South Asia and the Asiatic Mode of production: Some conceptual and empirical problems

Abstract

The resurgence of dialectical sociology has stimulated a renewed interest in the investigation of political and economic developments in third world countries with the aid of Marxist paradigms. In this connection a substantial volume of literature has been produced recently, mostly by western scholars, on Marx's definition of the Asiatic Mode of Production (AMP) or its related genre, such as Oriental Despotism. Hopefully the revival of this interest will open up lines of investigation hitherto ignored or inadequately developed. At the same time numerous difficulties arise on the theoretical, empirical and ideological levels when one attempts to explain the dynamics of change in countries and regions of South Asia with the above mentioned concepts in mind.     

The terrorists' dilemmas: Some implicit rules of the game 1

Abstract

Knowledge of certain dilemmas faced by terrorists may serve to narrow the options available to the opposing parties and aid in varying government response to terrorist acts. Such dilemmas are the identification with violence, the problem of attacking or seeking a negotiated incident, choice of level of terror, maintenance of one's objectivity within a group characterized by conformity, and retaining one's identity as a historic victim.     

Financial market liberalisation in LDCs: The incidence of risk allocation effects of interest rate increases

’High’ deposit interest rates are central to the financial liberalisation argument. The article investigates the relatively neglected issue of who must pay. Two issues are stressed. If loan charges increase the incidence falls on (typically), highly geared businesses and overall financial saving may not rise as claimed. Second, although loan charges need not increase (and enhanced credit availability may compensate borrowers if they do), the financial risks of banks increase. These risks are pertinent to monetary policy and may force actions contrary to the liberalisation approach. Institutional developments to foster the supply of risk‐bearing capital are emphasised in conclusion.     

The Bureaucratic Approach to the Financial Revolution: Japan's Ministry of Finance and Financial System Reform

While all industrialized countries have enacted financial reforms over the past decade, Japan's Ministry of Finance (MoF) officials have crafted a distinctive approach to reform. They have managed to pursue their own agenda while at the same time responding to international market pressures and domestic political demands. This article examines Japan's "financial system reform," the process by which the MoF has recast the regulatory barriers between different types of financial institutions, such as banks and securities houses. Financial system reform represents an extreme case of a common Japanese policy pattern—the bureaucratic-led bargain—in which Japan's bureaucrats, rather than its politicians, organize the bargains that eventually emerge as policy. Two ministry policy councils deliberated for seven years before the Diet passed comprehensive reform legislation in 1992, and the ministry continues to redefine the reform at the stage of implementation today. While MoF officials have been forced to make concessions to industry groups and to adjust to unforeseen developments along the way, they have maintained overall control of the reform process. In fact, this article suggests that they have been remarkably successful in promoting their own peculiar interpretation of the public interest and in preserving and, in some cases, enhancing their own power.     

Rent seeking and hidden in-kind resource distortion: Some empirical evidence

We wish to thank John Jackson, Robert Hebert, Gordon Tullock and an anonymous referee for helpful comments on earlier draft of the paper.