Principal-Agency Theory in Illegal Markets: Cooperation and Conflict Among Chinese Loansharks

There are management and organizational problems common to both legal and illegal businesses, such as moving one party to act in the interest of another rather than his own. In principal-agency theory, the party that wants someone else to do a job on his behalf is called the “principal” and the other party is called the “agent”. Principal-agency theory tries to find solutions to real and potential conflicts that arise from such transactional arrangements. We believe principal-agency theory has great potentials for understanding the operation and interpersonal relationships of criminal enterprises, in addition to the structural arrangements (e.g., a disorganized crime market) and the social network perspectives. Using a case study of Chinese loan sharking and cannabis cultivation in the Netherlands, we seek to make a theoretical contribution to existing literature on organized crime by focusing on how different individuals within a criminal enterprise negotiate the most efficient transactional arrangement in a principal-agent relationship amidst the uncertainties of an illicit market environment. We specifically look at four phases of the criminal enterprise studied: the selection of agents by the principal, attempts to bind these agents to the principal, potential conflicts and finally the solution of any problems. Incidentally, our study also gives insight in the less well-researched topic of loansharking.     

The effect of misperception on strategic behavior in legislative settings: Social psychology meets rational choice

This paper is about the conditions under which simple social psychological processes can affect collective decisions. In rational choice theory, social psychological effects are said to cancel out, be randomized, or be corrected by communication. Yet as Janis and Mann (1977) argued, there are generally recurring conditions in which such factors influence individual decisions. The question is, Under what conditions can we expect these factors to affect collective decisions? This paper suggests a general approach to identifying the effects of strategic misperception, illustrates it with an example of a social psychological process that affects player perceptions, and describes the preference distributions in which this simple process would change majority voting outcomes. The general conclusion is that strategic misperception may affect majority decisions under so many distributions of preferences that decisions cannot be predicted from knowledge of actors' preferences alone.     

Mental health courts: serving justice and promoting recovery

This article begins and ends with a call for more empirical research to understand the connection between societal views of mental illness and the legal system. The author asserts that changing social perceptions of mental illness certainly affect legal outcomes and commitment levels, but the degree remains unknown. This article explores the above two topics through the framework of the Circuit Court 'split' regarding the Constitutional rights of persons committed to state mental health institutions. A main facet of the 'split' is centered on the Circuits' disagreement about whether or not all mentally ill patients committed to institutions deserve the same Constitutional protections.     

The Trial of Joseph Dotterweich: The Origins of the “Responsible Corporate Officer” Doctrine

This article analyzes the origins of the “responsible corporate officer” doctrine: the trial of Joseph Dotterweich. That doctrine holds that an officer may be personally liable for the criminal act of a subordinate if the officer was, in some indefinite way, able to prevent the violation. Applying this doctrine, the prosecution of Dotterweich entailed strict liability for a strict liability offense. The underlying offenses—the interstate sale of one misbranded and adulterated drug and one misbranded drug—were said to be strict liability offenses. And then, with respect to Dotterweich as the corporation’s general manager, the government argued that he was strictly liable because he stood in “responsible relation” to the company’s acts. The government never tried to prove that the company, Buffalo Pharmacal, was negligent, nor did it try to prove that Dotterweich was negligent in his supervision of the employees of Buffalo Pharmacal. The prosecutor and judge were candid about this theory throughout the trial, although the judge conceded that it seemed bizarre and unfair. The defense lawyer repeatedly sought to inject what became known throughout the trial as the “question of good faith,” but was circumvented at almost every turn. What would thus seem to be the crux of any criminal trial—the personal fault of the defendant—was carefully shorn from the jury’s consideration. The government’s theory was so at odds with intuitive notions of liability and blame that, as one probes into the case, and looks at the language used in the government’s appellate briefs, imputations of moral fault inevitably crept in. Yet the government was not entitled to make such accusations, as it had pruned moral considerations from the trial. The article argues that the responsible corporate officer doctrine can never enjoy a secure place in our legal system. First, the doctrine is at a minimum in tension with, and often in direct opposition to, basic principles of the criminal law; and second, the doctrine fails, when followed to its logical conclusions, to accord with basic notions of fair play. The article concludes that the responsible corporate officer doctrine is either unnecessary, in cases in which the evidence establishes personal fault, or unjust, in cases in which it creates liability in the absence of personal fault through the unspecified notion of “responsibility.” The Dotterweich case illustrates what is contemplated by the latter possibility, and why it is problematic in any judicial system that purports, in the words of the Model Penal Code, “to safeguard conduct that is without fault from condemnation as criminal.”     

