Political incrementalism: Political lessons from China's 20 years of reform

The recent crackdown by the Chinese Communist Party government on the efforts of Chinese dissidents to organise the China New Democratic Party has raised a serious question among scholars: why has the Chinese leadership been so reluctant to initiate democratic reforms? But an equally important question is: how has the Chinese political system been able to accommodate drastic socioeconomic changes? Although Chinese leaders from Deng Xiaoping to Jiang Zemin have strongly opposed the Western style of democracy, they have continuously adjusted the country's political system to prevent socioeconomic chaos from occuring, chaos that has troubled many former communist states and Third World countries. This paper explores China's political incrementalism and explains how incremental political reforms have worked. It argues that, although Chinese leaders have so far been successful in accommodating social changes through incrementalism, they are still uncertain about how to cope with increasing social demands for political reform and democratisation.     

国有企业“走出去”与当代中国外交海外困局

伴随中国经济海外投资规模的扩大和国际影响力的提升,国有企业在中国经济有关能源开发、工程承包、投资安全、领事保护等海外事务中的影响与日俱增,成为当代中国外交政策新的参与者。然而,由于自身认识、经验、能力等主观条件及客观的国际政治经济环境所限,日趋独立的国有企业在"走出去"的过程中也存在诸多问题,为当代中国外交的海外行动制造了一些棘手的困局。     

A mesolevel comparative approach to maxi and mini strategies of public enterprise reform

Large-scale privatization is an unfamiliar area of public policy. The practice and study of property reforms and privatization needs to include mesolvel phenomena such as laws, regulations, institutions and standard operating procedures. There has been little comparative analysis of privatization programs around the world. The author argues that analysts should compare the most immediately relevant institutional environment of the enterprise. Conceptually, this mesolevel system is situated between the firm and the macroeconomy. This system of action is especially fruitful for cross-national comparisons of privatization programs because it is at this level that privatization strategies are designed. The problem for Eastern Europe and for less-developed countries is lack of experience with the relatively light economic regulation that characterizes industrial countries. Government leaders must also decide how much effort to devote to privatization of state-owned enterprises and how much to fostering private sector investment in new firms. Ernest J. Wilson, III is affiliated with the National Security Council, Washington, D.C.     

An analysis of mergers and acquisitions in Mexico: 1985-1996

The recent devaluation of the Mexican peso and the resulting “Mexican syndrome” has opened up a world of opportunities for foreign investors. Mexico with all of its economic problems is still seen by many investors as a sound economy with the necessary ingredients to stage a strong comeback. Economic crises often lead to an escalation of corporate restructuring such as mergers, acquisitions and joint-ventures, both, domestic as well as cross-border. This paper examines the M&A trends in Mexico over the period 1985-1996.

The results indicate that cross-border M&A deals have increased during the nineties, with Europe being a major participant since 1995. As far as the industrial sectors are concerned, the study shows that very few M&A deals have been completed in the construction, transportation, and petroleum industries. The managers of multinational firms should take note of this and public administrators should attempt to attract foreign capital towards these sectors. A sound distribution infrastructure is very essential in order to attract much needed foreign capital to the country.

The study also finds that relatively few cross-border M&As have been completed with state-owned enterprises. With the aggressive reforms of the Zedillo government and the privatization of the transportation, electricity, and petroleum sectors, there is bound to be an increase in competition and opportunities for investments in these sectors.

Finally, managers of multinational corporations who are targeting Mexico, should be fully aware of the differences in culture and ownership status of target firms. This study shows that a large number of the deals have been done with privately-owned firms, and would therefore need good negotiation skills.     

Changing Patterns of Privatization: Ideology,Economic Necessity,or Political Opportunism

This article considers privatization decisions by governments in four Australian states over twenty years of micro-economic reform. It focuses on the policy frameworks and political context for privatizing government enterprises, drawing on Kingdon's framework for policy change to analyze differences in the substance and timing of decisions. In the 1990s, governments considered privatization as an economic and political strategy to resolve the problem of state-level fiscal crises, but the patterns of adoption were variable. Two states resisted the general trend toward privatization, but recently changed their position. We argue that the recent financial crisis provided a window for reintroducing contentious reform initiatives that had lost momentum.     

Conflicts of preferences and domestic constraints: understanding reform failure in liberal state-building and democracy promotion

This paper challenges the common explanations that failures of external state-building and democracy promotion are the result of a lack of domestic capacity or a lack of domestic willingness against an externally set liberal agenda of state-building and democratisation. Studying political decision-making on a micro-level, we argue that both explanations fail to capture the multi-faceted motivations and interests of domestic actors that go beyond mere ‘resistance’ against externally induced liberal reforms. Rather, criticism of reforms might be rooted in ideas of social justice and claims to socio-economic security. Furthermore, these explanations tend to overlook the need for domestic elites to bargain with various domestic stakeholders. A case study of Croatian public administration reform illustrates that failure of externally promoted reforms remain an option when significant international resources are available for liberal state-building and the target of reform is a relatively mature bureaucracy.     

