Applying a public policy evaluation methodology for local socio-economic impacts: an exploration in realistic modelling

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FDI and the labour market: a review of the evidence and policy implications

This paper presents a series of results concerning the labour-market impact of inward foreign direct investment (FDI) in the UK. The paper demonstrates that one of the crucial impacts of FDI is to increase wage inequality and the use of relatively more skilled labour in the domestic firms. This result is found to be a combination of two effects. First, the entry by a multinational enterprise (MNE) increases the demand for skilled workers in an industry or region, thus increasing wage inequality. Second, technology spillovers occur from foreign to domestic firms. As a result of these spillovers, relative demand for skilled workers increases in the domestic firms, further contributing to aggregate wage inequality and skill upgrading. The paper also considers how FDI impacts upon skill shares by productivity differentials between foreign and domestic firms. Finally, the policy implications of this are discussed, from the perspective of regional development, and the likely effectiveness of attracting FDI to reduce structural unemployment.

Evaluating EU regional policy

This article presents a challenge to the ways in which EU regional policy has been evaluated in the past. Given the complexity of the 'policy framework' and its objectives, it is argued that existing evaluation methodologies are not only inappropriate but create a real risk of misleading policy-makers in their search for identifying which programmes and initiatives are the most effective in tackling the scale of regional disparity that exists across the European Union. For example, the search for an 'average effect' of intervention, whether in terms of jobs created or GVA generated, does not adequately recognise the context within which policy operates. The article argues that only by attempting to adopt a realist evaluation framework can the discourse on effective regional policy be advanced. Examples are provided from a body of work on the evaluation of business support interventions in the UK as well as a broader study of the way in which regulations impacts upon firm performance and growth. This methodological approach provides an opportunity for the evaluator to identify the causal mechanisms which connect the range of policy interventions and their outcomes. In brief, it has greater potential to inform the policy-maker as to what works and, more importantly, in what contexts.

A conceptual framework of accounting policy choice under SSAP 20

Purpose - To provide a framework of accounting policy choice associated with the timing of adoption of the UK Statement of Standard Accounting Practice (SSAP) No. 20, "Foreign Currency Translation". The conceptual framework describes the accounting policy choices that firms face in a setting that is influenced by: their financial characteristics; the flexible foreign exchange rates; and the stock market response to accounting decisions. Design/methodology/approach - Following the positive accounting theory context, this paper puts into a framework the motives and choices of UK firms with regard to the adoption or deferment of the adoption of SSAP 20. The paper utilises the theoretical and empirical findings of previous studies to form and substantiate the conceptual framework. Given the UK foreign exchange setting, the framework identifies the initial stage: lack of regulation and flexibility in financial reporting; the intermediate stage: accounting policy choice; and the final stage: accounting choice and policy review. Findings - There are situations where accounting regulation contrasts with the needs and business objectives of firms and vice-versa. Thus, firms may delay the adoption up to the point where the increase in political costs can just be tolerated. Overall, the study infers that firms might have chosen to defer the adoption of SSAP 20 until they reach a certain corporate goal, or the adverse impact (if any) of the accounting change on firms' financial numbers is minimal. Thus, the determination of the timing of the adoption is a matter which is subject to the objectives of the managers in association with the market and economic conditions. The paper suggests that the flexibility in financial reporting, which may enhance the scope for income-smoothing, can be mitigated by the appropriate standardisation of accounting practice. Research limitations/implications - First, the study encompassed a period when firms and investors were less sophisticated users of financial information. Second, it is difficult to ascertain the decisions that firms would have taken, had the pound appreciated over the period of adoption and had the firms incurred translation losses rather than translation gains. Originality/value - This paper is useful to accounting standards setters, professional accountants, academics and investors. The study can give the accounting standard-setting bodies useful information when they prepare a change in the accounting regulation or set an appropriate date for the implementation of an accounting standard. The paper provides significant insight about the behaviour of firms and the associated impacts of financial markets and regulation on the decision-making process of firms. The framework aims to assist the market and other authorities to reduce information asymmetry and to reinforce the efficiency of the market. © Emerald Group Publishing Limited.

