The Soft Budget Constraint. An introductory study to volume IV of the Life’s Work series

The author’s ideas on the soft budget constraint (SBC) were first expressed in 1976. Much progress has been made in understanding the problem over the ensuing four decades. The study takes issue with those who confine the concept to the process of bailing out loss-making socialist firms. It shows how the syndrome can appear in various organizations and forms in many spheres of the economy and points to the various means available for financial rescue. Single bailouts do not as such generate the SBC syndrome. It develops where the SBC becomes built into expectations. Special heed is paid to features generated by the syndrome in rescuer and rescuee organizations. The study reports on the spread of the syndrome in various periods of the socialist and the capitalist system, in various sectors. The author expresses his views on normative questions and on therapies against the harmful effects. He deals first with actual practice, then places the theory of the SBC in the sphere of ideas and models, showing how it relates to other theoretical trends, including institutional and behavioural economics and theories of moral hazard and inconsistency in time. He shows how far the intellectual apparatus of the SBC has spread in theoretical literature and where it has reached in the process of “canonization” by the economics profession. Finally, he reviews the main research tasks ahead.

Adaptability of nonlinear equilibrum models to central planning

Linear multisectoral models have for long been applied in the Hungarian national economic planning. Price-quantity correspondences and interaction, however, cannot easily be taken into account in the traditional linear framework. Computable general equilibrium modelers in the West have developed techniques which use extensively price-quantity interdependences. However, since they are usually presented with the controversial strict neoclassical interpretation, the possibility of their adaptation to socialist planning models has been concaled. This paper reflects on some results of a research investigating the possible adaptation of eqailibrium modeling techniques to central planning models.

An analysis of the labor market situation of vocational students based on national and international data

The article focuses on the labour market situation and opportunities of the Hungarian vocational students. After briefly placing the topic in an international context, the study introduces the findings of the Hungarian empirical researches. Due to the differences between the various national education systems, it is not easy to make international comparisons; therefore I chose former socialist countries with characteristics similar to those of Hungary. When comparing the relevant data, it became clear that obtaining a diploma provides more advantages in Hungary. Hungarian researches suggest that vocational schools mostly attract students with poor competence test scores at the end of primary school. Also a significant proportion of these students are disadvantaged. Vocational students are the most likely to drop out of the system and their return to the school later is sporadic at best. Although a completed VET improves their employment conditions and prospects, many of the graduates will leave their profession or do unskilled labour. Their labour income varies greatly depending on their type of trade and experience gained.

Social construction of economic exchanges: A Weberian approach

The subject-matter of this dissertation is the social construction of economic exchanges, with an emphasis on market transactions. Applying a Weberian approach, the dissertation analyzes the social construction of economic exchanges at the following analytical levels: the agency-level, the institutional-structural level and the comparative-historical level. At the agency-level, the dissertation explores the role that human actors and social actions play in economic exchanges, especially market transactions. Theoretically elaborated and empirically examined is the assumption of market-economic exchanges as particular types of social action. At the institutional-structural level, the dissertation examines the relations of society and culture to market-economic exchanges. The assumption that the market economy is situated in and influenced by a broader social-cultural framework is advanced and evaluated in light of empirical findings. At the comparative-historical level, the dissertation engages in an analysis of the social construction of economic exchanges across various societies and over time. The assumption of the historical specificity of the market economy is reexamined, and the social construction of economic exchanges in traditional, capitalist and post-socialist societies is subject to comparative investigation. In the conclusion, further theoretical, methodological and empirical implications as well as directions for future analyses are discussed. ^

Re-imagining Yerevan in the post-Soviet era: Urban symbolism and narratives of the nation in the landscape of Armenia's capital

