In the past twenty years, economic policy in Latin America has veered toward neoliberalism, or market friendliness. State interventions in the economy were cut back in many areas, in the form of reductions in fiscal deficits; privatization of public enterprises; reductions of import quotas and tariffs and export subsidies; removal of barriers to foreign capital flow; and increased faith in the private sector and market processes.
This book offers an intellectual and historical background for these policy choices, specifically in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The contributors detail the structural reform and economic policies in Latin America and discuss the various and often contradictory effects neoliberalism, such as fluctuating growth rates and saving-investment balances, worsened corruption, growth of exports, falling wages, and rising unemployment. In addition, each case study forecasts the effects of neoliberal policies on future growth and income distribution in the respective countries. Finally, it offers policy alternatives to neoliberalism.
The essays in this volume are: an introduction by Lance Taylor; "The Argentine Experience with Stabilization and Structural Reform," by José María Fanelli and Roberto Frenkel; "Opening, Stabilization, and Macroeconomic Sustainability in Brazil," by Edward Amadeo, "An Ongoing Structural Transformation: The Colombian Economy, 1986-96," by José Antonio Ocampo; "Economic Reforms, Stabilization Policies, and the 'Mexican Disease,'" by Nora Claudia Lustig and Jaime Ros; and "Structural Reforms and Macroeconomic Policy in Peru: 1990-96," by Oscar Dancourt.
Lance Taylor is the Arnhold Professor of International Cooperation and Development, New School for Social Research.
Edited by Edward L. Glaeser University of Chicago Press, 2010 Library of Congress HC79.D5A33 2010 | Dewey Decimal 338.87
When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities industrial clusters remain vital.
Agglomeration Economics brings together a group of essays that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance our understanding of agglomeration and its implications for a globalized world.
Japanese and American economists assess the present economic status of the elderly in the United States and Japan, and consider the impact of an aging population on the economies of the two countries.
With essays on labor force participation and retirement, housing equity and the economic status of the elderly, budget implications of an aging population, and financing social security and health care in the 1990s, this volume covers a broad spectrum of issues related to the economics of aging. Among the book's findings are that workers are retiring at an increasingly earlier age in both countries and that, as the populations age, baby boomers in the United States will face diminishing financial resources as the ratio of retirees to workers sharply increases.
The result of a joint venture between the National Bureau of Economic Research and the Japan Center for Economic Research, this book complements Housing Markets in the United States and Japan (1994) by integrating research on housing markets with economic issues of the aged in the United States and Japan.
A revolution in American medicine is in full swing, with the race from fee-for-service to fee-for-value at the front line in an epic battle that will transform healthcare delivery for decades to come. In America’s Healthcare Transformation, eminent physician leader Robert A. Phillips brings together key thought leaders and trail-blazing practitioners, who provide a wide-ranging exploration of the strategies, innovations, and paradigm shifts that are driving this healthcare transformation.
The contributors offer a panoramic look at the dramatic changes happening in the field of medicine, changes that put the patient at the heart of the process. Among other subjects, the essays evaluate innovative high quality and low cost care delivery solutions from around the United States and abroad, describe fundamental approaches to measuring the safety of care and the impact that guidelines have on improving quality of care and outcomes, and make a strong case that insurance reform will fundamentally and irreversibly drive delivery reform. In addition, America’s Healthcare Transformation reviews the role of health information technology in creating safer healthcare, provides a primer on the development of a culture of safety, and highlights ground-breaking new ways to train providers in patient safety and quality. Finally, the book looks at reports from Stanford Health Care and Houston Methodist which outline how successful behaviorally based strategies, anchored in values, can energize and empower employees to deliver a superior patient experience.
Drawing on the wisdom and vision of today’s leading healthcare innovators, America’s Healthcare Transformation provides a roadmap to the future of American healthcare. This book is essential reading for all health care providers, health care administrators, and health policy professionals, and it will be an invaluable resource in the effort to improve the practice of medicine and the delivery of healthcare in our communities and nation.
Despite massive investment of money and research aimed at ameliorating third-world poverty, the development strategies of the international financial institutions over the past few decades have been a profound failure. Under the tutelage of the World Bank, developing countries have experienced lower growth and rising inequality compared to previous periods. In Beyond the World Bank Agenda, Howard Stein argues that the controversial institution is plagued by a myopic, neoclassical mindset that wrongly focuses on individual rationality and downplays the social and political contexts that can either facilitate or impede development.
Drawing on the examples of Africa, Asia, Latin America, and transitional European economies, this revolutionary volume proposes an alternative vision of institutional development with chapter-length applications to finance, state formation, and health care to provide a holistic, contextualized solution to the problems of developing nations. Beyond the World Bank Agenda will be essential reading for anyone concerned with forging a new strategy for sustainable development.
Participatory development and government accountability depend in part on the existence of media that provide broad access to information from varied sources and that equip and encourage people to raise and debate issues and develop public opinion. Conducive policies, laws, and regulations are essential for media to develop that are independent and widely accessible and that enable the expression of diverse perspectives and sources of information. Broadcasting, Voice, and Accountability presents a framework to inform analysis of existing policies and support the development of a vigorous media sector, with a particular emphasis on broadcasting. It focuses on broadcasting because that is the medium with the greatest potential to reach and involve society at large, including the most disadvantaged and illiterate segments of society in developing countries. Information on good practices in broadcasting policy is in demand in countries of every region—particularly in countries that are opening their economies, democratizing, and decentralizing public service delivery.
This book provides development practitioners with a wide overview of the key policy and regulatory issues involved in supporting freedom of information and expression and enabling development of a pluralistic, independent, and robust broadcasting sector. Policy, regulation, capacity, and institutional development are important development levers that shape the ownership, content, and social impacts of broadcasting systems. The guide shows the importance of enabling a mix of ownership and uses, commonly classified in terms of commercial, public service, and community broadcasting, that serves the public interest. With the guidance of this book, broadcasting policy and regulation can be tackled as a mainstream development topic, with important consequences for government transparency, government accountability, and enabling disadvantaged constituencies to voice their concerns and press for action.
This book is the World Bank's first publication presenting good practices from around the world in media and broadcasting policy and regulation and complements existing work in governance, public sector reform, and access to information. It is a useful tool for policymakers, reform managers, development practitioners, and students alike.
"Most books on the state of broadcasting in the third world tend either to lament the lack of governance, accountability and competence, or to speak down to their readers. This book is part of a new generation that acknowledges ability and a willingness to move forward into the twenty-first century with integrity and imagination. It is not patronizing, and it is certainly not boring. It focuses on really useful approaches to setting up, sustaining, and governing broadcasting systems across the world. This is an excellent book whose combination of sound scholarship and intelligent advice will be welcomed by policymakers and broadcasters alike. It is relevant, interesting, and a jolly good read."
---Ruth Teer-Tomaselli, UNESCO Chair in Communication for Southern Africa, Culture, Communication and Media Studies, University of KwaZulu-Natal
digitalculturebooks is an imprint of the University of Michigan Press and the Scholarly Publishing Office of the University of Michigan Library dedicated to publishing innovative and accessible work exploring new media and their impact on society, culture, and scholarly communication. Visit the website at www.digitalculture.org.
A classic problem of social order prompts the central questions of this book: Why are some groups better able to govern themselves than others? Why do state actors sometimes delegate governing power to other bodies? How do different organizations including the state, the business community, and protection rackets come to govern different markets? Scholars have used both sociological and economic approaches to study these questions; here Timothy Frye argues for a different approach. He seeks to extend the theoretical and empirical scope of theories of self-governance beyond groups that exist in isolation from the state and suggests that social order is primarily a political problem.
