Building Bond Repayment Capacity in Developing Countries: A Study on Property Tax Collections and Debt Affordability in Mexico

This article uses a multinomial regression model to analyze the bond repayment capacity of issuers of municipal bonds in Mexico. The study emphasizes the role that property and land-based taxes have in the enhancement of repayment capacity, as these are highly underutilized levies with important revenue raising potential. The findings show that there is no statistically significant link between these taxes and the chosen proxy for repayment capacity. This follows from an institutional and legal framework that creates an artificial environment of fiscal solvency. The Mexican case is instructive on how not to create a subnational bond market.     

Functional Reforms in Italian Employment Policies: Institutional Impact at the Macro and Micro Level

This article explores the institutional impact of Italy’s administrative decentralization of employment policies since the mid-1990s, by focusing on the Lombardy region. These reforms have produced significant shifts in terms of transfer of responsibilities from the national to the regional level, liberalization, and participation of private actors. By relying on two case studies—the regional public agency in charge of coordination of employment policies and a private provider of employment services—the reforms’ implications in terms of reorganization and stakeholder participation are explored. The results point to a required shift in terms of strategy, organization, and operations for both institutions.     

Agricultural policy in Russia and WTO accession

This article analyzes the implications of World Trade Organization (WTO) accession for Russian agricultural policy. Using Organisation for Economic Co-operation and Development (OECD) data on producer support from 2010, we identify two major characteristics of Russian agricultural and trade policy (a) reliance on sizeable differences between world and domestic prices to generate two-thirds of agricultural producer support and (b) highly distortionary budget support. We then consider whether the disciplines introduced by WTO accession will constrain or even roll back these distortionary policies, thereby substantially changing the nature of agricultural policies in Russia. Using data from OECD-FAO (Food and Agriculture Organization of the United Nations) and Russian Ministry of Agriculture projections, we conclude that the structure of OECD-type producer support in 2020 will be very similar to its current state. Market price support will continue to dominate the Producer Support Estimate, and the projected Current Total Aggregate Measure of Support (AMS) will approach the WTO Bound Total AMS (the ceiling on production-distorting support) only in 2018. For the reasons above, we conclude that although WTO accession provides opportunities for important changes in Russian sanitary, phytosanitary, food safety, trade, and tariff policies, membership is not a guarantee of systemic change. In fact, a serious look at Russian WTO commitments makes a minimum-change scenario quite possible and even likely.     

Climate change: Double-edged sword for African trade and development

Abstract

African governments face increasing pressure from major export destinations, primarily former colonial and slave-owning countries, to be climate change compliant. This will certainly be on display at the upcoming December 2009 United Nations Climate Change Conference in Copenhagen, which will seek to strengthen climate change rules agreed on in Kyoto, Japan, in 1997, and adopt new protocols on global climate change regulation. Climate change is a double-edged sword: on one side it is hitting Africa's agricultural sector with increased droughts, floods, extreme frost and wildfires; and on the other, African governments are being forced to respond to stringent regulatory regimes imposed by international export destinations. Currently, the per capita greenhouse gas emissions from the highly industrialised nations – the North – is estimated to be four times that of Africa and the rest of the developing world. Twin research questions were investigated in this article: (1) to what extent does climate change impact on African trade and development, and (2) how can African governments stay on a path of sustained trade and development in this era of climate change? The article argues that Africa's survival in these times of climate change compliance rests on a shift to greater intra-African trade, as individual nations move towards cleaner and more organic technologies to become full-fledged partners in the international climate change regulatory regime.     

How Does the Business of News Influence Terrorism Coverage? Evidence From The Washington Post and USA Today

Observers argue that the business of news is responsible for worsening the coverage of terrorism, but exactly how economic considerations influence coverage is controversial. Based on an analysis of over 1600 articles from The Washington Post and USA Today, we find that concerns about the effects of economic pressures on terrorism reporting are exaggerated. The business climate affects coverage, but the long-term impact of market pressures on coverage is modest. Articles about terrorist violence are increasingly prominent, but coverage of counterterrorism remains robust. Efforts to inoculate the press against the worst excesses of the market are unnecessary.     

