each position in this theoretical standoff underestimates the contributions of either society or community to economic development. This is because both society and community have potentially positive and negative effects; together, however, they can act as mutual checks and balances on their potentially negative effects, while reinforcing the positive contributions of each to economic efficiency. Different levels and types of society and community, in interaction, define complex contexts of choice and incentives in economic development, and allow us to see more clearly the basis of different institutional configurations in relationship to development. Michael Storper is professor of regional and international development in the School of Public Affairs at UCLA; professor of economic geography at the London School of Economics; and professor of economic sociology at the Institut d’Etudes Politiques (“Sciences Po”) in Paris. He received his Ph.D. from UC Berkeley.     

Varieties and crises of neoliberal globalisation: Argentina,Turkey and the imf

Argentina and Turkey are two important ‘emerging market countries’ that experienced a major economic crisis during the same year. Focusing on the period leading up to the respective 2001 crises in the two countries, this article attempts to place the two experiments in historical perspective and provide an understanding of the common elements as well as the diversity of the neoliberal restructuring process in semi-peripheral settings. The article also attempts to identify some of the key mistakes made by the imf, which was, in part, responsible for the crises experienced. A central conclusion is that ‘new’ or unconsolidated democracies find themselves particularly vulnerable when they are suddenly and prematurely exposed to financial and capital account liberalisation. The outcome is a highly fragile, debt-led growth path with costly consequences. Indeed, although both countries have managed to accomplish impressive recoveries in the post-crisis period, given their past trajectories and the heavy debt burden that they face, it is too early to say that the recovery process will be translated into sustained and crisis-free growth. The regional environment in which the two countries find themselves might be particularly important in this context, with the powerful EU anchor a possible important advantage in the Turkish context.     

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.     

Promoting neoliberal ideology in Finnish rural community development: the creation of new moral actors

ABSTRACT

Today’s political ambitions are based on the neoliberal aspiration to diminish the state’s role and responsibilities, and to transfer those responsibilities to local communities and individuals in ways that idealise those communities, promising to ‘give power to the people’. Instead of highlighting individualism, neoliberalism now celebrates communities and participation. This article deals with the effects of this ideology with regard to Finnish rural policy objectives. Drawing on Finnish village action programmes as data, we argue that these ideological views aim to transform individuals and create new moral actors. Our research indicates that Finland’s rural policy objectives invoke actors that are responsible for their communities, have an ‘enterprising spirit’, and are change-friendly and innovative. However, the ideology disregards the economic and social preconditions and resources necessary for building affluent communities and villages, which are difficult to attain when there is less government involvement. Thus, rural communities face increasing demands and less government involvement.     

Agrarian reform and structural change in Latin America: The Chilean case

Agrarian reform has been a central political issue in Chile during the last decade although less than 30 per cent of the country's population is agricultural. The Christian Democratic government elected in 1964 in tiated a land reform over rightist opposition with the pirmary objective of eliminating the traditional latifundia and granting land to some 100,000 peasant families. Only one‐fourth of this goal had been met in 1970 when a coalition of socialists, communists and other leftist parties elected socialist Salvador Allende president. The new government's programme promises a ‘transition to socialism’ including a far more profound and sweeping agrarian reform than the one begun by the previous administration. Realization of such an agrarian reform poses difficult political, social and economic problems. In this article we attempt to define the major issues and to analyse policy alternatives facing the new government.     

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.     

Political parties,party systems,and economic reforms: The Turkish case

Turkey’s experience with economic reforms and democratization since the early 1980s underscores the importance of the political parties and the party systems in the interactions between these two processes. The country’s experience with democratic politics and a multiparty system made a significant contribution to the resumption of electoral politics and redemocratization following three years of military rule in the early 1980s. However, the opening up of the political space and the reemergence of competitive party politics ultimately created problems for the successful completion of the economic reforms, as one-party dominance and majority-party governments gave way to fragmentation in the party system with weak coalition governments. The Turkish case is instructive of the difficulties facing countries that seek to simultaneously consolidate their democracies and liberalize their economies. Sabri Sayari is executive director of the Institute of Turkish Studies and research professor at Georgetown University’s School of Foreign Service. He has written extensively on Turkey’s domestic politics and foreign policy, and on issues related to political development, parties and party systems, and democratization.