Drawing on extensive interviews, surveys, and other sources, Frye addresses these question by studying five markets in contemporary Russia, including the currency futures, universal and specialized commodities, and equities markets. Using a model that depicts the effect of state policy on the prospects for self-governance, he tests theories of institutional performance and offers a political explanation for the creation of social capital, the formation of markets, and the source of legal institutions in the postcommunist world. In doing so, Frye makes a major contribution to the study of states and markets.
The book will be important reading for academic political scientists, economists (especially those who study the New Institutional Economics), legal scholars, sociologists, business-people, journalists, and students interested in transitions.
Timothy Frye is Assistant Professor of Political Science, The Ohio State University.
Development assistance employs carrots and sticks to influence regimes and obtain particular outcomes: altered economic policies, democratization, relief of suffering from catastrophes. Wealthy nations and international agencies such as the World Bank justify development assistance on grounds of improving the global human condition. Over the last forty years, however, ethnic conflict has increased dramatically. Where does ethnic conflict fit within this set of objectives? How do the resources, policy advice, and conditions attached to aid affect ethnic conflict in countries in which donors intervene? How can assistance be deployed in ways that might moderate rather than aggravate ethnic tensions?
These issues are addressed comparatively by area specialists and participant-observers from development assistance organizations. This book is the first systematic effort to evaluate this dimension of international affairs--and to propose remedies. Case studies include Russia, Ecuador, Sri Lanka, and Kenya, with references to many other national experiences.
Cross-cutting chapters consider evolution of USAID and the World Bank's policies on displacement of people by development projects, as well as how carrots and sticks may affect ethnic dynamics, but through different mechanisms and to varying degrees depending on political dynamics and regime behaviors. They show that projects may also exacerbate ethnic conflict by reinforcing territoriality and exposing seemingly unfair allocative principles that exclude or harm some while benefiting others.
For students of international political economy, development studies, comparative politics, and ethnic conflict, this book illuminates a problem area that has long been overlooked in international affairs literature. It is essential reading for staff members and policymakers in development assistance agencies and international financial institutions.
Milton J. Esman is the John S. Knight Professor of International Studies, Emeritus, and Professor of Government, Emeritus, at Cornell University.
Ronald J. Herring is Director of the Mario Einaudi Center for International Studies at Cornell, the John S. Knight Professor of International Relations, and Professor of Government at Cornell University.
After two decades of marketizing, an array of national and international actors have become concerned with growing global inequality, the failure to reduce the numbers of very poor people in the world, and a perceived global backlash against international economic institutions. This new concern with poverty reduction and the political participation of excluded groups has set the stage for a new politics of inclusion within nations and in the international arena. The essays in this volume explore what forms the new politics of inclusion can take in low- and middle-income countries. The contributors favor a polity-centered approach that focuses on the political capacities of social and state actors to negotiate large-scale collective solutions and that highlights various possible strategies to lift large numbers of people out of poverty and political subordination.
The contributors suggest there is little basis for the radical polycentrism that colors so much contemporary development thought. They focus on how the political capabilities of different societal and state actors develop over time and how their development is influenced by state action and a variety of institutional and other factors. The final chapter draws insightful conclusions about the political limitations and opportunities presented by current international discourse on poverty.
Peter P. Houtzager is a Fellow at the Institute of Development Studies, University of Sussex. He has been a visiting scholar at the Center for Latin American Studies, University of California, Berkeley, visiting lecturer at Stanford University, and lecturer at St. Mary's College. A political scientist with broad training in comparative politics and historical-institutional analysis, he has written extensively on the institutional roots of collective action.
Mick Moore is a Fellow at the Institute of Development Studies, University of Sussex, as well as Director of the Centre for the Future State. He has been a visiting professor at the Massachusetts Institute of Technology. His professional interests include political and institutional aspects of poverty reduction and of economic policy and performance, the politics and administration of development, and good government.
A civil society is one in which a democratic government and a market economy operate together. The idea of the civil economy--encompassing a democratic government and a market economy--presumes that people can solve social problems within the market itself. This book explores the relationship between the two, examining the civil underpinnings of capitalism and investigating the way a civil economy evolves in history and is developed for the future by careful planning.
Severyn T. Bruyn describes how people in three sectors--government, business, and the Third Sector (nonprofits and civil groups)--can develop an accountable, self-regulating, profitable, humane, and competitive system of markets that could be described as a civil economy. He examines how government officials can organize markets to reduce government costs; how local leaders deal with global corporations that would unfairly exploit their community resources; and how employees can become coparticipants in the development of human values in markets.
A Civil Economy is oriented to interdiciplinary studies of the economy, assisting scholars in diverse fields, such as business management, sociology, political science, and economics, in developing a common language to examine civic problems in the marketplace.
As an undergraduate text, it evokes a mode of thought about the development of a self-accountable system of markets. Students learn to understand how the market economy becomes socially accountable and self-reliant, while remaining productive, competitive, and profitable.
Sveryn T. Bruyn is Professor of Sociology, Boston College.
Latin America’s economic performance is mediocre at best, despite abundant natural resources and flourishing neighbors to the north. The perplexing question of how some of the wealthiest nations in the world in the nineteenth century are now the most crisis-prone has long puzzled economists and historians. The Decline of Latin American Economies examines the reality behind the struggling economies of Argentina, Chile, and Mexico.
A distinguished panel of experts argues here that slow growth, rampant protectionism, and rising inflation plagued Latin America for years, where corrupt institutions and political unrest undermined the financial outlook of already besieged economies. Tracing Latin America’s growth and decline through two centuries, this volume illustrates how a once-prosperous continent now lags behind. Of interest to scholars and policymakers alike, it offers new insight into the relationship between political systems and economic development.
Many of today's new democracies are constrained by institutional forms designed by previous authoritarian rulers. In this timely and provocative study, Delia M. Boylan traces the emergence of these vestigial governance structures to strategic behavior by outgoing elites seeking to protect their interests from the vicissitudes of democratic rule.
One important outgrowth of this political insulation strategy--and the empirical centerpiece of Boylan's analysis--is the existence of new, highly independent central banks in countries throughout the developing world. This represents a striking transformation, for not only does central bank autonomy remove a key aspect of economic decision making from democratic control; in practice it has also kept many of the would-be expansionist governments that hold power today from overturning the neoliberal policies favored by authoritarian predecessors.
To illustrate these points, Defusing Democracy takes a fresh look at two transitional polities in Latin America--Chile and Mexico--where variation in the proximity of the democratic "threat" correspondingly yielded different levels of central bank autonomy.
Boylan concludes by extending her analysis to institutional contexts beyond Latin America and to insulation strategies other than central bank autonomy. Defusing Democracy will be of interest to anyone--political scientists, economists, and policymakers alike--concerned about the genesis and consolidation of democracy around the globe.
Delia M. Boylan is Assistant Professor, Harris Graduate School of Public Policy Studies, University of Chicago.
For many decades, underdevelopment in much of the world was blamed variously on capital deficits, exploitation by rich nations, and market-distorting economic policies. The chapters in this volume provide much of the evidence underpinning a growing consensus among development and growth economists that successful economic development depends more fundamentally on the way societies are organized and governed. They argue that "good governance" is a prerequisite to sustained increases in living standards.
The difference between developmental success and failure in this view has little to do with natural resource availability, climate, aid, or developed nations' policies. Rather, it is largely a function of whether incentives within a given society steer wealth-maximizing individuals toward producing new wealth or toward diverting it from others. The chapters, seminal essays written by Mancur Olson and his IRIS Center colleagues, provide theoretical and/or empirical underpinnings for the emerging consensus that differences in the way governments and societies are organized have enormous implications for the structure of incentives faced by politicians, bureaucrats, investors, and workers, which in turn determines the level of a nation's material well-being.
