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.

Introduction of soft budget constraint as an analyzing tool into public management. The case of the Hungarian public administration reform

Public management reforms are usually underpinned by arguments that they will make the public administration system more effective and efficient. In practice, however, it is very hard to determine whether a given reform will improve the efficiency and effectiveness of the public administration system in the long run. Here, I shall examine how the concept of the soft budget constraint (SBC) introduced by János Kornai (Kornai 1979, 1986; Kornai, Maskin & Roland 2003) can be applied to this problem. In the following, I shall describe the Hungarian public administration reforms implemented by the Orbán government from 2010 onward and analyze its reforms, focusing on which measures harden and which ones soften the budget constraint of the actors of the Hungarian public administration system. In the literature of economics, there is some evidence-based knowledge on how to harden/soften the budget constraint, which improves/reduces the effectiveness and hence the efficiency of the given system. By using the concept of SBC, I also hope to shed some light on the rationale behind the Hungarian government’s introduction of such a contradictory reform package. Previously, the concept of SBC was utilized narrowly in public management studies, mostly in the field of fiscal federalism. My goal is to apply the concept to a broader area of public management studies. My conclusion is that the concept of SBC can significantly contribute to public management studies by deepening our knowledge on the reasons behind the success and failure of public administration reforms.

Soft power as the new norm: How the Chinese-Russian strategic partnership (soft) balances American hegemony in an era of unipolarity

This study explores how great powers not allied with the United States formulate their grand strategies in a unipolar international system. Specifically, it analyzes the strategies China and Russia have developed to deal with U.S. hegemony by examining how Moscow and Beijing have responded to American intervention in Central Asia. The study argues that China and Russia have adopted a soft balancing strategy of to indirectly balance the United States at the regional level. This strategy uses normative capabilities such as soft power, alternative institutions and regionalization to offset the overwhelming material hardware of the hegemon. The theoretical and methodological approach of this dissertation is neoclassical realism. Chinese and Russian balancing efforts against the United States are based on their domestic dynamics as well as systemic constraints. Neoclassical realism provides a bridge between the internal characteristics of states and the environment which those states are situated. Because China and Russia do not have the hardware (military or economic power) to directly challenge the United States, they must resort to their software (soft power and norms) to indirectly counter American preferences and set the agenda to obtain their own interests. Neoclassical realism maintains that soft power is an extension of hard power and a reflection of the internal makeup of states. The dissertation uses the heuristic case study method to demonstrate the efficacy of soft balancing. Such case studies help to facilitate theory construction and are not necessarily the demonstrable final say on how states behave under given contexts. Nevertheless, it finds that China and Russia have increased their soft power to counterbalance the United States in certain regions of the world, Central Asia in particular. The conclusion explains how soft balancing can be integrated into the overall balance-of-power framework to explain Chinese and Russian responses to U.S. hegemony. It also suggests that an analysis of norms and soft power should be integrated into the study of grand strategy, including both foreign policy and military doctrine.

The Impact of Hurricane Georges on Soft-Bottom, Back Reef Communitites: Site- and Species-Specific Effects in South Florida Seagrass Beds

Seagrass beds are the dominant benthic marine communities in the back reef environment of the Florida Keys. At a network of 30 permanent monitoring stations in this back reef environment, the seagrass Thalassia testudinum Banks & Soland. ex Koenig was the most common marine macrophyte, but the seagrasses Syringodium fi liforme Kuetz., and Halodule wrightii Aschers., as well as many taxa of macroalgae, were also commonly encountered. The calcareous green macroalgae, especially Halimeda spp. and Penicillus spp., were the most common macroalgae. The passage of Hurricane Georges on September 25, 1998 caused an immediate loss of 3% of the density of T. testudinum, compared to 19% of the S. fi liforme and 24% of the calcareous green algae. The seagrass beds at three of the stations were completely obliterated by the storm. Stations that had little to moderate sediment deposition recovered from the storm within 1 yr, while the station buried by 50 cm of sediment and the two stations that experienced substantial erosion had recovered very little during the 3 yrs after the storm. Early colonizers to these severely disturbed sites were calcareous green algae. Hurricanes may increase benthic macrophyte diversity by creating disturbed patches with the landscape, but moderate storm disturbance may actually reduce macrophyte diversity by removing the early successional species from mixed-species seagrass beds.