The urban landscape of Yerevan has experienced tremendous changes since the collapse of the Soviet Union and Armenia’s independence in 1991. Domestic and foreign investments have poured into Yerevan’s building sector, converting many downtown neighborhoods into sleek modern districts that now cater to foreign investors, tourists, and the newly rich Armenian nationals. Large portions of the city’s green parks and other public spaces have been commercialized for private and exclusive use, creating zones that are accessible only to the affluent. In this dissertation I explore the rapidly transforming landscape of Yerevan and its connections to the development of contemporary Armenian national identity. This research was guided by principles of ethnographic inquiry, and I employed diverse methods, including document and archival research, structured and semi-structured interviews and content analysis of news media. I also used geographic information systems (GIS) and satellite images to represent and visualize the stark transformations of spaces in Yerevan. Informed by and contributing to three literatures—on the relationship between landscape and identity formation, on the construction of national identity, and on Soviet and post-Soviet cities—this dissertation investigates how messages about contemporary Armenian national identity are being expressed via the transforming landscape of Armenia’s national capital. In it I describe the ways in which abrupt transformations have resulted in the physical and symbolic eviction of residents, introducing fierce public debates about belonging and exclusion within the changing urban context. I demonstrate that the new additions to Yerevan’s landscape and the symbolic messages that they carry are hotly contested by many long-time residents, who struggle for inclusion of their opinions and interests in the process of re-imagining their national capital. This dissertation illustrates many of the trends that are apparent in post-Soviet and post-Socialist space, while at the same time exposing some unique characteristics of the Armenian case.

ALBA: A Political Tool for Venezuela’s Foreign Policy

Despite its founding by Hugo Chávez on the heels of the failed Free Trade Area for the Americas (FTAA) negotiations which took place November 2003, the Bolivarian Alliance for the Americas (ALBA, as it is known for its Spanish acronym) has evolved into a political tool that uses “social power” to facilitate Venezuela‟s positioning as the leader of the anti-U.S. agenda in the region. Fostering political favors and goodwill through the financing of social development projects, ALBA has created a political environment whereby countries on the take and their respective leaders seem deterred from taking public opposing viewpoints to Chávez. To that end, it has provided billions in economic aid to several nations in Latin American and the Caribbean, winning their favor and support for its policies. To date, ALBA counts on eight member nations. Besides Venezuela, it includes Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Nicaragua, and Saint Vincent and the Grenadines. It also has several observer nations, among them, Grenada, Haiti, Paraguay, Uruguay, and a non-Latin American country, Syria. Throughout its recent history Venezuela has used its oil wealth to pursue political capital. Under the Chávez government it is doing so as part of a strategic effort countering the U.S. Following Cuba‟s demise in the region as the anti-American socialist camp leader, Chávez is attempting to step into Cuba‟s shoes, picking up where Cuba left off over a decade ago and has used the ALBA as a mechanism to help promote his foreign policy. Relying on its own resources, not those of the Soviet Union as Cuba once did, Venezuela has already shown its influence in the international arena, challenging U.S. positions at the Organization of American States (OAS), the United Nations, and even in matters having little if nothing to do with the region, such as Iran‟s nuclear proliferation. Taking advantage of Venezuela‟s oil prices bonanza, Chávez has been spreading economic aid throughout the region, funding several development projects. From stepping in to buy Bolivia‟s soy beans when the U.S. ceased doing so, to helping finance and construct an airport in Dominica, Venezuela‟s ALBA has provided assistance to many states in the region. As in the past, Venezuela has invested significantly both in time and money in the Caribbean, providing development assistance and oil at a discount to Haiti, St. Kitts and Nevis, and the Dominican Republic, although the latter two are neither member nor observer states of ALBA. The aid Chávez has been spreading around may be coming at a cost. It seems it has begun to cause cracks within the CARICOM community, where ALBA already counts on six of its 15 members, leading experts and leaders in the region to question traditional alliances to each other and the U.S. Yet, ALBA‟s ability to influence through aid is dependent on the Venezuelan economy. Its success hinges on continued Venezuelan oil sales at stable prices and the ability of Chávez to remain in power.