Campaign appeals in Nigeria's 2007 gubernatorial elections

Ethnicity has emerged as a prominent issue in electoral contests around the world, particularly in countries that have embraced multiparty elections in the past few decades. What factors influence ethnic mobilization and the politicization of ethnicity? Although a number of factors have been hypothesized to influence the politicization of ethnicity in the comparative politics literature, many of these relationships have not been established through empirical testing. This study empirically tests a number of the hypotheses derived from the literature with our unique data set on candidates' ethnic appeals in the Nigerian 2007 gubernatorial elections. We find that political parties' use of ethnic appeals is correlated with the competitiveness of the election, nature of the campaign, partisan attachments, and social, demographic, and economic characteristics of the states. Of particular note is the finding that the salience of ethnic identity in the electorate influences political leaders' use of ethnic appeals.     

禁止内幕交易立法理念转换及其体系效应——从反欺诈到市场诚信

基于反欺诈理念和市场诚信理念所建构的禁止内幕交易法律制度存在根本区别,前者注重保护投资者个人利益,后者则着眼于证券市场诚信的维护,进而导致二者在行为构成要件和法律责任设置等核心规则方面的重大差异。随着证券市场实践的深入发展,反欺诈立法难以克服的功能障碍和结构缺陷日益凸显,造成禁止内幕交易执法和司法实践面临诸多困境,故此逐渐为世界主要经济体所抛弃。顺应国际趋势,以市场诚信维护作为禁止内幕交易制度的立法理念并依此重构制度体系,或能实现逻辑自洽与体系完整,似为提升我国证券市场核心竞争力的应然选择。     

The emergence of the rule of law in Russia

This paper challenges an empirical claim about the commercial courts (arbitrazhnye sudy) made by Kathryn Hendley and her co-authors in their paper “Law, Relationships and Private Enforcement: Transactional Strategies of Russian Enterprise” in Vol. 52, No. 4, Europe-Asia Studies in 2000. Basing their case on a quantitative survey of Russian firms, they conclude that economic actors in the 1990s relied on ‘the law and legal institutions’ because the commercial courts were relatively effective. In order to test this claim about the link between individual behaviour and the judiciary, I ask: What type of belief about corruption was held by Russian economic actors who trusted the commercial courts for conflict resolution at the end of the 1990s? The data set is drawn from a survey of 227 Russian firms made in 1997. I use self-reported data on economic actors’ preference for using or not using the commercial court (in case of a hypothetical conflict about a considerable amount of money) as a proxy for trust. A binary logistic regression model shows that economic actors who accepted corruption as a fact of life at the time of market entry were three times more likely to trust the commercial courts for conflict resolution than economic actors who rejected corruption. This finding contradicts any reasonable definition of the rule of law and suggests that the neo-liberal reformers should have paid more attention to the content – rather than merely to the speed – of reform.     

Creating flows of interpersonal bits: the automation of the London Stock Exchange,c. 1955–90

Abstract

This article deals with the concept of market information. In particular, it argues that references to the so-called conduit metaphor, which represents markets as a series of information flows, hide the localized, historically contingent and materially mediated practices of the economy. Following the tradition of the performative theory of social institutions, this article argues that the specific meaning of ‘market information’ and its concrete manifestations (e.g. prices) depend on the sociotechnical character of the calculative practices through which market participants orient their economic actions. The point is illustrated through a historical reconstruction of the introduction of price and quote dissemination technologies in the London Stock Exchange between 1955 and 1990. By highlighting the historical and technological contingency of prices, the case of the London Stock Exchange shows that it is impossible to provide a universally and temporally invariant definition of market information.     

Take an issue: cultural economy and finance

Abstract

Present-day capitalism is increasingly financial in character. At nearly every turn, finance and practices of financialization have begun to work their way into most areas of everyday life. The papers gathered together in this special section under the umbrella term ‘cultural economy of finance’ seek to explore the preparation of key areas of modern finance. In doing so, they demonstrate the productiveness of opening finance to a range of interdisciplinary inquiry to show how finance works and how debates about finance might be productively progressed.