A Social Discount Rate for Appraisal of Regional Investments: Evidence from Russia

This article provides estimates of a social discount rate (SDR) to inform government policy in Russia. We find that a SDR should be determined for the whole country as well as for particular regions. We apply the social rate of time preferences approach and estimate values for public sector projects at national and regional levels. All calculations are based on data from the Federal State Statistics Service of Russia. Findings help the decision-making process in the public sector of economics. Suggestions are useful for Russia as well as for post-Soviet countries and other developing economies with regional diversity.     

Federalism and low-maintenance constituencies: Territorial dimensions of economic reform in Argentina

How does the territorial distribution of political and economic resources within national polities influence politics and policy making? This article examines the electoral dynamics of market reform in Argentina between 1989 and 1995. It provides insights into the way that the distribution of economic and institutional resources in federal systems shapes policy making and coalition building options for reformist governments. The electoral viability of the governing Peronist Party during the economic reform period was facilitated by the regional phasing of the costs of market reform. Structural reforms were concentrated primarily on economically developed regions of the country, while public spending and patronage in economically marginal but politically overrepresented regions sustained support for the governing party. Statistical analyses contrast patterns of spending and public sector employment in “metropolitan” and “peripheral” regions of the country during the reform period, as well as the social bases of electoral support in those regions. A conceptual distinction between “high-maintenance” and “low-maintenance” constituencies is also introduced to shed light on the dynamics of patronage spending in contexts of market reform.     

Cross-border Cooperation in Central Europe: A Comparison of Culture and Policy Effectiveness in the Polish–German and Polish–Slovak Border Regions

Cross-border cooperation is recognised as an important aspect of regional development and especially EU cohesion policy. Policy effectiveness depends on how well programmes are suited to different border regional contexts. This essay analyses the factors that shape cooperation by comparing the Polish–German and Polish–Slovak border regions. Particular emphasis is placed on the cultural factors that set these two regions apart. The essay reveals that close-knit networks across the Polish–Slovak border promote successful policy definition and implementation. At the same time, the absence of such networks across the Polish–German border has led to a high degree of policy innovation.     

Economic Transition in Latin American and Post-Communist Countries: A Comparison of Multilateral Development Banks

This article examines regional development banks and their relationship with the World Bank. Specifically, the article analyzes the roles of the Inter-American Development Bank (IDB) and the European Bank for Reconstruction and Development (EBRD), and the factors that have influenced the creation of these international financial institutions. Most of the literature examines regional development banking practices and development strategies as if all regional banks were the same. However, the missions of the IDB and the EBRD are quite distinct. While the IDB primarily provides social sector loans to nation-states, the EBRD primarily provides private sector loans for finance and business development. Given that Latin America and the former Soviet Union share many of the same economic, political and social problems, it is surprising that these institutions are so different. What accounts for the different missions of these regional banks? We find that the influence of borrowing and non-borrowing member states in the creation of these banks can help explain some of the differences between the IDB and the EBRD.     

Regional Growth in China Under Economic Reforms

This article uses both cross-section and panel data approaches to study regional growth in China. Inter-regional income inequality increased ((divergence), the rich regions became richer but poor regions poorer (b divergence), over the data period 1978-95. This contradicts results from other cross-region country studies shown by Sala-i-Martin [1996] and some earlier studies on China. Only after controlling for regional effects, population growth, and investment in both physical and human capital do the data show significant b-convergence. More interestingly, the degree of openness and transportation are two other important factors responsible for differences in regional growth. This finding has important implications for regional development policy.     

