'These mad abandon'd times'

Abstract

The existing academic literature on financialization points to multiple instances in which firms attempt to demonstrate the vitality of their stock-market position in ways which ultimately prove to be self-harming. I demonstrate, in the first instance as a matt er of immanent logic, that these actions are linked to the interplay of contradictory tendencies in the microfoundations of financialization. Under conditions of financialization, firms create additional sources of credit to capitalize their productive activities by driving their stock price into greater increases than the market average, thereby generating capital gains. Yet, the more it becomes public knowledge that the financing tricks used to inflate the stock price provide no productive benefit to the firm, the more it would seem to create incentives for fund managers to hold portfolios that replicate the stock market as a whole. In this way, they will minimize their exposure to financial misrepresentation. Such a stance undermines financialized business models, but it does in any case conform to fund managers’ basic theoretical training, which revolves around the logical demonstration that an individual stock cannot systematically out-perform the market average. I review the available empirical studies of fund manager decision-making to show that they find against the existence of a simple performativity loop operating between finance theory and fund manager behaviour. However, on many points the empirical evidence does confirm the theoretically derived conclusion concerning the potentially contradictory microfoundations of financialization. Fund managers often do act in a way which is consistent with finance theory's core claim that an index-tracking strategy represents the only equilibrium portfolio, even if this is only rarely as a result of the direct performativity of the theory.     

Comment on Langley C. Keyes et al.’s “Networks and nonprofits: Opportunities and challenges in an era of federal devolution”

Abstract

Housing markets are determined by a complex interplay of consumers and suppliers. The Keyes et al. article discusses the changing landscape for nonprofit housing providers and what recent developments in federal housing assistance policy will mean to them. But this perspective is too narrow to predict the effects of changes in federal housing policy because all housing providers are somewhat interrelated. All housing providers need to be considered, and using the terms “for‐profit” and “nonprofit” to distinguish between the two types of providers is unfortunate and misleading.

For‐profits and nonprofits are fundamentally different: They place a different emphasis on community, and nonprofits can often deliver subsidies that for‐profits cannot. In addition, the strengths and the skills needed to produce housing under somewhat different objectives have led to some specialization. Ultimately, however, determining the optimal provider or mix of providers is best left to local and state governments as federal housing assistance devolves.     

Restoring community through traditional neighborhood design: A case study of Diggs town public housing

Abstract

This article examines how traditional neighborhood design (TND) can restore a sense of community to distressed neighborhoods. Traditional neighborhoods, such as those found in many cities and inner suburbs, provide their residents numerous opportunities and venues for social interaction. We apply the principles of TND to the redesign of a public housing project. We call our approach an “architecture of engagement.”

Using a case study of Diggs Town, a public housing project in Norfolk, VA, we explore how the application of TND principles transformed a socially alienated and distressed neighborhood into a socially integrated and functional one. We find that TND techniques improve the quality of life by facilitating the social exchanges that create social capital.     

Currency devaluations and consolidating democracy: the example of the South African rand

Abstract

In 2001 the South African rand depreciated suddenly and steeply against the dollar and euro. This triggered inflation as the prices of imported products gapped upward. To offset the imminent inflationary effects and attract foreign exchange, the Reserve Bank raised interest rates, resulting in slower domestic growth. The critical question was the cause of the currency depreciation. We argue here that the rand's decline was the result of a concatenation of internal and external factors, specifically the way the operations of the global financial markets magnified and exacerbated the effects of internal financial policy decisions. The article illustrates the heightening connectivity between domestic policy decisions aimed at regulating the national economy and the globalizing financial markets that operate on an altogether different logic. The Reserve Bank's attempt to regulate the local foreign exchange regime in concert with the corporate use of financial instruments to circumvent these exchange controls led to a relatively illiquid currency market that was easily susceptible to attack by speculative capital. The end result was a crippling devaluation that especially hurt the impoverished black South African majority in the process of getting on its feet economically, thereby adding a further constraint on the consolidation of post-apartheid democracy.     

