Dodging the bullet: How crises trigger technocrat‐led governments

Governments led by nonpartisan, ‘technocratic’ prime ministers are a rare phenomenon in parliamentary democracies, but have become more frequent since the late 1980s. This article focuses on the factors that lead to the formation of such cabinets. It posits that parliamentary parties with the chance to win the prime ministerial post will only relinquish it during political and economic crises that drastically increase the electoral costs of ruling and limit policy returns from governing. Statistical analyses of 469 government formations in 29 European democracies between 1977 and 2013 suggest that political scandals and economic recessions are major drivers of the occurrence of technocratic prime ministers. Meanwhile, neither presidential powers nor party system fragmentation and polarisation have any independent effect. The findings suggest that parties strategically choose technocrat‐led governments to shift blame and re‐establish their credibility and that of their policies in the face of crises that de‐legitimise their rule.     

Land and agricultural commercialisation in Meru County,Kenya: evidence from three models*

What are the relative pros and cons of different pathways of agricultural commercialisation in Africa? This paper examines aspects of three commercial farming cases, each of which represents one of the three most dominant models of commercial agriculture – small-scale outgrowers, medium-size commercial farms and a large estate – in the high-potential area of Meru County in Kenya. The paper provides a comparative perspective across the cases, examining their outcomes in terms of land relations, labour, livelihoods and local economic linkages. The study used a mixed-methods approach, including a household survey and a range of qualitative methods including detailed life histories. We find diverse dynamics across our cases: increasing land consolidation spurred by the rising class of commercial coffee farmers, but also land fragmentation as a result of population pressure and prevalence of inheritance as a pathway to land acquisition in the case of horticultural outgrowers. The plantation generates relatively better paid employment for permanent skilled workers, while the commercial farms create employment for casualised, insecure and poorly paid seasonal labour. These labour regimes are highly gendered. The outgrowers combine family and hired labour. Across the three cases, farmers diversify income between on-farm and off-farm sources. The commercial and outgrower farms are dynamically integrated into the local economy, while the estate is less so. These features of the three models generate processes of social differentiation, which are reshaping the agrarian structure and rural economy in Meru County.     

Do People Really Lack Knowledge About the Economy? A Reply to Facchini

Facchini uses a behavioural approach to analyse the political beliefs of French people, who he believes are ‘more or less incompetent’ in economics. In this article I focus on his premise that the public are incompetent and that therefore their views, such as being opposed to the market in the case of the French people, should be interpreted as ‘perception bias’. Other economists may echo Facchini, claiming that people who voted Leave in the UK and for Trump in the USA did so because their lack of economic knowledge contributed to an ‘anti‐foreign bias’. However, I argue here that the existing empirical research showing that people lack economic knowledge is flawed. Many economists adopt a questionable approach to the interpretation of public knowledge and the evaluation of what knowledge is important.     

Competition and switching in public service markets: Can they reduce inequalities?

Regulatory reforms to public infrastructure services across European Union (EU) countries were aimed at increasing consumer welfare by introducing competition and choice into service markets. However, empirical evaluations have questioned whether these reforms have benefitted all consumers, suggesting that vulnerable groups of service users (especially those with lower levels of formal education), might be locked into poorly performing services. We assess the relationship between the level of competition in electricity and fixed telephony markets in EU countries and evaluate the affordability of these services for different socio‐educational layers. Our findings show that – although in countries where there is a relatively high frequency of switching, inequalities between socio‐educational groups are smaller and eventually disappear – competition as such does not play a part. These results suggest that demand‐side regulation that successfully enables consumer switching has the potential to equalize social welfare, thereby reflecting a possible convergence of regulatory instruments and the central aims of the welfare state in this context.     

The political and economic causes of satisfaction with democracy in Spain – a twofold panel study

This study tests the links between political and economic performance and satisfaction with democracy (SWD) in Spain. Contrary to the dominant theoretical paradigm that explains the aggregate evolution of and the individual-level differences in SWD mainly by means of economic factors, the article presents evidence that evaluations of the political process are equally relevant to account for both changes in individuals’ SWD over time and the evolution of SWD at the national level. Unlike most existing literature, this study supports its argument by combining analyses of a micro-level panel dataset (CIUPANEL) and of a pooled aggregate-level panel dataset based on the Spanish samples in the Eurobarometer and the Latinobarómetro between 1986 and 2014.     