Social policy in the UK

Social policy is a very complex area, and this chapter has only offered a brief summary of the most significant recent changes to the UK welfare state. Social policy expenditure has fluctuated over time, with considerable increases through the late 1990s and 2000s, but reductions planned in many areas by the current Coalition Government. The UK welfare state has slowly come to terms with women’s engagement in the labour market, but failed to overcome the persistent inequality between male and female incomes. While competition and choice have been introduced in many areas of the welfare state, their impacts have been varied and contested. Aside from health and education, UK social policy has become increasingly ‘residualised’, with many transfers now means-tested and services like social housing becoming less widely available. At the same time, however, different patterns can be observed across the UK, particularly in the fields of social care and education, where different arrangements apply in different nations. Future developments in social policy are likely to be shaped by the challenge of an ageing population, and the recently hardened public attitude towards particular groups of social policy beneficiaries.

Comparing transport emissions and impacts for energy recovery from domestic waste (EfW): centralised and distributed disposal options for two UK Counties

Many local authorities (LAs) are currently working to reduce both greenhouse gas emissions and the amount of municipal solid waste (MSW) sent to landfill. The recovery of energy from waste (EfW) can assist in meeting both of these objectives. The choice of an EfW policy combines spatial and non-spatial decisions which may be handled using Multi-Criteria Analysis (MCA) and Geographic Information Systems (GIS). This paper addresses the impact of transporting MSW to EfW facilities, analysed as part of a larger decision support system designed to make an overall policy assessment of centralised (large-scale) and distributed (local-scale) approaches. Custom-written ArcMap extensions are used to compare centralised versus distributed approaches, using shortest-path routing based on expected road speed. Results are intersected with 1-kilometre grids and census geographies for meaningful maps of cumulative impact. Case studies are described for two counties in the United Kingdom (UK); Cornwall and Warwickshire. For both case study areas, centralised scenarios generate more traffic, fuel costs and emitted carbon per tonne of MSW processed.

Technology policy and technological innovation in the People's Republic of China

The objective of this research is to unveil the dynamics of technological innovation in planned economies in transition. It is proposed in the thesis that all innovation systems in the world, in fact, consist of certain configurations of market and hierarchy. These systems have always been shifting from one existing market-hierarchy mix to a new one, which is expected to be more conducive to technological innovation and economic development. Current reforms in many planned economies in transition reflect this theoretical proposition. A research framework is constructed to include three main dimensions for the study of a specific innovation system, i.e. Arrangements, Achievements and Actors. China, which has undergone reforms since 1978, is chosen as the empirical basis of the research. The research examined technology policy and technological innovation in China between 1978 to 1988. The thesis starts from Arrangements - R&D System in China and Its Reform. The thesis illustrates reforms in the R&D system in relation to government technology policy. There exist coherent government efforts to promote innovations through various plans, and the planning process incorporates both market and command elements. The institutional structure of Chinese R&D system remains still vertically departmentalised, but horizontal links are created through the market. Secondly, Achievements - Performance of Chinese R&D System is assessed through patterns of technological innovation. Data from National Awards for S&T Progress (1978-1988) are included in a substantial database, which is used to generate patterns of technological innovation and patterns of innovating organisations. These patterns were presented and interpreted in relation to geographical differences, sectoral differences, typological differences, forms of co-operation and the impacts of S&T policy and reform. The third dimension is study on Actors - Innovation in Applied R&D institutes. Through semi-structured interviews and questionnaire survey, internal structure and research management are analysed in the light of ongoing reforms. The reform of R&D funding system greatly affected the way applied R&D institutes operate. Both organisational and individual incentives for innovating are increasingly associated with economic or material benefits. The research suggests there is a need to put reforms in the R&D system into a wider societal and political context. Some general attributes of applied R&D institutes are also discussed in the thesis.

The formation and impact of hazard control policy:a study of the regulation of white lead paint in Britain

