Switzerland: Think Tanks and Vested Interests in Swiss Policy Making

This paper analyses the role of think tanks in Swiss policy making. Starting from the relationship between interest groups and the state, which has been shaping Swiss policy making for a long time, we hypothesize that these structures offer good possibilities for scientific arguments and ideas to influence the process of policy making. Our observations from a recent example indeed illustrates that think tanks can use the same channels as vested interests to bring in their know-how. Furthermore, we conclude that the characteristics of the political system, e.g. direct democracy and the consensual alignment particularly influence the chances of think tanks to intervene. In this exchange vested interests and think tanks do not really interfere with each other, but rather they complement each other both having.

Nuclear weapons as obstacles to international security

This article argues that nuclear weapons serve no useful purpose in military calculations; moreover, their continued retention invites the dangers of further proliferation and of accidental use. They are thus defined here as obstacles to, rather than as facilitators of, international security. Seven reasons are presented to support this contention, including an assessment of the moral implications and the strategic limitations of nuclear weapons. Despite these limitations, and the recent commitments made by the nuclear weapon states to eliminate their arsenals, nuclear weapons remain central to the strategic doctrines of these states. Several reasons are put forward to explain why this retention continues, including the unchanging nature of strategic mindsets, the presence of vested interests, and now, in the case of the USA at least, a renewed reliance on nuclear weapons, regardless of how appropriate and effective such a strategy might be against emerging terrorist or `rogue state' threats.

The Law of Impersonal Transactions: Meaning and Difficulties

Most economic interactions happen in a context of sequential exchange in which innocent third parties suffer information asymmetry with respect to previous "originative" contracts. The law reduces transaction costs by protecting these third parties but preserves some element of consent by property right holders to avoid damaging property enforcement-e.g., it is they as principals who authorize agents in originative contracts. Judicial verifiability of these originative contracts is obtained either as an automatic byproduct of transactions or, when these would have remained private, by requiring them to be made public. Protecting third parties produces a sort of legal commodity which is easy to trade impersonally, improving the allocation and specialization of resources. Historical delay in generalizing this legal commoditization paradigm is attributed to path dependency-the law first developed for personal trade-and an unbalance in vested interests, as luddite legal professionals face weak public bureaucracies.

The law of impersonal transactions

Most economic interactions happen in a context of sequential exchangein which innocent third parties suffer information asymmetry with respect toprevious "originative" contracts. The law reduces transaction costs byprotecting these third parties but preserves some element of consent byproperty rightholders to avoid damaging property enforcement?e.g., it isthey, as principals, who authorize agents in originative contracts. Judicialverifiability of these originative contracts is obtained either as an automaticbyproduct of transactions or, when these would have remained private, byrequiring them to be made public. Protecting third parties produces a legalcommodity which is easy to trade impersonally, improving the allocationand specialization of resources. Historical delay in generalizing this legalcommoditization paradigm is attributed to path dependency?the law firstdeveloped for personal trade?and an unbalance in vested interests, asluddite legal professionals face weak public bureaucracies.

The third transformation of Japan: An institutional narrative on agglomeration economies in abenomics