Unpacking Local Economic Development: A Case Study from Nekemte Town and Its Hinterlands,Oromia, Ethiopia

Most agree that local economic development (LED) is a “bottom-up” development approach seeking to unleash the development potential of a locality. Nonetheless, focusing closely on the dynamics of specific localities, this can be criticized for being too local and overlooking extra-local links. This article explores the drivers of LED from the local economic actors’ perspectives in Nekemte town and its hinterlands, Oromia region, Ethiopia. The results clarify that LED is not only just “local”, but also an approach that links urban and rural areas, and thus, understanding rural–urban linkages is a prerequisite for a better understanding of the local economic development.     

Restoring Fiscal Balances Post the Global Economic Crisis in Botswana

This article discusses the restoration of fiscal balances in Botswana after prolonged deficit financing. Botswana is a diamond-export-dependent country; resultantly, it suffered revenue losses due to depressed demand for diamonds during the global economic crisis. Reduced revenues necessitated deficit financing between 2008/09 and 2011/12. Debt was financed through dissaving and borrowing. However, the government restored budget balances in April 2012. While this case study is Botswana-specific, there are general lessons. These are: using a crisis to introduce public finance reforms; eschewing populism aimed at short-term gains; and the need for politicians to take very bold decisions to guide fiscal policy.     

Dealing with Austerity: a case of local resilience in Southern Europe

Southern countries are undergoing a severe economic crisis that has renewed debates about the available strategies to economise their public resources. Political leaders have launched a wide range of different strategies aimed at reducing spending. According to generally accepted political discourse, drastic actions should be taken to guarantee economic and financial sustainability in times of austerity. We explore the main measures adopted by Spanish municipalities in order to examine their impact in budgetary terms. First of all, we identify the most frequently implemented mechanisms including organisational structure, public services and operational economic restructuration. After their quantification, we monitor the presence and impact of each set of policies to analyse the relationship between concrete measures and effective economic impact. The effective reduction of budgets is being implemented but data show that local governments are resilient to non-compulsory changes. The ‘government at a distance’ policy pursued by the central state administration has effectively reduced budgets but has not affected the institutional core of Spanish local governments.     

Wage labour and capitalism: a comparative and historical analysis of Eritrea and Kenya

Abstract

This paper seeks to explain the development of capitalism in Eritrea and Kenya from a labour history perspective. Indeed, the assumption in this research is that capitalism can only be explained by taking into consideration free wage labour as one of the sine qua non conditions for the existence of the capitalist mode of production. Therefore, the article looks at the paradigmatic socio-economic shifts: from unfree to free labour, from free to precarious labour and from unfree to precarious labour. These are the result of the complicated relationship that exists between capital and labour. The point of departure of the analysis is the Nieboer-Domar hypothesis on the structural origins of slavery, which despite severe criticism, it has been largely remained unchallenged until the present. In Eritrea, colonised by Italy, and Kenya, colonised by England, free wage labour fully developed between the nineteenth and twentieth century. This could be considered the era of the advent of capitalism, with the advent, for a fraction of the working population, of labour relations based on wages. The precarisation of life of free wage workers is also partially analysed in this article.     

Trumponomics and China-US Economic and Trade Relations

Since he took office,the new US president,Donald Trump,has unveiled his broad economic policy-now called Trumponomics.It emphasizes neoliberalism at home,less government regulations,more growth and weakening the welfare state.Internationally,Trumponomics embraces protectionism and nativism with a focus on US economic interests.Trumponomics caters to the lower-middle classes,a reflection of the country's current economic and diplomatic challenges.Trumponomics will bring uncertainty to China-US economic and trade relations.China should carefully study the policies of the Trump administration and prepare contingency plans.