A free market bailout alternative?

It has been more than 3 years since the collapse of the investment bank Lehman Brothers and the beginning of the Troubled Asset Relief Program. Most recently, the sovereign debt crisis in Europe has led to the bailout of the governments of Ireland, Portugal and Greece. A main reason behind these bailouts is to support European banks loaded with government bonds on their balance sheet. In this article we analyze the detrimental consequences of the public bailout in 2008 and argue that a free market alternative existed. The alternative of a private bailout outlined in this article, consisting of the conversion of liabilities into equity and a private capital increase, largely avoids the problems of a public bailout. Similarly, a public bailout of governments of the Eurozone to sustain banks may be detrimental.     

Politicization,banking experience and risk in savings banks

During the global financial crisis, criticism of the politicization and lack of professionalization of the savings banks has taken a central position in the political debate. The aim of this article is to analyze if the political presence of governing bodies in Spanish savings banks has been reflected in their various risk-taking behaviors before and during the financial crisis. We will also analyze whether the influence of the chairman’s banking experience matters. The results do not provide evidence that the composition of the boards of savings bank, or even their politicization, have played a role. However we show that savings banks run by a chairman with previous banking experience are likely to be significantly more solvent and less volatile.     

Enhancing Consistency in Sentencing: Exploring the Effects of Guidelines in England and Wales

Objectives

The development and application of methods to assess consistency in sentencing before and after the 2011 England and Wales assault guideline came into force.

Methods

We use the Crown Court Sentencing Survey to compare the goodness of fit of two regression analyses of sentence length on a set of legal factors before and after the assault guideline came into force. We then monitor the dispersion of residuals from these regressions models across time. Finally, we compare the variance in sentence length of equivalent types of offences using exact matching.

Results

We find that legal factors can explain a greater portion of variability in sentencing after the guideline was implemented. Furthermore, we detect that the unexplained variability in sentencing decreases steadily during 2011, while results from exact matching point to a statistically significant average reduction in the variance of sentence length amongst same types of offences.

Conclusions

We demonstrate the relevance of two new methods that can be used to produce more robust assessments regarding the evolution of consistency in sentencing, even in situations when only observational non-hierarchical data is available. The application of these methods showed an improvement in consistency during 2011 in England and Wales, although this positive effect cannot be conclusively ascribed to the implementation of the new assault guideline.     

About the Impossibility of Absolute State Sovereignty

State sovereignty is often thought to be absolute, unlimited. This paper argues that there is no such a thing as absolute State sovereignty. Indeed, absolute sovereignty is impossible because all sovereignty is necessarily underpinned by its conditions of possibility—i.e. limited sovereignty is the norm, though the nature of the limitations varies. The article consists of two main sections: (a) the concept of sovereignty: this section is focused on some of the limitations the concept of sovereignty itself presents; and (b) a historical account of the notion of sovereignty as it was used in the Ancient Times. The particular focus on early notions of a modern concept such as sovereignty has to do with the fact that this early notion has been anthropomorphised with societal evolution. Therein, the current concept of State sovereignty embraces the same limitations it had in its ancient form as a non-fully developed conceptual idea. The implications of understanding State sovereignty as limited rather than absolute are several, both directly and indirectly. A main immediate consequence is that sovereign States can cooperate together, limit their sovereignty and still be considered sovereign.     

The communitarian revolutionary subject: new forms of social transformation

Abstract

The hope for a unique revolutionary actor in the twentieth century evaporated as a result of the weaknesses of social organisations. This paper examines the potential of an almost-forgotten group of revolutionary actors – collectively organised and deliberately involved in processes of social and productive transformation with a legitimate claim to territory – whose present-day activities involve them in concerted processes to consolidate a different constellation of societies on the margins of the global capitalist system. Indigenous and peasant communities throughout the Americas are self-consciously restructuring their organisations and governance structures, taking control of territories they claimed for generations. They are also reorganising production to generate surplus, assembling their members to take advantage of underutilised resources and peoples’ energies for improving their ability to raise living standards and assure environmental conservation and restoration. These communities are not operating in isolation. They coordinate activities, share information and build alliances. Hundreds of millions of people are participating in this growing movement; they occupy much more than one-quarter of the world’s land area. There is great potential for others to join them, expanding from the substantial areas where they are already operational. Global social networks are ensuring that this dynamic accelerates.     

