An income-related loans proposal for drought relief for farm businesses

In 2004 the Commonwealth government is undertaking a review of its drought policy. This follows expenditure in excess of $1 billion on drought relief during 2002 and 2003 and comes only a decade after similarly large expenditure on support for farmers during the drought of the 1990s. Drought support for farm businesses has been provided within the framework of the National Drought Policy (NDP) agreed by Commonwealth and state governments in 1992 and at present is in the form of interest rate subsidies. This article suggests an alternative form of drought relief for farm businesses based on the Higher Education Contribution Scheme, which is more equitable between farmers, less regressive in its impact on tax payers and less open to politicisation.     

Common law environmentalism

The necessity to control environmental externalities is almost invariably given as justification for command-and-control regulation and other forms of state intervention in related markets. When even mentioned, common law remedies that protected environmental rights for centuries are quickly dismissed as either being unworkable or ineffective. A review of the common law experience indicates that the rule of law can be effective in protecting environmental rights. Indeed, it is quite possible that common law was too effective, which led to special interest demand for statute law. The rule of politics may be more attractive to rent seekers than the rule of law and markets.     

Contracting–out social services

Abstract: Despite the enormous share of social services in government spending and the strong incentives on government to rationalize services, the alternative service delivery (asd) literature has given little attention to social–service delivery. In our paper, we review current approaches taken to social–service delivery in Ontario by the Ministry of Community and Social Services (mcss). Although the mcss retains responsibility for the social–services system, it provides social services almost exclusively through private non–profit agencies under purchase of service contracts. Two themes emerge from our examination of these relationships. First, the standard privatization model has limited application to social–services delivery. Contracts are generally not awarded in a competitive fashion, and contract termination discipline is rarely applied. Given the inadequacies of current performance measures for social services, monitoring contract performance is difficult. Second, the success of attempts to shift provision to private non–governmental entities is intimately linked to the effectiveness of accountability mechanisms, especially outcome–based performance measures. Improving performance measurement is therefore an important priority. In addition to advocating further research into the effectiveness of social services, one interesting mcss initiative has been to look to client communities to help monitor the performance of agencies. We conclude that among the different institutional approaches to social–service delivery, contracting with non–profits is the one that currently seem most appropriate. Sommaire: Malgré la part énorme des dépenses gouvernementales consacrée aux services sociaux et malgré les efforts gouvemementaux pour rationaliser les services, les ouvrages publiés sur la prestation de services par des moyens de rechange n'ont consacré que peu d'attention à la prestation des services sociaux. Nous examinons dam cet article les méthodes adoptées pour la prestation des services sociaux en Ontario par le ministére des Services sociaux et communautaires (mssc). Même s'il retient la responsabilité du réseau des services sociaux, le mssc foumit les services sociaux presque exclusivement par I'intermédiaire d'organismes privés à but non lucratif, en vertu de contrats d'achat de services. En examinant ces rapports, nous en dégageons deux thémes. Premiérement, le modéle de privatisation standard ne s'applique que de maniére limitée à la prestation des services sociaux. Les contrats ne sont généralement pas accordés de maniére concurrentielle, et on n'utilise que rarement la résiliation de contrats en tant que mesure disciplinaire. II est difficile de surveiller la qualité d'exécution des contrats, vu l'insuffisance des mesures de rende–ment actuelles concernant les services sociaux. Deuxièmement, le transfert de I'exé–cution aux organismes privés non gouvernementaux ne peut réussir qu'en présence de mécanismes de responsabilisation adéquats, et en particulier de moyens permet–tant de mesurer le rendement en fonction des résultats obtenus. I1 importe donc d'améliorer les moyens de mesure du rendement. Selon le mssc, en plus des recher–ches suppéementaires concernant l'efficacite des services sociaux, il faut faire appel aux groupes de clients pour aider À surveiller le rendement des organismes. En conclusion, parmi les diverses méthodes institutionnelles de prestation des services sociaux, la sous–traitance faisant appel aux secteurs à but non lucratif semble çtre aujourd'hui la plus appropriwaee. [I]t is no exaggeration to say the state and local governments tend not to know what results their social service contracts are buying. Because competition is low, they have little opportunity to test the market to see what alternatives they have. Few resources are spent to look past what contractors themselves report. The political system has few incentives to dig deeper and many more incentives to maintain the status quo— The problems with oversight underline earlier observations: whatever advantages contracting–out for social services might produce, greater efficiency through market–tested competition is not one of them. State and local governments are engaging in the equivalent of a shopping trip while blindfolded, with little effort spent to squeeze the tomatoes or thump the watermelons     

The Quality of Terror

I present a model of the interaction between a government, a terrorist organization, and potential terrorist volunteers in which, as a result of an endogenous choice, individuals with low ability or little education are most likely to volunteer to join the terrorist organization. However, the terrorist organization screens the volunteers for quality. Consequently, the model is consistent with two seemingly contradictory empirical findings. Actual terrorist operatives are not poor or lacking in education. And yet lack of economic opportunity and recessionary economies are positively correlated with terrorism. The model also endogenizes the effect of government counterterrorism on mobilization. Government crackdowns have competing effects on mobilization: they decrease the ability of terrorists to carry out effective attacks (making mobilization less attractive), and they foment ideological opposition to the government and impose negative economic externalities (making mobilization more attractive). This provides conditions under which government crackdowns increase or decrease mobilization.     

Who are the Darfurians? Arab and African identities, violence and external engagement

This article examines processes of identity formation in Darfur,now part of the Republic of Sudan, over the last four centuries.The basic story is of four overlapping processes of identityformation, each of them primarily associated with a differentperiod in the region's history: namely, the ‘Sudanic identities’associated with the Dar Fur sultanate, Islamic identities, theadministrative tribalism associated with the twentieth-centurySudanese state, and the recent polarization of ‘Arab’and ‘African’ identities, associated with new formsof external intrusion and internal violence. It is a story thatemphasizes the much-neglected east-west axis of Sudanese identity,arguably as important as the north-south axis, and redeems theneglect of Darfur as a separate and important locus for stateformation in northern Sudan, paralleling and competing withthe Nile Valley states. It focuses on the incapacity of boththe modern Sudanese state and international actors to comprehendthe singularities of Darfur, accusing much Sudanese historiographyof ‘Nilocentrism’, namely, the use of analyticalterms derived from the experience of the Nile Valley to applyto Darfur.