Regional Disparities in Central and Eastern European Countries: Trends,Drivers and Prospects

Growth in Central and East European countries (CEE) is territorially unbalanced, more so than in most other parts of the EU. The benefits of transformation in these countries have been unequally distributed among particular social groups and territories—with the emergence of highly educated and internationally successful professionals and entrepreneurs located mainly in metropolitan areas on the one hand, and structural unemployment, persistent poverty and social exclusion in peripheral regions on the other. These regional imbalances are characterised by a process of metropolisation that has privileged a handful of dynamic urban centres while exacerbating the structural problems of old industrial regions, vast rural areas and regions located on borders, and especially the EU's eastern borders. Different as they are in social, cultural and geographical terms, these declining or stagnating regions share general problems of economic peripherality and many negative effects of structural change, such as rural depopulation, ‘brain drain’, disinvestment and, frequently, below-average levels of socio-economic well-being. This polarised economic and territorial development within CEE poses challenges not only for the respective countries, but also for European cohesion.     

Agriculture and rural out-migration in Central Asia, 1960-91

"This article seeks to analyse agrarian structure and policy in the Soviet period and discuss their effect on migration from rural to urban areas. In the case of [Soviet] Central Asia, neither the various steps to bring down labour intensity in the farm sector, nor the falling standard of living in rural areas, could bring about migration from rural to urban areas. This was because in traditional societies economic mechanisms are not effective unless they are complemented by appropriate social and cultural policies. All policies were oriented towards the state's goal of vertical integration of regions with the central economy. In Central Asia in particular this policy resulted in serious distortions in the social and economic spheres."     

REGIONAL GOVERNANCE IN ENGLAND: A CHANGING ROLE FOR THE GOVERNMENT’S REGIONAL OFFICES?

Debates about the appropriate territorial scales of government to meet the challenges of economic, political and social change have gained momentum in Western Europe in recent years. In the UK, political mobilization has transformed constitutional arrangements in Northern Ireland, Scotland and Wales. By contrast, in the English regions, a less radical approach has been adopted, but the outcome has been a strengthening of the institutions of regional governance. A key feature has been the enhanced responsibilities of the Government Offices for the Regions, which have been encouraged to build on their traditional administrative functions and adopt a more strategic role. This article explores the Offices’ contribution to regional and local governance. Our central argument is that although increasingly expected to act as a bridgehead between national and sub‐national government and a focus for regional policy coordination, their potential role in filling the missing gap in English regional governance has not yet been fully grasped.     

Social policy as nation-building: identity formation,policy feedback,and social citizenship in Ghana

Beyond economics-centric discourses about issues like “social investment,” in recent years scholars have argued that social programs, like education, healthcare, and income support arrangements, can be instrumental in the construction and reconstruction of national identities and solidarities at both the ideational and the institutional level. Drawing on this scholarship, this article makes a direct contribution to the comparative politics and policy literature by examining the trajectories of nation-building and social policy development in Ghana. It extends existing scholarship by providing an in-depth study of Ghana while using that case to further explore the understudied connection between social citizenship, identity formation, and policy feedbacks from existing social programs.     

Conceptualising and testing the ‘emerging regional power’ of Turkey in the shifting ınternational order

Turkey has thus far been generally neglected in most IR studies on power categorisations, such as middle or middle-range power, regional power or rising/emerging power, despite its rising regional power status in the past decade. This paper attempts to understand Turkey’s regional power together with its rising power status using an integral approach. In doing so, it empirically tests whether or not Turkey fits Daniel Flemes’s ‘regional power’ category, which seems to be proposing a more complete and integral framework through the fulfilment of four basic preconditions: claim to leadership; possession of necessary power resources (material and ideational); employment of material, institutional and discursive foreign policy instruments; and acceptance of leadership by third parties. Based upon these analytical tools, the article will discuss Turkey’s performance in creating a regional impact in its neighbouring regions of the Middle East, the Balkans and the Black Sea and Caucasus.     

