Jackson v JH Watson Property Investment Ltd.

Comments on the Chancery Division decision in Jackson v JH Watson Property Investment Ltd on whether a landlord was liable in nuisance to a long leaseholder in respect of damage caused to the demised property by a building defect which pre-dated the grant of the lease or whether the principle of caveat lessee applied. Considers whether the defect amounted to "disrepair" within the meaning of the landlord's repairing covenant.

Financing of SME's: an asset side story

The main sources of financing for small and medium sized enterprises (SMEs) are equity (internally generated cash), trade credit paid on time, long and short term bank credits, delayed payment on trade credit and other debt. The marginal costs of each financing instrument are driven by asymmetric information (cost of gathering and analysing information) and transactions costs associated with non-payment (costs of collecting and selling collateral). According to the Pecking Order Theory, firms will choose the cheapest source in terms of cost. In the case of the static trade-off theory, firms choose finance so that the marginal costs across financing sources are all equal, thus an additional Euro of financing is obtained from all the sources whereas under the Pecking Order Theory the source is determined by how far down the Pecking Order the firm is presently located. In this paper, we argue that both of these theories miss the point that the marginal costs are dependent of the use of the funds, and the asset side of the balance sheet primarily determines the financing source for an additional Euro. An empirical analysis on a unique dataset of Portuguese SME's confirms that the composition of the asset side of the balance sheet has an impact of the type of financing used and the Pecking Order Theory and the traditional Static Trade-off theory are rejected.

Sewerage works: public investment in sewers saves lives

Without sewers, more children die, and those who survive suffer in terms of physical growth and educational attainment. Donor policies and advice on sewers are wrong in three key respects. Sewers in cities are not optional extras but essential. Sewers need to be financed by taxation not user charges. And sewers in cities are affordable for most countries, many of whom are already investing in sewers in their cities. The aid needed is concentrated in a few countries, and this is affordable for rich countries.

Challenges to Slovakia and Poland health policy decisions: use of investment treaties to claim compensation for reversal of privatisation/liberalisation policies

Investment treaties, and possibly the EU Treaty itself, are being used by multinational companies Penta and Eureko to try and force the Slovak government to pay compensation for reversing health privatisation and liberalisation policies. Similar action has been used against the Polish government by Eureko to win compensation worth nearly 2 billion Euros and a policy commitment to further privatisation.