An income-related loans proposal for drought relief for farm businesses

In 2004 the Commonwealth government is undertaking a review of its drought policy. This follows expenditure in excess of $1 billion on drought relief during 2002 and 2003 and comes only a decade after similarly large expenditure on support for farmers during the drought of the 1990s. Drought support for farm businesses has been provided within the framework of the National Drought Policy (NDP) agreed by Commonwealth and state governments in 1992 and at present is in the form of interest rate subsidies. This article suggests an alternative form of drought relief for farm businesses based on the Higher Education Contribution Scheme, which is more equitable between farmers, less regressive in its impact on tax payers and less open to politicisation.     

Tinpots,Totalitarians (and Democrats): An Empirical Investigation of the Effects of Economic Growth on Civil Liberties and Political Rights

Ronald Wintrobe (1990, 1998) has recently provided atheoretical foundation for estimating equations that attemptto explain the dependence of civil liberties and politicalrights in non-democratic regimes on the history of economicgrowth. This theory suggests that data from different kinds ofnon-democratic countries should not be pooled without allowingcoefficients to vary with regime type. It also placesinteresting restrictions on the signs of the coefficients ofeconomic growth in equations explaining freedom in the typesof regimes Wintrobe identifies. In this paper, we employ theserestrictions to test Wintrobe's theory. Some additionalhypotheses about the difference between democratic andnon-democratic regimes and about the role of education, notconsidered by Wintrobe, are also investigated.The results indicate clearly that the relationship between thedegree of freedom – as measured by the sum of the Gastilindexes of civil liberties and political rights – andeconomic growth varies significantly across all types ofregimes. Totalitarians (that attempt to maximize power) areclearly different than tinpots (that just attempt to maintainpower) in this respect, and non-democratic regimes differ fromdemocracies. Other aspects of the theory are partiallyconfirmed. In particular, in totalitarian regimes, positivegrowth reduces freedom, and negative growth increases it insome specifications. The theory predicts the opposite patternfor tinpots, and we do find that negative growth reducesfreedom in tinpot regimes. However, positive growth in tinpotsalso appears to reduce freedom in some cases, which is not inaccord with the theory. Secondary schooling has a positive effect on freedom, as inprevious empirical work, a result that is shown here to holdeven when each type of regime is considered separately. Butthe effect of primary schooling is different: in tinpot andtotalitarian regimes, but not in democracies, primaryschooling is associated with reduced freedom.     

The dragon as demon: images of China on Capitol Hill

In congressional debate on China‐related issues, alliances of partisans of single issues of high symbolic significance to some Americans insist vocally on strongly negative views of China that often caricature a complex society and foster unconstructive moralizing rather than analysis of the problems that they address. By demonizing China they obstruct the formulation and maintenance of a coherent American policy toward China and weaken Congress' contribution to making US policy. Members of Congress who favor engagement and look to a future in which they hope economic and political reform will grow in a China benefited by trade, foreign investment, and a peaceful international environment cannot display the moral certainty affected in congressional debates by the most outspoken critics. A variety of reasons underlie the demonizing of China in Congress, including some ignorance (willful or not) and reliance on lobbyists and poorly informed staff. Distorted images deform the contribution that Congress makes to the formulation of US China policy and cloud the perceptions of China held by some members and, derivatively, by many of their constituents among the American people.     

Book reviews

Journal of Chinese Political Science -     

Common law environmentalism

The necessity to control environmental externalities is almost invariably given as justification for command-and-control regulation and other forms of state intervention in related markets. When even mentioned, common law remedies that protected environmental rights for centuries are quickly dismissed as either being unworkable or ineffective. A review of the common law experience indicates that the rule of law can be effective in protecting environmental rights. Indeed, it is quite possible that common law was too effective, which led to special interest demand for statute law. The rule of politics may be more attractive to rent seekers than the rule of law and markets.