The Reputational Impact of Investor-State Disputes

To what extent do alleged violations of international commitments damage state reputation? This article explore this question with specific reference to investor-state disputes arising under the protection of international investment agreements. Its main contributions are threefold. First, building on the political institutions literature, the study places the theoretical importance of information about the rules of the game, and the actions of the participants at the center of analysis. Second, in contrast to prior empirical research, the study systematically analyzes the costs of state involvement in investment treaty arbitration by examining all known disputes. Third, the study addresses the impact of investment disputes on both foreign investment flows and state reputational rankings. We show that the consequences of investment disputes vary with the transparency of the investor-state dispute settlement process. The central implication of these findings for the broader body of literature on international institutions is that reputational mechanisms for effective treaty enforcement cannot be taken as given but instead need to be explored on the basis of a nuanced approach that addresses the pivotal issues of institutional design and information costs.     

Elite Influence? Religion and the Electoral Success of the Nazis

In Weimar Germany, the Catholic Church vehemently warned ordinary parishioners about the dangers of extremist parties. We establish that constituencies' religious composition is a key empirical predictor of Nazi vote shares—dwarfing the explanatory power of any other demographic or socioeconomic variable. Even after carefully accounting for observational differences, Catholics were far less likely to vote for the NSDAP than their Protestant counterparts. The evidence suggests that this disparity was, in large part, due to the sway of the Catholic Church and its dignitaries. At the same time, we show that attempts to immunize Catholics against the radical left failed to achieve the desired result. To explain the puzzling asymmetry in the Church's influence at the ballot box, we develop a simple theoretical framework of elite influence in electoral politics.     

Complex Contracting: Management Challenges and Solutions

Governments at all levels buy mission‐critical goods and services whose attributes and performance requirements are hard to define and produce. Many governments—and the public managers who lead them—lack experience and knowledge about how to contract for complex products. The contract management counsel provided to public managers is thin. Missing is a conceptual managerial framework to guide purchasing the complex products that are often so critical to public organizations' core missions. Drawing on perspectives from across the social sciences, the framework presented in this article provides guidance on how managers can harness the upsides of complex contracting while avoiding its pitfalls. The framework helps identify conditions that increase the likelihood of positive outcomes for the purchasing government and the vendor—the win‐win. To illustrate the framework, the article provides examples of successful and failed acquisitions for complex products such as transportation projects, social service systems, and information technology systems.     

The Future of Leadership in Public Universities: Is Shared Leadership the Answer?

Leadership of public universities has come under fire—from scandals, from funding, from students, from every direction. Top‐down leadership of institutions of higher education has been described as a “disease.” Shared governance—a mechanism of faculty representation in the leadership and decision‐making processes—a seeming alternative, has been described as “a recipe for paralysis.” In this article, the authors proffer shared leadership as a potential elixir for leading public institutions of higher learning, unleashing creative potential, focusing on pressing strategic imperatives, and enabling sustainable systems that leverage true talent to maximum effect. It is time to move beyond the moribund myth of top‐down heroic leadership and beyond the bureaucratic, political quagmire of the current state of affairs in shared governance. Is shared leadership the answer?      

Are Tax Havens Good Neighbours? FDI Spillovers and Developing Countries

Abstract

This paper investigates the impact of tax havens on non-tax haven countries in terms of foreign direct investment (FDI). We analyze the importance of agglomeration effects by including FDI inflow levels in tax havens and capture geographic spillovers by measuring proximity to the nearest tax haven. Our analysis yields several interesting findings. First, using panel data for 142 countries, we find evidence of positive spillovers from tax havens to nearby developing countries, but not to nearby developed countries. Second, restricting our panel to developing countries, we find the positive effect of tax haven FDI on developing countries to be robust. Third, we find that geographic distance matters for financial flows: developing countries which are the closest to a nearby tax haven benefit the most in terms of FDI inflows. This result is robust to accounting for spatial interdependence of FDI.     

Estimating the Effects of Conflict on Education in Côte d’Ivoire

Abstract

This article evaluates the effect of armed conflict on years of schooling in Côte d’Ivoire. We combine differences in conflict intensity across departments and differences across age cohorts to identify an individual’s indirect exposure to conflict. The difference-in-difference outcomes indicate that the average years of education for a school-going-age cohort is 0.94 years fewer compared to an older cohort in conflict-affected regions. We further use a set of victimisation indicators to identify the direct effect of conflict. Overall, the findings across different models suggest a drop in average years of education by a range of 0.2 to 0.9 fewer years. The estimated effect is larger for males and individuals between 19 and 22 years of age.     

INSTITUTIONAL LAYERING IN GOVERNING HEALTHCARE QUALITY

Since the 1980s, regulated markets and New Public Management have been introduced in the public sector across the world. How they have affected existing governance mechanisms such as self‐regulation and state regulation has remained largely unexplored, however. This article examines the origins and consequences of institutional layering in governing healthcare quality. Dutch health care, where a market‐based system has been introduced, is used as a case study. The results show that this market‐based system did not replace but modified existing institutional arrangements. As a result, hospitals have to deal with the fragmentation of quality demands. Using the concept of institutional layering, this study shows how different arrangements interact. As a consequence, the introduction of a certain policy reform will work out differently in different countries and policy sectors. Our ‘archaeological’ study in this layering can be seen as an example of how such incremental change can be studied in detail.     

The Challenges to Cooperation Posed by the Nexus of Terrorism and Organized Crime: Comparing the Situations Between the Andean and the Sahel Regions

The recent conflict in the Sahel area is another case where the nexus of terrorism and organized crime causes challenges to the international community. Comparing the situation with that of the Andean region brings forth the challenges faced when dealing with this type of conflict: the states’ weak presence in the remote regions, the insurgents’ ability to offer income and “security” to the people, immediate threat to international investments, unresolved political/regional issues, the marriage of convenience of insurgents/terrorists and organized crime, internal divisions of the insurgent groups and also ideologies surviving or suffering after the elimination of their leaders.