A New Kind of Competition: How American Producers Respond to Incoming Foreign Direct Investment

Domestic producers in the U.S. have not lobbied for formal restrictions on incoming foreign direct investment in the same way that they have for import barriers, even though both types of foreign competition depress profits. At the same time, many U.S.-based multinational corporations, despite their global orientation, have put forth demands for government policies that favor American ownership. Domestically based producers have conflicting economic interests; they want protection against foreign competitors, against the possibility of retaliation, and against the perceived injuries sustained from investment restrictions abroad. Economic interests, then, lead to indeterminate predictions of how firms will respond to IFDI. Firms will only demand policies that they see as feasible (which depends on the presence of domestic institutions to channel demands and supply the policy output) and legitimate (which depends on how the policy accords with widely held norms regarding the proper role of the state). Understanding the domestic responses to globalization requires more research on the political, as well as economic, origins of policy demands.     

Corruption and NIC development: A case study of South Korea

The debate on corruption and economic performance has swung from one position to the other over the decades. During the 1960s the school of thought associated with modernisation theory argued corruption was often positively correlated with economic growth. (Huntington, 1968; Leff, 1964) Subsequently corruption came to be viewed as inimical to growth by undermining the basis of stable, rational public policies and allocation through markets (Rose-Ackerman, 1978; Theobald, 1990), the situation in which it is still largely viewed today, particularly following the “corruption eruption” of the 1990s (Alam, 1989; Leiken, 1997; Naim, 1995). East Asian countries stand as important case studies of the role of corruption in industrialisation: this article focuses on South Korea. Firstly corruption coexisted with development. Secondly corruption in South Korea was at different times functional, detrimental, irrelevant and relevant, but always present during rapid industrialisation. This is not of course to argue corruption fuelled growth nor to recommend it as a plausible policy option for developing or transitional economies, since it is evident that in many cases corruption is harmful to growth. This article seeks to understand the role corruption played in Korean economic development to better understand the phenomenon of corruption itself. This revised version was published online in July 2006 with corrections to the Cover Date.     

MEASURING THE WAR ON DRUGS: A CYBERNETIC MODEL FOR ANALYZING THE RELATIONSHIPS BETWEEN DRUG SEVERITY, DRUG SALIENCE AND DRUG FUNDING

This study explores the rationality of drug policy. It proposes a cybernetic relationship between actual drug severity, public salience of the drug problem, and anti‐drug funding. The study hypothesizes that increases in the severity of the drug problem will cause an increase in the salience of the drug issue. Increased salience in turn leads to political pressure and increased drug funding. As funding increases, anti‐drug programs become more robust and effective and drug severity decreases. When severity decreases, salience should in turn decrease. And so on. To test the cybernetic model, the study correlates trends of drug data from 1970 through 1996. It finds significant correlation between drug severity, measured by hospital emergency room drug episodes, and drug salience, measured by media coverage of drug events. The study finds correlations of drug funding and severity to be ambiguous, and finds no correlation between drug funding and drug salience. The findings do not support the overall hypothesis of a rational, cybernetic process but offer insights on drug policy dynamics.     

Hybrid Organizations and the Alignment of Interests: The Case of Fannie Mae and Freddie Mac

This article explores the political influence of government-sponsored enterprises (GSEs). Using Congress's overhaul of the regulatory infrastructure for Fannie Mae and Freddie Mac as a case study, the article presents two principal findings: (1) The characteristics that distinguish government-sponsored enterprises from traditional government agencies and private companies endow Fannie Mae and Freddie Mac with unique political resources; and (2) the alignment of interest groups around Fannie Mae and Freddie Mac is subject to strategic manipulation by the GSEs. A triangular model of this alignment is proposed and employed to analyze the legislative outcome. The case has implications for students of organizational theory as well as policy makers considering the use of GSEs or other hybrid organizations.     

Hidden Law‐Making in the Province of Medical Jurisprudence

Judges articulate their role in controversial cases of medical ethics in terms of deference to Parliament, lest their personal morality be improperly brought to bear. This hides a wide range of law‐making activities, as parliamentary sovereignty is diffused by ‘intermediate law‐makers’, and judicial activity is more subtle than the deference account implies. The nature of litigation raises questions about the contributions of other legal personnel and also the nature of the parties' interests in test‐cases. While judges demonstrate an awareness of some of these issues and anxiety about the constitutional legitimacy of their work, a more nuanced account is needed of their proper role. This may be built on Austin's theory of tacit legislation. It may draw from human rights law. However, considerable work is required before the complexities of hidden law‐making can be properly incorporated into the province of medical jurisprudence.     

Pakistan's industrial families: The extent,causes, and effects of their economic power

There has been much interest lately in the phenomenon of industrial growth in Pakistan and in the leading industrial families who were in the centre of that growth. [G. F. Papanek, 1967; G. F. Papanek, 1971; H. Papanek, 1972]. There have been few efforts, however to measure directly the importance of these families and the causes and effects of their economic power. This article will attempt to provide some of these measures.

Section I estimates the overall concentration in the manufacturing sector in Pakistan and provides a few international comparisons. Section II will provide estimates of the more traditional concentration by industry, along with estimates of the leading families’ roles in those industries. Section III discusses the origins of both kinds of concentration. And Section IV will analyze the consequences ‐economic and non‐economic ‐ of this concentration. The data in this article relate mostly to 1968.¹     

The New York City Police Department,its Crime Control Strategies and Organizational Changes, 1970-2009

Over the last two decades, New York City has witnessed historic drops in crime. Numerous explanations for this crime decline have been discussed, and the New York City Police Department (NYPD) has been central to that debate, most notably because of the adoption of order maintenance policing and the implementation of Compstat. While those developments in the early 1990s are clearly important for understanding the potential role of the NYPD in the crime decline, those changes did not occur in a vacuum. This paper adopts an historical framework that places the role of the NYPD in the crime decline in the larger context of the department’s history, culture, and key events over a nearly 40-year span. This perspective suggests that many of the crime control strategies implemented by the NYPD over that time have been driven by internal and external crises, and that these strategies have also produced unintended consequences. With the historical analysis as a backdrop, the paper considers the ongoing debate over stop, question and frisk practices, and their disproportionate impact on minority residents, as the next potential crisis for the NYPD. The paper concludes with a discussion of the historical framework as a foundation for initiating a comparative dialog across law enforcement agencies regarding crime control strategies, their impact, and their consequences.     

Editors' Note

Stephen Brooks' Producing Security is a very fine book that advances our understanding of globalization and of the links between economics and national security. In this paper I evaluate favorably and explore the frontiers of the book's chief contributions: its elucidation of the globalization of production, its illustration of the novelty of that phenomenon, and its consideration of the significance of this for world politics. I then raise one basic dissent, challenging the idea that the globalization of production has indeed altered the calculus of conflict—though my claim is not that the argument is wrong, but rather, that it is very considerably oversold. A final section offers some hypotheses on how the processes of globalization more generally may be altering the calculus of conflict for reasons complementary to, but largely distinct from, those emphasized in Producing Security.     

The implementation of the EU Prospectus Directive - a country-by-country analysis

Dr. Axel Gehringer HengelerMueller David Byers McCann FitzGerald, Solicitors, Dublin, Ireland Stefano Cuccia Head of Regulation, TLX, Milan Henri Wagner Allen and Overy, Luxembourg Petra Zijp NautaDutilh, Amsterdam José Manuel Cuenca and Yolanda Azanza Clifford Chance Daniel Bushner and Jonathan Parry Ashurst, London The first 150 words of the full text of this article appear below.