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.     

ASEAN as the ‘regional conductor’: understanding ASEAN's role in Asia-Pacific order

This paper analyses ASEAN's prominence in regional order negotiation and management in Southeast Asia and the Asia-pacific through the lens of social role negotiation. It argues that ASEAN has negotiated legitimate social roles as the ‘primary manager’ in Southeast Asia and the ‘regional conductor’ of the Asia-Pacific order. It develops an English School-inspired role negotiation framework and applies it to three periods: 1954–1975 when ASEAN's ‘primary manager’ role emerged from negotiations with the USA; 1978–1991 when ASEAN's role was strengthened through negotiations with China during the Cambodian conflict; and 1991-present when ASEAN created and expanded the ‘regional conductor’ role. Negotiations during the Cold War established a division of labour where great powers provided security public goods but the great power function of diplomatic leadership was transferred to ASEAN. ASEAN's diplomatic leadership in Southeast Asia provided a foundation for creating its ‘regional conductor’ role after the Cold War. ASEAN's ability to sustain its roles depends on maintaining role bargains acceptable to the great powers, an increasingly difficult task due to great power rivalry in the South China Sea.     

Advocacy Coalitions in Ontario Land Use Policy Development

In 2005, the Ontario government passed the Places to Grow Act and the Greenbelt Act, both major changes in land use policy designed to preserve greenspaces and combat urban sprawl in the Greater Golden Horseshoe, Canada's largest conurbation. This article examines the actors, actor beliefs, and inter‐actor alliances in the southern Ontario land use policy subsystem from the perspective of the Advocacy Coalition Framework (ACF). Specifically, this paper undertakes an empirical examination of the ACF's Belief Homophily Hypothesis, which holds that inter‐actor alliances form on the basis of shared policy‐relevant beliefs, creating advocacy coalitions. The analysis finds strong evidence of three advocacy coalitions in the policy subsystem—an agricultural coalition, an environmentalist coalition, and a developers' coalition—as predicted by the hypothesis. However, it also finds equally strong evidence of a cross‐coalition coordination network of peak organizations, something not predicted by the Belief Homophily Hypothesis, and in need of explanation within the ACF.     

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.     

Centers of Gravity: Regional Powers,Democracy, and Trade

Classic studies on hegemonic stability and power transition suggest that concentration of capabilities favoring a single state can promote economic cooperation and discourage militarized conflict. However, tests of these arguments have been primarily limited to examining temporal variation in global capability distributions and corresponding levels of system-wide cooperation; few have examined the impact of capability concentration at the region level. In this article, we contend that concentration of regional military capabilities corresponds to lower trade costs for states throughout a region and to an incentive for weaker states to de-prioritize expenditure on the military, freeing resources that can be used to promote trade. As a result, this condition promotes higher levels of trade, particularly within the region. We also argue that democratic regional powers are better able to foster confidence in the sustainability of cooperation; thus, the trade-enhancing impact of concentrated regional capabilities is stronger when the predominant state is more democratic. We find evidence in support of our expectations in statistical models examining state trade between 1960 and 2007.     

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.     

ASEAN At 50: the global political economy’s contribution to durability

Why has the Association of Southeast Asian Nations (ASEAN) proved so durable as a regional organisation given the many challenges it has faced since its inception in 1967? This analysis makes use of an historical institutionalist approach. It shows how the global political economy, through the injection of aid and investment and the development of production networks and increased trade, generated a generally positive regional economic environment that encouraged cooperation. It also provided the resources for the gradual institutionalisation of ASEAN and the expansion of its reach through the establishment of associated regional organisations. The result was that these factors, in combination, contributed to ASEAN’s staying power.