The Physical Basis of Voluntary Trade

The article discusses the conditions under which can we say that people enter the economic system voluntarily. “The Need for an Exit Option” briefly explains the philosophical argument that voluntary interaction requires an exit option—a reasonable alternative to participation in the projects of others. “The Treatment of Effective Forced Labor in Economic and Political Theory” considers the treatment of effectively forced interaction in economic and political theory. “Human Need” discusses theories of human need to determine the capabilities a person requires to have an acceptable exit option. “Capability in Cash, Kind, or Raw Resources” considers what form access to that level of capability should take—in cash, kind, or raw resources, concluding that a basic income guarantee is the most effective method to ensure an exit option in a modern, industrial economy.     

Regional Corporate Spawning and the Role of Homegrown Companies

This paper presents the results and policy implications of a study that examined the spawning of founders who had previously been employed at large corporations. We found that spawning of founders is positively associated with the parent companies' productivity, innovativeness, and headquarter location. Furthermore, we found that the spin‐off per employee rate is higher in smaller establishments. We also found that the local entrepreneurial culture is significant in explaining local spawning of founders. Finally, we present new empirical evidence on the crucial role of successful homegrown companies in regional cluster development. More specifically, we found that the existence of successful homegrown companies is significantly correlated with the level of the regional entrepreneurial activity. This finding is consistent with the finding of many cluster development case studies. Thus, we argue that successful homegrown companies have a unique role in cluster development. This role can seldom be replaced by nonhomegrown companies. This is related to the notion that prior to the development of an entrepreneurial cluster, some intangible precondition should be realized such as the appearance of local role models and a shift toward a more entrepreneurial culture. In a more general perspective, these results support the notion that knowledge‐based regional development is a complex process that requires a long‐term and continuously adjusting supporting policy rather than being based mainly on attracting established companies' R&D centers to the region.     

A Case of Moral Heroism: Sympathy,Personal Identification,and Mortality in Rwanda

What sort of person chooses to remain in a place like Rwanda when an easy exit is offered, when leaving seems the only safe or sane option, and when one is not directly connected to the would-be victims? And how does this person come to develop a circle of care that is expansive enough to include those who are radically Other? In what follows, I consider these questions through a detailed examination of the recent example of Paul Rusesabagina, the Hutu hotel manager in Kigali, Rwanda, who sheltered more than a thousand Tutsi and moderate Hutu refugees during the hundred-day genocide. I argue that Rusesabagina was primarily motivated by an awareness of his own mortality, his personal history, a desire to distance himself from the negative behavior of Hutu like himself, and a strong identification with the Tutsi refugees under his protection.     

Three Sorries and You’re In? Does the Prime Minister’s Statement in the Australian Federal Parliament Presage Federal Constitutional Recognition and Reparations?

Then newly elected Labor Prime Minister, Kevin Rudd, made a historic statement of “Sorry” for past injustices to Australian Indigenous peoples at the opening of the 2008 federal parliament. In the long-standing absence of a constitutional ‘foundational principle’ to shape positive federal initiatives in this context, there has been speculation that the emphatic Sorry Statement may presage formal constitutional recognition. The debate is long overdue in a nation that only overturned the legal fiction of terra nullius and recognised native title to lan with the High Court’s decision in Mabo in 1992. This article explores the implications of the Sorry Statement in the context of reparations for the generations removed from their families under assimilation policies (known since the Bringing Them Home Inquiry as the Stolen Generations). We draw out the utility of recent human rights statutes—such as the Human Rights Act 2004 (ACT)—as a mechanism for facilitating justice, including compensation for past wrongs. Our primary concern here is whether existing legal processes in Australia hold further capacity to provide reparation for Australian Indigenous peoples or whether their potential in that regard is already exhausted. We compare common law and statutory developments in other international jurisdictions, such as Canada, as an indication of what can be achieved by the law to facilitate better legal, economic and social outcomes for Indigenous peoples. The year 2008 also saw Canadian Prime Minister Stephen Harper express his apology to residential school victims in the Canadian Parliament, providing thematic and symbolic echoes across these two former colonies, which, despite remaining under the British monarchy, both forge their own path into the future, while confronting their own unique colonial past. We suggest that the momentum provided by the recent public apology and statement of “Sorry” by the newly elected Australian Prime Minister must not be lost. This symbolic utterance as a first act of the 2008 parliamentary year stood in stark contrast to the long-standing recalcitrance of the former Prime Minister John Howard on the matter of a formal apology. Rather than a return to a law enforcement-inspired “three strikes and you’re out” approach, Australia stands poised for an overdue constitutional and human rights-inspired “three ‘sorries’ and you’re in”.     

Access to Power Versus Exercise of Power Reconceptualizing the Quality of Democracy in Latin America

Research on comparative democratization has recently expanded its focus to issues of institutional quality: clientelism, corruption, abuse of executive decree authority, and weak checks and balances. However, problems of institutional quality are so different from those involved in regime transitions that it is unproductive to treat them as part of the same macro-process, democratization. Whereas regime transitions are changes in the form of access to power, problems of institutional quality involve the exercise of power. Abuses in the exercise of power affecting institutional quality are best characterized not as indicators of authoritarianism and deficiencies in democratization but as reflecting—in Weberian terms—patrimonialism and failures in bureaucratization. Moreover, struggles over the exercise of power involve causes, mechanisms, and actors that can be quite distinct from those at play in conflicts over access to power. The proposed analytical framework centered on the distinction between access and exercise enhances conceptual clarity and provides a stronger theoretical basis for tackling fundamental questions about politics in Latin America, including the failure of democratization to curb clientelism and foster other improvements of institutional quality, and the prospects of democratic stability under patrimonial administrations.     

Unemployment Risks and the Origins of Unemployment Compensation

This paper focuses on the distribution of sectoral unemployment risks and the role of political regimes in the foundational moments of unemployment compensation. The institutionalization of unemployment compensation is a function of two factors. First, it depends on the distribution of unemployment risks by economic sectors. Second, the effect of risk inequality is conditional upon the political regime type. I employ event history analysis of 144 countries throughout the world for the long historical period from 1880 to 2000. The results show that an overall societal level of unemployment risk and inequality of sectoral unemployment risks in a society are positively associated with the likelihood of the institutionalization of unemployment compensation. In addition, the effect of risk inequality is much higher under democracy than under dictatorship. A broader implication is that the creation of unemployment compensation is not only a function of homogeneous working class power but also a function of working class conflict that stems from the heterogeneity of unemployment risks among workers.     

Mainstreaming international governance: The environment,gender, and IO performance in the European Union

International organizations (IOs) have moved increasingly in recent years to adopt cross-cutting mandates that require the “mainstreaming” of particular issues, such as gender equality or environmental protection, across all IO policies. Successful IO performance with respect to such mandates, we hypothesize, is determined in large part by the use of hard or soft institutional measures to shape the incentives of sectoral officials whose cooperation is required for successful implementation. We test this hypothesis with respect to two such mandates—gender mainstreaming and environmental policy integration—in a single international organization, the European Union, demonstrating a strong causal link between the use of hard incentives and IO performance in these and related mandates.