Service Innovation in Developing Economies: Evidence from Latin America and the Caribbean

This paper proposes a framework for understanding key aspects of service innovation in developing economies, based on four dimensions: first, the integration of services in national innovation systems; second, competences and preferences; third, networking and cooperation; and, fourth, outcomes in terms of socio-economic impacts. This conceptual framework is matched with new evidence from case studies performed in six different Latin America and the Caribbean countries (Argentina, Chile, Brazil, Uruguay, Costa Rica and Jamaica) and nine sectors (tourism, software-ICT, outsourcing, mining, logistics, retail, creative services, sport services and biotech services). The results reveal the importance of specificities in service innovation and suggest policy and managerial implications.     

Fighting Tax Evasion in Latin America: the contrasting strategies of Chile and Argentina

In the 1990s both Chile and Argentina embarked on efforts to tackle tax evasion. The strategies they pursued differed substantively: Argentina followed a coercive approach that created an elite audit team endowed with special legal powers, while Chile undertook a less spectacular service-oriented approach that improved the fiscal pact between state and society and enacted tax administration reform. Chile succeeded in permanently lowering tax evasion levels, while Argentina's success was short-lived and evasion levels soon returned to previous heights. Besides important differences in the institutional strength of these countries, the contrasting outcomes can be attributed in no small measure to the different strategies adopted. Their experience can provide some useful lessons in the elusive battle against tax evasion in Latin America.     

Development strategy and regime type: Why doesn’t democracy matter?

The development strategy literature argues that autonomous bureaucrats in authoritarian Asian NICs followed successful export-led growth strategies while Latin American policymakers were pressured by mobilized sectors to maintain doomed import substitution industrialization. What is more, this ISI strategy made the consolidation of democracy impossible. However, my research on Venezuela indicates that ISI and democracy can be made compatible—the democratic state was penetrated by business and labor, those avenues for penetration were protected from electoral politics, and the relative participation of business and labor remained fluid. How are recently established democracies being made compatible with a new market-oriented development strategy? Evidence from East Asia and Latin America indicates that the transition to market-oriented economies and the institutionalization of participation by key sectors have not gone together. Policymakers are trying to isolate bureaucrats from public pressure and centralize power away from bodies vulnerable to electoral oversight. The “deinstitutionalization” of democratic politics may make the relationship between regime type and development strategy unstable.     

State transformation and cross-border regionalism in Indonesia’s periphery: contesting the centre

Abstract

This article examines how the decentralisation and fragmentation of the Indonesian state and resultant central–local dynamics affect cross-border regionalism in Indonesia’s periphery. It argues that cross-border regionalism projects are best understood as sites for scalar contestation over regulatory control between central and local government. Moreover, scalar contestation around cross-border regional projects is characterised by the struggles to control relationships with transnational capital between elites operating at different tiers of the state. When elites at different scales have conflicting interests and strategies, this can cause policy incoherence, inhibiting the development of cross-border regionalism. Conversely, when they align, and intersect with the interests of transnational business, cross-border regionalism can succeed. To illustrate the argument, this article utilises the comparative case studies of the Batam free trade zone and West Kalimantan–Sarawak cross-border cooperation.     

Contrasts in Development in Bihar: A Tale of Two Villages

Abstract

The article investigates the economic and social changes that have occurred over the last 30 years in two villages in Bihar, one of the poorest states in India. The two villages are on different development paths: one based on agricultural diversification and local non-agricultural employment, the other dependent on migration to distant labour markets. They therefore connect with India’s overall growth in different ways. Neither development model delivers clearly superior outcomes in terms of incomes, nor are they exhausted, but the long-term sustainability of a migration-led model remains debatable.     