Single Events in a COTS Soft-Error Free SRAM at Low Bias Voltage Induced by 15-MeV Neutrons

This paper presents an experimental study of the sensitivity to 15-MeV neutrons of Advanced Low Power SRAMs (A-LPSRAM) at low bias voltage little above the threshold value that allows the retention of data. This family of memories is characterized by a 3D structure to minimize the area penalty and to cope with latchups, as well as by the presence of integrated capacitors to hinder the occurrence of single event upsets. In low voltage static tests, classical single event upsets were a minor source of errors, but other unexpected phenomena such as clusters of bitflips and hard errors turned out to be the origin of hundreds of bitflips. Besides, errors were not observed in dynamic tests at nominal voltage. This behavior is clearly different than that of standard bulk CMOS SRAMs, where thousands of errors have been reported.

A HARD PUSH FOR SOFT SKILLS: AN EXAMINATION OF POLICY AND RESEARCH ON NON-COGNITIVE SKILLS IN CANADIAN K-12 SCHOOLING

Non-cognitive skills have caught the attention of current education policy writers in Canada. Within the last 10 years, almost every province has produced a document including the importance of supporting non-cognitive skills in K-12 students in the classroom. Although often called different names (such as learning skills, cross curricular competencies, and 20th Century Skills) and occasionally viewed through different lenses (such as emotional intelligence skills, character skills, and work habits), what unifies non-cognitive skills within the policy documents is the claim that students that are strong in these skills are more successful in academic achievement and are more successful in post-secondary endeavors. Though the interest from policy-makers and educators is clear, there are still many questions about non-cognitive skills that have yet to be answered. These include: What skills are the most important for teacher’s to support in the classroom? What are these skills’ exact contributions to student success? How can teachers best support these skills? Are there currently reliable and valid measures of these skills? These are very important questions worth answering if Canadian teachers are expected to support non-cognitive skills in their classrooms with an already burdened workload. As well, it can begin to untangle the plethora of research that exists within the non-cognitive realm. Without a critical look at the current literature, it is impossible to ensure that these policies are effective in Canadian classrooms, and to see an alignment between research and policy. Upon analysis of Canadian curriculum, five non-cognitive skills were found to be the most prevalent among many of the provinces: Self-Regulation, Collaboration, Initiative, Responsibility and Creativity. The available research literature was then examined to determine the utility of teaching these skills in the classroom (can students improve on these skills, do these skills impact other aspects of students’ lives, and are there methods to validly and reliably assess these skills). It was found that Self-Regulation and Initiative had the strongest basis for being implemented in the classroom. On the other hand, Creativity still requires a lot more justification in terms of its impact on students’ lives and ability to assess in the classroom.

Casting a Critical 'I' Over Caffrey's Irish Ale: Soft Words, Strongly Spoken

By employing a research approach, known as subjective personal introspection - the critical "I" - four co-researchers wrote extensive autobiographical essays on their responses to an advertisement for Caffrey's Irish Ale. By delving in the shamelessly subjective this paper draws out the main themes by comparing, contrasting and critiquing the introspective insights of these four critical "I's". In doing so, it demonstrates that there can be no grounded interpretations of an advertising text, that the critical "I" can yield uniquely illuminating insights, and that its chief power, as a research method, lies in its capacity for creativity, imagination and discovery.

