Somali State Failure: Players, Incentives and Institutions

In Somalia the central government collapsed in 1991 and since then state failure became a widespread phenomenon and one of the greatest political and humanitarian problems facing the world in this century. Thus, the main objective of this research is to answer the following question: What went wrong? Most of the existing literature on the political economy of conflict starts from the assumption that state in Africa is predatory by nature. Unlike these studies, the present research, although it uses predation theory, starts from the social contract approach of state definition. Therefore, rather than contemplating actions and policies of the rulers alone, this approach allows us to deliberately bring the role of the society – as citizens – and other players into the analyses. In Chapter 1, after introducing the study, a simple principal-agent model will be developed to check the logical consistence of the argument and to make the identification of causal mechanism easier. I also identify three main actors in the process of state failure in Somalia: the Somali state, Somali society and the superpowers. In Chapter 2, so as to understand the incentives, preferences and constraints of each player in the state failure game, I in some depth analyse the evolution and structure of three central informal institutions: identity based patronage system of leadership, political tribalism, and the Cold War. These three institutions are considered as the rules of the game in the Somali state failure. Chapter 3 summarises the successive civilian governments’ achievements and failures (1960-69) concerning the main national goals, national unification and socio-economic development. Chapter 4 shows that the military regime, although it assumed power through extralegal means, served to some extent the developmental interest of the citizens in the first five years of its rule. Chapter 5 shows the process, and the factors involved, of the military regime’s self-transformation from being an agent for the developmental interests of the society to a predatory state that not only undermines the interests of the society but that also destroys the state itself. Chapter 6 addresses the process of disintegration of the post-colonial state of Somalia. The chapter shows how the regime’s merciless reactions to political ventures by power-seeking opposition leaders shattered the entire country and wrecked the state institutions. Chapter 7 concludes the study by summarising the main findings: due to the incentive structures generated by the informal institutions, the formal state institutions fell apart.

The Impact of New Capital Requirements on the Portfolio Decisions of Finnish Pension Institutions

This paper examines the potential impact of new capital requirements on asset allocations of Finnish pension institutions. We describe the new requirements and consider portfolio construction to minimize regulatory capital, given the investor’s preferred level of expected return. Results identify portfolio transactions that enhance expected return without increasing capital needs. Regulation calls for portfolio diversification and prudence in management, but this paper shows that market participants can exploit inconsistencies in regulation. Possible future consequences include capital outflows from the pension system and an unintended decrease in pre-funding of old-age pensions.

Appropriate Institutions and Economic Growth - one size fits no-one

Modern-day economics is increasingly biased towards believing that institutions matter for growth, an argument that has been further enforced by the recent economic crisis. There is also a wide consensus on what these growth-promoting institutions should look like, and countries are periodically ranked depending on how their institutional structure compares with the best-practice institutions, mostly in place in the developing world. In this paper, it is argued that ”non-desirable” or “second-best” institutions can be beneficial for fostering investment and thus providing a starting point for sustained growth, and that what matters is the appropriateness of institutions to the economy’s distance to the frontier or current phase of development. Anecdotal evidence from Japan and South-Korea is used as a motivation for studying the subject and a model is presented to describe this phenomenon. In the model, the rigidity or non-rigidity of the institutions is described by entrepreneurial selection. It is assumed that entrepreneurs are the ones taking part in the imitation and innovation of technologies, and that decisions on whether or not their projects are refinanced comes from capitalists. The capitalists in turn have no entrepreneurial skills and act merely as financers of projects. The model has two periods, and two kinds of entrepreneurs: those with high skills and those with low skills. The society’s choice of whether an imitation or innovation – based strategy is chosen is modeled as the trade-off between refinancing a low-skill entrepreneur or investing in the selection of the entrepreneurs resulting in a larger fraction of high-skill entrepreneurs with the ability to innovate but less total investment. Finally, a real-world example from India is presented as an initial attempt to test the theory. The data from the example is not included in this paper. It is noted that the model may be lacking explanatory power due to difficulties in testing the predictions, but that this should not be seen as a reason to disregard the theory – the solution might lie in developing better tools, not better just better theories. The conclusion presented is that institutions do matter. There is no one-size-fits-all-solution when it comes to institutional arrangements in different countries, and developing countries should be given space to develop their own institutional structures that cater to their specific needs.

Scientometric analysis of some disciplines: Comparison of Indian institutions with other international institutions

We have carried out a three-part study comparing the research performance of Indian institutions with that of other international institutions. In the first part, the publication profiles of various Indian institutions were examined and ranked based on the h-index and p-index. We found that the institutions of national importance contributed the highest in terms of publications and citations per institution. In the second part of the study, we looked at the publication profiles of various Indian institutions in the high-impact journals and compared these profiles against that of the top Asian and US universities. We found that the number of papers in these journals from India was miniscule compared to the US universities. Recognizing that the publication profiles of various institutions depend on the field/departments, we studied the publication profiles of many science and engineering departments at the Indian Institute of Science (IISc), Bangalore, the Indian Institutes of Technology, as well as top Indian universities. Because the number of faculty in each department varies widely, we have computed the publications and citations per faculty per year for each department. We have also compared this with other departments in various Asian and US universities. We found that the top Indian institution based on various parameters in various disciplines was IISc, but overall even the top Indian institutions do not compare favourably with the top US or Asian universities.

System requirement report for ‘Level 2’: national management institutions, Fisheries Department in Cambodia

(51 p.)

Transforming curriculum design: transforming institutions

This briefing looks at lessons and resources from the ongoing Institutional Approaches to Curriculum Design programme that may benefit others undertaking institutional transformation.