阿拉伯海湾国家对外援助的战略、特点与影响

阿拉伯海湾援助国是新兴援助国的重要成员,在国际发展援助中的贡献与日俱增。援助国的实践服务于政治、经济与文化战略需求,与石油红利、君主制政权、历史地缘关系、伊斯兰文化的宗教属性及地区安全环境密切相关。从外交战略看,援助政策被纳入国家总体战略,在保持对战略重点区域持续投入的基础上向全球扩展,主要体现为团结援助和南南合作;从经济战略看,在全球范围内部署和循环利用石油财富,旨在加速推进国家经济多元化政策;从文化战略看,宣扬伊斯兰传统文化中慷慨施舍的精神,达到提升国家地位、塑造地区影响力之目的;从援助特点看,以王室和中央政府主导的援助政策,兼顾双边和多边的援助渠道,援助分配聚焦受援国经济与社会发展领域、积极对接国际发展合作新机制。援助不仅通过人道主义援助缓解了贫困国家的发展难题,而且彰显了其在国际发展合作中的多重作用,与中国深入践行合作共享的发展理念息息相通。     

Policy analysis applications of remi economic forecasting and simulation models

This article surveys the ways that regional economic forecasting and policy analysis models have been used to provide information as an input for policy decision making in the public and private sectors. The major areas are as follows: forecasting and planning; economic development; transportation; energy and natural resources; taxation, budget, and welfare; United States policies; and environmental policies. The survey indicates that, while analysis and research may be required to prepare for a model simulation, the predicted economic effects of a policy can be very important information as an input for a wide range of policy decisions.     

Implementing Regional Policy in Poland: A New Era?

In 2010, Poland launched a new national strategy for regional development which is seen as an assertion of Poland's domestic regional development vision, informed by, but distinct from, EU cohesion policy which has dominated Polish regional policy since accession. A key question is whether a new model of policy implementation is emerging. The strategy includes a commitment to a place-based regional policy model. This implies spatially sensitive policy implementation capable of mobilising the potentials of all territories. However, the concept is vague. Moreover, in Poland this agenda is being launched in a context of entrenched territorial disparities, traditionally constrained policy implementation capacity and institutional change. What are the defining characteristics of place-based implementation systems? What are the challenges to the institutionalisation of the place-based model? Are these evident in delivery frameworks being developed in Poland?     

Administrative Reform and Regional Development Discourses in Hungary. Europeanisation Going NUTS?

Starting from the empirical observation of high levels of absorption of EU cohesion funds but strikingly low levels of substantive change in regional cohesion, this essay offers a contextual analysis of regional development policies in Hungary. Based on theoretical frameworks dealing with Europeanisation, new regionalism and participative development, it explores the reasons for this observation by analysing the role of administrative and planning structures and of development discourses. The essay shows that the Europeanisation of regional development policy triggered several changes in the planning process and led to the partial inclusion of new actors. However, the main effect of this was a growing centralisation of development policy making. The essay explains this by pointing to the domestic political context and the historical foundations of regional development discourses of the conservative and leftist liberal parties. While there are overlaps between the discourses on both sides of the ideological divide, they are perceived as incompatible by political actors. Thus, it is argued that considerations of political power, rather than ideological nature, shape Hungarian regional and development policy and explain the incremental reform process.     

Regions and regionalism in the european community

Regionalism and European integration are two forces which are modifying the nation state. They are in contradictory in some respects but complementary in others. Their combined effects raise a number of policy and institutional issues. A new triangular relationship is emerging, among the Community, states and regions. Most links between regions and the Community pass through national governments but both regions and the Commission are seeking direct links. The Community's structural funds have become an object of contention among the three levels. Both regional development and European integration have ceased to be matters regulated at elite level in a technocratic manner and become highly politicised and contentious. In the new Europe, the differing capacities of regions to project themselves within states and the Community is likely to enhance the trend to a variable geometry Europe.     