Overall this volume applies tools and concepts from the "New Institutional Economics" to some of the major issues in economic development. It will be of interest to scholars and students of various disciplines--including political science, law, and sociology as well as economics--interested in the determinants of economic development and global economic change. The book will also be of interest to many aid practitioners, particularly those working in anticorruption and public sector reform issues.
Stephen Knack is Senior Research Economist, Development Research Group, the World Bank.
Why are some countries richer than others? Why do some economies grow so much faster than others do? Do economies tend to converge at similar levels of per capita income? Or is catching up simply impossible? These questions have vast implications for human welfare. After a period of lack of interest in growth theory, they are back on the research agenda of mainstream economics. They have also been at the heart of development economics since its inception some decades ago. This book endeavors to answer such questions by blending classical contributions to development theory with recent developments in the economics of growth.
The unifying theme is that early theoretical insights and accumulated empirical knowledge of development economics have much to offer to research in the theory and empirics of economic growth. With the help of a number of recent contributions, the ideas and insights of the classical literature in development economics can be given simple and rigorous formulations. Together, they amount to an approach to growth theory that can overcome the long-recognized empirical shortcomings of neoclassical growth economics, while being free from the objections that can be raised against the new brand of endogenous growth theory.
In addition to an original thesis on the contribution that early development theory can make to the research program of modern growth economics, the book provides professional and research economists and graduate students with an evaluation of the strengths and limitations of the different strands of inquiry in the modern economics of growth. In addition it presents findings on comparative growth performance across countries.
Jaime Ros is Professor of Economics and Faculty Fellow of the Helen Kellogg Institute of International Studies, University of Notre Dame.
While endogenous growth theory has claimed success in modeling various factors of growth and providing an analysis of sustainable economic growth, most of the growth models in published work are for closed economies. The omission of international trade, which is often regarded as the engine of growth, greatly reduces their usefulness. The theory of international trade, on the other hand, is characterized by models that are mainly static. While interest in the dynamics of trade has been growing, there is still little work in this area. The success of the newly industrialized economies that have adopted trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies.
The work collected here serves to bridge the "old" growth theory and "new" growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade. The first chapter surveys endogenous growth and international trade and critically reviews the endogenous growth theory with a unified framework, covering the work on both closed and open economies. Three chapters examine the dynamics of some basic trade models; two chapters focus on growth and trade with endogenous accumulation of human and public capital; two chapters on economic growth, technological progress, and international trade; and two chapters on growth and international factor movements.
Contributors include Eric W. Bond, Theo S. Eicher, Rolf Färe, Oded Galor, Shawna Grosskopf, Bjarne S. Jensen, Pantelis Kalaitzidakis, Shoukang Lin, Ngo Van Long, Kazuo Nishimura, Koji Shimomura, Kathleen Trask, Stephen J. Turnovsky, Pham Hoang Van, Henry Wan, Jr., Chunyan Wang, and Kar-yiu Wong.
Bjarne S. Jensen is Associate Professor of Economics, Copenhagen Business School. Kar-yiu Wong is Professor of Economics, University of Washington, Seattle.
Articulate and provocative, Richardo Ffrench-Davis offers the most comprehensive and timely assessment available of Chilean economic reform, from the military dictatorship of Pinochet in the 1970s up to the "reforms of reforms" made by the democratic governments in the 1990s.
Written in accessible and readable prose, Economic Reforms in Chile begins with an overview of the Chilean economy during the last fifty years. This historical time frame is divided into three periods of economic reform. The first period covers the Pinochet regime, during which the more orthodox neoliberalism was implemented. The second period includes the Pinochet dictatorship, during which economic policy shifted toward pragmatism, particularly in the areas of trade and finance; it also includes the crisis of 1982 and its effects. The third period begins in 1990 with the return to democratic elections and the significant reforms to prior reforms. This section also examines the search for growth-with-equity, success in investment and growth performance, macroeconomic sustainability, and the reduction of poverty. Ffrench-Davis addresses several "paradoxes," or results that defy the expectations of policymakers, in order to analyze the significance of comprehensive macroeconomic equilibrium and its implications for sustainable stability, growth, and equity.
Economic Reforms in Chile will be of interest to economists, political scientists, and policymakers involved with the economies of emerging and developing countries.
Ricardo Ffrench-Davis is Principal Regional Advisor, ECLAC, Santiago, and Professor of Economics, University of Chile.
The Economics of Aging
Edited by David A. Wise University of Chicago Press, 1988 Library of Congress HQ1064.U5E26 1988 | Dewey Decimal 305.260973
The Economics of Aging presents results from an ongoing National Bureau of Economic Research project. Contributors consider the housing mobility and living arrangements of the elderly, their labor force participation and retirement, the economics of their health care, and their financial status. The goal of the research is to further our understanding both of the factors that determine the well-being of the elderly and of the consequences that follow from an increasingly older population with longer individual life spans. Each paper is accompanied by critical commentary.
The Evolution of Agrarian Institutions studies the unexpectedly slow and uneven growth of private agriculture in postsocialist East-Central Europe. Comparing developments in Hungary and Bulgaria, Mieke Meurs offers an explanation for this slow growth and examines its implications for efficiency and income distribution in postsocialist agriculture.
With the collapse of the state socialist regimes in East-Central Europe, it was widely expected that collectivized agriculture would quickly be remade in the glowing image of China--a patchwork of small, privately run farms yielding rapid increases in output and incomes. However, the European experience has been quite different; while socialist collective farms have disappeared, collective forms of organization have persisted, and private farming has been slow to emerge. Meurs argues that an understanding of the causes of the slow emergence of private farming is essential to effective policy intervention in agriculture. This book contributes to such an understanding through analyzing variations in farm organization and rural market development and comparing agricultural restructuring in Hungary and Bulgaria.
The Evolution of Agrarian Institutions is unique in its combination of original survey data, published data on land use, and published historical data. It also tests two institutionalist explanations for the pace and direction of change in agricultural organization. This book will be of interest to economists, political scientists, sociologists, scholars working in the area of rural development in emerging countries, and anyone with an interest in transitional economics.
Mieke Meurs is Associate Professor of Economics, American University.
The European Union is building step-by-step a new federal system based on states, nations, and regions. In his authoritative and comprehensive book, Dusan Sidjanski describes the formation of the original European Community and the dynamics of the process of integration that has brought the Union to its current state. He then provides a sophisticated analytic framework for considering the future of the Union.
The author argues that federalism is the best antidote to the reemergence of nationalism in Europe. It is also the best guarantee for a peaceful community that balances the claims of national, regional, and local identity against the need for large-scale economies that springs from the forces of globalization, competition, and technical change. The Union preserves diversity within a flexible and innovating European system.
This major study of the development of the European project, informed by a thorough knowledge of the Community and Union over the years and by deep understanding of the relevant literatures in political science and political economy is important for all who study the European Union or work with it as officials and business people.
Dusan Sidjanski is founder and Professor Emeritus of the Department of Political Science, University of Geneva and Professor Emeritus, European Institute. He has authored numerous publications, most recently, The ECE in the Age of Change (United Nations Economic Commission for Europe, United Nations).
Capital mobility is a double-edged sword for emerging economies, as governments must weigh the benefits of investment against the potential economic costs and political consequences of currency crises, devaluations, and instability. Financial Markets Volatility and Performance in Emerging Markets addresses the delicate balance between capital mobility and capital controls as developing countries navigate the convoluted global network of private investors, hedge funds, large corporations, and international institutions such as the International Monetary Fund.
A group of experts here examine rapidly globalizing financial markets with regard to capital flows and crises, domestic credit, international financial integration, and economic policy. Featuring detailed analyses and cross-national comparisons of countries such as Brazil, Argentina, Uruguay, and Korea, this book will shape economists’ and policymakers’ understanding of the effectiveness of restrictions on capital mobility in the world’s most fragile economies.