Improvising Peace: Towards New Social Contracts in Tunisia

ABSTRACT

Eight years after the Arab Spring revolutions, Tunisia's state and citizens are crafting an increasingly resilient national social contract, despite setbacks. This case study examines what is driving Tunisia's efforts, focusing in particular on key transition initiatives – including a national dialogue and a forward-looking constitution adopted by broad consensus, following nation-wide consultations. The case examines how informed and empowered Tunisians built these structures to leverage the inherent resilience capacities of the people, which developed throughout state and civil society formation, women's movements, labour movements, and civic education. The research suggests that two issues that gave rise to the revolution have remained particular challenges for efforts to mediate and address conflict: political and social polarisation and lack of livelihoods. It reveals how Tunisians are calling for more inclusion and institutionalised citizen engagement as a means to address them. Conclusions point to how post-revolution, democratisation gains as well as values of compromise, tolerance, dialogue appear to be immunising Tunisia against irreparable reversals and are laying the foundations for sustainable democratic peace.     

Ausbruch aus dem Gehäuse der Economic Governance. Überlegungen zu einer Soziologie der Wirtschaftsdemokratie in transformativer Absicht

The New Economic Governance (NEG) in the European Union is a core element of a neoliberal crisis constitutionalism that has to be seen as blatantly deficient when measured with democratic yardsticks. Strongly normative criticism generates important findings, but ignores the economic dimension of damage to democracy. From the perspective of capitalism theory, the NEG can be recognised as a product of a capitalistic land grab (“Landnahme”) of the political field and as a system of institutions whose functional logic corresponds to the imperative of a crisis-ridden economy characterised by the financial markets. In this context, viewpoints are confirmed that regard the integration of the economic causes of blatant deficits of democracy as an essential element of a new type of inclusive democracy project. The work on a new economic democracy as a core element of such a democracy project thus also becomes a desideratum for a public sociology that wishes to contribute evidence-based knowledge to social disputes.     

Agilität als Chance für einen neuen Anlauf zum demokratischen Unternehmen?

There has been a long-standing discussion since the 1980s about the question whether new production models harbor a potential for extended employee participation and involvement, in most cases with disillusioning results. This paper is concerned with so called “agile methods”, which play an important part in the area of knowledge work in the course of the digital transformation. On the basis of two case studies from software development and industrial R&D, the paper examines the concrete implementation of these methods and the employees’ perspective upon them and their consequences. The result is that agile methods present a potential for extended employee participation and involvement; however, the realization of this potential depends on the concrete way how the agile concept of “empowerment” is implemented.     

Nicht-Nachhaltigkeit auf der Suche nach einer politischen Form. Konturen der demokratischen Postwachstumsgesellschaft

The article examines the triangular relation between ecological sustainability, economic growth and liberal democracy and asserts that this relation is dramatically altered in the face of the increasingly imminent manifestation of the “limits to growth.” In the course of this process, the contours of a “democratic post-growth regime” are beginning to show – though in a very different way than was hoped for by the majority of transformation researchers. Intent on making a contribution to re-relating those normative factions of sustainability research which share a transformative self-understanding to the scientific analysis of modern societies, the paper shows how central eco-political and democracy-related narratives that have dominated the debate for decades have lost credibility, thus opening up the space for a readjustment of the named triangular relation. Applying a social theory perspective, it is subsequently shown how, in the face of modern conceptions of subjectivity and, at best, moderate growth rates, democracy is increasingly turning into an instrument for the unflinching sustainment of unsustainable lifestyles. As it turns out, modern consumer societies persist in their “politics of non-sustainability” more uncompromisingly than ever before.