The Politics of Discontinuity and Its Medium Term Policy Outcomes: Evidence from Ghana

ABSTRACT

It is common knowledge in Ghana that during political transitions, programs set in previous Medium Term Development Plans (MTDP) by prior governments are abandoned without regard for their wider national implications. While the economic impacts of these political transitions have been researched, till date no known studies have taken a holistic look at the relation between political transition and the level of MTDP target achievement. This article attempts to fill this research gap using Ghana as a case and the policy learning and political business cycle literatures as organizing frames. Using annual MTDP data and semi-structured interviews with 25 officials who were involved in the implementation of MDTPs at the national and local government levels, this article finds that aberrations in target achievements across the entire period between 2001 and 2016 were the result of financial constraints and the pressures to adjust to political change.     

Sustaining Free Market Economic Education in a Transition Economy: A Romanian Experience

Abstract

Following the collapse of the socialist governments of Eastern Europe, the United States provided aid to assist those countries transition to a free market economy. A common model was to provide expert assistance for a defined period with the expectation that changes would be sustained after the project ended. In Romania U.S. aid included assistance to universities to revise curriculum and teaching pedagogy and to establish small business development centers. Ten years later only one small business development center still exists. The experience of the surviving center indicates that commitment to the continuance of the bureau is as important as the quality of service delivery in maintaining small business assistance programs.     

How Targeted Enforcement Shapes Marketing Decisions of Pimps: Evidence of Displacement and Innovation

Abstract

Little research to date has examined how those who serve as intermediaries between clients and prostitutes (i.e., pimps) are influenced by targeted police interventions. While earlier work noted that displacement from risky online venues (i.e., Backpage and Craigslist) occurs, this study relies on data gathered from interviews with a purposive sample of pimps in the cities of Atlanta and Chicago to examine further the effects of targeted enforcement on where pimps advertise online and use of technological tools to reduce risk of detection. Pimps who advertised on the Internet were not different from those who used nonvirtual advertising, suggesting similar markets in the virtual and nonvirtual illicit sex trade. The vast majority of pimps who utilized the Internet for business continued to use Craigslist and/or Backpage to advertise and developed additional tactics to leverage their use. Some pimps broadened their presence on the Internet to other locations (specialized websites), moved to the deep web, and utilized different technological tools to reduce their risk of detection. Last, pimps adopted more interactive marketing strategies that permitted them to remain where their customers were familiar, but tap into sections of websites that previously had not been utilized.     

Feature review Corruption eruption: Development and the international community

Abstract

‘Tied’ or ‘in-kind’ international food aid has been criticised as an implicit form of export subsidy that governments use to circumvent export subsidy restrictions. In addition to displacing agricultural exports, food aid is less efficient than untied aid and depresses local agricultural production in recipient countries. I argue that tied food aid is not protected by the Uruguay Round Agreement on Agriculture and could consequently be challenged under the World Trade Organization's dispute settlement mechanism as a prohibited or actionable subsidy contrary to the Subsidies and Countervailing Measures (scm) Agreement. As the USA is both the largest donor of international food aid and most consistently ties its food aid to domestic agricultural producers, this paper focuses on US policy to describe the challenge that might be advanced under the scm Agreement.     

Diaspora Mobilizations in the Egyptian (Post)Revolutionary Process: Comparing Transnational Political Participation in Paris and Vienna

ABSTRACT

This article sheds light on the patterns of diaspora mobilization in different settings by placing it in the transnational realm. The article does so by comparing Egyptian activism during the revolution and transformation period (2011–2013) in two European capitals, Paris and Vienna. I argue that different features—emigrant policies of the sending country, integration policies of the receiving country, and characteristics of the migrant group—influence the degree and form of diaspora mobilization.     

The Impact of Environmental Factors on the Measurement of Managerial Efficiency in the Italian Waste Management Sector: Framework and Empirical Evidence

ABSTRACT

The public and private sectors are different in terms of ownership, funding, and control. The degree of publicness influences the decision-making processes, strategies, and actions, thus severely impacting the performance levels. This study contributes to the existing literature on managerial efficiency environmental factors by proposing a framework and methodology for estimating the influence of the “publicness effect.” A new method is tested, relying on the combined integration of three different data envelopment analysis models in the Italian waste management sector. Results show that the “publicness effect” accounts for 33.87% of managerial efficiency for public companies and 11.6% for mixed ones.     

