Justice and Culture: Rawls, Sen, Nussbaum and O'Neill

Is it possible, in a multicultural world, to hold all societies to a common standard of decency that is both high enough to protect basic human interests, and yet not biased in the direction of particular cultural values? We examine the recent work of four liberals – John Rawls, Amartya Sen, Martha Nussbaum and Onora O'Neill – to see whether any of them has given a successful answer to this question. For Rawls, the decency standard is set by reference to an idea of basic human rights that we argue offers too little protection to members of non-liberal societies. Sen and Nussbaum both employ the idea of human capabilities, but in interestingly different ways: for Sen the problems are how to weight different capabilities, and how to decide which are basic, whereas for Nussbaum the difficulty is that her favoured list of capabilities depends on an appeal to autonomy that is unlikely to be acceptable to non-liberal cultures. O'Neill rejects a rights-based approach in favour of a neo-Kantian position that asks which principles of action people everywhere could consent to, but this also may be too weak in the face of cultural diversity. We conclude that liberals need to argue both for a minimum decency standard and for the full set of liberal rights as the best guarantors of that standard over time.     

Transparency, Democratic Accountability, and the Economic Consequences of Monetary Institutions

Debates about the appropriate mix between autonomy and accountability of bureaucrats are relevant to numerous areas of government action. I examine whether there is evidence of a tradeoff between transparency, democratic accountability, and the gains from monetary delegation. I begin by presenting a simple theoretical model which suggests that central banks that are transparent, in the sense of publishing their macroeconomic forecasts, will find it easier to acquire a reputation. Despite making central banks more subject to outside scrutiny then, monetary transparency can lead to improved economic outcomes. I also consider arguments about the effect of accountability provisions involving parliamentary oversight and control over central bankers. The article then uses a new data set to examine these issues empirically, focusing on a natural experiment involving disinflation costs under different central banking institutions during the 1990s. Results suggest that countries with more transparent central banks face lower costs of disinflation while accountability provisions have no clear effect on disinflation costs. My results also concord with earlier findings that the effect of monetary institutions is conditional on other features of the political environment.     

Risk and the Outsourcing of Risk Management Services: The Case of Claims Management

Outsourcing of risk management activities is a well-established practice, involving a range of services from actuarial audits to loss control training to risk financing management to claims administration services. Surprisingly, little work has been done to examine the risks associated with outsourcing risk management activities. This article examines the outsourcing of claims management services by reviewing the research on outsourcing risks and by interviewing leading practitioners. In doing so, the authors draw some provisional observations about risks and risk costs associated with outsourcing claims management services—observations that seem generalizable to all risk management outsourcing.