Waiting for the wolf to bite: Civil society's view of the new World Bank presidency

The European Union Training Mission (EUTM) in Somalia, the EU’s mission to contribute to the training of the Somali Security Forces, was deployed in April 2010 and extended for another 12-month period in July 2011. Despite the positive assessment of the outcome of the first training period, the overall feebleness of Somalia’s Transitional Federal Government puts the political feasibility of the mission into question. EUTM Somalia can be subjected to many of the same criticisms as the liberal peacebuilding agenda in general for trying to contain rather than resolve conflict and maintaining a top-down perspective which ignores organic, indigenous local structures.     

Simulating the impact of regulation changes on the market for prostitution services

The paper draws on recent research on the economics of prostitution focussing on the role of stigma in shaping the interaction between demand and supply and the resulting sub-markets in which this activity is typically organised. Here we extend the framework to consider the role of reputation and stigma in determining policy decisions regarding the regulation of prostitution and show how sub-optimal outcomes (from the point of view of the welfare of sex workers) may prevail.     

Incomplete contracts and competition: another look at fisher body/general motors?

In this paper we analyze the problem of the enforcement of incomplete contracts with endogenous outside options. Some of the equilibria we outline may reverse one of the main results presented in the standard literature. We then revisit the literature on the highly debated Fisher Body/General Motors merger and suggest an explanation based on GM??s need to control the Fisher brothers?? outside options.     

Returns to Foreign Language Skills in a Developing Country: The Case of Turkey

This paper analyses the economic value of foreign languages in Turkey using data on some 6000 adult male wage-earners in 2007. We find positive earnings returns to proficiency in English and Russian, which increase with the level of competence. French and German skills are also positively rewarded, although their return seems mostly linked to the likelihood to hold specific occupations. In contrast, knowing Arabic does not generate an earnings premium. Focusing on English, we check for heterogeneous returns along the conditional earnings distribution. The results are qualitatively invariant when we account for misclassification errors in self-reported English skills.     

Liberal Democracy and Neoliberalism: A Critical Juxtaposition

In this essay I argue that neoliberalism is both an economic and a political doctrine and that its historical trajectory, both conceptual and political, especially in the United States, is better understood in relation to its complex relationship of affinity with liberal democracy. The intersection between liberal democracy and neoliberalism is thus better apprehended from the perspective of the separation of the economic and the political in capitalism and the relative autonomy that it structurally grants to each field of power. Liberal democracy has provided a depoliticized framework that nurtures neoliberalism, while providing it with a cloak of legitimacy. Stated somewhat differently, the historical trajectory of liberal democracy, as a theory and as a practice of power, betrays an anti-democratic tendency that leads to depoliticization and has quelled the democratic politics that once gave credence to it, thus paving the way for the rise of neoliberalism.