Creating the Financial Stability Forum: What Role for Existing Institutions?

The Financial Stability Forum (FSF)—now rebranded as the Financial Stability Board (FSB)—has become a focal point for financial regulatory initiatives in the aftermath of the 2008 Global Financial Crisis. Despite its central status, the body has received little attention from scholars. This is particularly striking both in light of the increasing centrality of the FSF/FSB within the realm of financial regulatory governance and the body's unusual structure and composition. Indeed, the creation and design of the FSF pose an empirical puzzle: what explains the creation of a new, informal and loosely structured institution and the centre of a financial regulatory governance regime? At the time of the Forum's creation, the broader financial architecture was marked by significant institutional density, with a large number of international organisations engaged in governance activities. This paper argues that it is precisely the structure and activities of these existing institutions, particularly the International Monetary Fund, the Bank for International Settlements and the Joint Forum on Financial Conglomerates, which account for the creation and design of the FSF, and points to the need for scholars to take seriously the role of organisations operating within institutionally dense spaces.     

The twin faces of public sector design

Design thinking has become a popular approach for governments around the world seeking to address complex governance challenges. It offers novel techniques and speaks to broader questions of who governs, how they govern, and the limits of rational instrumentalism in policy making. Juxtaposing design thinking with an older tradition of policy design, this article offers the first critical analysis of the application of design thinking to policy making. It argues that design thinking does not sufficiently account for the political and organizational contexts of policy work. Design thinking also errs in universally privileging one particular policy style over others, and fails to account for the reality of policy mixes. Despite these deficiencies, it is argued that design thinking can inform and enrich governance by helping policy designers produce more adaptable designs, better appreciate the behavioral dynamics of public sector design, and leverage networked approaches to social problem solving.     

A Simple Distribution-Free Test for Nonnested Model Selection

e-mail: kevin.clarke{at}rochester.edu This paper considers a simple distribution-free test for nonnestedmodel selection. The new test is shown to be asymptoticallymore efficient than the well-known Vuong test when the distributionof individual log-likelihood ratios is highly peaked. MonteCarlo results demonstrate that for many applied research situations,this distribution is indeed highly peaked. The simulation furtherdemonstrates that the proposed test has greater power than theVuong test under these conditions. The substantive applicationaddresses the effect of domestic political institutions on foreignpolicy decision making. Do domestic institutions have effectsbecause they hold political leaders accountable, or do theysimply promote political norms that shape elite bargaining behavior?The results indicate that the latter model has greater explanatorypower. Authors' note: This work was supported by National Science FoundationGrant SES-0213771. I thank Paul K. Huth and Todd L. Allee forgraciously sharing their data and code. I also thank Bear Braumoeller,Curtis Signorino, Tasos Kalandrakis, participants in the NorthEastMethodology Program, New York University, 2003, and the reviewersfor their comments. Errors remain my own. Supplementary materialsare available on the Political Analysis Web site.     

Shielding the Republic: Barack Obama and the Jeffersonian Tradition of American Foreign Policy

President Barack Obama’s foreign policy has confounded critics from both the left and right in American politics. This analysis argues that this is because Obama’s foreign policy exhibits affinities with the least prominent of the four traditions of American foreign policy identified by Walter Russell Mead: the Jeffersonian tradition. In contrast to the more prominent Wilsonian and Hamiltonian traditions, the Jeffersonian tradition exhibits more introverted tendencies that seek to perfect and protect rather than export the virtues of the Republic. The Jeffersonian understanding of foreign policy is, in Walter Lippman’s phrase, primarily the “shield of the republic.” This analysis tracks the influence and implications of this perspective through examination of the Obama Administration’s approach to two prominent foreign policy challenges after 2008: intervention in Libya and the ongoing Syrian crisis.     

Reading in Community,Reading for Community: A Survey of Book Clubs in Regional Australia

Worries about weakening community are central to assessments of modern Australia, yet it is easy to overlook the everyday ways we “do” and participate in community life. Book clubs are one area of community participation largely ignored by researchers despite the local and national proliferation of such clubs. Surveying twenty-two book groups and ninety-seven book club members, this study investigates the roles that book clubs play in the cultural and community life of a regional area of Tasmania. The results show that book clubs promote regular intellectual engagement and provide for a distinct female sociality that consolidates and creates new social connections and function as everyday “escape attempts” from the obligations of work and family. We suggest that the support and development of local book club programs may have considerable potential as a strategy for Australian governments and communities to foster a sense of community.