Can Business Rights Alleviate Group-Based Inequality in Sub-Saharan Africa? Understanding the Limits to Reform

Abstract

Africa’s indigenous minorities face unique constraints, particularly in terms of engaging in even the most basic business activities. They typically lack business rights, but, even where such rights have been extended, they have had scant impact on group poverty. This paper argues that the failure of business rights to meaningfully transform the livelihoods of marginalised minority groups stems from elite capture of resources, dependency on external validation, and a contradiction between a collective problem (group poverty) and an individualist solution (business rights). African states could alter conditions through active pursuit of affirmative action policies, but lack socio-economic and political incentives.     

Transformation and Decay: the de-institutionalisation of party systems in South America

This article surveys the evolution of party systems in South America in terms of their level of institutionalisation. In recent times political competition in much of South America has become less structured by political parties proper and has moved in the direction of candidate-centred movements and electoral vehicles led by political entrepreneurs. Most countries in South America (Brazil, Chile and Uruguay are exceptions) have experienced party system de-institutionalisation during the 1990s and 2000s, as voters have systematically punished traditional parties, often rendering them marginal or forcing their disappearance. The scale of decomposition varies across cases but it has affected countries with historically well institutionalised party systems (Colombia, Venezuela) and those with inchoate party systems (Ecuador, Peru, Bolivia) alike.     

“HEALTHFUL GOODS”: HEALTH,HYGIENE, AND COMMERCIAL CULTURE IN EARLY TWENTIETH-CENTURY SHANGHAI

Abstract

This article examines the development of Shanghai’s household-chemical industry, which produced and sold soap, toothpowder, and toothpaste, and other personal hygiene items, and discusses how the ideas of health and hygiene became an integral part of the city’s commercial culture in the early twentieth century. Through various commercial strategies, Shanghai’s businessmen promoted their commodities and hygiene practices simultaneously. They also actively participated in mass movements organized by the Nationalist state, since such movements provided a marketing opportunity for them. This article argues that precisely because they were doing business, Shanghai’s small entrepreneurs successfully connected personal hygiene, national strength, and the act of buying.     

Afrovision: rehearsing diasporic Africanism in a Tel-Aviv nightclub

ABSTRACT

During the second half of the 1990s, an extended number of illegal African labor migrants arrived at Israel. Whereas associational life among them was based almost exclusively on their national and tribal social clubs, the Afrovision nightclub was a unique grassroots initiative that crossed these boundaries. Based on studies of festive rituals, and more specifically of the role of music and dance in processes of identity formation among migrants' communities, I show how and why Afrovision enabled African immigrants in Israel to come together and experience a sense of diasporic Africanism as a sort of shared identity beyond the salient sub-divisions within their community. Although this experience was partly a reaction to, or implementation of, common perceptions in Israeli society that view African people as of one fiber, the practical significance of the pan-Africanist option offered by Afrovision in the everyday lives of foreign residents far exceeded purely symbolic aspects.     

Seeds of hope,seeds of despair: Towards a political economy of the seed industry in southern Africa

The seed industry in Southern Africa has been radically transformed by a policy of liberalisation and privatisation started under structural adjustment. Traditionally under the domain of parastatals, seed research, production and distribution has been criticised for failing to provide modern variety seed to smallholder farmers. However, the private companies which have stepped in to replace seed parastatals in southern Africa have proven no more effective in meeting the demands of smallholders. The Trade Related Intellectual Property Rights (TRIPs) Agreement, concluded in 1994 as part of the Uruguay Rounds of GATT negotiations, as well as certain biotechnological innovations such as Terminator or Traitor technologies, threaten to further undermine local seed production and consumption by destroying the informal seed sector so central to agricultural production in the region. What alternatives exist? The success of Zimbabwe's maize seed network offers some insight. Resting on a unique relationship between government and nationally based producer co-operatives, Zimbabwe's maize programme was able to provide nearly every farmer in the country with hybrid maize suited for local growing conditions.     