Objective of the study The aim of this study is to understand the institutional implications in Abenomics in a spatial context, the contemporary economic reform taking place in Japan, which is to finally end over two decades of economic malaise. For theoretical perspective of choice, this study explores a synthesis of institutionalism as the main approach, complemented by economies of agglomeration in spatial economics, or New Economic Geography (NEG). The outcomes include a narrative with implications for future research, as well as possible future implications for the economy of Japan, itself. The narrative seeks to depict the dialogue between public discourse and governmental communication in order to create a picture of how this phenomenon is being socially constructed. This is done by studying the official communications by the Cabinet along with public media commentary on respective topics. The reform is studied with reference to historical socio-cultural, economic evolution of Japan, which in turn, is explored through a literature review. This is to assess the unique institutional characteristics of Japan pertinent to reform. Research method This is a social and exploratory qualitative study – an institutional narrative case study. The methodological approach was kept practical: in addition to literature review, a narrative, thematic content analysis with structural emphasis was used to construct the contemporary narrative based on the Cabinet communication. This was combined with practical analytic tools borrowed from critical discourse analysis, which were utilized to assess the implicit intertextual agenda within sources. Findings What appears to characterize the discourse is status quo bias that comes in multiple forms. The bias is also coded in the institutions surrounding the reform, wherein stakeholders have vested interests in protecting the current state of affairs. This correlates with uncertainty avoidance characteristic to Japan. Japan heeds the international criticism to deregulate on a rhetorical level, but consistent with history, the Cabinet solutions appear increasingly bureaucratic. Hence, the imposed western information-age paradigm of liberal cluster agglomeration seems ill-suited to Japan which lacks risk takers and a felicitous entrepreneur culture. The Japanese, however, possess vast innovative potential ascribed to some institutional practices and traits, but restrained by others. The derived conclusion is to study the successful intrapreneur cases in Japanese institutional setting as a potential benchmark for Japan specific cluster agglomeration, and a solution to its structural problems impeding growth.

Whither Japan's Economy?

The Japanese economy entered a long recession in spring 1997. Its economic growth has been much lower than in the US and the EU despite large fiscal stimulus packages, a monetary policy which has brought interest rates to zero since 1999, injections of public money to recapitalize banks, and programs of liberalization and deregulation. How could all these policies have failed to bring the Japanese economy back on a sustainable growth path? This paper argues that the failure of Japan's efforts to restore a sound economic environment is the result of having deliberately chosen inappropriate and inadequate monetary and fiscal instruments to tackle the macroeconomic and structural problems that have burdened the Japanese economy since the burst of the financial bubble at the beginning of the 90s. These choices were deliberate, since the "right" policies (in primis the resolution of the banking crisis) presented unbearable political costs, not only for the ruling parties, but also for the bureaucratic and business elites. The misfortunes of the Japanese economy during the long recession not only allow us to draw important economic policy lessons, but also stimulate reflections on the disruptive role on economic policies caused by powerful vested interests when an economy needs broad and deep structural changes. The final part of the paper focuses on ways to tackle Japan's banking crisis. In particular, it explores the Scandinavian solution, which, mutatis mutandis, might serve Japanese policy-makers well.

O debate sobre reformas e regulação e o caso da ANEEL

Este trabalho tem como objetivo verificar em que medida a flexibilização da gestão de recursos humanos na agência reguladora do setor elétrico brasileiro é consistente com a independência regulatória, entendida como autonomia de gestão nas dimensões financeira, técnica e de recursos humanos. A independência das agências reguladoras constitui mecanismo contra os efeitos negativos das ações de interesses privados, ou rent-seekers, e o uso político inadequado, gerador de ineficiências econômicas. O trabalho descreve o processo de constituição da diretoria colegiada, o regime e o quadro de pessoal vigente, e analisa o processo de reestruturação do setor elétrico brasileiro, concluindo que a contratação temporária e a tentativa de implementar regime jurídico diferenciado repete os equívocos e disfunções que caracterizaram a burocracia pública desde os anos trinta.

Monopoly rights can reduce income big time

We study a two–sector version of the neoclassical growth model with coalitions of factor suppliers in the capital producing sectors. We show that if the coalitions have monopoly rights, then they block the adoption of the efficient technology. We also show that blocking leads to a decrease in the productivity of each capital producing sector and to an increase in the relative price of capital; as a result the capital stock and the production fall in each sector. We finally show that the implied fall in the level of per–capita income can be large quantitatively.