Government regulation of industrial hazards is examined in the context of the economic and technical processes of industrial development. Technical problems and costs of control are considered as factors in both the formation and impact of regulation. This thesis focuses on an historical case-study of the regulation of the hazard to painting workers from the use of lead pigments in paint. A regulatory strategy based on the prohibition of lead paints gained initial acceptance within the British state in 1911, but was subsequently rejected in favour of a strategy that allowed continued use of lead paint subject to hygiene precautions. The development of paint technology and its determinants, including concern about health hazards, are analysed, focusing on the innovation and diffusion into the paint industry of the major white pigments: white lead (PbC03 .PB(OH)2)and its substitutes. The process of regulatory development is examined, and the protracted and polarised regulatory d~bate contrasted to the prevailing 'consensual' methods of workplace regulation. The rejection of prohibition is analysed in terms of the different political and technical resources of those groups in conflict over this policy. This highlights the problems of consensus formation around such a strategy, and demonstrates certain constraints on state regulatory activity, particularly regarding industrial development. Member-states of the International Labour Organisation agreed to introduce partial prohibition of lead paint in 1921. Whether this was implemented is related to the economic importance of lead and non-lead metal and pigment industries to a nation. An analysis is made of the control of lead poisoning. The rate of control is related to the economic and technological trajectory of the regulated industry. Technical and organisational characteristics are considered as well as regulatory factors which range from voluntary compliance and informal pressures to direct legal requirements. The implications of this case-study for the analysis of the development and impacts of regulation are assessed.

Development of science and technology policy for Kuwait

The status of Science and Technology in KUWAIT has been analysed in order to assess the extent of the application of Science and Technology needed for the Country's development. The design and implementation of a Science and Technology Policy has been examined to identify the appropriate technology necessary to improve KUWAIT's socio-economic-industrial structures. Following a general and critical review of the role of Science and Technology in the developing countries, the author has reviewed the past and contemporary employment of Science and Technology for development.of various sectors and the existence, if any, of any form (explicit, implicit, or both) of a Science and Technology Policy in KUWAIT. The thesis is structured to evaluate almost all of the sectors in KUWAIT which utilise Science and/or Technology, the effectiveness of such practices, their policymaking process, the channels by which policies were transformed into sources of influence through Governmental action and the impact that various policy instruments at the disposal of the the Government had on the development of S & T capabilities. The author has studied the implications of the absence of a Science and Technology Policy in Kuwait by examining some specific case studies, eg, the absence of a Technology Assessment Process and the negative impacts resulting from this; the ad-hoc allocation of the research and development budget instead of its being based on a percentage of GNP; the limitations imposed on the development of indigenous contracting companies and consultancy and engineering design offices; the impacts of the absence of Technology Transfer Centre, and so forth. As a consequence of the implications of the above studies, together with the negative results from the absence of an explicit Science and Technology Policy, eg, research and development activities do not relate to the national development plans, the author suggests that a Science and Technology Policy-Making Body should be established to formulate, develop, monitor and correlate the Science and Technology Activities in KUWAIT.

Public opinion and the making of foreign policy in the 'New Europe':a comparative study of Poland and Ukraine

Since 1989, by drawing a new boundary between the EU and its eastern neighbours, the European Union has created a frontier that has been popularly described in the frontier states as the new 'Berlin Wall'. This book is the first comparative study of the impact of public opinion on the making of foreign policy in two eastern European states that live on either side of the new European divide: Poland and Ukraine. Focusing on the vocal, informed segment of public opinion and drawing on results of both opinion polls and a series of innovative focus groups gathered since the Orange Revolution, Nathaniel Copsey unravels the mystery of how this crucial segment of the public impacts on foreign policy-makers in both states. In developing this argument, Copsey takes a closer look at the business community and how important economic factors are in forming public opinion. Filling a gap in the literature currently available on the topic, this book presents a fresh approach to our understanding of Polish-Ukrainian relations and how the public's view of the past influences contemporary politics. It is an ideal resource for those researching in the field of Russian and Eastern European Studies.

Extreme weather events and construction SMEs:vulnerability, impacts and responses

Purpose – The UK experienced a number of Extreme Weather Events (EWEs) during recent years and a significant number of businesses were affected as a result. With the intensity and frequency of weather extremes predicted in the future, enhancing the resilience of businesses, especially of Small and Medium-sized Enterprises (SMEs), who are considered as highly vulnerable, has become a necessity. However, little research has been undertaken on how construction SMEs respond to the risk of EWEs. In seeking to help address this dearth of research, this investigation sought to identify how construction SMEs were being affected by EWEs and the coping strategies being used. Design/methodology/approach – A mixed methods research design was adopted to elicit information from construction SMEs, involving a questionnaire survey and case study approach. Findings – Results indicate a lack of coping strategies among the construction SMEs studied. Where the coping strategies have been implemented, these were found to be extensions of their existing risk management strategies rather than radical measures specifically addressing EWEs. Research limitations/implications – The exploratory survey focused on the Greater London area and was limited to a relatively small sample size. This limitation is overcome by conducting detailed case studies utilising two SMEs whose projects were located in EWE prone localities. The mixed method research design adopted benefits the research by presenting more robust findings. Practical implications – A better way of integrating the potential of EWEs into the initial project planning stage is required by the SMEs. This could possibly be achieved through a better risk assessment model supported by better EWE prediction data. Originality/value – The paper provides an original contribution towards the overarching agenda of resilience of SMEs and policy making in the area of EWE risk management. It informs both policy makers and practitioners on issues of planning and preparedness against EWEs.

