Budget Process Reform: Waiting for Godot

The unraveling of the budget process described by Irene Rubin will have extraordinary consequences for the long-term budget outlook facing the nation. The retirement of the baby boom generation will prompt unprecedented and unsustainable structural fiscal imbalances for decades to come. Early policy action on the spending and revenue sides of the budget is critical to avert fiscal and economic crisis and to phase in changes in order to avoid precipitous and politically perilous actions in the future. Yet such actions constitute what amounts to a politically unnatural act, as one generation of political leaders is asked to make sacrifices in current policies benefiting future generations. Budget process reforms can serve to highlight the salience of these issues and help deal with the significant political hurdles faced by decision makers in making these intertemporal budgeting trade-offs. Ironically, the need for budget rules and processes has intensified as policy makers have become more vulnerable to polarized political parties, ever more watchful media, and mobilized interest groups. Budget rules and processes can help policy makers cope by protecting their ability to make the hard choices that will be necessary. The pressures for budget process reform will accelerate as the current financial crisis increases near-term budgetary pressures, promoting greater alignment between near-term and long-term fiscal problems.     

Reforming China's Stock Market: Institutional Change Chinese Style

In this article we examine the dual-track pricing system in China's stock market since its inauguration, a legacy of its economic transition and a major source of institutional predation in the market. We then examine the share structure reform initiated in 2005 that sought to eliminate the distortion this predation had elicited. We interpret the reform push as a process of institutional change and focus on the drivers and theoretical explanations of such changes in China's stock market. We thus advance a model for understanding institutional change, Chinese style. We argue that, initially, the institutional arrangement was constructed by the dynamics of transition – the juxtaposition of the Leninist state and the emerging stock market. This provided huge incentives for state corruption in the emerging market. As the market transition proceeded, the societal and political costs of corruption and market distortion also grew, which produced a crisis that eventually attracted the attention of powerful leaders of the party state. We argue from this case that the broader political context in which specific examples of institutional change occur needs to be examined. Specifically, we argue that powerful agents who are external to given institutional environments can play an important role in institutional change, thus highlighting the political dynamics of an authoritarian state amid systemic transition and global integration.     

Political economy of crime and punishment under Stalin

Why do dictatorships favor harsher punishments than democracies? We use a rational choice approach to explain the stylized facts of Stalin’s dictatorship—preference for harsh sanctions, higher incarceration rates, greater use of capital punishment, low tolerance for theft of state property and workplace violations. They are shown to be explained by the preferences of a rational dictator, who does not internalize the social and private cost of punishment.     

Misogyny,Dionysianism and a new model of Greek tragedy

The subject of misogyny in Greek culture is widely recognized as of capital importance in understanding our attitude towards women as well as the general culture context within which that attitude is framed. Yet despite the obvious importance of this subject there has been little attention given to the way misogyny in fifth‐centry Athens was an integral part of its greatest art form, the tragic drama. Only when a model of tragedy is developed which accounts for the typological opposition between the male “tragic hero” and Dionysus will it be possible to understand how women function within this particular literary genre as the essential “other” of repressive male consciousness.