Latin America and the Caribbean in 2011 and Beyond: A conversation among Latin America and Caribbean Specialists.

For the first time in more than fifty years, the domestic and external conflicts in Latin America and the Caribbean (LAC) are not primarily ideological in nature. Democracy continues to thrive and its promise still inspires hope. In contrast, the illegal production, consumption, and trading of drugs – and its links to criminal gangs and organizations – represent major challenges to the region, undermining several States’ already weak capacity to govern. While LAC macroeconomic stability has remained resilient, illegal economies fill the region, often offering what some States have not historically been able to provide – elements of human security, opportunities for social mobility, and basic survival. Areas controlled by drug trafficking organizations (DTOs) are now found in Central America, Mexico, and the favelas of Rio de Janeiro and São Paulo, reflecting their competition for land routes and production areas. Cartels such as La Familia, Los Zetas, and Primeiro Comando da Capital (PCC-Brazil), among others, operate like trade and financial enterprises that manage millions of dollars and resources, demonstrating significant business skills in adapting to changing circumstances. They are also merciless in their application of violence to preserve their lucrative enterprises. The El Salvador-Guatemala-Honduras triangle in Central America is now the most violent region in the world, surpassing regions in Africa that have been torn by civil strife for years. In Brazil’s favelas and Guatemala’s Petén region, the military is leaving the barracks again; not to rule, however, but to supplement and even replace the law enforcement capacity of weak and discredited police forces. This will challenge the military to apply lessons learned during the course of their experience in government, or from the civil wars that plagued the region for nearly 50 years during the Cold War. Will they be able to conduct themselves according to the professional ethics that have been inculcated over the past 20 years without incurring violations of human rights? Belief in their potential to do good is high according to many polls as the Armed Forces still enjoy a favorable perception in most societies, despite frequent involvement in corruption. Calling them to fight DTOs, however, may bring them too close to the illegal activities they are being asked to resist, or even rekindle the view that only a “strong hand” can resolve national troubles. The challenge of governance is occurring as contrasts within the region are becoming sharper. There is an increasing gap between nations positioned to surpass their “developing nation” status and those that are practically imploding as the judicial, political and enforcement institutions fall further into the quagmire of illicit activities. Several South American nations are advancing their political and economic development. Brazil in particular has realized macro-economic stability, made impressive gains in poverty reduction, and is on track to potentially become a significant oil producer. It is also an increasingly influential power, much closer to the heralded “emerging power” category that it aspired to for most of the 20th century. In contrast, several Central American States have become so structurally deficient, and have garnered such limited legitimacy, that their countries have devolved into patches of State controlled and non-State-controlled territory, becoming increasingly vulnerable to DTO entrenchment. In the Caribbean, the drug and human trafficking business also thrives. Small and larger countries are experiencing the growing impact of illicit economies and accompanying crime and violence. Among these, Guyana and Suriname face greater uncertainty, as they juggle both their internal affairs and their relations with Brazil and Venezuela. Cuba also faces new challenges as it continues focusing on internal rather than external affairs and attempts to ensure a stable leadership succession while simultaneously trying to reform its economy. Loosening the regime’s tight grip on the economy while continuing to curtail citizen’s civil rights will test the leadership’s ability to manage change and prevent a potential socio-economic crisis from turning into an existential threat. Cuba’s past ideological zest is now in the hands of Venezuela’s President Hugo Chavez, who continues his attempts to bring the region together under Venezuelan leadership ideologically based on a “Bolivarian” anti-U.S. banner, without much success. The environment and natural disasters will merit more attention in the coming years. Natural events will produce increasing scales of destruction as the States in the region fail to maintain and expand existing infrastructure to withstand such calamities and respond to their effects. Prospects for earthquakes, tsunamis, and hurricanes are high, particularly in the Caribbean. In addition, there are growing rates of deforestation in nearly every country, along with a potential increase in cross-sector competition for resources. The losers might be small farmers, due to their inability to produce quantities commensurate to larger conglomerates. Regulations that could mitigate these types of situations are lacking or openly violated with near impunity. Indigenous and other vulnerable populations, including African descendants, in several Andean countries, are particularly affected by the increasing extraction of natural resources taking place amongst their terrain. This has led to protests against extraction activities that negatively affect their livelihoods, and in the process, these historically underprivileged groups have transitioned from agenda-based organization to one that is bringing its claims and grievances to the national political agenda, becoming more politically engaged. Symptomatic of these social issues is the region’s chronically poor quality of education that has consistently failed to reduce inequality and prepare new generations for jobs in the competitive global economy, particularly the more vulnerable populations. Simultaneously, the educational deficit is also exacerbated by the erosion of access to information and freedom of the press. The international panorama is also in flux. New security entities are challenging the old establishment. The Union of South American Nations, The South American Defense Council, the socialist Bolivarian Alliance, and other entities seem to be defying the Organization of American States and its own defense mechanisms, and excluding the U.S. And the U.S.’s attention to areas in conflict, namely Iraq, Afghanistan, and Pakistan – rather than to the more stable Latin America and Caribbean – has left ample room for other actors to elbow in. China is now the top trading partner for Brazil. Russian and Iran are also finding new partnerships in the region, yet their links appear more politically inclined than those of China. Finally, the aforementioned increasing commercial ties by LAC States with China have accelerated a return to the preponderance of commodities as sources of income for their economies. The increased extraction of raw material for export will produce greater concern over the environmental impact that is created by the exploitation of natural resources. These expanded trade opportunities may prove counterproductive economically for countries in the region, particularly for Brazil and Chile, two countries whose economic policies have long sought diversification from dependence on commodities to the development of service and technology based industries.