What Can Pro-Democracy Activists in Arab Countries Expect from the European Union? Lessons from the Union's Relations with Israel

In this article, we analyze the European Union's (EU) approach to the Israeli–Palestinian conflict, showing that there is a wide gap between its normative opposition to the occupation, Israel's expanding settlement project, and the EU's foreign trade policy. Our argument is not only that there is no evidence of norm diffusion from the EU to Israel, but that within the EU itself there is no diffusion from the normative political stance to the EU's economic interests. The Israeli case suggests that the pro-democracy activists of Tunisia, Egypt, and Syria should be aware that the trade interests of the EU Member States will ultimately trump the EU's political declarations.     

The Effects of ‘Social Expectation’ on the Development of Civil Society in Japan

The European Union (EU) stands out among the major trading powers for its significant and dramatic response to new demands for access and participation in its external trade policymaking process. A spectacular range of mechanisms designed to increase the involvement of civil society organizations, including non-governmental organizations (NGOs), have been introduced recently. This article examines whether these new political opportunities in the EU have an impact on the trade processes and policy outcomes by revisiting a case that has been celebrated as indicative of the potential of global civil society to promote social justice—the Access to Medicines campaign. The findings show that although NGOs were instrumental in providing education, raising awareness, and giving a voice to broader societal concerns about the social and health-related aspects of the proposed trade deals, their impact on policy outcomes was limited. EU policymakers did not pursue policies that placed public health concerns over stringent intellectual property right protection, despite NGO involvement in the external trade policymaking process. I argue that the robust liberal and legal epistemic foundations of the international trade regime effectively hamstrung NGO efforts to move the external trade policies in more sustainable and just directions. These findings have broad implications for the power of epistemes and their ability to enable and delimit NGO agency in global economic governance.     

Civil Society in Post-Communist Europe: Perceptions and Use of Contacts

Proceeding from mass society theory and the theory of social capital, this article discusses the effect of social isolation, social trust, and membership in voluntary organizations on radical right-wing voting in Belgium, Denmark, France, Norway, and Switzerland. By using data from the first and third rounds of the European Social Survey, a number of logistic regression models are estimated. The results indicate that social isolation and social capital, measured as active membership in voluntary organizations, are of marginal value for explaining radical right-wing voting, although there is some cross-national variation. Moreover, the results show that not even members of humanitarian aid and human rights organizations are less likely to vote for the radical right, which clearly questions the universalistic ambitions of Putnam's theory of social capital and its core idea that organizational membership fosters tolerance and civic virtues.     

非资本型行业的概念、定位及其特征的研究

该文在对解决家庭服务业发展问题的理论探索中,提出了行业的资本性质概念;选择生活质量、资源、资本、劳动和社会制度五个参数,建立行业经济的数学模型;通过对行业模型进行演绎、对行业经济要素进行拆分,完成了非资本型行业的定位及其特征的研究。     

创新整治模式 服务三农发展——广西高标准基本农田建设调研报告

近年来,各地积极探索如何让土地整治更好助力农业现代化,涌现了一些模式创新的典型。广西在“小块并大块”耕地整治的基础上,将土地整治与社会参与、重大工程、扶贫等因素结合,促进了农业增效、农民增收与农村发展。     

全球化时代的海外政治经济风险评估

目前,政治经济风险已成为海外投资和国家经济安全领域中的一个重要因素。由于全球化进程的不断深入和拓展,当一国遭遇政治经济风险时,往往产生连锁反应,给其他国家的国家利益带来风险。因此,对海外政治经济风险的评估和预测显得非常重要。国外的一些专门从事风险评估的机构,在这方面有较透彻的、持续的研究成果。本文着重介绍和分析国外一些著名的风险评估公司及其研究评估体系,并在此基础上提出对我国加强海外风险评估的若干看法。