Annullable bonuses and penalties

An annullable penalty is a sanction that is applied unless monitoring takes place and the agent is found non-shirking. An annullable bonus is a bonus that the agent receives unless he has been monitored and found shirking. Annullable penalties and bonuses stand in contrast with normal penalties and bonuses, which are only applied if monitoring has taken place. While real-life examples of annullable penalties are rare (an example is a sanction for which the burden of proof is reversed), there is a clear and oft-discussed example of annullable bonuses: efficiency wages. Under efficiency wages all employees receive a bonus (an overpayment), except for those who have been monitored and found shirking.This paper analyzes under what conditions annullable bonuses or penalties make economic sense. On the one hand, annullable bonuses and penalties have a degree of ineffectiveness that is absent in their normal counterparts: the penalty paid by or the bonus paid to non-monitored agents does not improve their incentives. Not only does this ineffective part make the expected sanction or bonus higher than necessary but it also creates an implicit tax on low monitoring levels and hence distorts monitoring choices. On the other hand, the annullable variants may change the ex post incentives of the agents (to come up with evidence) and the principal (to monitor as promised). As a result, annullable bonuses (such as efficiency wages) can be rational choices when the principal cannot credibly commit to paying bonuses with a certain probability, and annullable penalties can make sense when the agent needs an incentive to reveal information.     

Five years of the APEC Privacy Framework: Failure or promise?

The APEC Privacy Framework was developed from 2003, adopted by APEC in 2004 and finalised in 2005. It was intended as a means of improving the standard of information privacy protection throughout the APEC countries of the Asia–Pacific, and of facilitating the trans-border flow of personal information between those countries. In 2007 a number of ‘Pathfinder’ projects for cross-border data transfers were launched under the Framework. In the five years since the process commenced, what has it achieved, and what is it likely to achieve? This paper argues that the APEC Privacy Framework has had many flaws from its inception, including Privacy Principles that are unnecessarily weak, and no meaningful enforcement requirements. Since its adoption in 2004, little attempt has been made to encourage its use as a minimal standard for privacy legislation in developing countries (which might have been useful), and it is having little impact on the significant number of legislative developments now taking place.     

Counterinsurgency Principles for the Diplomat

The recent resurgence of interest in insurgency and counterinsurgency has revealed a deficit in material written by and for the diplomat, the actor ostensibly responsible for the political component of a counterinsurgency campaign. Classical theorists stress that progress along the political track is essential for ultimate success. Recent commentary, in shedding new light on the characteristics of modern insurgencies, reaffirms this principle. To make political headway the diplomat-counterinsurgent needs to develop a strategic narrative, build a political strategy around the narrative, acquire expertise, become a catalyst for political change, and maximize contact with the local population. In doing so, he will make important contributions to and help accelerate success in a counterinsurgency campaign.

“War and diplomacy are different but intimately related aspects of national policy. Diplomats and warriors who recall this will therefore act as brothers in a potentially lethal common endeavor.…they will consider together when to fight and when to talk and when to press and when to stop.”

Chas. W. Freeman, Jr., The Diplomat's Dictionary (1995)

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Saving NATO: Renunciation of the Article 5 Guarantee

The purpose of this article is to offer a radical proposal: NATO should unleash its potential as the world's premier cooperative and collective security organization by stepping down from being a European collective defense alliance. In other words, I argue that without renouncing territorial security guarantees in Europe, NATO will sacrifice its effectiveness in the new security environment.     

The Bush Doctrine: The Foreign Policy of Republican Empire

The dominant narrative concerning the Bush Doctrine maintains that it is a dangerous innovation, an anomaly that violates the principles of sound policy as articulated by the Founders. According to the conventional wisdom, the Bush Doctrine represents the exploitation of the 9/11 terrorist attacks, by a small group of ideologues—the “neoconservatives”—to gain control of national policy and lead the United States into the war in Iraq, a war that should never have been fought. But far from a being a neoconservative innovation, the Bush Doctrine is, in fact, well within the mainstream of U.S. foreign policy and very much in keeping with the vision of America's founding generation and the practice of the statesmen in the Early Republic. The Bush Doctrine is only the latest manifestation of the fact that U.S. national interest has always been concerned with more than simple security.     

The Muslim Brotherhood and the Emerging ‘Shia Crescent’

To form a more prudent foreign policy toward the Muslim Brotherhood, we must understand it not only as a domestic actor, but also as a major regional player. In fact, the Brotherhood has a complex relationship with Iran and the Shias, which blurs the lines of the so-called Shia Crescent. This article addresses the Muslim Brotherhood's foreign/regional policy by analyzing its attitude toward the Shias and Iran, thus placing it within the context of the emerging regional order. Addressing the complex relationship between the Muslim Brotherhood and the Shias/Iran will help to clarify the regional fallout were the Brotherhood to gain control of a major Sunni Arab state. This is a vital issue for policy makers who are considering the U.S. position vis-à-vis the Brotherhood.     

Reconstruction of Deformed Bite Marks Using Affine Transformations

Abstract: Bite marks inflicted on animate and inanimate objects will undergo a certain degree of deformation. This fact remains one of the biggest stumbling blocks when analyzing evidence for court presentation. It has been demonstrated that the reliability of pattern association analysis will not be affected by minimal degrees of warping, shrinkage, and distortion. In this study, affine transformations were applied to bite marks to establish if minimal distortions would affect the mathematically determined relationships of the defined features. In a real case study, it was then tested whether the distorted bite mark matched the dentition of the perpetrator by applying an affine transformation. This was confirmed to be the case. Affine transformations will thus not affect the relationships of the individual features found in bite marks. The numerical calculations validate the reliability of pattern association analysis in the presence of minimal amounts of warping, shrinkage, and distortion.