Israel, You Rascals

Mark Steel started doing stand-up in 1982 in England, around the circuit of bizarre gigs, going on after jugglers and escapologists and people that banged nails into their ear. Then came the Comedy Store and Jongleurs and getting bottled off at The Tunnel, and then a regular slot on Radio 4′s Loose Ends, where he met Joseph Heller, Christopher Lee and Gary Glitter. He did 4 series of ‘The Mark Steel Solution’, one for Radio 5 and the others on Radio 4, and a radio series about cricket, which provoked a whole page of fury in the Daily Express. He presented three series of a sports programme called ‘Extra Time’ which he was very proud of, especially as it went out on Tuesday nights on Radio 5 to possibly no listeners whatsoever. Then there was four series of the lectures on Radio 4, a book called ‘It’s Not a Runner Bean’, another one called ‘Reasons to be Cheerful’, and 3 television series of the lectures on BBC 4 and BBC 2. He has done weekly columns in Socialist Worker, the Guardian and the Independent. He has written a book called ‘Vive le Revolution’, and has been on various panel shows like Have I Got News For You and QI, and on Room 101, and on Question Time he says that he “got very confused when I insulted a member of the Tory shadow cabinet, and afterwards he said I was splendid and invited me for a drink.” And he’s spoken at lots of demonstrations and union meetings and protests, and appeared at quite a few benefits. This essay originally appeared on his website: http://marksteelinfo.com/blog/.

Stray dogs in Bucharest, and the political economy of Romanian socialism. From hunting the “enemies” of Stalinist economy, to poisoning urban parasites, and the rise of urban anarchy: 1950s-1990s.