Veranderende rol van de controller. Balans tussen het toepassen van hard en soft controls

Het doel van dit onderzoek is om inzicht te geven in de ontwikkeling van de rol van de controller en te onderzoeken hoe de rol van de controller zich verhoudt tot het gebruik van hard en soft controls. Het onderzoek is uitgevoerd in de vorm van een case study waarbij de onderzoeksdata op twee manieren is verzameld. Ten eerste is door middel van desk research op basis van brondocumenten een overzicht in de tijd gemaakt van de gehanteerde management control systemen bij de casusorganisatie, zijnde vier lokale Rabobank vestigingen. Ten tweede is voor het beantwoorden van de deelvragen en hoofdvraag gebruik gemaakt van semigestructureerde interviews. De ontwikkelingen binnen management control laten zien dat de invulling hiervan bij de casusorganisatie veranderd is en dat management control niet meer alleen vraagt om hard controls. In de casusorganisatie zijn de hard controls duidelijk ingericht en laten de onderzoeksresultaten zien dat soft controls wel worden uitgevoerd maar niet concreet zijn geformuleerd en ingericht. Ten aanzien van het toepassen van hard of soft controls blijkt dat de nadruk ligt op hard controls. De verhouding lijkt samen te hangen met de verschillen in inrichting van de control afdeling en fase waarin de vier verschillende lokale banken zich bevinden. De ontwikkeling die reeds heeft plaatsgevonden en de verwachte ontwikkelingen ten aanzien van de taken van de controller en het toepassen van het type controls, duiden op een verschuiving van traditioneel controlewerk naar een controller die steeds meer betrokken is bij de business en gesprekspartner is van management en directie. De rol van de controller heeft zich doorontwikkeld en is veranderd van achteraf controle uitvoeren (controleur-rol) naar een veel bredere partner-rol die ook aan de voorkant met de business probeert mee te denken en management en directie ondersteunt bij organisatieveranderingen. Het bewustzijn ten aanzien van het inzetten van verschillende type controls, passend bij de doelstelling en situatie, is de laatste jaren toegenomen. Naast sturing op resultaat-, vindt nu ook actiesturen en medewerker- en leiderschapssturing plaats. De rol van de controller is over tijd veranderd, maar er heeft geen duidelijke verschuiving plaatsgevonden in het toepassen van het type controls van hard naar soft.

Soft Budget Constraints and Regional Industrial Policy: Reinterpreting the Rise and fall of De Lorean

The rise and fall of De Lorean Motor Cars Limited (DMCL) has been traditionally interpreted as either the result either of John De Lorean’s psychological flaws or as confirming the supposed limitations of activist industrial policy. However, when the episode is examined in greater historical detail, neither of these interpretations are compelling. The reinterpretation outlined here draws on institutional analysis as well as a range of archival sources, much of it previously unreleased. The inefficiencies within the original contractual agreement are highlighted. The lack of credibility associated with this agreement was in turn traceable to the institutional environment (with its associated risk-reward implications) under which industrial policy operated. This environment had a political element - it had been distorted by the Troubles and the resulting fears policymakers had of a cumulative causation relationship between violence and unemployment. Officials in Belfast, against Treasury opposition, advocated state-led entrepreneurship as a policy response.

Meningeal alveolar soft part sarcoma confirmed by characteristic ASPCR1-TFE3 fusion

Sarcoma metastatic to the brain is uncommon and rarely occurs as the initial manifestation of tumor. Alveolar soft part sarcoma (ASPS) is a rare but well-studied subtype of sarcoma. A 39-year-old man presented with seizures due to a left temporal meningeal-enhancing lesion with striking brain edema on MRI. The patient underwent neurosurgical resection for suspected meningioma. Histology showed large tumor cells clustering and forming small nests, in places with pseudoalveolar pattern. Diastase-resistant periodic acid-Schiff revealed very rare granular and rod-like cytoplasmic inclusions. Immunohistochemistry showed convincing positivity only with vimentin and smooth muscle actin. The histological features were strongly suggestive of ASPS. At the molecular level RT-PCR and sequencing analysis demonstrated ASPCR1-TFE3 fusion confirming the histological diagnosis of ASPS. There was no evidence of primary extracranial tumor by physical examination and on chest and abdominal CT scan 11 months after presentation. ASPS typically arise from the soft tissues of the extremities and develop multiple metastatic deposits usually with a long clinical course. This case may represent primary meningeal ASPS although metastatic deposit from an undiscovered primary site cannot be entirely excluded.