The political economy of centralization and the European Community

Since 1972, the share of central government expenditure in total public expenditure has continued to increase in most industrial countries. In an international cross-section analysis, it has a significant positive effect on the share of government spending in GDP. The actors who have an interest in centralization are analyzed. The dynamics of centralization are attributed to a response asymmetry and two thresholds. “Popitz' law” of the attraction of the larger budget is tested with respect to the EC Commission: high-ranking politicians come mainly from the smaller member states. The voters' attitudes toward European unification are analyzed in a pooled regression. Ten years hence, 80% of our economic legislation, and perhaps even our fiscal and social legislation as well, will be of Community origin (Jacques Delors, Debates of the European Parliament, 6 July, 1988, No. 2-367/140).     

Managing Competing Values: Leadership Styles of Mayors and CEOs

The mayor and CEO play an important complementary role in local economic and community development. As the head of the elected council the mayor has a close working relationship with the CEO of the council organisation. Each has the opportunity to influence the policy and administration functions of council. The quality of their working relationship influences the quality of local governance in their community. In this study 413 pairs of Australian mayors and CEOs responded to metaphors assessing the effectiveness of their working relationship with each other. They also completed Cameron's Management Skills Assessment Instrument. Effective working relationships are more likely to occur when their managerial style complements or is the same as the other, on Cameron and Quinn's Competing Values Framework. The implications for CEOs are discussed along with strategies for enhancing the working relationship with their mayor.     

Border tax adjustment: a feasible way to support stringent emission trading

CO₂ emission allowances help to internalise effects of fossil fuel consumption on global climate and sea levels. However, consumption, production and investment decisions do not reach the optimal allocation when the scheme is only implemented in some countries. Production with inefficient facilities in non-participating countries may even increase. Border tax adjustment (BTA) for costs incurred from procuring CO₂ emission allowances reduces the leakage. We show that BTA can be both feasible and compatible with World Trade Organization (WTO) constraints. Practicable implementability requires a focus on CO₂ emissions from certain processed materials and a separate treatment of electric energy input.      

The communicative impact of terrorist attacks on the financial marketplace: a perspective from the efficient market hypothesis

This study measures patterns following a terrorist attack, from the perspective of market efficiency, to determine the communicative impact of terrorist attacks on the financial marketplace. The Efficient Market Hypothesis postulates that asset prices fully reflect all available information. An important implication is that, because market price changes are determined by new information (or variations in discount rates), it would be highly difficult to “beat the market” with expert stock selection or market timing. Overall, we found that, based on mixed results, terrorist attacks do not lead to a distinguishable pattern in the financial marketplace. Nevertheless, drawing on the Yale Model of Persuasion, these results suggest that terrorists are effective in their communicative goals, and they do lead to a compelling pattern in the proportion of negative returns on the day of the attack. More precisely, terrorists are able to communicate their message on a global scale, thereby resulting in investors adjusting their estimates of value downward. While a possible price correction pattern was found, the lack of statistical analysis performed on the variables, to a certain degree of significance, is a limitation of this study that ultimately renders the results of the study inconclusive.

     

Shadow peacebuilders and diplomatic counterinsurgencies: informal networks,knowledge production and the art of policy-shaping

ABSTRACT

This article explores the role of informal networks in producing strategic knowledge and influencing policy responses to the 2011 post-election crisis in Bosnia-Herzegovina. The analytical focus is on networks of shadow peacebuilders, defined as actors who are often not visible to the public and who promote a mix of altruistic and personal interests of their broader network by generating strategic narratives and influencing peacebuilding policy. As this article shows, shadow peacebuilders engage in diplomatic counterinsurgencies waged by means of diplomacy, politics, public relations and legal means. Strategic narratives are instrumental in legitimizing diplomatic counterinsurgency, inducing internal cohesion within the network and delegitimizing alternative narratives and policy solutions. Yet the production of strategic knowledge by shadow peacebuilders has its limitations. When the gap between strategic narrative and actions becomes too big, the network risks fragmentation and defeat by other networks that promote alternative strategic narratives and paths of action in the battle over control of peacebuilding policy.     

Book Reviews

Arabs and Islam in Uzbekistan. History of Middle (Central) Asia from the ruling dynasties to today Buribai Ahmedov and Zahidulla Munavvarov Nematulla Ibrahimov (editor) Beirut‐Lebanon: Sharikat al‐matbu at li al‐Tawzi va al‐Nashr, 1996, 464 pp (in Arabic)

Central Asia: Conflict or Stability and Development Shirin Akiner London: Minority Rights Group, 1997, 51 pp ISBN 1 897693 36 2, £4.95

Uzbekistan: The Golden Road to Samarkand Calum Macleod and Bradley Mayhew Hong Kong: Odyssey Guides/London: Hi Marketing Ltd/Lincolnwood, Illinois, US: Odyssey Passport, 1997, 328 pp, Illus, £14.95, A$29.95

Bihzad: Master of Persian Painting Ebadollah Bahari London: I. B. Tauris, 1996, 272 pp, index, illus. £65

Traditional Jewelry of India Oppi Untracht London: Thames and Hudson, New York: Harry N. Abrams, Inc, 1977, 431 pp., Illus, Biblio, Index, £55

Security Politics in the Commonwealth of Independent States: The Southern Belt Mehdi Mozaffari (ed.) New York: St. Martin's Press, 1997, xiv, 234 pp., £42.60

Minorities, Mullahs and Modernity: Reshaping Community in the Former Soviet Union Mark Saroyan (Edward W. Walker, ed.), with Gail W. Lapidus Berkeley, California: International and Area Studies, Research Series, No. 95, 1997, 231 pp., $22.95

Energy Choices in the Near Abroad: The Haves and Have‐Nots Face the Future Robert E. Ebel Washington, DC: Center for Strategic and International Studies, 1997, VII, 376 pp., $39.95