Czech regional development agencies in a shifting institutional landscape

In recent years regional development disparities in the Czech Republic have been increasing, regional policy and regionalisation have moved up the national political agenda, and considerable regional development resources have become available through EU Structural Funds. The Czech Republic now has more than 18 institutions that describe themselves as Regional Development Agencies (RDAs), with a wide range of policy and practical experience and, in the present climate, they should now be poised to take on a key regional development role. However, their function and position in regional development networks is continually plagued by uncertainty, and they are struggling to fulfil the ‘ideal’ of what an RDA is and what it should do. This article asks why this is the case and examines how domestic and EU policy agendas and actors have influenced the role and function of RDAs in the Czech Republic. Whilst theories such as ‘new regionalism’ suggest that RDAs can lead integrated, bottom-up regional development actions, it is questionable whether Czech RDAs have the capacity to adapt to the type of role that proponents of this approach expect.     

From Brain Drain to Brain Circulation: Transnational Communities and Regional Upgrading in India and China

By 2000, over one-third of Silicon Valley’s high-skilled workers were foreign-born, and overwhelmingly from Asia. These U.S.-educated engineers are transforming developmental opportunities for formerly peripheral regions as they build professional and business connections to their home countries. In a process more akin to “brain circulation” than “brain drain,” these engineers and entrepreneurs, aided by the lowered transaction costs associated with digitization, are transferring technical and institutional know-how between distant regional economies faster and more flexibly than most large corporations. This article examines how Chinese- and Indian-born engineers are accelerating the development of the information technology industries in their home countries—initially by tapping the low-cost skill in their home countries, and over time by contributing to highly localized processes of entrepreneurial experimentation and upgrading, while maintain close ties to the technology and markets in Silicon Valley. However, these successful models also raise several questions about the broader relevance of brain circulation outside of several key countries, and regions of those countries, within the global South. AnnaLee Saxenian is dean and professor at the School of Information Management and Systems and professor in the Department of City and Regional Planning at the University of California, Berkeley. She is currently exploring how immigrant engineers and scientists are transferring technology entrepreneurship to regions in Asia.     

EXIT,VOICE, AND DISAPPOINTMENT: MOUNTAIN DECLINE AND EU COMPENSATORY RURAL POLICY IN SPAIN

The article analyses the Spanish experience of EU compensatory rural policy in order to contribute to broader debates on the effectiveness of this kind of policy and the role of agriculture in the definition of European rural policies. In the case of Spain, compensatory allowances to mainly mountain farmers had little effect on economic trajectories or social cohesion because of the small sums involved, the exclusion of those with very small farms, and the decreasing role of agriculture in the rural economy. Other, more structural, instruments of rural policy focused on small‐scale promotion of business growth but were ill‐equipped to challenge some of the territorially defined items of living standard gaps. A historically grounded analysis suggests that the main changes in the social trajectory of Spain's mountain areas in the last decades have little to do with compensatory policy and are related to ordinary economic dynamics.     

Transnational Capital,the US State and Latin American Trade Agreements

This paper examines the role of US-based transnational corporations in advancing trade, investment, regulatory and intellectual property rights provisions within NAFTA and DR–CAFTA. I explore the linkages between US firms, the US state and investment patterns in Mexico, Central America and the Dominican Republic in order to develop a framework for understanding the political economy of these regional trade agreements. I locate the timing of each of these agreements within the context of the goals of a transnational interest bloc that includes US-based transnational firms, US state officials and regional business interests and state bureaucracies in Latin America, with each trying to utilise regional agreements as a substitute for failed multilateral initiatives as well as a springboard for advancing a more aggressive set of protections for investors within bilateral investment treaties. In order to determine the extent to which transnational firms based in the USA have influenced these trade agreements, I explore three interrelated aspects of business influence: the extent to which transnational firms with investment interests in Mexico and Central America were involved in organisations that had regular access to key US policy makers; the historical development of a transnational interest bloc that has linked US firms and the US state to transnational capital and state bureaucracies in Mexico, Central America and the Dominican Republic; and the extent to which the same group of transnational firms has been attempting without success to advance a policy agenda in the WTO that incorporates many of the provisions of NAFTA and DR–CAFTA. The failure of this transnational interest bloc to effect substantial changes in WTO policies has led the bloc to rely on regional trade agreements to pursue its interests.