Between Cold War Imperatives and State-Sponsored Terrorism: The United States and “Operation Condor”

Operation Condor was a transnational network of organized state-sponsored terrorism that targeted Communist “subversion.” It was operational in the second half of the 1970s. The key member countries were Chile, Argentina, Uruguay, Bolivia, Paraguay, and Brazil (Peru and Equador joined the network later on, with a more marginal role). Based on declassified documents from the United Nations High Commissioner for Refugees in Geneva and on U.S. documents of various origin, this article will assess the development of the Condor network and the U.S. reaction to such manifest acts of state-sponsored terrorism.     

Public contracting,policy preferences and minority business enterprises

About three years ago a Special Issue of the International Journal of Public Administration focused on the topic “Government Set-Asides, Minority Business Development, and Publi Contracting.”^(l) Much of the discussion in the issue addressed race conscious government set-aside programs in the aftermath of the U.S. Supreme Court decision in City of Richmond v. J. A. Croson Co. ⁽²⁾ The decision declared unconstitutional a local government minority business set-aside provision designed to help minority business enterprises (MBEs) obtain government contracts. At the time, the decision was applicable only to state and local governmental jurisdictions.⁽³⁾ Government set-asides involve the practice of providing minority contractors and subcontracting a certain percentage of a public jurisdiction's contract dollars.

In 1995 the Supreme Court in Adarand v. Pena ⁽⁴⁾ extended the Croson ruling to include set-aside programs in federal agencies. This Special Issues examines and discusses the Adarand decision and the developments that have followed. The first article by Mitchell F. Rice, “Federal Set-Asides Policy and Minority Business Contracting: Understanding the Adarand Decision,” reviews the Adarand decision and discusses the implications of the decision for minority business development. The next article by Audrey L. Mathews and Mitchell F. Rice, “Adarand v. Pena: Turning Challenges Into Opportunities,” uses a case study of two public preference programs to suggest how Adarand requirements may be successfully utilized to maintain set-aside preference programs.

The third article by Shelton Rhodes, “Mirmative Action Review ‘Report’ to the Presidents: Implications of Military Affirmative Actions Programs to Current and New Millennium Affirmative Action Programs,” reviews the Affirmative Action Review: Report to the President which was ordered by President Clinton soon after the Adarand decision. Rhodes considers the implications of the possible applicability of the successes of affirmative action and equal opportunity in the military, which is highlighted in the Report, to other public and private organizations. The final article by Wilbur C., Rich, “Presidents and Minority Set-Aside Policy: Race, Gender and Small Opportunities,” analyzes the impact of presidential leadership on minority set-asides policy and shows how politicians use set-asides to facilitate exchanges and cooperation with the business elites.     

The inflationary impact of repetitive devaluation

It is suggested that in countries which have sustained a significant inflationary condition and, as a consequence, have frequently changed their foreign‐exchange rate, price expectations may be developed on the basis of these changes. In order to examine this hypothesis a macroeconomic model is built and econometric tests are undertaken using quarterly data for Brazil, Chile, and Uruguay. The author warns that since repetitive devaluation‐type policies can fuel price expectations, they may only lead to increased domestic inflationary pressures, balance of trade deficits, and further rounds of devaluation.     

Socioeconomic Development and Voluntary Associations in Swedish Municipalities

Abstract

This paper explores the link between voluntary associations and socioeconomic development in Swedish municipalities. According to previous research in the field of social capital, the causal flow goes from having many associations to a high level of socioeconomic development. It has been argued, however, that the causal flow from the level of socioeconomic development to the level of social capital is so weak that it can be ignored. This paper tests a simple simultaneous equation model in order to test whether the causal flows from socioeconomic development to social capital and the inverse are simultaneous. The study is carried out at an aggregated level (the municipalities) that corresponds to the lowest administrative level in Sweden. The results indicate that the socioeconomic development cannot be ignored and that there is a simultaneous relationship. Moreover, the empirical findings indicate that the relationship is negative between the variables expressing socioeconomic development and associational density.