Governing the Local: Sovereignty, Social Governance and Community Safety

There has been much commentary about the re-ordering of the relations between nation state government, geographical territory, and populations in the advanced liberal democracies. This is seen as a product of: increasing demographic and cultural diversity due to legal and illegal migration; economic, cultural, and political global interdependence; footloose mobility of capital and the outsourcing of jobs to poorer countries; the growing power of international corporations and financial markets; and the growth of supra-national bodies like the European Union and The North Atlantic Free Trade Association, the World Trade Organisation, and (debatably), the UN. These developments are held to be associated with the gradual demise of the model of the increasingly secular nation state first crystallised by the Treaty of Westphalia in 1648. This conception provided a mutual, guarantee of states’ jurisdiction over territory and populations through their legitimated attempts to monopolise the use of force. Though, the relations between these states have always been asymmetrical and often challenged (Hunter 1998).

Marked Silence, Neo-Feudalistic Reactions and the Stabilized Moral Regime – The Current De- and Reformation of „the Social“

The German chancellor and leader of the German conservative party, Angela Merkel, said in an interview a few weeks ago: “Nobody could have imagined a few months ago to what extent we would be pushed into state intervention programs. Of course, Merkel spoke on, this intervention is not easy for anybody. Therefore, she recommended turning back to the former course as soon as possible” (tagesschau.de, 11. März 2008, zit. nach Bildzeitungsinterview mit Angela Merkel, own translation). The worldwide celebrated new president of the United States, Barack Obama, said in an interview on CBS-News a few weeks before Merkel: “(...) there's no doubt that we have not been able yet to reset the confidence in the financial markets and in the consumer markets and among businesses that allow the economy to move forward in a strong way. And my job as president is gonna be to make sure that we restore that confidence“ (CBS News, 16. November 2008, Obama On Economic Crisis, Transition; http://www.cbsnews.com/stories/2008/11/16/60minutes/main4607893.shtml; Stand: 16. April 2009).

Emergence of Financial Intermediaries in Electronic Markets: The Case of Online P2P Lending

We analyze the role of intermediaries in electronic markets using detailed data of more than 14,000 originated loans on an electronic P2P (peer-to-peer) lending platform. In such an electronic credit market, lenders bid to supply a private loan. Screening of potential borrowers and the monitoring of loan repayment can be delegated to designated group leaders. We find that these market participants act as financial intermediaries and significantly improve borrowers' credit conditions by reducing information asymmetries, predominantly for borrowers with less attractive risk characteristics. Our findings may be surprising given the replacement of a bank by an electronic marketplace.