Discovering the Dark Side of Power: The Principal’s Moral Hazard in Political-Bureaucratic Relations

Principal agent (PA) is among the most prominent concepts for analyzing the relationship between politics and bureaucracy. Nonethelesss, the inherent bias of PA scholars to attribute moral hazard almost exclusively to the agent, usually referred to as “bureaucratic drift”, requires re-examination. Building on the spare literature in which moral hazard of the principal is considered, this paper provides empirical evidence for a neglected aspect of the PA concept. Three cases of German regulatory agencies responsible for drug control, financial services and rail safety are analyzed in critical situations which were largely perceived as bureaucratic failures. The analysis reveals that a good deal of these failures, ranging from negligence to suppressing crucial information, has to be attributed to the political principal. This is called the dark side of power because the intention is to shift blame or to dodge political responsibility. Turning conventional PA reasoning upside down, the conclusion is that the principal’s moral hazard should be considered more routinely as a potential explanation for political-bureaucratic interactions.     

CARICOM states and the WTO dispute settlement system: the case for greater engagement

This paper examines the participation of member states of the Caribbean Community (CARICOM) in the World Trade Organisation (WTO)’s dispute settlement system and its associated negotiations. In so doing, it highlights the dispute settlement system’s important contribution to the WTO and the need for CARICOM member states to engage more actively with this aspect of the WTO’s work. The paper concludes by articulating some of the lessons learnt from CARICOM member states’ experiences to date and offering some concrete suggestions on how the region can improve its current record of engagement.     

The Political Cultures of Israel's Radical Right: Commentary on Ehud Sprinzak's The Ascendance of Israel's Radical Right∗

Between 1968 and 1974 Italy was subjected to an unusually virulent campaign of right‐wing terrorism and subversion. An illustrative episode associated with this so‐called ‘strategy of tension’, which was characterized by the systematic use of covert ‘false flag’ operations, was the 17 May 1973 grenade attack outside Milan police headquarters that resulted in four dead and over 40 injured. Although the perpetrator, Gianfranco Bertoli, claimed to be an ‘individualist anarchist’ and had in fact established contacts with certain anarchist and leftist groups, subsequent judicial investigations revealed that he had been an informant and infiltrator for the Italian military intelligence service, that he had long maintained links with various anti‐communist and neo‐fascist organizations, and that he apparently received ‘cover’ and some type of logistical support prior to the attack from one or more ‘international secret services’. Although many aspects of the crime still remain murky, in all probability Bertoli was an agent provocateur acting on behalf of clandestine, quasi‐official intelligence apparatuses rather than a solitary anarchist engaging in violent ‘propaganda of the deed’.     

THE CRITICAL CLIMATE AGENDA

The world set a goal in the Paris Agreement: to keep global warming within 1.5 degrees Celsius of preindustrial levels. The Intergovernmental Panel on Climate Change has explained why this is a valid goal. If global warming were to go higher than 1.5 degrees Celsius, this would jeopardize life on the planet with a potential multi-meter sea-level rise, the collapse of critical ecosystems, and the release of methane from thawing permafrost, possibly triggering runaway warming. Yet the world's current trajectory implies a catastrophic 2.7-degree- Celsius increase in global temperature.