Reputation in a dark network of online criminals

This paper focuses on criminals who could easily be labelled as entrepreneurs and who deal in compromised computer systems. Known as botmasters, these individuals use their technical skills to take over and control personal, business and governmental computers. These networks of hijacked computers are known as botnets in the security industry. With this massive computing power, these criminals can send large amounts of spam, attack web servers or steal financial data – all for a fee. As entrepreneurs, the botmasters' main goal is to achieve the highest level of success possible. In their case, this achievement can be measured in the illegitimate revenues they earn from the leasing of their botnet. Based on the evidence gathered in literature on legitimate and illegitimate markets, this paper sets to understand how reputation could relate to criminal achievement as well as what factors impact a heightened level of reputation in a criminal market.     

Introduction to Neumann: law and socialist political theory

Abstract

Regulators attempt to understand financial markets and their risks in terms of categories of knowledge and datasets that are defined and produced by the markets. However, regulators cannot adequately interpret or utilize such knowledge, for reasons including their social distance from the sites of knowledge production, the diversity of financial firms’ proprietary risk models, firms’ abilities to game the rules thus rendering the ‘metrics’ meaningless and several backfiring aspects of global regulatory networking and reform. Calls for yet more information about trading, posed in terms of the merits of transparency, result in information swamping of regulators. Meanwhile, while policy-makers tinker with regulatory structures (‘architecture’), political reaction to the crisis de-legitimizes public regulation as a project. Yet there is one positive aspect of the reforms – enhancing powers for ‘resolution’ of financial firms in ways that impact upon investors while minimizing wider destabilization – upon which the regulatory information requirement can and should be refocused. To protect the public interest, legal transparency is required, trading transparency is not. This paper introduces these issues by drawing on critical work on transparency and markets.     

Challenges to the East Asian environment

Abstract

Can economic interdependence reduce conflicts among states in East Asia? The so-called ‘cold politics and hot economics’ has become a defining feature of Sino-Japanese political-economic relations. This puzzling pattern of interaction is clearly illustrated in the sovereignty dispute over the Senkaku/Diaoyu Islands. The island dispute has unfolded in five rounds of distinct clashes thus far. From one perspective, the competitive elements in the island dispute make it difficult for both Japan and China to give way to the other side on the territorial and maritime issues. At the same time, the two countries have successfully managed to contain their respective territorial and maritime claims thus far. Drawing on the liberal peace theory, this article systematically demonstrates that economic interdependence has repeatedly fostered the de-escalation of Sino-Japanese conflict over territorial and maritime rights.     

Globalisation before the crash: the City of London and UK economic strategy

The global financial crisis provides an opportune moment to analyse the rise of the City of London financial markets, their role in the globalisation process and an attempt by the Labour Party Left in the 1970s to challenge emerging transnational forces. The USA became the world's ‘hegemon’ after the Second World War, but London retained its power in finance; well placed to challenge the post-war Keynesian regulatory consensus in favour of globalising interests, theoretically and politically served by the rise of neo-liberal ideology. In response the Labour Party Left devised its radical ‘Programme 1973’ and subsequently the Alternative Economic Strategy, which in seeking to defend social democracy, understood the necessity to prevent the erosion of national financial controls. The 1976 International Monetary Fund crisis was a defining moment in this battle. This article includes interviews with key contemporary actors and is based in the discipline of International Political Economy.     

Business-government cooperation in VET: a Russian experiment with dual education

Upgrading skill formation has become an increasingly urgent task for societies facing the challenges of rapid technological change and globalization. However, reform of systems of vocational education and training (VET) poses severe challenges for aligning the interests of schools, firms, households, and governments, even in societies with relatively efficient markets for labor and education. Where market institutions are poorly developed, these challenges are particularly acute, resulting in endemic mismatches between the supply and demand of skill. Currently governments in many countries, including the United States, Russia, and China, are seeking to adopt elements of the German dual education model. The Russian federal government has undertaken several initiatives designed to upgrade VET by encouraging closer cooperation of vocational schools and firms at the regional level, including the adoption of dual education programs. This paper focuses on one such project: a 2013 pilot program administered by the Russian Agency for Strategic Initiatives, to foster the development of new models of dual education. The paper compares the 13 pilot regions with regions that submitted proposals but were not selected and with all other regions along multiple economic, social, demographic, and institutional dimensions. The findings suggest hypotheses about the conditions that enabled the pilot regions to take advantage of federal policies encouraging the adoption of dual education. More generally, the paper sheds light on institutional solutions to collective action dilemmas in skill formation in transitional and developing societies.     

The clash of ideologies: Notions of multiparty (liberal) democracy versus African systems

In South Africa traditional leaders, aka (also known as) chiefs or collaborators, had hoped that the new liberation political environment would retain and safeguard their deeply embedded cultural practices and values, which had existed for centuries, but had been partly violated during the colonial era. However, the new liberation era brought with it notions of liberal democracy—characterised by concepts of meritorious selections, based on democratic “elections”, a practice that further marginalised and frustrated hereditary cultural norms and practices, upon which the pillars and identities of each ethnic group or community were based. In discussing the complex and interlocking interests, epochs of colonial and postcolonial experience, the introduction of “foreign” meritorious notions that dispensed with the craved hereditary positions, the chiefs, traditional leaders and former collaborators appear to have been forced to abandon the liberation project and take up the issue of their survival as custodians of customs and chiefdoms; even against the messaging coming from the new political classes. Inevitably, this has created new tensions in the political governance of urban and rural communities, by elected officials who have either failed or succeeded to coopt traditional leaders. This article argues for a balance between democracy and traditional leadership that can inform modern electoral processes and modernise the cultural practices and eliminate unnecessary conflict and tensions.     

A Bonfire of the Regulations,or Business as Usual? The UK Labour Market and the Political Economy of Brexit

Employment and labour market regulation initially appeared as one of the solid red lines in the UK's renegotiation of the country's place in the EU. The basic argument is that the UK's more deregulated labour market would sit uneasily in the more organised models, based on statutory instruments or collective bargaining, found on the continent. While there is a legitimate problem here, EU employment regulations appear manageable from the point of view of business, while unions see them as important tools for socially responsible economic restructuring. Most of UK employment case law is now deeply entangled with EU law; labour market regulations have, on the whole, become part of the way of doing business in the Single Market; and a simple cost–benefit analysis appears impossible because some costs are not quantifiable and the costs of others are reduced when taken as a bundle. Labour unions agree that transposition of European law needs to be done taking into account local sensitivities, while internationally oriented companies do not see EU regulations on the whole as detrimental to business. Importantly, though, the costs and benefits of EU employment regulations are not symmetrically distributed across different companies: large companies are better able to reap the rewards and accommodate the costs of operating in the Single Market than smaller companies.     

Squaring the speed of light? Regulating market access in algorithmic finance

Abstract

We examine the sociomaterial regulation of algorithmic trading against the background of the European Union’s directives on Markets in Financial Instruments (MiFID/MiFIR). Tracing the purification and translation of regulatory practices within a French brokerage firm, we examine the impact of electronic trading on the nature of market access. Central to our analysis is the ‘Blackbox’, a tool designed to manage market access efficiently by collating trade flows and automatically pairing them with trading algorithms. Our findings show that, through a process of ‘abstracting’, purification and translation are kept strictly separate, allowing the broker to meet the regulatory requirements de jure whilst retaining de facto the unregulated advantages of high-speed materiality. We discuss the implications for both the policy and practice of high-speed financial trading.