Shows that the welfare state makes a fundamental contribution to economic efficiency and should be an important component of a policy for a successful transition.
This is a story of the soft budget constraint. It seeks an answer to a paradox: the prevalence of the soft budget constraint in spite of the tremendous inefficiencies that it gives rise to, and its persistence in spite of reform of the system of which it is an integral part. The story aims at increasing our understanding of why the phenomenon exists. By studying the case of state in Tanzania before, during and after socialism, an explanation of the owned enterprises emergence, persistence and logic of the soft budget constraint is suggested. This introductory chapter presents an argument showing why this story is worth telling. It discusses the research topic and how the problem it presents is attacked. THE SOFT BUDGET CONSTRAINT The soft budget constraint is today a popular metaphor. Originally it was seen as a characteristic of the socialist system. It refers to the tendency of primarily state-owned enterprises to have their liquidity gaps or losses accommodated by the state, or some other external funding body, and to the resulting expectations of such bail-out. The concept was coined by the Hungarian economist Hmos Kornai. ' He distinguishes between four major forms of external financial assistance that contribute to the soft budget constraint: soft subsidies, soft taxation, soft credit and soft 2 administrative pricing.
Beginning in 1983, the Mexican government implemented one of the most extensive programs of market-oriented reform in the developing world. Downsizing the State examines a key element of this reform program: the privatization of public firms. Drawing upon interviews with government officials, business executives, and labor leaders as well as data from government archives and corporate documents, MacLeod highlights the difficulties of linking market reforms to improved public welfare. Privatization failed to live up to its promise of raising living standards or decentralizing the economy. Indeed, privatization actually increased the concentration of wealth in Mexico while redirecting the economy toward foreign markets. These findings contribute to theoretical debates regarding state autonomy and the embeddedness of economic action. MacLeod calls into question the autonomy of the Mexican state in its privatization program. He shows that the creation of markets where public firms once dominated has involved both the destruction of social relations and the construction of new relations and institutions to regulate the market.
Has globalization forever undermined the state as the mighty guarantor of public welfare and security? In the 1990s, the prevailing and even hopeful view was that it had. The euphoria did not last long. Today the "return of the state" is increasingly being discussed as a desirable reality. This book is the first to bring together a group of prominent scholars from comparative politics, international relations, and sociology to systematically reassess--through a historical lens that moves beyond the standard focus on the West--state-society relations and state power at the dawn of the twenty-first century. The contributors examine the sources and forms of state power in light of a range of welfare and security needs in order to tell us what states can do today. They assess the extent to which international social forces affect states, and the capacity of states to adapt in specific issue areas. Their striking conclusion is that states have continued to be pivotal in diverse areas such as nationalism, national security, multiculturalism, taxation, and industrial relations. Offering rich insights on the changing contours of state power, The Nation-State in Question will be of interest to social scientists, students, and policymakers alike. John Hall's introduction is followed by chapters by Peter Baldwin, John Campbell, Francesco Duina, Grzegorz Ekiert, Jeffrey Herbst, Christopher Hood, Anatoly Khazanov, Brendan O'Leary, T. V. Paul, Bernard Yack, Rudra Sil, and Minxin Pei. The conclusion is by John Ikenberry.
Fifteen years ago, twenty-seven countries in Europe and Central Asia embarked on their economic transition paths. For some, the outcome was a considerable success. Several others are still struggling to shed the inheritance of the past and to correct more recent policy mistakes. Why were post-Communist recessions so long in some countries and growth disappointing? Why was fiscal performance so different? Was democracy a factor, which facilitated reforms or rather slowed them down? This book discusses these questions in the context of new empirical evidence, including a critical examination of the main themes in the economics of transition literature.
Budget report for 1929/31 deals also with the operations of the fiscal year ended June 30, 1928 and the estimates for the fiscal year ending June 30, 1929.
Is campaign finance reform dead or alive? Can Congress really fix the problems that American voters perceive in their electoral system? This book assumes that voters are the end users of campaign finance reform, and it questions whether average citizens really know what they are asking for or what they may get when they demand change. In this book, ten prominent political scientists and commentators challenge the conventional wisdom about the role of money in campaigns and elections. They look at the level of campaign spending in recent times, the judicial perspective on spending as a First Amendment right, the current diversity of donors, the media spin on the subject, and the act of contributing as a form of political participation. The inimitable Norm Ornstein wraps it all up with a model reform proposal that is at once more moderate than McCain-Feingold and yet radical in its own way. Published under the auspices of Berkeley Public Policy Press."
There is no magic formula for balancing fiscal policy and economic performance. As a scholar and policy advisor, Vito Tanzi has made a major contribution to identifying links between public finance and macro and microeconomic consequences. His findings bear relevance in both developing and industrialized economies. The essays in this volume and its companion, Fiscal Policy and Economic Reform, highlight many of these interconnected issues, for instance: * the interaction between budgetary policy and economic aggregates, such as employment, inflation and growth * the implication of economic linkages for designing fiscal policies * expenditure policies and alternative deficit financing strategies * the trade-offs between macro- and microeconomic objectives The list of contributors includes Max Corden, John Makin, Ronald McKinnon and Richard Musgrave.
This book examines failure in the urbanisation of Northwest China as a result of government industrial policies that have impacted on the economic development of the region. By looking at the under-researched provinces of Gansu, Qinghai and Inner Mongolia, which make up a quarter of China's territory, Zheng and Deng challenge the common story of China's miracle growth and reveal the dark side of the country’s pursuit of modernity. Severe weather conditions, chronic drought, permanent lack of oxygen and unforgiving terrain in the Northwest make farming, manufacture and services difficult simply because people tend not to stay. Yet, China’s current political system forces growth to take place even though basic conditions and prerequisites for market-based growth are missing. This volume analyses 'ghost cities' and social tension in the process of ‘forced urbanisation’ in which huge amount of resources are wasted, the local environment is systematically damaged and ordinary people’s basic rights are brutally violated in the name of higher GDP and greater government glory.