By tracing out the intersection between the imagined space of the national economy and the gendered construction of "expert" knowledge in development thought, Suzanne Bergeron provides a provocative analysis of development discourse and practice. By elaborating a framework of including/excluding economic subjects and activities in development economics, she provides a rich account of the role that economists have played in framing the contested political and cultural space of development.
Bergeron's account of the construction of the national economy as an object of development policy follows its shifting meanings through modernization and growth models, dependency theory, structural adjustment, and contemporary debates about globalization and highlights how intersections of nation and economy are based on gendered and colonial scripts. The author's analysis of development debates effectively demonstrates that critics of development who ignore economists' nation stories may actually bolster the formation they are attempting to subvert. Fragments of Development is essential reading for those interested in development studies, feminist economics, international political economy, and globalization studies.
At the nation's founding, the fundamental principle underlying American government was liberty, and the nation's new government was designed to protect the rights of individuals. The American founders intended to design a government that would protect the rights of its citizens, and at that time the most serious threat to people's rights was government. Thus, the United States government was designed with a constitutionally limited scope to preserve the rights of individuals and limit the powers of government.
The government's activities during two world wars and the Great Depression greatly increased its involvement in people's economic affairs, and by the time of Lyndon Johnson's Great Society, the transformation was complete. By the end of the twentieth century, the fundamental principle underlying American government had been transformed to democracy, and public policy was designed to further the will of the majority. The result has been a government that is larger and broader in scope.
From Liberty to Democracy examines American political history using the framework of public choice theory to show how American government grew more democratic, and how this resulted in an increase in the size and scope of government. It should appeal to historians, political scientists, and economists who are interested in the evolution of American government but does not assume any specialized training and can be read by anyone interested in American political history.
Randall G. Holcombe is DeVoe Moore Professor of Economics, Florida State University
As populations age and revenues diminish, government and private pension funds around the world are facing insolvency. The looming social security crisis is especially dire for women, who live longer than men but have worked less in the formal labor force. This groundbreaking study examines alternative social security systems and their disparate impacts on men and women. Emphasis is placed on the new multi-pillar systems that combine a publicly managed benefit and a mandatory private retirement saving plan.
The Gender Impact of Social Security Reform compares the gendered outcomes of social security systems in Chile, Argentina, and Mexico, and presents empirical findings from Eastern and Central European transition economies as well as several OECD countries. Women’s positions have improved relative to men in countries where joint pensions have been required, widows who have worked can keep the joint pension in addition to their own benefit, the public benefit has been targeted toward low earners, and women’s retirement age has been raised to equality with that of men. The Gender Impact of Social Security Reform will force economists and policy makers to reexamine the design features that enable social security systems to achieve desirable gender outcomes.
Globalization and Poverty
Edited by Ann Harrison University of Chicago Press, 2007 Library of Congress HC79.P6G664 2007 | Dewey Decimal 339.46
Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance.
Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor?
Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.
This important book compares the growth achieved in Japan and Europe with the frustrated growth in the major societies of mainland Eurasia. More broadly, it is about the conflict in world history between economic growth and political greed. Eric Jones proposes two fundamentally new frameworks. One replaces industrial revolution or great discontinuity as the source of change and challenges the reader to accept early periods and non-western societies as vital to understanding the growth process. The second offers a new explanation in which tendencies for growth were omnipresent but were usually--though not always--suppressed. Finally, the erosion of these negative factors is discussed, explaining the rise of a world economy in which growth has recurred and East Asia takes a prominent place.
Eric Jones has written a substantial new introduction for this edition, which includes discussions of early evidence of growth episodes and the relation of these points to the Industrial Revolution, and the relevance of the East Asian "miracle" to his thesis.
Hollywood's Road to Riches
David Waterman Harvard University Press, 2005 Library of Congress PN1993.5.U6W39 2005 | Dewey Decimal 384.830973
Combining historical and economic analysis, this book shows how, beginning in the 1950s, a largely predictable business has been transformed into a volatile and complex multimedia enterprise now commanding over 80 percent of the world's film business. At the same time, the book asks how the economic forces leading to this success--the forces of audience demand, technology, and high risk--have combined to change the kinds of movies Hollywood produces.
This book brings together Professor Arthur’s pioneering article and provide a comprehensive presentation of his exciting vision of an economics that incorporates increasing returns. After a decade of resistance from economists, these ideas are now being widely discussed and adopted, as Kenneth Arrow recounts in his foreword. In fundamental ways they are changing our views of the working economy.
International Capital Flows in Calm and Turbulent Times analyzes the financial crises of the late 1990s and draws attention to the type of lenders and investors that triggered and deepened the crises. It concentrates on institutional investors and banks and provides detailed analysis of the countries most affected by the 1997-98 Asian financial crisis as well as the Czech Republic and Brazil. It also suggests necessary international financial reforms to make crises less likely.
The book is unique in its scrutiny of the type of lenders and investors that triggered and deepened the crises, focusing particularly on institutional investors and banks; allocation of their assets; the criteria used in this process; and the impact of the nature of the investor on the volatility of different types of capital flow. It addresses such questions as: What determines or triggers massive changes in perceptions and sentiment by different investors and leaders? To what extent does contagion spread not just among countries but between actors? What are the policy implications of this analysis? The book concludes by examining the asymmetries in the financial architecture discussions and implementation and by offering policy proposals.
Too often, innovative individuals and teams come up with new-business ideas only to hit the proverbial wall, become discouraged, and fail to follow through. How can you get more traction with your ideas and see them through to fruition? As with so many things in life, half the battle is knowing what questions to ask. In this book, serial entrepreneur and business professor Jim Price illustrates a simple, yet powerful framework known as the Launch Lens. Price’s method leads innovators through a structured process to clearly define and communicate their concept, distinguish the good ideas from the not-so-good, and lay the cornerstones of the startup planning process.
The Launch Lens is comprised of twenty critical questions or Focal Points, organized according the classic new-business planning categories: problem, solution, market, business model, marketing and sales, finance, capital, and team. The book leads readers through explanations of how to address each question, illustrated by useful examples, tips, and red flags. Already in active use by thousands of innovators – ranging from aspiring entrepreneurs to early-stage startup teams and venture investors, from incubators and accelerators to intrapreneurs within established corporations and non-profits – The Launch Lens can help you bring your new-business concepts into clear focus.
Lessons from East Asia
Danny M. Leipziger, Editor University of Michigan Press, 2001 Library of Congress HC460.5.L47 1997 | Dewey Decimal 338.95
This compilation of case studies and cross-country essays focuses on the role of public policy in the experience of East Asian economies. A major theme running through the volume is regional learning and regional contagion--the spread of that learning. Beginning with the model and experience of Japan and continuing with the impressive achievements of countries originally considered unviable in the 1950s and 1960s, like Korea and Taiwan, contributors demonstrate how regional policy lessons permeated borders easily. The 1980s brought further lessons and flows of capital to the second generation of rapid industrializers. And the 1990s have seen regional contagion benefit new aspirants like Vietnam. As the chapters cumulatively reveal, however, the transferability of lessons depends on the institutional framework in which policy is formulated, the consistency of policy, and the quality of implementation.
Part 1 includes the case studies for the first generation of rapidly developing East Asian economics--the tigers--while Part 2 incorporates the later generation success stories--the cubs--plus the Philippines, a country only now beginning to show significant progress. Part 3 includes cross-country essays on public investment, foreign direct investment, and cross-country patterns that synthesize the lessons learned and propose actions for other development aspirants to pursue.
The essays aim to fill two major gaps--the paucity of country-specific work on the institutional side of development policy and the failure to explain the mixed record of industrial policies in East Asia. The volume will appeal to students, scholars, and policymakers in development economics.
