Society, community, and economic development

Studies of economic development and economic history have long been concerned with the relationship between the transparent and supposedly anonymous forces of markets, rules, and bureaucracies, on the one hand, and membership in groups, such as local communities, associations, or networks on the other. Economists are quite divided about these latter forces: for some, they are necessary underpinnings for the market, providing trust and social capital which in turn reduce transaction costs and moral hazards and hence promote development; for most, they are seen as archaic, leading to nepotism, rent seeking, and institutional rigidity. Indeed, throughout the social sciences, there is an opposition between the roles assigned to what may be called the “societal” and the “communitarian” bases of social and economic development. But each position in this theoretical standoff underestimates the contributions of either society or community to economic development. This is because both society and community have potentially positive and negative effects; together, however, they can act as mutual checks and balances on their potentially negative effects, while reinforcing the positive contributions of each to economic efficiency. Different levels and types of society and community, in interaction, define complex contexts of choice and incentives in economic development, and allow us to see more clearly the basis of different institutional configurations in relationship to development. Michael Storper is professor of regional and international development in the School of Public Affairs at UCLA; professor of economic geography at the London School of Economics; and professor of economic sociology at the Institut d’Etudes Politiques (“Sciences Po”) in Paris. He received his Ph.D. from UC Berkeley.     

Alternative Methods of Experience Rating Unemployment Insurance Employer Taxes

For most states the methodology used for assigning Unemployment Insurance tax rates to employers arose when the program was first established in 1935. More than 80 years later, with evolving employment relationships, state systems have become outmoded. This paper critiques current experience rating methods and presents new methodologies that are much easier to operate and that improve the incentives for employers to increase employment. The proposed methods would assess taxes based on employment or payroll variation such that growing firms would have lower taxes. A simulation analysis illustrates the impact of the new methods on employer groups.     

Communitarian Bioethics: Three Case Studies

In recent years, communitarianism has turned bioethics away from an overwhelming emphasis on liberal individualism. Growing emphasis on the common good has created no few dilemmas for medical practitioners used to weighing the interests of their patients above all else. Three cases exemplify the conflict between community and individual interests. The first is the Israel Patient Rights Act (IPRA), a first of its kind statute that allows hospital ethics committees to impose lifesaving treatment on competent patients who refuse medical care. The second case investigates the medical treatment of wounded soldiers and suggests that community based obligations may, in some circumstances, allow physicians to give priority to treating compatriots over non-compatriots. The last case discusses force feeding political detainees. While many physicians are resolved to preserve a hunger striker’s right to refuse food, many state governments are equally resolved to feed them. Hunger striking sets the stage for a classic battle between respect for autonomy and concerns about the public welfare that communitarian principles can help resolve.