Growth and reforms in Latin America and the Caribbean in the 1990s

Includes bibliography

Post-decentralization regional economies and actors -- putting the capacity of Local governments to the test

Decentralization in Indonesia was introduced institutionally in 2001, with a democratization drive promoted by international donors and by the intention of the new government to clear away the centralistic image of Soeharto. Decentralization has had some effects on regional economies and on local government administration. Compared to the period before decentralization, the share of gross regional domestic product and local government finance has increased in Java, though investment and bank borrowing have expanded to the outer islands. In qualitative aspects, decentralization has transferred not only administrative authority but also many new vested interests from the center to regions. Local governments have become more extensive economic actors in regional economies. Regional economic actors now compete actively for such vested interests and have missed the opportunity to create market-friendly regional economies. The government sector should not be a mere rent-seeking economic actor, but should play a role as a facilitator promoting private sector activities in regional economies.

Post-Crisis Economic Reform in Indonesia:Policy for Intervening in Ownership in Historical Perspective

Introduction : Economic reform in Indonesia after the Asian currency crisis is often discussed in parallel with Thailand and South Korea, which were alike hit by the crisis. It should however be noted that what happened in Indonesia was a change of political regime from authoritarianism to democracy, not just a change of government as seen in Thailand and South Korea. Indonesia’s post-crisis reform should be understood in the context of dismantling of the Soeharto regime to seek a new democratic state system. 　　　In the political sphere, dramatic institutional changes have occurred since the downfall of the Soeharto government in May 1998. In comparison, changes in the economic sphere are more complex than the political changes, as the former involve at least three aspects. The first is the continuity in the basic framework of capitalist system with policy orientation toward economic liberalization. In this framework, the policies to overcome the crisis are continued from the last period of the Soeharto rule, under the support system of IMF and CGI (Consultative Group on Indonesia). The second aspect is the impact of the political regime change on the economic structure. It is considered that the structure of economic vested interests of the Soeharto regime is being disintegrated as the regime breaks down. The third aspect is the impact of the political regime change on economic policy-making process. The process of formulating and implementing policies has changed drastically from the Soeharto time. With these three aspects simultaneously at work, it is not so easy to identify which of them is the main cause for a given specific economic phenomenon emerging in Indonesia today. 　　　Keeping this difficulty in mind, this paper attempts to situate the post-crisis economic reform in the broader context of the historical development of Indonesian economic policies and their achievements. We focus in particular on the reform policies for banking and corporate sectors and resulting structural changes in these sectors. This paper aims at understanding the significance of the changes in the economic ownership structure that are occurring in the post-Soeharto Indonesia. Economic policies here do not mean macro economic policies, such as fiscal, financial and trade policies, but refer to micro economic policies whereby the government intervenes in the economic ownership structure. In Section 1, we clarify why economic policies for intervening in the ownership structure are important in understanding Indonesia. Section 2 follows the historical development of Indonesia’s economic policies as specified above, throughout the four successive periods since Indonesia’s independence, namely, the parliamentary democracy period, the Guided Democracy period under Soekarno, the Soeharto-regime consolidation period, and the Soeharto-regime transfiguration period2. Then we observe what economic ownership structure was at work in the pre-crisis last days of the Soeharto rule as an outcome of the economic policies. In Section 3, we examine what structural changes have taken place in the banking and corporate sectors due to the reform policies in the post-crisis and post-Soeharto Indonesia. Lastly in Section 4, we interpret the current reorganization of the economic ownership in the context of the historical transition of the ownership structure, taking account of the changes in the policy-making processes under democratization.

