Generalized Social Trust and International Dispute Settlement

What determines the success of a peaceful settlement attempt of a border dispute? In order to fully understand why decision makers choose to put an end to an ongoing conflict, it is necessary to consider the social trust levels of the general populations in both states. International conflict settlement requires public support at the domestic level. If a state’s general population perceives the potential dangers of a settlement as too severe, the conclusion of a peace agreement will be difficult. We argue that high levels of social trust allow citizens (1) to favor more conciliatory foreign policies and (2) to be more optimistic about the future behavior of other states. In democratic settings, these public attitudes serve as powerful constraints for decision makers. As a result, high aggregate levels of social trust should be directly related to concession-granting behavior by democracies as well as effective dispute settlement among jointly democratic dyads. We test these expectations with a new aggregate-level measure of social trust and find mixed support for our hypotheses: While trust does not influence the behavior of challenger states, it does have strong effects on democratic target states and jointly democratic dyads.     

Audit for Whom? Time to Review Roles of Independent Auditors in Hong Kong

The Hong Kong government has been reforming its laws regarding accounting practices in recent years, to pre-empt problems similar to that of Enron. It correctly recognizes an opportunity to enhance and distinguish the financial system in Hong Kong and create a competitive advantage for Hong Kong. The sixty-five billion dollar question is: what is the right approach for accounting practice reform? One obvious approach is to model reform after the Sarbanes Oxley Act (SOX). The SOX increases personal liabilities of senior management and introduces extremely cumbersome compliance processes (s 3 (b)(ix) of Minutes of Bills Committee of Financial Reporting Council Bill. (19 July 2005)). While this approach may be the right move for the United States, because rescuing investor confidence is paramount, a similar approach may not be optimal for Hong Kong. Hong Kong relies, to a great degree, on foreign investments and a heavy-handed approach may scare investments away (Charles E. Schumer &; Michael R. Bloomberg To Save New York, Learn from London, Wall Street Journal 1 Nov 2006). This paper, argues that failure of independent auditors was mainly caused by bad incentives. In particular, auditors were hired by and responsible to the management of companies. Thus, there is no surprise that auditors were less diligent in finding problems caused by management. Furthermore, proposing of an alternate to the SOA’s approach. Specifically, a new legal approach should be enforced that allows shareholders to sue auditors when failure to uncover accounting issues causes loss of shareholders’ values.     

Transformative Illegality: How Condoms ‘Became Legal’ in Ireland, 1991–1993

This paper examines Irish campaigns for condom access in the early 1990s. Against the backdrop of the AIDS crisis, activists campaigned against a law which would not allow condoms to be sold from ordinary commercial spaces or vending machines, and restricted sale to young people. Advancing a conception of ‘transformative illegality’, we show that illegal action was fundamental to the eventual legalisation of commercial condom sale. However, rather than foregrounding illegal condom sale as a mode of spectacular direct action, we show that tactics of illegal sale in the 1990s built on 20 years of everyday illegal sale within the Irish family planning movement. Everyday illegal sale was a long-term world-making practice, which gradually transformed condoms’ legal meanings, eventually enabling new forms of provocative and irreverent protest. Condoms ‘became legal’ when the state recognised modes of condom sale, gradually built up over many years and publicised in direct action and in the courts.