Mortgaging Security for Economic Gain: U.S. Arms Policy in an Insecure World

Similar to other consumer sectors of the global economy, the transfer of advanced conventional weapons and military technologies has entered the globalization process, a process that has qualitatively and quantitatively altered the composition and structure of U.S. national security policymaking. By injecting the decisionmaking process governing arms transfers into the global market place, U.S. policy makers must now reconcile maintaining economic competitiveness within the global system without jeopardizing U.S. national security interests. By subordinating national security interests to global economic imperatives, U.S. decisionmakers are at risk of mortgaging the political, societal, and security welfare of its citizenry for profit.     

Family-owned,limited close corporations and protection of ownership

Protected ownership and freedom of contracts are two basic parts of the institutional framework of successful countries according to Douglass North, winner of the Nobel Prize in 1993. The incentives to make long-term investments are strengthened if ownership rights are protected and freedom of contracts is a basic element in the process of efficient allocation of scarce resources. An important engine in prosperous societies is the family firm. Most companies in these societies can be classified as family firms and a major part of GDP is produced by family businesses. Consequently, how ownership is protected in family firms is an important issue.Three important factors of private ownership of property are the rights to determine use of owned assets, the return generated from them and to transfer the assets at mutually agreeable terms to a new owner(s).The incentives of a founder entrepreneur to put efforts into the establishment of a firm are determined by all the three factors. We will here pay special attention to the third factor, transfer of the ownership of the firm. The founder often places contractual restrictions on such transfers to ensure that the structure of ownership is stable and that the firm stays in the family. The possibility to do so is part of the freedom of contracts and is associated with the extent of ownership held as well as the incentives to invest in new businesses.This paper is primarily about how protection of family ownership can be achieved from a legal point of view and discusses the reasons to enforce these legal relationships in the future for second, third, fourth etc. generations of family owners.     

Innovative regulations,incomplete contracts and ownership structure in the water utilities

Using an incomplete contract framework, we analyse new forms of regulation and private participation in public services. This paper explains contractual efficiency in the absence of financially guaranteed investments in public private partnerships. The example of a number of African countries underlines how a series of national, normative law reforms can give rise to innovations in approaches to regulation. This new hybrid form of regulation, inspired by a French regulation approach combining commission regulation and franchise bidding, could be more effective than previous approaches to regulation, in the sense of being more stable and more closely aligned with stakeholder expectations. This approach to regulation would appear to be more efficient economically, while integrating the objectives of solidarity tariffs and social water access connections. Based on these analyses, our results show (1) the impact on the robustness of new lease contracts on financing constraints, and (2) the advantages of Asset Owner Companies that reconcile explicit commitments and special purposes. We demonstrate that this achieves optimum efficiency by encouraging parties to determine jointly the optimal level of costs and investment. In addition, the mechanism fosters discussion about the possibility of institutionalizing Asset Owner Companies by predetermining the distribution of risk in lease contracts.     

Sex Discrimination,Personal Denial,and Collateral Damage

Many social scientists, especially those interested in social justice, have bemoaned the election of Donald Trump as president of the USA and have decried similar right-wing victories around the globe. We wish our research would have more of an impact. I argue that if we want our conclusions to have more application outside academia, we must first put our own house in order. As illustrated by a personal narrative, we are guilty of the sexism that we decry in others, although we can see that with clarity only in hindsight. Connected to our sexism are some epistemological shortcomings: our false insistence on the primacy of basic research and our false claim to conduct “value-free” research.     

A rebirth of “moderation” in China?

Based on interviews conducted with the Chinese elite, ranging from intellectuals to ex-army officers, this article examines Chinese society between 1978 and 1988, the 1988–89 period of crisis, and China's future prospects. The author analyzes the relative performance of the agricultural, rural-industrial, and heavy industrial sectors as well as the special economic zones over this period of time. China's debt problem, recent splits within the People's Liberation Army (PLA), the Communist Party's loss of legitimacy, and the rise of new interest groups are examined. The author concludes that present socio-economic trends indicate China with return to a program of economic liberation and political decentralization after the dealth of Deng. William McCord is professor of sociology at the Graduate Center and City College of the City University of New York, New York, NY 10031. His most recent books includePaths to Progress (1986),Voyages to Utopia (1990), andThe Dawn of the Pacific Century (1990).     

Governance in der politischen Ökonomie — zum Stand der Debatte

Ohne Zusammenfassung     

Föderalismusreform und Umweltrecht*

Der Beitrag befasst sich mit der Entwicklung, der Lage und den möglichen Veränderungen des deutschen Föderalismus im Hinblick auf das Umweltrecht. Die bisher in der Kommission zur Modernisierung der bundesstaatlichen Ordnung geäußerten Vorschläge können nur teilweise überzeugen. Zu empfehlen ist insbesondere ein einheitlicher Kompetenztitel des Bundes für den Umweltschutz im Bereich der konkurrierenden Gesetzgebung. Allgemein sollten die Rahmengesetzgebung und die Grundsatzgesetzgebung ebenso entfallen wie die Möglichkeit des Bundes, gemäß Art. 84 Abs. 1 GG künftig weiter die Einrichtung und das Verwaltungsverfahren der Landesbehörden zu regeln. Im Übrigen erscheint die Beteiligung der Länder an der europäischen Gesetzgebung reformbedürftig. * Frau Christina Hakel sowie Herrn Volker Ochsenfahrt, Berlin, danke ich für die wertvolle Mitarbeit.     

Do Ukrainian Firms Benefit from FDI?

All countries are eager to attract as much foreign direct investments (FDI) as possible. At the same time FDI may have not only positive, but also negative economic effects for receiving countries. Positive effects are associated with technology transfer, efficient allocation of resources, and training of domestic workers. However, the entry of foreign firms could, e.g., lead to a decrease of labor productivity at domestic firms, which is a negative effect. The main purpose of this paper is to estimate direct and indirect effects of FDI. First, we test for direct influence of foreign direct investments on firms’ performance, where the latter is estimated alternatively as labor productivity and as exports. FDI notably increases both labor productivity and export volumes. Second, we look for spillover or indirect effects. There is statistical evidence that the levels of FDI in certain regional industries are associated with higher performance indicators of firms’ not receiving FDI in those same regional industries.