A Hydrodynamic Method For Measuring Aqueous Nanoparticle Surface Interactions

The objectives of this research dissertation were to develop and present novel analytical methods for the quantification of surface binding interactions between aqueous nanoparticles and water-soluble organic solutes. Quantification of nanoparticle surface interactions are presented in this work as association constants where the solutes have interacted with the surface of the nanoparticles. By understanding these nanoparticle-solute interactions, in part through association constants, the scientific community will better understand how organic drugs and nanomaterials interact in the environment, as well as to understand their eventual environmental fate. The biological community, pharmaceutical, and consumer product industries also have vested interests in nanoparticle-drug interactions for nanoparticle toxicity research and in using nanomaterials as drug delivery vesicles. The presented novel analytical methods, applied to nanoparticle surface association chemistry, may prove to be useful in assisting the scientific community to understand the risks, benefits, and opportunities of nanoparticles. The development of the analytical methods presented uses a model nanoparticle, Laponite-RD (LRD). LRD was the proposed nanoparticle used to model the system and technique because of its size, 25 nm in diameter. The solutes selected to model for these studies were chosen because they are also environmentally important. Caffeine, oxytetracycline (OTC), and quinine were selected to use as models because of their environmental importance and chemical properties that can be exploited in the system. All of these chemicals are found in the environment; thus, how they interact with nanoparticles and are transported through the environment is important. The analytical methods developed utilize and a wide-bore hydrodynamic chromatography to induce a partial hydrodynamic separation between nanoparticles and dissolved solutes. Then, using deconvolution techniques, two separate elution profiles for the nanoparticle and organic solute can be obtained. Followed by a mass balance approach, association constants between LRD, our model nanoparticle, and organic solutes are calculated. These findings are the first of their kind for LRD and nanoclays in dilute dispersions.

The parliamentary elections in Ukraine: new hope? EPC Policy Brief, 21 October 2014

Ukraine’s parliamentary elections on 26 October 2014 seem set to be the most important and most challenging the country has ever held. For the first time in Ukraine’s history, the presidential election of Petro Poroshenko in May gave many Ukrainians new hope. His victory seemed to unite the country, being the first president to have won in most of the regions despite the ongoing conflict in the East. However, with many corrupt elites still in power, reforms have become hostage to vested interests and in-fighting which has raised fears of ‘business as usual’. This has made this election campaign set against a backdrop of serious challenges dominating the agenda for the foreseeable future. In this policy brief, Amanda Paul and Svitlana Kobzar explore the status of the reform agenda needed for a stable and democratic Ukraine as well as the challenges in the run up to the election including corruption, energy and EU relations.

The invisible hand... of the Kremlin. Capitalism 'a la russe'. OSW Point of View, February 2007

This study describes the two main economic processes observed in Russia during President Vladimir Putin's second term; renationalisation, and the concentration of economic assets. As a result of these processes, the share of state-owned property has increased and the position of the state in the economy has strengthened. According to the authorities, the wide-range renationalisation of the assets and the construction of superholdings based on the state enterprises are intended to boost Russia's potential and stimulate the development of the whole economy. However, in practice the current ruling elite are using these superholdings to strengthen Russia's position on the international arena and to promote their vested interests.

The role of interoganisational tension and conflict in market creation practice

Markets exist within a world of constant exchanges which form the basis for changes and the creation of new markets. Therefore, it is important to research these exchanges. One of the areas in which market creation can be observed is interorganisational collaborations, as firms increasingly collaborate to create markets. In market creation practice, however, interorganisational tension and conflict can form from divergent approaches and vested interests of the partners. Interorganisational tension represents the opposing intentions of interorganisational forces, and conflict is generated through disagreements. The aim of this research is to investigate interorganisational tension and conflict on market creation practice. Specifically, it attempts to: (i) expand interorganisational tension and conflict and provide insights to these concepts, as well as establishing a two-dimensional interorganisational tension (productive and unproductive) understanding, (ii) explore the interactions between interorganisational tension and conflict, (iii) develop a conceptual framework that explains the level of market creation depending on the effects of interorganisational tension and conflict, (iv) develop a typology of partnering firms based on interorganisational tension and conflict practice. To achieve this aim, and to respond to the research calls, this study follows a grounded theory approach which intends to expand the understanding of interorganisational tension and conflict. According to the findings, a major characteristic of interorganisational tension is its two dimensions: productive and unproductive. However, it is the intertwined nature of tension and conflict that influences market creation. Fundamental to these are the six interorganisational tension and three conflict types revealed by the findings of this study. The core theoretical contributions of the study are a dynamic framework that portrays the dynamic interactions between interorganisational tension and conflict on market creation practice, and a typology of market-creating partnering firms. Collectively, they explicate the development of market creation practice, and firms’ reactions to interorganisational tension and conflict.