Danny M. Leipziger is Lead Economist, Latin America Region, World Bank.
This title was formally part of the Studies in International Trade Policy Series, now called Studies in International Economics.
Again and again, Latin America has seen the populist scenario played to an unfortunate end. Upon gaining power, populist governments attempt to revive the economy through massive spending. After an initial recovery, inflation reemerges and the government responds with wage an price controls. Shortages, overvaluation, burgeoning deficits, and capital flight soon precipitate economic crisis, with a subsequent collapse of the populist regime. The lessons of this experience are especially valuable for countries in Eastern Europe, as they face major political and economic decisions.
Economists and political scientists from the United States and Latin America detail in this volume how and why such programs go wrong and what leads policymakers to repeatedly adopt these policies despite a history of failure. Authors examine this pattern in Argentina, Brazil, Chile, Mexico, Nicaragua, and Peru—and show how Colombia managed to avoid it. Despite differences in how each country implemented its policies, the macroeconomic consequences were remarkably similar.
Scholars of Latin America will find this work a valuable resource, offering a distinctive macroeconomic perspective on the continuing controversy over the dynamics of populism.
In Managing "Modernity," Rudra Sil examines how institution-builders respond to the competing influences of institutional models and inherited social legacies as they attempt to generate and sustain authority in late-industrializing societies. Through a historical and comparative study of large-scale enterprises in Japan and Russia, the book examines the impact of different institution-building strategies on managerial authority, invoking the experience of postwar Japan to highlight the benefits of a syncretic approach that selectively integrates adaptable features of borrowed institutions with portable norms inherited from preexisting communities.
Managing "Modernity" engages a variety of intellectual perspectives in the social sciences. The theoretical approach represents a conscious effort to overcome the contentious debates in political science and sociology among proponents of historical institutionalism, cultural analysis, and rational-choice theory. The substantive argument draws on, and partially integrates, concepts and findings from comparative politics, economic sociology, industrial relations, organization theory, business management, and the political economy of Japan and Russia.
In light of ongoing debates over the significance and impact of "globalization," the eclectic and integrative approach in Managing "Modernity" offers a fresh and provocative contribution that will interest scholars and graduate students across a variety of disciplines and subfields. It offers compelling insights to anyone generally concerned with the social forces that facilitate or hinder the diffusion of ideas and institutions across national boundaries.
Rudra Sil is Janice and Julian Bers Assistant Professor in the Social Sciences, Department of Political Science, University of Pennsylvania.
This book takes on one of the great questions of the day: Why are some countries enormously rich and others so heartbreakingly poor?
Henry J. Bruton organizes the discussion around three basic ideas. The first is that well-being reflects not only the availability and distribution of goods and services, but also employment, values, institutions, and quality of preferences. The second is that ignorance is ubiquitous; hence growth of well-being depends primarily on commitments to searching and learning. The extent of such commitments is embedded in deep-seated characteristics of the society, its history, and the degree to which it can look ahead. The third is that economic policy-making is largely a matter of muddling through; furthermore, the idea that an economy can be assumed to be in a general equilibrium and can therefore be left to itself must be rejected. The author explores these ideas and their implications for the processes of growth and for policies to facilitate that growth.
The book breaks new ground in its emphasis on ignorance and learning and its generalized definition of well-being. Drawing from contemporary work in evolutionary economics, the economics of technological change, analytical economic history, and the new political economy, this work should be of interest to historians, sociologists, and students of technology, as well as economists. While directly concerned with development, it has implications for labor, trade, economic history, and industrial organization.
Henry J. Bruton is Professor of Economics, Williams College.
After the fall of the Berlin Wall, the countries of East-Central Europe embarked on a journey to transform themselves into democratic capitalist societies. Their governments searched for strategies that would allow them to pursue radical market reforms within the context of nascent democratic politics. Poland adopted a neoliberal strategy that attempted to push through as much reform as possible before an antireform backlash could occur. In the Czech Republic, a social liberal strategy for transformation attempted to combine neoliberal macro-economic policies with social democratic measures designed to avert such a backlash.
A detailed analysis of Poland and the Czech Republic suggests that alternation between strategies has been the secret to the success of East-Central European countries.
This comparative case analysis identifies the significance of reform mistakes during transition and the corrective benefits of policy alternation, its claims illustrated with an in-depth study of privatization policy in the two countries.
Mitchell A. Orenstein delves into the historic struggle to build capitalism and democracy during a decade of post- communist transition in East-Central Europe and develops a model that explains why democratic policy alternation may accelerate policy learning under conditions of uncertainty and constraint.
Out of the Red is accessible to a general audience and as such is suitable for both graduate and undergraduate courses on political economy. It will be of particular interest to economists, political scientists, sociologists, students of postcommunism, and anyone interested in the relations between capitalism and democracy in the contemporary world.
Mitchell A. Orenstein is Assistant Professor of Political Science, Syracuse University.
Polycentric Games and Institutions summarizes contributions to the analysis of institutions made by scholars associated with the Workshop in Political Theory and Policy Analysis at Indiana University.
The readings in this volume illustrate several varieties of institutional analysis. Each reading builds upon the foundation of game theory to address similar sets of questions concerning institutions and self-governance. The chapters in the first section lay out interrelated frameworks for analysis. Section two illustrates the normative component of institutions and their effects on human behavior. Readings in the following two sections detail how these frameworks have been applied to models of specific situations. Section five presents a modeling exercise exploring the functions of monitoring and enforcement, and the sixth section discusses approaches to the problems of complexity that confront individuals playing polycentric games. The final readings provide overviews of experimental research on the behavior of rational individuals.
Contributors include Arun Agrawal, Sue E. S. Crawford, Clark C. Gibson, Roberta Herzberg, Larry L. Kiser, Michael McGinnis, Stuart A. Marks, Elinor Ostrom, Vincent Ostrom, James Walker, Franz J. Weissing, John T. Williams, and Rick Wilson.
Michael McGinnis is Associate Professor, Department of Political Science and Co-Associate Director, Workshop in Political Theory and Policy Analysis, Indiana University.
How do local communities collectively manage those resources that are most important to their own survival or prosperity? Wherever they are located, all communities face similar dilemmas of collective action: how can common goals be realized despite the presence of individual incentives to over-exploit common resources for private gain? The readings collected in Polycentric Governance and Development show the achievements of scholars associated with the Workshop in Political Theory and Policy Analysis at Indiana University in understanding how communities have dealt with dilemmas of collective action. Their analyses also have profound implications for broader issues of development.
The central insight of the research collected in the volume is this: much can be learned by a careful examination of the ways in which local communities have organized themselves to solve collective problems, achieve common aspirations, and resolve conflicts. The first two sections deal with efforts to manage water and other common-pool resources on a relatively small scale. Section three moves to the macro-level of analysis, with particular attention given to examples of constitutional order from Africa, while section four demonstrates that local organizations and informal networks can play essential roles in furthering democratization and development. The concluding section addresses issues at the national level, by linking the practical world of resource management and development policy to the abstract world of the policy analyst. This collection of essays is designed to illustrate how all the pieces fit together and to suggest connections among multiple levels and modes of analysis.
Contributors include Paula C. Baker, William Blomquist, Larry L. Kiser, Ronald J. Oakerson, Elinor Ostrom, Vincent Ostrom, Roger B. Parks, Stephen L. Percy, Charles M. Tiebout, Martha Vandivort, Robert Warren, Gordon P. Whitaker, and Rick Wilson.
Michael McGinnis is Associate Professor, Department of Political Science and Co-Associate Director, Workshop in Political Theory and Policy Analysis, Indiana University.
