RUNAWAY BUREAUCRACY AND CONGRESSIONAL OVERSIGHT: WHY REFORMS FAIL

Attempts to reign-in runaway regulatory bureaucracy fail because the bureaucracy has all the important resources. The bureaucracy also holds the upper hand in policy-making because Congress has neither the time nor inclination to effect legislative control and oversight. The authors examine the travails of the Federal Trade Commission during the 1970s to show the blurred distinction between bureaucratic autonomy and legislative control.     

A Case for Public Service Work

The authors wish to acknowledge the contributions of the following persons: the Honorable Harris H. Agnew, Associate Circuit Judge, Seventeenth Judicial Circuit, Winnebago County, Ill.; Robert L. Bingham, MSS, Supervisor, Juvenile Probation Division; and Richard Sink, Director, Winnebago County, Illinois Public Service Work Program.     

China and the middle-income trap: toward a Post Washington,Post Beijing Consensus

Abstract

Over the last 30 years, China has experienced tremendous growth, with many commentators attributing the rapid development to the ‘China Model’ (CM) or the ‘Beijing Consensus’ (BC). However, in recent years growth has slowed and an ever-increasing number of bears are predicting a financial crisis, economic collapse, and a very hard landing, perhaps even a lost decade a la Japan. All of this has led to heated debate about whether the CM is now exhausted, whether China is caught in ‘the middle-income trap’ (MIT) and whether a new model is needed for the next phase of development where China attempts the difficult transition from middle-income country to high-income country status. This article addresses the following five sets of issues. First, is there a CM or BC? If so, what does it entail, and does it differ from the model followed by other successful countries in East Asia? Second, is there a MIT? Is China stuck in the MIT or perhaps multiple MITs? Third, what adjustments to the economic model are required for China to continue its long march toward becoming a high-income country? Fourth, are political, legal and social reforms also required? If so, will all reforms proceed simultaneously or are reforms likely to be sequenced, with adjustments to the economy preceding reforms in other areas? Fifth, is there now a global convergence on a new model of development for developing countries – a Post-Washington, Post-Beijing Consensus?     

Reforming the French welfare state: Solidarity,social exclusion and the three crises of citizenship

The article explores recent debates about citizenship and social provision in France. It examines the essential concepts comparable to ‘social citizenship’, as understood in British debates, and the role that they have played in the development of the French welfare state. Its conclusions are threefold. First, social provision in France is founded on the principle of solidarité, which holds that all citizens face a series of social risks (unemployment and illness) that make them dependent on one another. Second, as the traditional insurance principle (the core of the French welfare state) is founded on socio‐economic conditions (concerning the nature of social interdependence and social risk) that no longer exist, the emergence of these social ills has led to not one but three crises of citizenship: a crisis of coverage, of legitimacy and of participation. Third, while it is too early to draw definitive conclusions, recent policy reforms suggest that the difficulties faced by French welfare are encouraging moves towards the British model of tax‐based (rather than insurance‐based) financing of social provision.     

Livestock and Private Tree Holdings in Rural Ethiopia: The Effects of Collective Action Institutions,Tenure Security and Market Access

This article uses househld panel data spanning the period 2000–2007 to test hypotheses from the literature that secure land tenure, market access and collective action promote accumulation of private capital assets in rural highland Ethiopia. The three natural capital assets analysed in the article, livestock, eucalyptus trees and non-eucalyptus trees on households’ farm plots, make up virtually 100 per cent of privately held disposable assets. Incomes and capital stocks are extremely low and constant and tree assets are at least as important as livestock. We find that collective action and secure land tenure have strong positive effects on accumulation of livestock and other trees, but not eucalyptus. We also find evidence that market access promotes eucalyptus holdings and that other types of wealth tend to be positively associated with private natural capital stocks.     

The Unanimous Voting Rule is not the Political Equivalent to Market Exchange

The unanimous voting rule is often viewed as analogous tovoluntary market exchange. This paper demonstrates that whenthird-party pecuniary effects exist, this analogy breaks downbecause unlike markets, unanimous voting requires compensationfor these effects. Thus, efficient market outcomes typically willbe rejected by the unanimous voting rule. Even when transactionscosts are low enough to make compensation feasible, the political outcome under unanimity will differ from the market outcome. The distributional effects of unanimityprovide the incentive for people to substitute rent-seekingbehavior for productive activity, and reduce the incentive forproductive change, providing additional reasons why a less-than-unanimous voting rule may be optimal when resources are to beallocated politically.