Public Perceptions of Privatization in Ethiopia: A Case for Public Good or Private Gain?

Ethiopia is one of the many countries in sub-Saharan Africa attempting to privatize various state-owned enterprises since 1994. This study examined public perceptions about Ethiopia's privatization policy and procedures. Results support the concerns over the public's inability to know about, be involved in and comment upon public policies affecting Ethiopia's future. Findings also support the literature that a privatization policy is effective only when institutional and technical capacities for proper implementation are in place. Further, findings raise questions about the efficacy of privatization in a national context where interests may be misrepresented.     

Between Apprehension and Support: Social Dialogue,Democracy, and Industrial Restructuring in Central and Eastern Europe

This article explores the attitudes of trade union organizations to restructuring and privatization of their enterprises to strategic foreign investors in Central and Eastern Europe's biggest steel producers: Poland, Czech Republic, Romania, and Slovakia. Contrary to advocates of insulating technocratic decision-makers from social partners, this article argues that higher quality of democracy and concomitant social dialogue carried out at the level of the sector with union organizations that are autonomous of the government in power (as was the case in the Czech Republic and Poland), are associated with greater restructuring and with support for privatization to strategic foreign investors. In these circumstances, the unions actually pressure reluctant governments to accelerate the privatization process. By contrast, politically motivated capture of individual enterprise-level unions and splitting them from sectoral-level organizations, as occurred in countries with lower quality of democracy (Romania and Slovakia), weakens the autonomous sectoral-level organizations, which are generally supportive of restructuring. Conversely, captured unions remain far more resistant to reform than their counterparts belonging to autonomous sectoral organizations. Thus, higher quality of democracy and concomitant vibrant social dialogue safeguard industrial restructuring.     

The lessons of privatization

Privatization policies have swept the world and helped restructure economic activity. Although there are clear benefits to privatization initiatives, many attempts have been rejected. Unfortunately, most policy research has ignored this fact. Research on privatization has mostly focused on programs that have been accepted, and not those that have been rejected. This study, however, breaks new ground by examining the microeconomic, macroeconomic, and political factors that shaped both types of privatization outcomes. This work, based on the book, The Logic of Privatization: The Case of Telecommunications in the Southern Cone of Latin America, suggests that the implementation of privatization policies hinges on the ability and capacity of the political leadership to control the bargaining process during the divestiture of state-owned companies. Failure to control the process may expand the conflict beyond the scope of the original participants and result in its rejection. This study statistically examines the economic and political data of sixteen attempts to privatize telephone companies around the world between 1981 and 1993. The findings suggested that microeconomic factors were not very significant in determining the privatization outcomes: however, macroeconomic factors were found to be slightly more important. The political factors, nonetheless, proved to be the most important variables in explaining the different outcomes. These findings were supported by the statistical results.     

Economic orthodoxy and the East Asian crisis

It is increasingly apparent that the Asian economic crisis has also led to a serious ideological crisis in the West. Before the collapse there was broad agreement among Western orthodox economists that developing countries should pursue a set of economic policies, often referred to as the 'Washington consensus', which included financial sector liberalisation, privatisation of state-owned enterprises, fiscal discipline and trade, exchange rate and foreign investment deregulation. Since the collapse, however, this consensus has broken down. This paper examines the emergence of the new so-called post-Washington consensus, with its emphasis on governance and social capital. The lexicon of the new policy paradigm underlying this new consensus includes civil society, safety nets, and, especially, governance, to be added to the conventional Washington terminology of open markets, deregulation, liberalisation and structural adjustment. Our central thesis is that this new post-Washington consensus is an attempt to place more emphasis on the political and institutional foundations for programmes of structural reform. However, it is also a kind of politics of antipolitics that attempts to insulate economic institutions from the process of political bargaining.     

THE FRENCH STATE AND ITS TERRITORIAL CHALLENGES

This article focuses upon the territorial challenges to the French state. There is a genuine policy puzzle in terms of how to join up separate agencies of the state that is far from unique to France. Introducing new evidence based on interviews with high ranking officials, politicians and representatives of territorial policy communities in 2010, the main body of the article focuses upon the two main territorial reforms of the Sarkozy presidency, the reform of the territorial state, and the local government reform. These cases reveal an original attempt to craft a political discourse based on public sector productivity and state puissance. The article explores the tension between synoptic models of reform, focused on the expectation of rapid and quantifiable macro‐level change that suits the short‐term returns of the political cycle; and institutionalized processes of meso‐level implementation, with different timescales, logics of appropriateness and configurations of actors.     