The study of metropolitan political economies in the United States has provided much of the intellectual inspiration for the research of the Workshop in Political Theory and Policy Analysis at Indiana University. The readings collected in Polycentricity and Local Public Economies present an overview of the results of this research program on police services and metropolitan governance as well as enduring lessons for institutional analysis and public policy.
Polycentricity and Local Public Economies presents both explorations of broad general concepts and specific empirical analyses. The many interactions between the two modes of analysis provide valuable insights for the reader. Readings in the first section cover basic theoretical concepts and analytical distinctions that apply to the study of institutions generally. The second section includes conceptual pieces specifically addressed to the nature of governance in metropolitan areas, while section three reports on a series of empirical studies of police performance. Section four again broadens the focus to highlight the overall organization of local public economies. The final section discusses conceptual advances that have continuing relevance for research and policy debates.
Contributors include William Blomquist, Kathryn Firmin-Sellers, Roy Gardner, Dele Olowu, Elinor Ostrom, Vincent Ostrom, Amos Sawyer, Edella Schlager, Shui Yan Tang, Wai Fung Lam, and James S. Wunsch.
Michael McGinnis is Associate Professor, Department of Political Science and Co-Associate Director, Workshop in Political Theory and Policy Analysis, Indiana University.
The wage arrears crisis has been one of the biggest problems facing contemporary Russia. At its peak, it has involved some $10 billion worth of unpaid wages and has affected approximately 70 percent of the workforce. Yet public protest in the country has been rather limited. The relative passivity of most Russians in the face of such desperate circumstances is a puzzle for students of both collective action and Russian politics. In Protest and the Politics of Blame, Debra Javeline shows that to understand the Russian public's reaction to wage delays, one must examine the ease or difficulty of attributing blame for the crisis.
Previous studies have tried to explain the Russian response to economic hardship by focusing on the economic, organizational, psychological, cultural, and other obstacles that prevent Russians from acting collectively. Challenging the conventional wisdom by testing these alternative explanations with data from an original nationwide survey, Javeline finds that many of the alternative explanations come up short. Instead, she focuses on the need to specify blame among the dizzying number of culprits and potential problem solvers in the crisis, including Russia's central authorities, local authorities, and enterprise managers. Javeline shows that understanding causal relationships drives human behavior and that specificity in blame attribution for a problem influences whether people address that problem through protest.
Debra Javeline is Assistant Professor of Political Science, Rice University.
Zvi Griliches, a world-renowned pioneer in the field of productivity growth, has compiled in a single volume his pathbreaking research on R&D and productivity. Griliches addresses the relationship between research and development (R&D) and productivity, one of the most complex yet vital issues in today's business world. Using econometric techniques, he establishes this connection and measures its magnitude for firm-, industry-, and economy-level data.
Griliches began his studies of productivity growth during the 1950s, adding a variable of "knowledge stock" to traditional production function models, and his work has served as the point of departure for much of the research into R&D and productivity. This collection of essays documents both Griliches's distinguished career as well as the history of this line of thought.
As inputs into production increasingly taking the form of "intellectual capital" and new technologies that are not as easily measured as traditional labor and capital, the methods Griliches has refined and applied to R&D become crucial to understanding today's economy.
Macroeconomics is in disarray. No one approach is dominant, and an increasing divide between theory and empirics is evident.
This book presents both a critique of mainstream macroeconomics from a structuralist perspective and an exposition of modern structuralist approaches. The fundamental assumption of structuralism is that it is impossible to understand a macroeconomy without understanding its major institutions and distributive relationships across productive sectors and social groups.
Lance Taylor focuses his critique on mainstream monetarist, new classical, new Keynesian, and growth models. He examines them from a historical perspective, tracing monetarism from its eighteenth-century roots and comparing current monetarist and new classical models with those of the post-Wicksellian, pre-Keynesian generation of macroeconomists. He contrasts the new Keynesian vision with Keynes's General Theory, and analyzes contemporary growth theories against long traditions of thought about economic development and structural change.
Table of Contents:
1. Social Accounts and Social Relations 1. A Simple Social Accounting Matrix 2. Implications of the Accounts 3. Disaggregating Effective Demand 4. A More Realistic SAM 5. Stock-Flow Relationships 6. A SAM and Asset Accounts for the United States 7. Further Thoughts
2. Prices and Distribution 1. Classical Macroeconomics 2. Classical Theories of Price and Distribution 3. Neoclassical Cost-Based Prices 4. Hat Calculus, Measuring Productivity Growth, and Full Employment Equilibrium 5. Mark-up Pricing in the Product Market 6. Efficiency Wages for Labor 7. New Keynesian Crosses and Methodological Reservations 8. First Looks at Inflation
3. Money, Interest, and Inflation 1. Money and Credit 2. Diverse Interest Theories 3. Interest Rate Cost-Push 4. Real Interest Rate Theory 5. The Ramsey Model 6. Dynamics on a Flying Trapeze 7. The Overlapping Generations Growth Model 8. Wicksell's Cumulative Process Inflation Model 9. More on Inflation Taxes
4. Effective Demand and Its Real and Financial Implications 1. The Commodity Market 2. Macro Adjustment via Forced Saving and Real Balance Effects 3. Real Balances, Input Substitution, and Money Wage Cuts 4. Liquidity Preference and Marginal Efficiency of Capital 5. Liquidity Preference, Fisher Arbitrage, and the Liquidity Trap 6. The System as a Whole 7. The IS/LM Model 8. Keynes and Friends on Financial Markets 9. Financial Markets and Investment 10. Consumption and Saving 11 "Disequilibrium" Macroeconomics 12. A Structuralist Synopsis
5. Short-Term Model Closure and Long-Term Growth 1. Model "Closures" in the Short Run 2. Graphical Representations and Supply-Driven Growth 3. Harrod, Robinson, and Related Stories 4. More Stable Demand-Determined Growth
6. Chicago Monetarism, New Classical Macroeconomics, and Mainstream Finance 1. Methodological Caveats 2. A Chicago Monetarist Model 3. A Cleaner Version of Monetarism 4. New Classical Spins 5. Dynamics of Government Debt 6. Ricardian Equivalence 7. The Business Cycle Conundrum 8. Cycles from the Supply Side 9. Optimal Behavior under Risk 10. Random Walk, Equity Premium, and the Modigliani-Miller Theorem 11. More on Modigliani-Miller 12. The Calculation Debate and Super-Rational Economics
7. Effective Demand and the Distributive Curve 1. Initial Observations 2. Inflation, Productivity Growth, and Distribution 3. Absorbing Productivity Growth 4. Effects of Expansionary Policy 5. Financial Extensions 6. Dynamics of the System 7. Comparative Dynamics 8. Open Economy Complications
8. Structuralist Finance and Money 1. Banking History and Institutions 2. Endogenous Finance 3. Endogenous Money via Bank Lending 4. Money Market Funds and the Level of Interest Rates 5. Business Debt and Growth in a Post-Keynesian World 6. New Keynesian Approaches to Financial Markets
9. A Genus of Cycles 1. Goodwin's Model 2. A Structuralist Goodwin Model 3. Evidence for the United States 4. A Contractionary Devaluation Cycle 5. An Inflation Expectations Cycle 6. Confidence and Multiplier 7. Minsky on Financial Cycles 8. Excess Capacity, Corporate Debt Burden, and a Cold Douche 9. Final Thoughts
10. Exchange Rate Complications 1. Accounting Conundrums 2. Determining Exchange Rates 3. Asset Prices, Expectations, and Exchange Rates 4. Commodity Arbitrage and Purchasing Power Parity 5. Portfolio Balance 6. Mundell-Fleming 7. IS/LM Comparative Statics 8. UIP and Dynamics 9. Open Economy Monetarism 10. Dornbusch 11. Other Theories of the Exchange Rate 12. A Developing Country Debt Cycle 13. Fencing in the Beast
11. Growth and Development Theories 1. New Growth Theories and Say's Law 2. Distribution and Growth 3. Models with Binding Resource or Sectoral Supply Constraints 4. Accounting for Growth 5. Other Perspectives 6. The Mainstream Policy Response 7. Where Theory Might Sensibly Go
