The East African community and Europe

The European Union and Russia are preparing to negotiate a new comprehensive agreement at a time when their bilateral relations have become increasingly prickly. On the one hand, Vladimir Putin's Russia is perceived as having gone undesirably far in reverting to a semi-authoritarian state and in exerting economic and political pressures on some pro-Western, former Soviet states. On the other hand, the EU's Russia policy remains ambivalent because of the continuing deference towards Moscow of a number of large European countries and the confrontational posture of some new EU member states. Other factors add to this deteriorating state of affairs. For one, there are a number of legal complications coming from the shape and scope of the new agreement. Perhaps more importantly, there are several political uncertainties, first and foremost the definition of those “common values” upon which the new treaty should be based. To get out of this quandary, the two sides will have to scale down their ambitions on the new agreement. A mutually acceptable formula might imply the negotiation of a concise “framework” treaty, accompanied in due time by sector-specific agreements.     

Policies for full employment and more efficient utilization of resources and new trends in European regional development

Democracy promotion in the middle east. Business as usual?

La questione della democrazia nel mondo arabo ; stati, società e conflitti / a cura di Federica Bicchi, Laura Guazzone, Daniela Pioppi. ‐ Monza : Polimetrica, c2004. ‐ 396 p. ‐ (Islamica). ‐ ISBN 88–7699–008–9     

Preventive servicing is good for business and affordable homeownership policy

Abstract

This article documents the growing importance of preventive servicing—business practices that emphasize early intervention in delinquency and default management practices that also help financially troubled borrowers avoid foreclosure. We suggest that the loan servicing side of the affordable housing delivery system may be underappreciated and undercapitalized.

We use a database of more than 28,000 affordable housing loans to test several preventive servicing‐related propositions and find that after we control for loan and borrower characteristics, the likelihood that a delinquent mortgagor within this universe will ultimately default varies significantly across servicers. This suggests that loan servicing is an important factor in determining whether low‐ and moderate‐income borrowers who fall behind in their mortgage payments will end up losing their homes through foreclosure. It also suggests a need for policy makers to incorporate preventive servicing into affordable homeownership programs.     

Aspectos políticos de la dependencia financiera en los municipios mexicanos1

Specialized literature has analyzed the impact of changes to fiscal institutions such as The National System of Fiscal Coordination (1980) and the constitutional reforms of article 115 (1983 and 1999) on the degree of financial dependence of local (municipal) governments and the governmental functioning. Political environment as well, affects to an important extent such functioning. Indeed, previous studies in the field of political economy point to the effects of political environment and fiscal institutions -such as public spending and debt- on national and sub-national governments. Based on four variables -political affiliation of the mayor, political affiliation of the governor, composition of local congresses and celebration of local elections-, the authors build indicators of “political confluence” at the municipal level. They study the effect that the degree of political unification at the municipal level has on the financial dependence with respect to the State government, and also to the local Congress. In their analysis, the authors also consider the political affiliation of the mayor and the local electoral cycle. Through its analytical focus and main empirical findings, this article contributes to broadening the scope of empirical studies of municipal financial dependence. Simultaneously, it adds to existing literature in the field of political economy that accounts for public finances at the sub-national level     

Openness and the International allocation of foreign direct investment

This paper develops an ordinal index to measure the openness of FDI policy regimes for individual countries. There has been a generalised increase in the index between 1990 and 2002. The most important determinants of variations in FDI flows across countries and over time are country size, the level of educational achievement, and growth. The openness index is positively associated with FDI flows, but its explanatory power is low. Liberalising approval procedures and lifting requirements that foreign companies enter into joint ventures with domestic firms encourage FDI. We conclude that the openness of the FDI regime operates as a factor enabling FDI, but that location advantages are paramount in determining the international allocation of FDI. We also turn the question around and ask what countries are more likely to impose restrictions on FDI. We find that lower levels of education and larger domestic markets are associated with greater restrictions on FDI. In addition, there is some evidence that better institutions are associated with lower FDI restrictions.     

Single‐Image Rectification Technique in Forensic Science

Many researchers have been working in Spain to document the communal graves of those assassinated during the Spanish Civil War. This article shows the results obtained with two low‐cost photogrammetric techniques for the basic documentation of forensic studies. These low‐cost techniques are based on single‐image rectification and the correction of the original photo displacement due to the projection and perspective distortions introduced by the lens of the camera. The capability of image rectification is tested in an excavation in the village of Loma de Montija (Burgos, Spain). The results of both techniques are compared with the more accurate data obtained from a laser scanner system RIEGL LMS‐Z390i to evaluate the error in the lengths. The first technique uses a camera situated on a triangle‐shaped pole at a height of 5 m and the second positions the camera over the grave using a linearly actuated device. The first technique shows measurement errors less than 6%, whereas the second shows greater errors (between 8% and 14%) owing to the positioning of the carbon‐fiber cross on an uneven surface.     

Posttraumatic Stress Disorder: Protective and Risk Factors in 18 Survivors of a Plane Crash

The aim of this study is to identify protective and risk factors related to the development of posttraumatic stress disorder (PTSD) on a sample of survivors from a single plane crash. Eighteen survivors were examined 6 months following the event. The subjects all underwent psychiatric interviews, Clinician‐Administered PTSD Scale structured interviews, personality and cognitive tests. Only 38.9% of them presented with all of the symptoms of PTSD; 22.2% showed no symptoms for PTSD; remaining survivors exhibited emotional/affective symptoms related to the event. In addition to the severity of the traumatic event itself, other risk factors identified were the loss of a relative, the manifestation of depressive symptoms, and the severity of physical injuries sustained. Low levels of hostility and high levels of self‐efficacy represented protective factors against developing PTSD.     

The role of openness in explaining innovation performance in a regional context

We investigate the role of search strategy in shaping firms’ innovation performance. Firms use a wide range of external actors and sources to help them achieve and sustain innovation. In particular, the extension (breadth) and the relevance (depth) of such sources determine firms’ ability to extract and exploit knowledge and new ideas and, thus, to be innovative. Using a sample of firms in a regional context active in R&D, we built separate measures of breadth and depth for local (on a regional scale) and global (outside the regional context) search. This allows us to investigate whether localized or global knowledge spillovers are in place. We find that a wider set of partners increases coordination costs, while greater depth in search strategies contributes to innovation. We find that a more diversified search strategy at the local level (greater breadth of search) results in significant payoffs in terms of innovation, while diversifying the partnership with Italian partners has a smaller, although still positive, effect. In contrast, the benefits of depth of innovation are greatest at the global level. In addition, a broader set of information sources for R&D projects has a significant positive effect on innovation. Finally, firms that resort to R&D subsidies are less innovative.