Small businesses and flood impacts:the case of the 2009 flood event in Cockermouth

Flooding can have a devastating impact on businesses, especially on small- and medium-sized enterprises (SMEs) who may be unprepared and vulnerable to the range of both direct and indirect impacts. SMEs may tend to focus on the direct tangible impacts of flooding, limiting their ability to realise the true costs of flooding. Greater understanding of the impacts of flooding is likely to contribute towards increased uptake of flood protection measures by SMEs, particularly during post-flood property reinstatement. This study sought to investigate the full range of impacts experienced by SMEs located in Cockermouth following the floods of 2009. The findings of a questionnaire survey of SMEs revealed that businesses not directly affected by the flooding experienced a range of impacts and that short-term impacts were given a higher significance. A strong correlation was observed between direct, physical flood impacts and post-flood costs of insurance. Significant increases in the costs of property insurance and excesses were noted, meaning that SMEs will be exposed to increased losses in the event of a future flood event. The findings from the research will enable policy makers and professional bodies to make informed decisions to improve the status of advice given to SMEs. The study also adds weight to the case for SMEs to consider investing in property-level flood risk adaptation measures, especially during the post flood reinstatement process. © 2012 Blackwell Publishing Ltd and The Chartered Institution of Water and Environmental Management (CIWEM).

Impacts of flooding on SMEs and their relevance to chartered surveyors:

This is the final report of the RICS Education Trust funded “Developing Flood Expert Knowledge in Chartered Surveyors – DEFENCES” research project. The UK has endured a number of major flood events in recent years, and the UK Environment Agency (2009a) identified that about 5.2million properties in England, amounting to one in six, are at risk of flooding. The impacts of flooding include direct and indirect impacts and can be particularly devastating for small and medium-sized enterprises (SMEs) who are generally more vulnerable to such events than larger business organisations. Recent flood events have established how costly flooding can be to the SME sector (Pitt, 2008, ABI, 2010), which has given greater impetus to the need to improve the resilience of at-risk SMEs. A lack of professional advice on flood protection and adaptation measures represents a potential barrier to the uptake of such interventions by SMEs. A recent Royal Institution of Chartered Surveyors (RICS) survey, as quoted in Defra (2008) notes that, although a majority of chartered surveyors would like to work in this area of practice (flood risk assessment and adaptation), they are conscious of gaps in their competency, knowledge and understanding. The research project sought to contextualise this broader issue and investigate how chartered surveyors can bridge the gap in providing professional flood advice to SMEs. Further, a shift in the UK government policy on flood risk management is evident, where at-risk communities are urged to adapt to flooding. This places greater emphasis on property-level flood adaptation, providing further impetus for Chartered Surveyors to be involved. Findings of the research will be of interest to the RICS, the RICS Flood steering Group, practicing surveyors generally, SMEs, business support and policy making organisations.

Culture and the psychological impacts of natural disasters: Implications for disaster management and disaster mental health

In recent decades, natural disasters have caused extensive losses and damages to human psychological wellbeing, economy, and society. It has been argued that cultural factors such as social values, traditions, and attachment to a location influence communities facing and responding to natural disasters. However, the issue of culture in disaster mental health seems to have received limited attention in policy and practice. This review highlights the importance of cultural background in the assessment of vulnerability to the psychological impacts of disasters, disaster preparedness, and provision of disaster mental health services. In particular, this paper suggests the importance of cultural competence in the planning and delivery of effective disaster mental health services. In order to address the varying circumstances of people with different cultural backgrounds, disaster mental health services must be developed in a culturally sensitive manner. Development of culturally competent disaster mental health services requires significant changes in policy making, administration, and direct service provision