Reconstructing Macroeconomics is a stunning intellectual achievement. It surveys an astonishing range of macroeconomic problems and approaches in a compact, coherent critical framework with unfailing depth, wit, and subtlety. Lance Taylor's pathbreaking work in structural macroeconomics and econometrics sets challenging standards of rigor, realism, and insight for the field. Taylor shows why the structuralist and Keynesian insistence on putting accounting consistency, income distribution, and aggregate demand at the center of macroeconomic analysis is indispensable to understanding real-world macroeconomic events in both developing and developed economies. The book is full of new results, modeling techniques, and shrewd suggestions for further research. Taylor's scrupulous and balanced appraisal of the whole range of macroeconomic schools of thought will be a source of new perspectives to macroeconomists of every persuasion. --Duncan K. Foley, New School University
Lance Taylor has produced a masterful and comprehensive critical survey of existing macro models, both mainstream and structuralist, which breaks considerable new ground. The pace is brisk, the level is high, and the writing is entertaining. The author's sense of humor and literary references enliven the discussion of otherwise arcane and technical, but extremely important, issues in macro theory. This book is sure to become a standard reference that future generations of macroeconomists will refer to for decades to come. --Robert Blecker, American University
While there are other books dealing with heterodox macroeconomics, this book surpasses them all in the quality of its presentation and in the careful treatment and criticism of orthodox macroeconomics including its recent contributions. The book is unique in the way it systematically covers heterodox growth theory and its relations to other aspects of heterodox macroeconomics using a common organizing framework in terms of accounting relations, and in the way it compares the theories with mainstream contributions. Another positive and novel feature of the book is that it takes a long view of the development of economic ideas, which leads to a more accurate appreciation of the real contributions by recent theoretical developments than is possible in a presentation that ignores the history of macroeconomics. --Amitava Dutt, University of Notre Dame
The political economic history of Latin America in the post-World War II era has largely been one of underachievement and opportunities lost. This all changed with the wave of market reforms that were implemented in the 1990s. However, the precise role of these reforms as an agent of change is still hotly debated. This in-depth analysis of the Peruvian case argues for an explanation that treats institutional innovation and state reconstruction as necessary conditions for the apparent success of the market in Latin America.
Exploring how state intervention has been both the cause of Latin America's economic downfall in the 1980s and the solution to its recovery, Reinventing the State analyzes three main phases of state intervention: the developmentalism that lasted until 1982, the state in retreat of the 1980s, and the streamlined state of the 1990s. Through a comprehensive examination of the Peruvian experience, the book explains the country's impressive turnaround from the standpoint of institutional modernization and internal state reform.
Written for a broad academic audience, the public-policy community, and the private sector, this book is also meant as a quick primer for any journalist, consultant, or private-sector analyst in need of an overview of the region's market-reform effort and how it has played out in Peru.
Carol Wise is Associate Professor, School of International Relations, University of Southern California.
Bringing together the thoughts of economists, political scientists, anthropologists, philosophers, and agricultural policy professionals, this volume focuses on the issues of sustainability in development. Examining such topics as international trade, political power, gender roles, legal institutions, and agricultural research, the contributors focus on the missing links in theory and practice that have been barriers to the achievement of truly sustainable development.
Any theory of sustainable development must take into account economic, social, and environmental dimensions. Until recently, the question "What is development?" was often answered predominantly from the economist's perspective, with high priority being assigned to expansion of economic output. Social, political, institutional, and ethical aspects have often been neglected. But now that sustainable development has become a broadly accepted concept, it is impossible to maintain a narrowly economistic view of development. For this reason, the varied perspectives offered by the contributors to this volume are crucial to understanding the process of development as it relates to environmental sustainability and human well-being.
The selection of articles is meant to be stimulating and provocative rather than comp-rehensive. They are roughly divided between those dealing with broad theoretical issues concerning the economic, political, and social aspects of development (Part I) and those presenting more applied analysis (Part II). The common thread is a concern for examining which factors contribute to making development socially just and environmentally sound. Rethinking Sustainability will be of interest to economists and social scientists, development professionals, and instructors seeking to offer their students a broad perspective on development issues.
Jonathan Harris is Senior Research Associate, Global Development and Environment Institute at Tufts University, as well as Adjunct Associate Professor of International Economics at Tufts University Fletcher School of Law.
Ruttan advances a model of institutional change, which creates an environment where resource and cultural endowments and technical change can take place. The disequilibria resulting from such changes create opportunities for the design of more efficient institutional arrangements. The design perspective employed in the book stands in sharp contrast to organic or evolutionary perspectives.
With its emphasis on interdisciplinarity, Social Science Knowledge and Economics Developmentis important reading for social scientists, development economists, and in the development studies classroom.
Vernon W. Ruttan is Regents Professor Emeritus in the Department of Applied Economics at the University of Minnesota.
Poland in the 1980s was filled with shuttered restaurants and shops that bore such imaginative names as “bread,” “shoes,” and “milk products,” from which lines could stretch for days on the mere rumor there was something worth buying. But you’d be hard-pressed to recognize the same squares—buzzing with bars and cafés—today. In the years since the collapse of communism, Poland’s GDP has almost tripled, making it the eighth-largest economy in the European Union, with a wealth of well-educated and highly skilled workers and a buoyant private sector that competes in international markets. Many consider it one of the only European countries to have truly weathered the financial crisis.
As the Warsaw bureau chief for the Financial Times, Jan Cienski spent more than a decade talking with the people who did something that had never been done before: recreating a market economy out of a socialist one. Poland had always lagged behind wealthier Western Europe, but in the 1980s the gap had grown to its widest in centuries. But the corrupt Polish version of communism also created the conditions for its eventual revitalization, bringing forth a remarkably resilient and entrepreneurial people prepared to brave red tape and limited access to capital. In the 1990s, more than a million Polish people opened their own businesses, selling everything from bicycles to leather jackets, Japanese VCRs, and romance novels. The most business-savvy turned those primitive operations into complex corporations that now have global reach.
Well researched and accessibly and entertainingly written, Start-Up Poland tells the story of the opening bell in the East, painting lively portraits of the men and women who built successful businesses there, what their lives were like, and what they did to catapult their ideas to incredible success. At a time when Poland’s new right-wing government plays on past grievances and forms part of the populist and nationalist revolution sweeping the Western world, Cienski’s book also serves as a reminder that the past century has been the most successful in Poland’s history.
Emerging from the tradition of Marshall, Knight, Keynes, and Shackle, Time, Ignorance, and Uncertainty in Economic Models is concerned with the character of formal economic analysis when the notions of logical or mechanical time and probabilistic uncertainty and the relatively complete knowledge basis it requires, are replaced, respectively, by historical time, and nonprobabilistic uncertainty and ignorance. Examining that analytical character by constructing and exploring particular models, this book emphasizes doing actual economic analysis in a framework of historical time, nonprobabilistic uncertainty, and ignorance.
Donald W. Katzner begins with an extensive investigation of the distinction between potential surprise and probability. He presents a modified version of Shackle's model of decision-making in ignorance and examines in considerable detail its "comparative statics" and operationality properties. The meaning of aggregation and simultaneity under these conditions is also explored, and Shackle's model is applied to the construction of models of the consumer, the firm, microeconomics, and macroeconomics. Katzner concludes with discussions of the roles of history, hysteresis, and empirical investigation in economic inquiry.