Perceptions Of Federal Management In The Clinton Era

This article examines aspects of planning, budgeting and reorganization in order to evaluate what improvements have been undertaken during the Clinton presidency to improve government performance in the United States national government 1 . The authors develop a model of government reform based upon a series of escalating steps. These are: (1) internal government improvements; (2) fundamental restructuring and reorganization of agency operations; (3) programme reforms, driven by internal management; (4) programme reforms – driven by policy and political change; (5) reform of the political system itself. The authors conclude that while the National Performance Review and Government Performance and Results Act are the centre-pieces of this effort, reform will continue in the US after NPR
and GPRA wither away because the time is right for reform for a variety of reasons discussed in the article. The findings are then focused in a broader context in terms of their applicability to western democracies which could result in smaller more successful governments in the twenty-first century.     

Poland and the international system: external influences on democratic consolidation

Democratization in Poland has been heavily influenced by agents and structures external to the Polish state. However, the influence of these external agencies is mediated through domestic social and political institutions, the state foremost among them. The Polish state's response to and interaction with external agencies is heavily conditioned by the very process of democratization which these agencies seek to influence. Thus, the impact of external agencies on the democratic consolidation process cannot be understood without reference to the influence that democratization has played in reshaping Poland's foreign relations. This paper explains the interaction between systemic and domestic factors in shaping the democratic consolidation process in Poland.     

Public Enterprise Reforms and Financial Performance of Government Commercial Companies of Fiji

Public enterprise reform is no new phenomenon. Since the late 1970s, state intervention in the market has been increasingly challenged, acquiring a more ideological form with the rise of ultra-conservative governments in the UK and USA. Like other countries across the world, Fiji has also attempted to reform its public enterprises. This article compares the performance of corporatized public enterprises that sit at different levels of financial performance. Such enterprises have experienced reforms but with mixed financial outcomes. Overall, the major finding of this research is that there is no single factor that can lead to better or poor financial performance.     

APPRAISING THE NEW INSTITUTIONAL ARRANGEMENTS FOR PRIVATIZATION OF KOREAN STATE-OWNED ENTERPRISES

Privatization is a long-term and complex process involving changes in attitudes, values, perceptions, and mentality. The president of the Republic of Korea and line ministries are pursuing an ambitious course of privatization. Based on common research questions concerning privatization policy, this paper has two objectives: first, to review the past performance of South Korea's privatization policy, and second, to evaluate the new institutional arrangements for the privatization of state-owned enterprises designed by the current government.     

Neo-liberal Reforms and Illiberal Consolidations: The Indonesian Paradox

Market-oriented policy agendas have enjoyed a remarkable influence in Indonesia for almost four decades. Yet, attempts to impose these agendas in any systematic fashion have proven uncertain and inconclusive. This is not simply a case of successful resistance to reform by entrenched interests. Rather, the deepening of market capitalism and global integration has, in many instances, appeared to consolidate authoritarian politics and predatory economic relationships. Even in the wake of economic crisis and dramatic political change, these basic frameworks of power remain largely intact. Such paradoxes raise important questions about the relationships between markets, institutions and political and social power. We examine how market reforms have been resisted and even hijacked to consolidate predatory state and private oligarchies. We look at the way such entrenched interests have been reorganised in the face of fundamental institutional changes, including the collapse of authoritarian rule and the decentralisation of political authority.     

国际税收制度改革新进程及其影响

针对数字经济税基侵蚀和利润转移的国际税收制度改革于2013年被正式提上议程,并逐渐形成了以双支柱为核心的税改方案。2021年10月,改革取得突破性进展,正式获得大多数改革参与国同意,计划于2023年开始在全球范围内实施。国际税收制度改革未来将对全球税收治理、全球贫富差距、数字经济发展、资本流动和避税型离岸中心等产生持续影响,也将给中国完善税收体制、发挥大国优势、吸引中资跨国数字企业回归、推动自由贸易试验区改革与创新等带来机遇。但国际税收制度改革同时会收紧中资跨国企业的海外投资环境,对香港金融稳定也会造成影响。中国应以本轮国际税收制度改革为契机积极参与,并完善税收征管机制,加快市场化建设和金融开放进程,在自贸区对标高水平国际创新,以及提升香港内生增长动力和稳定性。     

Privatization of state-owned enterprises in mexico

The privatization of state-owned enterprises in Mexico, signifies a reversal of its long tradition of state-led economic development. Motivated by the financial crisis of the early 80's, Mexico has reduced the size and significance of its public sector through the process of privatization. The paper outlines the progress of the program since 1982 and discusses the impact of privatization and the lessons learned from the case studies of Mexicana Airlines, Aeromexico and Telmex. The concluding section evaluates the accomplishments and discusses the limitations of the Mexican privatization strategies.