Children's rights as residual social policy in Nicaragua: State priorities and the Code of Childhood and Adolescence

In enacting a legislative Code of Childhood and Adolescence in 1998, the Nicaraguan state formally endorsed the ideal of children's rights as being a central concern of public policy. Yet, the state has done little to fulfil this commitment. In part this is the result of severe fiscal constraints, which have led to reduced public expenditures and the downsizing of social services, especially those directed towards children and youth. In part, however, there are also indications of state reluctance to actively implement the principles of change as outlined by the Code. This has been reflected in the government's reactionary response to fears of growing youth violence, and its unwillingness to collaborate with local civic groups in dealing with youth crime. We surmise therefore that, while the Code may have served to enhance state legitimacy, the cause of children's rights remains a residual policy issue in Nicaragua.     

Managerialism Meets Regime: A Distinctively Singaporean Marriage?

Managerial reforms were once assumed to be apolitical, and hence universally applied to various political settings. This assumption has been widely contested; some argue that managerial reforms are not applicable to countries outside what are termed Western liberal democracies, due to differing political contexts. The case of Singapore offers a counter-argument to these claims—managerial reforms were well-received in the state and its bureaucracy; both of which were vastly different from those of liberal democracies. The article further argues that this was not a coincidence; there seem to be salient reasons why managerial reforms were able to ‘marry’ Singapore's regime. This case study offers insights vis-à-vis a broader question: whether and how managerial reforms can be justified within and received in differing political contexts. It seems imperative to address this question, given the implications for future scholarship and how managerialism is a significant matter of concern to many governments worldwide.     

Analyzing factors influencing readmission to a battered women's shelter

Factors that distinguished first admission and readmission to an emergency woman's shelter were examined using discriminant function analysis. Records from 563 women who were residents were analyzed. Results suggest that source of income, number and developmental stage of children, and prior history of physical assault are precursors of readmissions. This study was discussed in terms of improving follow-up services to former residents of emergency shelters.     

Reviews

Vladimir Shlapentokh, Soviet Intellectuals and Political Power: The Post‐Stalin Era. London: I. B. Tauris & Co. Ltd., 1990, xiv + 321 pp., £19.95

Jadwiga Staniszkis, The Dynamics of the Breakthrough in Eastern Europe. Berkeley, CA: University of California Press, 1991, xiii + 303 pp., £25.00, $35.00.

Richard Sakwa, Gorbachev and his Reforms, 1985–1990. London: Philip Allan, 1990, xiv + 459 pp., £35.00 h/b, £12.95 p/b.

Julian Cooper, The Soviet Defence Industry: Conversion and Reform. London: Pinter Publishers, 1991, ix + 111 pp., £22.50 h/b, £8.95 p/b.

Elizabeth Winiecki & Jan Winiecki, The Structural Legacy of the Soviet‐Type Economy. London: CRCE, 1992, 133 pp., £6.50 p/b.

Marsha Siefert, ed., Mass Culture and Perestroika in the Soviet Union. New York, Oxford: Oxford University Press, 1991, 200 pp., $35.00.

Anne White, De‐Stalinization and the House of Culture. Declining state control over leisure in the USSR, Poland and Hungary, 1953–89. London and New York: Routledge, 1990, x+195 pp., £30.00.

Deborah Adelman, The ‘Children of Perestroika’. Moscow Teenagers Talk About Their Lives and the Future. Armonk, NY: M. E. Sharpe Inc., 1991, xxiii + 256 pp., $24.95.

Michael Marrese & Sándor Richter, eds, The Challenge of Simultaneous Economic Relations with East and West. London: Macmillan, 1990, xviii + 216 pp., £45.00.

David W. Hunter, Western Trade Pressure on the Soviet Union. Basingstoke: Macmillan Academic and Professional Ltd, 1991, xii + 163 pp., £45.00

Pierre Maurer, La Reconciliation Sovieto‐Yougoslave, 1954–1958: Illusions et Disillusions de Tito. Cousset, Fribourg: Editions Delval, 1991, 474 pp., no price.