My paper discusses three different ways in which stray dogs have been intertwined with ideologies of economic and urban development in Romania. I categorize results from archival and ethnographic research under three major time periods: early socialism, late socialism, and post-socialism. During early socialism stray dogs were seen to be damaging the soviet economy by killing species that humans could also hunt, like rabbits. During late socialism, stray dogs appeared as the enemies of the communist city, and the department of urban sanitation was given orders to poison dogs with strychnine. Finally, the increasing number of stray dogs in Bucharest after the collapse of communism was seen as a direct result of former communist demolitions, and was also taken as a sign of the collapsing state. Through such examples my paper discusses how the state and particular population groups have seen dogs as parts of an unwanted and dangerous nature, rather than a species that needs to be protected. I argue that distinctions of nature and culture have served discourses of civilization and the view of Bucharest as a model socialist, and then European city. Throughout my paper I juxtapose the treatment of stray dogs with other, more “valued” urban natures like the protection of parks, the wide-spread hobby of pigeon breeding during socialist years, the most recent debate on saving the rural area of Rosia Montana from non-environmentally friendly methods of gold extraction, and the current trend of healthy eating and living.

Ballots for Equality: An Approach to the Radical Tradition in U.S. Electoral Politics

Posing radical challenges to structural inequality is the defining quality of the Left. What role electoral politics might play in such processes is a dilemma of radical politics, the contours of which vary by historical and national contexts. For the U.S. Left there is a distinctive aspect of the dilemma directly related to the failure of a "Left" party of even the most moderate social democratic type to take root, creating a seemingly never ending debate over the value if any of "third party" progressive organizing. This debate is current, as illustrated by three divergent approaches; independent left electoral politics (Socialist Alternative), organizing within the less conservative of the dominant parties (Progressive Democrats of America), and a social movement focus outside the electoral process (Occupy Movement). The present day examples of alternative Left strategies noted here in passing are but three of many such specific organizational options for progressive politics. This article does not seek to advocate for any one of these options to the exclusion of the others but rather seeks to provide historical perspective.

Work-life Balance and Gender Regime After the Economic Transition

Work-life balance (WLB) is a key issue in our societies in which there is increasing pressure to be permanently available on demand and to work more intensively, and when due to technological change the borders between work and private life appear to be dissolving. However, the social, institutional and normative frames of a region have a huge impact on how people experience work and private life, where the borders between these spheres lie and how much control individuals have in managing these borders. Based on these arguments, this editorial to the special issue Work-life balance/imbalance: individual, organisational and social experiences in Intersections. EEJSP draws attention to the social institutions, frameworks and norms which have an effect on experience, practices and expectations about work-life balance. Concerning the time horizon, this editorial focuses on the change of regime as a reference point since socialist and post-socialist eras differ significantly, although there is still some continuity between them. The authors of this introduction offer an overview of the situation in CEE (Central and Eastern Europe) based mainly on examples of Visegrad countries.

The Catholic Church and revolution in Ireland

Despite the involvement of radical socialists like James Connolly and the Irish Citizen Army in the 1916 Rising and the unanimous passing of the Democratic Programme (a socialist manifesto for the new Government) by the First Dáil in 1919, the Irish state has since its inception exhibited a highly conservative approach to social and economic policy, and politics generally in Ireland, North or South, have never faced a serious challenge from those seeking radical change. Several factors have played a part in this and this article focuses on one of these - the power and conservatism of the Catholic Church and its influence in shaping the political landscape. Despite a decline in recent years, the Church remains influential north and south of the Border in education provision, the current debates in relation to abortion and in culturally important aspects of life - baptism, communion and burial. In the past the Church’s political influence among Ireland’s majority Catholic community had been even more pronounced. The article begins by looking at the Church’s attitude to revolutionary change in Ireland historically before focusing on its influence in the North during the Stormont years and during the more recent ‘Troubles’ – 1969 - 98. It shows how the Church attempted to influence political thought and discourse in Ireland when it was at the height of its power. Whilst it is true that the Church was not a monolith, and there have always been individual priests who have adopted a more radical approach, the general thrust of the Church was conservative, attempting to ally itself with the power elites of the day where possible. It is this influence which appears to have stood the test of time despite attempts in past generations to radicalise the Irish population.