Presenting research expertise information online: a guide for higher education institutions

Helping HEIs plan the use of online channels to communicate information about the expertise of researchers within their institution so that it meets the needs of business and community users, as well researchers themselves

System requirement report for Level 2 – national management institutions, for the Bureau of Fisheries and Aquatic Resources in the Philippines

This report presents the findings from a thorough literature review, workshops, and group and individual interviews conducted by STREAM in the Philippines in November and December 2003. The ambitious scope of the report combined with the limited time frame and funding available to compile it necessitated the extensive use of secondary data, including both published and unpublished material written by staff of the agencies / organisations involved, with very limited editing of material used. All possible efforts were made to generate information in participation with the government institutions responsible for managing the fisheries, and all contributors (as well as many other stakeholders) were provided with multiple opportunities to comment on the report content. The contributors are listed on the front page of the report. (Pdf contains 56 pages).

Workshop on Customary Institutions in Indonesia: Do They Have a Role in Fisheries Coastal Area Management? Report 2-5 August 2009, Lombok, Indonesia

Sixty delegates from Indonesia, the Philippines, Thailand, Malaysia and India met at Lombok, Nusa Tenggara Barat (NTB, West Nusa Tenggara) province, Indonesia, during 2-5 August 2009, for the workshop on “Customary Institutions in Indonesia: Do They Have a Role in Fisheries and Coastal Area Management?”. The workshop was organized by the International Collective in Support of Fishworkers (ICSF), in co-operation with Indonesia’s Ministry of Marine Affairs and Fisheries (MMAF) and the Provincial Department of Fisheries and Oceans (DKP) of the Government of NTB. (PDF contains 68 pages)

List of institutions of managerial relevance to the fisheries of Lake Victoria

The list provides addresses of institutions in Kenya, Tanzania and Uganda which are of managerial relevance to the fisheries of Lake Victoria, indicating the relevant area covered

Extractive institutions in colonial Africa

A common explanation for African current underdevelopment is the extractive character of institutions established during the colonial period. Yet, since colonial extraction is hard to quantify and its exact mechanisms are not well understood, we still do not know precisely how colonial institutions affect economic growth today. In this project, I study this issue by focusing on the peculiar structure of trade and labor policies employed by the French colonizers.

First, I analyze how trade monopsonies and coercive labor institutions reduced African gains from trade during the colonial period. By using new data on prices to agricultural producers and labor institutions in French Africa, I show that (1) the monopsonistic character of colonial trade implied a reduction in prices to producers far below world market prices; (2) coercive labor institutions allowed the colonizers to reduce prices even further; (3) as a consequence, colonial extraction cut African gains from trade by over 60%.

Given the importance of labor institutions, I then focus on their origin by analyzing the colonial governments' incentives to choose between coerced and free labor. I argue that the choice of institutions was affected more by the properties of exported commodities, such as prices and economies of scale, than by the characteristics of colonies, such indigenous population density and ease of settlement for the colonizers.

Finally, I study the long-term effects of colonial trade monopsonies and coercive labor institutions. By combining archival data on prices in the French colonies with maps of crop suitability, I show that the extent to which prices to agricultural producers were reduced with respect to world market prices is strongly negatively correlated with current regional development, as proxied by luminosity data from satellite images. The evidence suggests that colonial extraction affected subsequent growth by reducing development in rural areas in favor of a urban elite. The differential impact in rural and urban areas can be the reason why trade monopsonies and extractive institutions persisted long after independence.

A formação do supervisor educacional do Estado do Rio de Janeiro: perfil, competência e ação

Ao observar as instituições escolares do nosso país ao longo da história, vimos surgir um profissional chamado SUPERVISOR ESCOLAR cuja ação não tinha regulamentação e em alguns momentos era visto como autoritário e até mesmo delator dos colegas. De acordo com a teoria educacional esta função apresentou vários nomes, dentre eles, Professor Supervisor Educacional, Inspeção Escolar e Coordenação Pedagógica, fruto de uma ideologia/ação sempre presente. Nesse sentido, a pesquisa que realizamos teve como objetivo traçar o perfil da formação humana e da matriz de competências do Supervisor Educacional, no âmbito do Estado do Rio de Janeiro, identificando a representação desses profissionais em seu campo de atuação. Nesse processo alguns autores nos serviram de base teórica para o tema Supervisão Educacional: Rangel, Valle, Tardiff; para o tema Formação Humana: Gramsci, Lukács, Frigotto; e para o tema Políticas Públicas: Gentili, Sader, Arroyo. O presente trabalho pode contribuir para um melhor entendimento da relação entre poder, gestão e conhecimento nas ações da Supervisão Educacional, dentro de uma pesquisa de perspectiva sócio-histórica, com predominância qualitativa. O âmbito dessa pesquisa foi estadual e o projeto envolveu vinte e sete municípios do Estado do Rio de Janeiro, em Nível Local e Nível Central.

Political Institutions, Technology and Growth: a dynamic panel approach

This paper investigates whether the effect of political institutions on sectoral economic performance is determined by the level of technological development of industries. Building on previous studies on the linkages among political institutions, technology and economic growth, we employ the dynamic panel Generalized Method of Moments (GMM) estimator for a sample of 4,134 country-industries from 61 industries and 89 countries over the 1990-2010 period. Our main findings suggest that changes of political institutions towards higher levels of democracy, political rights and civil liberties enhance economic growth in technologically developed industries. On the contrary, the same institutional changes might retard economic growth of those industries that are below a technological development threshold. Overall, these results give evidence of a technologically conditioned nature of political institutions to be growth-promoting.