Time, Ignorance, and Uncertainty in Economic Models will be of interest to economists and others engaged in the study of uncertainty, probability, aggregation, and simultaneity. Those interested in the microeconomics of consumer and firm behavior, general equilibrium, and macroeconomics will also benefit from this book.
Donald W. Katzner is Professor of Economics, University of Massachusetts.
Trust, Ethnicity, and Identity deals with the economic role of laws and institutions in achieving social order in a decentralized economy. Specifically, this book considers the coordinating role of three major nonprice institutions--ethnic trading networks, contract law, and gift-exchange--in economizing on transaction costs and thus facilitating the process of exchange in decentralized economies in different historical contexts.
The major unifying theme of the book is this: identity matters when traders operate in an environment characterized by contract uncertainty, where the legal framework for the enforcement of contracts is not well developed. This in turn points out the importance of trust embedded in particularistic exchange relations such as kinship or ethnicity.
One unique facet of this book is that the author uses a property rights--public choice approach--part of the New Institutional Economics--to provide a unifying theoretical framework to explain such diverse exchange institutions as contract law, ethnic trading networks, and gift-exchange, In addition, it goes beyond the New Institutional Economics paradigm by incorporating some crucial concepts from sociology, anthropology, and bioeconomics, such as social structure, social norms, culture, reciprocity, and kin-related altruism. This broad interdisciplinary framework gives Landa's work a relevance beyond economics to law, political science, sociology, anthropology, and bioeconomics.
The rise and decline of American civic life has provoked wide-ranging responses from all quarters of society. Unfortunately, many proposals for improving our communities rely on renewed governmental efforts without a similar recognition that the inflexibility and poor accountability of governments have often worsened society's ills. The Voluntary City investigates the history of large-scale, private provision of social services, the for-profit provision of urban infrastructure and community governance, and the growing privatization of residential life in the United States to argue that most decentralized, competitive markets can contribute greatly to community renewal.
Among the fascinating topics covered are: how mutual-aid societies in America, Great Britain, and Australia provided their members with medical care, unemployment insurance, sickness insurance, and other social services before the welfare state; how private law, known historically as the law merchant, is returning in the form of arbitration; and why the rise of neighborhood associations represents the most comprehensive privatization occurring in the United States today.
The volume concludes with an epilogue that places the discoveries of The Voluntary City within the theory of market and government failure and discusses the implications of these discoveries for theories about the private provision of public goods. A refreshing challenge to the position that insists government alone can improve community life, The Voluntary City will be of special interest to students of history, law, urban life, economics, and government.
David T. Beito is Associate Professor of History, University of Alabama. Peter Gordon is Professor in the School of Policy, Planning, and Development and Department of Economics, University of Southern California. Alexander Tabarrok is Vice President and Research Director, the Independent Institute.
As the world becomes more interconnected through travel and electronic communication, many believe that physical places will become less important. But as Mario Polèse argues in The Wealth and Poverty of Regions, geography will matter more than ever before in a world where distance is allegedly dead.
This provocative book surveys the globe, from London and Cape Town to New York and Beijing, contending that regions rise—or fall—due to their location, not only within nations but also on the world map. Polèse reveals how concentrations of industries and populations in specific locales often result in minor advantages that accumulate over time, resulting in reduced prices, improved transportation networks, increased diversity, and not least of all, “buzz”—the excitement and vitality that attracts ambitious people. The Wealth and Poverty of Regions maps out how a heady mix of size, infrastructure, proximity, and cost will determine which urban centers become the thriving metropolises of the future, and which become the deserted cities of the past. Engagingly written, the book provides insight to the past, present, and future of regions.
A deep question in economics is why wages and salaries don't fall during recessions. This is not true of other prices, which adjust relatively quickly to reflect changes in demand and supply. Although economists have posited many theories to account for wage rigidity, none is satisfactory. Eschewing "top-down" theorizing, Truman Bewley explored the puzzle by interviewing--during the recession of the early 1990s--over three hundred business executives and labor leaders as well as professional recruiters and advisors to the unemployed. By taking this approach, gaining the confidence of his interlocutors and asking them detailed questions in a nonstructured way, he was able to uncover empirically the circumstances that give rise to wage rigidity. He found that the executives were averse to cutting wages of either current employees or new hires, even during the economic downturn when demand for their products fell sharply. They believed that cutting wages would hurt morale, which they felt was critical in gaining the cooperation of their employees and in convincing them to internalize the managers' objectives for the company. Bewley's findings contradict most theories of wage rigidity and provide fascinating insights into the problems businesses face that prevent labor markets from clearing.
Table of Contents:
1. Introduction 2. Methods 3. Time and Location 4. Morale 5. Company Risk Aversion 6. Internal Pay Structure 7. External Pay Structure 8. The Shirking Theory 9. The Pay of New Hires in the Primary Sector 10. Raises 11. Resistance to Pay Reduction 12. Experiences with Pay Reduction 13. Layoffs 14. Severance Benefits 15. Hiring 16. Voluntary Turnover 17. The Secondary Sector 18. The Unemployed 19. Information, Wage Rigidity, and Labor Negotiations 20. Existing Theories 21. Remarks on Theory 22. Whereto from Here?
Notes References Index
Reviews of this book: In Why Wages Don't Fall During A Recession, [Truman Bewley] tackles one of the oldest, and most controversial, puzzles in economics: why nominal wages rarely fall (and real wages do not fall enough) when unemployment is high. But he does so in a novel way, through interviews with over 300 businessmen, union leaders, job recruiters and unemployment counsellors in the north-eastern United States during the early 1990s recession...Mr. Bewley concludes that employers resist pay cuts largely because the savings from lower wages are usually outweighed by the cost of denting workers' morale: pay cuts hit workers' standard of living and lower their self-esteem. Falling morale raises staff turnover and reduces productivity...Mr. Bewley's theory has some interesting implications...[and] has a ring of truth to it. --The Economist
Reviews of this book: This contribution to the growing literature on behavioral macroeconomics threatens to disturb the tranquil state of macroeconomic theory that has prevailed in recent years...Bewley's argument will be hard for conventional macroeconomists to ignore, partly because of the extraordinary thoroughness and honesty with which he evidently conducted his investigation, and the sheer volume of evidence he provides...Although Bewley's work will not settle the substantive debates related to wage rigidity, it is likely to have a profound influence on the way macroeconomists construct models. In particular, the concepts of morale, fairness, and money illusion are almost certain to play a big role in macroeconomic theory. His demonstration that there exist in reality simple, robust behavioral patters that cannot plausibly be founded on traditional maximizing behabior also raises the prospect of a more empirically oriented, more behavioral macroeconomics in the future. --Peter Howitt, journal of Economic Literature
Reviews of this book: I think any scholar interested in labour markets and wage determination should read this well-written, lively, and highly stimulating book...[It] provides a fresh view and a lot of complementary background knowledge about how experienced people in the field see the employment relationship and what is actually crucial. Knowledge of this sort is all too rare in economics, and Truman Bewley's truly impressive study can serve as a role model for future investigations. --Simon G'chter, Journal of Institutional and Theoretical Economics
To call this book a breath of fresh air is an understatement. The direct insights are fascinating, and Truman Bewley's use of them is sharp and insightful. Labor economists and macroeconomists have a lot to think about. --Robert M. Solow, Nobel Laureate, Institute Professor of Economics, Emeritus, Massachusetts Institute of Technology
Truman Bewley set out to conduct a handful of interviews with business executives to gain some theoretical inspiration, and his project blossomed into over 300 interviews with business people, labor leaders and consultants. He is truly the accidental interviewer of economics. Time and again, he found that workers behave like people, not atomistic, selfish economic agents. His insights will engage and enrage economic theorists and empiricists for years to come. --Alan Krueger, Bendheim Professor of Economics and Public Affairs, Princeton University