Uncomfortable 'truths' and the centenary anniversary of the 1916 Rising in Ireland

How to deal with uncomfortable ‘truths’ from the past has long posed problems for historians and politicians alike and this is exemplified by attempts to ‘deal with’ the centenary anniversary of the 1916 Easter Rising in Ireland. How do we recognise the revolutionary ‘heroes’ of the past and their contribution to the building of the new ‘nation’ state to which we may pledge allegiance, without exposing the contradictions inherent in the way that ‘nation’ state has transformed, subverted and indeed corrupted many of the ideas for which they fought? More controversially, how do we honour the actions of revolutionaries in the past which led to death and destruction in pursuance of a grand ideal, while at the same time condemning others today who claim to have been likewise engaged, using similar methods, during the recent ‘Troubles’ (1969-98 and counting)? Attempts by the Irish state to deal with the centenary seem to illustrate the point.

Continuidades y rupturas en el proceso de centralización de la administración sanitaria argentina (1880-1945)

El objetivo del trabajo es presentar el proceso de centralización administrativa de la repartición sanitaria nacional. Para ello se analizan, en primer lugar y con la intención de situar el problema en un plazo más largo, los límites que debió afrontar el Departamento Nacional de Higiene desde el momento de su creación, en 1880, para avanzar en sus intenciones centralizadoras. Entre ellos se encuentran su escasa autonomía administrativa, las superposiciones jurisdiccionales con otras dependencias del Estado, las indefiniciones respecto de su supremacía jerárquica, la resistencia de las provincias, los municipios fuertes y las asociaciones benéficas y los conflictos de proyectos al interior mismo de la repartición. En segundo lugar se muestra cómo los sucesivos presidentes del Departamento Nacional de Higiene asumieron ese límite para su gestión y apostaron a la organización interna de la repartición antes que al desafío de la centralización de la asistencia sanitaria. Su estrategia fue el fortalecimiento de nuevas áreas de incumbencia que constituyeron una agenda que sirvió como base de la definitiva centralización de la administración sanitaria. En esta tarea contaron con el apoyo parlamentario, fundamentalmente de la bancada socialista, que logró convertir en ley durante los años 30 a una serie de nuevas atribuciones del Departamento en aspectos que ligaban la salud con la asistencia social. Por último se analiza un momento clave de este proceso, el primer ensayo de centralización sanitaria a través de la creación, en 1943, de la Dirección Nacional de Salud Pública y Asistencia Social.

José Aricó y la "crisis de civilización" : La búsqueda de una imbricación democrático-socialista para un desarrollo de la "dilatación de la subjetividad" (1979-1986)

Moviéndonos entre la sociología política y la historia intelectual, abordaremos en este trabajo aspectos de la obra del "gramsciano argentino" José María Aricó (1931-1991). Con una reconocida actividad político-intelectual desarrollada en su país durante tres décadas, el golpe militar de 1976 obliga a Aricó a marchar al exilio. Anclado en México, la temática de la transición a la democracia, acuciante en distintos países de América Latina y de Europa, lo hace desembocar en una serie de estudios sobre vínculos entre la tradición democrática y la socialista, sobre la noción de progreso y sobre el preocupante divorcio que entre cultura y política se viene profundizando desde los tiempos de la Segunda Guerra Mundial. Siempre con los escritos de Gramsci latiendo en el núcleo de sus preocupaciones, Aricó regresa a la Argentina en 1983. Considerando que ni el liberalismo, ni el marxismo-leninismo, ni el populismo, ni la socialdemocracia pueden ya contribuir al montaje de un "pensamiento fuerte" de expectativas emancipatorias, profundizando además en la temática de la "dilatación de la subjetividad" y en un manejo desprejuiciado de la obra del intelectual reaccionario alemán Carl Schmitt, Aricó ensaya un recorrido inédito, estimulado por la idea-fuerza de una "democracia social avanzada", capaz de dar respuestas ambiciosas a aquello que viene señalando como una crisis de civilización.